98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3400

 

Introduced , by Rep. John D. Cavaletto

 

SYNOPSIS AS INTRODUCED:
 
New Act
35 ILCS 5/224 new
35 ILCS 105/3-10
35 ILCS 105/9  from Ch. 120, par. 439.9
35 ILCS 110/3-10  from Ch. 120, par. 439.33-10
35 ILCS 110/9  from Ch. 120, par. 439.39
35 ILCS 115/3-10  from Ch. 120, par. 439.103-10
35 ILCS 115/9  from Ch. 120, par. 439.109
35 ILCS 120/2-10
35 ILCS 120/3  from Ch. 120, par. 442

    Creates the Employ Illinois Job Renewal Act. Requires the Department of Commerce and Economic Opportunity to develop application procedures to certify certain areas in the State as Job Renewal Zones. Sets forth the qualifications for certification as a Job Renewal Zone. Sets forth tax incentives for businesses located inside Job Renewal Zones. Requires the Department to certify all Job Renewal Zones by July 1, 2014 and provides that all zones expire on June 30, 2025. Requires the Department to report to the General Assembly and Governor no later than January 1, 2024 concerning the program. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3400LRB098 08352 HLH 38457 b

1    AN ACT concerning economic development.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Employ
5Illinois Job Renewal Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Department" means the Department of Commerce and Economic
8Opportunity.
9    "Local government entity" means a county or a municipality.
 
10    Section 10. Qualifications for Job Renewal Zones. A local
11government entity is qualified to become a Job Renewal Zone if:
12        (1) it has no more than 200,000 residents according to
13    the latest data available from the U.S. Census Bureau; and
14        (2) it has experienced unemployment rates over the last
15    5 years that are higher than at least 75% of all Illinois
16    local government entities.
 
17    Section 15. Certification of Job Renewal Zones by the
18Department.
19    (a) The Department must develop an application for Job
20Renewal Zone certification, contact local government entities
21that may qualify as a Job Renewal Zone under Section 10, and

 

 

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1inform those entities of their potential qualification. In
2determining those local government entities to be certified, in
3addition to characteristics mentioned in subsection (b), the
4Department must certify an equal amount of zones in the various
5regions of the State. The Department shall designate Job
6Renewal Zones in a manner that maximizes their effect equally
7in regions of the State. The Department may not designate more
8than 10 Job Renewal Zones in the State.
9    (b) In considering applications for Job Renewal Zone
10certification, the Department must consider all of the
11following factors:
12        (1) The degree to which the applicant local government
13    entity has experienced population decline or equalized
14    assessed property value decline or stagnant growth at
15    greater levels than other local government entities that
16    are eligible for Job Renewal Zone certification.
17        (2) The poverty of residents of the local government
18    entity applicant relative to other local government
19    entities that are eligible for Job Renewal Zone
20    certification.
21        (3) The degree to which school districts within the
22    jurisdiction of the local government entity applying for
23    certification have experienced decline or stagnation in
24    student enrollment having detrimental effects on the
25    schools' State education funding at levels greater than
26    other local government entities that are eligible for

 

 

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1    certification.
2        (4) Whether the applicant local government entity has
3    developed a strategic development plan that will guide the
4    redevelopment of its community or county in a manner that
5    benefits all residents of the applicant local government
6    entity.
7        (5) Any other relevant factors determined by the
8    Department.
 
9    Section 20. Taxes on businesses in Job Renewal Zones.
10    (a) All businesses located in a Job Renewal Zone, in
11addition to any other benefits and incentives that may be
12offered at the discretion of the Department or the local
13government entity creating the Job Renewal Zone as is provided
14under the Enterprise Zone Act, shall qualify, upon
15certification by the Department, for exemptions from the
16following taxes:
17        (1) taxes imposed under subsections (a) and (b) of
18    Section 201 of the Illinois Income Tax Act; and
19        (2) the rate of tax imposed under the Use Tax Act, the
20    Service Use Tax Act, the Service Occupation Tax Act, and
21    the Retailers' Occupation Tax Act shall be reduced to 1.25%
22    as provided in those Acts.
23    (b) Any business located in a Job Renewal Zone from which
24the Department has determined at least 51% of its products or
25services are exported outside of the State shall automatically

 

 

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1qualify for EDGE job creation assistance, as provided under the
2Economic Development for a Growing Economy Tax Credit Act.
 
3    Section 30. Deadline for zone certification; expiration.
4    (a) The Department must set a deadline for its receipt of
5applications for all zone certifications. The Department must
6certify all Job Renewal Zones by July 1, 2014.
7    (b) All Job Renewal Zones expire on June 30, 2025.
 
8    Section 35. Report required; extension of program.
9    (a) By January 1, 2024, the Department must prepare a
10report to the Governor and the General Assembly detailing the
11effects of the Job Renewal program on the local government
12entities. The report must include, without limitation,
13information concerning:
14        (1) employment growth and unemployment decline;
15        (2) population change;
16        (3) changes in poverty rates;
17        (4) changes in per capita income of the residents of
18    the zone;
19        (5) changes in the equalized assessed value of property
20    within the zone;
21        (6) changes in the cost of providing services to zone
22    residents borne by the local government entity where the
23    zone is located;
24        (7) changes in revenues collected by the local

 

 

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1    government entity in which the zone is located; and
2        (8) changes in the cost of housing in the zone.
3    (b) If the General Assembly extends the expiration date of
4this program, the Department shall consider the progress of
5economic development of each zone then designated and
6surrounding areas when deciding whether the current 10 Job
7Renewal Zones will be re-extended.
 
8    Section 50. The Illinois Income Tax Act is amended by
9adding Section 224 as follows:
 
10    (35 ILCS 5/224 new)
11    Sec. 224. Employ Illinois Job Renewal Act. This Act is
12subject to the provisions of the Employ Illinois Job Renewal
13Act.
 
14    Section 55. The Use Tax Act is amended by changing Sections
153-10 and 9 as follows:
 
16    (35 ILCS 105/3-10)
17    Sec. 3-10. Rate of tax. Unless otherwise provided in this
18Section, the tax imposed by this Act is at the rate of 6.25% of
19either the selling price or the fair market value, if any, of
20the tangible personal property. In all cases where property
21functionally used or consumed is the same as the property that
22was purchased at retail, then the tax is imposed on the selling

 

 

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1price of the property. In all cases where property functionally
2used or consumed is a by-product or waste product that has been
3refined, manufactured, or produced from property purchased at
4retail, then the tax is imposed on the lower of the fair market
5value, if any, of the specific property so used in this State
6or on the selling price of the property purchased at retail.
7For purposes of this Section "fair market value" means the
8price at which property would change hands between a willing
9buyer and a willing seller, neither being under any compulsion
10to buy or sell and both having reasonable knowledge of the
11relevant facts. The fair market value shall be established by
12Illinois sales by the taxpayer of the same property as that
13functionally used or consumed, or if there are no such sales by
14the taxpayer, then comparable sales or purchases of property of
15like kind and character in Illinois.
16    Beginning on July 1, 2000 and through December 31, 2000,
17with respect to motor fuel, as defined in Section 1.1 of the
18Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
19the Use Tax Act, the tax is imposed at the rate of 1.25%.
20    Beginning on August 6, 2010 through August 15, 2010, with
21respect to sales tax holiday items as defined in Section 3-6 of
22this Act, the tax is imposed at the rate of 1.25%.
23    With respect to gasohol, the tax imposed by this Act
24applies to (i) 70% of the proceeds of sales made on or after
25January 1, 1990, and before July 1, 2003, (ii) 80% of the
26proceeds of sales made on or after July 1, 2003 and on or

 

 

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1before December 31, 2018, and (iii) 100% of the proceeds of
2sales made thereafter. If, at any time, however, the tax under
3this Act on sales of gasohol is imposed at the rate of 1.25%,
4then the tax imposed by this Act applies to 100% of the
5proceeds of sales of gasohol made during that time.
6    With respect to majority blended ethanol fuel, the tax
7imposed by this Act does not apply to the proceeds of sales
8made on or after July 1, 2003 and on or before December 31,
92018 but applies to 100% of the proceeds of sales made
10thereafter.
11    With respect to biodiesel blends with no less than 1% and
12no more than 10% biodiesel, the tax imposed by this Act applies
13to (i) 80% of the proceeds of sales made on or after July 1,
142003 and on or before December 31, 2018 and (ii) 100% of the
15proceeds of sales made thereafter. If, at any time, however,
16the tax under this Act on sales of biodiesel blends with no
17less than 1% and no more than 10% biodiesel is imposed at the
18rate of 1.25%, then the tax imposed by this Act applies to 100%
19of the proceeds of sales of biodiesel blends with no less than
201% and no more than 10% biodiesel made during that time.
21    With respect to 100% biodiesel and biodiesel blends with
22more than 10% but no more than 99% biodiesel, the tax imposed
23by this Act does not apply to the proceeds of sales made on or
24after July 1, 2003 and on or before December 31, 2018 but
25applies to 100% of the proceeds of sales made thereafter.
26    With respect to food for human consumption that is to be

 

 

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1consumed off the premises where it is sold (other than
2alcoholic beverages, soft drinks, and food that has been
3prepared for immediate consumption) and prescription and
4nonprescription medicines, drugs, medical appliances,
5modifications to a motor vehicle for the purpose of rendering
6it usable by a disabled person, and insulin, urine testing
7materials, syringes, and needles used by diabetics, for human
8use, the tax is imposed at the rate of 1%. For the purposes of
9this Section, until September 1, 2009: the term "soft drinks"
10means any complete, finished, ready-to-use, non-alcoholic
11drink, whether carbonated or not, including but not limited to
12soda water, cola, fruit juice, vegetable juice, carbonated
13water, and all other preparations commonly known as soft drinks
14of whatever kind or description that are contained in any
15closed or sealed bottle, can, carton, or container, regardless
16of size; but "soft drinks" does not include coffee, tea,
17non-carbonated water, infant formula, milk or milk products as
18defined in the Grade A Pasteurized Milk and Milk Products Act,
19or drinks containing 50% or more natural fruit or vegetable
20juice.
21    Notwithstanding any other provisions of this Act,
22beginning September 1, 2009, "soft drinks" means non-alcoholic
23beverages that contain natural or artificial sweeteners. "Soft
24drinks" do not include beverages that contain milk or milk
25products, soy, rice or similar milk substitutes, or greater
26than 50% of vegetable or fruit juice by volume.

 

 

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1    Until August 1, 2009, and notwithstanding any other
2provisions of this Act, "food for human consumption that is to
3be consumed off the premises where it is sold" includes all
4food sold through a vending machine, except soft drinks and
5food products that are dispensed hot from a vending machine,
6regardless of the location of the vending machine. Beginning
7August 1, 2009, and notwithstanding any other provisions of
8this Act, "food for human consumption that is to be consumed
9off the premises where it is sold" includes all food sold
10through a vending machine, except soft drinks, candy, and food
11products that are dispensed hot from a vending machine,
12regardless of the location of the vending machine.
13    Notwithstanding any other provisions of this Act,
14beginning September 1, 2009, "food for human consumption that
15is to be consumed off the premises where it is sold" does not
16include candy. For purposes of this Section, "candy" means a
17preparation of sugar, honey, or other natural or artificial
18sweeteners in combination with chocolate, fruits, nuts or other
19ingredients or flavorings in the form of bars, drops, or
20pieces. "Candy" does not include any preparation that contains
21flour or requires refrigeration.
22    Notwithstanding any other provisions of this Act,
23beginning September 1, 2009, "nonprescription medicines and
24drugs" does not include grooming and hygiene products. For
25purposes of this Section, "grooming and hygiene products"
26includes, but is not limited to, soaps and cleaning solutions,

 

 

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1shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2lotions and screens, unless those products are available by
3prescription only, regardless of whether the products meet the
4definition of "over-the-counter-drugs". For the purposes of
5this paragraph, "over-the-counter-drug" means a drug for human
6use that contains a label that identifies the product as a drug
7as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
8label includes:
9        (A) A "Drug Facts" panel; or
10        (B) A statement of the "active ingredient(s)" with a
11    list of those ingredients contained in the compound,
12    substance or preparation.
13    Beginning on the first day of the first month to occur not
14less than 30 days after the effective date of this amendatory
15Act of the 98th General Assembly, with respect to tangible
16personal property purchased from a business located in a Job
17Renewal Zone created under the Employ Illinois Job Renewal Act,
18the tax is imposed at the rate of 1.25%.
19    If the property that is purchased at retail from a retailer
20is acquired outside Illinois and used outside Illinois before
21being brought to Illinois for use here and is taxable under
22this Act, the "selling price" on which the tax is computed
23shall be reduced by an amount that represents a reasonable
24allowance for depreciation for the period of prior out-of-state
25use.
26(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,

 

 

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1eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10;
297-636, eff. 6-1-12.)
 
3    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
4    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
5and trailers that are required to be registered with an agency
6of this State, each retailer required or authorized to collect
7the tax imposed by this Act shall pay to the Department the
8amount of such tax (except as otherwise provided) at the time
9when he is required to file his return for the period during
10which such tax was collected, less a discount of 2.1% prior to
11January 1, 1990, and 1.75% on and after January 1, 1990, or $5
12per calendar year, whichever is greater, which is allowed to
13reimburse the retailer for expenses incurred in collecting the
14tax, keeping records, preparing and filing returns, remitting
15the tax and supplying data to the Department on request. In the
16case of retailers who report and pay the tax on a transaction
17by transaction basis, as provided in this Section, such
18discount shall be taken with each such tax remittance instead
19of when such retailer files his periodic return. A retailer
20need not remit that part of any tax collected by him to the
21extent that he is required to remit and does remit the tax
22imposed by the Retailers' Occupation Tax Act, with respect to
23the sale of the same property.
24    Where such tangible personal property is sold under a
25conditional sales contract, or under any other form of sale

 

 

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1wherein the payment of the principal sum, or a part thereof, is
2extended beyond the close of the period for which the return is
3filed, the retailer, in collecting the tax (except as to motor
4vehicles, watercraft, aircraft, and trailers that are required
5to be registered with an agency of this State), may collect for
6each tax return period, only the tax applicable to that part of
7the selling price actually received during such tax return
8period.
9    Except as provided in this Section, on or before the
10twentieth day of each calendar month, such retailer shall file
11a return for the preceding calendar month. Such return shall be
12filed on forms prescribed by the Department and shall furnish
13such information as the Department may reasonably require.
14    The Department may require returns to be filed on a
15quarterly basis. If so required, a return for each calendar
16quarter shall be filed on or before the twentieth day of the
17calendar month following the end of such calendar quarter. The
18taxpayer shall also file a return with the Department for each
19of the first two months of each calendar quarter, on or before
20the twentieth day of the following calendar month, stating:
21        1. The name of the seller;
22        2. The address of the principal place of business from
23    which he engages in the business of selling tangible
24    personal property at retail in this State;
25        3. The total amount of taxable receipts received by him
26    during the preceding calendar month from sales of tangible

 

 

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1    personal property by him during such preceding calendar
2    month, including receipts from charge and time sales, but
3    less all deductions allowed by law;
4        4. The amount of credit provided in Section 2d of this
5    Act;
6        5. The amount of tax due;
7        5-5. The signature of the taxpayer; and
8        6. Such other reasonable information as the Department
9    may require.
10    If a taxpayer fails to sign a return within 30 days after
11the proper notice and demand for signature by the Department,
12the return shall be considered valid and any amount shown to be
13due on the return shall be deemed assessed.
14    Beginning October 1, 1993, a taxpayer who has an average
15monthly tax liability of $150,000 or more shall make all
16payments required by rules of the Department by electronic
17funds transfer. Beginning October 1, 1994, a taxpayer who has
18an average monthly tax liability of $100,000 or more shall make
19all payments required by rules of the Department by electronic
20funds transfer. Beginning October 1, 1995, a taxpayer who has
21an average monthly tax liability of $50,000 or more shall make
22all payments required by rules of the Department by electronic
23funds transfer. Beginning October 1, 2000, a taxpayer who has
24an annual tax liability of $200,000 or more shall make all
25payments required by rules of the Department by electronic
26funds transfer. The term "annual tax liability" shall be the

 

 

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

 

 

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1requirements of this Section.
2    Before October 1, 2000, if the taxpayer's average monthly
3tax liability to the Department under this Act, the Retailers'
4Occupation Tax Act, the Service Occupation Tax Act, the Service
5Use Tax Act was $10,000 or more during the preceding 4 complete
6calendar quarters, he shall file a return with the Department
7each month by the 20th day of the month next following the
8month during which such tax liability is incurred and shall
9make payments to the Department on or before the 7th, 15th,
1022nd and last day of the month during which such liability is
11incurred. On and after October 1, 2000, if the taxpayer's
12average monthly tax liability to the Department under this Act,
13the Retailers' Occupation Tax Act, the Service Occupation Tax
14Act, and the Service Use Tax Act was $20,000 or more during the
15preceding 4 complete calendar quarters, he shall file a return
16with the Department each month by the 20th day of the month
17next following the month during which such tax liability is
18incurred and shall make payment to the Department on or before
19the 7th, 15th, 22nd and last day of the month during which such
20liability is incurred. If the month during which such tax
21liability is incurred began prior to January 1, 1985, each
22payment shall be in an amount equal to 1/4 of the taxpayer's
23actual liability for the month or an amount set by the
24Department not to exceed 1/4 of the average monthly liability
25of the taxpayer to the Department for the preceding 4 complete
26calendar quarters (excluding the month of highest liability and

 

 

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

 

 

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

 

 

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1monthly tax liability for the reasonably foreseeable future
2will fall below the $20,000 threshold stated above, then such
3taxpayer may petition the Department for a change in such
4taxpayer's reporting status. The Department shall change such
5taxpayer's reporting status unless it finds that such change is
6seasonal in nature and not likely to be long term. If any such
7quarter monthly payment is not paid at the time or in the
8amount required by this Section, then the taxpayer shall be
9liable for penalties and interest on the difference between the
10minimum amount due and the amount of such quarter monthly
11payment actually and timely paid, except insofar as the
12taxpayer has previously made payments for that month to the
13Department in excess of the minimum payments previously due as
14provided in this Section. The Department shall make reasonable
15rules and regulations to govern the quarter monthly payment
16amount and quarter monthly payment dates for taxpayers who file
17on other than a calendar monthly basis.
18    If any such payment provided for in this Section exceeds
19the taxpayer's liabilities under this Act, the Retailers'
20Occupation Tax Act, the Service Occupation Tax Act and the
21Service Use Tax Act, as shown by an original monthly return,
22the Department shall issue to the taxpayer a credit memorandum
23no later than 30 days after the date of payment, which
24memorandum may be submitted by the taxpayer to the Department
25in payment of tax liability subsequently to be remitted by the
26taxpayer to the Department or be assigned by the taxpayer to a

 

 

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1similar taxpayer under this Act, the Retailers' Occupation Tax
2Act, the Service Occupation Tax Act or the Service Use Tax Act,
3in accordance with reasonable rules and regulations to be
4prescribed by the Department, except that if such excess
5payment is shown on an original monthly return and is made
6after December 31, 1986, no credit memorandum shall be issued,
7unless requested by the taxpayer. If no such request is made,
8the taxpayer may credit such excess payment against tax
9liability subsequently to be remitted by the taxpayer to the
10Department under this Act, the Retailers' Occupation Tax Act,
11the Service Occupation Tax Act or the Service Use Tax Act, in
12accordance with reasonable rules and regulations prescribed by
13the Department. If the Department subsequently determines that
14all or any part of the credit taken was not actually due to the
15taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
16be reduced by 2.1% or 1.75% of the difference between the
17credit taken and that actually due, and the taxpayer shall be
18liable for penalties and interest on such difference.
19    If the retailer is otherwise required to file a monthly
20return and if the retailer's average monthly tax liability to
21the Department does not exceed $200, the Department may
22authorize his returns to be filed on a quarter annual basis,
23with the return for January, February, and March of a given
24year being due by April 20 of such year; with the return for
25April, May and June of a given year being due by July 20 of such
26year; with the return for July, August and September of a given

 

 

HB3400- 20 -LRB098 08352 HLH 38457 b

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

 

 

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1transaction, (i) a retailer of aircraft, watercraft, motor
2vehicles or trailers transfers more than one aircraft,
3watercraft, motor vehicle or trailer to another aircraft,
4watercraft, motor vehicle or trailer retailer for the purpose
5of resale or (ii) a retailer of aircraft, watercraft, motor
6vehicles, or trailers transfers more than one aircraft,
7watercraft, motor vehicle, or trailer to a purchaser for use as
8a qualifying rolling stock as provided in Section 3-55 of this
9Act, then that seller may report the transfer of all the
10aircraft, watercraft, motor vehicles or trailers involved in
11that transaction to the Department on the same uniform
12invoice-transaction reporting return form. For purposes of
13this Section, "watercraft" means a Class 2, Class 3, or Class 4
14watercraft as defined in Section 3-2 of the Boat Registration
15and Safety Act, a personal watercraft, or any boat equipped
16with an inboard motor.
17    The transaction reporting return in the case of motor
18vehicles or trailers that are required to be registered with an
19agency of this State, shall be the same document as the Uniform
20Invoice referred to in Section 5-402 of the Illinois Vehicle
21Code and must show the name and address of the seller; the name
22and address of the purchaser; the amount of the selling price
23including the amount allowed by the retailer for traded-in
24property, if any; the amount allowed by the retailer for the
25traded-in tangible personal property, if any, to the extent to
26which Section 2 of this Act allows an exemption for the value

 

 

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

 

 

HB3400- 23 -LRB098 08352 HLH 38457 b

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

 

 

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

 

 

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1    Where a retailer collects the tax with respect to the
2selling price of tangible personal property which he sells and
3the purchaser thereafter returns such tangible personal
4property and the retailer refunds the selling price thereof to
5the purchaser, such retailer shall also refund, to the
6purchaser, the tax so collected from the purchaser. When filing
7his return for the period in which he refunds such tax to the
8purchaser, the retailer may deduct the amount of the tax so
9refunded by him to the purchaser from any other use tax which
10such retailer may be required to pay or remit to the
11Department, as shown by such return, if the amount of the tax
12to be deducted was previously remitted to the Department by
13such retailer. If the retailer has not previously remitted the
14amount of such tax to the Department, he is entitled to no
15deduction under this Act upon refunding such tax to the
16purchaser.
17    Any retailer filing a return under this Section shall also
18include (for the purpose of paying tax thereon) the total tax
19covered by such return upon the selling price of tangible
20personal property purchased by him at retail from a retailer,
21but as to which the tax imposed by this Act was not collected
22from the retailer filing such return, and such retailer shall
23remit the amount of such tax to the Department when filing such
24return.
25    If experience indicates such action to be practicable, the
26Department may prescribe and furnish a combination or joint

 

 

HB3400- 26 -LRB098 08352 HLH 38457 b

1return which will enable retailers, who are required to file
2returns hereunder and also under the Retailers' Occupation Tax
3Act, to furnish all the return information required by both
4Acts on the one form.
5    Where the retailer has more than one business registered
6with the Department under separate registration under this Act,
7such retailer may not file each return that is due as a single
8return covering all such registered businesses, but shall file
9separate returns for each such registered business.
10    Beginning January 1, 1990, each month the Department shall
11pay into the State and Local Sales Tax Reform Fund, a special
12fund in the State Treasury which is hereby created, the net
13revenue realized for the preceding month from the 1% tax on
14sales of food for human consumption which is to be consumed off
15the premises where it is sold (other than alcoholic beverages,
16soft drinks and food which has been prepared for immediate
17consumption) and prescription and nonprescription medicines,
18drugs, medical appliances and insulin, urine testing
19materials, syringes and needles used by diabetics.
20    
21    Beginning January 1, 1990, each month the Department shall
22pay into the County and Mass Transit District Fund 4% of the
23net revenue realized for the preceding month from the 6.25%
24general rate on the selling price of tangible personal property
25which is purchased outside Illinois at retail from a retailer
26and which is titled or registered by an agency of this State's

 

 

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1government.
2    Beginning January 1, 1990, each month the Department shall
3pay into the State and Local Sales Tax Reform Fund, a special
4fund in the State Treasury, 20% of the net revenue realized for
5the preceding month from the 6.25% general rate on the selling
6price of tangible personal property, other than tangible
7personal property which is purchased outside Illinois at retail
8from a retailer and which is titled or registered by an agency
9of this State's government.
10    Beginning August 1, 2000, each month the Department shall
11pay into the State and Local Sales Tax Reform Fund 100% of the
12net revenue realized for the preceding month from the 1.25%
13rate on the selling price of motor fuel and gasohol. Beginning
14September 1, 2010, each month the Department shall pay into the
15State and Local Sales Tax Reform Fund 100% of the net revenue
16realized for the preceding month from the 1.25% rate on the
17selling price of sales tax holiday items.
18    Beginning on the first day of the first month to occur not
19less than 30 days after the effective date of this amendatory
20Act of the 98th General Assembly, each month the Department
21shall pay into the State and Local Sales Tax Reform Fund 100%
22of the net revenue realized for the preceding month from the
231.25% rate on the selling price of tangible personal property
24purchased from a business located in a Job Renewal Zone created
25under the Employ Illinois Job Renewal Act.
26    Beginning January 1, 1990, each month the Department shall

 

 

HB3400- 28 -LRB098 08352 HLH 38457 b

1pay into the Local Government Tax Fund 16% of the net revenue
2realized for the preceding month from the 6.25% general rate on
3the selling price of tangible personal property which is
4purchased outside Illinois at retail from a retailer and which
5is titled or registered by an agency of this State's
6government.
7    Beginning October 1, 2009, each month the Department shall
8pay into the Capital Projects Fund an amount that is equal to
9an amount estimated by the Department to represent 80% of the
10net revenue realized for the preceding month from the sale of
11candy, grooming and hygiene products, and soft drinks that had
12been taxed at a rate of 1% prior to September 1, 2009 but that
13is now taxed at 6.25%.
14    Beginning July 1, 2011, each month the Department shall pay
15into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
16realized for the preceding month from the 6.25% general rate on
17the selling price of sorbents used in Illinois in the process
18of sorbent injection as used to comply with the Environmental
19Protection Act or the federal Clean Air Act, but the total
20payment into the Clean Air Act (CAA) Permit Fund under this Act
21and the Retailers' Occupation Tax Act shall not exceed
22$2,000,000 in any fiscal year.
23    Of the remainder of the moneys received by the Department
24pursuant to this Act, (a) 1.75% thereof shall be paid into the
25Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
26and after July 1, 1989, 3.8% thereof shall be paid into the

 

 

HB3400- 29 -LRB098 08352 HLH 38457 b

1Build Illinois Fund; provided, however, that if in any fiscal
2year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
3may be, of the moneys received by the Department and required
4to be paid into the Build Illinois Fund pursuant to Section 3
5of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
6Act, Section 9 of the Service Use Tax Act, and Section 9 of the
7Service Occupation Tax Act, such Acts being hereinafter called
8the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
9may be, of moneys being hereinafter called the "Tax Act
10Amount", and (2) the amount transferred to the Build Illinois
11Fund from the State and Local Sales Tax Reform Fund shall be
12less than the Annual Specified Amount (as defined in Section 3
13of the Retailers' Occupation Tax Act), an amount equal to the
14difference shall be immediately paid into the Build Illinois
15Fund from other moneys received by the Department pursuant to
16the Tax Acts; and further provided, that if on the last
17business day of any month the sum of (1) the Tax Act Amount
18required to be deposited into the Build Illinois Bond Account
19in the Build Illinois Fund during such month and (2) the amount
20transferred during such month to the Build Illinois Fund from
21the State and Local Sales Tax Reform Fund shall have been less
22than 1/12 of the Annual Specified Amount, an amount equal to
23the difference shall be immediately paid into the Build
24Illinois Fund from other moneys received by the Department
25pursuant to the Tax Acts; and, further provided, that in no
26event shall the payments required under the preceding proviso

 

 

HB3400- 30 -LRB098 08352 HLH 38457 b

1result in aggregate payments into the Build Illinois Fund
2pursuant to this clause (b) for any fiscal year in excess of
3the greater of (i) the Tax Act Amount or (ii) the Annual
4Specified Amount for such fiscal year; and, further provided,
5that the amounts payable into the Build Illinois Fund under
6this clause (b) shall be payable only until such time as the
7aggregate amount on deposit under each trust indenture securing
8Bonds issued and outstanding pursuant to the Build Illinois
9Bond Act is sufficient, taking into account any future
10investment income, to fully provide, in accordance with such
11indenture, for the defeasance of or the payment of the
12principal of, premium, if any, and interest on the Bonds
13secured by such indenture and on any Bonds expected to be
14issued thereafter and all fees and costs payable with respect
15thereto, all as certified by the Director of the Bureau of the
16Budget (now Governor's Office of Management and Budget). If on
17the last business day of any month in which Bonds are
18outstanding pursuant to the Build Illinois Bond Act, the
19aggregate of the moneys deposited in the Build Illinois Bond
20Account in the Build Illinois Fund in such month shall be less
21than the amount required to be transferred in such month from
22the Build Illinois Bond Account to the Build Illinois Bond
23Retirement and Interest Fund pursuant to Section 13 of the
24Build Illinois Bond Act, an amount equal to such deficiency
25shall be immediately paid from other moneys received by the
26Department pursuant to the Tax Acts to the Build Illinois Fund;

 

 

HB3400- 31 -LRB098 08352 HLH 38457 b

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

 

 

HB3400- 32 -LRB098 08352 HLH 38457 b

11997 64,000,000
21998 68,000,000
31999 71,000,000
42000 75,000,000
52001 80,000,000
62002 93,000,000
72003 99,000,000
82004103,000,000
92005108,000,000
102006113,000,000
112007119,000,000
122008126,000,000
132009132,000,000
142010139,000,000
152011146,000,000
162012153,000,000
172013161,000,000
182014170,000,000
192015179,000,000
202016189,000,000
212017199,000,000
222018210,000,000
232019221,000,000
242020233,000,000
252021246,000,000
262022260,000,000

 

 

HB3400- 33 -LRB098 08352 HLH 38457 b

12023275,000,000
22024 275,000,000
32025 275,000,000
42026 279,000,000
52027 292,000,000
62028 307,000,000
72029 322,000,000
82030 338,000,000
92031 350,000,000
102032 350,000,000
11and
12each fiscal year
13thereafter that bonds
14are outstanding under
15Section 13.2 of the
16Metropolitan Pier and
17Exposition Authority Act,
18but not after fiscal year 2060.
19    Beginning July 20, 1993 and in each month of each fiscal
20year thereafter, one-eighth of the amount requested in the
21certificate of the Chairman of the Metropolitan Pier and
22Exposition Authority for that fiscal year, less the amount
23deposited into the McCormick Place Expansion Project Fund by
24the State Treasurer in the respective month under subsection
25(g) of Section 13 of the Metropolitan Pier and Exposition
26Authority Act, plus cumulative deficiencies in the deposits

 

 

HB3400- 34 -LRB098 08352 HLH 38457 b

1required under this Section for previous months and years,
2shall be deposited into the McCormick Place Expansion Project
3Fund, until the full amount requested for the fiscal year, but
4not in excess of the amount specified above as "Total Deposit",
5has been deposited.
6    Subject to payment of amounts into the Build Illinois Fund
7and the McCormick Place Expansion Project Fund pursuant to the
8preceding paragraphs or in any amendments thereto hereafter
9enacted, beginning July 1, 1993, the Department shall each
10month pay into the Illinois Tax Increment Fund 0.27% of 80% of
11the net revenue realized for the preceding month from the 6.25%
12general rate on the selling price of tangible personal
13property.
14    Subject to payment of amounts into the Build Illinois Fund
15and the McCormick Place Expansion Project Fund pursuant to the
16preceding paragraphs or in any amendments thereto hereafter
17enacted, beginning with the receipt of the first report of
18taxes paid by an eligible business and continuing for a 25-year
19period, the Department shall each month pay into the Energy
20Infrastructure Fund 80% of the net revenue realized from the
216.25% general rate on the selling price of Illinois-mined coal
22that was sold to an eligible business. For purposes of this
23paragraph, the term "eligible business" means a new electric
24generating facility certified pursuant to Section 605-332 of
25the Department of Commerce and Economic Opportunity Law of the
26Civil Administrative Code of Illinois.

 

 

HB3400- 35 -LRB098 08352 HLH 38457 b

1    Of the remainder of the moneys received by the Department
2pursuant to this Act, 75% thereof shall be paid into the State
3Treasury and 25% shall be reserved in a special account and
4used only for the transfer to the Common School Fund as part of
5the monthly transfer from the General Revenue Fund in
6accordance with Section 8a of the State Finance Act.
7    As soon as possible after the first day of each month, upon
8certification of the Department of Revenue, the Comptroller
9shall order transferred and the Treasurer shall transfer from
10the General Revenue Fund to the Motor Fuel Tax Fund an amount
11equal to 1.7% of 80% of the net revenue realized under this Act
12for the second preceding month. Beginning April 1, 2000, this
13transfer is no longer required and shall not be made.
14    Net revenue realized for a month shall be the revenue
15collected by the State pursuant to this Act, less the amount
16paid out during that month as refunds to taxpayers for
17overpayment of liability.
18    For greater simplicity of administration, manufacturers,
19importers and wholesalers whose products are sold at retail in
20Illinois by numerous retailers, and who wish to do so, may
21assume the responsibility for accounting and paying to the
22Department all tax accruing under this Act with respect to such
23sales, if the retailers who are affected do not make written
24objection to the Department to this arrangement.
25(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
26eff. 5-27-10; 96-1012, eff. 7-7-10; 97-95, eff. 7-12-11;

 

 

HB3400- 36 -LRB098 08352 HLH 38457 b

197-333, eff. 8-12-11.)
 
2    Section 60. The Service Use Tax Act is amended by changing
3Sections 3-10 and 9 as follows:
 
4    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
5    Sec. 3-10. Rate of tax. Unless otherwise provided in this
6Section, the tax imposed by this Act is at the rate of 6.25% of
7the selling price of tangible personal property transferred as
8an incident to the sale of service, but, for the purpose of
9computing this tax, in no event shall the selling price be less
10than the cost price of the property to the serviceman.
11    Beginning on July 1, 2000 and through December 31, 2000,
12with respect to motor fuel, as defined in Section 1.1 of the
13Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
14the Use Tax Act, the tax is imposed at the rate of 1.25%.
15    With respect to gasohol, as defined in the Use Tax Act, the
16tax imposed by this Act applies to (i) 70% of the selling price
17of property transferred as an incident to the sale of service
18on or after January 1, 1990, and before July 1, 2003, (ii) 80%
19of the selling price of property transferred as an incident to
20the sale of service on or after July 1, 2003 and on or before
21December 31, 2018, and (iii) 100% of the selling price
22thereafter. If, at any time, however, the tax under this Act on
23sales of gasohol, as defined in the Use Tax Act, is imposed at
24the rate of 1.25%, then the tax imposed by this Act applies to

 

 

HB3400- 37 -LRB098 08352 HLH 38457 b

1100% of the proceeds of sales of gasohol made during that time.
2    With respect to majority blended ethanol fuel, as defined
3in the Use Tax Act, the tax imposed by this Act does not apply
4to the selling price of property transferred as an incident to
5the sale of service on or after July 1, 2003 and on or before
6December 31, 2018 but applies to 100% of the selling price
7thereafter.
8    With respect to biodiesel blends, as defined in the Use Tax
9Act, with no less than 1% and no more than 10% biodiesel, the
10tax imposed by this Act applies to (i) 80% of the selling price
11of property transferred as an incident to the sale of service
12on or after July 1, 2003 and on or before December 31, 2018 and
13(ii) 100% of the proceeds of the selling price thereafter. If,
14at any time, however, the tax under this Act on sales of
15biodiesel blends, as defined in the Use Tax Act, with no less
16than 1% and no more than 10% biodiesel is imposed at the rate
17of 1.25%, then the tax imposed by this Act applies to 100% of
18the proceeds of sales of biodiesel blends with no less than 1%
19and no more than 10% biodiesel made during that time.
20    With respect to 100% biodiesel, as defined in the Use Tax
21Act, and biodiesel blends, as defined in the Use Tax Act, with
22more than 10% but no more than 99% biodiesel, the tax imposed
23by this Act does not apply to the proceeds of the selling price
24of property transferred as an incident to the sale of service
25on or after July 1, 2003 and on or before December 31, 2018 but
26applies to 100% of the selling price thereafter.

 

 

HB3400- 38 -LRB098 08352 HLH 38457 b

1    At the election of any registered serviceman made for each
2fiscal year, sales of service in which the aggregate annual
3cost price of tangible personal property transferred as an
4incident to the sales of service is less than 35%, or 75% in
5the case of servicemen transferring prescription drugs or
6servicemen engaged in graphic arts production, of the aggregate
7annual total gross receipts from all sales of service, the tax
8imposed by this Act shall be based on the serviceman's cost
9price of the tangible personal property transferred as an
10incident to the sale of those services.
11    The tax shall be imposed at the rate of 1% on food prepared
12for immediate consumption and transferred incident to a sale of
13service subject to this Act or the Service Occupation Tax Act
14by an entity licensed under the Hospital Licensing Act, the
15Nursing Home Care Act, the ID/DD Community Care Act, the
16Specialized Mental Health Rehabilitation Act, or the Child Care
17Act of 1969. The tax shall also be imposed at the rate of 1% on
18food for human consumption that is to be consumed off the
19premises where it is sold (other than alcoholic beverages, soft
20drinks, and food that has been prepared for immediate
21consumption and is not otherwise included in this paragraph)
22and prescription and nonprescription medicines, drugs, medical
23appliances, modifications to a motor vehicle for the purpose of
24rendering it usable by a disabled person, and insulin, urine
25testing materials, syringes, and needles used by diabetics, for
26human use. For the purposes of this Section, until September 1,

 

 

HB3400- 39 -LRB098 08352 HLH 38457 b

12009: the term "soft drinks" means any complete, finished,
2ready-to-use, non-alcoholic drink, whether carbonated or not,
3including but not limited to soda water, cola, fruit juice,
4vegetable juice, carbonated water, and all other preparations
5commonly known as soft drinks of whatever kind or description
6that are contained in any closed or sealed bottle, can, carton,
7or container, regardless of size; but "soft drinks" does not
8include coffee, tea, non-carbonated water, infant formula,
9milk or milk products as defined in the Grade A Pasteurized
10Milk and Milk Products Act, or drinks containing 50% or more
11natural fruit or vegetable juice.
12    Notwithstanding any other provisions of this Act,
13beginning September 1, 2009, "soft drinks" means non-alcoholic
14beverages that contain natural or artificial sweeteners. "Soft
15drinks" do not include beverages that contain milk or milk
16products, soy, rice or similar milk substitutes, or greater
17than 50% of vegetable or fruit juice by volume.
18    Until August 1, 2009, and notwithstanding any other
19provisions of this Act, "food for human consumption that is to
20be consumed off the premises where it is sold" includes all
21food sold through a vending machine, except soft drinks and
22food products that are dispensed hot from a vending machine,
23regardless of the location of the vending machine. Beginning
24August 1, 2009, and notwithstanding any other provisions of
25this Act, "food for human consumption that is to be consumed
26off the premises where it is sold" includes all food sold

 

 

HB3400- 40 -LRB098 08352 HLH 38457 b

1through a vending machine, except soft drinks, candy, and food
2products that are dispensed hot from a vending machine,
3regardless of the location of the vending machine.
4    Notwithstanding any other provisions of this Act,
5beginning September 1, 2009, "food for human consumption that
6is to be consumed off the premises where it is sold" does not
7include candy. For purposes of this Section, "candy" means a
8preparation of sugar, honey, or other natural or artificial
9sweeteners in combination with chocolate, fruits, nuts or other
10ingredients or flavorings in the form of bars, drops, or
11pieces. "Candy" does not include any preparation that contains
12flour or requires refrigeration.
13    Notwithstanding any other provisions of this Act,
14beginning September 1, 2009, "nonprescription medicines and
15drugs" does not include grooming and hygiene products. For
16purposes of this Section, "grooming and hygiene products"
17includes, but is not limited to, soaps and cleaning solutions,
18shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
19lotions and screens, unless those products are available by
20prescription only, regardless of whether the products meet the
21definition of "over-the-counter-drugs". For the purposes of
22this paragraph, "over-the-counter-drug" means a drug for human
23use that contains a label that identifies the product as a drug
24as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
25label includes:
26        (A) A "Drug Facts" panel; or

 

 

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1        (B) A statement of the "active ingredient(s)" with a
2    list of those ingredients contained in the compound,
3    substance or preparation.
4    Beginning on the first day of the first month to occur not
5less than 30 days after the effective date of this amendatory
6Act of the 98th General Assembly, with respect to tangible
7personal property purchased from a business located in a Job
8Renewal Zone created under the Employ Illinois Job Renewal Act,
9the tax is imposed at the rate of 1.25%.
10    If the property that is acquired from a serviceman is
11acquired outside Illinois and used outside Illinois before
12being brought to Illinois for use here and is taxable under
13this Act, the "selling price" on which the tax is computed
14shall be reduced by an amount that represents a reasonable
15allowance for depreciation for the period of prior out-of-state
16use.
17(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
18eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,
19eff. 6-28-11; 97-227, eff. 1-1-12; 97-636, eff. 6-1-12.)
 
20    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
21    Sec. 9. Each serviceman required or authorized to collect
22the tax herein imposed shall pay to the Department the amount
23of such tax (except as otherwise provided) at the time when he
24is required to file his return for the period during which such
25tax was collected, less a discount of 2.1% prior to January 1,

 

 

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11990 and 1.75% on and after January 1, 1990, or $5 per calendar
2year, whichever is greater, which is allowed to reimburse the
3serviceman for expenses incurred in collecting the tax, keeping
4records, preparing and filing returns, remitting the tax and
5supplying data to the Department on request. A serviceman need
6not remit that part of any tax collected by him to the extent
7that he is required to pay and does pay the tax imposed by the
8Service Occupation Tax Act with respect to his sale of service
9involving the incidental transfer by him of the same property.
10    Except as provided hereinafter in this Section, on or
11before the twentieth day of each calendar month, such
12serviceman shall file a return for the preceding calendar month
13in accordance with reasonable Rules and Regulations to be
14promulgated by the Department. Such return shall be filed on a
15form prescribed by the Department and shall contain such
16information as the Department may reasonably require.
17    The Department may require returns to be filed on a
18quarterly basis. If so required, a return for each calendar
19quarter shall be filed on or before the twentieth day of the
20calendar month following the end of such calendar quarter. The
21taxpayer shall also file a return with the Department for each
22of the first two months of each calendar quarter, on or before
23the twentieth day of the following calendar month, stating:
24        1. The name of the seller;
25        2. The address of the principal place of business from
26    which he engages in business as a serviceman in this State;

 

 

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1        3. The total amount of taxable receipts received by him
2    during the preceding calendar month, including receipts
3    from charge and time sales, but less all deductions allowed
4    by law;
5        4. The amount of credit provided in Section 2d of this
6    Act;
7        5. The amount of tax due;
8        5-5. The signature of the taxpayer; and
9        6. Such other reasonable information as the Department
10    may require.
11    If a taxpayer fails to sign a return within 30 days after
12the proper notice and demand for signature by the Department,
13the return shall be considered valid and any amount shown to be
14due on the return shall be deemed assessed.
15    Beginning October 1, 1993, a taxpayer who has an average
16monthly tax liability of $150,000 or more shall make all
17payments required by rules of the Department by electronic
18funds transfer. Beginning October 1, 1994, a taxpayer who has
19an average monthly tax liability of $100,000 or more shall make
20all payments required by rules of the Department by electronic
21funds transfer. Beginning October 1, 1995, a taxpayer who has
22an average monthly tax liability of $50,000 or more shall make
23all payments required by rules of the Department by electronic
24funds transfer. Beginning October 1, 2000, a taxpayer who has
25an annual tax liability of $200,000 or more shall make all
26payments required by rules of the Department by electronic

 

 

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

 

 

HB3400- 45 -LRB098 08352 HLH 38457 b

1effectuate a program of electronic funds transfer and the
2requirements of this Section.
3    If the serviceman is otherwise required to file a monthly
4return and if the serviceman's average monthly tax liability to
5the Department does not exceed $200, the Department may
6authorize his returns to be filed on a quarter annual basis,
7with the return for January, February and March of a given year
8being due by April 20 of such year; with the return for April,
9May and June of a given year being due by July 20 of such year;
10with the return for July, August and September of a given year
11being due by October 20 of such year, and with the return for
12October, November and December of a given year being due by
13January 20 of the following year.
14    If the serviceman is otherwise required to file a monthly
15or quarterly return and if the serviceman's average monthly tax
16liability to the Department does not exceed $50, the Department
17may authorize his returns to be filed on an annual basis, with
18the return for a given year being due by January 20 of the
19following year.
20    Such quarter annual and annual returns, as to form and
21substance, shall be subject to the same requirements as monthly
22returns.
23    Notwithstanding any other provision in this Act concerning
24the time within which a serviceman may file his return, in the
25case of any serviceman who ceases to engage in a kind of
26business which makes him responsible for filing returns under

 

 

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1this Act, such serviceman shall file a final return under this
2Act with the Department not more than 1 month after
3discontinuing such business.
4    Where a serviceman collects the tax with respect to the
5selling price of property which he sells and the purchaser
6thereafter returns such property and the serviceman refunds the
7selling price thereof to the purchaser, such serviceman shall
8also refund, to the purchaser, the tax so collected from the
9purchaser. When filing his return for the period in which he
10refunds such tax to the purchaser, the serviceman may deduct
11the amount of the tax so refunded by him to the purchaser from
12any other Service Use Tax, Service Occupation Tax, retailers'
13occupation tax or use tax which such serviceman may be required
14to pay or remit to the Department, as shown by such return,
15provided that the amount of the tax to be deducted shall
16previously have been remitted to the Department by such
17serviceman. If the serviceman shall not previously have
18remitted the amount of such tax to the Department, he shall be
19entitled to no deduction hereunder upon refunding such tax to
20the purchaser.
21    Any serviceman filing a return hereunder shall also include
22the total tax upon the selling price of tangible personal
23property purchased for use by him as an incident to a sale of
24service, and such serviceman shall remit the amount of such tax
25to the Department when filing such return.
26    If experience indicates such action to be practicable, the

 

 

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1Department may prescribe and furnish a combination or joint
2return which will enable servicemen, who are required to file
3returns hereunder and also under the Service Occupation Tax
4Act, to furnish all the return information required by both
5Acts on the one form.
6    Where the serviceman has more than one business registered
7with the Department under separate registration hereunder,
8such serviceman shall not file each return that is due as a
9single return covering all such registered businesses, but
10shall file separate returns for each such registered business.
11    Beginning January 1, 1990, each month the Department shall
12pay into the State and Local Tax Reform Fund, a special fund in
13the State Treasury, the net revenue realized for the preceding
14month from the 1% tax on sales of food for human consumption
15which is to be consumed off the premises where it is sold
16(other than alcoholic beverages, soft drinks and food which has
17been prepared for immediate consumption) and prescription and
18nonprescription medicines, drugs, medical appliances and
19insulin, urine testing materials, syringes and needles used by
20diabetics.
21    Beginning January 1, 1990, each month the Department shall
22pay into the State and Local Sales Tax Reform Fund 20% of the
23net revenue realized for the preceding month from the 6.25%
24general rate on transfers of tangible personal property, other
25than tangible personal property which is purchased outside
26Illinois at retail from a retailer and which is titled or

 

 

HB3400- 48 -LRB098 08352 HLH 38457 b

1registered by an agency of this State's government.
2    Beginning August 1, 2000, each month the Department shall
3pay into the State and Local Sales Tax Reform Fund 100% of the
4net revenue realized for the preceding month from the 1.25%
5rate on the selling price of motor fuel and gasohol.
6    Beginning on the first day of the first month to occur not
7less than 30 days after the effective date of this amendatory
8Act of the 98th General Assembly, each month the Department
9shall pay into the State and Local Sales Tax Reform Fund 100%
10of the net revenue realized for the preceding month from the
111.25% rate on the selling price of tangible personal property
12purchased from a business located in a Job Renewal Zone created
13under the Employ Illinois Job Renewal Act.
14    Beginning October 1, 2009, each month the Department shall
15pay into the Capital Projects Fund an amount that is equal to
16an amount estimated by the Department to represent 80% of the
17net revenue realized for the preceding month from the sale of
18candy, grooming and hygiene products, and soft drinks that had
19been taxed at a rate of 1% prior to September 1, 2009 but that
20is now taxed at 6.25%.
21    Of the remainder of the moneys received by the Department
22pursuant to this Act, (a) 1.75% thereof shall be paid into the
23Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
24and after July 1, 1989, 3.8% thereof shall be paid into the
25Build Illinois Fund; provided, however, that if in any fiscal
26year the sum of (1) the aggregate of 2.2% or 3.8%, as the case

 

 

HB3400- 49 -LRB098 08352 HLH 38457 b

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

 

 

HB3400- 50 -LRB098 08352 HLH 38457 b

1the greater of (i) the Tax Act Amount or (ii) the Annual
2Specified Amount for such fiscal year; and, further provided,
3that the amounts payable into the Build Illinois Fund under
4this clause (b) shall be payable only until such time as the
5aggregate amount on deposit under each trust indenture securing
6Bonds issued and outstanding pursuant to the Build Illinois
7Bond Act is sufficient, taking into account any future
8investment income, to fully provide, in accordance with such
9indenture, for the defeasance of or the payment of the
10principal of, premium, if any, and interest on the Bonds
11secured by such indenture and on any Bonds expected to be
12issued thereafter and all fees and costs payable with respect
13thereto, all as certified by the Director of the Bureau of the
14Budget (now Governor's Office of Management and Budget). If on
15the last business day of any month in which Bonds are
16outstanding pursuant to the Build Illinois Bond Act, the
17aggregate of the moneys deposited in the Build Illinois Bond
18Account in the Build Illinois Fund in such month shall be less
19than the amount required to be transferred in such month from
20the Build Illinois Bond Account to the Build Illinois Bond
21Retirement and Interest Fund pursuant to Section 13 of the
22Build Illinois Bond Act, an amount equal to such deficiency
23shall be immediately paid from other moneys received by the
24Department pursuant to the Tax Acts to the Build Illinois Fund;
25provided, however, that any amounts paid to the Build Illinois
26Fund in any fiscal year pursuant to this sentence shall be

 

 

HB3400- 51 -LRB098 08352 HLH 38457 b

1deemed to constitute payments pursuant to clause (b) of the
2preceding sentence and shall reduce the amount otherwise
3payable for such fiscal year pursuant to clause (b) of the
4preceding sentence. The moneys received by the Department
5pursuant to this Act and required to be deposited into the
6Build Illinois Fund are subject to the pledge, claim and charge
7set forth in Section 12 of the Build Illinois Bond Act.
8    Subject to payment of amounts into the Build Illinois Fund
9as provided in the preceding paragraph or in any amendment
10thereto hereafter enacted, the following specified monthly
11installment of the amount requested in the certificate of the
12Chairman of the Metropolitan Pier and Exposition Authority
13provided under Section 8.25f of the State Finance Act, but not
14in excess of the sums designated as "Total Deposit", shall be
15deposited in the aggregate from collections under Section 9 of
16the Use Tax Act, Section 9 of the Service Use Tax Act, Section
179 of the Service Occupation Tax Act, and Section 3 of the
18Retailers' Occupation Tax Act into the McCormick Place
19Expansion Project Fund in the specified fiscal years.
20Fiscal YearTotal Deposit
211993         $0
221994 53,000,000
231995 58,000,000
241996 61,000,000
251997 64,000,000

 

 

HB3400- 52 -LRB098 08352 HLH 38457 b

11998 68,000,000
21999 71,000,000
32000 75,000,000
42001 80,000,000
52002 93,000,000
62003 99,000,000
72004103,000,000
82005108,000,000
92006113,000,000
102007119,000,000
112008126,000,000
122009132,000,000
132010139,000,000
142011146,000,000
152012153,000,000
162013161,000,000
172014170,000,000
182015179,000,000
192016189,000,000
202017199,000,000
212018210,000,000
222019221,000,000
232020233,000,000
242021246,000,000
252022260,000,000
262023275,000,000

 

 

HB3400- 53 -LRB098 08352 HLH 38457 b

12024 275,000,000
22025 275,000,000
32026 279,000,000
42027 292,000,000
52028 307,000,000
62029 322,000,000
72030 338,000,000
82031 350,000,000
92032 350,000,000
10and
11each fiscal year
12thereafter that bonds
13are outstanding under
14Section 13.2 of the
15Metropolitan Pier and
16Exposition Authority Act,
17but not after fiscal year 2060.
18    Beginning July 20, 1993 and in each month of each fiscal
19year thereafter, one-eighth of the amount requested in the
20certificate of the Chairman of the Metropolitan Pier and
21Exposition Authority for that fiscal year, less the amount
22deposited into the McCormick Place Expansion Project Fund by
23the State Treasurer in the respective month under subsection
24(g) of Section 13 of the Metropolitan Pier and Exposition
25Authority Act, plus cumulative deficiencies in the deposits
26required under this Section for previous months and years,

 

 

HB3400- 54 -LRB098 08352 HLH 38457 b

1shall be deposited into the McCormick Place Expansion Project
2Fund, until the full amount requested for the fiscal year, but
3not in excess of the amount specified above as "Total Deposit",
4has been deposited.
5    Subject to payment of amounts into the Build Illinois Fund
6and the McCormick Place Expansion Project Fund pursuant to the
7preceding paragraphs or in any amendments thereto hereafter
8enacted, beginning July 1, 1993, the Department shall each
9month pay into the Illinois Tax Increment Fund 0.27% of 80% of
10the net revenue realized for the preceding month from the 6.25%
11general rate on the selling price of tangible personal
12property.
13    Subject to payment of amounts into the Build Illinois Fund
14and the McCormick Place Expansion Project Fund pursuant to the
15preceding paragraphs or in any amendments thereto hereafter
16enacted, beginning with the receipt of the first report of
17taxes paid by an eligible business and continuing for a 25-year
18period, the Department shall each month pay into the Energy
19Infrastructure Fund 80% of the net revenue realized from the
206.25% general rate on the selling price of Illinois-mined coal
21that was sold to an eligible business. For purposes of this
22paragraph, the term "eligible business" means a new electric
23generating facility certified pursuant to Section 605-332 of
24the Department of Commerce and Economic Opportunity Law of the
25Civil Administrative Code of Illinois.
26    All remaining moneys received by the Department pursuant to

 

 

HB3400- 55 -LRB098 08352 HLH 38457 b

1this Act shall be paid into the General Revenue Fund of the
2State Treasury.
3    As soon as possible after the first day of each month, upon
4certification of the Department of Revenue, the Comptroller
5shall order transferred and the Treasurer shall transfer from
6the General Revenue Fund to the Motor Fuel Tax Fund an amount
7equal to 1.7% of 80% of the net revenue realized under this Act
8for the second preceding month. Beginning April 1, 2000, this
9transfer is no longer required and shall not be made.
10    Net revenue realized for a month shall be the revenue
11collected by the State pursuant to this Act, less the amount
12paid out during that month as refunds to taxpayers for
13overpayment of liability.
14(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
15eff. 5-27-10.)
 
16    Section 65. The Service Occupation Tax Act is amended by
17changing Sections 3-10 and 9 as follows:
 
18    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
19    Sec. 3-10. Rate of tax. Unless otherwise provided in this
20Section, the tax imposed by this Act is at the rate of 6.25% of
21the "selling price", as defined in Section 2 of the Service Use
22Tax Act, of the tangible personal property. For the purpose of
23computing this tax, in no event shall the "selling price" be
24less than the cost price to the serviceman of the tangible

 

 

HB3400- 56 -LRB098 08352 HLH 38457 b

1personal property transferred. The selling price of each item
2of tangible personal property transferred as an incident of a
3sale of service may be shown as a distinct and separate item on
4the serviceman's billing to the service customer. If the
5selling price is not so shown, the selling price of the
6tangible personal property is deemed to be 50% of the
7serviceman's entire billing to the service customer. When,
8however, a serviceman contracts to design, develop, and produce
9special order machinery or equipment, the tax imposed by this
10Act shall be based on the serviceman's cost price of the
11tangible personal property transferred incident to the
12completion of the contract.
13    Beginning on July 1, 2000 and through December 31, 2000,
14with respect to motor fuel, as defined in Section 1.1 of the
15Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
16the Use Tax Act, the tax is imposed at the rate of 1.25%.
17    With respect to gasohol, as defined in the Use Tax Act, the
18tax imposed by this Act shall apply to (i) 70% of the cost
19price of property transferred as an incident to the sale of
20service on or after January 1, 1990, and before July 1, 2003,
21(ii) 80% of the selling price of property transferred as an
22incident to the sale of service on or after July 1, 2003 and on
23or before December 31, 2018, and (iii) 100% of the cost price
24thereafter. If, at any time, however, the tax under this Act on
25sales of gasohol, as defined in the Use Tax Act, is imposed at
26the rate of 1.25%, then the tax imposed by this Act applies to

 

 

HB3400- 57 -LRB098 08352 HLH 38457 b

1100% of the proceeds of sales of gasohol made during that time.
2    With respect to majority blended ethanol fuel, as defined
3in the Use Tax Act, the tax imposed by this Act does not apply
4to the selling price of property transferred as an incident to
5the sale of service on or after July 1, 2003 and on or before
6December 31, 2018 but applies to 100% of the selling price
7thereafter.
8    With respect to biodiesel blends, as defined in the Use Tax
9Act, with no less than 1% and no more than 10% biodiesel, the
10tax imposed by this Act applies to (i) 80% of the selling price
11of property transferred as an incident to the sale of service
12on or after July 1, 2003 and on or before December 31, 2018 and
13(ii) 100% of the proceeds of the selling price thereafter. If,
14at any time, however, the tax under this Act on sales of
15biodiesel blends, as defined in the Use Tax Act, with no less
16than 1% and no more than 10% biodiesel is imposed at the rate
17of 1.25%, then the tax imposed by this Act applies to 100% of
18the proceeds of sales of biodiesel blends with no less than 1%
19and no more than 10% biodiesel made during that time.
20    With respect to 100% biodiesel, as defined in the Use Tax
21Act, and biodiesel blends, as defined in the Use Tax Act, with
22more than 10% but no more than 99% biodiesel material, the tax
23imposed by this Act does not apply to the proceeds of the
24selling price of property transferred as an incident to the
25sale of service on or after July 1, 2003 and on or before
26December 31, 2018 but applies to 100% of the selling price

 

 

HB3400- 58 -LRB098 08352 HLH 38457 b

1thereafter.
2    At the election of any registered serviceman made for each
3fiscal year, sales of service in which the aggregate annual
4cost price of tangible personal property transferred as an
5incident to the sales of service is less than 35%, or 75% in
6the case of servicemen transferring prescription drugs or
7servicemen engaged in graphic arts production, of the aggregate
8annual total gross receipts from all sales of service, the tax
9imposed by this Act shall be based on the serviceman's cost
10price of the tangible personal property transferred incident to
11the sale of those services.
12    The tax shall be imposed at the rate of 1% on food prepared
13for immediate consumption and transferred incident to a sale of
14service subject to this Act or the Service Occupation Tax Act
15by an entity licensed under the Hospital Licensing Act, the
16Nursing Home Care Act, the ID/DD Community Care Act, the
17Specialized Mental Health Rehabilitation Act, or the Child Care
18Act of 1969. The tax shall also be imposed at the rate of 1% on
19food for human consumption that is to be consumed off the
20premises where it is sold (other than alcoholic beverages, soft
21drinks, and food that has been prepared for immediate
22consumption and is not otherwise included in this paragraph)
23and prescription and nonprescription medicines, drugs, medical
24appliances, modifications to a motor vehicle for the purpose of
25rendering it usable by a disabled person, and insulin, urine
26testing materials, syringes, and needles used by diabetics, for

 

 

HB3400- 59 -LRB098 08352 HLH 38457 b

1human use. For the purposes of this Section, until September 1,
22009: the term "soft drinks" means any complete, finished,
3ready-to-use, non-alcoholic drink, whether carbonated or not,
4including but not limited to soda water, cola, fruit juice,
5vegetable juice, carbonated water, and all other preparations
6commonly known as soft drinks of whatever kind or description
7that are contained in any closed or sealed can, carton, or
8container, regardless of size; but "soft drinks" does not
9include coffee, tea, non-carbonated water, infant formula,
10milk or milk products as defined in the Grade A Pasteurized
11Milk and Milk Products Act, or drinks containing 50% or more
12natural fruit or vegetable juice.
13    Notwithstanding any other provisions of this Act,
14beginning September 1, 2009, "soft drinks" means non-alcoholic
15beverages that contain natural or artificial sweeteners. "Soft
16drinks" do not include beverages that contain milk or milk
17products, soy, rice or similar milk substitutes, or greater
18than 50% of vegetable or fruit juice by volume.
19    Until August 1, 2009, and notwithstanding any other
20provisions of this Act, "food for human consumption that is to
21be consumed off the premises where it is sold" includes all
22food sold through a vending machine, except soft drinks and
23food products that are dispensed hot from a vending machine,
24regardless of the location of the vending machine. Beginning
25August 1, 2009, and notwithstanding any other provisions of
26this Act, "food for human consumption that is to be consumed

 

 

HB3400- 60 -LRB098 08352 HLH 38457 b

1off the premises where it is sold" includes all food sold
2through a vending machine, except soft drinks, candy, and food
3products that are dispensed hot from a vending machine,
4regardless of the location of the vending machine.
5    Notwithstanding any other provisions of this Act,
6beginning September 1, 2009, "food for human consumption that
7is to be consumed off the premises where it is sold" does not
8include candy. For purposes of this Section, "candy" means a
9preparation of sugar, honey, or other natural or artificial
10sweeteners in combination with chocolate, fruits, nuts or other
11ingredients or flavorings in the form of bars, drops, or
12pieces. "Candy" does not include any preparation that contains
13flour or requires refrigeration.
14    Notwithstanding any other provisions of this Act,
15beginning September 1, 2009, "nonprescription medicines and
16drugs" does not include grooming and hygiene products. For
17purposes of this Section, "grooming and hygiene products"
18includes, but is not limited to, soaps and cleaning solutions,
19shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
20lotions and screens, unless those products are available by
21prescription only, regardless of whether the products meet the
22definition of "over-the-counter-drugs". For the purposes of
23this paragraph, "over-the-counter-drug" means a drug for human
24use that contains a label that identifies the product as a drug
25as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
26label includes:

 

 

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1        (A) A "Drug Facts" panel; or
2        (B) A statement of the "active ingredient(s)" with a
3    list of those ingredients contained in the compound,
4    substance or preparation.
5    Beginning on the first day of the first month to occur not
6less than 30 days after the effective date of this amendatory
7Act of the 98th General Assembly, with respect to tangible
8personal property purchased from a business located in a Job
9Renewal Zone created under the Employ Illinois Job Renewal Act,
10the tax is imposed at the rate of 1.25%.
11(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
12eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38,
13eff. 6-28-11; 97-227, eff. 1-1-12; 97-636, eff. 6-1-12.)
 
14    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
15    Sec. 9. Each serviceman required or authorized to collect
16the tax herein imposed shall pay to the Department the amount
17of such tax at the time when he is required to file his return
18for the period during which such tax was collectible, less a
19discount of 2.1% prior to January 1, 1990, and 1.75% on and
20after January 1, 1990, or $5 per calendar year, whichever is
21greater, which is allowed to reimburse the serviceman for
22expenses incurred in collecting the tax, keeping records,
23preparing and filing returns, remitting the tax and supplying
24data to the Department on request.
25    Where such tangible personal property is sold under a

 

 

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1conditional sales contract, or under any other form of sale
2wherein the payment of the principal sum, or a part thereof, is
3extended beyond the close of the period for which the return is
4filed, the serviceman, in collecting the tax may collect, for
5each tax return period, only the tax applicable to the part of
6the selling price actually received during such tax return
7period.
8    Except as provided hereinafter in this Section, on or
9before the twentieth day of each calendar month, such
10serviceman shall file a return for the preceding calendar month
11in accordance with reasonable rules and regulations to be
12promulgated by the Department of Revenue. Such return shall be
13filed on a form prescribed by the Department and shall contain
14such information as the Department may reasonably require.
15    The Department may require returns to be filed on a
16quarterly basis. If so required, a return for each calendar
17quarter shall be filed on or before the twentieth day of the
18calendar month following the end of such calendar quarter. The
19taxpayer shall also file a return with the Department for each
20of the first two months of each calendar quarter, on or before
21the twentieth day of the following calendar month, stating:
22        1. The name of the seller;
23        2. The address of the principal place of business from
24    which he engages in business as a serviceman in this State;
25        3. The total amount of taxable receipts received by him
26    during the preceding calendar month, including receipts

 

 

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1    from charge and time sales, but less all deductions allowed
2    by law;
3        4. The amount of credit provided in Section 2d of this
4    Act;
5        5. The amount of tax due;
6        5-5. The signature of the taxpayer; and
7        6. Such other reasonable information as the Department
8    may require.
9    If a taxpayer fails to sign a return within 30 days after
10the proper notice and demand for signature by the Department,
11the return shall be considered valid and any amount shown to be
12due on the return shall be deemed assessed.
13    Prior to October 1, 2003, and on and after September 1,
142004 a serviceman may accept a Manufacturer's Purchase Credit
15certification from a purchaser in satisfaction of Service Use
16Tax as provided in Section 3-70 of the Service Use Tax Act if
17the purchaser provides the appropriate documentation as
18required by Section 3-70 of the Service Use Tax Act. A
19Manufacturer's Purchase Credit certification, accepted prior
20to October 1, 2003 or on or after September 1, 2004 by a
21serviceman as provided in Section 3-70 of the Service Use Tax
22Act, may be used by that serviceman to satisfy Service
23Occupation Tax liability in the amount claimed in the
24certification, not to exceed 6.25% of the receipts subject to
25tax from a qualifying purchase. A Manufacturer's Purchase
26Credit reported on any original or amended return filed under

 

 

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1this Act after October 20, 2003 for reporting periods prior to
2September 1, 2004 shall be disallowed. Manufacturer's Purchase
3Credit reported on annual returns due on or after January 1,
42005 will be disallowed for periods prior to September 1, 2004.
5No Manufacturer's Purchase Credit may be used after September
630, 2003 through August 31, 2004 to satisfy any tax liability
7imposed under this Act, including any audit liability.
8    If the serviceman's average monthly tax liability to the
9Department does not exceed $200, the Department may authorize
10his returns to be filed on a quarter annual basis, with the
11return for January, February and March of a given year being
12due by April 20 of such year; with the return for April, May
13and June of a given year being due by July 20 of such year; with
14the return for July, August and September of a given year being
15due by October 20 of such year, and with the return for
16October, November and December of a given year being due by
17January 20 of the following year.
18    If the serviceman's average monthly tax liability to the
19Department does not exceed $50, the Department may authorize
20his returns to be filed on an annual basis, with the return for
21a given year being due by January 20 of the following year.
22    Such quarter annual and annual returns, as to form and
23substance, shall be subject to the same requirements as monthly
24returns.
25    Notwithstanding any other provision in this Act concerning
26the time within which a serviceman may file his return, in the

 

 

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

 

 

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1a tax liability in the amount set forth in subsection (b) of
2Section 2505-210 of the Department of Revenue Law shall make
3all payments required by rules of the Department by electronic
4funds transfer.
5    Before August 1 of each year beginning in 1993, the
6Department shall notify all taxpayers required to make payments
7by electronic funds transfer. All taxpayers required to make
8payments by electronic funds transfer shall make those payments
9for a minimum of one year beginning on October 1.
10    Any taxpayer not required to make payments by electronic
11funds transfer may make payments by electronic funds transfer
12with the permission of the Department.
13    All taxpayers required to make payment by electronic funds
14transfer and any taxpayers authorized to voluntarily make
15payments by electronic funds transfer shall make those payments
16in the manner authorized by the Department.
17    The Department shall adopt such rules as are necessary to
18effectuate a program of electronic funds transfer and the
19requirements of this Section.
20    Where a serviceman collects the tax with respect to the
21selling price of tangible personal property which he sells and
22the purchaser thereafter returns such tangible personal
23property and the serviceman refunds the selling price thereof
24to the purchaser, such serviceman shall also refund, to the
25purchaser, the tax so collected from the purchaser. When filing
26his return for the period in which he refunds such tax to the

 

 

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1purchaser, the serviceman may deduct the amount of the tax so
2refunded by him to the purchaser from any other Service
3Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
4Use Tax which such serviceman may be required to pay or remit
5to the Department, as shown by such return, provided that the
6amount of the tax to be deducted shall previously have been
7remitted to the Department by such serviceman. If the
8serviceman shall not previously have remitted the amount of
9such tax to the Department, he shall be entitled to no
10deduction hereunder upon refunding such tax to the purchaser.
11    If experience indicates such action to be practicable, the
12Department may prescribe and furnish a combination or joint
13return which will enable servicemen, who are required to file
14returns hereunder and also under the Retailers' Occupation Tax
15Act, the Use Tax Act or the Service Use Tax Act, to furnish all
16the return information required by all said Acts on the one
17form.
18    Where the serviceman has more than one business registered
19with the Department under separate registrations hereunder,
20such serviceman shall file separate returns for each registered
21business.
22    Beginning January 1, 1990, each month the Department shall
23pay into the Local Government Tax Fund the revenue realized for
24the preceding month from the 1% tax on sales of food for human
25consumption which is to be consumed off the premises where it
26is sold (other than alcoholic beverages, soft drinks and food

 

 

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1which has been prepared for immediate consumption) and
2prescription and nonprescription medicines, drugs, medical
3appliances and insulin, urine testing materials, syringes and
4needles used by diabetics.
5    Beginning January 1, 1990, each month the Department shall
6pay into the County and Mass Transit District Fund 4% of the
7revenue realized for the preceding month from the 6.25% general
8rate.
9    Beginning August 1, 2000, each month the Department shall
10pay into the County and Mass Transit District Fund 20% of the
11net revenue realized for the preceding month from the 1.25%
12rate on the selling price of motor fuel and gasohol.
13    Beginning January 1, 1990, each month the Department shall
14pay into the Local Government Tax Fund 16% of the revenue
15realized for the preceding month from the 6.25% general rate on
16transfers of tangible personal property.
17    Beginning August 1, 2000, each month the Department shall
18pay into the Local Government Tax Fund 80% of the net revenue
19realized for the preceding month from the 1.25% rate on the
20selling price of motor fuel and gasohol.
21    Beginning on the first day of the first month to occur not
22less than 30 days after the effective date of this amendatory
23Act of the 98th General Assembly, each month the Department
24shall pay into the County and Mass Transit District Fund 20% of
25the net revenue realized for the preceding month from the 1.25%
26rate on the selling price of tangible personal property

 

 

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1purchased from a business located in a Job Renewal Zone created
2under the Employ Illinois Job Renewal Act.
3    Beginning on the first day of the first month to occur not
4less than 30 days after the effective date of this amendatory
5Act of the 98th General Assembly, each month the Department
6shall pay into the Local Government Tax Fund 80% of the net
7revenue realized for the preceding month from the 1.25% rate on
8the selling price of tangible personal property purchased from
9a business located in a Job Renewal Zone created under the
10Employ Illinois Job Renewal Act.
11    Beginning October 1, 2009, each month the Department shall
12pay into the Capital Projects Fund an amount that is equal to
13an amount estimated by the Department to represent 80% of the
14net revenue realized for the preceding month from the sale of
15candy, grooming and hygiene products, and soft drinks that had
16been taxed at a rate of 1% prior to September 1, 2009 but that
17is now taxed at 6.25%.
18    Of the remainder of the moneys received by the Department
19pursuant to this Act, (a) 1.75% thereof shall be paid into the
20Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
21and after July 1, 1989, 3.8% thereof shall be paid into the
22Build Illinois Fund; provided, however, that if in any fiscal
23year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
24may be, of the moneys received by the Department and required
25to be paid into the Build Illinois Fund pursuant to Section 3
26of the Retailers' Occupation Tax Act, Section 9 of the Use Tax

 

 

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

 

 

HB3400- 71 -LRB098 08352 HLH 38457 b

1this clause (b) shall be payable only until such time as the
2aggregate amount on deposit under each trust indenture securing
3Bonds issued and outstanding pursuant to the Build Illinois
4Bond Act is sufficient, taking into account any future
5investment income, to fully provide, in accordance with such
6indenture, for the defeasance of or the payment of the
7principal of, premium, if any, and interest on the Bonds
8secured by such indenture and on any Bonds expected to be
9issued thereafter and all fees and costs payable with respect
10thereto, all as certified by the Director of the Bureau of the
11Budget (now Governor's Office of Management and Budget). If on
12the last business day of any month in which Bonds are
13outstanding pursuant to the Build Illinois Bond Act, the
14aggregate of the moneys deposited in the Build Illinois Bond
15Account in the Build Illinois Fund in such month shall be less
16than the amount required to be transferred in such month from
17the Build Illinois Bond Account to the Build Illinois Bond
18Retirement and Interest Fund pursuant to Section 13 of the
19Build Illinois Bond Act, an amount equal to such deficiency
20shall be immediately paid from other moneys received by the
21Department pursuant to the Tax Acts to the Build Illinois Fund;
22provided, however, that any amounts paid to the Build Illinois
23Fund in any fiscal year pursuant to this sentence shall be
24deemed to constitute payments pursuant to clause (b) of the
25preceding sentence and shall reduce the amount otherwise
26payable for such fiscal year pursuant to clause (b) of the

 

 

HB3400- 72 -LRB098 08352 HLH 38457 b

1preceding sentence. The moneys received by the Department
2pursuant to this Act and required to be deposited into the
3Build Illinois Fund are subject to the pledge, claim and charge
4set forth in Section 12 of the Build Illinois Bond Act.
5    Subject to payment of amounts into the Build Illinois Fund
6as provided in the preceding paragraph or in any amendment
7thereto hereafter enacted, the following specified monthly
8installment of the amount requested in the certificate of the
9Chairman of the Metropolitan Pier and Exposition Authority
10provided under Section 8.25f of the State Finance Act, but not
11in excess of the sums designated as "Total Deposit", shall be
12deposited in the aggregate from collections under Section 9 of
13the Use Tax Act, Section 9 of the Service Use Tax Act, Section
149 of the Service Occupation Tax Act, and Section 3 of the
15Retailers' Occupation Tax Act into the McCormick Place
16Expansion Project Fund in the specified fiscal years.
17Fiscal YearTotal Deposit
181993         $0
191994 53,000,000
201995 58,000,000
211996 61,000,000
221997 64,000,000
231998 68,000,000
241999 71,000,000
252000 75,000,000

 

 

HB3400- 73 -LRB098 08352 HLH 38457 b

12001 80,000,000
22002 93,000,000
32003 99,000,000
42004103,000,000
52005108,000,000
62006113,000,000
72007119,000,000
82008126,000,000
92009132,000,000
102010139,000,000
112011146,000,000
122012153,000,000
132013161,000,000
142014170,000,000
152015179,000,000
162016189,000,000
172017199,000,000
182018210,000,000
192019221,000,000
202020233,000,000
212021246,000,000
222022260,000,000
232023275,000,000
242024 275,000,000
252025 275,000,000
262026 279,000,000

 

 

HB3400- 74 -LRB098 08352 HLH 38457 b

12027 292,000,000
22028 307,000,000
32029 322,000,000
42030 338,000,000
52031 350,000,000
62032 350,000,000
7and
8each fiscal year
9thereafter that bonds
10are outstanding under
11Section 13.2 of the
12Metropolitan Pier and
13Exposition Authority Act,
14but not after fiscal year 2060.
15    Beginning July 20, 1993 and in each month of each fiscal
16year thereafter, one-eighth of the amount requested in the
17certificate of the Chairman of the Metropolitan Pier and
18Exposition Authority for that fiscal year, less the amount
19deposited into the McCormick Place Expansion Project Fund by
20the State Treasurer in the respective month under subsection
21(g) of Section 13 of the Metropolitan Pier and Exposition
22Authority Act, plus cumulative deficiencies in the deposits
23required under this Section for previous months and years,
24shall be deposited into the McCormick Place Expansion Project
25Fund, until the full amount requested for the fiscal year, but
26not in excess of the amount specified above as "Total Deposit",

 

 

HB3400- 75 -LRB098 08352 HLH 38457 b

1has been deposited.
2    Subject to payment of amounts into the Build Illinois Fund
3and the McCormick Place Expansion Project Fund pursuant to the
4preceding paragraphs or in any amendments thereto hereafter
5enacted, beginning July 1, 1993, the Department shall each
6month pay into the Illinois Tax Increment Fund 0.27% of 80% of
7the net revenue realized for the preceding month from the 6.25%
8general rate on the selling price of tangible personal
9property.
10    Subject to payment of amounts into the Build Illinois Fund
11and the McCormick Place Expansion Project Fund pursuant to the
12preceding paragraphs or in any amendments thereto hereafter
13enacted, beginning with the receipt of the first report of
14taxes paid by an eligible business and continuing for a 25-year
15period, the Department shall each month pay into the Energy
16Infrastructure Fund 80% of the net revenue realized from the
176.25% general rate on the selling price of Illinois-mined coal
18that was sold to an eligible business. For purposes of this
19paragraph, the term "eligible business" means a new electric
20generating facility certified pursuant to Section 605-332 of
21the Department of Commerce and Economic Opportunity Law of the
22Civil Administrative Code of Illinois.
23    Remaining moneys received by the Department pursuant to
24this Act shall be paid into the General Revenue Fund of the
25State Treasury.
26    The Department may, upon separate written notice to a

 

 

HB3400- 76 -LRB098 08352 HLH 38457 b

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

 

 

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

 

 

HB3400- 78 -LRB098 08352 HLH 38457 b

1for the second preceding month. Beginning April 1, 2000, this
2transfer is no longer required and shall not be made.
3    Net revenue realized for a month shall be the revenue
4collected by the State pursuant to this Act, less the amount
5paid out during that month as refunds to taxpayers for
6overpayment of liability.
7    For greater simplicity of administration, it shall be
8permissible for manufacturers, importers and wholesalers whose
9products are sold by numerous servicemen in Illinois, and who
10wish to do so, to assume the responsibility for accounting and
11paying to the Department all tax accruing under this Act with
12respect to such sales, if the servicemen who are affected do
13not make written objection to the Department to this
14arrangement.
15(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
16eff. 5-27-10.)
 
17    Section 70. The Retailers' Occupation Tax Act is amended by
18changing Sections 2-10 and 3 as follows:
 
19    (35 ILCS 120/2-10)
20    Sec. 2-10. Rate of tax. Unless otherwise provided in this
21Section, the tax imposed by this Act is at the rate of 6.25% of
22gross receipts from sales of tangible personal property made in
23the course of business.
24    Beginning on July 1, 2000 and through December 31, 2000,

 

 

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1with respect to motor fuel, as defined in Section 1.1 of the
2Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
3the Use Tax Act, the tax is imposed at the rate of 1.25%.
4    Beginning on August 6, 2010 through August 15, 2010, with
5respect to sales tax holiday items as defined in Section 2-8 of
6this Act, the tax is imposed at the rate of 1.25%.
7    Within 14 days after the effective date of this amendatory
8Act of the 91st General Assembly, each retailer of motor fuel
9and gasohol shall cause the following notice to be posted in a
10prominently visible place on each retail dispensing device that
11is used to dispense motor fuel or gasohol in the State of
12Illinois: "As of July 1, 2000, the State of Illinois has
13eliminated the State's share of sales tax on motor fuel and
14gasohol through December 31, 2000. The price on this pump
15should reflect the elimination of the tax." The notice shall be
16printed in bold print on a sign that is no smaller than 4
17inches by 8 inches. The sign shall be clearly visible to
18customers. Any retailer who fails to post or maintain a
19required sign through December 31, 2000 is guilty of a petty
20offense for which the fine shall be $500 per day per each
21retail premises where a violation occurs.
22    With respect to gasohol, as defined in the Use Tax Act, the
23tax imposed by this Act applies to (i) 70% of the proceeds of
24sales made on or after January 1, 1990, and before July 1,
252003, (ii) 80% of the proceeds of sales made on or after July
261, 2003 and on or before December 31, 2018, and (iii) 100% of

 

 

HB3400- 80 -LRB098 08352 HLH 38457 b

1the proceeds of sales made thereafter. If, at any time,
2however, the tax under this Act on sales of gasohol, as defined
3in the Use Tax Act, is imposed at the rate of 1.25%, then the
4tax imposed by this Act applies to 100% of the proceeds of
5sales of gasohol made during that time.
6    With respect to majority blended ethanol fuel, as defined
7in the Use Tax Act, the tax imposed by this Act does not apply
8to the proceeds of sales made on or after July 1, 2003 and on or
9before December 31, 2018 but applies to 100% of the proceeds of
10sales made thereafter.
11    With respect to biodiesel blends, as defined in the Use Tax
12Act, with no less than 1% and no more than 10% biodiesel, the
13tax imposed by this Act applies to (i) 80% of the proceeds of
14sales made on or after July 1, 2003 and on or before December
1531, 2018 and (ii) 100% of the proceeds of sales made
16thereafter. If, at any time, however, the tax under this Act on
17sales of biodiesel blends, as defined in the Use Tax Act, with
18no less than 1% and no more than 10% biodiesel is imposed at
19the rate of 1.25%, then the tax imposed by this Act applies to
20100% of the proceeds of sales of biodiesel blends with no less
21than 1% and no more than 10% biodiesel made during that time.
22    With respect to 100% biodiesel, as defined in the Use Tax
23Act, and biodiesel blends, as defined in the Use Tax Act, with
24more than 10% but no more than 99% biodiesel, the tax imposed
25by this Act does not apply to the proceeds of sales made on or
26after July 1, 2003 and on or before December 31, 2018 but

 

 

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1applies to 100% of the proceeds of sales made thereafter.
2    With respect to food for human consumption that is to be
3consumed off the premises where it is sold (other than
4alcoholic beverages, soft drinks, and food that has been
5prepared for immediate consumption) and prescription and
6nonprescription medicines, drugs, medical appliances,
7modifications to a motor vehicle for the purpose of rendering
8it usable by a disabled person, and insulin, urine testing
9materials, syringes, and needles used by diabetics, for human
10use, the tax is imposed at the rate of 1%. For the purposes of
11this Section, until September 1, 2009: the term "soft drinks"
12means any complete, finished, ready-to-use, non-alcoholic
13drink, whether carbonated or not, including but not limited to
14soda water, cola, fruit juice, vegetable juice, carbonated
15water, and all other preparations commonly known as soft drinks
16of whatever kind or description that are contained in any
17closed or sealed bottle, can, carton, or container, regardless
18of size; but "soft drinks" does not include coffee, tea,
19non-carbonated water, infant formula, milk or milk products as
20defined in the Grade A Pasteurized Milk and Milk Products Act,
21or drinks containing 50% or more natural fruit or vegetable
22juice.
23    Notwithstanding any other provisions of this Act,
24beginning September 1, 2009, "soft drinks" means non-alcoholic
25beverages that contain natural or artificial sweeteners. "Soft
26drinks" do not include beverages that contain milk or milk

 

 

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1products, soy, rice or similar milk substitutes, or greater
2than 50% of vegetable or fruit juice by volume.
3    Until August 1, 2009, and notwithstanding any other
4provisions of this Act, "food for human consumption that is to
5be consumed off the premises where it is sold" includes all
6food sold through a vending machine, except soft drinks and
7food products that are dispensed hot from a vending machine,
8regardless of the location of the vending machine. Beginning
9August 1, 2009, and notwithstanding any other provisions of
10this Act, "food for human consumption that is to be consumed
11off the premises where it is sold" includes all food sold
12through a vending machine, except soft drinks, candy, and food
13products that are dispensed hot from a vending machine,
14regardless of the location of the vending machine.
15    Notwithstanding any other provisions of this Act,
16beginning September 1, 2009, "food for human consumption that
17is to be consumed off the premises where it is sold" does not
18include candy. For purposes of this Section, "candy" means a
19preparation of sugar, honey, or other natural or artificial
20sweeteners in combination with chocolate, fruits, nuts or other
21ingredients or flavorings in the form of bars, drops, or
22pieces. "Candy" does not include any preparation that contains
23flour or requires refrigeration.
24    Notwithstanding any other provisions of this Act,
25beginning September 1, 2009, "nonprescription medicines and
26drugs" does not include grooming and hygiene products. For

 

 

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1purposes of this Section, "grooming and hygiene products"
2includes, but is not limited to, soaps and cleaning solutions,
3shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
4lotions and screens, unless those products are available by
5prescription only, regardless of whether the products meet the
6definition of "over-the-counter-drugs". For the purposes of
7this paragraph, "over-the-counter-drug" means a drug for human
8use that contains a label that identifies the product as a drug
9as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
10label includes:
11        (A) A "Drug Facts" panel; or
12        (B) A statement of the "active ingredient(s)" with a
13    list of those ingredients contained in the compound,
14    substance or preparation.
15    Beginning on the first day of the first month to occur not
16less than 30 days after the effective date of this amendatory
17Act of the 98th General Assembly, with respect to tangible
18personal property purchased from a business located in a Job
19Renewal Zone created under the Employ Illinois Job Renewal Act,
20the tax is imposed at the rate of 1.25%.
21(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
22eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10;
2397-636, eff. 6-1-12.)
 
24    (35 ILCS 120/3)  (from Ch. 120, par. 442)
25    Sec. 3. Except as provided in this Section, on or before

 

 

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

 

 

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1        8. The amount of tax due;
2        9. The signature of the taxpayer; and
3        10. Such other reasonable information as the
4    Department may require.
5    If a taxpayer fails to sign a return within 30 days after
6the proper notice and demand for signature by the Department,
7the return shall be considered valid and any amount shown to be
8due on the return shall be deemed assessed.
9    Each return shall be accompanied by the statement of
10prepaid tax issued pursuant to Section 2e for which credit is
11claimed.
12    Prior to October 1, 2003, and on and after September 1,
132004 a retailer may accept a Manufacturer's Purchase Credit
14certification from a purchaser in satisfaction of Use Tax as
15provided in Section 3-85 of the Use Tax Act if the purchaser
16provides the appropriate documentation as required by Section
173-85 of the Use Tax Act. A Manufacturer's Purchase Credit
18certification, accepted by a retailer prior to October 1, 2003
19and on and after September 1, 2004 as provided in Section 3-85
20of the Use Tax Act, may be used by that retailer to satisfy
21Retailers' Occupation Tax liability in the amount claimed in
22the certification, not to exceed 6.25% of the receipts subject
23to tax from a qualifying purchase. A Manufacturer's Purchase
24Credit reported on any original or amended return filed under
25this Act after October 20, 2003 for reporting periods prior to
26September 1, 2004 shall be disallowed. Manufacturer's

 

 

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1Purchaser Credit reported on annual returns due on or after
2January 1, 2005 will be disallowed for periods prior to
3September 1, 2004. No Manufacturer's Purchase Credit may be
4used after September 30, 2003 through August 31, 2004 to
5satisfy any tax liability imposed under this Act, including any
6audit liability.
7    The Department may require returns to be filed on a
8quarterly basis. If so required, a return for each calendar
9quarter shall be filed on or before the twentieth day of the
10calendar month following the end of such calendar quarter. The
11taxpayer shall also file a return with the Department for each
12of the first two months of each calendar quarter, on or before
13the twentieth day of the following calendar month, stating:
14        1. The name of the seller;
15        2. The address of the principal place of business from
16    which he engages in the business of selling tangible
17    personal property at retail in this State;
18        3. The total amount of taxable receipts received by him
19    during the preceding calendar month from sales of tangible
20    personal property by him during such preceding calendar
21    month, including receipts from charge and time sales, but
22    less all deductions allowed by law;
23        4. The amount of credit provided in Section 2d of this
24    Act;
25        5. The amount of tax due; and
26        6. Such other reasonable information as the Department

 

 

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1    may require.
2    Beginning on October 1, 2003, any person who is not a
3licensed distributor, importing distributor, or manufacturer,
4as defined in the Liquor Control Act of 1934, but is engaged in
5the business of selling, at retail, alcoholic liquor shall file
6a statement with the Department of Revenue, in a format and at
7a time prescribed by the Department, showing the total amount
8paid for alcoholic liquor purchased during the preceding month
9and such other information as is reasonably required by the
10Department. The Department may adopt rules to require that this
11statement be filed in an electronic or telephonic format. Such
12rules may provide for exceptions from the filing requirements
13of this paragraph. For the purposes of this paragraph, the term
14"alcoholic liquor" shall have the meaning prescribed in the
15Liquor Control Act of 1934.
16    Beginning on October 1, 2003, every distributor, importing
17distributor, and manufacturer of alcoholic liquor as defined in
18the Liquor Control Act of 1934, shall file a statement with the
19Department of Revenue, no later than the 10th day of the month
20for the preceding month during which transactions occurred, by
21electronic means, showing the total amount of gross receipts
22from the sale of alcoholic liquor sold or distributed during
23the preceding month to purchasers; identifying the purchaser to
24whom it was sold or distributed; the purchaser's tax
25registration number; and such other information reasonably
26required by the Department. A distributor, importing

 

 

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1distributor, or manufacturer of alcoholic liquor must
2personally deliver, mail, or provide by electronic means to
3each retailer listed on the monthly statement a report
4containing a cumulative total of that distributor's, importing
5distributor's, or manufacturer's total sales of alcoholic
6liquor to that retailer no later than the 10th day of the month
7for the preceding month during which the transaction occurred.
8The distributor, importing distributor, or manufacturer shall
9notify the retailer as to the method by which the distributor,
10importing distributor, or manufacturer will provide the sales
11information. If the retailer is unable to receive the sales
12information by electronic means, the distributor, importing
13distributor, or manufacturer shall furnish the sales
14information by personal delivery or by mail. For purposes of
15this paragraph, the term "electronic means" includes, but is
16not limited to, the use of a secure Internet website, e-mail,
17or facsimile.
18    If a total amount of less than $1 is payable, refundable or
19creditable, such amount shall be disregarded if it is less than
2050 cents and shall be increased to $1 if it is 50 cents or more.
21    Beginning October 1, 1993, a taxpayer who has an average
22monthly tax liability of $150,000 or more shall make all
23payments required by rules of the Department by electronic
24funds transfer. Beginning October 1, 1994, a taxpayer who has
25an average monthly tax liability of $100,000 or more shall make
26all payments required by rules of the Department by electronic

 

 

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1funds transfer. Beginning October 1, 1995, a taxpayer who has
2an average monthly tax liability of $50,000 or more shall make
3all payments required by rules of the Department by electronic
4funds transfer. Beginning October 1, 2000, a taxpayer who has
5an annual tax liability of $200,000 or more shall make all
6payments required by rules of the Department by electronic
7funds transfer. The term "annual tax liability" shall be the
8sum of the taxpayer's liabilities under this Act, and under all
9other State and local occupation and use tax laws administered
10by the Department, for the immediately preceding calendar year.
11The term "average monthly tax liability" shall be the sum of
12the taxpayer's liabilities under this Act, and under all other
13State and local occupation and use tax laws administered by the
14Department, for the immediately preceding calendar year
15divided by 12. Beginning on October 1, 2002, a taxpayer who has
16a tax liability in the amount set forth in subsection (b) of
17Section 2505-210 of the Department of Revenue Law shall make
18all payments required by rules of the Department by electronic
19funds transfer.
20    Before August 1 of each year beginning in 1993, the
21Department shall notify all taxpayers required to make payments
22by electronic funds transfer. All taxpayers required to make
23payments by electronic funds transfer shall make those payments
24for a minimum of one year beginning on October 1.
25    Any taxpayer not required to make payments by electronic
26funds transfer may make payments by electronic funds transfer

 

 

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

 

 

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

 

 

HB3400- 92 -LRB098 08352 HLH 38457 b

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

 

 

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

 

 

HB3400- 94 -LRB098 08352 HLH 38457 b

1for the traded-in tangible personal property, if any, to the
2extent to which Section 1 of this Act allows an exemption for
3the value of traded-in property; the balance payable after
4deducting such trade-in allowance from the total selling price;
5the amount of tax due from the retailer with respect to such
6transaction; the amount of tax collected from the purchaser by
7the retailer on such transaction (or satisfactory evidence that
8such tax is not due in that particular instance, if that is
9claimed to be the fact); the place and date of the sale, a
10sufficient identification of the property sold, and such other
11information as the Department may reasonably require.
12    Such transaction reporting return shall be filed not later
13than 20 days after the day of delivery of the item that is
14being sold, but may be filed by the retailer at any time sooner
15than that if he chooses to do so. The transaction reporting
16return and tax remittance or proof of exemption from the
17Illinois use tax may be transmitted to the Department by way of
18the State agency with which, or State officer with whom the
19tangible personal property must be titled or registered (if
20titling or registration is required) if the Department and such
21agency or State officer determine that this procedure will
22expedite the processing of applications for title or
23registration.
24    With each such transaction reporting return, the retailer
25shall remit the proper amount of tax due (or shall submit
26satisfactory evidence that the sale is not taxable if that is

 

 

HB3400- 95 -LRB098 08352 HLH 38457 b

1the case), to the Department or its agents, whereupon the
2Department shall issue, in the purchaser's name, a use tax
3receipt (or a certificate of exemption if the Department is
4satisfied that the particular sale is tax exempt) which such
5purchaser may submit to the agency with which, or State officer
6with whom, he must title or register the tangible personal
7property that is involved (if titling or registration is
8required) in support of such purchaser's application for an
9Illinois certificate or other evidence of title or registration
10to such tangible personal property.
11    No retailer's failure or refusal to remit tax under this
12Act precludes a user, who has paid the proper tax to the
13retailer, from obtaining his certificate of title or other
14evidence of title or registration (if titling or registration
15is required) upon satisfying the Department that such user has
16paid the proper tax (if tax is due) to the retailer. The
17Department shall adopt appropriate rules to carry out the
18mandate of this paragraph.
19    If the user who would otherwise pay tax to the retailer
20wants the transaction reporting return filed and the payment of
21the tax or proof of exemption made to the Department before the
22retailer is willing to take these actions and such user has not
23paid the tax to the retailer, such user may certify to the fact
24of such delay by the retailer and may (upon the Department
25being satisfied of the truth of such certification) transmit
26the information required by the transaction reporting return

 

 

HB3400- 96 -LRB098 08352 HLH 38457 b

1and the remittance for tax or proof of exemption directly to
2the Department and obtain his tax receipt or exemption
3determination, in which event the transaction reporting return
4and tax remittance (if a tax payment was required) shall be
5credited by the Department to the proper retailer's account
6with the Department, but without the 2.1% or 1.75% discount
7provided for in this Section being allowed. When the user pays
8the tax directly to the Department, he shall pay the tax in the
9same amount and in the same form in which it would be remitted
10if the tax had been remitted to the Department by the retailer.
11    Refunds made by the seller during the preceding return
12period to purchasers, on account of tangible personal property
13returned to the seller, shall be allowed as a deduction under
14subdivision 5 of his monthly or quarterly return, as the case
15may be, in case the seller had theretofore included the
16receipts from the sale of such tangible personal property in a
17return filed by him and had paid the tax imposed by this Act
18with respect to such receipts.
19    Where the seller is a corporation, the return filed on
20behalf of such corporation shall be signed by the president,
21vice-president, secretary or treasurer or by the properly
22accredited agent of such corporation.
23    Where the seller is a limited liability company, the return
24filed on behalf of the limited liability company shall be
25signed by a manager, member, or properly accredited agent of
26the limited liability company.

 

 

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

 

 

HB3400- 98 -LRB098 08352 HLH 38457 b

11, 2000, if the taxpayer's average monthly tax liability to the
2Department under this Act, the Use Tax Act, the Service
3Occupation Tax Act, and the Service Use Tax Act, excluding any
4liability for prepaid sales tax to be remitted in accordance
5with Section 2d of this Act, was $20,000 or more during the
6preceding 4 complete calendar quarters, he shall file a return
7with the Department each month by the 20th day of the month
8next following the month during which such tax liability is
9incurred and shall make payment to the Department on or before
10the 7th, 15th, 22nd and last day of the month during which such
11liability is incurred. If the month during which such tax
12liability is incurred began prior to January 1, 1985, each
13payment shall be in an amount equal to 1/4 of the taxpayer's
14actual liability for the month or an amount set by the
15Department not to exceed 1/4 of the average monthly liability
16of the taxpayer to the Department for the preceding 4 complete
17calendar quarters (excluding the month of highest liability and
18the month of lowest liability in such 4 quarter period). If the
19month during which such tax liability is incurred begins on or
20after January 1, 1985 and prior to January 1, 1987, each
21payment shall be in an amount equal to 22.5% of the taxpayer's
22actual liability for the month or 27.5% of the taxpayer's
23liability for the same calendar month of the preceding year. If
24the month during which such tax liability is incurred begins on
25or after January 1, 1987 and prior to January 1, 1988, each
26payment shall be in an amount equal to 22.5% of the taxpayer's

 

 

HB3400- 99 -LRB098 08352 HLH 38457 b

1actual liability for the month or 26.25% of the taxpayer's
2liability for the same calendar month of the preceding year. If
3the month during which such tax liability is incurred begins on
4or after January 1, 1988, and prior to January 1, 1989, or
5begins on or after January 1, 1996, each payment shall be in an
6amount equal to 22.5% of the taxpayer's actual liability for
7the month or 25% of the taxpayer's liability for the same
8calendar month of the preceding year. If the month during which
9such tax liability is incurred begins on or after January 1,
101989, and prior to January 1, 1996, each payment shall be in an
11amount equal to 22.5% of the taxpayer's actual liability for
12the month or 25% of the taxpayer's liability for the same
13calendar month of the preceding year or 100% of the taxpayer's
14actual liability for the quarter monthly reporting period. The
15amount of such quarter monthly payments shall be credited
16against the final tax liability of the taxpayer's return for
17that month. Before October 1, 2000, once applicable, the
18requirement of the making of quarter monthly payments to the
19Department by taxpayers having an average monthly tax liability
20of $10,000 or more as determined in the manner provided above
21shall continue until such taxpayer's average monthly liability
22to the Department during the preceding 4 complete calendar
23quarters (excluding the month of highest liability and the
24month of lowest liability) is less than $9,000, or until such
25taxpayer's average monthly liability to the Department as
26computed for each calendar quarter of the 4 preceding complete

 

 

HB3400- 100 -LRB098 08352 HLH 38457 b

1calendar quarter period is less than $10,000. However, if a
2taxpayer can show the Department that a substantial change in
3the taxpayer's business has occurred which causes the taxpayer
4to anticipate that his average monthly tax liability for the
5reasonably foreseeable future will fall below the $10,000
6threshold stated above, then such taxpayer may petition the
7Department for a change in such taxpayer's reporting status. On
8and after October 1, 2000, once applicable, the requirement of
9the making of quarter monthly payments to the Department by
10taxpayers having an average monthly tax liability of $20,000 or
11more as determined in the manner provided above shall continue
12until such taxpayer's average monthly liability to the
13Department during the preceding 4 complete calendar quarters
14(excluding the month of highest liability and the month of
15lowest liability) is less than $19,000 or until such taxpayer's
16average monthly liability to the Department as computed for
17each calendar quarter of the 4 preceding complete calendar
18quarter period is less than $20,000. However, if a taxpayer can
19show the Department that a substantial change in the taxpayer's
20business has occurred which causes the taxpayer to anticipate
21that his average monthly tax liability for the reasonably
22foreseeable future will fall below the $20,000 threshold stated
23above, then such taxpayer may petition the Department for a
24change in such taxpayer's reporting status. The Department
25shall change such taxpayer's reporting status unless it finds
26that such change is seasonal in nature and not likely to be

 

 

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1long term. If any such quarter monthly payment is not paid at
2the time or in the amount required by this Section, then the
3taxpayer shall be liable for penalties and interest on the
4difference between the minimum amount due as a payment and the
5amount of such quarter monthly payment actually and timely
6paid, except insofar as the taxpayer has previously made
7payments for that month to the Department in excess of the
8minimum payments previously due as provided in this Section.
9The Department shall make reasonable rules and regulations to
10govern the quarter monthly payment amount and quarter monthly
11payment dates for taxpayers who file on other than a calendar
12monthly basis.
13    The provisions of this paragraph apply before October 1,
142001. Without regard to whether a taxpayer is required to make
15quarter monthly payments as specified above, any taxpayer who
16is required by Section 2d of this Act to collect and remit
17prepaid taxes and has collected prepaid taxes which average in
18excess of $25,000 per month during the preceding 2 complete
19calendar quarters, shall file a return with the Department as
20required by Section 2f and shall make payments to the
21Department on or before the 7th, 15th, 22nd and last day of the
22month during which such liability is incurred. If the month
23during which such tax liability is incurred began prior to the
24effective date of this amendatory Act of 1985, each payment
25shall be in an amount not less than 22.5% of the taxpayer's
26actual liability under Section 2d. If the month during which

 

 

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1such tax liability is incurred begins on or after January 1,
21986, each payment shall be in an amount equal to 22.5% of the
3taxpayer's actual liability for the month or 27.5% of the
4taxpayer's liability for the same calendar month of the
5preceding calendar year. If the month during which such tax
6liability is incurred begins on or after January 1, 1987, each
7payment shall be in an amount equal to 22.5% of the taxpayer's
8actual liability for the month or 26.25% of the taxpayer's
9liability for the same calendar month of the preceding year.
10The amount of such quarter monthly payments shall be credited
11against the final tax liability of the taxpayer's return for
12that month filed under this Section or Section 2f, as the case
13may be. Once applicable, the requirement of the making of
14quarter monthly payments to the Department pursuant to this
15paragraph shall continue until such taxpayer's average monthly
16prepaid tax collections during the preceding 2 complete
17calendar quarters is $25,000 or less. If any such quarter
18monthly payment is not paid at the time or in the amount
19required, the taxpayer shall be liable for penalties and
20interest on such difference, except insofar as the taxpayer has
21previously made payments for that month in excess of the
22minimum payments previously due.
23    The provisions of this paragraph apply on and after October
241, 2001. Without regard to whether a taxpayer is required to
25make quarter monthly payments as specified above, any taxpayer
26who is required by Section 2d of this Act to collect and remit

 

 

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1prepaid taxes and has collected prepaid taxes that average in
2excess of $20,000 per month during the preceding 4 complete
3calendar quarters shall file a return with the Department as
4required by Section 2f and shall make payments to the
5Department on or before the 7th, 15th, 22nd and last day of the
6month during which the liability is incurred. Each payment
7shall be in an amount equal to 22.5% of the taxpayer's actual
8liability for the month or 25% of the taxpayer's liability for
9the same calendar month of the preceding year. The amount of
10the quarter monthly payments shall be credited against the
11final tax liability of the taxpayer's return for that month
12filed under this Section or Section 2f, as the case may be.
13Once applicable, the requirement of the making of quarter
14monthly payments to the Department pursuant to this paragraph
15shall continue until the taxpayer's average monthly prepaid tax
16collections during the preceding 4 complete calendar quarters
17(excluding the month of highest liability and the month of
18lowest liability) is less than $19,000 or until such taxpayer's
19average monthly liability to the Department as computed for
20each calendar quarter of the 4 preceding complete calendar
21quarters is less than $20,000. If any such quarter monthly
22payment is not paid at the time or in the amount required, the
23taxpayer shall be liable for penalties and interest on such
24difference, except insofar as the taxpayer has previously made
25payments for that month in excess of the minimum payments
26previously due.

 

 

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1    If any payment provided for in this Section exceeds the
2taxpayer's liabilities under this Act, the Use Tax Act, the
3Service Occupation Tax Act and the Service Use Tax Act, as
4shown on an original monthly return, the Department shall, if
5requested by the taxpayer, issue to the taxpayer a credit
6memorandum no later than 30 days after the date of payment. The
7credit evidenced by such credit memorandum may be assigned by
8the taxpayer to a similar taxpayer under this Act, the Use Tax
9Act, the Service Occupation Tax Act or the Service Use Tax Act,
10in accordance with reasonable rules and regulations to be
11prescribed by the Department. If no such request is made, the
12taxpayer may credit such excess payment against tax liability
13subsequently to be remitted to the Department under this Act,
14the Use Tax Act, the Service Occupation Tax Act or the Service
15Use Tax Act, in accordance with reasonable rules and
16regulations prescribed by the Department. If the Department
17subsequently determined that all or any part of the credit
18taken was not actually due to the taxpayer, the taxpayer's 2.1%
19and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
20of the difference between the credit taken and that actually
21due, and that taxpayer shall be liable for penalties and
22interest on such difference.
23    If a retailer of motor fuel is entitled to a credit under
24Section 2d of this Act which exceeds the taxpayer's liability
25to the Department under this Act for the month which the
26taxpayer is filing a return, the Department shall issue the

 

 

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1taxpayer a credit memorandum for the excess.
2    Beginning January 1, 1990, each month the Department shall
3pay into the Local Government Tax Fund, a special fund in the
4State treasury which is hereby created, the net revenue
5realized for the preceding month from the 1% tax on sales of
6food for human consumption which is to be consumed off the
7premises where it is sold (other than alcoholic beverages, soft
8drinks and food which has been prepared for immediate
9consumption) and prescription and nonprescription medicines,
10drugs, medical appliances and insulin, urine testing
11materials, syringes and needles used by diabetics.
12    Beginning January 1, 1990, each month the Department shall
13pay into the County and Mass Transit District Fund, a special
14fund in the State treasury which is hereby created, 4% of the
15net revenue realized for the preceding month from the 6.25%
16general rate.
17    Beginning August 1, 2000, each month the Department shall
18pay into the County and Mass Transit District Fund 20% of the
19net revenue realized for the preceding month from the 1.25%
20rate on the selling price of motor fuel and gasohol. Beginning
21September 1, 2010, each month the Department shall pay into the
22County and Mass Transit District Fund 20% of the net revenue
23realized for the preceding month from the 1.25% rate on the
24selling price of sales tax holiday items.
25    Beginning January 1, 1990, each month the Department shall
26pay into the Local Government Tax Fund 16% of the net revenue

 

 

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1realized for the preceding month from the 6.25% general rate on
2the selling price of tangible personal property.
3    Beginning August 1, 2000, each month the Department shall
4pay into the Local Government Tax Fund 80% of the net revenue
5realized for the preceding month from the 1.25% rate on the
6selling price of motor fuel and gasohol. Beginning September 1,
72010, each month the Department shall pay into the Local
8Government Tax Fund 80% of the net revenue realized for the
9preceding month from the 1.25% rate on the selling price of
10sales tax holiday items.
11    Beginning October 1, 2009, each month the Department shall
12pay into the Capital Projects Fund an amount that is equal to
13an amount estimated by the Department to represent 80% of the
14net revenue realized for the preceding month from the sale of
15candy, grooming and hygiene products, and soft drinks that had
16been taxed at a rate of 1% prior to September 1, 2009 but that
17is now taxed at 6.25%.
18    Beginning on the first day of the first month to occur not
19less than 30 days after the effective date of this amendatory
20Act of the 98th General Assembly, each month the Department
21shall pay into the County and Mass Transit District Fund 20% of
22the net revenue realized for the preceding month from the 1.25%
23rate on the selling price of tangible personal property
24purchased from a business located in a Job Renewal Zone created
25under the Employ Illinois Job Renewal Act.
26    Beginning on the first day of the first month to occur not

 

 

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1less than 30 days after the effective date of this amendatory
2Act of the 98th General Assembly, each month the Department
3shall pay into the Local Government Tax Fund 80% of the net
4revenue realized for the preceding month from the 1.25% rate on
5the selling price of tangible personal property purchased from
6a business located in a Job Renewal Zone created under the
7Employ Illinois Job Renewal Act.
8    Beginning July 1, 2011, each month the Department shall pay
9into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
10realized for the preceding month from the 6.25% general rate on
11the selling price of sorbents used in Illinois in the process
12of sorbent injection as used to comply with the Environmental
13Protection Act or the federal Clean Air Act, but the total
14payment into the Clean Air Act (CAA) Permit Fund under this Act
15and the Use Tax Act shall not exceed $2,000,000 in any fiscal
16year.
17    Of the remainder of the moneys received by the Department
18pursuant to this Act, (a) 1.75% thereof shall be paid into the
19Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
20and after July 1, 1989, 3.8% thereof shall be paid into the
21Build Illinois Fund; provided, however, that if in any fiscal
22year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
23may be, of the moneys received by the Department and required
24to be paid into the Build Illinois Fund pursuant to this Act,
25Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
26Act, and Section 9 of the Service Occupation Tax Act, such Acts

 

 

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

 

 

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

 

 

HB3400- 110 -LRB098 08352 HLH 38457 b

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

 

 

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

 

 

HB3400- 112 -LRB098 08352 HLH 38457 b

12015179,000,000
22016189,000,000
32017199,000,000
42018210,000,000
52019221,000,000
62020233,000,000
72021246,000,000
82022260,000,000
92023275,000,000
102024 275,000,000
112025 275,000,000
122026 279,000,000
132027 292,000,000
142028 307,000,000
152029 322,000,000
162030 338,000,000
172031 350,000,000
182032 350,000,000
19and
20each fiscal year
21thereafter that bonds
22are outstanding under
23Section 13.2 of the
24Metropolitan Pier and
25Exposition Authority Act,
26but not after fiscal year 2060.

 

 

HB3400- 113 -LRB098 08352 HLH 38457 b

1    Beginning July 20, 1993 and in each month of each fiscal
2year thereafter, one-eighth of the amount requested in the
3certificate of the Chairman of the Metropolitan Pier and
4Exposition Authority for that fiscal year, less the amount
5deposited into the McCormick Place Expansion Project Fund by
6the State Treasurer in the respective month under subsection
7(g) of Section 13 of the Metropolitan Pier and Exposition
8Authority Act, plus cumulative deficiencies in the deposits
9required under this Section for previous months and years,
10shall be deposited into the McCormick Place Expansion Project
11Fund, until the full amount requested for the fiscal year, but
12not in excess of the amount specified above as "Total Deposit",
13has been deposited.
14    Subject to payment of amounts into the Build Illinois Fund
15and the McCormick Place Expansion Project Fund pursuant to the
16preceding paragraphs or in any amendments thereto hereafter
17enacted, beginning July 1, 1993, the Department shall each
18month pay into the Illinois Tax Increment Fund 0.27% of 80% of
19the net revenue realized for the preceding month from the 6.25%
20general rate on the selling price of tangible personal
21property.
22    Subject to payment of amounts into the Build Illinois Fund
23and the McCormick Place Expansion Project Fund pursuant to the
24preceding paragraphs or in any amendments thereto hereafter
25enacted, beginning with the receipt of the first report of
26taxes paid by an eligible business and continuing for a 25-year

 

 

HB3400- 114 -LRB098 08352 HLH 38457 b

1period, the Department shall each month pay into the Energy
2Infrastructure Fund 80% of the net revenue realized from the
36.25% general rate on the selling price of Illinois-mined coal
4that was sold to an eligible business. For purposes of this
5paragraph, the term "eligible business" means a new electric
6generating facility certified pursuant to Section 605-332 of
7the Department of Commerce and Economic Opportunity Law of the
8Civil Administrative Code of Illinois.
9    Of the remainder of the moneys received by the Department
10pursuant to this Act, 75% thereof shall be paid into the State
11Treasury and 25% shall be reserved in a special account and
12used only for the transfer to the Common School Fund as part of
13the monthly transfer from the General Revenue Fund in
14accordance with Section 8a of the State Finance Act.
15    The Department may, upon separate written notice to a
16taxpayer, require the taxpayer to prepare and file with the
17Department on a form prescribed by the Department within not
18less than 60 days after receipt of the notice an annual
19information return for the tax year specified in the notice.
20Such annual return to the Department shall include a statement
21of gross receipts as shown by the retailer's last Federal
22income tax return. If the total receipts of the business as
23reported in the Federal income tax return do not agree with the
24gross receipts reported to the Department of Revenue for the
25same period, the retailer shall attach to his annual return a
26schedule showing a reconciliation of the 2 amounts and the

 

 

HB3400- 115 -LRB098 08352 HLH 38457 b

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

 

 

HB3400- 116 -LRB098 08352 HLH 38457 b

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

 

 

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1sales, if the retailers who are affected do not make written
2objection to the Department to this arrangement.
3    Any person who promotes, organizes, provides retail
4selling space for concessionaires or other types of sellers at
5the Illinois State Fair, DuQuoin State Fair, county fairs,
6local fairs, art shows, flea markets and similar exhibitions or
7events, including any transient merchant as defined by Section
82 of the Transient Merchant Act of 1987, is required to file a
9report with the Department providing the name of the merchant's
10business, the name of the person or persons engaged in
11merchant's business, the permanent address and Illinois
12Retailers Occupation Tax Registration Number of the merchant,
13the dates and location of the event and other reasonable
14information that the Department may require. The report must be
15filed not later than the 20th day of the month next following
16the month during which the event with retail sales was held.
17Any person who fails to file a report required by this Section
18commits a business offense and is subject to a fine not to
19exceed $250.
20    Any person engaged in the business of selling tangible
21personal property at retail as a concessionaire or other type
22of seller at the Illinois State Fair, county fairs, art shows,
23flea markets and similar exhibitions or events, or any
24transient merchants, as defined by Section 2 of the Transient
25Merchant Act of 1987, may be required to make a daily report of
26the amount of such sales to the Department and to make a daily

 

 

HB3400- 118 -LRB098 08352 HLH 38457 b

1payment of the full amount of tax due. The Department shall
2impose this requirement when it finds that there is a
3significant risk of loss of revenue to the State at such an
4exhibition or event. Such a finding shall be based on evidence
5that a substantial number of concessionaires or other sellers
6who are not residents of Illinois will be engaging in the
7business of selling tangible personal property at retail at the
8exhibition or event, or other evidence of a significant risk of
9loss of revenue to the State. The Department shall notify
10concessionaires and other sellers affected by the imposition of
11this requirement. In the absence of notification by the
12Department, the concessionaires and other sellers shall file
13their returns as otherwise required in this Section.
14(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
15eff. 5-27-10; 96-1012, eff. 7-7-10; 97-95, eff. 7-12-11;
1697-333, eff. 8-12-11.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.