98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3720

 

Introduced , by Rep. Barbara Flynn Currie

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/6z-17  from Ch. 127, par. 142z-17
35 ILCS 5/901  from Ch. 120, par. 9-901
35 ILCS 105/9  from Ch. 120, par. 439.9
35 ILCS 110/9  from Ch. 120, par. 439.39
35 ILCS 115/9  from Ch. 120, par. 439.109
35 ILCS 120/3  from Ch. 120, par. 442
35 ILCS 630/6  from Ch. 120, par. 2006
35 ILCS 635/25

    Amends the State Finance Act, the Illinois Income Tax Act, the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, the Telecommunications Excise Tax Act, and the Telecommunications Infrastructure Maintenance Fee Act. Provides for transfers from certain special funds of the State to the Tax Compliance and Administration Fund. Provides that those moneys shall be used, subject to appropriation, to fund additional auditors and compliance personnel at the Department of Revenue. Effective on the first day of the first calendar month to occur not less than 30 days after this Act becomes law.


LRB098 14101 HLH 48967 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3720LRB098 14101 HLH 48967 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by changing
5Section 6z-17 as follows:
 
6    (30 ILCS 105/6z-17)  (from Ch. 127, par. 142z-17)
7    Sec. 6z-17. State and Local Sales Tax Reform Fund.
8    (a) After deducting the amount transferred to the Tax
9Compliance and Administration Fund under subsection (b), of Of
10the money paid into the State and Local Sales Tax Reform Fund:
11(i) subject to appropriation to the Department of Revenue,
12Municipalities having 1,000,000 or more inhabitants shall
13receive 20% and may expend such amount to fund and establish a
14program for developing and coordinating public and private
15resources targeted to meet the affordable housing needs of
16low-income and very low-income households within such
17municipality, (ii) 10% shall be transferred into the Regional
18Transportation Authority Occupation and Use Tax Replacement
19Fund, a special fund in the State treasury which is hereby
20created, (iii) until July 1, 2013, subject to appropriation to
21the Department of Transportation, the Madison County Mass
22Transit District shall receive .6%, and beginning on July 1,
232013, subject to appropriation to the Department of Revenue,

 

 

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10.6% shall be distributed each month out of the Fund to the
2Madison County Mass Transit District, (iv) the following
3amounts, plus any cumulative deficiency in such transfers for
4prior months, shall be transferred monthly into the Build
5Illinois Fund and credited to the Build Illinois Bond Account
6therein:
7Fiscal YearAmount
81990$2,700,000
919911,850,000
1019922,750,000
1119932,950,000
12    From Fiscal Year 1994 through Fiscal Year 2025 the transfer
13shall total $3,150,000 monthly, plus any cumulative deficiency
14in such transfers for prior months, and (v) the remainder of
15the money paid into the State and Local Sales Tax Reform Fund
16shall be transferred into the Local Government Distributive
17Fund and, except for municipalities with 1,000,000 or more
18inhabitants which shall receive no portion of such remainder,
19shall be distributed, subject to appropriation, in the manner
20provided by Section 2 of "An Act in relation to State revenue
21sharing with local government entities", approved July 31,
221969, as now or hereafter amended. Municipalities with more
23than 50,000 inhabitants according to the 1980 U.S. Census and
24located within the Metro East Mass Transit District receiving
25funds pursuant to provision (v) of this paragraph may expend
26such amounts to fund and establish a program for developing and

 

 

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1coordinating public and private resources targeted to meet the
2affordable housing needs of low-income and very low-income
3households within such municipality.
4    (b) On and after the effective date of this amendatory Act
5of the 98th General Assembly, each month the Department of
6Revenue shall certify to the State Comptroller and the State
7Treasurer, and the State Comptroller shall order transferred
8and the State Treasurer shall transfer from the State and Local
9Sales Tax Reform Fund to the Tax Compliance and Administration
10Fund, an amount equal to 1/12 of 5% of 20% of the cash receipts
11collected during the preceding fiscal year by the Audit Bureau
12of the Department of Revenue under the Use Tax Act, the Service
13Use Tax Act, the Service Occupation Tax Act, the Retailers'
14Occupation Tax Act, and associated local occupation and use
15taxes administered by the Department. The amount distributed
16under subsection (a) each month shall first be reduced by the
17amount transferred to the Tax Compliance and Administration
18Fund under this subsection (b). Moneys transferred to the Tax
19Compliance and Administration Fund under this subsection (b)
20shall be used, subject to appropriation, to fund additional
21auditors and compliance personnel at the Department of Revenue.
22(Source: P.A. 98-44, eff. 6-28-13.)
 
23    Section 10. The Illinois Income Tax Act is amended by
24changing Section 901 as follows:
 

 

 

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1    (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
2    Sec. 901. Collection Authority.
3    (a) In general.
4    The Department shall collect the taxes imposed by this Act.
5The Department shall collect certified past due child support
6amounts under Section 2505-650 of the Department of Revenue Law
7(20 ILCS 2505/2505-650). Except as provided in subsections (c),
8(e), (f), and (g), and (h) of this Section, money collected
9pursuant to subsections (a) and (b) of Section 201 of this Act
10shall be paid into the General Revenue Fund in the State
11treasury; money collected pursuant to subsections (c) and (d)
12of Section 201 of this Act shall be paid into the Personal
13Property Tax Replacement Fund, a special fund in the State
14Treasury; and money collected under Section 2505-650 of the
15Department of Revenue Law (20 ILCS 2505/2505-650) shall be paid
16into the Child Support Enforcement Trust Fund, a special fund
17outside the State Treasury, or to the State Disbursement Unit
18established under Section 10-26 of the Illinois Public Aid
19Code, as directed by the Department of Healthcare and Family
20Services.
21    (b) Local Government Distributive Fund.
22    Beginning August 1, 1969, and continuing through June 30,
231994, the Treasurer shall transfer each month from the General
24Revenue Fund to a special fund in the State treasury, to be
25known as the "Local Government Distributive Fund", an amount
26equal to 1/12 of the net revenue realized from the tax imposed

 

 

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1by subsections (a) and (b) of Section 201 of this Act during
2the preceding month. Beginning July 1, 1994, and continuing
3through June 30, 1995, the Treasurer shall transfer each month
4from the General Revenue Fund to the Local Government
5Distributive Fund an amount equal to 1/11 of the net revenue
6realized from the tax imposed by subsections (a) and (b) of
7Section 201 of this Act during the preceding month. Beginning
8July 1, 1995 and continuing through January 31, 2011, the
9Treasurer shall transfer each month from the General Revenue
10Fund to the Local Government Distributive Fund an amount equal
11to the net of (i) 1/10 of the net revenue realized from the tax
12imposed by subsections (a) and (b) of Section 201 of the
13Illinois Income Tax Act during the preceding month (ii) minus,
14beginning July 1, 2003 and ending June 30, 2004, $6,666,666,
15and beginning July 1, 2004, zero. Beginning February 1, 2011,
16and continuing through January 31, 2015, the Treasurer shall
17transfer each month from the General Revenue Fund to the Local
18Government Distributive Fund an amount equal to the sum of (i)
196% (10% of the ratio of the 3% individual income tax rate prior
20to 2011 to the 5% individual income tax rate after 2010) of the
21net revenue realized from the tax imposed by subsections (a)
22and (b) of Section 201 of this Act upon individuals, trusts,
23and estates during the preceding month and (ii) 6.86% (10% of
24the ratio of the 4.8% corporate income tax rate prior to 2011
25to the 7% corporate income tax rate after 2010) of the net
26revenue realized from the tax imposed by subsections (a) and

 

 

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1(b) of Section 201 of this Act upon corporations during the
2preceding month. Beginning February 1, 2015 and continuing
3through January 31, 2025, the Treasurer shall transfer each
4month from the General Revenue Fund to the Local Government
5Distributive Fund an amount equal to the sum of (i) 8% (10% of
6the ratio of the 3% individual income tax rate prior to 2011 to
7the 3.75% individual income tax rate after 2014) of the net
8revenue realized from the tax imposed by subsections (a) and
9(b) of Section 201 of this Act upon individuals, trusts, and
10estates during the preceding month and (ii) 9.14% (10% of the
11ratio of the 4.8% corporate income tax rate prior to 2011 to
12the 5.25% corporate income tax rate after 2014) of the net
13revenue realized from the tax imposed by subsections (a) and
14(b) of Section 201 of this Act upon corporations during the
15preceding month. Beginning February 1, 2025, the Treasurer
16shall transfer each month from the General Revenue Fund to the
17Local Government Distributive Fund an amount equal to the sum
18of (i) 9.23% (10% of the ratio of the 3% individual income tax
19rate prior to 2011 to the 3.25% individual income tax rate
20after 2024) of the net revenue realized from the tax imposed by
21subsections (a) and (b) of Section 201 of this Act upon
22individuals, trusts, and estates during the preceding month and
23(ii) 10% of the net revenue realized from the tax imposed by
24subsections (a) and (b) of Section 201 of this Act upon
25corporations during the preceding month. Net revenue realized
26for a month shall be defined as the revenue from the tax

 

 

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1imposed by subsections (a) and (b) of Section 201 of this Act
2which is deposited in the General Revenue Fund, the Education
3Assistance Fund, the Income Tax Surcharge Local Government
4Distributive Fund, the Fund for the Advancement of Education,
5and the Commitment to Human Services Fund during the month
6minus the amount paid out of the General Revenue Fund in State
7warrants during that same month as refunds to taxpayers for
8overpayment of liability under the tax imposed by subsections
9(a) and (b) of Section 201 of this Act.
10    (c) Deposits Into Income Tax Refund Fund.
11        (1) Beginning on January 1, 1989 and thereafter, the
12    Department shall deposit a percentage of the amounts
13    collected pursuant to subsections (a) and (b)(1), (2), and
14    (3), of Section 201 of this Act into a fund in the State
15    treasury known as the Income Tax Refund Fund. The
16    Department shall deposit 6% of such amounts during the
17    period beginning January 1, 1989 and ending on June 30,
18    1989. Beginning with State fiscal year 1990 and for each
19    fiscal year thereafter, the percentage deposited into the
20    Income Tax Refund Fund during a fiscal year shall be the
21    Annual Percentage. For fiscal years 1999 through 2001, the
22    Annual Percentage shall be 7.1%. For fiscal year 2003, the
23    Annual Percentage shall be 8%. For fiscal year 2004, the
24    Annual Percentage shall be 11.7%. Upon the effective date
25    of this amendatory Act of the 93rd General Assembly, the
26    Annual Percentage shall be 10% for fiscal year 2005. For

 

 

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1    fiscal year 2006, the Annual Percentage shall be 9.75%. For
2    fiscal year 2007, the Annual Percentage shall be 9.75%. For
3    fiscal year 2008, the Annual Percentage shall be 7.75%. For
4    fiscal year 2009, the Annual Percentage shall be 9.75%. For
5    fiscal year 2010, the Annual Percentage shall be 9.75%. For
6    fiscal year 2011, the Annual Percentage shall be 8.75%. For
7    fiscal year 2012, the Annual Percentage shall be 8.75%. For
8    fiscal year 2013, the Annual Percentage shall be 9.75%. For
9    fiscal year 2014, the Annual Percentage shall be 9.5%. For
10    all other fiscal years, the Annual Percentage shall be
11    calculated as a fraction, the numerator of which shall be
12    the amount of refunds approved for payment by the
13    Department during the preceding fiscal year as a result of
14    overpayment of tax liability under subsections (a) and
15    (b)(1), (2), and (3) of Section 201 of this Act plus the
16    amount of such refunds remaining approved but unpaid at the
17    end of the preceding fiscal year, minus the amounts
18    transferred into the Income Tax Refund Fund from the
19    Tobacco Settlement Recovery Fund, and the denominator of
20    which shall be the amounts which will be collected pursuant
21    to subsections (a) and (b)(1), (2), and (3) of Section 201
22    of this Act during the preceding fiscal year; except that
23    in State fiscal year 2002, the Annual Percentage shall in
24    no event exceed 7.6%. The Director of Revenue shall certify
25    the Annual Percentage to the Comptroller on the last
26    business day of the fiscal year immediately preceding the

 

 

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1    fiscal year for which it is to be effective.
2        (2) Beginning on January 1, 1989 and thereafter, the
3    Department shall deposit a percentage of the amounts
4    collected pursuant to subsections (a) and (b)(6), (7), and
5    (8), (c) and (d) of Section 201 of this Act into a fund in
6    the State treasury known as the Income Tax Refund Fund. The
7    Department shall deposit 18% of such amounts during the
8    period beginning January 1, 1989 and ending on June 30,
9    1989. Beginning with State fiscal year 1990 and for each
10    fiscal year thereafter, the percentage deposited into the
11    Income Tax Refund Fund during a fiscal year shall be the
12    Annual Percentage. For fiscal years 1999, 2000, and 2001,
13    the Annual Percentage shall be 19%. For fiscal year 2003,
14    the Annual Percentage shall be 27%. For fiscal year 2004,
15    the Annual Percentage shall be 32%. Upon the effective date
16    of this amendatory Act of the 93rd General Assembly, the
17    Annual Percentage shall be 24% for fiscal year 2005. For
18    fiscal year 2006, the Annual Percentage shall be 20%. For
19    fiscal year 2007, the Annual Percentage shall be 17.5%. For
20    fiscal year 2008, the Annual Percentage shall be 15.5%. For
21    fiscal year 2009, the Annual Percentage shall be 17.5%. For
22    fiscal year 2010, the Annual Percentage shall be 17.5%. For
23    fiscal year 2011, the Annual Percentage shall be 17.5%. For
24    fiscal year 2012, the Annual Percentage shall be 17.5%. For
25    fiscal year 2013, the Annual Percentage shall be 14%. For
26    fiscal year 2014, the Annual Percentage shall be 13.4%. For

 

 

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1    all other fiscal years, the Annual Percentage shall be
2    calculated as a fraction, the numerator of which shall be
3    the amount of refunds approved for payment by the
4    Department during the preceding fiscal year as a result of
5    overpayment of tax liability under subsections (a) and
6    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
7    Act plus the amount of such refunds remaining approved but
8    unpaid at the end of the preceding fiscal year, and the
9    denominator of which shall be the amounts which will be
10    collected pursuant to subsections (a) and (b)(6), (7), and
11    (8), (c) and (d) of Section 201 of this Act during the
12    preceding fiscal year; except that in State fiscal year
13    2002, the Annual Percentage shall in no event exceed 23%.
14    The Director of Revenue shall certify the Annual Percentage
15    to the Comptroller on the last business day of the fiscal
16    year immediately preceding the fiscal year for which it is
17    to be effective.
18        (3) The Comptroller shall order transferred and the
19    Treasurer shall transfer from the Tobacco Settlement
20    Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
21    in January, 2001, (ii) $35,000,000 in January, 2002, and
22    (iii) $35,000,000 in January, 2003.
23    (d) Expenditures from Income Tax Refund Fund.
24        (1) Beginning January 1, 1989, money in the Income Tax
25    Refund Fund shall be expended exclusively for the purpose
26    of paying refunds resulting from overpayment of tax

 

 

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1    liability under Section 201 of this Act, for paying rebates
2    under Section 208.1 in the event that the amounts in the
3    Homeowners' Tax Relief Fund are insufficient for that
4    purpose, and for making transfers pursuant to this
5    subsection (d).
6        (2) The Director shall order payment of refunds
7    resulting from overpayment of tax liability under Section
8    201 of this Act from the Income Tax Refund Fund only to the
9    extent that amounts collected pursuant to Section 201 of
10    this Act and transfers pursuant to this subsection (d) and
11    item (3) of subsection (c) have been deposited and retained
12    in the Fund.
13        (3) As soon as possible after the end of each fiscal
14    year, the Director shall order transferred and the State
15    Treasurer and State Comptroller shall transfer from the
16    Income Tax Refund Fund to the Personal Property Tax
17    Replacement Fund an amount, certified by the Director to
18    the Comptroller, equal to the excess of the amount
19    collected pursuant to subsections (c) and (d) of Section
20    201 of this Act deposited into the Income Tax Refund Fund
21    during the fiscal year over the amount of refunds resulting
22    from overpayment of tax liability under subsections (c) and
23    (d) of Section 201 of this Act paid from the Income Tax
24    Refund Fund during the fiscal year.
25        (4) As soon as possible after the end of each fiscal
26    year, the Director shall order transferred and the State

 

 

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1    Treasurer and State Comptroller shall transfer from the
2    Personal Property Tax Replacement Fund to the Income Tax
3    Refund Fund an amount, certified by the Director to the
4    Comptroller, equal to the excess of the amount of refunds
5    resulting from overpayment of tax liability under
6    subsections (c) and (d) of Section 201 of this Act paid
7    from the Income Tax Refund Fund during the fiscal year over
8    the amount collected pursuant to subsections (c) and (d) of
9    Section 201 of this Act deposited into the Income Tax
10    Refund Fund during the fiscal year.
11        (4.5) As soon as possible after the end of fiscal year
12    1999 and of each fiscal year thereafter, the Director shall
13    order transferred and the State Treasurer and State
14    Comptroller shall transfer from the Income Tax Refund Fund
15    to the General Revenue Fund any surplus remaining in the
16    Income Tax Refund Fund as of the end of such fiscal year;
17    excluding for fiscal years 2000, 2001, and 2002 amounts
18    attributable to transfers under item (3) of subsection (c)
19    less refunds resulting from the earned income tax credit.
20        (5) This Act shall constitute an irrevocable and
21    continuing appropriation from the Income Tax Refund Fund
22    for the purpose of paying refunds upon the order of the
23    Director in accordance with the provisions of this Section.
24    (e) Deposits into the Education Assistance Fund and the
25Income Tax Surcharge Local Government Distributive Fund.
26    On July 1, 1991, and thereafter, of the amounts collected

 

 

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1pursuant to subsections (a) and (b) of Section 201 of this Act,
2minus deposits into the Income Tax Refund Fund, the Department
3shall deposit 7.3% into the Education Assistance Fund in the
4State Treasury. Beginning July 1, 1991, and continuing through
5January 31, 1993, of the amounts collected pursuant to
6subsections (a) and (b) of Section 201 of the Illinois Income
7Tax Act, minus deposits into the Income Tax Refund Fund, the
8Department shall deposit 3.0% into the Income Tax Surcharge
9Local Government Distributive Fund in the State Treasury.
10Beginning February 1, 1993 and continuing through June 30,
111993, of the amounts collected pursuant to subsections (a) and
12(b) of Section 201 of the Illinois Income Tax Act, minus
13deposits into the Income Tax Refund Fund, the Department shall
14deposit 4.4% into the Income Tax Surcharge Local Government
15Distributive Fund in the State Treasury. Beginning July 1,
161993, and continuing through June 30, 1994, of the amounts
17collected under subsections (a) and (b) of Section 201 of this
18Act, minus deposits into the Income Tax Refund Fund, the
19Department shall deposit 1.475% into the Income Tax Surcharge
20Local Government Distributive Fund in the State Treasury.
21    (f) Deposits into the Fund for the Advancement of
22Education. Beginning February 1, 2015, the Department shall
23deposit the following portions of the revenue realized from the
24tax imposed upon individuals, trusts, and estates by
25subsections (a) and (b) of Section 201 of this Act during the
26preceding month, minus deposits into the Income Tax Refund

 

 

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1Fund, into the Fund for the Advancement of Education:
2        (1) beginning February 1, 2015, and prior to February
3    1, 2025, 1/30; and
4        (2) beginning February 1, 2025, 1/26.
5    If the rate of tax imposed by subsection (a) and (b) of
6Section 201 is reduced pursuant to Section 201.5 of this Act,
7the Department shall not make the deposits required by this
8subsection (f) on or after the effective date of the reduction.
9    (g) Deposits into the Commitment to Human Services Fund.
10Beginning February 1, 2015, the Department shall deposit the
11following portions of the revenue realized from the tax imposed
12upon individuals, trusts, and estates by subsections (a) and
13(b) of Section 201 of this Act during the preceding month,
14minus deposits into the Income Tax Refund Fund, into the
15Commitment to Human Services Fund:
16        (1) beginning February 1, 2015, and prior to February
17    1, 2025, 1/30; and
18        (2) beginning February 1, 2025, 1/26.
19    If the rate of tax imposed by subsection (a) and (b) of
20Section 201 is reduced pursuant to Section 201.5 of this Act,
21the Department shall not make the deposits required by this
22subsection (g) on or after the effective date of the reduction.
23    (h) Deposits into the Tax Compliance and Administration
24Fund. Beginning on the effective date of this amendatory Act of
25the 98th General Assembly, each month the Department shall pay
26into the Tax Compliance and Administration Fund, to be used,

 

 

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1subject to appropriation, to fund additional auditors and
2compliance personnel at the Department, an amount equal to 1/12
3of 5% of the cash receipts collected during the preceding
4fiscal year by the Audit Bureau of the Department from the tax
5imposed by subsections (a), (b), (c), and (d) of Section 201 of
6this Act, net of deposits into the Income Tax Refund Fund made
7from those cash receipts.
8(Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24,
9eff. 6-19-13.)
 
10    Section 15. The Use Tax Act is amended by changing Section
119 as follows:
 
12    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
13    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
14and trailers that are required to be registered with an agency
15of this State, each retailer required or authorized to collect
16the tax imposed by this Act shall pay to the Department the
17amount of such tax (except as otherwise provided) at the time
18when he is required to file his return for the period during
19which such tax was collected, less a discount of 2.1% prior to
20January 1, 1990, and 1.75% on and after January 1, 1990, or $5
21per calendar year, whichever is greater, which is allowed to
22reimburse the retailer for expenses incurred in collecting the
23tax, keeping records, preparing and filing returns, remitting
24the tax and supplying data to the Department on request. In the

 

 

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1case of retailers who report and pay the tax on a transaction
2by transaction basis, as provided in this Section, such
3discount shall be taken with each such tax remittance instead
4of when such retailer files his periodic return. The Department
5may disallow the discount for retailers whose certificate of
6registration is revoked at the time the return is filed, but
7only if the Department's decision to revoke the certificate of
8registration has become final. A retailer need not remit that
9part of any tax collected by him to the extent that he is
10required to remit and does remit the tax imposed by the
11Retailers' Occupation Tax Act, with respect to the sale of the
12same property.
13    Where such tangible personal property is sold under a
14conditional sales contract, or under any other form of sale
15wherein the payment of the principal sum, or a part thereof, is
16extended beyond the close of the period for which the return is
17filed, the retailer, in collecting the tax (except as to motor
18vehicles, watercraft, aircraft, and trailers that are required
19to be registered with an agency of this State), may collect for
20each tax return period, only the tax applicable to that part of
21the selling price actually received during such tax return
22period.
23    Except as provided in this Section, on or before the
24twentieth day of each calendar month, such retailer shall file
25a return for the preceding calendar month. Such return shall be
26filed on forms prescribed by the Department and shall furnish

 

 

HB3720- 17 -LRB098 14101 HLH 48967 b

1such information as the Department may reasonably require.
2    The Department may require returns to be filed on a
3quarterly basis. If so required, a return for each calendar
4quarter shall be filed on or before the twentieth day of the
5calendar month following the end of such calendar quarter. The
6taxpayer shall also file a return with the Department for each
7of the first two months of each calendar quarter, on or before
8the twentieth day of the following calendar month, stating:
9        1. The name of the seller;
10        2. The address of the principal place of business from
11    which he engages in the business of selling tangible
12    personal property at retail in this State;
13        3. The total amount of taxable receipts received by him
14    during the preceding calendar month from sales of tangible
15    personal property by him during such preceding calendar
16    month, including receipts from charge and time sales, but
17    less all deductions allowed by law;
18        4. The amount of credit provided in Section 2d of this
19    Act;
20        5. The amount of tax due;
21        5-5. The signature of the taxpayer; and
22        6. Such other reasonable information as the Department
23    may require.
24    If a taxpayer fails to sign a return within 30 days after
25the proper notice and demand for signature by the Department,
26the return shall be considered valid and any amount shown to be

 

 

HB3720- 18 -LRB098 14101 HLH 48967 b

1due on the return shall be deemed assessed.
2    Beginning October 1, 1993, a taxpayer who has an average
3monthly tax liability of $150,000 or more shall make all
4payments required by rules of the Department by electronic
5funds transfer. Beginning October 1, 1994, a taxpayer who has
6an average monthly tax liability of $100,000 or more shall make
7all payments required by rules of the Department by electronic
8funds transfer. Beginning October 1, 1995, a taxpayer who has
9an average monthly tax liability of $50,000 or more shall make
10all payments required by rules of the Department by electronic
11funds transfer. Beginning October 1, 2000, a taxpayer who has
12an annual tax liability of $200,000 or more shall make all
13payments required by rules of the Department by electronic
14funds transfer. The term "annual tax liability" shall be the
15sum of the taxpayer's liabilities under this Act, and under all
16other State and local occupation and use tax laws administered
17by the Department, for the immediately preceding calendar year.
18The term "average monthly tax liability" means the sum of the
19taxpayer's liabilities under this Act, and under all other
20State and local occupation and use tax laws administered by the
21Department, for the immediately preceding calendar year
22divided by 12. Beginning on October 1, 2002, a taxpayer who has
23a tax liability in the amount set forth in subsection (b) of
24Section 2505-210 of the Department of Revenue Law shall make
25all payments required by rules of the Department by electronic
26funds transfer.

 

 

HB3720- 19 -LRB098 14101 HLH 48967 b

1    Before August 1 of each year beginning in 1993, the
2Department shall notify all taxpayers required to make payments
3by electronic funds transfer. All taxpayers required to make
4payments by electronic funds transfer shall make those payments
5for a minimum of one year beginning on October 1.
6    Any taxpayer not required to make payments by electronic
7funds transfer may make payments by electronic funds transfer
8with the permission of the Department.
9    All taxpayers required to make payment by electronic funds
10transfer and any taxpayers authorized to voluntarily make
11payments by electronic funds transfer shall make those payments
12in the manner authorized by the Department.
13    The Department shall adopt such rules as are necessary to
14effectuate a program of electronic funds transfer and the
15requirements of this Section.
16    Before October 1, 2000, if the taxpayer's average monthly
17tax liability to the Department under this Act, the Retailers'
18Occupation Tax Act, the Service Occupation Tax Act, the Service
19Use Tax Act was $10,000 or more during the preceding 4 complete
20calendar quarters, he shall file a return with the Department
21each month by the 20th day of the month next following the
22month during which such tax liability is incurred and shall
23make payments to the Department on or before the 7th, 15th,
2422nd and last day of the month during which such liability is
25incurred. On and after October 1, 2000, if the taxpayer's
26average monthly tax liability to the Department under this Act,

 

 

HB3720- 20 -LRB098 14101 HLH 48967 b

1the Retailers' Occupation Tax Act, the Service Occupation Tax
2Act, and the Service Use Tax Act was $20,000 or more during the
3preceding 4 complete calendar quarters, he shall file a return
4with the Department each month by the 20th day of the month
5next following the month during which such tax liability is
6incurred and shall make payment to the Department on or before
7the 7th, 15th, 22nd and last day of the month during which such
8liability is incurred. If the month during which such tax
9liability is incurred began prior to January 1, 1985, each
10payment shall be in an amount equal to 1/4 of the taxpayer's
11actual liability for the month or an amount set by the
12Department not to exceed 1/4 of the average monthly liability
13of the taxpayer to the Department for the preceding 4 complete
14calendar quarters (excluding the month of highest liability and
15the month of lowest liability in such 4 quarter period). If the
16month during which such tax liability is incurred begins on or
17after January 1, 1985, and prior to January 1, 1987, each
18payment shall be in an amount equal to 22.5% of the taxpayer's
19actual liability for the month or 27.5% of the taxpayer's
20liability for the same calendar month of the preceding year. If
21the month during which such tax liability is incurred begins on
22or after January 1, 1987, and prior to January 1, 1988, each
23payment shall be in an amount equal to 22.5% of the taxpayer's
24actual liability for the month or 26.25% of the taxpayer's
25liability for the same calendar month of the preceding year. If
26the month during which such tax liability is incurred begins on

 

 

HB3720- 21 -LRB098 14101 HLH 48967 b

1or after January 1, 1988, and prior to January 1, 1989, or
2begins on or after January 1, 1996, each payment shall be in an
3amount equal to 22.5% of the taxpayer's actual liability for
4the month or 25% of the taxpayer's liability for the same
5calendar month of the preceding year. If the month during which
6such tax liability is incurred begins on or after January 1,
71989, and prior to January 1, 1996, each payment shall be in an
8amount equal to 22.5% of the taxpayer's actual liability for
9the month or 25% of the taxpayer's liability for the same
10calendar month of the preceding year or 100% of the taxpayer's
11actual liability for the quarter monthly reporting period. The
12amount of such quarter monthly payments shall be credited
13against the final tax liability of the taxpayer's return for
14that month. Before October 1, 2000, once applicable, the
15requirement of the making of quarter monthly payments to the
16Department shall continue until such taxpayer's average
17monthly liability to the Department during the preceding 4
18complete calendar quarters (excluding the month of highest
19liability and the month of lowest liability) is less than
20$9,000, or until such taxpayer's average monthly liability to
21the Department as computed for each calendar quarter of the 4
22preceding complete calendar quarter period is less than
23$10,000. However, if a taxpayer can show the Department that a
24substantial change in the taxpayer's business has occurred
25which causes the taxpayer to anticipate that his average
26monthly tax liability for the reasonably foreseeable future

 

 

HB3720- 22 -LRB098 14101 HLH 48967 b

1will fall below the $10,000 threshold stated above, then such
2taxpayer may petition the Department for change in such
3taxpayer's reporting status. On and after October 1, 2000, once
4applicable, the requirement of the making of quarter monthly
5payments to the Department shall continue until such taxpayer's
6average monthly liability to the Department during the
7preceding 4 complete calendar quarters (excluding the month of
8highest liability and the month of lowest liability) is less
9than $19,000 or until such taxpayer's average monthly liability
10to the Department as computed for each calendar quarter of the
114 preceding complete calendar quarter period is less than
12$20,000. However, if a taxpayer can show the Department that a
13substantial change in the taxpayer's business has occurred
14which causes the taxpayer to anticipate that his average
15monthly tax liability for the reasonably foreseeable future
16will fall below the $20,000 threshold stated above, then such
17taxpayer may petition the Department for a change in such
18taxpayer's reporting status. The Department shall change such
19taxpayer's reporting status unless it finds that such change is
20seasonal in nature and not likely to be long term. If any such
21quarter monthly payment is not paid at the time or in the
22amount required by this Section, then the taxpayer shall be
23liable for penalties and interest on the difference between the
24minimum amount due and the amount of such quarter monthly
25payment actually and timely paid, except insofar as the
26taxpayer has previously made payments for that month to the

 

 

HB3720- 23 -LRB098 14101 HLH 48967 b

1Department in excess of the minimum payments previously due as
2provided in this Section. The Department shall make reasonable
3rules and regulations to govern the quarter monthly payment
4amount and quarter monthly payment dates for taxpayers who file
5on other than a calendar monthly basis.
6    If any such payment provided for in this Section exceeds
7the taxpayer's liabilities under this Act, the Retailers'
8Occupation Tax Act, the Service Occupation Tax Act and the
9Service Use Tax Act, as shown by an original monthly return,
10the Department shall issue to the taxpayer a credit memorandum
11no later than 30 days after the date of payment, which
12memorandum may be submitted by the taxpayer to the Department
13in payment of tax liability subsequently to be remitted by the
14taxpayer to the Department or be assigned by the taxpayer to a
15similar taxpayer under this Act, the Retailers' Occupation Tax
16Act, the Service Occupation Tax Act or the Service Use Tax Act,
17in accordance with reasonable rules and regulations to be
18prescribed by the Department, except that if such excess
19payment is shown on an original monthly return and is made
20after December 31, 1986, no credit memorandum shall be issued,
21unless requested by the taxpayer. If no such request is made,
22the taxpayer may credit such excess payment against tax
23liability subsequently to be remitted by the taxpayer to the
24Department under this Act, the Retailers' Occupation Tax Act,
25the Service Occupation Tax Act or the Service Use Tax Act, in
26accordance with reasonable rules and regulations prescribed by

 

 

HB3720- 24 -LRB098 14101 HLH 48967 b

1the Department. If the Department subsequently determines that
2all or any part of the credit taken was not actually due to the
3taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
4be reduced by 2.1% or 1.75% of the difference between the
5credit taken and that actually due, and the taxpayer shall be
6liable for penalties and interest on such difference.
7    If the retailer is otherwise required to file a monthly
8return and if the retailer's average monthly tax liability to
9the Department does not exceed $200, the Department may
10authorize his returns to be filed on a quarter annual basis,
11with the return for January, February, and March of a given
12year being due by April 20 of such year; with the return for
13April, May and June of a given year being due by July 20 of such
14year; with the return for July, August and September of a given
15year being due by October 20 of such year, and with the return
16for October, November and December of a given year being due by
17January 20 of the following year.
18    If the retailer is otherwise required to file a monthly or
19quarterly return and if the retailer's average monthly tax
20liability to the Department does not exceed $50, the Department
21may authorize his returns to be filed on an annual basis, with
22the return for a given year being due by January 20 of the
23following year.
24    Such quarter annual and annual returns, as to form and
25substance, shall be subject to the same requirements as monthly
26returns.

 

 

HB3720- 25 -LRB098 14101 HLH 48967 b

1    Notwithstanding any other provision in this Act concerning
2the time within which a retailer may file his return, in the
3case of any retailer who ceases to engage in a kind of business
4which makes him responsible for filing returns under this Act,
5such retailer shall file a final return under this Act with the
6Department not more than one month after discontinuing such
7business.
8    In addition, with respect to motor vehicles, watercraft,
9aircraft, and trailers that are required to be registered with
10an agency of this State, every retailer selling this kind of
11tangible personal property shall file, with the Department,
12upon a form to be prescribed and supplied by the Department, a
13separate return for each such item of tangible personal
14property which the retailer sells, except that if, in the same
15transaction, (i) a retailer of aircraft, watercraft, motor
16vehicles or trailers transfers more than one aircraft,
17watercraft, motor vehicle or trailer to another aircraft,
18watercraft, motor vehicle or trailer retailer for the purpose
19of resale or (ii) a retailer of aircraft, watercraft, motor
20vehicles, or trailers transfers more than one aircraft,
21watercraft, motor vehicle, or trailer to a purchaser for use as
22a qualifying rolling stock as provided in Section 3-55 of this
23Act, then that seller may report the transfer of all the
24aircraft, watercraft, motor vehicles or trailers involved in
25that transaction to the Department on the same uniform
26invoice-transaction reporting return form. For purposes of

 

 

HB3720- 26 -LRB098 14101 HLH 48967 b

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

 

 

HB3720- 27 -LRB098 14101 HLH 48967 b

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

 

 

HB3720- 28 -LRB098 14101 HLH 48967 b

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

 

 

HB3720- 29 -LRB098 14101 HLH 48967 b

1paid the tax to the retailer, such user may certify to the fact
2of such delay by the retailer, and may (upon the Department
3being satisfied of the truth of such certification) transmit
4the information required by the transaction reporting return
5and the remittance for tax or proof of exemption directly to
6the Department and obtain his tax receipt or exemption
7determination, in which event the transaction reporting return
8and tax remittance (if a tax payment was required) shall be
9credited by the Department to the proper retailer's account
10with the Department, but without the 2.1% or 1.75% discount
11provided for in this Section being allowed. When the user pays
12the tax directly to the Department, he shall pay the tax in the
13same amount and in the same form in which it would be remitted
14if the tax had been remitted to the Department by the retailer.
15    Where a retailer collects the tax with respect to the
16selling price of tangible personal property which he sells and
17the purchaser thereafter returns such tangible personal
18property and the retailer refunds the selling price thereof to
19the purchaser, such retailer shall also refund, to the
20purchaser, the tax so collected from the purchaser. When filing
21his return for the period in which he refunds such tax to the
22purchaser, the retailer may deduct the amount of the tax so
23refunded by him to the purchaser from any other use tax which
24such retailer may be required to pay or remit to the
25Department, as shown by such return, if the amount of the tax
26to be deducted was previously remitted to the Department by

 

 

HB3720- 30 -LRB098 14101 HLH 48967 b

1such retailer. If the retailer has not previously remitted the
2amount of such tax to the Department, he is entitled to no
3deduction under this Act upon refunding such tax to the
4purchaser.
5    Any retailer filing a return under this Section shall also
6include (for the purpose of paying tax thereon) the total tax
7covered by such return upon the selling price of tangible
8personal property purchased by him at retail from a retailer,
9but as to which the tax imposed by this Act was not collected
10from the retailer filing such return, and such retailer shall
11remit the amount of such tax to the Department when filing such
12return.
13    If experience indicates such action to be practicable, the
14Department may prescribe and furnish a combination or joint
15return which will enable retailers, who are required to file
16returns hereunder and also under the Retailers' Occupation Tax
17Act, to furnish all the return information required by both
18Acts on the one form.
19    Where the retailer has more than one business registered
20with the Department under separate registration under this Act,
21such retailer may not file each return that is due as a single
22return covering all such registered businesses, but shall file
23separate returns for each such registered business.
24    Beginning January 1, 1990, each month the Department shall
25pay into the State and Local Sales Tax Reform Fund, a special
26fund in the State Treasury which is hereby created, the net

 

 

HB3720- 31 -LRB098 14101 HLH 48967 b

1revenue realized for the preceding month from the 1% tax on
2sales of food for human consumption which is to be consumed off
3the premises where it is sold (other than alcoholic beverages,
4soft drinks and food which has been prepared for immediate
5consumption) and prescription and nonprescription medicines,
6drugs, medical appliances and insulin, urine testing
7materials, syringes and needles used by diabetics.
8    Beginning January 1, 1990, each month the Department shall
9pay into the County and Mass Transit District Fund 4% of the
10net revenue realized for the preceding month from the 6.25%
11general rate on the selling price of tangible personal property
12which is purchased outside Illinois at retail from a retailer
13and which is titled or registered by an agency of this State's
14government.
15    Beginning January 1, 1990, each month the Department shall
16pay into the State and Local Sales Tax Reform Fund, a special
17fund in the State Treasury, 20% of the net revenue realized for
18the preceding month from the 6.25% general rate on the selling
19price of tangible personal property, other than tangible
20personal property which is purchased outside Illinois at retail
21from a retailer and which is titled or registered by an agency
22of this State's government.
23    Beginning August 1, 2000, each month the Department shall
24pay into the State and Local Sales Tax Reform Fund 100% of the
25net revenue realized for the preceding month from the 1.25%
26rate on the selling price of motor fuel and gasohol. Beginning

 

 

HB3720- 32 -LRB098 14101 HLH 48967 b

1September 1, 2010, each month the Department shall pay into the
2State and Local Sales Tax Reform Fund 100% of the net revenue
3realized for the preceding month from the 1.25% rate on the
4selling price of sales tax holiday items.
5    Beginning January 1, 1990, each month the Department shall
6pay into the Local Government Tax Fund 16% of the net revenue
7realized for the preceding month from the 6.25% general rate on
8the selling price of tangible personal property which is
9purchased outside Illinois at retail from a retailer and which
10is titled or registered by an agency of this State's
11government.
12    Beginning October 1, 2009, each month the Department shall
13pay into the Capital Projects Fund an amount that is equal to
14an amount estimated by the Department to represent 80% of the
15net revenue realized for the preceding month from the sale of
16candy, grooming and hygiene products, and soft drinks that had
17been taxed at a rate of 1% prior to September 1, 2009 but that
18are is now taxed at 6.25%.
19    Beginning July 1, 2011, each month the Department shall pay
20into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
21realized for the preceding month from the 6.25% general rate on
22the selling price of sorbents used in Illinois in the process
23of sorbent injection as used to comply with the Environmental
24Protection Act or the federal Clean Air Act, but the total
25payment into the Clean Air Act (CAA) Permit Fund under this Act
26and the Retailers' Occupation Tax Act shall not exceed

 

 

HB3720- 33 -LRB098 14101 HLH 48967 b

1$2,000,000 in any fiscal year.
2    Beginning July 1, 2013, each month the Department shall pay
3into the Underground Storage Tank Fund from the proceeds
4collected under this Act, the Service Use Tax Act, the Service
5Occupation Tax Act, and the Retailers' Occupation Tax Act an
6amount equal to the average monthly deficit in the Underground
7Storage Tank Fund during the prior year, as certified annually
8by the Illinois Environmental Protection Agency, but the total
9payment into the Underground Storage Tank Fund under this Act,
10the Service Use Tax Act, the Service Occupation Tax Act, and
11the Retailers' Occupation Tax Act shall not exceed $18,000,000
12in any State fiscal year. As used in this paragraph, the
13"average monthly deficit" shall be equal to the difference
14between the average monthly claims for payment by the fund and
15the average monthly revenues deposited into the fund, excluding
16payments made pursuant to this paragraph.
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 Section 3
25of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
26Act, Section 9 of the Service Use Tax Act, and Section 9 of the

 

 

HB3720- 34 -LRB098 14101 HLH 48967 b

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

 

 

HB3720- 35 -LRB098 14101 HLH 48967 b

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

 

 

HB3720- 36 -LRB098 14101 HLH 48967 b

1pursuant to this Act and required to be deposited into the
2Build Illinois Fund are subject to the pledge, claim and charge
3set forth in Section 12 of the Build Illinois Bond Act.
4    Subject to payment of amounts into the Build Illinois Fund
5as provided in the preceding paragraph or in any amendment
6thereto hereafter enacted, the following specified monthly
7installment of the amount requested in the certificate of the
8Chairman of the Metropolitan Pier and Exposition Authority
9provided under Section 8.25f of the State Finance Act, but not
10in excess of the sums designated as "Total Deposit", shall be
11deposited in the aggregate from collections under Section 9 of
12the Use Tax Act, Section 9 of the Service Use Tax Act, Section
139 of the Service Occupation Tax Act, and Section 3 of the
14Retailers' Occupation Tax Act into the McCormick Place
15Expansion Project Fund in the specified fiscal years.
16Fiscal YearTotal Deposit
171993         $0
181994 53,000,000
191995 58,000,000
201996 61,000,000
211997 64,000,000
221998 68,000,000
231999 71,000,000
242000 75,000,000
252001 80,000,000
262002 93,000,000

 

 

HB3720- 37 -LRB098 14101 HLH 48967 b

12003 99,000,000
22004103,000,000
32005108,000,000
42006113,000,000
52007119,000,000
62008126,000,000
72009132,000,000
82010139,000,000
92011146,000,000
102012153,000,000
112013161,000,000
122014170,000,000
132015179,000,000
142016189,000,000
152017199,000,000
162018210,000,000
172019221,000,000
182020233,000,000
192021246,000,000
202022260,000,000
212023275,000,000
222024 275,000,000
232025 275,000,000
242026 279,000,000
252027 292,000,000
262028 307,000,000

 

 

HB3720- 38 -LRB098 14101 HLH 48967 b

12029 322,000,000
22030 338,000,000
32031 350,000,000
42032 350,000,000
5and
6each fiscal year
7thereafter that bonds
8are outstanding under
9Section 13.2 of the
10Metropolitan Pier and
11Exposition Authority Act,
12but not after fiscal year 2060.
13    Beginning July 20, 1993 and in each month of each fiscal
14year thereafter, one-eighth of the amount requested in the
15certificate of the Chairman of the Metropolitan Pier and
16Exposition Authority for that fiscal year, less the amount
17deposited into the McCormick Place Expansion Project Fund by
18the State Treasurer in the respective month under subsection
19(g) of Section 13 of the Metropolitan Pier and Exposition
20Authority Act, plus cumulative deficiencies in the deposits
21required under this Section for previous months and years,
22shall be deposited into the McCormick Place Expansion Project
23Fund, until the full amount requested for the fiscal year, but
24not in excess of the amount specified above as "Total Deposit",
25has been deposited.
26    Subject to payment of amounts into the Build Illinois Fund

 

 

HB3720- 39 -LRB098 14101 HLH 48967 b

1and the McCormick Place Expansion Project Fund pursuant to the
2preceding paragraphs or in any amendments thereto hereafter
3enacted, beginning July 1, 1993 and ending on September 30,
42013, the Department shall each month pay into the Illinois Tax
5Increment Fund 0.27% of 80% of the net revenue realized for the
6preceding month from the 6.25% general rate on the selling
7price of tangible personal property.
8    Subject to payment of amounts into the Build Illinois Fund
9and the McCormick Place Expansion Project Fund pursuant to the
10preceding paragraphs or in any amendments thereto hereafter
11enacted, beginning with the receipt of the first report of
12taxes paid by an eligible business and continuing for a 25-year
13period, the Department shall each month pay into the Energy
14Infrastructure Fund 80% of the net revenue realized from the
156.25% general rate on the selling price of Illinois-mined coal
16that was sold to an eligible business. For purposes of this
17paragraph, the term "eligible business" means a new electric
18generating facility certified pursuant to Section 605-332 of
19the Department of Commerce and Economic Opportunity Law of the
20Civil Administrative Code of Illinois.
21    Subject to payment of amounts into the Build Illinois Fund,
22the McCormick Place Expansion Project Fund, the Illinois Tax
23Increment Fund, and the Energy Infrastructure Fund pursuant to
24the preceding paragraphs or in any amendments to this Section
25hereafter enacted, beginning on the effective date of this
26amendatory Act of the 98th General Assembly, each month, from

 

 

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1the collections made under Section 9 of the Use Tax Act,
2Section 9 of the Service Use Tax Act, Section 9 of the Service
3Occupation Tax Act, and Section 3 of the Retailers' Occupation
4Tax Act, the Department shall pay into the Tax Compliance and
5Administration Fund, to be used, subject to appropriation, to
6fund additional auditors and compliance personnel at the
7Department of Revenue, an amount equal to 1/12 of 5% of 80% of
8the cash receipts collected during the preceding fiscal year by
9the Audit Bureau of the Department under the Use Tax Act, the
10Service Use Tax Act, the Service Occupation Tax Act, the
11Retailers' Occupation Tax Act, and associated local occupation
12and use taxes administered by the Department.
13    Of the remainder of the moneys received by the Department
14pursuant to this Act, 75% thereof shall be paid into the State
15Treasury and 25% shall be reserved in a special account and
16used only for the transfer to the Common School Fund as part of
17the monthly transfer from the General Revenue Fund in
18accordance with Section 8a of the State Finance Act.
19    As soon as possible after the first day of each month, upon
20certification of the Department of Revenue, the Comptroller
21shall order transferred and the Treasurer shall transfer from
22the General Revenue Fund to the Motor Fuel Tax Fund an amount
23equal to 1.7% of 80% of the net revenue realized under this Act
24for the second preceding month. Beginning April 1, 2000, this
25transfer is no longer required and shall not be made.
26    Net revenue realized for a month shall be the revenue

 

 

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1collected by the State pursuant to this Act, less the amount
2paid out during that month as refunds to taxpayers for
3overpayment of liability.
4    For greater simplicity of administration, manufacturers,
5importers and wholesalers whose products are sold at retail in
6Illinois by numerous retailers, and who wish to do so, may
7assume the responsibility for accounting and paying to the
8Department all tax accruing under this Act with respect to such
9sales, if the retailers who are affected do not make written
10objection to the Department to this arrangement.
11(Source: P.A. 97-95, eff. 7-12-11; 97-333, eff. 8-12-11; 98-24,
12eff. 6-19-13; 98-109, eff. 7-25-13; 98-496, eff. 1-1-14;
13revised 9-9-13.)
 
14    Section 20. The Service Use Tax Act is amended by changing
15Section 9 as follows:
 
16    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
17    Sec. 9. Each serviceman required or authorized to collect
18the tax herein imposed shall pay to the Department the amount
19of such tax (except as otherwise provided) at the time when he
20is required to file his return for the period during which such
21tax was collected, less a discount of 2.1% prior to January 1,
221990 and 1.75% on and after January 1, 1990, or $5 per calendar
23year, whichever is greater, which is allowed to reimburse the
24serviceman for expenses incurred in collecting the tax, keeping

 

 

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1records, preparing and filing returns, remitting the tax and
2supplying data to the Department on request. The Department may
3disallow the discount for servicemen whose certificate of
4registration is revoked at the time the return is filed, but
5only if the Department's decision to revoke the certificate of
6registration has become final. A serviceman need not remit that
7part of any tax collected by him to the extent that he is
8required to pay and does pay the tax imposed by the Service
9Occupation Tax Act with respect to his sale of service
10involving the incidental transfer by him of the same property.
11    Except as provided hereinafter in this Section, on or
12before the twentieth day of each calendar month, such
13serviceman shall file a return for the preceding calendar month
14in accordance with reasonable Rules and Regulations to be
15promulgated by the Department. Such return shall be filed on a
16form prescribed by the Department and shall contain such
17information as the Department may reasonably require.
18    The Department may require returns to be filed on a
19quarterly basis. If so required, a return for each calendar
20quarter shall be filed on or before the twentieth day of the
21calendar month following the end of such calendar quarter. The
22taxpayer shall also file a return with the Department for each
23of the first two months of each calendar quarter, on or before
24the twentieth day of the following calendar month, stating:
25        1. The name of the seller;
26        2. The address of the principal place of business from

 

 

HB3720- 43 -LRB098 14101 HLH 48967 b

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

 

 

HB3720- 44 -LRB098 14101 HLH 48967 b

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

 

 

HB3720- 45 -LRB098 14101 HLH 48967 b

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

 

 

HB3720- 46 -LRB098 14101 HLH 48967 b

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

 

 

HB3720- 47 -LRB098 14101 HLH 48967 b

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

 

 

HB3720- 48 -LRB098 14101 HLH 48967 b

1Illinois at retail from a retailer and which is titled or
2registered by an agency of this State's government.
3    Beginning August 1, 2000, each month the Department shall
4pay into the State and Local Sales Tax Reform Fund 100% of the
5net revenue realized for the preceding month from the 1.25%
6rate on the selling price of motor fuel and gasohol.
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
13are is now taxed at 6.25%.
14    Beginning July 1, 2013, each month the Department shall pay
15into the Underground Storage Tank Fund from the proceeds
16collected under this Act, the Use Tax Act, the Service
17Occupation Tax Act, and the Retailers' Occupation Tax Act an
18amount equal to the average monthly deficit in the Underground
19Storage Tank Fund during the prior year, as certified annually
20by the Illinois Environmental Protection Agency, but the total
21payment into the Underground Storage Tank Fund under this Act,
22the Use Tax Act, the Service Occupation Tax Act, and the
23Retailers' Occupation Tax Act shall not exceed $18,000,000 in
24any State fiscal year. As used in this paragraph, the "average
25monthly deficit" shall be equal to the difference between the
26average monthly claims for payment by the fund and the average

 

 

HB3720- 49 -LRB098 14101 HLH 48967 b

1monthly revenues deposited into the fund, excluding payments
2made pursuant to this paragraph.
3    Of the remainder of the moneys received by the Department
4pursuant to this Act, (a) 1.75% thereof shall be paid into the
5Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
6and after July 1, 1989, 3.8% thereof shall be paid into the
7Build Illinois Fund; provided, however, that if in any fiscal
8year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
9may be, of the moneys received by the Department and required
10to be paid into the Build Illinois Fund pursuant to Section 3
11of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
12Act, Section 9 of the Service Use Tax Act, and Section 9 of the
13Service Occupation Tax Act, such Acts being hereinafter called
14the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
15may be, of moneys being hereinafter called the "Tax Act
16Amount", and (2) the amount transferred to the Build Illinois
17Fund from the State and Local Sales Tax Reform Fund shall be
18less than the Annual Specified Amount (as defined in Section 3
19of the Retailers' Occupation Tax Act), an amount equal to the
20difference shall be immediately paid into the Build Illinois
21Fund from other moneys received by the Department pursuant to
22the Tax Acts; and further provided, that if on the last
23business day of any month the sum of (1) the Tax Act Amount
24required to be deposited into the Build Illinois Bond Account
25in the Build Illinois Fund during such month and (2) the amount
26transferred during such month to the Build Illinois Fund from

 

 

HB3720- 50 -LRB098 14101 HLH 48967 b

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

 

 

HB3720- 51 -LRB098 14101 HLH 48967 b

1than the amount required to be transferred in such month from
2the Build Illinois Bond Account to the Build Illinois Bond
3Retirement and Interest Fund pursuant to Section 13 of the
4Build Illinois Bond Act, an amount equal to such deficiency
5shall be immediately paid from other moneys received by the
6Department pursuant to the Tax Acts to the Build Illinois Fund;
7provided, however, that any amounts paid to the Build Illinois
8Fund in any fiscal year pursuant to this sentence shall be
9deemed to constitute payments pursuant to clause (b) of the
10preceding sentence and shall reduce the amount otherwise
11payable for such fiscal year pursuant to clause (b) of the
12preceding sentence. The moneys received by the Department
13pursuant to this Act and required to be deposited into the
14Build Illinois Fund are subject to the pledge, claim and charge
15set forth in Section 12 of the Build Illinois Bond Act.
16    Subject to payment of amounts into the Build Illinois Fund
17as provided in the preceding paragraph or in any amendment
18thereto hereafter enacted, the following specified monthly
19installment of the amount requested in the certificate of the
20Chairman of the Metropolitan Pier and Exposition Authority
21provided under Section 8.25f of the State Finance Act, but not
22in excess of the sums designated as "Total Deposit", shall be
23deposited in the aggregate from collections under Section 9 of
24the Use Tax Act, Section 9 of the Service Use Tax Act, Section
259 of the Service Occupation Tax Act, and Section 3 of the
26Retailers' Occupation Tax Act into the McCormick Place

 

 

HB3720- 52 -LRB098 14101 HLH 48967 b

1Expansion Project Fund in the specified fiscal years.
2Fiscal YearTotal Deposit
31993         $0
41994 53,000,000
51995 58,000,000
61996 61,000,000
71997 64,000,000
81998 68,000,000
91999 71,000,000
102000 75,000,000
112001 80,000,000
122002 93,000,000
132003 99,000,000
142004103,000,000
152005108,000,000
162006113,000,000
172007119,000,000
182008126,000,000
192009132,000,000
202010139,000,000
212011146,000,000
222012153,000,000
232013161,000,000
242014170,000,000
252015179,000,000

 

 

HB3720- 53 -LRB098 14101 HLH 48967 b

12016189,000,000
22017199,000,000
32018210,000,000
42019221,000,000
52020233,000,000
62021246,000,000
72022260,000,000
82023275,000,000
92024 275,000,000
102025 275,000,000
112026 279,000,000
122027 292,000,000
132028 307,000,000
142029 322,000,000
152030 338,000,000
162031 350,000,000
172032 350,000,000
18and
19each fiscal year
20thereafter that bonds
21are outstanding under
22Section 13.2 of the
23Metropolitan Pier and
24Exposition Authority Act,
25but not after fiscal year 2060.
26    Beginning July 20, 1993 and in each month of each fiscal

 

 

HB3720- 54 -LRB098 14101 HLH 48967 b

1year thereafter, one-eighth of the amount requested in the
2certificate of the Chairman of the Metropolitan Pier and
3Exposition Authority for that fiscal year, less the amount
4deposited into the McCormick Place Expansion Project Fund by
5the State Treasurer in the respective month under subsection
6(g) of Section 13 of the Metropolitan Pier and Exposition
7Authority Act, plus cumulative deficiencies in the deposits
8required under this Section for previous months and years,
9shall be deposited into the McCormick Place Expansion Project
10Fund, until the full amount requested for the fiscal year, but
11not in excess of the amount specified above as "Total Deposit",
12has been deposited.
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 July 1, 1993 and ending on September 30,
172013, the Department shall each month pay into the Illinois Tax
18Increment Fund 0.27% of 80% of the net revenue realized for the
19preceding month from the 6.25% general rate on the selling
20price of tangible personal property.
21    Subject to payment of amounts into the Build Illinois Fund
22and the McCormick Place Expansion Project Fund pursuant to the
23preceding paragraphs or in any amendments thereto hereafter
24enacted, beginning with the receipt of the first report of
25taxes paid by an eligible business and continuing for a 25-year
26period, the Department shall each month pay into the Energy

 

 

HB3720- 55 -LRB098 14101 HLH 48967 b

1Infrastructure Fund 80% of the net revenue realized from the
26.25% general rate on the selling price of Illinois-mined coal
3that was sold to an eligible business. For purposes of this
4paragraph, the term "eligible business" means a new electric
5generating facility certified pursuant to Section 605-332 of
6the Department of Commerce and Economic Opportunity Law of the
7Civil Administrative Code of Illinois.
8    Subject to payment of amounts into the Build Illinois Fund,
9the McCormick Place Expansion Project Fund, the Illinois Tax
10Increment Fund, and the Energy Infrastructure Fund pursuant to
11the preceding paragraphs or in any amendments to this Section
12hereafter enacted, beginning on the effective date of this
13amendatory Act of the 98th General Assembly, each month, from
14the collections made under Section 9 of the Use Tax Act,
15Section 9 of the Service Use Tax Act, Section 9 of the Service
16Occupation Tax Act, and Section 3 of the Retailers' Occupation
17Tax Act, the Department shall pay into the Tax Compliance and
18Administration Fund, to be used, subject to appropriation, to
19fund additional auditors and compliance personnel at the
20Department of Revenue, an amount equal to 1/12 of 5% of 80% of
21the cash receipts collected during the preceding fiscal year by
22the Audit Bureau of the Department under the Use Tax Act, the
23Service Use Tax Act, the Service Occupation Tax Act, the
24Retailers' Occupation Tax Act, and associated local occupation
25and use taxes administered by the Department.
26    Of the remainder of the moneys received by the Department

 

 

HB3720- 56 -LRB098 14101 HLH 48967 b

1pursuant to this Act, 75% thereof shall be paid into the
2General Revenue Fund of the State Treasury and 25% shall be
3reserved in a special account and used only for the transfer to
4the Common School Fund as part of the monthly transfer from the
5General Revenue Fund in accordance with Section 8a of the State
6Finance 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(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
1998-298, eff. 8-9-13; 98-496, eff. 1-1-14; revised 9-9-13.)
 
20    Section 25. The Service Occupation Tax Act is amended by
21changing Section 9 as follows:
 
22    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
23    Sec. 9. Each serviceman required or authorized to collect
24the tax herein imposed shall pay to the Department the amount

 

 

HB3720- 57 -LRB098 14101 HLH 48967 b

1of such tax at the time when he is required to file his return
2for the period during which such tax was collectible, less a
3discount of 2.1% prior to January 1, 1990, and 1.75% on and
4after January 1, 1990, or $5 per calendar year, whichever is
5greater, which is allowed to reimburse the serviceman for
6expenses incurred in collecting the tax, keeping records,
7preparing and filing returns, remitting the tax and supplying
8data to the Department on request. The Department may disallow
9the discount for servicemen whose certificate of registration
10is revoked at the time the return is filed, but only if the
11Department's decision to revoke the certificate of
12registration has become final.
13    Where such tangible personal property is sold under a
14conditional sales contract, or under any other form of sale
15wherein the payment of the principal sum, or a part thereof, is
16extended beyond the close of the period for which the return is
17filed, the serviceman, in collecting the tax may collect, for
18each tax return period, only the tax applicable to the part of
19the selling price actually received during such tax return
20period.
21    Except as provided hereinafter in this Section, on or
22before the twentieth day of each calendar month, such
23serviceman shall file a return for the preceding calendar month
24in accordance with reasonable rules and regulations to be
25promulgated by the Department of Revenue. Such return shall be
26filed on a form prescribed by the Department and shall contain

 

 

HB3720- 58 -LRB098 14101 HLH 48967 b

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

 

 

HB3720- 59 -LRB098 14101 HLH 48967 b

12004 a serviceman may accept a Manufacturer's Purchase Credit
2certification from a purchaser in satisfaction of Service Use
3Tax as provided in Section 3-70 of the Service Use Tax Act if
4the purchaser provides the appropriate documentation as
5required by Section 3-70 of the Service Use Tax Act. A
6Manufacturer's Purchase Credit certification, accepted prior
7to October 1, 2003 or on or after September 1, 2004 by a
8serviceman as provided in Section 3-70 of the Service Use Tax
9Act, may be used by that serviceman to satisfy Service
10Occupation Tax liability in the amount claimed in the
11certification, not to exceed 6.25% of the receipts subject to
12tax from a qualifying purchase. A Manufacturer's Purchase
13Credit reported on any original or amended return filed under
14this Act after October 20, 2003 for reporting periods prior to
15September 1, 2004 shall be disallowed. Manufacturer's Purchase
16Credit reported on annual returns due on or after January 1,
172005 will be disallowed for periods prior to September 1, 2004.
18No Manufacturer's Purchase Credit may be used after September
1930, 2003 through August 31, 2004 to satisfy any tax liability
20imposed under this Act, including any audit liability.
21    If the serviceman's average monthly tax liability to the
22Department does not exceed $200, the Department may authorize
23his returns to be filed on a quarter annual basis, with the
24return for January, February and March of a given year being
25due by April 20 of such year; with the return for April, May
26and June of a given year being due by July 20 of such year; with

 

 

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1the return for July, August and September of a given year being
2due by October 20 of such year, and with the return for
3October, November and December of a given year being due by
4January 20 of the following year.
5    If the serviceman's average monthly tax liability to the
6Department does not exceed $50, the Department may authorize
7his returns to be filed on an annual basis, with the return for
8a given year being due by January 20 of the following year.
9    Such quarter annual and annual returns, as to form and
10substance, shall be subject to the same requirements as monthly
11returns.
12    Notwithstanding any other provision in this Act concerning
13the time within which a serviceman may file his return, in the
14case of any serviceman who ceases to engage in a kind of
15business which makes him responsible for filing returns under
16this Act, such serviceman shall file a final return under this
17Act with the Department not more than 1 month after
18discontinuing such business.
19    Beginning October 1, 1993, a taxpayer who has an average
20monthly tax liability of $150,000 or more shall make all
21payments required by rules of the Department by electronic
22funds transfer. Beginning October 1, 1994, a taxpayer who has
23an average monthly tax liability of $100,000 or more shall make
24all payments required by rules of the Department by electronic
25funds transfer. Beginning October 1, 1995, a taxpayer who has
26an average monthly tax liability of $50,000 or more shall make

 

 

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

 

 

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

 

 

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1returns hereunder and also under the Retailers' Occupation Tax
2Act, the Use Tax Act or the Service Use Tax Act, to furnish all
3the return information required by all said Acts on the one
4form.
5    Where the serviceman has more than one business registered
6with the Department under separate registrations hereunder,
7such serviceman shall file separate returns for each registered
8business.
9    Beginning January 1, 1990, each month the Department shall
10pay into the Local Government Tax Fund the revenue realized for
11the preceding month from the 1% tax on sales of food for human
12consumption which is to be consumed off the premises where it
13is sold (other than alcoholic beverages, soft drinks and food
14which has been prepared for immediate consumption) and
15prescription and nonprescription medicines, drugs, medical
16appliances and insulin, urine testing materials, syringes and
17needles used by diabetics.
18    Beginning January 1, 1990, each month the Department shall
19pay into the County and Mass Transit District Fund 4% of the
20revenue realized for the preceding month from the 6.25% general
21rate.
22    Beginning August 1, 2000, each month the Department shall
23pay into the County and Mass Transit District Fund 20% of the
24net revenue realized for the preceding month from the 1.25%
25rate on the selling price of motor fuel and gasohol.
26    Beginning January 1, 1990, each month the Department shall

 

 

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1pay into the Local Government Tax Fund 16% of the revenue
2realized for the preceding month from the 6.25% general rate on
3transfers of tangible personal property.
4    Beginning August 1, 2000, each month the Department shall
5pay into the Local Government Tax Fund 80% of the net revenue
6realized for the preceding month from the 1.25% rate on the
7selling price of motor fuel and gasohol.
8    Beginning October 1, 2009, each month the Department shall
9pay into the Capital Projects Fund an amount that is equal to
10an amount estimated by the Department to represent 80% of the
11net revenue realized for the preceding month from the sale of
12candy, grooming and hygiene products, and soft drinks that had
13been taxed at a rate of 1% prior to September 1, 2009 but that
14are is now taxed at 6.25%.
15    Beginning July 1, 2013, each month the Department shall pay
16into the Underground Storage Tank Fund from the proceeds
17collected under this Act, the Use Tax Act, the Service Use Tax
18Act, and the Retailers' Occupation Tax Act an amount equal to
19the average monthly deficit in the Underground Storage Tank
20Fund during the prior year, as certified annually by the
21Illinois Environmental Protection Agency, but the total
22payment into the Underground Storage Tank Fund under this Act,
23the Use Tax Act, the Service Use Tax Act, and the Retailers'
24Occupation Tax Act shall not exceed $18,000,000 in any State
25fiscal year. As used in this paragraph, the "average monthly
26deficit" shall be equal to the difference between the average

 

 

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1monthly claims for payment by the fund and the average monthly
2revenues deposited into the fund, excluding payments made
3pursuant to this paragraph.
4    Of the remainder of the moneys received by the Department
5pursuant to this Act, (a) 1.75% thereof shall be paid into the
6Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
7and after July 1, 1989, 3.8% thereof shall be paid into the
8Build Illinois Fund; provided, however, that if in any fiscal
9year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
10may be, of the moneys received by the Department and required
11to be paid into the Build Illinois Fund pursuant to Section 3
12of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
13Act, Section 9 of the Service Use Tax Act, and Section 9 of the
14Service Occupation Tax Act, such Acts being hereinafter called
15the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
16may be, of moneys being hereinafter called the "Tax Act
17Amount", and (2) the amount transferred to the Build Illinois
18Fund from the State and Local Sales Tax Reform Fund shall be
19less than the Annual Specified Amount (as defined in Section 3
20of the Retailers' Occupation Tax Act), an amount equal to the
21difference shall be immediately paid into the Build Illinois
22Fund from other moneys received by the Department pursuant to
23the Tax Acts; and further provided, that if on the last
24business day of any month the sum of (1) the Tax Act Amount
25required to be deposited into the Build Illinois Account in the
26Build Illinois Fund during such month and (2) the amount

 

 

HB3720- 66 -LRB098 14101 HLH 48967 b

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

 

 

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1Account in the Build Illinois Fund in such month shall be less
2than the amount required to be transferred in such month from
3the Build Illinois Bond Account to the Build Illinois Bond
4Retirement and Interest Fund pursuant to Section 13 of the
5Build Illinois Bond Act, an amount equal to such deficiency
6shall be immediately paid from other moneys received by the
7Department pursuant to the Tax Acts to the Build Illinois Fund;
8provided, however, that any amounts paid to the Build Illinois
9Fund in any fiscal year pursuant to this sentence shall be
10deemed to constitute payments pursuant to clause (b) of the
11preceding sentence and shall reduce the amount otherwise
12payable for such fiscal year pursuant to clause (b) of the
13preceding sentence. The moneys received by the Department
14pursuant to this Act and required to be deposited into the
15Build Illinois Fund are subject to the pledge, claim and charge
16set forth in Section 12 of the Build Illinois Bond Act.
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 the 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

 

 

HB3720- 68 -LRB098 14101 HLH 48967 b

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

 

 

HB3720- 69 -LRB098 14101 HLH 48967 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.

 

 

HB3720- 70 -LRB098 14101 HLH 48967 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 and ending on September 30,
182013, the Department shall each month pay into the Illinois Tax
19Increment Fund 0.27% of 80% of the net revenue realized for the
20preceding month from the 6.25% general rate on the selling
21price of tangible personal property.
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

 

 

HB3720- 71 -LRB098 14101 HLH 48967 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    Subject to payment of amounts into the Build Illinois Fund,
10the McCormick Place Expansion Project Fund, the Illinois Tax
11Increment Fund, and the Energy Infrastructure Fund pursuant to
12the preceding paragraphs or in any amendments to this Section
13hereafter enacted, beginning on the effective date of this
14amendatory Act of the 98th General Assembly, each month, from
15the collections made under Section 9 of the Use Tax Act,
16Section 9 of the Service Use Tax Act, Section 9 of the Service
17Occupation Tax Act, and Section 3 of the Retailers' Occupation
18Tax Act, the Department shall pay into the Tax Compliance and
19Administration Fund, to be used, subject to appropriation, to
20fund additional auditors and compliance personnel at the
21Department of Revenue, an amount equal to 1/12 of 5% of 80% of
22the cash receipts collected during the preceding fiscal year by
23the Audit Bureau of the Department under the Use Tax Act, the
24Service Use Tax Act, the Service Occupation Tax Act, the
25Retailers' Occupation Tax Act, and associated local occupation
26and use taxes administered by the Department.

 

 

HB3720- 72 -LRB098 14101 HLH 48967 b

1    Of the remainder of the moneys received by the Department
2pursuant to this Act, 75% shall be paid into the General
3Revenue Fund of the State Treasury and 25% shall be reserved in
4a special account and used only for the transfer to the Common
5School Fund as part of the monthly transfer from the General
6Revenue Fund in accordance with Section 8a of the State Finance
7Act.
8    The Department may, upon separate written notice to a
9taxpayer, require the taxpayer to prepare and file with the
10Department on a form prescribed by the Department within not
11less than 60 days after receipt of the notice an annual
12information return for the tax year specified in the notice.
13Such annual return to the Department shall include a statement
14of gross receipts as shown by the taxpayer's last Federal
15income tax return. If the total receipts of the business as
16reported in the Federal income tax return do not agree with the
17gross receipts reported to the Department of Revenue for the
18same period, the taxpayer shall attach to his annual return a
19schedule showing a reconciliation of the 2 amounts and the
20reasons for the difference. The taxpayer's annual return to the
21Department shall also disclose the cost of goods sold by the
22taxpayer during the year covered by such return, opening and
23closing inventories of such goods for such year, cost of goods
24used from stock or taken from stock and given away by the
25taxpayer during such year, pay roll information of the
26taxpayer's business during such year and any additional

 

 

HB3720- 73 -LRB098 14101 HLH 48967 b

1reasonable information which the Department deems would be
2helpful in determining the accuracy of the monthly, quarterly
3or annual returns filed by such taxpayer as hereinbefore
4provided for in this Section.
5    If the annual information return required by this Section
6is not filed when and as required, the taxpayer shall be liable
7as follows:
8        (i) Until January 1, 1994, the taxpayer shall be liable
9    for a penalty equal to 1/6 of 1% of the tax due from such
10    taxpayer under this Act during the period to be covered by
11    the annual return for each month or fraction of a month
12    until such return is filed as required, the penalty to be
13    assessed and collected in the same manner as any other
14    penalty provided for in this Act.
15        (ii) On and after January 1, 1994, the taxpayer shall
16    be liable for a penalty as described in Section 3-4 of the
17    Uniform Penalty and Interest Act.
18    The chief executive officer, proprietor, owner or highest
19ranking manager shall sign the annual return to certify the
20accuracy of the information contained therein. Any person who
21willfully signs the annual return containing false or
22inaccurate information shall be guilty of perjury and punished
23accordingly. The annual return form prescribed by the
24Department shall include a warning that the person signing the
25return may be liable for perjury.
26    The foregoing portion of this Section concerning the filing

 

 

HB3720- 74 -LRB098 14101 HLH 48967 b

1of an annual information return shall not apply to a serviceman
2who is not required to file an income tax return with the
3United States Government.
4    As soon as possible after the first day of each month, upon
5certification of the Department of Revenue, the Comptroller
6shall order transferred and the Treasurer shall transfer from
7the General Revenue Fund to the Motor Fuel Tax Fund an amount
8equal to 1.7% of 80% of the net revenue realized under this Act
9for the second preceding month. Beginning April 1, 2000, this
10transfer is no longer required and shall not be made.
11    Net revenue realized for a month shall be the revenue
12collected by the State pursuant to this Act, less the amount
13paid out during that month as refunds to taxpayers for
14overpayment of liability.
15    For greater simplicity of administration, it shall be
16permissible for manufacturers, importers and wholesalers whose
17products are sold by numerous servicemen in Illinois, and who
18wish to do so, to assume the responsibility for accounting and
19paying to the Department all tax accruing under this Act with
20respect to such sales, if the servicemen who are affected do
21not make written objection to the Department to this
22arrangement.
23(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
2498-298, eff. 8-9-13; 98-496, eff. 1-1-14; revised 9-9-13.)
 
25    Section 30. The Retailers' Occupation Tax Act is amended by

 

 

HB3720- 75 -LRB098 14101 HLH 48967 b

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

 

 

HB3720- 76 -LRB098 14101 HLH 48967 b

1    preceding calendar month or quarter and upon the basis of
2    which the tax is imposed;
3        7. The amount of credit provided in Section 2d of this
4    Act;
5        8. The amount of tax due;
6        9. The signature of the taxpayer; and
7        10. Such other reasonable information as the
8    Department 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    Each return shall be accompanied by the statement of
14prepaid tax issued pursuant to Section 2e for which credit is
15claimed.
16    Prior to October 1, 2003, and on and after September 1,
172004 a retailer may accept a Manufacturer's Purchase Credit
18certification from a purchaser in satisfaction of Use Tax as
19provided in Section 3-85 of the Use Tax Act if the purchaser
20provides the appropriate documentation as required by Section
213-85 of the Use Tax Act. A Manufacturer's Purchase Credit
22certification, accepted by a retailer prior to October 1, 2003
23and on and after September 1, 2004 as provided in Section 3-85
24of the Use Tax Act, may be used by that retailer to satisfy
25Retailers' Occupation Tax liability in the amount claimed in
26the certification, not to exceed 6.25% of the receipts subject

 

 

HB3720- 77 -LRB098 14101 HLH 48967 b

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

 

 

HB3720- 78 -LRB098 14101 HLH 48967 b

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

 

 

HB3720- 79 -LRB098 14101 HLH 48967 b

1the preceding month to purchasers; identifying the purchaser to
2whom it was sold or distributed; the purchaser's tax
3registration number; and such other information reasonably
4required by the Department. A distributor, importing
5distributor, or manufacturer of alcoholic liquor must
6personally deliver, mail, or provide by electronic means to
7each retailer listed on the monthly statement a report
8containing a cumulative total of that distributor's, importing
9distributor's, or manufacturer's total sales of alcoholic
10liquor to that retailer no later than the 10th day of the month
11for the preceding month during which the transaction occurred.
12The distributor, importing distributor, or manufacturer shall
13notify the retailer as to the method by which the distributor,
14importing distributor, or manufacturer will provide the sales
15information. If the retailer is unable to receive the sales
16information by electronic means, the distributor, importing
17distributor, or manufacturer shall furnish the sales
18information by personal delivery or by mail. For purposes of
19this paragraph, the term "electronic means" includes, but is
20not limited to, the use of a secure Internet website, e-mail,
21or facsimile.
22    If a total amount of less than $1 is payable, refundable or
23creditable, such amount shall be disregarded if it is less than
2450 cents and shall be increased to $1 if it is 50 cents or more.
25    Beginning October 1, 1993, a taxpayer who has an average
26monthly tax liability of $150,000 or more shall make all

 

 

HB3720- 80 -LRB098 14101 HLH 48967 b

1payments required by rules of the Department by electronic
2funds transfer. Beginning October 1, 1994, a taxpayer who has
3an average monthly tax liability of $100,000 or more shall make
4all payments required by rules of the Department by electronic
5funds transfer. Beginning October 1, 1995, a taxpayer who has
6an average monthly tax liability of $50,000 or more shall make
7all payments required by rules of the Department by electronic
8funds transfer. Beginning October 1, 2000, a taxpayer who has
9an annual tax liability of $200,000 or more shall make all
10payments required by rules of the Department by electronic
11funds transfer. The term "annual tax liability" shall be the
12sum of the taxpayer's liabilities under this Act, and under all
13other State and local occupation and use tax laws administered
14by the Department, for the immediately preceding calendar year.
15The term "average monthly tax liability" shall be the sum of
16the taxpayer's liabilities under this Act, and under all other
17State and local occupation and use tax laws administered by the
18Department, for the immediately preceding calendar year
19divided by 12. Beginning on October 1, 2002, a taxpayer who has
20a tax liability in the amount set forth in subsection (b) of
21Section 2505-210 of the Department of Revenue Law shall make
22all payments required by rules of the Department by electronic
23funds transfer.
24    Before August 1 of each year beginning in 1993, the
25Department shall notify all taxpayers required to make payments
26by electronic funds transfer. All taxpayers required to make

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    Where the seller is a limited liability company, the return
2filed on behalf of the limited liability company shall be
3signed by a manager, member, or properly accredited agent of
4the limited liability company.
5    Except as provided in this Section, the retailer filing the
6return under this Section shall, at the time of filing such
7return, pay to the Department the amount of tax imposed by this
8Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
9on and after January 1, 1990, or $5 per calendar year,
10whichever is greater, which is allowed to reimburse the
11retailer for the expenses incurred in keeping records,
12preparing and filing returns, remitting the tax and supplying
13data to the Department on request. Any prepayment made pursuant
14to Section 2d of this Act shall be included in the amount on
15which such 2.1% or 1.75% discount is computed. In the case of
16retailers who report and pay the tax on a transaction by
17transaction basis, as provided in this Section, such discount
18shall be taken with each such tax remittance instead of when
19such retailer files his periodic return. The Department may
20disallow the discount for retailers whose certificate of
21registration is revoked at the time the return is filed, but
22only if the Department's decision to revoke the certificate of
23registration has become final.
24    Before October 1, 2000, if the taxpayer's average monthly
25tax liability to the Department under this Act, the Use Tax
26Act, the Service Occupation Tax Act, and the Service Use Tax

 

 

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1Act, excluding any liability for prepaid sales tax to be
2remitted in accordance with Section 2d of this Act, was $10,000
3or more during the preceding 4 complete calendar quarters, he
4shall file a return with the Department each month by the 20th
5day of the month next following the month during which such tax
6liability is incurred and shall make payments to the Department
7on or before the 7th, 15th, 22nd and last day of the month
8during which such liability is incurred. On and after October
91, 2000, if the taxpayer's average monthly tax liability to the
10Department under this Act, the Use Tax Act, the Service
11Occupation Tax Act, and the Service Use Tax Act, excluding any
12liability for prepaid sales tax to be remitted in accordance
13with Section 2d of this Act, was $20,000 or more during the
14preceding 4 complete calendar quarters, he shall file a return
15with the Department each month by the 20th day of the month
16next following the month during which such tax liability is
17incurred and shall make payment to the Department on or before
18the 7th, 15th, 22nd and last day of the month during which such
19liability is incurred. If the month during which such tax
20liability is incurred began prior to January 1, 1985, each
21payment shall be in an amount equal to 1/4 of the taxpayer's
22actual liability for the month or an amount set by the
23Department not to exceed 1/4 of the average monthly liability
24of the taxpayer to the Department for the preceding 4 complete
25calendar quarters (excluding the month of highest liability and
26the month of lowest liability in such 4 quarter period). If the

 

 

HB3720- 90 -LRB098 14101 HLH 48967 b

1month during which such tax liability is incurred begins on or
2after January 1, 1985 and prior to January 1, 1987, each
3payment shall be in an amount equal to 22.5% of the taxpayer's
4actual liability for the month or 27.5% of the taxpayer's
5liability for the same calendar month of the preceding year. If
6the month during which such tax liability is incurred begins on
7or after January 1, 1987 and prior to January 1, 1988, each
8payment shall be in an amount equal to 22.5% of the taxpayer's
9actual liability for the month or 26.25% of the taxpayer's
10liability for the same calendar month of the preceding year. If
11the month during which such tax liability is incurred begins on
12or after January 1, 1988, and prior to January 1, 1989, or
13begins on or after January 1, 1996, each payment shall be in an
14amount equal to 22.5% of the taxpayer's actual liability for
15the month or 25% of the taxpayer's liability for the same
16calendar month of the preceding year. If the month during which
17such tax liability is incurred begins on or after January 1,
181989, and prior to January 1, 1996, each payment shall be in an
19amount equal to 22.5% of the taxpayer's actual liability for
20the month or 25% of the taxpayer's liability for the same
21calendar month of the preceding year or 100% of the taxpayer's
22actual liability for the quarter monthly reporting period. The
23amount of such quarter monthly payments shall be credited
24against the final tax liability of the taxpayer's return for
25that month. Before October 1, 2000, once applicable, the
26requirement of the making of quarter monthly payments to the

 

 

HB3720- 91 -LRB098 14101 HLH 48967 b

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

 

 

HB3720- 92 -LRB098 14101 HLH 48967 b

1show the Department that a substantial change in the taxpayer's
2business has occurred which causes the taxpayer to anticipate
3that his average monthly tax liability for the reasonably
4foreseeable future will fall below the $20,000 threshold stated
5above, then such taxpayer may petition the Department for a
6change in such taxpayer's reporting status. The Department
7shall change such taxpayer's reporting status unless it finds
8that such change is seasonal in nature and not likely to be
9long term. If any such quarter monthly payment is not paid at
10the time or in the amount required by this Section, then the
11taxpayer shall be liable for penalties and interest on the
12difference between the minimum amount due as a payment and the
13amount of such quarter monthly payment actually and timely
14paid, except insofar as the taxpayer has previously made
15payments for that month to the Department in excess of the
16minimum payments previously due as provided in this Section.
17The Department shall make reasonable rules and regulations to
18govern the quarter monthly payment amount and quarter monthly
19payment dates for taxpayers who file on other than a calendar
20monthly basis.
21    The provisions of this paragraph apply before October 1,
222001. Without regard to whether a taxpayer is required to make
23quarter monthly payments as specified above, any taxpayer who
24is required by Section 2d of this Act to collect and remit
25prepaid taxes and has collected prepaid taxes which average in
26excess of $25,000 per month during the preceding 2 complete

 

 

HB3720- 93 -LRB098 14101 HLH 48967 b

1calendar quarters, shall file a return with the Department as
2required by Section 2f and shall make payments to the
3Department on or before the 7th, 15th, 22nd and last day of the
4month during which such liability is incurred. If the month
5during which such tax liability is incurred began prior to the
6effective date of this amendatory Act of 1985, each payment
7shall be in an amount not less than 22.5% of the taxpayer's
8actual liability under Section 2d. If the month during which
9such tax liability is incurred begins on or after January 1,
101986, each payment shall be in an amount equal to 22.5% of the
11taxpayer's actual liability for the month or 27.5% of the
12taxpayer's liability for the same calendar month of the
13preceding calendar year. If the month during which such tax
14liability is incurred begins on or after January 1, 1987, each
15payment shall be in an amount equal to 22.5% of the taxpayer's
16actual liability for the month or 26.25% of the taxpayer's
17liability for the same calendar month of the preceding year.
18The amount of such quarter monthly payments shall be credited
19against the final tax liability of the taxpayer's return for
20that month filed under this Section or Section 2f, as the case
21may be. Once applicable, the requirement of the making of
22quarter monthly payments to the Department pursuant to this
23paragraph shall continue until such taxpayer's average monthly
24prepaid tax collections during the preceding 2 complete
25calendar quarters is $25,000 or less. If any such quarter
26monthly payment is not paid at the time or in the amount

 

 

HB3720- 94 -LRB098 14101 HLH 48967 b

1required, the taxpayer shall be liable for penalties and
2interest on such difference, except insofar as the taxpayer has
3previously made payments for that month in excess of the
4minimum payments previously due.
5    The provisions of this paragraph apply on and after October
61, 2001. Without regard to whether a taxpayer is required to
7make quarter monthly payments as specified above, any taxpayer
8who is required by Section 2d of this Act to collect and remit
9prepaid taxes and has collected prepaid taxes that average in
10excess of $20,000 per month during the preceding 4 complete
11calendar quarters shall file a return with the Department as
12required by Section 2f and shall make payments to the
13Department on or before the 7th, 15th, 22nd and last day of the
14month during which the liability is incurred. Each payment
15shall be in an amount equal to 22.5% of the taxpayer's actual
16liability for the month or 25% of the taxpayer's liability for
17the same calendar month of the preceding year. The amount of
18the quarter monthly payments shall be credited against the
19final tax liability of the taxpayer's return for that month
20filed under this Section or Section 2f, as the case may be.
21Once applicable, the requirement of the making of quarter
22monthly payments to the Department pursuant to this paragraph
23shall continue until the taxpayer's average monthly prepaid tax
24collections during the preceding 4 complete calendar quarters
25(excluding the month of highest liability and the month of
26lowest liability) is less than $19,000 or until such taxpayer's

 

 

HB3720- 95 -LRB098 14101 HLH 48967 b

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

 

 

HB3720- 96 -LRB098 14101 HLH 48967 b

1and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
2of the difference between the credit taken and that actually
3due, and that taxpayer shall be liable for penalties and
4interest on such difference.
5    If a retailer of motor fuel is entitled to a credit under
6Section 2d of this Act which exceeds the taxpayer's liability
7to the Department under this Act for the month which the
8taxpayer is filing a return, the Department shall issue the
9taxpayer a credit memorandum for the excess.
10    Beginning January 1, 1990, each month the Department shall
11pay into the Local Government Tax Fund, a special fund in the
12State treasury which is hereby created, the net revenue
13realized for the preceding month from the 1% tax on sales of
14food for human consumption which is to be consumed off the
15premises where it is sold (other than alcoholic beverages, soft
16drinks 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    Beginning January 1, 1990, each month the Department shall
21pay into the County and Mass Transit District Fund, a special
22fund in the State treasury which is hereby created, 4% of the
23net revenue realized for the preceding month from the 6.25%
24general rate.
25    Beginning August 1, 2000, each month the Department shall
26pay into the County and Mass Transit District Fund 20% of the

 

 

HB3720- 97 -LRB098 14101 HLH 48967 b

1net revenue realized for the preceding month from the 1.25%
2rate on the selling price of motor fuel and gasohol. Beginning
3September 1, 2010, each month the Department shall pay into the
4County and Mass Transit District Fund 20% of the net revenue
5realized for the preceding month from the 1.25% rate on the
6selling price of sales tax holiday items.
7    Beginning January 1, 1990, each month the Department shall
8pay into the Local Government Tax Fund 16% of the net revenue
9realized for the preceding month from the 6.25% general rate on
10the selling price of tangible personal property.
11    Beginning August 1, 2000, each month the Department shall
12pay into the Local Government Tax Fund 80% of the net revenue
13realized for the preceding month from the 1.25% rate on the
14selling price of motor fuel and gasohol. Beginning September 1,
152010, each month the Department shall pay into the Local
16Government Tax Fund 80% of the net revenue realized for the
17preceding month from the 1.25% rate on the selling price of
18sales tax holiday items.
19    Beginning October 1, 2009, each month the Department shall
20pay into the Capital Projects Fund an amount that is equal to
21an amount estimated by the Department to represent 80% of the
22net revenue realized for the preceding month from the sale of
23candy, grooming and hygiene products, and soft drinks that had
24been taxed at a rate of 1% prior to September 1, 2009 but that
25are is now taxed at 6.25%.
26    Beginning July 1, 2011, each month the Department shall pay

 

 

HB3720- 98 -LRB098 14101 HLH 48967 b

1into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
2realized for the preceding month from the 6.25% general rate on
3the selling price of sorbents used in Illinois in the process
4of sorbent injection as used to comply with the Environmental
5Protection Act or the federal Clean Air Act, but the total
6payment into the Clean Air Act (CAA) Permit Fund under this Act
7and the Use Tax Act shall not exceed $2,000,000 in any fiscal
8year.
9    Beginning July 1, 2013, each month the Department shall pay
10into the Underground Storage Tank Fund from the proceeds
11collected under this Act, the Use Tax Act, the Service Use Tax
12Act, and the Service Occupation Tax Act an amount equal to the
13average monthly deficit in the Underground Storage Tank Fund
14during the prior year, as certified annually by the Illinois
15Environmental Protection Agency, but the total payment into the
16Underground Storage Tank Fund under this Act, the Use Tax Act,
17the Service Use Tax Act, and the Service Occupation Tax Act
18shall not exceed $18,000,000 in any State fiscal year. As used
19in this paragraph, the "average monthly deficit" shall be equal
20to the difference between the average monthly claims for
21payment by the fund and the average monthly revenues deposited
22into the fund, excluding payments made pursuant to this
23paragraph.
24    Of the remainder of the moneys received by the Department
25pursuant to this Act, (a) 1.75% thereof shall be paid into the
26Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on

 

 

HB3720- 99 -LRB098 14101 HLH 48967 b

1and after July 1, 1989, 3.8% thereof shall be paid into the
2Build Illinois Fund; provided, however, that if in any fiscal
3year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
4may be, of the moneys received by the Department and required
5to be paid into the Build Illinois Fund pursuant to this Act,
6Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
7Act, and Section 9 of the Service Occupation Tax Act, such Acts
8being hereinafter called the "Tax Acts" and such aggregate of
92.2% or 3.8%, as the case may be, of moneys being hereinafter
10called the "Tax Act Amount", and (2) the amount transferred to
11the Build Illinois Fund from the State and Local Sales Tax
12Reform Fund shall be less than the Annual Specified Amount (as
13hereinafter defined), an amount equal to the difference shall
14be immediately paid into the Build Illinois Fund from other
15moneys received by the Department pursuant to the Tax Acts; the
16"Annual Specified Amount" means the amounts specified below for
17fiscal years 1986 through 1993:
18Fiscal YearAnnual Specified Amount
191986$54,800,000
201987$76,650,000
211988$80,480,000
221989$88,510,000
231990$115,330,000
241991$145,470,000
251992$182,730,000
261993$206,520,000;

 

 

HB3720- 100 -LRB098 14101 HLH 48967 b

1and means the Certified Annual Debt Service Requirement (as
2defined in Section 13 of the Build Illinois Bond Act) or the
3Tax Act Amount, whichever is greater, for fiscal year 1994 and
4each fiscal year thereafter; and further provided, that if on
5the last business day of any month the sum of (1) the Tax Act
6Amount required to be deposited into the Build Illinois Bond
7Account in the Build Illinois Fund during such month and (2)
8the amount transferred to the Build Illinois Fund from the
9State and Local Sales Tax Reform Fund shall have been less than
101/12 of the Annual Specified Amount, an amount equal to the
11difference shall be immediately paid into the Build Illinois
12Fund from other moneys received by the Department pursuant to
13the Tax Acts; and, further provided, that in no event shall the
14payments required under the preceding proviso result in
15aggregate payments into the Build Illinois Fund pursuant to
16this clause (b) for any fiscal year in excess of the greater of
17(i) the Tax Act Amount or (ii) the Annual Specified Amount for
18such fiscal year. The amounts payable into the Build Illinois
19Fund under clause (b) of the first sentence in this paragraph
20shall be payable only until such time as the aggregate amount
21on deposit under each trust indenture securing Bonds issued and
22outstanding pursuant to the Build Illinois Bond Act is
23sufficient, taking into account any future investment income,
24to fully provide, in accordance with such indenture, for the
25defeasance of or the payment of the principal of, premium, if
26any, and interest on the Bonds secured by such indenture and on

 

 

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1any Bonds expected to be issued thereafter and all fees and
2costs payable with respect thereto, all as certified by the
3Director of the Bureau of the Budget (now Governor's Office of
4Management and Budget). If on the last business day of any
5month in which Bonds are outstanding pursuant to the Build
6Illinois Bond Act, the aggregate of moneys deposited in the
7Build Illinois Bond Account in the Build Illinois Fund in such
8month shall be less than the amount required to be transferred
9in such month from the Build Illinois Bond Account to the Build
10Illinois Bond Retirement and Interest Fund pursuant to Section
1113 of the Build Illinois Bond Act, an amount equal to such
12deficiency shall be immediately paid from other moneys received
13by the Department pursuant to the Tax Acts to the Build
14Illinois Fund; provided, however, that any amounts paid to the
15Build Illinois Fund in any fiscal year pursuant to this
16sentence shall be deemed to constitute payments pursuant to
17clause (b) of the first sentence of this paragraph and shall
18reduce the amount otherwise payable for such fiscal year
19pursuant to that clause (b). The moneys received by the
20Department pursuant to this Act and required to be deposited
21into the Build Illinois Fund are subject to the pledge, claim
22and charge set forth in Section 12 of the Build Illinois Bond
23Act.
24    Subject to payment of amounts into the Build Illinois Fund
25as provided in the preceding paragraph or in any amendment
26thereto hereafter enacted, the following specified monthly

 

 

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1installment of the amount requested in the certificate of the
2Chairman of the Metropolitan Pier and Exposition Authority
3provided under Section 8.25f of the State Finance Act, but not
4in excess of sums designated as "Total Deposit", shall be
5deposited in the aggregate from collections under Section 9 of
6the Use Tax Act, Section 9 of the Service Use Tax Act, Section
79 of the Service Occupation Tax Act, and Section 3 of the
8Retailers' Occupation Tax Act into the McCormick Place
9Expansion Project Fund in the specified fiscal years.
10Fiscal YearTotal Deposit
111993         $0
121994 53,000,000
131995 58,000,000
141996 61,000,000
151997 64,000,000
161998 68,000,000
171999 71,000,000
182000 75,000,000
192001 80,000,000
202002 93,000,000
212003 99,000,000
222004103,000,000
232005108,000,000
242006113,000,000
252007119,000,000

 

 

HB3720- 103 -LRB098 14101 HLH 48967 b

12008126,000,000
22009132,000,000
32010139,000,000
42011146,000,000
52012153,000,000
62013161,000,000
72014170,000,000
82015179,000,000
92016189,000,000
102017199,000,000
112018210,000,000
122019221,000,000
132020233,000,000
142021246,000,000
152022260,000,000
162023275,000,000
172024 275,000,000
182025 275,000,000
192026 279,000,000
202027 292,000,000
212028 307,000,000
222029 322,000,000
232030 338,000,000
242031 350,000,000
252032 350,000,000
26and

 

 

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1each fiscal year
2thereafter that bonds
3are outstanding under
4Section 13.2 of the
5Metropolitan Pier and
6Exposition Authority Act,
7but not after fiscal year 2060.
8    Beginning July 20, 1993 and in each month of each fiscal
9year thereafter, one-eighth of the amount requested in the
10certificate of the Chairman of the Metropolitan Pier and
11Exposition Authority for that fiscal year, less the amount
12deposited into the McCormick Place Expansion Project Fund by
13the State Treasurer in the respective month under subsection
14(g) of Section 13 of the Metropolitan Pier and Exposition
15Authority Act, plus cumulative deficiencies in the deposits
16required under this Section for previous months and years,
17shall be deposited into the McCormick Place Expansion Project
18Fund, until the full amount requested for the fiscal year, but
19not in excess of the amount specified above as "Total Deposit",
20has been deposited.
21    Subject to payment of amounts into the Build Illinois Fund
22and the McCormick Place Expansion Project Fund pursuant to the
23preceding paragraphs or in any amendments thereto hereafter
24enacted, beginning July 1, 1993 and ending on September 30,
252013, the Department shall each month pay into the Illinois Tax
26Increment Fund 0.27% of 80% of the net revenue realized for the

 

 

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1preceding month from the 6.25% general rate on the selling
2price of tangible personal property.
3    Subject to payment of amounts into the Build Illinois Fund
4and the McCormick Place Expansion Project Fund pursuant to the
5preceding paragraphs or in any amendments thereto hereafter
6enacted, beginning with the receipt of the first report of
7taxes paid by an eligible business and continuing for a 25-year
8period, the Department shall each month pay into the Energy
9Infrastructure Fund 80% of the net revenue realized from the
106.25% general rate on the selling price of Illinois-mined coal
11that was sold to an eligible business. For purposes of this
12paragraph, the term "eligible business" means a new electric
13generating facility certified pursuant to Section 605-332 of
14the Department of Commerce and Economic Opportunity Law of the
15Civil Administrative Code of Illinois.
16    Subject to payment of amounts into the Build Illinois Fund,
17the McCormick Place Expansion Project Fund, the Illinois Tax
18Increment Fund, and the Energy Infrastructure Fund pursuant to
19the preceding paragraphs or in any amendments to this Section
20hereafter enacted, beginning on the effective date of this
21amendatory Act of the 98th General Assembly, each month, from
22the collections made under Section 9 of the Use Tax Act,
23Section 9 of the Service Use Tax Act, Section 9 of the Service
24Occupation Tax Act, and Section 3 of the Retailers' Occupation
25Tax Act, the Department shall pay into the Tax Compliance and
26Administration Fund, to be used, subject to appropriation, to

 

 

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1fund additional auditors and compliance personnel at the
2Department of Revenue, an amount equal to 1/12 of 5% of 80% of
3the cash receipts collected during the preceding fiscal year by
4the Audit Bureau of the Department under the Use Tax Act, the
5Service Use Tax Act, the Service Occupation Tax Act, the
6Retailers' Occupation Tax Act, and associated local occupation
7and use taxes administered by the Department.
8    Of the remainder of the moneys received by the Department
9pursuant to this Act, 75% thereof shall be paid into the State
10Treasury and 25% shall be reserved in a special account and
11used only for the transfer to the Common School Fund as part of
12the monthly transfer from the General Revenue Fund in
13accordance with Section 8a of the State Finance Act.
14    The Department may, upon separate written notice to a
15taxpayer, require the taxpayer to prepare and file with the
16Department on a form prescribed by the Department within not
17less than 60 days after receipt of the notice an annual
18information return for the tax year specified in the notice.
19Such annual return to the Department shall include a statement
20of gross receipts as shown by the retailer's last Federal
21income tax return. If the total receipts of the business as
22reported in the Federal income tax return do not agree with the
23gross receipts reported to the Department of Revenue for the
24same period, the retailer shall attach to his annual return a
25schedule showing a reconciliation of the 2 amounts and the
26reasons for the difference. The retailer's annual return to the

 

 

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

 

 

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

 

 

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1objection to the Department to this arrangement.
2    Any person who promotes, organizes, provides retail
3selling space for concessionaires or other types of sellers at
4the Illinois State Fair, DuQuoin State Fair, county fairs,
5local fairs, art shows, flea markets and similar exhibitions or
6events, including any transient merchant as defined by Section
72 of the Transient Merchant Act of 1987, is required to file a
8report with the Department providing the name of the merchant's
9business, the name of the person or persons engaged in
10merchant's business, the permanent address and Illinois
11Retailers Occupation Tax Registration Number of the merchant,
12the dates and location of the event and other reasonable
13information that the Department may require. The report must be
14filed not later than the 20th day of the month next following
15the month during which the event with retail sales was held.
16Any person who fails to file a report required by this Section
17commits a business offense and is subject to a fine not to
18exceed $250.
19    Any person engaged in the business of selling tangible
20personal property at retail as a concessionaire or other type
21of seller at the Illinois State Fair, county fairs, art shows,
22flea markets and similar exhibitions or events, or any
23transient merchants, as defined by Section 2 of the Transient
24Merchant Act of 1987, may be required to make a daily report of
25the amount of such sales to the Department and to make a daily
26payment of the full amount of tax due. The Department shall

 

 

HB3720- 110 -LRB098 14101 HLH 48967 b

1impose this requirement when it finds that there is a
2significant risk of loss of revenue to the State at such an
3exhibition or event. Such a finding shall be based on evidence
4that a substantial number of concessionaires or other sellers
5who are not residents of Illinois will be engaging in the
6business of selling tangible personal property at retail at the
7exhibition or event, or other evidence of a significant risk of
8loss of revenue to the State. The Department shall notify
9concessionaires and other sellers affected by the imposition of
10this requirement. In the absence of notification by the
11Department, the concessionaires and other sellers shall file
12their returns as otherwise required in this Section.
13(Source: P.A. 97-95, eff. 7-12-11; 97-333, eff. 8-12-11; 98-24,
14eff. 6-19-13; 98-109, eff. 7-25-13; 98-496, eff. 1-1-14;
15revised 9-9-13.)
 
16    Section 35. The Telecommunications Excise Tax Act is
17amended by changing Section 6 as follows:
 
18    (35 ILCS 630/6)  (from Ch. 120, par. 2006)
19    Sec. 6. Except as provided hereinafter in this Section, on
20or before the last day of each month, each retailer maintaining
21a place of business in this State shall make a return to the
22Department for the preceding calendar month, stating:
23        1. His name;
24        2. The address of his principal place of business, or

 

 

HB3720- 111 -LRB098 14101 HLH 48967 b

1    the address of the principal place of business (if that is
2    a different address) from which he engages in the business
3    of transmitting telecommunications;
4        3. Total amount of gross charges billed by him during
5    the preceding calendar month for providing
6    telecommunications during such calendar month;
7        4. Total amount received by him during the preceding
8    calendar month on credit extended;
9        5. Deductions allowed by law;
10        6. Gross charges which were billed by him during the
11    preceding calendar month and upon the basis of which the
12    tax is imposed;
13        7. Amount of tax (computed upon Item 6);
14        8. Such other reasonable information as the Department
15    may require.
16    Any taxpayer required to make payments under this Section
17may make the payments by electronic funds transfer. The
18Department shall adopt rules necessary to effectuate a program
19of electronic funds transfer. Any taxpayer who has average
20monthly tax billings due to the Department under this Act and
21the Simplified Municipal Telecommunications Tax Act that
22exceed $1,000 shall make all payments by electronic funds
23transfer as required by rules of the Department and shall file
24the return required by this Section by electronic means as
25required by rules of the Department.
26    If the retailer's average monthly tax billings due to the

 

 

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1Department under this Act and the Simplified Municipal
2Telecommunications Tax Act do not exceed $1,000, the Department
3may authorize his returns to be filed on a quarter annual
4basis, with the return for January, February and March of a
5given year being due by April 30 of such year; with the return
6for April, May and June of a given year being due by July 31st
7of such year; with the return for July, August and September of
8a given year being due by October 31st of such year; and with
9the return of October, November and December of a given year
10being due by January 31st of the following year.
11    If the retailer is otherwise required to file a monthly or
12quarterly return and if the retailer's average monthly tax
13billings due to the Department under this Act and the
14Simplified Municipal Telecommunications Tax Act do not exceed
15$400, the Department may authorize his or her return to be
16filed on an annual basis, with the return for a given year
17being due by January 31st of the following year.
18    Notwithstanding any other provision of this Article
19containing the time within which a retailer may file his
20return, in the case of any retailer who ceases to engage in a
21kind of business which makes him responsible for filing returns
22under this Article, such retailer shall file a final return
23under this Article with the Department not more than one month
24after discontinuing such business.
25    In making such return, the retailer shall determine the
26value of any consideration other than money received by him and

 

 

HB3720- 113 -LRB098 14101 HLH 48967 b

1he shall include such value in his return. Such determination
2shall be subject to review and revision by the Department in
3the manner hereinafter provided for the correction of returns.
4    Each retailer whose average monthly liability to the
5Department under this Article and the Simplified Municipal
6Telecommunications Tax Act was $25,000 or more during the
7preceding calendar year, excluding the month of highest
8liability and the month of lowest liability in such calendar
9year, and who is not operated by a unit of local government,
10shall make estimated payments to the Department on or before
11the 7th, 15th, 22nd and last day of the month during which tax
12collection liability to the Department is incurred in an amount
13not less than the lower of either 22.5% of the retailer's
14actual tax collections for the month or 25% of the retailer's
15actual tax collections for the same calendar month of the
16preceding year. The amount of such quarter monthly payments
17shall be credited against the final liability of the retailer's
18return for that month. Any outstanding credit, approved by the
19Department, arising from the retailer's overpayment of its
20final liability for any month may be applied to reduce the
21amount of any subsequent quarter monthly payment or credited
22against the final liability of the retailer's return for any
23subsequent month. If any quarter monthly payment is not paid at
24the time or in the amount required by this Section, the
25retailer shall be liable for penalty and interest on the
26difference between the minimum amount due as a payment and the

 

 

HB3720- 114 -LRB098 14101 HLH 48967 b

1amount of such payment actually and timely paid, except insofar
2as the retailer has previously made payments for that month to
3the Department in excess of the minimum payments previously
4due.
5    The retailer making the return herein provided for shall,
6at the time of making such return, pay to the Department the
7amount of tax herein imposed, less a discount of 1% which is
8allowed to reimburse the retailer for the expenses incurred in
9keeping records, billing the customer, preparing and filing
10returns, remitting the tax, and supplying data to the
11Department upon request. No discount may be claimed by a
12retailer on returns not timely filed and for taxes not timely
13remitted.
14    On and after the effective date of this Article of 1985,
15$1,000,000 of the moneys received by the Department of Revenue
16pursuant to this Article, other than moneys received pursuant
17to the additional taxes imposed by Public Act 90-548:
18        (1) $1,000,000 shall be paid each month into the Common
19    School Fund;
20        (2) beginning on the effective date of this amendatory
21    Act of the 98th General Assembly, an amount equal to 1/12
22    of 5% of the cash receipts collected during the preceding
23    fiscal year by the Audit Bureau of the Department from the
24    tax under this Act and the Simplified Municipal
25    Telecommunications Tax Act shall be paid each month into
26    the Tax Compliance and Administration Fund; those moneys

 

 

HB3720- 115 -LRB098 14101 HLH 48967 b

1    shall be used, subject to appropriation, to fund additional
2    auditors and compliance personnel at the Department of
3    Revenue; and
4        (3) the remainder shall be deposited into the General
5    Revenue Fund.
6    On and after February 1, 1998, however, of the moneys
7received by the Department of Revenue pursuant to the
8additional taxes imposed by Public Act 90-548, this amendatory
9Act of 1997 one-half shall be deposited into the School
10Infrastructure Fund and one-half shall be deposited into the
11Common School Fund. On and after the effective date of this
12amendatory Act of the 91st General Assembly, if in any fiscal
13year the total of the moneys deposited into the School
14Infrastructure Fund under this Act is less than the total of
15the moneys deposited into that Fund from the additional taxes
16imposed by Public Act 90-548 during fiscal year 1999, then, as
17soon as possible after the close of the fiscal year, the
18Comptroller shall order transferred and the Treasurer shall
19transfer from the General Revenue Fund to the School
20Infrastructure Fund an amount equal to the difference between
21the fiscal year total deposits and the total amount deposited
22into the Fund in fiscal year 1999.
23(Source: P.A. 91-541, eff. 8-13-99; 91-870, 6-22-00; 92-526,
24eff. 1-1-03.)
 
25    Section 40. The Telecommunications Infrastructure

 

 

HB3720- 116 -LRB098 14101 HLH 48967 b

1Maintenance Fee Act is amended by changing Section 25 as
2follows:
 
3    (35 ILCS 635/25)
4    Sec. 25. Collection, enforcement, and administration of
5State telecommunications infrastructure maintenance fees.
6    (a) A telecommunications retailer shall charge each
7customer an additional charge equal to the State infrastructure
8maintenance fee attributable to that customer's service
9address. Such additional charge shall be shown separately on
10the bill to each customer.
11    (b) The State infrastructure maintenance fee shall be
12designated as a replacement for the personal property tax and
13shall be remitted by the telecommunications retailer to the
14Department; provided, however, that the telecommunications
15retailer may retain an amount not to exceed 2% of the State
16infrastructure maintenance fee paid to the Department, with a
17timely paid and timely filed return to reimburse itself for
18expenses incurred in collecting, accounting for, and remitting
19the fee.
20    On and after the effective date of this amendatory Act of
21the 98th General Assembly, an amount equal to 1/12 of 5% of the
22cash receipts collected during the preceding fiscal year by the
23Audit Bureau of the Department from the tax under this Act
24shall be paid each month into the Tax Compliance and
25Administration Fund to be used, subject to appropriation, to

 

 

HB3720- 117 -LRB098 14101 HLH 48967 b

1fund additional auditors and compliance personnel at the
2Department of Revenue. All remaining amounts herein remitted to
3the Department shall be paid into transferred to the Personal
4Property Tax Replacement Fund in the State Treasury.
5(Source: P.A. 92-526, eff. 1-1-03.)
 
6    Section 99. Effective date. This Act takes effect on the
7first day of the first calendar month to occur not less than 30
8days after this Act becomes law.