|
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB0690 Introduced , by Rep. Michael J. Madigan SYNOPSIS AS INTRODUCED: |
| 35 ILCS 120/6 | from Ch. 120, par. 445 |
|
Amends the Retailers' Occupation Tax Act. Makes a technical change in a Section concerning credit memorandums and refunds.
|
| |
| | A BILL FOR |
|
|
| | HB0690 | | LRB099 04509 HLH 24537 b |
|
|
1 | | AN ACT concerning revenue.
|
2 | | Be it enacted by the People of the State of Illinois,
|
3 | | represented in the General Assembly:
|
4 | | Section 5. The Retailers' Occupation Tax Act is amended by |
5 | | changing Section 6 as follows:
|
6 | | (35 ILCS 120/6) (from Ch. 120, par. 445)
|
7 | | Sec. 6. Credit memorandum or refund. If it appears, after |
8 | | claim therefor
filed with the
the Department, that
an amount of |
9 | | tax or penalty or interest has been paid which was not due |
10 | | under
this Act, whether as the result of a mistake of fact or |
11 | | an error of law,
except as hereinafter provided, then the |
12 | | Department shall issue a credit
memorandum or refund to the |
13 | | person who made the erroneous payment or, if
that person died |
14 | | or became a person under legal disability, to his or her
legal |
15 | | representative, as such.
For purposes of this Section, the tax |
16 | | is deemed to be erroneously paid by
a retailer when the |
17 | | manufacturer of a motor vehicle sold by the retailer
accepts
|
18 | | the return of that automobile and refunds to the purchaser the |
19 | | selling price of
that vehicle as provided in the New Vehicle |
20 | | Buyer Protection Act. When a
motor vehicle is returned for a |
21 | | refund of the purchase price under the New
Vehicle Buyer |
22 | | Protection Act, the Department shall issue a credit memorandum
|
23 | | or a refund for the amount of tax paid by the retailer under |
|
| | HB0690 | - 2 - | LRB099 04509 HLH 24537 b |
|
|
1 | | this Act
attributable to the initial sale of that vehicle. |
2 | | Claims submitted by the
retailer are subject to the same |
3 | | restrictions and procedures provided for in
this Act.
If it is |
4 | | determined that the Department
should issue a credit memorandum |
5 | | or refund, the Department may first apply
the amount thereof |
6 | | against any tax or penalty or interest due or to become
due |
7 | | under this Act or under the Use Tax Act, the Service Occupation |
8 | | Tax
Act, the Service Use Tax Act,
any local occupation or use |
9 | | tax administered by the Department,
Section 4 of the Water |
10 | | Commission Act of
1985, subsections (b), (c) and (d) of Section |
11 | | 5.01 of the Local Mass
Transit District Act, or subsections |
12 | | (e), (f) and (g) of Section 4.03 of
the Regional Transportation |
13 | | Authority Act, from the person who made the
erroneous payment. |
14 | | If no tax or penalty or interest is due and no
proceeding is |
15 | | pending to determine whether such person is indebted to the
|
16 | | Department for tax or penalty or interest, the credit |
17 | | memorandum or refund
shall be issued to the claimant; or (in |
18 | | the case of a credit memorandum)
the credit memorandum may be |
19 | | assigned and set over by the lawful holder
thereof, subject to |
20 | | reasonable rules of the Department, to any other person
who is |
21 | | subject to this Act, the Use Tax Act, the Service Occupation |
22 | | Tax Act,
the Service Use Tax Act,
any local occupation or use |
23 | | tax administered by the Department,
Section 4 of the Water |
24 | | Commission Act of
1985, subsections (b), (c) and (d) of Section |
25 | | 5.01 of the Local Mass
Transit District Act, or subsections |
26 | | (e), (f) and (g) of Section 4.03 of
the Regional Transportation |
|
| | HB0690 | - 3 - | LRB099 04509 HLH 24537 b |
|
|
1 | | Authority Act,
and the amount thereof applied by the Department |
2 | | against any tax or
penalty or interest due or to become due |
3 | | under this Act or under the Use
Tax Act, the Service Occupation |
4 | | Tax Act, the Service
Use Tax Act,
any local occupation or use |
5 | | tax administered by the Department,
Section 4 of the Water |
6 | | Commission Act of
1985, subsections (b), (c) and (d) of Section |
7 | | 5.01 of the Local Mass
Transit District Act, or subsections |
8 | | (e), (f) and (g) of Section 4.03 of
the Regional Transportation |
9 | | Authority Act, from such assignee. However, as
to any claim for |
10 | | credit or refund filed with the Department on and after
each |
11 | | January 1 and July 1 no amount of tax or penalty or interest
|
12 | | erroneously paid (either in total or partial liquidation of a |
13 | | tax or
penalty or amount of interest under this Act) more than |
14 | | 3 years prior to
such January 1 and July 1, respectively, shall |
15 | | be credited or refunded,
except that if both the Department and |
16 | | the taxpayer have agreed to an
extension of time to issue a |
17 | | notice of tax liability as
provided in Section 4 of this Act, |
18 | | such claim may be filed at any time
prior to the expiration of |
19 | | the period agreed upon. |
20 | | No claim may be allowed for any amount paid to the |
21 | | Department, whether
paid voluntarily or involuntarily, if paid |
22 | | in total or partial liquidation
of an assessment which had |
23 | | become final before the claim for credit or
refund to recover |
24 | | the amount so paid is filed with the Department, or if
paid in |
25 | | total or partial liquidation of a judgment or order of
court. |
26 | | No credit may be allowed or refund made for any amount paid by |
|
| | HB0690 | - 4 - | LRB099 04509 HLH 24537 b |
|
|
1 | | or
collected from any claimant unless it appears (a) that the |
2 | | claimant bore
the burden of such amount and has not been |
3 | | relieved thereof nor reimbursed
therefor and has not shifted |
4 | | such burden directly or indirectly through
inclusion of such |
5 | | amount in the price of the tangible personal property
sold by |
6 | | him or her or in any manner whatsoever; and that no |
7 | | understanding or
agreement, written or oral, exists whereby he |
8 | | or she or his or her
legal representative may be relieved of |
9 | | the burden of such amount, be
reimbursed therefor or may shift |
10 | | the burden thereof; or (b) that he or she
or his or her legal |
11 | | representative has repaid unconditionally such amount
to his or |
12 | | her vendee (1) who bore the burden thereof and has not shifted
|
13 | | such burden directly or indirectly, in any manner whatsoever; |
14 | | (2) who, if
he or she has shifted such burden, has repaid |
15 | | unconditionally such amount
to his own vendee; and (3) who is |
16 | | not entitled to receive any reimbursement
therefor from any |
17 | | other source than from his or her vendor, nor to be
relieved of |
18 | | such burden in any manner whatsoever. No credit may be allowed
|
19 | | or refund made for any amount paid by or collected from any |
20 | | claimant unless
it appears that the claimant has |
21 | | unconditionally repaid, to the purchaser,
any amount collected |
22 | | from the purchaser and retained by the claimant with
respect to |
23 | | the same transaction under the Use Tax Act.
|
24 | | Any credit or refund that is allowed under this Section |
25 | | shall bear interest
at the rate and in the manner specified in |
26 | | the Uniform Penalty and Interest
Act.
|
|
| | HB0690 | - 5 - | LRB099 04509 HLH 24537 b |
|
|
1 | | In case the Department determines that the claimant is |
2 | | entitled to a
refund, such refund shall be made only from such |
3 | | appropriation as may be
available for that purpose. If it |
4 | | appears unlikely that the amount
appropriated would permit |
5 | | everyone having a claim allowed during the period
covered by |
6 | | such appropriation to elect to receive a cash refund, the
|
7 | | Department, by rule or regulation, shall provide for the |
8 | | payment of refunds in
hardship cases and shall define what |
9 | | types of cases qualify as hardship cases.
|
10 | | If a retailer who has failed to pay retailers' occupation |
11 | | tax on gross
receipts from retail sales is required by the |
12 | | Department to pay such tax,
such retailer, without filing any |
13 | | formal claim with the Department, shall
be allowed to take |
14 | | credit against such retailers' occupation tax liability
to the |
15 | | extent, if any, to which such retailer has paid an amount |
16 | | equivalent
to retailers' occupation tax or has paid use tax in |
17 | | error to his or her vendor
or vendors of the same tangible |
18 | | personal property which such retailer bought
for resale and did |
19 | | not first use before selling it, and no penalty or
interest |
20 | | shall be charged to such retailer on the amount of such credit.
|
21 | | However, when such credit is allowed to the retailer by the |
22 | | Department, the
vendor is precluded from refunding any of that |
23 | | tax to the retailer and
filing a claim for credit or refund |
24 | | with respect thereto with the
Department. The provisions of |
25 | | this amendatory Act shall be applied
retroactively, regardless |
26 | | of the date of the transaction.
|