Illinois General Assembly - Full Text of SB3960
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Full Text of SB3960  102nd General Assembly

SB3960 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3960

 

Introduced 1/21/2022, by Sen. Sara Feigenholtz

 

SYNOPSIS AS INTRODUCED:
 
235 ILCS 5/8-2  from Ch. 43, par. 159

     Amends the Liquor Control Act of 1934. Excludes new applicants for a manufacturer license or importing distributor license from provisions that require certain licensees to file a bond with the Department of Revenue. Effective immediately.


LRB102 19261 RPS 28027 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3960LRB102 19261 RPS 28027 b

1    AN ACT concerning liquor.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing Section 8-2 as follows:
 
6    (235 ILCS 5/8-2)  (from Ch. 43, par. 159)
7    Sec. 8-2. Payments; reports. It is the duty of each
8manufacturer with respect to alcoholic liquor produced or
9imported by such manufacturer, or purchased tax-free by such
10manufacturer from another manufacturer or importing
11distributor, and of each importing distributor as to alcoholic
12liquor purchased by such importing distributor from foreign
13importers or from anyone from any point in the United States
14outside of this State or purchased tax-free from another
15manufacturer or importing distributor, to pay the tax imposed
16by Section 8-1 to the Department of Revenue on or before the
1715th day of the calendar month following the calendar month in
18which such alcoholic liquor is sold or used by such
19manufacturer or by such importing distributor other than in an
20authorized tax-free manner or to pay that tax electronically
21as provided in this Section.
22    Each manufacturer and each importing distributor shall
23make payment under one of the following methods: (1) on or

 

 

SB3960- 2 -LRB102 19261 RPS 28027 b

1before the 15th day of each calendar month, file in person or
2by United States first-class mail, postage pre-paid, with the
3Department of Revenue, on forms prescribed and furnished by
4the Department, a report in writing in such form as may be
5required by the Department in order to compute, and assure the
6accuracy of, the tax due on all taxable sales and uses of
7alcoholic liquor occurring during the preceding month. Payment
8of the tax in the amount disclosed by the report shall
9accompany the report or, (2) on or before the 15th day of each
10calendar month, electronically file with the Department of
11Revenue, on forms prescribed and furnished by the Department,
12an electronic report in such form as may be required by the
13Department in order to compute, and assure the accuracy of,
14the tax due on all taxable sales and uses of alcoholic liquor
15occurring during the preceding month. An electronic payment of
16the tax in the amount disclosed by the report shall accompany
17the report. A manufacturer or distributor who files an
18electronic report and electronically pays the tax imposed
19pursuant to Section 8-1 to the Department of Revenue on or
20before the 15th day of the calendar month following the
21calendar month in which such alcoholic liquor is sold or used
22by that manufacturer or importing distributor other than in an
23authorized tax-free manner shall pay to the Department the
24amount of the tax imposed pursuant to Section 8-1, less a
25discount which is allowed to reimburse the manufacturer or
26importing distributor for the expenses incurred in keeping and

 

 

SB3960- 3 -LRB102 19261 RPS 28027 b

1maintaining records, preparing and filing the electronic
2returns, remitting the tax, and supplying data to the
3Department upon request.
4    The discount shall be in an amount as follows:
5        (1) For original returns due on or after January 1,
6    2003 through September 30, 2003, the discount shall be
7    1.75% or $1,250 per return, whichever is less;
8        (2) For original returns due on or after October 1,
9    2003 through September 30, 2004, the discount shall be 2%
10    or $3,000 per return, whichever is less; and
11        (3) For original returns due on or after October 1,
12    2004, the discount shall be 2% or $2,000 per return,
13    whichever is less.
14    The Department may, if it deems it necessary in order to
15insure the payment of the tax imposed by this Article, require
16returns to be made more frequently than and covering periods
17of less than a month. Such return shall contain such further
18information as the Department may reasonably require.
19    It shall be presumed that all alcoholic liquors acquired
20or made by any importing distributor or manufacturer have been
21sold or used by him in this State and are the basis for the tax
22imposed by this Article unless proven, to the satisfaction of
23the Department, that such alcoholic liquors are (1) still in
24the possession of such importing distributor or manufacturer,
25or (2) prior to the termination of possession have been lost by
26theft or through unintentional destruction, or (3) that such

 

 

SB3960- 4 -LRB102 19261 RPS 28027 b

1alcoholic liquors are otherwise exempt from taxation under
2this Act.
3    If any payment provided for in this Section exceeds the
4manufacturer's or importing distributor's liabilities under
5this Act, as shown on an original report, the manufacturer or
6importing distributor may credit such excess payment against
7liability subsequently to be remitted to the Department under
8this Act, in accordance with reasonable rules adopted by the
9Department. If the Department subsequently determines that all
10or any part of the credit taken was not actually due to the
11manufacturer or importing distributor, the manufacturer's or
12importing distributor's discount shall be reduced by an amount
13equal to the difference between the discount as applied to the
14credit taken and that actually due, and the manufacturer or
15importing distributor shall be liable for penalties and
16interest on such difference.
17    The Department may require any foreign importer to file
18monthly information returns, by the 15th day of the month
19following the month which any such return covers, if the
20Department determines this to be necessary to the proper
21performance of the Department's functions and duties under
22this Act. Such return shall contain such information as the
23Department may reasonably require.
24    Every manufacturer and importing distributor, except for a
25new applicant for a manufacturer license or importing
26distributor license or a manufacturer or importing distributor

 

 

SB3960- 5 -LRB102 19261 RPS 28027 b

1that in the preceding year had less than $50,000 of tax
2liability under this Article, shall also file, with the
3Department, a bond in an amount not less than $1,000 and not to
4exceed $100,000 on a form to be approved by, and with a surety
5or sureties satisfactory to, the Department. Such bond shall
6be conditioned upon the manufacturer or importing distributor
7paying to the Department all monies becoming due from such
8manufacturer or importing distributor under this Article. The
9Department shall fix the penalty of such bond in each case,
10taking into consideration the amount of alcoholic liquor
11expected to be sold and used by such manufacturer or importing
12distributor, and the penalty fixed by the Department shall be
13sufficient, in the Department's opinion, to protect the State
14of Illinois against failure to pay any amount due under this
15Article, but the amount of the penalty fixed by the Department
16shall not exceed twice the amount of tax liability of a monthly
17return, nor shall the amount of such penalty be less than
18$1,000. The Department shall notify the State Commission of
19the Department's approval or disapproval of any such
20manufacturer's or importing distributor's bond, or of the
21termination or cancellation of any such bond, or of the
22Department's direction to a manufacturer or importing
23distributor that he must file additional bond in order to
24comply with this Section. The Commission shall not issue a
25license to any applicant for a manufacturer's or importing
26distributor's license unless the Commission has received a

 

 

SB3960- 6 -LRB102 19261 RPS 28027 b

1notification from the Department showing that such applicant
2has filed a satisfactory bond with the Department hereunder
3and that such bond has been approved by the Department.
4Failure by any licensed manufacturer or importing distributor
5to keep a satisfactory bond in effect with the Department or to
6furnish additional bond to the Department, when required
7hereunder by the Department to do so, shall be grounds for the
8revocation or suspension of such manufacturer's or importing
9distributor's license by the Commission. If a manufacturer or
10importing distributor fails to pay any amount due under this
11Article, his bond with the Department shall be deemed
12forfeited, and the Department may institute a suit in its own
13name on such bond.
14    After notice and opportunity for a hearing the State
15Commission may revoke or suspend the license of any
16manufacturer or importing distributor who fails to comply with
17the provisions of this Section. Notice of such hearing and the
18time and place thereof shall be in writing and shall contain a
19statement of the charges against the licensee. Such notice may
20be given by United States registered or certified mail with
21return receipt requested, addressed to the person concerned at
22his last known address and shall be given not less than 7 days
23prior to the date fixed for the hearing. An order revoking or
24suspending a license under the provisions of this Section may
25be reviewed in the manner provided in Section 7-10 of this Act.
26No new license shall be granted to a person whose license has

 

 

SB3960- 7 -LRB102 19261 RPS 28027 b

1been revoked for a violation of this Section or, in case of
2suspension, shall such suspension be terminated until he has
3paid to the Department all taxes and penalties which he owes
4the State under the provisions of this Act.
5    Every manufacturer or importing distributor who has, as
6verified by the Department, continuously complied with the
7conditions of the bond under this Act for a period of 2 years
8shall be considered to be a prior continuous compliance
9taxpayer. In determining the consecutive period of time for
10qualification as a prior continuous compliance taxpayer, any
11consecutive period of time of qualifying compliance
12immediately prior to the effective date of this amendatory Act
13of 1987 shall be credited to any manufacturer or importing
14distributor.
15    A manufacturer or importing distributor that is a prior
16continuous compliance taxpayer under this Section and becomes
17a successor as the result of an acquisition, merger, or
18consolidation of a manufacturer or importing distributor shall
19be deemed to be a prior continuous compliance taxpayer with
20respect to the acquired, merged, or consolidated entity.
21    Every prior continuous compliance taxpayer shall be exempt
22from the bond requirements of this Act until the Department
23has determined the taxpayer to be delinquent in the filing of
24any return or deficient in the payment of any tax under this
25Act. Any taxpayer who fails to pay an admitted or established
26liability under this Act may also be required to post bond or

 

 

SB3960- 8 -LRB102 19261 RPS 28027 b

1other acceptable security with the Department guaranteeing the
2payment of such admitted or established liability.
3    The Department shall discharge any surety and shall
4release and return any bond or security deposit assigned,
5pledged or otherwise provided to it by a taxpayer under this
6Section within 30 days after: (1) such taxpayer becomes a
7prior continuous compliance taxpayer; or (2) such taxpayer has
8ceased to collect receipts on which he is required to remit tax
9to the Department, has filed a final tax return, and has paid
10to the Department an amount sufficient to discharge his
11remaining tax liability as determined by the Department under
12this Act.
13(Source: P.A. 100-1171, eff. 1-4-19; 101-37, eff. 7-3-19.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.