HB4234ham001 93RD GENERAL ASSEMBLY

Revenue Committee

Filed: 02/19/04

09300HB4234ham001 LRB093 16236 BDD 47515 a

AMENDMENT TO HOUSE BILL 4234

AMENDMENT NO. ______. Amend House Bill 4234 by replacing everything after the enacting clause with the following:

4		"Section 5. The Use Tax Act is amended by changing Section
5		3-85 as follows:
6		(35 ILCS 105/3-85)
7		Sec. 3-85. Manufacturer's Purchase Credit. For purchases
8		of machinery and equipment made on and after January 1, 1995
9		and through June 30, 2003, a purchaser of manufacturing
10		machinery and equipment that qualifies for the exemption
11		provided by paragraph (18) of Section 3-5 of this Act earns a
12		credit in an amount equal to a fixed percentage of the tax
13		which would have been incurred under this Act on those
14		purchases. For purchases of graphic arts machinery and
15		equipment made on or after July 1, 1996 and through June 30,
16		2003, a purchaser of graphic arts machinery and equipment that
17		qualifies for the exemption provided by paragraph (6) of
18		Section 3-5 of this Act earns a credit in an amount equal to a
19		fixed percentage of the tax that would have been incurred under
20		this Act on those purchases. The credit earned for purchases of
21		manufacturing machinery and equipment or graphic arts
22		machinery and equipment shall be referred to as the
23		Manufacturer's Purchase Credit. A graphic arts producer is a
24		person engaged in graphic arts production as defined in Section

1		2-30 of the Retailers' Occupation Tax Act. Beginning July 1,
2		1996, all references in this Section to manufacturers or
3		manufacturing shall also be deemed to refer to graphic arts
4		producers or graphic arts production.
5		The amount of credit shall be a percentage of the tax that
6		would have been incurred on the purchase of manufacturing
7		machinery and equipment or graphic arts machinery and equipment
8		if the exemptions provided by paragraph (6) or paragraph (18)
9		of Section 3-5 of this Act had not been applicable. The
10		percentage shall be as follows:
11		(1) 15% for purchases made on or before June 30, 1995.
12		(2) 25% for purchases made after June 30, 1995, and on
13		or before June 30, 1996.
14		(3) 40% for purchases made after June 30, 1996, and on
15		or before June 30, 1997.
16		(4) 50% for purchases made on or after July 1, 1997.
17		A purchaser of production related tangible personal
18		property desiring to use the Manufacturer's Purchase Credit
19		shall certify to the seller prior to October 1, 2005 2003 that
20		the purchaser is satisfying all or part of the liability under
21		the Use Tax Act or the Service Use Tax Act that is due on the
22		purchase of the production related tangible personal property
23		by use of Manufacturer's Purchase Credit. The Manufacturer's
24		Purchase Credit certification must be dated and shall include
25		the name and address of the purchaser, the purchaser's
26		registration number, if registered, the credit being applied,
27		and a statement that the State Use Tax or Service Use Tax
28		liability is being satisfied with the manufacturer's or graphic
29		arts producer's accumulated purchase credit. Certification may
30		be incorporated into the manufacturer's or graphic arts
31		producer's purchase order. Manufacturer's Purchase Credit
32		certification provided by the manufacturer or graphic arts
33		producer prior to October 1, 2005 2003 may be used to satisfy
34		the retailer's or serviceman's liability under the Retailers'

1		Occupation Tax Act or Service Occupation Tax Act for the credit
2		claimed, not to exceed 6.25% of the receipts subject to tax
3		from a qualifying purchase, but only if the retailer or
4		serviceman reports the Manufacturer's Purchase Credit claimed
5		as required by the Department. A Manufacturer's Purchase Credit
6		reported on any original or amended return filed under this Act
7		after October 20, 2005 2003 shall be disallowed. The
8		Manufacturer's Purchase Credit earned by purchase of exempt
9		manufacturing machinery and equipment or graphic arts
10		machinery and equipment is a non-transferable credit. A
11		manufacturer or graphic arts producer that enters into a
12		contract involving the installation of tangible personal
13		property into real estate within a manufacturing or graphic
14		arts production facility may, prior to October 1, 2005 2003,
15		authorize a construction contractor to utilize credit
16		accumulated by the manufacturer or graphic arts producer to
17		purchase the tangible personal property. A manufacturer or
18		graphic arts producer intending to use accumulated credit to
19		purchase such tangible personal property shall execute a
20		written contract authorizing the contractor to utilize a
21		specified dollar amount of credit. The contractor shall
22		furnish, prior to October 1, 2005 2003, the supplier with the
23		manufacturer's or graphic arts producer's name, registration
24		or resale number, and a statement that a specific amount of the
25		Use Tax or Service Use Tax liability, not to exceed 6.25% of
26		the selling price, is being satisfied with the credit. The
27		manufacturer or graphic arts producer shall remain liable to
28		timely report all information required by the annual Report of
29		Manufacturer's Purchase Credit Used for all credit utilized by
30		a construction contractor.
31		The Manufacturer's Purchase Credit may be used to satisfy
32		liability under the Use Tax Act or the Service Use Tax Act due
33		on the purchase of production related tangible personal
34		property (including purchases by a manufacturer, by a graphic

1		arts producer, or by a lessor who rents or leases the use of
2		the property to a manufacturer or graphic arts producer) that
3		does not otherwise qualify for the manufacturing machinery and
4		equipment exemption or the graphic arts machinery and equipment
5		exemption. "Production related tangible personal property"
6		means (i) all tangible personal property used or consumed by
7		the purchaser in a manufacturing facility in which a
8		manufacturing process described in Section 2-45 of the
9		Retailers' Occupation Tax Act takes place, including tangible
10		personal property purchased for incorporation into real estate
11		within a manufacturing facility and including, but not limited
12		to, tangible personal property used or consumed in activities
13		such as preproduction material handling, receiving, quality
14		control, inventory control, storage, staging, and packaging
15		for shipping and transportation purposes; (ii) all tangible
16		personal property used or consumed by the purchaser in a
17		graphic arts facility in which graphic arts production as
18		described in Section 2-30 of the Retailers' Occupation Tax Act
19		takes place, including tangible personal property purchased
20		for incorporation into real estate within a graphic arts
21		facility and including, but not limited to, all tangible
22		personal property used or consumed in activities such as
23		graphic arts preliminary or pre-press production,
24		pre-production material handling, receiving, quality control,
25		inventory control, storage, staging, sorting, labeling,
26		mailing, tying, wrapping, and packaging; and (iii) all tangible
27		personal property used or consumed by the purchaser for
28		research and development. "Production related tangible
29		personal property" does not include (i) tangible personal
30		property used, within or without a manufacturing facility, in
31		sales, purchasing, accounting, fiscal management, marketing,
32		personnel recruitment or selection, or landscaping or (ii)
33		tangible personal property required to be titled or registered
34		with a department, agency, or unit of federal, state, or local

1		government. The Manufacturer's Purchase Credit may be used,
2		prior to October 1, 2005 2003, to satisfy the tax arising
3		either from the purchase of machinery and equipment on or after
4		January 1, 1995 for which the exemption provided by paragraph
5		(18) of Section 3-5 of this Act was erroneously claimed, or the
6		purchase of machinery and equipment on or after July 1, 1996
7		for which the exemption provided by paragraph (6) of Section
8		3-5 of this Act was erroneously claimed, but not in
9		satisfaction of penalty, if any, and interest for failure to
10		pay the tax when due. A purchaser of production related
11		tangible personal property who is required to pay Illinois Use
12		Tax or Service Use Tax on the purchase directly to the
13		Department may, prior to October 1, 2005 2003, utilize the
14		Manufacturer's Purchase Credit in satisfaction of the tax
15		arising from that purchase, but not in satisfaction of penalty
16		and interest. A purchaser who uses the Manufacturer's Purchase
17		Credit to purchase property which is later determined not to be
18		production related tangible personal property may be liable for
19		tax, penalty, and interest on the purchase of that property as
20		of the date of purchase but shall be entitled to use the
21		disallowed Manufacturer's Purchase Credit, so long as it has
22		not expired and is used prior to October 1, 2005 2003, on
23		qualifying purchases of production related tangible personal
24		property not previously subject to credit usage. The
25		Manufacturer's Purchase Credit earned by a manufacturer or
26		graphic arts producer expires the last day of the second
27		calendar year following the calendar year in which the credit
28		arose. No Manufacturer's Purchase Credit may be used after
29		September 30, 2005 2003 regardless of when that credit was
30		earned.
31		A purchaser earning Manufacturer's Purchase Credit shall
32		sign and file an annual Report of Manufacturer's Purchase
33		Credit Earned for each calendar year no later than the last day
34		of the sixth month following the calendar year in which a

1		Manufacturer's Purchase Credit is earned. A Report of
2		Manufacturer's Purchase Credit Earned shall be filed on forms
3		as prescribed or approved by the Department and shall state,
4		for each month of the calendar year: (i) the total purchase
5		price of all purchases of exempt manufacturing or graphic arts
6		machinery on which the credit was earned; (ii) the total State
7		Use Tax or Service Use Tax which would have been due on those
8		items; (iii) the percentage used to calculate the amount of
9		credit earned; (iv) the amount of credit earned; and (v) such
10		other information as the Department may reasonably require. A
11		purchaser earning Manufacturer's Purchase Credit shall
12		maintain records which identify, as to each purchase of
13		manufacturing or graphic arts machinery and equipment on which
14		the purchaser earned Manufacturer's Purchase Credit, the
15		vendor (including, if applicable, either the vendor's
16		registration number or Federal Employer Identification
17		Number), the purchase price, and the amount of Manufacturer's
18		Purchase Credit earned on each purchase.
19		A purchaser using Manufacturer's Purchase Credit shall
20		sign and file an annual Report of Manufacturer's Purchase
21		Credit Used for each calendar year no later than the last day
22		of the sixth month following the calendar year in which a
23		Manufacturer's Purchase Credit is used. A Report of
24		Manufacturer's Purchase Credit Used shall be filed on forms as
25		prescribed or approved by the Department and shall state, for
26		each month of the calendar year: (i) the total purchase price
27		of production related tangible personal property purchased
28		from Illinois suppliers; (ii) the total purchase price of
29		production related tangible personal property purchased from
30		out-of-state suppliers; (iii) the total amount of credit used
31		during such month; and (iv) such other information as the
32		Department may reasonably require. A purchaser using
33		Manufacturer's Purchase Credit shall maintain records that
34		identify, as to each purchase of production related tangible

1		personal property on which the purchaser used Manufacturer's
2		Purchase Credit, the vendor (including, if applicable, either
3		the vendor's registration number or Federal Employer
4		Identification Number), the purchase price, and the amount of
5		Manufacturer's Purchase Credit used on each purchase.
6		No annual report shall be filed before May 1, 1996 or after
7		June 30, 2004. A purchaser that fails to file an annual Report
8		of Manufacturer's Purchase Credit Earned or an annual Report of
9		Manufacturer's Purchase Credit Used by the last day of the
10		sixth month following the end of the calendar year shall
11		forfeit all Manufacturer's Purchase Credit for that calendar
12		year unless it establishes that its failure to file was due to
13		reasonable cause. Manufacturer's Purchase Credit reports may
14		be amended to report and claim credit on qualifying purchases
15		not previously reported at any time before the credit would
16		have expired, unless both the Department and the purchaser have
17		agreed to an extension of the statute of limitations for the
18		issuance of a notice of tax liability as provided in Section 4
19		of the Retailers' Occupation Tax Act. If the time for
20		assessment or refund has been extended, then amended reports
21		for a calendar year may be filed at any time prior to the date
22		to which the statute of limitations for the calendar year or
23		portion thereof has been extended. No Manufacturer's Purchase
24		Credit report filed with the Department for periods prior to
25		January 1, 1995 shall be approved. Manufacturer's Purchase
26		Credit claimed on an amended report may be used, until October
27		1, 2005 2003, to satisfy tax liability under the Use Tax Act or
28		the Service Use Tax Act (i) on qualifying purchases of
29		production related tangible personal property made after the
30		date the amended report is filed or (ii) assessed by the
31		Department on qualifying purchases of production related
32		tangible personal property made in the case of manufacturers on
33		or after January 1, 1995, or in the case of graphic arts
34		producers on or after July 1, 1996.

1		If the purchaser is not the manufacturer or a graphic arts
2		producer, but rents or leases the use of the property to a
3		manufacturer or graphic arts producer, the purchaser may earn,
4		report, and use Manufacturer's Purchase Credit in the same
5		manner as a manufacturer or graphic arts producer.
6		A purchaser shall not be entitled to any Manufacturer's
7		Purchase Credit for a purchase that is required to be reported
8		and is not timely reported as provided in this Section. A
9		purchaser remains liable for (i) any tax that was satisfied by
10		use of a Manufacturer's Purchase Credit, as of the date of
11		purchase, if that use is not timely reported as required in
12		this Section and (ii) for any applicable penalties and interest
13		for failing to pay the tax when due. No Manufacturer's Purchase
14		Credit may be used after September 30, 2005 2003 to satisfy any
15		tax liability imposed under this Act, including any audit
16		liability.
17		(Source: P.A. 93-24, eff. 6-20-03.)

18		Section 10. The Service Use Tax Act is amended by changing
19		Section 3-70 as follows:
20		(35 ILCS 110/3-70)
21		Sec. 3-70. Manufacturer's Purchase Credit. For purchases
22		of machinery and equipment made on and after January 1, 1995
23		and through June 30, 2003, a purchaser of manufacturing
24		machinery and equipment that qualifies for the exemption
25		provided by Section 2 of this Act earns a credit in an amount
26		equal to a fixed percentage of the tax which would have been
27		incurred under this Act on those purchases. For purchases of
28		graphic arts machinery and equipment made on or after July 1,
29		1996 and through June 30, 2003, a purchase of graphic arts
30		machinery and equipment that qualifies for the exemption
31		provided by paragraph (5) of Section 3-5 of this Act earns a
32		credit in an amount equal to a fixed percentage of the tax that

1		would have been incurred under this Act on those purchases. The
2		credit earned for the purchase of manufacturing machinery and
3		equipment and graphic arts machinery and equipment shall be
4		referred to as the Manufacturer's Purchase Credit. A graphic
5		arts producer is a person engaged in graphic arts production as
6		defined in Section 3-30 of the Service Occupation Tax Act.
7		Beginning July 1, 1996, all references in this Section to
8		manufacturers or manufacturing shall also refer to graphic arts
9		producers or graphic arts production.
10		The amount of credit shall be a percentage of the tax that
11		would have been incurred on the purchase of the manufacturing
12		machinery and equipment or graphic arts machinery and equipment
13		if the exemptions provided by Section 2 or paragraph (5) of
14		Section 3-5 of this Act had not been applicable.
15		All purchases prior to October 1, 2003 of manufacturing
16		machinery and equipment and graphic arts machinery and
17		equipment that qualify for the exemptions provided by paragraph
18		(5) of Section 2 or paragraph (5) of Section 3-5 of this Act
19		qualify for the credit without regard to whether the serviceman
20		elected, or could have elected, under paragraph (7) of Section
21		2 of this Act to exclude the transaction from this Act. If the
22		serviceman's billing to the service customer separately states
23		a selling price for the exempt manufacturing machinery or
24		equipment or the exempt graphic arts machinery and equipment,
25		the credit shall be calculated, as otherwise provided herein,
26		based on that selling price. If the serviceman's billing does
27		not separately state a selling price for the exempt
28		manufacturing machinery and equipment or the exempt graphic
29		arts machinery and equipment, the credit shall be calculated,
30		as otherwise provided herein, based on 50% of the entire
31		billing. If the serviceman contracts to design, develop, and
32		produce special order manufacturing machinery and equipment or
33		special order graphic arts machinery and equipment, and the
34		billing does not separately state a selling price for such

1		special order machinery and equipment, the credit shall be
2		calculated, as otherwise provided herein, based on 50% of the
3		entire billing. The provisions of this paragraph are effective
4		for purchases made on or after January 1, 1995.
5		The percentage shall be as follows:
6		(1) 15% for purchases made on or before June 30, 1995.
7		(2) 25% for purchases made after June 30, 1995, and on
8		or before June 30, 1996.
9		(3) 40% for purchases made after June 30, 1996, and on
10		or before June 30, 1997.
11		(4) 50% for purchases made on or after July 1, 1997.
12		A purchaser of production related tangible personal
13		property desiring to use the Manufacturer's Purchase Credit
14		shall certify to the seller prior to October 1, 2005 2003 that
15		the purchaser is satisfying all or part of the liability under
16		the Use Tax Act or the Service Use Tax Act that is due on the
17		purchase of the production related tangible personal property
18		by use of a Manufacturer's Purchase Credit. The Manufacturer's
19		Purchase Credit certification must be dated and shall include
20		the name and address of the purchaser, the purchaser's
21		registration number, if registered, the credit being applied,
22		and a statement that the State Use Tax or Service Use Tax
23		liability is being satisfied with the manufacturer's or graphic
24		arts producer's accumulated purchase credit. Certification may
25		be incorporated into the manufacturer's or graphic arts
26		producer's purchase order. Manufacturer's Purchase Credit
27		certification provided by the manufacturer or graphic arts
28		producer prior to October 1, 2005 2003 may be used to satisfy
29		the retailer's or serviceman's liability under the Retailers'
30		Occupation Tax Act or Service Occupation Tax Act for the credit
31		claimed, not to exceed 6.25% of the receipts subject to tax
32		from a qualifying purchase, but only if the retailer or
33		serviceman reports the Manufacturer's Purchase Credit claimed
34		as required by the Department. A Manufacturer's Purchase Credit

1		reported on any original or amended return filed under this Act
2		after October 20, 2005 2003 shall be disallowed. The
3		Manufacturer's Purchase Credit earned by purchase of exempt
4		manufacturing machinery and equipment or graphic arts
5		machinery and equipment is a non-transferable credit. A
6		manufacturer or graphic arts producer that enters into a
7		contract involving the installation of tangible personal
8		property into real estate within a manufacturing or graphic
9		arts production facility, prior to October 1, 2005 2003, may
10		authorize a construction contractor to utilize credit
11		accumulated by the manufacturer or graphic arts producer to
12		purchase the tangible personal property. A manufacturer or
13		graphic arts producer intending to use accumulated credit to
14		purchase such tangible personal property shall execute a
15		written contract authorizing the contractor to utilize a
16		specified dollar amount of credit. The contractor shall
17		furnish, prior to October 1, 2005 2003, the supplier with the
18		manufacturer's or graphic arts producer's name, registration
19		or resale number, and a statement that a specific amount of the
20		Use Tax or Service Use Tax liability, not to exceed 6.25% of
21		the selling price, is being satisfied with the credit. The
22		manufacturer or graphic arts producer shall remain liable to
23		timely report all information required by the annual Report of
24		Manufacturer's Purchase Credit Used for credit utilized by a
25		construction contractor.
26		The Manufacturer's Purchase Credit may be used to satisfy
27		liability under the Use Tax Act or the Service Use Tax Act due
28		on the purchase of production related tangible personal
29		property (including purchases by a manufacturer, by a graphic
30		arts producer, or a lessor who rents or leases the use of the
31		property to a manufacturer or graphic arts producer) that does
32		not otherwise qualify for the manufacturing machinery and
33		equipment exemption or the graphic arts machinery and equipment
34		exemption. "Production related tangible personal property"

1		means (i) all tangible personal property used or consumed by
2		the purchaser in a manufacturing facility in which a
3		manufacturing process described in Section 2-45 of the
4		Retailers' Occupation Tax Act takes place, including tangible
5		personal property purchased for incorporation into real estate
6		within a manufacturing facility and including, but not limited
7		to, tangible personal property used or consumed in activities
8		such as pre-production material handling, receiving, quality
9		control, inventory control, storage, staging, and packaging
10		for shipping and transportation purposes; (ii) all tangible
11		personal property used or consumed by the purchaser in a
12		graphic arts facility in which graphic arts production as
13		described in Section 2-30 of the Retailers' Occupation Tax Act
14		takes place, including tangible personal property purchased
15		for incorporation into real estate within a graphic arts
16		facility and including, but not limited to, all tangible
17		personal property used or consumed in activities such as
18		graphic arts preliminary or pre-press production,
19		pre-production material handling, receiving, quality control,
20		inventory control, storage, staging, sorting, labeling,
21		mailing, tying, wrapping, and packaging; and (iii) all tangible
22		personal property used or consumed by the purchaser for
23		research and development. "Production related tangible
24		personal property" does not include (i) tangible personal
25		property used, within or without a manufacturing or graphic
26		arts facility, in sales, purchasing, accounting, fiscal
27		management, marketing, personnel recruitment or selection, or
28		landscaping or (ii) tangible personal property required to be
29		titled or registered with a department, agency, or unit of
30		federal, state, or local government. The Manufacturer's
31		Purchase Credit may be used, prior to October 1, 2005 2003, to
32		satisfy the tax arising either from the purchase of machinery
33		and equipment on or after January 1, 1995 for which the
34		manufacturing machinery and equipment exemption provided by

1		Section 2 of this Act was erroneously claimed, or the purchase
2		of machinery and equipment on or after July 1, 1996 for which
3		the exemption provided by paragraph (5) of Section 3-5 of this
4		Act was erroneously claimed, but not in satisfaction of
5		penalty, if any, and interest for failure to pay the tax when
6		due. A purchaser of production related tangible personal
7		property who is required to pay Illinois Use Tax or Service Use
8		Tax on the purchase directly to the Department may, prior to
9		October 1, 2005 2003, utilize the Manufacturer's Purchase
10		Credit in satisfaction of the tax arising from that purchase,
11		but not in satisfaction of penalty and interest. A purchaser
12		who uses the Manufacturer's Purchase Credit to purchase
13		property which is later determined not to be production related
14		tangible personal property may be liable for tax, penalty, and
15		interest on the purchase of that property as of the date of
16		purchase but shall be entitled to use the disallowed
17		Manufacturer's Purchase Credit, so long as it has not expired
18		and is used prior to October 1, 2005 2003, on qualifying
19		purchases of production related tangible personal property not
20		previously subject to credit usage. The Manufacturer's
21		Purchase Credit earned by a manufacturer or graphic arts
22		producer expires the last day of the second calendar year
23		following the calendar year in which the credit arose. No
24		Manufacturer's Purchase Credit may be used after September 30,
25		2005 2003 regardless of when that credit was earned.
26		A purchaser earning Manufacturer's Purchase Credit shall
27		sign and file an annual Report of Manufacturer's Purchase
28		Credit Earned for each calendar year no later than the last day
29		of the sixth month following the calendar year in which a
30		Manufacturer's Purchase Credit is earned. A Report of
31		Manufacturer's Purchase Credit Earned shall be filed on forms
32		as prescribed or approved by the Department and shall state,
33		for each month of the calendar year: (i) the total purchase
34		price of all purchases of exempt manufacturing or graphic arts

1		machinery on which the credit was earned; (ii) the total State
2		Use Tax or Service Use Tax which would have been due on those
3		items; (iii) the percentage used to calculate the amount of
4		credit earned; (iv) the amount of credit earned; and (v) such
5		other information as the Department may reasonably require. A
6		purchaser earning Manufacturer's Purchase Credit shall
7		maintain records which identify, as to each purchase of
8		manufacturing or graphic arts machinery and equipment on which
9		the purchaser earned Manufacturer's Purchase Credit, the
10		vendor (including, if applicable, either the vendor's
11		registration number or Federal Employer Identification
12		Number), the purchase price, and the amount of Manufacturer's
13		Purchase Credit earned on each purchase.
14		A purchaser using Manufacturer's Purchase Credit shall
15		sign and file an annual Report of Manufacturer's Purchase
16		Credit Used for each calendar year no later than the last day
17		of the sixth month following the calendar year in which a
18		Manufacturer's Purchase Credit is used. A Report of
19		Manufacturer's Purchase Credit Used shall be filed on forms as
20		prescribed or approved by the Department and shall state, for
21		each month of the calendar year: (i) the total purchase price
22		of production related tangible personal property purchased
23		from Illinois suppliers; (ii) the total purchase price of
24		production related tangible personal property purchased from
25		out-of-state suppliers; (iii) the total amount of credit used
26		during such month; and (iv) such other information as the
27		Department may reasonably require. A purchaser using
28		Manufacturer's Purchase Credit shall maintain records that
29		identify, as to each purchase of production related tangible
30		personal property on which the purchaser used Manufacturer's
31		Purchase Credit, the vendor (including, if applicable, either
32		the vendor's registration number or Federal Employer
33		Identification Number), the purchase price, and the amount of
34		Manufacturer's Purchase Credit used on each purchase.

1		No annual report shall be filed before May 1, 1996 or after
2		June 30, 2004. A purchaser that fails to file an annual Report
3		of Manufacturer's Purchase Credit Earned or an annual Report of
4		Manufacturer's Purchase Credit Used by the last day of the
5		sixth month following the end of the calendar year shall
6		forfeit all Manufacturer's Purchase Credit for that calendar
7		year unless it establishes that its failure to file was due to
8		reasonable cause. Manufacturer's Purchase Credit reports may
9		be amended to report and claim credit on qualifying purchases
10		not previously reported at any time before the credit would
11		have expired, unless both the Department and the purchaser have
12		agreed to an extension of the statute of limitations for the
13		issuance of a notice of tax liability as provided in Section 4
14		of the Retailers' Occupation Tax Act. If the time for
15		assessment or refund has been extended, then amended reports
16		for a calendar year may be filed at any time prior to the date
17		to which the statute of limitations for the calendar year or
18		portion thereof has been extended. No Manufacturer's Purchase
19		Credit report filed with the Department for periods prior to
20		January 1, 1995 shall be approved. Manufacturer's Purchase
21		Credit claimed on an amended report may be used, prior to
22		October 1, 2005 2003, to satisfy tax liability under the Use
23		Tax Act or the Service Use Tax Act (i) on qualifying purchases
24		of production related tangible personal property made after the
25		date the amended report is filed or (ii) assessed by the
26		Department on qualifying purchases of production related
27		tangible personal property made in the case of manufacturers on
28		or after January 1, 1995, or in the case of graphic arts
29		producers on or after July 1, 1996.
30		If the purchaser is not the manufacturer or a graphic arts
31		producer, but rents or leases the use of the property to a
32		manufacturer or a graphic arts producer, the purchaser may
33		earn, report, and use Manufacturer's Purchase Credit in the
34		same manner as a manufacturer or graphic arts producer.

1		A purchaser shall not be entitled to any Manufacturer's
2		Purchase Credit for a purchase that is required to be reported
3		and is not timely reported as provided in this Section. A
4		purchaser remains liable for (i) any tax that was satisfied by
5		use of a Manufacturer's Purchase Credit, as of the date of
6		purchase, if that use is not timely reported as required in
7		this Section and (ii) for any applicable penalties and interest
8		for failing to pay the tax when due. No Manufacturer's Purchase
9		Credit may be used after September 30, 2005 2003 to satisfy any
10		tax liability imposed under this Act, including any audit
11		liability.
12		(Source: P.A. 93-24, eff. 6-20-03.)

13		Section 15. The Service Occupation Tax Act is amended by
14		changing Section 9 as follows:
15		(35 ILCS 115/9) (from Ch. 120, par. 439.109)
16		Sec. 9. Each serviceman required or authorized to collect
17		the tax herein imposed shall pay to the Department the amount
18		of such tax at the time when he is required to file his return
19		for the period during which such tax was collectible, less a
20		discount of 2.1% prior to January 1, 1990, and 1.75% on and
21		after January 1, 1990, or $5 per calendar year, whichever is
22		greater, which is allowed to reimburse the serviceman for
23		expenses incurred in collecting the tax, keeping records,
24		preparing and filing returns, remitting the tax and supplying
25		data to the Department on request.
26		Where such tangible personal property is sold under a
27		conditional sales contract, or under any other form of sale
28		wherein the payment of the principal sum, or a part thereof, is
29		extended beyond the close of the period for which the return is
30		filed, the serviceman, in collecting the tax may collect, for
31		each tax return period, only the tax applicable to the part of
32		the selling price actually received during such tax return

1		period.
2		Except as provided hereinafter in this Section, on or
3		before the twentieth day of each calendar month, such
4		serviceman shall file a return for the preceding calendar month
5		in accordance with reasonable rules and regulations to be
6		promulgated by the Department of Revenue. Such return shall be
7		filed on a form prescribed by the Department and shall contain
8		such information as the Department may reasonably require.
9		The Department may require returns to be filed on a
10		quarterly basis. If so required, a return for each calendar
11		quarter shall be filed on or before the twentieth day of the
12		calendar month following the end of such calendar quarter. The
13		taxpayer shall also file a return with the Department for each
14		of the first two months of each calendar quarter, on or before
15		the twentieth day of the following calendar month, stating:
16		1. The name of the seller;
17		2. The address of the principal place of business from
18		which he engages in business as a serviceman in this State;
19		3. The total amount of taxable receipts received by him
20		during the preceding calendar month, including receipts
21		from charge and time sales, but less all deductions allowed
22		by law;
23		4. The amount of credit provided in Section 2d of this
24		Act;
25		5. The amount of tax due;
26		5-5. The signature of the taxpayer; and
27		6. Such other reasonable information as the Department
28		may require.
29		If a taxpayer fails to sign a return within 30 days after
30		the proper notice and demand for signature by the Department,
31		the return shall be considered valid and any amount shown to be
32		due on the return shall be deemed assessed.
33		Prior to October 1, 2005 2003, a serviceman may accept a
34		Manufacturer's Purchase Credit certification from a purchaser

1		in satisfaction of Service Use Tax as provided in Section 3-70
2		of the Service Use Tax Act if the purchaser provides the
3		appropriate documentation as required by Section 3-70 of the
4		Service Use Tax Act. A Manufacturer's Purchase Credit
5		certification, accepted prior to October 1, 2005 2003 by a
6		serviceman as provided in Section 3-70 of the Service Use Tax
7		Act, may be used by that serviceman to satisfy Service
8		Occupation Tax liability in the amount claimed in the
9		certification, not to exceed 6.25% of the receipts subject to
10		tax from a qualifying purchase. A Manufacturer's Purchase
11		Credit reported on any original or amended return filed under
12		this Act after October 20, 2005 2003 shall be disallowed. No
13		Manufacturer's Purchase Credit may be used after September 30,
14		2005 2003 to satisfy any tax liability imposed under this Act,
15		including any audit liability.
16		If the serviceman's average monthly tax liability to the
17		Department does not exceed $200, the Department may authorize
18		his returns to be filed on a quarter annual basis, with the
19		return for January, February and March of a given year being
20		due by April 20 of such year; with the return for April, May
21		and June of a given year being due by July 20 of such year; with
22		the return for July, August and September of a given year being
23		due by October 20 of such year, and with the return for
24		October, November and December of a given year being due by
25		January 20 of the following year.
26		If the serviceman's average monthly tax liability to the
27		Department does not exceed $50, the Department may authorize
28		his returns to be filed on an annual basis, with the return for
29		a given year being due by January 20 of the following year.
30		Such quarter annual and annual returns, as to form and
31		substance, shall be subject to the same requirements as monthly
32		returns.
33		Notwithstanding any other provision in this Act concerning
34		the time within which a serviceman may file his return, in the

1		case of any serviceman who ceases to engage in a kind of
2		business which makes him responsible for filing returns under
3		this Act, such serviceman shall file a final return under this
4		Act with the Department not more than 1 month after
5		discontinuing such business.
6		Beginning October 1, 1993, a taxpayer who has an average
7		monthly tax liability of $150,000 or more shall make all
8		payments required by rules of the Department by electronic
9		funds transfer. Beginning October 1, 1994, a taxpayer who has
10		an average monthly tax liability of $100,000 or more shall make
11		all payments required by rules of the Department by electronic
12		funds transfer. Beginning October 1, 1995, a taxpayer who has
13		an average monthly tax liability of $50,000 or more shall make
14		all payments required by rules of the Department by electronic
15		funds transfer. Beginning October 1, 2000, a taxpayer who has
16		an annual tax liability of $200,000 or more shall make all
17		payments required by rules of the Department by electronic
18		funds transfer. The term "annual tax liability" shall be the
19		sum of the taxpayer's liabilities under this Act, and under all
20		other State and local occupation and use tax laws administered
21		by the Department, for the immediately preceding calendar year.
22		The term "average monthly tax liability" means the sum of the
23		taxpayer's liabilities under this Act, and under all other
24		State and local occupation and use tax laws administered by the
25		Department, for the immediately preceding calendar year
26		divided by 12. Beginning on October 1, 2002, a taxpayer who has
27		a tax liability in the amount set forth in subsection (b) of
28		Section 2505-210 of the Department of Revenue Law shall make
29		all payments required by rules of the Department by electronic
30		funds transfer.
31		Before August 1 of each year beginning in 1993, the
32		Department shall notify all taxpayers required to make payments
33		by electronic funds transfer. All taxpayers required to make
34		payments by electronic funds transfer shall make those payments

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

1		form.
2		Where the serviceman has more than one business registered
3		with the Department under separate registrations hereunder,
4		such serviceman shall file separate returns for each registered
5		business.
6		Beginning January 1, 1990, each month the Department shall
7		pay into the Local Government Tax Fund the revenue realized for
8		the preceding month from the 1% tax on sales of food for human
9		consumption which is to be consumed off the premises where it
10		is sold (other than alcoholic beverages, soft drinks and food
11		which has been prepared for immediate consumption) and
12		prescription and nonprescription medicines, drugs, medical
13		appliances and insulin, urine testing materials, syringes and
14		needles used by diabetics.
15		Beginning January 1, 1990, each month the Department shall
16		pay into the County and Mass Transit District Fund 4% of the
17		revenue realized for the preceding month from the 6.25% general
18		rate.
19		Beginning August 1, 2000, each month the Department shall
20		pay into the County and Mass Transit District Fund 20% of the
21		net revenue realized for the preceding month from the 1.25%
22		rate on the selling price of motor fuel and gasohol.
23		Beginning January 1, 1990, each month the Department shall
24		pay into the Local Government Tax Fund 16% of the revenue
25		realized for the preceding month from the 6.25% general rate on
26		transfers of tangible personal property.
27		Beginning August 1, 2000, each month the Department shall
28		pay into the Local Government Tax Fund 80% of the net revenue
29		realized for the preceding month from the 1.25% rate on the
30		selling price of motor fuel and gasohol.
31		Of the remainder of the moneys received by the Department
32		pursuant to this Act, (a) 1.75% thereof shall be paid into the
33		Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
34		and after July 1, 1989, 3.8% thereof shall be paid into the

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

1		Bond Act is sufficient, taking into account any future
2		investment income, to fully provide, in accordance with such
3		indenture, for the defeasance of or the payment of the
4		principal of, premium, if any, and interest on the Bonds
5		secured by such indenture and on any Bonds expected to be
6		issued thereafter and all fees and costs payable with respect
7		thereto, all as certified by the Director of the Bureau of the
8		Budget (now Governor's Office of Management and Budget). If on
9		the last business day of any month in which Bonds are
10		outstanding pursuant to the Build Illinois Bond Act, the
11		aggregate of the moneys deposited in the Build Illinois Bond
12		Account in the Build Illinois Fund in such month shall be less
13		than the amount required to be transferred in such month from
14		the Build Illinois Bond Account to the Build Illinois Bond
15		Retirement and Interest Fund pursuant to Section 13 of the
16		Build Illinois Bond Act, an amount equal to such deficiency
17		shall be immediately paid from other moneys received by the
18		Department pursuant to the Tax Acts to the Build Illinois Fund;
19		provided, however, that any amounts paid to the Build Illinois
20		Fund in any fiscal year pursuant to this sentence shall be
21		deemed to constitute payments pursuant to clause (b) of the
22		preceding sentence and shall reduce the amount otherwise
23		payable for such fiscal year pursuant to clause (b) of the
24		preceding sentence. The moneys received by the Department
25		pursuant to this Act and required to be deposited into the
26		Build Illinois Fund are subject to the pledge, claim and charge
27		set forth in Section 12 of the Build Illinois Bond Act.
28		Subject to payment of amounts into the Build Illinois Fund
29		as provided in the preceding paragraph or in any amendment
30		thereto hereafter enacted, the following specified monthly
31		installment of the amount requested in the certificate of the
32		Chairman of the Metropolitan Pier and Exposition Authority
33		provided under Section 8.25f of the State Finance Act, but not
34		in excess of the sums designated as "Total Deposit", shall be

1		deposited in the aggregate from collections under Section 9 of
2		the Use Tax Act, Section 9 of the Service Use Tax Act, Section
3		9 of the Service Occupation Tax Act, and Section 3 of the
4		Retailers' Occupation Tax Act into the McCormick Place
5		Expansion Project Fund in the specified fiscal years.

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

1		preceding paragraphs or in any amendments thereto hereafter
2		enacted, beginning with the receipt of the first report of
3		taxes paid by an eligible business and continuing for a 25-year
4		period, the Department shall each month pay into the Energy
5		Infrastructure Fund 80% of the net revenue realized from the
6		6.25% general rate on the selling price of Illinois-mined coal
7		that was sold to an eligible business. For purposes of this
8		paragraph, the term "eligible business" means a new electric
9		generating facility certified pursuant to Section 605-332 of
10		the Department of Commerce and Economic Opportunity Community
11		Affairs Law of the Civil Administrative Code of Illinois.
12		Remaining moneys received by the Department pursuant to
13		this Act shall be paid into the General Revenue Fund of the
14		State Treasury.
15		The Department may, upon separate written notice to a
16		taxpayer, require the taxpayer to prepare and file with the
17		Department on a form prescribed by the Department within not
18		less than 60 days after receipt of the notice an annual
19		information return for the tax year specified in the notice.
20		Such annual return to the Department shall include a statement
21		of gross receipts as shown by the taxpayer's last Federal
22		income tax return. If the total receipts of the business as
23		reported in the Federal income tax return do not agree with the
24		gross receipts reported to the Department of Revenue for the
25		same period, the taxpayer shall attach to his annual return a
26		schedule showing a reconciliation of the 2 amounts and the
27		reasons for the difference. The taxpayer's annual return to the
28		Department shall also disclose the cost of goods sold by the
29		taxpayer during the year covered by such return, opening and
30		closing inventories of such goods for such year, cost of goods
31		used from stock or taken from stock and given away by the
32		taxpayer during such year, pay roll information of the
33		taxpayer's business during such year and any additional
34		reasonable information which the Department deems would be

1		helpful in determining the accuracy of the monthly, quarterly
2		or annual returns filed by such taxpayer as hereinbefore
3		provided for in this Section.
4		If the annual information return required by this Section
5		is not filed when and as required, the taxpayer shall be liable
6		as follows:
7		(i) Until January 1, 1994, the taxpayer shall be liable
8		for a penalty equal to 1/6 of 1% of the tax due from such
9		taxpayer under this Act during the period to be covered by
10		the annual return for each month or fraction of a month
11		until such return is filed as required, the penalty to be
12		assessed and collected in the same manner as any other
13		penalty provided for in this Act.
14		(ii) On and after January 1, 1994, the taxpayer shall
15		be liable for a penalty as described in Section 3-4 of the
16		Uniform Penalty and Interest Act.
17		The chief executive officer, proprietor, owner or highest
18		ranking manager shall sign the annual return to certify the
19		accuracy of the information contained therein. Any person who
20		willfully signs the annual return containing false or
21		inaccurate information shall be guilty of perjury and punished
22		accordingly. The annual return form prescribed by the
23		Department shall include a warning that the person signing the
24		return may be liable for perjury.
25		The foregoing portion of this Section concerning the filing
26		of an annual information return shall not apply to a serviceman
27		who is not required to file an income tax return with the
28		United States Government.
29		As soon as possible after the first day of each month, upon
30		certification of the Department of Revenue, the Comptroller
31		shall order transferred and the Treasurer shall transfer from
32		the General Revenue Fund to the Motor Fuel Tax Fund an amount
33		equal to 1.7% of 80% of the net revenue realized under this Act
34		for the second preceding month. Beginning April 1, 2000, this

1		transfer is no longer required and shall not be made.
2		Net revenue realized for a month shall be the revenue
3		collected by the State pursuant to this Act, less the amount
4		paid out during that month as refunds to taxpayers for
5		overpayment of liability.
6		For greater simplicity of administration, it shall be
7		permissible for manufacturers, importers and wholesalers whose
8		products are sold by numerous servicemen in Illinois, and who
9		wish to do so, to assume the responsibility for accounting and
10		paying to the Department all tax accruing under this Act with
11		respect to such sales, if the servicemen who are affected do
12		not make written objection to the Department to this
13		arrangement.
14		(Source: P.A. 92-12, eff. 7-1-01; 92-208, eff. 8-2-01; 92-492,
15		eff. 1-1-02; 92-600, eff. 6-28-02; 92-651, eff. 7-11-02; 93-24,
16		eff. 6-20-03; revised 10-15-03.)

17		Section 20. The Retailers' Occupation Tax Act is amended by
18		changing Section 3 as follows:
19		(35 ILCS 120/3) (from Ch. 120, par. 442)
20		Sec. 3. Except as provided in this Section, on or before
21		the twentieth day of each calendar month, every person engaged
22		in the business of selling tangible personal property at retail
23		in this State during the preceding calendar month shall file a
24		return with the Department, stating:
25		1. The name of the seller;
26		2. His residence address and the address of his
27		principal place of business and the address of the
28		principal place of business (if that is a different
29		address) from which he engages in the business of selling
30		tangible personal property at retail in this State;
31		3. Total amount of receipts received by him during the
32		preceding calendar month or quarter, as the case may be,

1		from sales of tangible personal property, and from services
2		furnished, by him during such preceding calendar month or
3		quarter;
4		4. Total amount received by him during the preceding
5		calendar month or quarter on charge and time sales of
6		tangible personal property, and from services furnished,
7		by him prior to the month or quarter for which the return
8		is filed;
9		5. Deductions allowed by law;
10		6. Gross receipts which were received by him during the
11		preceding calendar month or quarter and upon the basis of
12		which the tax is imposed;
13		7. The amount of credit provided in Section 2d of this
14		Act;
15		8. The amount of tax due;
16		9. The signature of the taxpayer; and
17		10. Such other reasonable information as the
18		Department may require.
19		If a taxpayer fails to sign a return within 30 days after
20		the proper notice and demand for signature by the Department,
21		the return shall be considered valid and any amount shown to be
22		due on the return shall be deemed assessed.
23		Each return shall be accompanied by the statement of
24		prepaid tax issued pursuant to Section 2e for which credit is
25		claimed.
26		Prior to October 1, 2005 2003, a retailer may accept a
27		Manufacturer's Purchase Credit certification from a purchaser
28		in satisfaction of Use Tax as provided in Section 3-85 of the
29		Use Tax Act if the purchaser provides the appropriate
30		documentation as required by Section 3-85 of the Use Tax Act. A
31		Manufacturer's Purchase Credit certification, accepted by a
32		retailer prior to October 1, 2005 2003 as provided in Section
33		3-85 of the Use Tax Act, may be used by that retailer to
34		satisfy Retailers' Occupation Tax liability in the amount

1		claimed in the certification, not to exceed 6.25% of the
2		receipts subject to tax from a qualifying purchase. A
3		Manufacturer's Purchase Credit reported on any original or
4		amended return filed under this Act after October 20, 2005 2003
5		shall be disallowed. No Manufacturer's Purchase Credit may be
6		used after September 30, 2005 2003 to satisfy any tax liability
7		imposed under this Act, including any audit liability.
8		The Department may require returns to be filed on a
9		quarterly basis. If so required, a return for each calendar
10		quarter shall be filed on or before the twentieth day of the
11		calendar month following the end of such calendar quarter. The
12		taxpayer shall also file a return with the Department for each
13		of the first two months of each calendar quarter, on or before
14		the twentieth day of the following calendar month, stating:
15		1. The name of the seller;
16		2. The address of the principal place of business from
17		which he engages in the business of selling tangible
18		personal property at retail in this State;
19		3. The total amount of taxable receipts received by him
20		during the preceding calendar month from sales of tangible
21		personal property by him during such preceding calendar
22		month, including receipts from charge and time sales, but
23		less all deductions allowed by law;
24		4. The amount of credit provided in Section 2d of this
25		Act;
26		5. The amount of tax due; and
27		6. Such other reasonable information as the Department
28		may require.
29		Beginning on October 1, 2003, any person who is not a
30		licensed distributor, importing distributor, or manufacturer,
31		as defined in the Liquor Control Act of 1934, but is engaged in
32		the business of selling, at retail, alcoholic liquor shall file
33		a statement with the Department of Revenue, in a format and at
34		a time prescribed by the Department, showing the total amount

1		paid for alcoholic liquor purchased during the preceding month
2		and such other information as is reasonably required by the
3		Department. The Department may adopt rules to require that this
4		statement be filed in an electronic or telephonic format. Such
5		rules may provide for exceptions from the filing requirements
6		of this paragraph. For the purposes of this paragraph, the term
7		"alcoholic liquor" shall have the meaning prescribed in the
8		Liquor Control Act of 1934.
9		Beginning on October 1, 2003, every distributor, importing
10		distributor, and manufacturer of alcoholic liquor as defined in
11		the Liquor Control Act of 1934, shall file a statement with the
12		Department of Revenue, no later than the 10th day of the month
13		for the preceding month during which transactions occurred, by
14		electronic means, showing the total amount of gross receipts
15		from the sale of alcoholic liquor sold or distributed during
16		the preceding month to purchasers; identifying the purchaser to
17		whom it was sold or distributed; the purchaser's tax
18		registration number; and such other information reasonably
19		required by the Department. A copy of the monthly statement
20		shall be sent to the retailer no later than the 10th day of the
21		month for the preceding month during which transactions
22		occurred.
23		If a total amount of less than $1 is payable, refundable or
24		creditable, such amount shall be disregarded if it is less than
25		50 cents and shall be increased to $1 if it is 50 cents or more.
26		Beginning October 1, 1993, a taxpayer who has an average
27		monthly tax liability of $150,000 or more shall make all
28		payments required by rules of the Department by electronic
29		funds transfer. Beginning October 1, 1994, a taxpayer who has
30		an average monthly tax liability of $100,000 or more shall make
31		all payments required by rules of the Department by electronic
32		funds transfer. Beginning October 1, 1995, a taxpayer who has
33		an average monthly tax liability of $50,000 or more shall make
34		all payments required by rules of the Department by electronic

1		funds transfer. Beginning October 1, 2000, a taxpayer who has
2		an annual tax liability of $200,000 or more shall make all
3		payments required by rules of the Department by electronic
4		funds transfer. The term "annual tax liability" shall be the
5		sum of the taxpayer's liabilities under this Act, and under all
6		other State and local occupation and use tax laws administered
7		by the Department, for the immediately preceding calendar year.
8		The term "average monthly tax liability" shall be the sum of
9		the taxpayer's liabilities under this Act, and under all other
10		State and local occupation and use tax laws administered by the
11		Department, for the immediately preceding calendar year
12		divided by 12. Beginning on October 1, 2002, a taxpayer who has
13		a tax liability in the amount set forth in subsection (b) of
14		Section 2505-210 of the Department of Revenue Law shall make
15		all payments required by rules of the Department by electronic
16		funds transfer.
17		Before August 1 of each year beginning in 1993, the
18		Department shall notify all taxpayers required to make payments
19		by electronic funds transfer. All taxpayers required to make
20		payments by electronic funds transfer shall make those payments
21		for a minimum of one year beginning on October 1.
22		Any taxpayer not required to make payments by electronic
23		funds transfer may make payments by electronic funds transfer
24		with the permission of the Department.
25		All taxpayers required to make payment by electronic funds
26		transfer and any taxpayers authorized to voluntarily make
27		payments by electronic funds transfer shall make those payments
28		in the manner authorized by the Department.
29		The Department shall adopt such rules as are necessary to
30		effectuate a program of electronic funds transfer and the
31		requirements of this Section.
32		Any amount which is required to be shown or reported on any
33		return or other document under this Act shall, if such amount
34		is not a whole-dollar amount, be increased to the nearest

1		whole-dollar amount in any case where the fractional part of a
2		dollar is 50 cents or more, and decreased to the nearest
3		whole-dollar amount where the fractional part of a dollar is
4		less than 50 cents.
5		If the retailer is otherwise required to file a monthly
6		return and if the retailer's average monthly tax liability to
7		the Department does not exceed $200, the Department may
8		authorize his returns to be filed on a quarter annual basis,
9		with the return for January, February and March of a given year
10		being due by April 20 of such year; with the return for April,
11		May and June of a given year being due by July 20 of such year;
12		with the return for July, August and September of a given year
13		being due by October 20 of such year, and with the return for
14		October, November and December of a given year being due by
15		January 20 of the following year.
16		If the retailer is otherwise required to file a monthly or
17		quarterly return and if the retailer's average monthly tax
18		liability with the Department does not exceed $50, the
19		Department may authorize his returns to be filed on an annual
20		basis, with the return for a given year being due by January 20
21		of the following year.
22		Such quarter annual and annual returns, as to form and
23		substance, shall be subject to the same requirements as monthly
24		returns.
25		Notwithstanding any other provision in this Act concerning
26		the time within which a retailer may file his return, in the
27		case of any retailer who ceases to engage in a kind of business
28		which makes him responsible for filing returns under this Act,
29		such retailer shall file a final return under this Act with the
30		Department not more than one month after discontinuing such
31		business.
32		Where the same person has more than one business registered
33		with the Department under separate registrations under this
34		Act, such person may not file each return that is due as a

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

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

1		sufficient identification of the property sold, and such other
2		information as the Department may reasonably require.
3		Such transaction reporting return shall be filed not later
4		than 20 days after the day of delivery of the item that is
5		being sold, but may be filed by the retailer at any time sooner
6		than that if he chooses to do so. The transaction reporting
7		return and tax remittance or proof of exemption from the
8		Illinois use tax may be transmitted to the Department by way of
9		the State agency with which, or State officer with whom the
10		tangible personal property must be titled or registered (if
11		titling or registration is required) if the Department and such
12		agency or State officer determine that this procedure will
13		expedite the processing of applications for title or
14		registration.
15		With each such transaction reporting return, the retailer
16		shall remit the proper amount of tax due (or shall submit
17		satisfactory evidence that the sale is not taxable if that is
18		the case), to the Department or its agents, whereupon the
19		Department shall issue, in the purchaser's name, a use tax
20		receipt (or a certificate of exemption if the Department is
21		satisfied that the particular sale is tax exempt) which such
22		purchaser may submit to the agency with which, or State officer
23		with whom, he must title or register the tangible personal
24		property that is involved (if titling or registration is
25		required) in support of such purchaser's application for an
26		Illinois certificate or other evidence of title or registration
27		to such tangible personal property.
28		No retailer's failure or refusal to remit tax under this
29		Act precludes a user, who has paid the proper tax to the
30		retailer, from obtaining his certificate of title or other
31		evidence of title or registration (if titling or registration
32		is required) upon satisfying the Department that such user has
33		paid the proper tax (if tax is due) to the retailer. The
34		Department shall adopt appropriate rules to carry out the

1		mandate of this paragraph.
2		If the user who would otherwise pay tax to the retailer
3		wants the transaction reporting return filed and the payment of
4		the tax or proof of exemption made to the Department before the
5		retailer is willing to take these actions and such user has not
6		paid the tax to the retailer, such user may certify to the fact
7		of such delay by the retailer and may (upon the Department
8		being satisfied of the truth of such certification) transmit
9		the information required by the transaction reporting return
10		and the remittance for tax or proof of exemption directly to
11		the Department and obtain his tax receipt or exemption
12		determination, in which event the transaction reporting return
13		and tax remittance (if a tax payment was required) shall be
14		credited by the Department to the proper retailer's account
15		with the Department, but without the 2.1% or 1.75% discount
16		provided for in this Section being allowed. When the user pays
17		the tax directly to the Department, he shall pay the tax in the
18		same amount and in the same form in which it would be remitted
19		if the tax had been remitted to the Department by the retailer.
20		Refunds made by the seller during the preceding return
21		period to purchasers, on account of tangible personal property
22		returned to the seller, shall be allowed as a deduction under
23		subdivision 5 of his monthly or quarterly return, as the case
24		may be, in case the seller had theretofore included the
25		receipts from the sale of such tangible personal property in a
26		return filed by him and had paid the tax imposed by this Act
27		with respect to such receipts.
28		Where the seller is a corporation, the return filed on
29		behalf of such corporation shall be signed by the president,
30		vice-president, secretary or treasurer or by the properly
31		accredited agent of such corporation.
32		Where the seller is a limited liability company, the return
33		filed on behalf of the limited liability company shall be
34		signed by a manager, member, or properly accredited agent of

1		the limited liability company.
2		Except as provided in this Section, the retailer filing the
3		return under this Section shall, at the time of filing such
4		return, pay to the Department the amount of tax imposed by this
5		Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
6		on and after January 1, 1990, or $5 per calendar year,
7		whichever is greater, which is allowed to reimburse the
8		retailer for the expenses incurred in keeping records,
9		preparing and filing returns, remitting the tax and supplying
10		data to the Department on request. Any prepayment made pursuant
11		to Section 2d of this Act shall be included in the amount on
12		which such 2.1% or 1.75% discount is computed. In the case of
13		retailers who report and pay the tax on a transaction by
14		transaction basis, as provided in this Section, such discount
15		shall be taken with each such tax remittance instead of when
16		such retailer files his periodic return.
17		Before October 1, 2000, if the taxpayer's average monthly
18		tax liability to the Department under this Act, the Use Tax
19		Act, the Service Occupation Tax Act, and the Service Use Tax
20		Act, excluding any liability for prepaid sales tax to be
21		remitted in accordance with Section 2d of this Act, was $10,000
22		or more during the preceding 4 complete calendar quarters, he
23		shall file a return with the Department each month by the 20th
24		day of the month next following the month during which such tax
25		liability is incurred and shall make payments to the Department
26		on or before the 7th, 15th, 22nd and last day of the month
27		during which such liability is incurred. On and after October
28		1, 2000, if the taxpayer's average monthly tax liability to the
29		Department under this Act, the Use Tax Act, the Service
30		Occupation Tax Act, and the Service Use Tax Act, excluding any
31		liability for prepaid sales tax to be remitted in accordance
32		with Section 2d of this Act, was $20,000 or more during the
33		preceding 4 complete calendar quarters, he shall file a return
34		with the Department each month by the 20th day of the month

1		next following the month during which such tax liability is
2		incurred and shall make payment to the Department on or before
3		the 7th, 15th, 22nd and last day of the month during which such
4		liability is incurred. If the month during which such tax
5		liability is incurred began prior to January 1, 1985, each
6		payment shall be in an amount equal to 1/4 of the taxpayer's
7		actual liability for the month or an amount set by the
8		Department not to exceed 1/4 of the average monthly liability
9		of the taxpayer to the Department for the preceding 4 complete
10		calendar quarters (excluding the month of highest liability and
11		the month of lowest liability in such 4 quarter period). If the
12		month during which such tax liability is incurred begins on or
13		after January 1, 1985 and prior to January 1, 1987, each
14		payment shall be in an amount equal to 22.5% of the taxpayer's
15		actual liability for the month or 27.5% of the taxpayer's
16		liability for the same calendar month of the preceding year. If
17		the month during which such tax liability is incurred begins on
18		or after January 1, 1987 and prior to January 1, 1988, each
19		payment shall be in an amount equal to 22.5% of the taxpayer's
20		actual liability for the month or 26.25% of the taxpayer's
21		liability for the same calendar month of the preceding year. If
22		the month during which such tax liability is incurred begins on
23		or after January 1, 1988, and prior to January 1, 1989, or
24		begins on or after January 1, 1996, each payment shall be in an
25		amount equal to 22.5% of the taxpayer's actual liability for
26		the month or 25% of the taxpayer's liability for the same
27		calendar month of the preceding year. If the month during which
28		such tax liability is incurred begins on or after January 1,
29		1989, and prior to January 1, 1996, each payment shall be in an
30		amount equal to 22.5% of the taxpayer's actual liability for
31		the month or 25% of the taxpayer's liability for the same
32		calendar month of the preceding year or 100% of the taxpayer's
33		actual liability for the quarter monthly reporting period. The
34		amount of such quarter monthly payments shall be credited

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

1		change in such taxpayer's reporting status. The Department
2		shall change such taxpayer's reporting status unless it finds
3		that such change is seasonal in nature and not likely to be
4		long term. If any such quarter monthly payment is not paid at
5		the time or in the amount required by this Section, then the
6		taxpayer shall be liable for penalties and interest on the
7		difference between the minimum amount due as a payment and the
8		amount of such quarter monthly payment actually and timely
9		paid, except insofar as the taxpayer has previously made
10		payments for that month to the Department in excess of the
11		minimum payments previously due as provided in this Section.
12		The Department shall make reasonable rules and regulations to
13		govern the quarter monthly payment amount and quarter monthly
14		payment dates for taxpayers who file on other than a calendar
15		monthly basis.
16		The provisions of this paragraph apply before October 1,
17		2001. Without regard to whether a taxpayer is required to make
18		quarter monthly payments as specified above, any taxpayer who
19		is required by Section 2d of this Act to collect and remit
20		prepaid taxes and has collected prepaid taxes which average in
21		excess of $25,000 per month during the preceding 2 complete
22		calendar quarters, shall file a return with the Department as
23		required by Section 2f and shall make payments to the
24		Department on or before the 7th, 15th, 22nd and last day of the
25		month during which such liability is incurred. If the month
26		during which such tax liability is incurred began prior to the
27		effective date of this amendatory Act of 1985, each payment
28		shall be in an amount not less than 22.5% of the taxpayer's
29		actual liability under Section 2d. If the month during which
30		such tax liability is incurred begins on or after January 1,
31		1986, each payment shall be in an amount equal to 22.5% of the
32		taxpayer's actual liability for the month or 27.5% of the
33		taxpayer's liability for the same calendar month of the
34		preceding calendar year. If the month during which such tax

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

1		monthly payments to the Department pursuant to this paragraph
2		shall continue until the taxpayer's average monthly prepaid tax
3		collections during the preceding 4 complete calendar quarters
4		(excluding the month of highest liability and the month of
5		lowest liability) is less than $19,000 or until such taxpayer's
6		average monthly liability to the Department as computed for
7		each calendar quarter of the 4 preceding complete calendar
8		quarters is less than $20,000. If any such quarter monthly
9		payment is not paid at the time or in the amount required, the
10		taxpayer shall be liable for penalties and interest on such
11		difference, except insofar as the taxpayer has previously made
12		payments for that month in excess of the minimum payments
13		previously due.
14		If any payment provided for in this Section exceeds the
15		taxpayer's liabilities under this Act, the Use Tax Act, the
16		Service Occupation Tax Act and the Service Use Tax Act, as
17		shown on an original monthly return, the Department shall, if
18		requested by the taxpayer, issue to the taxpayer a credit
19		memorandum no later than 30 days after the date of payment. The
20		credit evidenced by such credit memorandum may be assigned by
21		the taxpayer to a similar taxpayer under this Act, the Use Tax
22		Act, the Service Occupation Tax Act or the Service Use Tax Act,
23		in accordance with reasonable rules and regulations to be
24		prescribed by the Department. If no such request is made, the
25		taxpayer may credit such excess payment against tax liability
26		subsequently to be remitted to the Department under this Act,
27		the Use Tax Act, the Service Occupation Tax Act or the Service
28		Use Tax Act, in accordance with reasonable rules and
29		regulations prescribed by the Department. If the Department
30		subsequently determined that all or any part of the credit
31		taken was not actually due to the taxpayer, the taxpayer's 2.1%
32		and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
33		of the difference between the credit taken and that actually
34		due, and that taxpayer shall be liable for penalties and

1		interest on such difference.
2		If a retailer of motor fuel is entitled to a credit under
3		Section 2d of this Act which exceeds the taxpayer's liability
4		to the Department under this Act for the month which the
5		taxpayer is filing a return, the Department shall issue the
6		taxpayer a credit memorandum for the excess.
7		Beginning January 1, 1990, each month the Department shall
8		pay into the Local Government Tax Fund, a special fund in the
9		State treasury which is hereby created, the net revenue
10		realized for the preceding month from the 1% tax on sales of
11		food for human consumption which is to be consumed off the
12		premises where it is sold (other than alcoholic beverages, soft
13		drinks and food which has been prepared for immediate
14		consumption) and prescription and nonprescription medicines,
15		drugs, medical appliances and insulin, urine testing
16		materials, syringes and needles used by diabetics.
17		Beginning January 1, 1990, each month the Department shall
18		pay into the County and Mass Transit District Fund, a special
19		fund in the State treasury which is hereby created, 4% of the
20		net revenue realized for the preceding month from the 6.25%
21		general rate.
22		Beginning August 1, 2000, each month the Department shall
23		pay into the County and Mass Transit District Fund 20% of the
24		net revenue realized for the preceding month from the 1.25%
25		rate on the selling price of motor fuel and gasohol.
26		Beginning January 1, 1990, each month the Department shall
27		pay into the Local Government Tax Fund 16% of the net revenue
28		realized for the preceding month from the 6.25% general rate on
29		the selling price of tangible personal property.
30		Beginning August 1, 2000, each month the Department shall
31		pay into the Local Government Tax Fund 80% of the net revenue
32		realized for the preceding month from the 1.25% rate on the
33		selling price of motor fuel and gasohol.
34		Of the remainder of the moneys received by the Department

1		pursuant to this Act, (a) 1.75% thereof shall be paid into the
2		Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
3		and after July 1, 1989, 3.8% thereof shall be paid into the
4		Build Illinois Fund; provided, however, that if in any fiscal
5		year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
6		may be, of the moneys received by the Department and required
7		to be paid into the Build Illinois Fund pursuant to this Act,
8		Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
9		Act, and Section 9 of the Service Occupation Tax Act, such Acts
10		being hereinafter called the "Tax Acts" and such aggregate of
11		2.2% or 3.8%, as the case may be, of moneys being hereinafter
12		called the "Tax Act Amount", and (2) the amount transferred to
13		the Build Illinois Fund from the State and Local Sales Tax
14		Reform Fund shall be less than the Annual Specified Amount (as
15		hereinafter defined), an amount equal to the difference shall
16		be immediately paid into the Build Illinois Fund from other
17		moneys received by the Department pursuant to the Tax Acts; the
18		"Annual Specified Amount" means the amounts specified below for
19		fiscal years 1986 through 1993:
29		and means the Certified Annual Debt Service Requirement (as
30		defined in Section 13 of the Build Illinois Bond Act) or the
31		Tax Act Amount, whichever is greater, for fiscal year 1994 and
32		each fiscal year thereafter; and further provided, that if on
33		the last business day of any month the sum of (1) the Tax Act
34		Amount required to be deposited into the Build Illinois Bond

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

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

28		Beginning July 20, 1993 and in each month of each fiscal
29		year thereafter, one-eighth of the amount requested in the
30		certificate of the Chairman of the Metropolitan Pier and
31		Exposition Authority for that fiscal year, less the amount
32		deposited into the McCormick Place Expansion Project Fund by
33		the State Treasurer in the respective month under subsection
34		(g) of Section 13 of the Metropolitan Pier and Exposition

1		Authority Act, plus cumulative deficiencies in the deposits
2		required under this Section for previous months and years,
3		shall be deposited into the McCormick Place Expansion Project
4		Fund, until the full amount requested for the fiscal year, but
5		not in excess of the amount specified above as "Total Deposit",
6		has been deposited.
7		Subject to payment of amounts into the Build Illinois Fund
8		and the McCormick Place Expansion Project Fund pursuant to the
9		preceding paragraphs or in any amendments thereto hereafter
10		enacted, beginning July 1, 1993, the Department shall each
11		month pay into the Illinois Tax Increment Fund 0.27% of 80% of
12		the net revenue realized for the preceding month from the 6.25%
13		general rate on the selling price of tangible personal
14		property.
15		Subject to payment of amounts into the Build Illinois Fund
16		and the McCormick Place Expansion Project Fund pursuant to the
17		preceding paragraphs or in any amendments thereto hereafter
18		enacted, beginning with the receipt of the first report of
19		taxes paid by an eligible business and continuing for a 25-year
20		period, the Department shall each month pay into the Energy
21		Infrastructure Fund 80% of the net revenue realized from the
22		6.25% general rate on the selling price of Illinois-mined coal
23		that was sold to an eligible business. For purposes of this
24		paragraph, the term "eligible business" means a new electric
25		generating facility certified pursuant to Section 605-332 of
26		the Department of Commerce and Economic Opportunity Community
27		Affairs Law of the Civil Administrative Code of Illinois.
28		Of the remainder of the moneys received by the Department
29		pursuant to this Act, 75% thereof shall be paid into the State
30		Treasury and 25% shall be reserved in a special account and
31		used only for the transfer to the Common School Fund as part of
32		the monthly transfer from the General Revenue Fund in
33		accordance with Section 8a of the State Finance Act.
34		The Department may, upon separate written notice to a

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

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

1		local fairs, art shows, flea markets and similar exhibitions or
2		events, including any transient merchant as defined by Section
3		2 of the Transient Merchant Act of 1987, is required to file a
4		report with the Department providing the name of the merchant's
5		business, the name of the person or persons engaged in
6		merchant's business, the permanent address and Illinois
7		Retailers Occupation Tax Registration Number of the merchant,
8		the dates and location of the event and other reasonable
9		information that the Department may require. The report must be
10		filed not later than the 20th day of the month next following
11		the month during which the event with retail sales was held.
12		Any person who fails to file a report required by this Section
13		commits a business offense and is subject to a fine not to
14		exceed $250.
15		Any person engaged in the business of selling tangible
16		personal property at retail as a concessionaire or other type
17		of seller at the Illinois State Fair, county fairs, art shows,
18		flea markets and similar exhibitions or events, or any
19		transient merchants, as defined by Section 2 of the Transient
20		Merchant Act of 1987, may be required to make a daily report of
21		the amount of such sales to the Department and to make a daily
22		payment of the full amount of tax due. The Department shall
23		impose this requirement when it finds that there is a
24		significant risk of loss of revenue to the State at such an
25		exhibition or event. Such a finding shall be based on evidence
26		that a substantial number of concessionaires or other sellers
27		who are not residents of Illinois will be engaging in the
28		business of selling tangible personal property at retail at the
29		exhibition or event, or other evidence of a significant risk of
30		loss of revenue to the State. The Department shall notify
31		concessionaires and other sellers affected by the imposition of
32		this requirement. In the absence of notification by the
33		Department, the concessionaires and other sellers shall file
34		their returns as otherwise required in this Section.

1		(Source: P.A. 92-12, eff. 7-1-01; 92-16, eff. 6-28-01; 92-208,
2		eff. 8-2-01; 92-484, eff. 8-23-01; 92-492, eff. 1-1-02; 92-600,
3		eff. 6-28-02; 92-651, eff. 7-11-02; 93-22, eff. 6-20-03; 93-24,
4		eff. 6-20-03; revised 10-15-03.)

Section 99. Effective date. This Act takes effect upon becoming law.".