Full Text of SB0459 96th General Assembly
SB0459enr 96TH GENERAL ASSEMBLY
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Illinois Income Tax Act is amended by adding | 5 |
| Section 502.1 as follows: | 6 |
| (35 ILCS 5/502.1 new) | 7 |
| Sec. 502.1. Use tax. Beginning with taxable years ending on | 8 |
| or after December 31, 2010, individual purchasers with an | 9 |
| annual use tax liability that does not exceed $600 may, in lieu | 10 |
| of the filing and payment requirements of Section 10 of the Use | 11 |
| Tax Act, file and pay in compliance with this Section. | 12 |
| Beginning with taxable years ending on or after December | 13 |
| 31, 2010, the Department shall print on its standard individual | 14 |
| income tax form a provision indicating that if the taxpayer's | 15 |
| annual individual use tax liability does not exceed $600, he or | 16 |
| she may report and pay individual use tax liability at the same | 17 |
| time as his or her individual income tax liability. If the | 18 |
| taxpayer elects to report and pay his or her individual use tax | 19 |
| liability at the same time as his or her standard individual | 20 |
| income tax liability in accordance with this Section, then the | 21 |
| use tax shown due on the return may be (i) treated as being due | 22 |
| at the same time as the income tax obligation, (ii) assessed, | 23 |
| collected, and deposited in the same manner as income taxes, |
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| and (iii) treated as an income tax liability for all purposes. | 2 |
| The individual income tax return instructions shall | 3 |
| include information explaining the tax imposed under the Use | 4 |
| Tax Act and informing taxpayers how to report and pay their use | 5 |
| tax obligations, including specific information on how to | 6 |
| report and pay individual use tax at the same time as the | 7 |
| individual income tax return is filed. | 8 |
| This Section shall not apply to any amended return. | 9 |
| Section 10. The Use Tax Act is amended by changing Section | 10 |
| 10 and by adding Section 10.5 as follows: | 11 |
| (35 ILCS 105/10) (from Ch. 120, par. 439.10) | 12 |
| Sec. 10. Except as to motor vehicles, aircraft, watercraft, | 13 |
| and
trailers, and except as to cigarettes as defined in the | 14 |
| Cigarette Use Tax Act , when tangible personal
property is
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| purchased from a retailer for use in this State by a purchaser
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| who did not pay the tax imposed by this Act to the retailer, | 17 |
| and who does not
file returns with the Department as a retailer | 18 |
| under Section 9 of this
Act, such purchaser (by the last day of | 19 |
| the month following the calendar
month in which such purchaser | 20 |
| makes any payment upon the selling price of
such property) | 21 |
| shall, except as otherwise provided in this Section, file
a | 22 |
| return with the Department and pay the tax upon that portion of | 23 |
| the
selling price so paid by the purchaser during the preceding | 24 |
| calendar month.
When tangible personal property, including but |
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| not limited to motor vehicles
and aircraft, is purchased by a | 2 |
| lessor, under a lease for
one year or longer, executed or in | 3 |
| effect at the time of purchase to an
interstate carrier for | 4 |
| hire, who did not pay the tax imposed by this Act to the
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| retailer, such lessor (by the last day of the month following | 6 |
| the calendar
month in which such property reverts to the use of | 7 |
| such lessor) shall file
a return with the Department and pay | 8 |
| the tax upon the fair market value of
such property on the date | 9 |
| of such reversion.
However, in determining the fair market | 10 |
| value at the time of reversion, the
fair market value of such | 11 |
| property shall not exceed the original purchase price
of the | 12 |
| property that was paid by the lessor at the time of purchase.
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| Such return shall be filed on
a form prescribed by the | 14 |
| Department and shall contain such information as
the Department | 15 |
| may reasonably require. Such return and payment from the
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| purchaser shall be submitted to the Department sooner than the | 17 |
| last day of
the month after the month in which the purchase is | 18 |
| made to the extent that
that may be necessary in order to | 19 |
| secure the title to a motor vehicle or
the certificate of | 20 |
| registration for an aircraft. However, except as to motor
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| vehicles and aircraft, and except as to cigarettes as defined | 22 |
| in the Cigarette Use Tax Act, if the
purchaser's annual use tax | 23 |
| liability does not exceed $600, the purchaser
may file the | 24 |
| return on an annual basis on or before April 15th of the year
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| following the year use tax liability was incurred. Individual | 26 |
| purchasers with an annual use tax liability that does not |
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| exceed $600 may, in lieu of the filing and payment requirements | 2 |
| in this Section, file and pay in compliance with Section 502.1 | 3 |
| of the Illinois Income Tax Act. | 4 |
| If cigarettes, as defined in the Cigarette Use Tax Act, are | 5 |
| purchased from a retailer for use in this State by a purchaser | 6 |
| who did not pay the tax imposed by this Act to the retailer, | 7 |
| and who does not file returns with the Department as a retailer | 8 |
| under Section 9 of this Act, such purchaser must, within 30 | 9 |
| days after acquiring the cigarettes, file a return with the | 10 |
| Department and pay the tax upon that portion of the selling | 11 |
| price so paid by the purchaser for the cigarettes. | 12 |
| In addition with respect to motor vehicles,
aircraft, | 13 |
| watercraft, and trailers, a purchaser of such tangible personal
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| property for use in this
State, who purchases such tangible | 15 |
| personal property from an out-of-state
retailer, shall file | 16 |
| with the Department, upon a form to be prescribed and
supplied | 17 |
| by the Department, a return for each such item of tangible
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| personal property purchased, except that if, in the same | 19 |
| transaction, (i) a
purchaser of motor vehicles,
aircraft, | 20 |
| watercraft, or trailers who is a retailer of motor vehicles,
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| aircraft, watercraft, or trailers purchases more than one motor | 22 |
| vehicle,
aircraft, watercraft, or trailer for the purpose of | 23 |
| resale or (ii) a purchaser
of motor vehicles, aircraft, | 24 |
| watercraft, or trailers purchases more
than one motor vehicle, | 25 |
| aircraft, watercraft, or trailer for use as qualifying
rolling | 26 |
| stock as provided in Section 3-55 of this Act, then the |
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| purchaser may
report the purchase of all motor vehicles, | 2 |
| aircraft, watercraft, or trailers
involved in that transaction | 3 |
| to the Department on a single return prescribed by
the | 4 |
| Department. Such return in the case of motor vehicles and
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| aircraft must show the name and address of the seller, the | 6 |
| name, address of
purchaser, the amount of the selling price | 7 |
| including the amount allowed by
the retailer for traded in | 8 |
| property, if any; the amount allowed by the
retailer for the | 9 |
| traded-in tangible personal property, if any, to the
extent to | 10 |
| which Section 2 of this Act allows an exemption for the value | 11 |
| of
traded-in property; the balance payable after deducting such | 12 |
| trade-in
allowance from the total selling price; the amount of | 13 |
| tax due from the
purchaser with respect to such transaction; | 14 |
| the amount of tax collected
from the purchaser by the retailer | 15 |
| on such transaction (or satisfactory
evidence that such tax is | 16 |
| not due in that particular instance if that is
claimed to be | 17 |
| the fact); the place and date of the sale, a sufficient
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| identification of the property sold, and such other information | 19 |
| as the
Department may reasonably require. | 20 |
| Such return shall be filed not later than 30 days after | 21 |
| such motor
vehicle or aircraft is brought into this State for | 22 |
| use. | 23 |
| For purposes of this Section, "watercraft" means a Class 2, | 24 |
| Class 3, or
Class 4 watercraft as defined in Section 3-2 of the | 25 |
| Boat Registration and
Safety Act, a personal watercraft, or any | 26 |
| boat equipped with an inboard
motor. |
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| The return and tax remittance or proof of exemption from | 2 |
| the tax that is
imposed by this Act may be transmitted to the | 3 |
| Department by way of the
State agency with which, or State | 4 |
| officer with whom, the tangible personal
property must be | 5 |
| titled or registered (if titling or registration is
required) | 6 |
| if the Department and such agency or State officer determine | 7 |
| that
this procedure will expedite the processing of | 8 |
| applications for title or
registration. | 9 |
| With each such return, the purchaser shall remit the proper | 10 |
| amount of tax
due (or shall submit satisfactory evidence that | 11 |
| the sale is not taxable if
that is the case), to the Department | 12 |
| or its agents, whereupon the
Department shall issue, in the | 13 |
| purchaser's name, a tax receipt (or a
certificate of exemption | 14 |
| if the Department is satisfied that the particular
sale is tax | 15 |
| exempt) which such purchaser may submit to the agency with
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| which, or State officer with whom, he must title or register | 17 |
| the tangible
personal property that is involved (if titling or | 18 |
| registration is required)
in support of such purchaser's | 19 |
| application for an Illinois certificate or
other evidence of | 20 |
| title or registration to such tangible personal property. | 21 |
| When a purchaser pays a tax imposed by this Act directly to | 22 |
| the Department,
the Department (upon request therefor from such | 23 |
| purchaser) shall issue an
appropriate receipt to such purchaser | 24 |
| showing that he has paid such tax to
the Department. Such | 25 |
| receipt shall be sufficient to relieve the purchaser
from | 26 |
| further liability for the tax to which such receipt may refer. |
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| A user who is liable to pay use tax directly to the | 2 |
| Department only
occasionally and not on a frequently recurring | 3 |
| basis, and who is not
required to file returns with the | 4 |
| Department as a retailer under Section 9
of this Act, or under | 5 |
| the "Retailers' Occupation Tax Act", or as a
registrant with | 6 |
| the Department under the "Service Occupation Tax Act" or
the | 7 |
| "Service Use Tax Act", need not register with the Department.
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| However, if such a user has a frequently recurring direct use | 9 |
| tax liability
to pay to the Department, such user shall be | 10 |
| required to register with the
Department on forms prescribed by | 11 |
| the Department and to obtain and display
a certificate of | 12 |
| registration from the Department. In that event, all of
the | 13 |
| provisions of Section 9 of this Act concerning the filing of | 14 |
| regular
monthly, quarterly or annual tax returns and all of the | 15 |
| provisions of
Section 2a of the "Retailers' Occupation Tax Act" | 16 |
| concerning the
requirements for registrants to post bond or | 17 |
| other security with the
Department, as the provisions of such | 18 |
| sections now exist or may hereafter
be amended, shall apply to | 19 |
| such users to the same extent as if such
provisions were | 20 |
| included herein. | 21 |
| (Source: P.A. 96-520, eff. 8-14-09; revised 10-30-09.) | 22 |
| (35 ILCS 105/10.5 new) | 23 |
| Sec. 10.5. Individual use tax amnesty. The Department shall | 24 |
| establish an amnesty program for all individual taxpayers owing | 25 |
| any tax imposed under this Act for their purchases of tangible |
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| personal property from a retailer for use in this State | 2 |
| (eligible taxes). The amnesty program shall be for a period | 3 |
| from January 1, 2011 through October 15, 2011. The amnesty | 4 |
| program shall provide that, upon payment by an individual | 5 |
| taxpayer of all eligible taxes due from that taxpayer under | 6 |
| this Act for any taxable period ending after June 30, 2004 and | 7 |
| prior to January 1, 2011, the Department shall abate and not | 8 |
| seek to collect any interest or penalties that may be | 9 |
| applicable and the Department shall not seek civil or criminal | 10 |
| prosecution for any taxpayer for these taxes for the period of | 11 |
| time for which amnesty has been granted to the taxpayer. | 12 |
| Failure to pay all eligible taxes due to the State for a | 13 |
| taxable period shall invalidate any amnesty granted under this | 14 |
| Section. Amnesty shall be granted only if all amnesty | 15 |
| conditions are satisfied by the taxpayer. | 16 |
| Amnesty shall not be granted to business taxpayers. Amnesty | 17 |
| shall not be granted to taxpayers who are a party to any | 18 |
| criminal investigation or to any civil or criminal litigation | 19 |
| that is pending in any circuit court or appellate court or the | 20 |
| Supreme Court of this State for nonpayment, delinquency, or | 21 |
| fraud in relation to eligible taxes under this Act. Amnesty | 22 |
| shall not be granted to any taxpayer who is under audit for | 23 |
| eligible taxes or who is contacted in writing by the Department | 24 |
| concerning eligible taxes prior to the taxpayer reporting and | 25 |
| paying the eligible taxes. | 26 |
| Voluntary payments made under this Section shall be made by |
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| cash, check, guaranteed remittance, or ACH debit.
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| Section 99. Effective date. This Act takes effect upon | 3 |
| becoming law.
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