Full Text of SB2243 98th General Assembly
SB2243eng 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Retailers' Occupation Tax Act is amended by | 5 | | changing Section 2a as follows: | 6 | | (35 ILCS 120/2a) (from Ch. 120, par. 441a) | 7 | | Sec. 2a. It is unlawful for any person to engage in the | 8 | | business of
selling tangible personal property at retail in | 9 | | this State without a
certificate of registration from the | 10 | | Department. Application
for a certificate of registration | 11 | | shall be made to the Department upon
forms furnished by it. | 12 | | Each such application shall be signed and verified
and shall | 13 | | state: (1) the name and social security number of the
| 14 | | applicant; (2) the address of his principal place
of business; | 15 | | (3) the address of the principal place of business from which
| 16 | | he engages in the business of selling tangible personal | 17 | | property at retail
in this State and the addresses of all other | 18 | | places of business, if any
(enumerating such addresses, if any, | 19 | | in a separate list attached to and
made a part of the | 20 | | application), from which he engages in the business of
selling | 21 | | tangible personal property at retail in this State; (4)
the
| 22 | | name and address of the person or persons who will be | 23 | | responsible for
filing returns and payment of taxes due under |
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| 1 | | this Act; (5) in the case of a publicly-traded corporation, the | 2 | | name and title of each corporate officer, along with a copy of | 3 | | the corporation's most recently filed form 10-K required by the | 4 | | United States Securities and Exchange Commission, and in the
| 5 | | case of all other corporations
a corporation , the name, title, | 6 | | and social security number of
each corporate officer; (6) in | 7 | | the case of a limited liability
company, the
name, social | 8 | | security number, and FEIN number of
each
manager and member; | 9 | | and (7) such other information
as the Department may reasonably | 10 | | require. The application shall contain
an acceptance of | 11 | | responsibility signed by the person or persons who will be
| 12 | | responsible for filing returns and payment of the taxes due | 13 | | under this
Act. If the applicant will sell tangible personal | 14 | | property at retail
through vending machines, his application to | 15 | | register shall indicate the
number of vending machines to be so | 16 | | operated. If requested by the Department at any time, that | 17 | | person shall verify the total number of vending machines he or | 18 | | she uses in his or her business of selling tangible personal | 19 | | property at retail. | 20 | | The Department may deny a certificate of registration to | 21 | | any applicant
if the owner, any partner, any manager or member | 22 | | of a limited liability
company, or a corporate officer of the | 23 | | applicant, is or
has been the owner, a partner, a manager or | 24 | | member of a limited
liability company, or a corporate officer, | 25 | | of another retailer
that is in default for moneys due under | 26 | | this Act. |
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| 1 | | The Department may require an applicant for a certificate | 2 | | of registration hereunder to, at
the time of filing such | 3 | | application, furnish a bond from a surety company
authorized to | 4 | | do business in the State of Illinois, or an irrevocable
bank | 5 | | letter of credit or a bond signed by 2
personal sureties who | 6 | | have filed, with the Department, sworn statements
disclosing | 7 | | net assets equal to at least 3 times the amount of the bond to
| 8 | | be required of such applicant, or a bond secured by an | 9 | | assignment of a bank
account or certificate of deposit, stocks | 10 | | or bonds, conditioned upon the
applicant paying to the State of | 11 | | Illinois all moneys becoming due under
this Act and under any | 12 | | other State tax law or municipal or county tax
ordinance or | 13 | | resolution under which the certificate of registration that is
| 14 | | issued to the applicant under this Act will permit the | 15 | | applicant to engage
in business without registering separately | 16 | | under such other law, ordinance
or resolution. In making a | 17 | | determination as to whether to require a bond or other | 18 | | security, the Department shall take into consideration whether | 19 | | the owner, any partner, any manager or member of a limited | 20 | | liability company, or a corporate officer of the applicant is | 21 | | or has been the owner, a partner, a manager or member of a | 22 | | limited liability company, or a corporate officer of another | 23 | | retailer that is in default for moneys due under this Act or | 24 | | any other tax or fee Act administered by the Department; and | 25 | | whether the owner, any partner, any manager or member of a | 26 | | limited liability company, or a corporate officer of the |
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| 1 | | applicant is or has been the owner, a partner, a manager or | 2 | | member of a limited liability company, or a corporate officer | 3 | | of another retailer whose certificate of registration has been | 4 | | revoked within the previous 5 years under this Act or any other | 5 | | tax or fee Act administered by the Department. If a bond or | 6 | | other security is required, the Department shall fix the amount | 7 | | of the bond or other security, taking into consideration the | 8 | | amount of money expected to become due from the applicant under | 9 | | this Act and under any other State tax law or municipal or | 10 | | county tax ordinance or resolution under which the certificate | 11 | | of registration that is issued to the applicant under this Act | 12 | | will permit the applicant to engage in business without | 13 | | registering separately under such other law, ordinance, or | 14 | | resolution. The amount of security required by
the Department | 15 | | shall be such as, in its opinion, will protect the State of
| 16 | | Illinois against failure to pay the amount which may become due | 17 | | from the
applicant under this Act and under any other State tax | 18 | | law or municipal or
county tax ordinance or resolution under | 19 | | which the certificate of
registration that is issued to the | 20 | | applicant under this Act will permit the
applicant to engage in | 21 | | business without registering separately under such
other law, | 22 | | ordinance or resolution, but the amount of the security | 23 | | required
by the Department shall not exceed three times the | 24 | | amount of the
applicant's average monthly tax liability, or | 25 | | $50,000.00, whichever amount
is lower. | 26 | | No certificate of registration under this Act shall be |
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| 1 | | issued by the
Department until the applicant provides the | 2 | | Department with satisfactory
security, if required, as herein | 3 | | provided for. | 4 | | Upon receipt of the application for certificate of | 5 | | registration in
proper form, and upon approval by the | 6 | | Department of the security furnished
by the applicant, if | 7 | | required, the Department shall issue to such applicant a
| 8 | | certificate of registration which shall permit the person to | 9 | | whom it is
issued to engage in the business of selling tangible | 10 | | personal property at
retail in this State. The certificate of | 11 | | registration shall be
conspicuously displayed at the place of | 12 | | business which the person so
registered states in his | 13 | | application to be the principal place of business
from which he | 14 | | engages in the business of selling tangible personal property
| 15 | | at retail in this State. | 16 | | No certificate of registration issued to a taxpayer who | 17 | | files returns
required by this Act on a monthly basis shall be | 18 | | valid after the expiration
of 5 years from the date of its | 19 | | issuance or last renewal. The expiration
date of a | 20 | | sub-certificate of registration shall be that of the | 21 | | certificate
of registration to which the sub-certificate | 22 | | relates. A certificate of
registration shall automatically be | 23 | | renewed, subject to revocation as
provided by this Act, for an | 24 | | additional 5 years from the date of its
expiration unless | 25 | | otherwise notified by the Department as provided by this
| 26 | | paragraph. Where a taxpayer to whom a certificate of |
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| 1 | | registration is
issued under this Act is in default to the | 2 | | State of Illinois for delinquent
returns or for moneys due
| 3 | | under this Act or any other State tax law or municipal or | 4 | | county ordinance
administered or enforced by the Department, | 5 | | the Department shall, not less
than 120 days before the | 6 | | expiration date of such certificate of
registration, give | 7 | | notice to the taxpayer to whom the certificate was
issued of | 8 | | the account period of the delinquent returns, the amount of
| 9 | | tax,
penalty and interest due and owing from the
taxpayer, and | 10 | | that the certificate of registration shall not be
automatically | 11 | | renewed upon its expiration date unless the taxpayer, on or
| 12 | | before the date of expiration, has filed and paid the | 13 | | delinquent returns or
paid the defaulted amount in full. A
| 14 | | taxpayer to whom such a notice is issued shall be deemed an | 15 | | applicant for
renewal. The Department shall promulgate | 16 | | regulations establishing
procedures for taxpayers who file | 17 | | returns on a monthly basis but desire and
qualify to change to | 18 | | a quarterly or yearly filing basis and will no longer
be | 19 | | subject to renewal under this Section, and for taxpayers who | 20 | | file
returns on a yearly or quarterly basis but who desire or | 21 | | are required to
change to a monthly filing basis and will be | 22 | | subject to renewal under
this Section. | 23 | | The Department may in its discretion approve renewal by an | 24 | | applicant
who is in default if, at the time of application for | 25 | | renewal, the applicant
files all of the delinquent returns or | 26 | | pays to the Department such
percentage of the defaulted amount |
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| 1 | | as may be
determined by the Department and agrees in writing to | 2 | | waive all limitations
upon the Department for collection of the | 3 | | remaining defaulted amount to the
Department over a period not | 4 | | to exceed 5 years from the date of renewal of
the certificate; | 5 | | however, no renewal application submitted by an applicant
who | 6 | | is in default shall be approved if the immediately preceding | 7 | | renewal by
the applicant was conditioned upon the installment | 8 | | payment
agreement described in this Section. The payment | 9 | | agreement herein provided
for shall be in addition to and not | 10 | | in lieu of the security that may be required by
this Section of | 11 | | a taxpayer who is no longer considered a prior continuous
| 12 | | compliance taxpayer. The execution of the payment agreement as | 13 | | provided in
this Act shall not toll the accrual of interest at | 14 | | the statutory rate. | 15 | | The Department may suspend a certificate of registration if | 16 | | the Department finds that the person to whom the certificate of | 17 | | registration has been issued knowingly sold contraband | 18 | | cigarettes. | 19 | | A certificate of registration issued under this Act more | 20 | | than 5 years
before the effective date of this amendatory Act | 21 | | of 1989 shall expire and
be subject to the renewal provisions | 22 | | of this Section on the next
anniversary of the date of issuance | 23 | | of such certificate which occurs more
than 6 months after the | 24 | | effective date of this amendatory Act of 1989. A
certificate of | 25 | | registration issued less than 5 years before the effective
date | 26 | | of this amendatory Act of 1989 shall expire and be subject to |
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| 1 | | the
renewal provisions of this Section on the 5th anniversary | 2 | | of the issuance
of the certificate. | 3 | | If the person so registered states that he operates other | 4 | | places of
business from which he engages in the business of | 5 | | selling tangible personal
property at retail in this State, the | 6 | | Department shall furnish him with a
sub-certificate of | 7 | | registration for each such place of business, and the
applicant | 8 | | shall display the appropriate sub-certificate of registration | 9 | | at
each such place of business. All sub-certificates of | 10 | | registration shall
bear the same registration number as that | 11 | | appearing upon the certificate of
registration to which such | 12 | | sub-certificates relate. | 13 | | If the applicant will sell tangible personal property at | 14 | | retail through
vending machines, the Department shall furnish | 15 | | him with a sub-certificate
of registration for each such | 16 | | vending machine, and the applicant shall
display the | 17 | | appropriate sub-certificate of registration on each such
| 18 | | vending machine by attaching the sub-certificate of | 19 | | registration to a
conspicuous part of such vending machine. If | 20 | | a person who is registered to sell tangible personal property | 21 | | at retail through vending machines adds an additional vending | 22 | | machine or additional vending machines to the number of vending | 23 | | machines he or she uses in his or her business of selling | 24 | | tangible personal property at retail, he or she shall notify | 25 | | the Department, on a form prescribed by the Department, to | 26 | | request an additional sub-certificate or additional |
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| 1 | | sub-certificates of registration, as applicable. With each | 2 | | such request, the applicant shall report the number of | 3 | | sub-certificates of registration he or she is requesting as | 4 | | well as the total number of vending machines from which he or | 5 | | she makes retail sales. | 6 | | Where the same person engages in 2 or more businesses of | 7 | | selling
tangible personal property at retail in this State, | 8 | | which businesses are
substantially different in character or | 9 | | engaged in under different trade
names or engaged in under | 10 | | other substantially dissimilar circumstances (so
that it is | 11 | | more practicable, from an accounting, auditing or bookkeeping
| 12 | | standpoint, for such businesses to be separately registered), | 13 | | the
Department may require or permit such person (subject to | 14 | | the same
requirements concerning the furnishing of security as | 15 | | those that are
provided for hereinbefore in this Section as to | 16 | | each application for a
certificate of registration) to apply | 17 | | for and obtain a separate certificate
of registration for each | 18 | | such business or for any of such businesses, under
a single | 19 | | certificate of registration supplemented by related
| 20 | | sub-certificates of registration. | 21 | | Any person who is registered under the "Retailers' | 22 | | Occupation Tax Act"
as of March 8, 1963, and who, during the | 23 | | 3-year period immediately prior to
March 8, 1963, or during a | 24 | | continuous 3-year period part of which passed
immediately | 25 | | before and the remainder of which passes immediately after
| 26 | | March 8, 1963, has been so registered continuously and who is |
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| 1 | | determined by
the Department not to have been either delinquent | 2 | | or deficient in the
payment of tax liability during that period | 3 | | under this Act or under any
other State tax law or municipal or | 4 | | county tax ordinance or resolution
under which the certificate | 5 | | of registration that is issued to the
registrant under this Act | 6 | | will permit the registrant to engage in business
without | 7 | | registering separately under such other law, ordinance or
| 8 | | resolution, shall be considered to be a Prior Continuous | 9 | | Compliance
taxpayer. Also any taxpayer who has, as verified by | 10 | | the Department,
faithfully and continuously complied with the | 11 | | condition of his bond or
other security under the provisions of | 12 | | this Act for a period of 3
consecutive years shall be | 13 | | considered to be a Prior Continuous Compliance
taxpayer. | 14 | | Every Prior Continuous Compliance taxpayer shall be exempt | 15 | | from all
requirements under this Act concerning the furnishing | 16 | | of a bond or other security as a
condition precedent to his | 17 | | being authorized to engage in the business of
selling tangible | 18 | | personal property at retail in this State. This exemption
shall | 19 | | continue for each such taxpayer until such time as he may be
| 20 | | determined by the Department to be delinquent in the filing of | 21 | | any returns,
or is determined by the Department (either through | 22 | | the Department's
issuance of a final assessment which has | 23 | | become final under the Act, or by
the taxpayer's filing of a | 24 | | return which admits tax that is not paid to be
due) to be | 25 | | delinquent or deficient in the paying of any tax under this Act
| 26 | | or under any other State tax law or municipal or county tax |
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| 1 | | ordinance or
resolution under which the certificate of | 2 | | registration that is issued to
the registrant under this Act | 3 | | will permit the registrant to engage in
business without | 4 | | registering separately under such other law, ordinance or
| 5 | | resolution, at which time that taxpayer shall become subject to | 6 | | all the
financial responsibility requirements of this Act and, | 7 | | as a condition of
being allowed to continue to engage in the | 8 | | business of selling tangible
personal property at retail, may | 9 | | be required to post bond or other
acceptable security with the | 10 | | Department covering liability which such
taxpayer may | 11 | | thereafter incur. Any taxpayer who fails to pay an admitted or
| 12 | | established liability under this Act may also be required to | 13 | | post bond or
other acceptable security with this Department | 14 | | guaranteeing the payment of
such admitted or established | 15 | | liability. | 16 | | No certificate of registration shall be issued to any | 17 | | person who is in
default to the State of Illinois for moneys | 18 | | due under this Act or under any
other State tax law or | 19 | | municipal or county tax ordinance or resolution
under which the | 20 | | certificate of registration that is issued to the applicant
| 21 | | under this Act will permit the applicant to engage in business | 22 | | without
registering separately under such other law, ordinance | 23 | | or resolution. | 24 | | Any person aggrieved by any decision of the Department | 25 | | under this
Section may, within 20 days after notice of such | 26 | | decision, protest and
request a hearing, whereupon the |
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| 1 | | Department shall give notice to such
person of the time and | 2 | | place fixed for such hearing and shall hold a
hearing in | 3 | | conformity with the provisions of this Act and then issue its
| 4 | | final administrative decision in the matter to such person. In | 5 | | the absence
of such a protest within 20 days, the Department's | 6 | | decision shall become
final without any further determination | 7 | | being made or notice given. | 8 | | With respect to security other than bonds (upon which the | 9 | | Department may
sue in the event of a forfeiture), if the | 10 | | taxpayer fails to pay, when due,
any amount whose payment such | 11 | | security guarantees, the Department shall,
after such | 12 | | liability is admitted by the taxpayer or established by the
| 13 | | Department through the issuance of a final assessment that has | 14 | | become final
under the law, convert the security which that | 15 | | taxpayer has furnished into
money for the State, after first | 16 | | giving the taxpayer at least 10 days'
written notice, by | 17 | | registered or certified mail, to pay the liability or
forfeit | 18 | | such security to the Department. If the security consists of | 19 | | stocks
or bonds or other securities which are listed on a | 20 | | public exchange, the
Department shall sell such securities | 21 | | through such public exchange. If
the security consists of an | 22 | | irrevocable bank letter of credit, the
Department shall convert | 23 | | the security in the manner provided for in the
Uniform | 24 | | Commercial Code. If the security consists of a bank certificate | 25 | | of
deposit, the Department shall convert the security into | 26 | | money by demanding
and collecting the amount of such bank |
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| 1 | | certificate of deposit from the bank
which issued such | 2 | | certificate. If the security consists of a type of stocks
or | 3 | | other securities which are not listed on a public exchange, the
| 4 | | Department shall sell such security to the highest and best | 5 | | bidder after
giving at least 10 days' notice of the date, time | 6 | | and place of the intended
sale by publication in the "State | 7 | | Official Newspaper". If the Department
realizes more than the | 8 | | amount of such liability from the security, plus the
expenses | 9 | | incurred by the Department in converting the security into | 10 | | money,
the Department shall pay such excess to the taxpayer who | 11 | | furnished such
security, and the balance shall be paid into the | 12 | | State Treasury. | 13 | | The Department shall discharge any surety and shall release | 14 | | and return
any security deposited, assigned, pledged or | 15 | | otherwise provided to it by
a taxpayer under this Section | 16 | | within 30 days after: | 17 | | (1) such taxpayer becomes a Prior Continuous | 18 | | Compliance taxpayer; or | 19 | | (2) such taxpayer has ceased to collect receipts on | 20 | | which he is required
to remit tax to the Department, has | 21 | | filed a final tax return, and has paid
to the Department an | 22 | | amount sufficient to discharge his remaining tax
| 23 | | liability, as determined by the Department, under this Act | 24 | | and under every
other State tax law or municipal or county | 25 | | tax ordinance or resolution
under which the certificate of | 26 | | registration issued under this Act permits
the registrant |
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| 1 | | to engage in business without registering separately under
| 2 | | such other law, ordinance or resolution. The Department | 3 | | shall make a final
determination of the taxpayer's | 4 | | outstanding tax liability as expeditiously
as possible | 5 | | after his final tax return has been filed; if the | 6 | | Department
cannot make such final determination within 45 | 7 | | days after receiving the
final tax return, within such | 8 | | period it shall so notify the taxpayer,
stating its reasons | 9 | | therefor. | 10 | | (Source: P.A. 96-1355, eff. 7-28-10; 97-335, eff. 1-1-12.)
| 11 | | Section 99. Effective date. This Act takes effect upon | 12 | | becoming law.
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