Full Text of SB2933 99th General Assembly
SB2933 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 SB2933 Introduced 2/18/2016, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED: |
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35 ILCS 120/11 | from Ch. 120, par. 450 |
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Amends the Retailers' Occupation Tax Act. Provides that, subject to certain restrictions, if the Department may disclose confidential financial information to a municipality, then the Department may also disclose that financial information to an independent third party who is authorized in writing by that municipality to receive the information.
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| | A BILL FOR |
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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 11 as follows:
| 6 | | (35 ILCS 120/11) (from Ch. 120, par. 450)
| 7 | | Sec. 11. All information received by the Department from | 8 | | returns filed
under this Act, or from any investigation | 9 | | conducted under this Act, shall
be confidential, except for | 10 | | official purposes, and any person , including an eligible third | 11 | | party, who divulges
any such information in any manner, except | 12 | | in accordance with a proper
judicial order or as otherwise | 13 | | provided by law, shall be guilty of a Class
B misdemeanor with | 14 | | a fine not to exceed $7,500.
| 15 | | Nothing in this Act prevents the Director of Revenue from | 16 | | publishing or
making available to the public the names and | 17 | | addresses of persons filing
returns under this Act, or | 18 | | reasonable statistics concerning the operation
of the tax by | 19 | | grouping the contents of returns so the information in any
| 20 | | individual return is not disclosed.
| 21 | | Nothing in this Act prevents the Director of Revenue from | 22 | | divulging to
the United States Government or the government of | 23 | | any other state, or any
officer or agency thereof, for |
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| 1 | | exclusively official purposes, information
received by the | 2 | | Department in administering this Act, provided that such
other | 3 | | governmental agency agrees to divulge requested tax | 4 | | information to
the Department.
| 5 | | The Department's furnishing of information derived from a | 6 | | taxpayer's
return or from an investigation conducted under this | 7 | | Act to the surety on a
taxpayer's bond that has been furnished | 8 | | to the Department under this Act,
either to provide notice to | 9 | | such surety of its potential liability under
the bond or, in | 10 | | order to support the Department's demand for payment from
such | 11 | | surety under the bond, is an official purpose within the | 12 | | meaning of
this Section.
| 13 | | The furnishing upon request of information obtained by the | 14 | | Department
from returns filed under this Act or investigations | 15 | | conducted under this
Act to the Illinois Liquor Control | 16 | | Commission for official use is deemed to
be an official purpose | 17 | | within the meaning of this Section.
| 18 | | Notice to a surety of potential liability shall not be | 19 | | given unless the
taxpayer has first been notified, not less | 20 | | than 10 days prior thereto, of
the Department's intent to so | 21 | | notify the surety.
| 22 | | The furnishing upon request of the Auditor General, or his | 23 | | authorized agents,
for official use, of returns filed and | 24 | | information related thereto under
this Act is deemed to be an | 25 | | official purpose within the meaning of this
Section.
| 26 | | Where an appeal or a protest has been filed on behalf of a |
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| 1 | | taxpayer, the
furnishing upon request of the attorney for the | 2 | | taxpayer of returns filed
by the taxpayer and information | 3 | | related thereto under this Act is deemed
to be an official | 4 | | purpose within the meaning of this Section.
| 5 | | The furnishing of financial information to a municipality, | 6 | | upon request of the Chief
Executive thereof, including the | 7 | | furnishing of financial information to an eligible third party | 8 | | as provided in this paragraph, is an official purpose within | 9 | | the meaning of this Section,
provided the municipality and, if | 10 | | applicable, the eligible third party agree agrees in
writing to | 11 | | the requirements of this Section. Information provided to | 12 | | municipalities under this paragraph shall be limited to: (1) | 13 | | the business name; (2) the business address; (3) net revenue | 14 | | distributed to the requesting municipality that is directly | 15 | | related to the requesting municipality's local share of the | 16 | | proceeds under the Use Tax Act, the Service Use Tax Act, the | 17 | | Service Occupation Tax Act, and the Retailers' Occupation Tax | 18 | | Act, and, if applicable, any locally imposed retailers' | 19 | | occupation tax or service occupation tax; and (4) a listing of | 20 | | all businesses within the requesting municipality by account | 21 | | identification number and address. On and after July 1, 2015, | 22 | | the furnishing of financial information to municipalities | 23 | | under this paragraph may be by electronic means. If the | 24 | | Department may furnish financial information to a municipality | 25 | | under this paragraph, then the Chief Executive Officer of the | 26 | | municipality may in writing authorize the Department to |
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| 1 | | disclose that information to eligible third parties, | 2 | | including, but not limited to, consultants, attorneys, | 3 | | accountants, auditors, and financial advisors. The furnishing | 4 | | of financial information to an eligible third party is an | 5 | | official purpose within the meaning of this Section,
provided | 6 | | the third party agrees in
writing to the requirements of this | 7 | | Section and meets the criteria set forth in this paragraph. To | 8 | | be eligible to receive information from the Department, the | 9 | | third party (1) must enter into a confidentiality agreement | 10 | | with the Department prior to receiving the financial | 11 | | information, (2) must have an existing contract with the | 12 | | municipality at the time the third party enters into the | 13 | | confidentiality agreement with the Department, and (3) must | 14 | | abide by the same conditions as the municipality with respect | 15 | | to the furnishing of financial information. The third party may | 16 | | use the financial information only for the purpose of providing | 17 | | services to the municipality as specified in the contract with | 18 | | the municipality and may not use the information for any other | 19 | | purpose. Electronic data submitted to third parties under this | 20 | | paragraph must be encrypted and must be accessible only to | 21 | | authorized users with secure passwords.
| 22 | | Information so provided shall be subject to all | 23 | | confidentiality provisions
of this Section. The written | 24 | | agreement shall provide for reciprocity,
limitations on | 25 | | access, disclosure, and procedures for requesting information.
| 26 | | The Department may make available to the Board of Trustees |
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| 1 | | of any Metro
East Mass Transit District information contained | 2 | | on transaction reporting
returns required to be filed under | 3 | | Section 3 of this Act that report sales made
within the | 4 | | boundary of the taxing authority of that Metro East Mass | 5 | | Transit
District, as provided in Section 5.01 of the Local Mass | 6 | | Transit District Act.
The disclosure shall be made pursuant to | 7 | | a written agreement between the
Department and the Board of | 8 | | Trustees of a Metro East Mass Transit District,
which is an | 9 | | official purpose within the meaning of this Section. The | 10 | | written
agreement between the Department and the Board of | 11 | | Trustees of a Metro East
Mass Transit District shall provide | 12 | | for reciprocity, limitations on access,
disclosure, and | 13 | | procedures for requesting information. Information so provided
| 14 | | shall be subject to all confidentiality provisions of this | 15 | | Section.
| 16 | | The Director may make available to any State agency, | 17 | | including the
Illinois Supreme Court, which licenses persons to | 18 | | engage in any occupation,
information that a person licensed by | 19 | | such agency has failed to file
returns under this Act or pay | 20 | | the tax, penalty and interest shown therein,
or has failed to | 21 | | pay any final assessment of tax, penalty or interest due
under | 22 | | this Act.
The Director may make available to any State agency, | 23 | | including the Illinois
Supreme
Court, information regarding | 24 | | whether a bidder, contractor, or an affiliate of a
bidder or
| 25 | | contractor has failed to collect and remit Illinois Use tax on | 26 | | sales into
Illinois, or any tax
under this Act or pay the tax, |
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| 1 | | penalty, and interest shown therein, or has
failed to pay any
| 2 | | final assessment of tax, penalty, or interest due under this | 3 | | Act, for the
limited purpose of
enforcing bidder and contractor | 4 | | certifications. The Director may make available
to units
of | 5 | | local government and school districts that require bidder and | 6 | | contractor
certifications,
as set forth in Sections 50-11 and | 7 | | 50-12 of the Illinois Procurement Code,
information
regarding | 8 | | whether a bidder, contractor, or an affiliate of a bidder or
| 9 | | contractor has failed
to collect and remit Illinois Use tax on | 10 | | sales into Illinois, file returns under
this Act, or
pay the | 11 | | tax, penalty, and interest shown therein, or has failed to pay | 12 | | any final
assessment
of tax, penalty, or interest due under | 13 | | this Act, for the limited purpose of
enforcing bidder
and | 14 | | contractor certifications. For purposes of this Section, the | 15 | | term
"affiliate" means any
entity that (1) directly, | 16 | | indirectly, or constructively controls another
entity,
(2) is | 17 | | directly,
indirectly, or constructively controlled by another | 18 | | entity, or (3) is subject
to
the control of
a common entity. | 19 | | For purposes of this Section, an entity controls another
entity
| 20 | | if it owns,
directly or individually, more than 10% of the | 21 | | voting securities of that
entity.
As used in
this Section, the | 22 | | term "voting security" means a security that (1) confers upon
| 23 | | the holder
the right to vote for the election of members of the | 24 | | board of directors or
similar governing
body of the business or | 25 | | (2) is convertible into, or entitles the holder to
receive upon | 26 | | its
exercise, a security that confers such a right to vote. A |
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| 1 | | general partnership
interest is a
voting security.
| 2 | | The Director may make available to any State agency, | 3 | | including the
Illinois
Supreme Court, units of local | 4 | | government, and school districts, information
regarding
| 5 | | whether a bidder or contractor is an affiliate of a person who | 6 | | is not
collecting
and
remitting Illinois Use taxes for the | 7 | | limited purpose of enforcing bidder and
contractor
| 8 | | certifications.
| 9 | | The Director may also make available to the Secretary of | 10 | | State
information that a limited liability company, which has | 11 | | filed articles of
organization with the Secretary of State, or | 12 | | corporation which has been
issued a certificate of | 13 | | incorporation by the Secretary of State has failed to
file | 14 | | returns under this Act or pay the tax, penalty and interest | 15 | | shown therein,
or has failed to pay any final assessment of | 16 | | tax, penalty or interest due under
this Act. An assessment is | 17 | | final when all proceedings in court for review of
such | 18 | | assessment have terminated or the time for the taking thereof | 19 | | has expired
without such proceedings being instituted.
| 20 | | The Director shall make available for public inspection in | 21 | | the Department's
principal office and for publication, at cost, | 22 | | administrative decisions issued
on or after January 1, 1995. | 23 | | These decisions are to be made available in a
manner so that | 24 | | the following taxpayer information is not disclosed:
| 25 | | (1) The names, addresses, and identification numbers | 26 | | of the taxpayer,
related entities, and employees.
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| 1 | | (2) At the sole discretion of the Director, trade | 2 | | secrets
or other confidential information identified as | 3 | | such by the taxpayer, no later
than 30 days after receipt | 4 | | of an administrative decision, by such means as the
| 5 | | Department shall provide by rule.
| 6 | | The Director shall determine the appropriate extent of the | 7 | | deletions allowed
in paragraph (2). In the event the taxpayer | 8 | | does not submit deletions, the
Director shall make only the | 9 | | deletions specified in paragraph (1).
| 10 | | The Director shall make available for public inspection and | 11 | | publication an
administrative decision within 180 days after | 12 | | the issuance of the
administrative decision. The term | 13 | | "administrative decision" has the same
meaning as defined in | 14 | | Section 3-101 of Article III of the Code of Civil
Procedure. | 15 | | Costs collected under this Section shall be paid into the Tax
| 16 | | Compliance and Administration Fund.
| 17 | | Nothing contained in this Act shall prevent the Director | 18 | | from divulging
information to any person pursuant to a request | 19 | | or authorization made by the
taxpayer or by an authorized | 20 | | representative of the taxpayer.
| 21 | | (Source: P.A. 98-1058, eff. 1-1-15 .)
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