Full Text of HB2717 100th General Assembly
HB2717eng 100TH GENERAL ASSEMBLY |
| | HB2717 Engrossed | | LRB100 08541 HLH 18666 b |
|
| 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 including, but not limited to, this Section , | 14 | | shall be guilty of a Class
B misdemeanor with a fine not to | 15 | | exceed $7,500.
| 16 | | Nothing in this Act prevents the Director of Revenue from | 17 | | publishing or
making available to the public the names and | 18 | | addresses of persons filing
returns under this Act, or | 19 | | reasonable statistics concerning the operation
of the tax by | 20 | | grouping the contents of returns so the information in any
| 21 | | individual return is not disclosed.
| 22 | | Nothing in this Act prevents a municipality or county from | 23 | | aggregating the information provided to the municipality or |
| | | HB2717 Engrossed | - 2 - | LRB100 08541 HLH 18666 b |
|
| 1 | | county by the Department under this Section and presenting that | 2 | | information to the public, as long as the information in any
| 3 | | individual return is not disclosed. | 4 | | Nothing in this Act prevents the Director of Revenue from | 5 | | divulging to
the United States Government or the government of | 6 | | any other state, or any
officer or agency thereof, for | 7 | | exclusively official purposes, information
received by the | 8 | | Department in administering this Act, provided that such
other | 9 | | governmental agency agrees to divulge requested tax | 10 | | information to
the Department.
| 11 | | The Department's furnishing of information derived from a | 12 | | taxpayer's
return or from an investigation conducted under this | 13 | | Act to the surety on a
taxpayer's bond that has been furnished | 14 | | to the Department under this Act,
either to provide notice to | 15 | | such surety of its potential liability under
the bond or, in | 16 | | order to support the Department's demand for payment from
such | 17 | | surety under the bond, is an official purpose within the | 18 | | meaning of
this Section.
| 19 | | The furnishing upon request of information obtained by the | 20 | | Department
from returns filed under this Act or investigations | 21 | | conducted under this
Act to the Illinois Liquor Control | 22 | | Commission for official use is deemed to
be an official purpose | 23 | | within the meaning of this Section.
| 24 | | Notice to a surety of potential liability shall not be | 25 | | given unless the
taxpayer has first been notified, not less | 26 | | than 10 days prior thereto, of
the Department's intent to so |
| | | HB2717 Engrossed | - 3 - | LRB100 08541 HLH 18666 b |
|
| 1 | | notify the surety.
| 2 | | The furnishing upon request of the Auditor General, or his | 3 | | authorized agents,
for official use, of returns filed and | 4 | | information related thereto under
this Act is deemed to be an | 5 | | official purpose within the meaning of this
Section.
| 6 | | Where an appeal or a protest has been filed on behalf of a | 7 | | taxpayer, the
furnishing upon request of the attorney for the | 8 | | taxpayer of returns filed
by the taxpayer and information | 9 | | related thereto under this Act is deemed
to be an official | 10 | | purpose within the meaning of this Section.
| 11 | | The furnishing of financial information to a municipality | 12 | | or county, upon request of the chief executive officer thereof, | 13 | | including the furnishing of financial information to an | 14 | | eligible third party as provided in this paragraph, is an | 15 | | official purpose within the meaning of this Section,
provided | 16 | | the municipality , or county , and, if applicable, the eligible | 17 | | third party agree agrees in
writing to the requirements of this | 18 | | Section. Information provided to municipalities and counties | 19 | | under this paragraph shall be limited to: (1) the business | 20 | | name; (2) the business address; (3) the standard classification | 21 | | number assigned to the business; (4) net revenue distributed to | 22 | | the requesting municipality or county that is directly related | 23 | | to the requesting municipality's or county's local share of the | 24 | | proceeds under the Use Tax Act, the Service Use Tax Act, the | 25 | | Service Occupation Tax Act, and the Retailers' Occupation Tax | 26 | | Act distributed from the Local Government Tax Fund, and, if |
| | | HB2717 Engrossed | - 4 - | LRB100 08541 HLH 18666 b |
|
| 1 | | applicable, any locally imposed retailers' occupation tax or | 2 | | service occupation tax; and (5) a listing of all businesses | 3 | | within the requesting municipality or county by account | 4 | | identification number and address. Notwithstanding the first | 5 | | paragraph of this Section, the incidental or inadvertent | 6 | | disclosure of such information to an employee of a county or | 7 | | municipality, or to a public official representing that county | 8 | | or municipality, in the scope of his or her employment or | 9 | | representation is not a criminal offense under this Section. On | 10 | | and after July 1, 2015, the furnishing of financial information | 11 | | to municipalities and counties under this paragraph may be by | 12 | | electronic means. If the Department may furnish financial | 13 | | information to a municipality or county under this paragraph, | 14 | | then the chief executive officer of the municipality or county | 15 | | may in writing authorize the Department to disclose that | 16 | | information to eligible third parties, including, but not | 17 | | limited to, consultants, attorneys, accountants, auditors, and | 18 | | financial advisors. The furnishing of financial information to | 19 | | an eligible third party is an official purpose within the | 20 | | meaning of this Section,
provided the third party agrees in
| 21 | | writing to the requirements of this Section and meets the | 22 | | criteria set forth in this paragraph. To be eligible to receive | 23 | | information from the Department, the third party (1) must enter | 24 | | into a confidentiality agreement with the Department prior to | 25 | | receiving the financial information, (2) must have an existing | 26 | | contract with the municipality or county at the time the third |
| | | HB2717 Engrossed | - 5 - | LRB100 08541 HLH 18666 b |
|
| 1 | | party enters into the confidentiality agreement with the | 2 | | Department, and (3) must abide by the same conditions as the | 3 | | municipality or county with respect to the furnishing of | 4 | | financial information. The third party may use the financial | 5 | | information only for the purpose of providing services to the | 6 | | municipality as specified in the contract with the municipality | 7 | | and may not use the information for any other purpose, | 8 | | including verifying the accuracy of amounts indicated on | 9 | | returns submitted to the Department by a taxpayer; however, the | 10 | | third party may verify the accuracy of amounts remitted to the | 11 | | municipality, except as otherwise prohibited by law. | 12 | | Electronic data submitted to third parties under this paragraph | 13 | | must be encrypted and must be accessible only to authorized | 14 | | users with secure passwords. Notwithstanding the first | 15 | | paragraph of this Section, disclosure of information under the | 16 | | requirements of this paragraph is not a criminal offense under | 17 | | this Section.
| 18 | | Information so provided shall be subject to all | 19 | | confidentiality provisions
of this Section. The written | 20 | | agreement shall provide for reciprocity,
limitations on | 21 | | access, disclosure, and procedures for requesting information.
| 22 | | The Department may make available to the Board of Trustees | 23 | | of any Metro
East Mass Transit District information contained | 24 | | on transaction reporting
returns required to be filed under | 25 | | Section 3 of this Act that report sales made
within the | 26 | | boundary of the taxing authority of that Metro East Mass |
| | | HB2717 Engrossed | - 6 - | LRB100 08541 HLH 18666 b |
|
| 1 | | Transit
District, as provided in Section 5.01 of the Local Mass | 2 | | Transit District Act.
The disclosure shall be made pursuant to | 3 | | a written agreement between the
Department and the Board of | 4 | | Trustees of a Metro East Mass Transit District,
which is an | 5 | | official purpose within the meaning of this Section. The | 6 | | written
agreement between the Department and the Board of | 7 | | Trustees of a Metro East
Mass Transit District shall provide | 8 | | for reciprocity, limitations on access,
disclosure, and | 9 | | procedures for requesting information. Information so provided
| 10 | | shall be subject to all confidentiality provisions of this | 11 | | Section.
| 12 | | The Director may make available to any State agency, | 13 | | including the
Illinois Supreme Court, which licenses persons to | 14 | | engage in any occupation,
information that a person licensed by | 15 | | such agency has failed to file
returns under this Act or pay | 16 | | the tax, penalty and interest shown therein,
or has failed to | 17 | | pay any final assessment of tax, penalty or interest due
under | 18 | | this Act.
The Director may make available to any State agency, | 19 | | including the Illinois
Supreme
Court, information regarding | 20 | | whether a bidder, contractor, or an affiliate of a
bidder or
| 21 | | contractor has failed to collect and remit Illinois Use tax on | 22 | | sales into
Illinois, or any tax
under this Act or pay the tax, | 23 | | penalty, and interest shown therein, or has
failed to pay any
| 24 | | final assessment of tax, penalty, or interest due under this | 25 | | Act, for the
limited purpose of
enforcing bidder and contractor | 26 | | certifications. The Director may make available
to units
of |
| | | HB2717 Engrossed | - 7 - | LRB100 08541 HLH 18666 b |
|
| 1 | | local government and school districts that require bidder and | 2 | | contractor
certifications,
as set forth in Sections 50-11 and | 3 | | 50-12 of the Illinois Procurement Code,
information
regarding | 4 | | whether a bidder, contractor, or an affiliate of a bidder or
| 5 | | contractor has failed
to collect and remit Illinois Use tax on | 6 | | sales into Illinois, file returns under
this Act, or
pay the | 7 | | tax, penalty, and interest shown therein, or has failed to pay | 8 | | any final
assessment
of tax, penalty, or interest due under | 9 | | this Act, for the limited purpose of
enforcing bidder
and | 10 | | contractor certifications. For purposes of this Section, the | 11 | | term
"affiliate" means any
entity that (1) directly, | 12 | | indirectly, or constructively controls another
entity,
(2) is | 13 | | directly,
indirectly, or constructively controlled by another | 14 | | entity, or (3) is subject
to
the control of
a common entity. | 15 | | For purposes of this Section, an entity controls another
entity
| 16 | | if it owns,
directly or individually, more than 10% of the | 17 | | voting securities of that
entity.
As used in
this Section, the | 18 | | term "voting security" means a security that (1) confers upon
| 19 | | the holder
the right to vote for the election of members of the | 20 | | board of directors or
similar governing
body of the business or | 21 | | (2) is convertible into, or entitles the holder to
receive upon | 22 | | its
exercise, a security that confers such a right to vote. A | 23 | | general partnership
interest is a
voting security.
| 24 | | The Director may make available to any State agency, | 25 | | including the
Illinois
Supreme Court, units of local | 26 | | government, and school districts, information
regarding
|
| | | HB2717 Engrossed | - 8 - | LRB100 08541 HLH 18666 b |
|
| 1 | | whether a bidder or contractor is an affiliate of a person who | 2 | | is not
collecting
and
remitting Illinois Use taxes for the | 3 | | limited purpose of enforcing bidder and
contractor
| 4 | | certifications.
| 5 | | The Director may also make available to the Secretary of | 6 | | State
information that a limited liability company, which has | 7 | | filed articles of
organization with the Secretary of State, or | 8 | | corporation which has been
issued a certificate of | 9 | | incorporation by the Secretary of State has failed to
file | 10 | | returns under this Act or pay the tax, penalty and interest | 11 | | shown therein,
or has failed to pay any final assessment of | 12 | | tax, penalty or interest due under
this Act. An assessment is | 13 | | final when all proceedings in court for review of
such | 14 | | assessment have terminated or the time for the taking thereof | 15 | | has expired
without such proceedings being instituted.
| 16 | | The Director shall make available for public inspection in | 17 | | the Department's
principal office and for publication, at cost, | 18 | | administrative decisions issued
on or after January 1, 1995. | 19 | | These decisions are to be made available in a
manner so that | 20 | | the following taxpayer information is not disclosed:
| 21 | | (1) The names, addresses, and identification numbers | 22 | | of the taxpayer,
related entities, and employees.
| 23 | | (2) At the sole discretion of the Director, trade | 24 | | secrets
or other confidential information identified as | 25 | | such by the taxpayer, no later
than 30 days after receipt | 26 | | of an administrative decision, by such means as the
|
| | | HB2717 Engrossed | - 9 - | LRB100 08541 HLH 18666 b |
|
| 1 | | Department shall provide by rule.
| 2 | | The Director shall determine the appropriate extent of the | 3 | | deletions allowed
in paragraph (2). In the event the taxpayer | 4 | | does not submit deletions, the
Director shall make only the | 5 | | deletions specified in paragraph (1).
| 6 | | The Director shall make available for public inspection and | 7 | | publication an
administrative decision within 180 days after | 8 | | the issuance of the
administrative decision. The term | 9 | | "administrative decision" has the same
meaning as defined in | 10 | | Section 3-101 of Article III of the Code of Civil
Procedure. | 11 | | Costs collected under this Section shall be paid into the Tax
| 12 | | Compliance and Administration Fund.
| 13 | | Nothing contained in this Act shall prevent the Director | 14 | | from divulging
information to any person pursuant to a request | 15 | | or authorization made by the
taxpayer or by an authorized | 16 | | representative of the taxpayer.
| 17 | | (Source: P.A. 98-1058, eff. 1-1-15; 99-517, eff. 6-30-16.)
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.
|
|