Full Text of SB2502 100th General Assembly
SB2502sam001 100TH GENERAL ASSEMBLY | Sen. Jennifer Bertino-Tarrant Filed: 2/27/2018
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| 1 | | AMENDMENT TO SENATE BILL 2502
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2502 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Use Tax Act is amended by changing Section | 5 | | 10 and by adding Section 3-45.5 as follows: | 6 | | (35 ILCS 105/3-45.5 new) | 7 | | Sec. 3-45.5. Notice and reporting requirements for | 8 | | non-collecting retailers. | 9 | | (a) Each retailer that does not collect the tax under this | 10 | | Act shall, at the time of purchase, notify Illinois purchasers | 11 | | that use tax is due on certain purchases at retail made from | 12 | | the retailer and that the State requires the purchaser to file | 13 | | a use tax return. | 14 | | (b) Each retailer that does not collect the tax under this | 15 | | Act shall send notification to all Illinois purchasers by | 16 | | January 31 of each year showing such information as the |
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| 1 | | Department shall require by rule and including the total amount | 2 | | paid by the purchaser for Illinois purchases at retail made | 3 | | from the retailer in the previous calendar year. Such | 4 | | notification shall include, if available, the dates of | 5 | | purchases at retail, the amounts of each purchase at retail, | 6 | | and the category of the purchase at retail, including, if known | 7 | | by the retailer, whether the purchase at retail is exempt or | 8 | | not exempt from taxation. The notification shall inform the | 9 | | purchaser that the State requires a use tax return to be filed | 10 | | and use tax paid on certain Illinois purchases at retail made | 11 | | by the purchaser from the retailer, as provided in Section 10 | 12 | | of this Act. | 13 | | The notification specified in this subsection shall be sent | 14 | | separately to all Illinois purchasers by first-class mail and | 15 | | shall not be included with any other shipments. The | 16 | | notification shall include the words "Important Tax Document" | 17 | | on the exterior of the mailing. | 18 | | (c) Failure to send the notification required in subsection | 19 | | (a) shall subject the retailer to a penalty of $5 for each such | 20 | | failure unless the retailer shows reasonable cause for the | 21 | | failure. Failure to send the notification required in | 22 | | subsection (b) shall subject the retailer to a penalty of $10 | 23 | | for each such failure unless the retailer shows reasonable | 24 | | cause for the failure. | 25 | | (d) Retailers that do not collect the tax under this Act | 26 | | but made less than $100,000 in total gross sales in Illinois in |
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| 1 | | the previous calendar year, and who reasonably expect gross | 2 | | sales in the current calendar year to be less than $100,000, | 3 | | are exempt from the notice. | 4 | | (e) As used in this Section, "Illinois purchaser" means a | 5 | | person who purchases tangible personal property from a retailer | 6 | | and provides either a billing address or a delivery address in | 7 | | the State of Illinois. | 8 | | (35 ILCS 105/10) (from Ch. 120, par. 439.10) | 9 | | Sec. 10. Except as to motor vehicles, aircraft, watercraft, | 10 | | and
trailers, and except as to cigarettes as defined in the | 11 | | Cigarette Use Tax Act, when tangible personal
property is
| 12 | | purchased from a retailer for use in this State by a purchaser
| 13 | | who did not pay the tax imposed by this Act to the retailer, | 14 | | and who does not
file returns with the Department as a retailer | 15 | | under Section 9 of this
Act, such purchaser (by the last day of | 16 | | the month following the calendar
month in which such purchaser | 17 | | makes any payment upon the selling price of
such property) | 18 | | shall, except as otherwise provided in this Section, file
a | 19 | | return with the Department and pay the tax upon that portion of | 20 | | the
selling price so paid by the purchaser during the preceding | 21 | | calendar month.
Such return shall be filed on
a form prescribed | 22 | | by the Department and shall contain such information as
the | 23 | | Department may reasonably require. Such return and payment from | 24 | | the
purchaser shall be submitted to the Department sooner than | 25 | | the last day of
the month after the month in which the purchase |
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| 1 | | is made to the extent that
that may be necessary in order to | 2 | | secure the title to a motor vehicle or
the certificate of | 3 | | registration for an aircraft. However, except as to motor
| 4 | | vehicles and aircraft, and except as to cigarettes as defined | 5 | | in the Cigarette Use Tax Act, if the
purchaser's annual use tax | 6 | | liability does not exceed $600, the purchaser
may file the | 7 | | return on an annual basis on or before April 15th of the year
| 8 | | following the year use tax liability was incurred. Individual | 9 | | purchasers with an annual use tax liability that does not | 10 | | exceed $600 may, in lieu of the filing and payment requirements | 11 | | in this Section, file and pay in compliance with Section 502.1 | 12 | | of the Illinois Income Tax Act. | 13 | | If a purchaser has otherwise failed to file a return with | 14 | | the Department and remit the proper amount of tax due as | 15 | | required under this Act, and if the purchaser receives a | 16 | | notification from a retailer under Section 3-45.5 of this Act, | 17 | | then that purchaser, on or before April 15 of the year in which | 18 | | the notification is received, must file a return and pay the | 19 | | tax upon those portions of the selling prices so paid by the | 20 | | purchaser, plus late fees, as determined by the Department, for | 21 | | the failure to file a return with the Department and remit the | 22 | | proper amount of tax due by the applicable deadline as | 23 | | determined by this Act. Failure to file a return and pay taxes | 24 | | in the manner described in this paragraph will result in | 25 | | additional late fees as determined by the Department. | 26 | | If cigarettes, as defined in the Cigarette Use Tax Act, are |
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| 1 | | purchased from a retailer for use in this State by a purchaser | 2 | | who did not pay the tax imposed by this Act to the retailer, | 3 | | and who does not file returns with the Department as a retailer | 4 | | under Section 9 of this Act, such purchaser must, within 30 | 5 | | days after acquiring the cigarettes, file a return with the | 6 | | Department and pay the tax upon that portion of the selling | 7 | | price so paid by the purchaser for the cigarettes. | 8 | | In addition with respect to motor vehicles,
aircraft, | 9 | | watercraft, and trailers, a purchaser of such tangible personal
| 10 | | property for use in this
State, who purchases such tangible | 11 | | personal property from an out-of-state
retailer, shall file | 12 | | with the Department, upon a form to be prescribed and
supplied | 13 | | by the Department, a return for each such item of tangible
| 14 | | personal property purchased, except that if, in the same | 15 | | transaction, (i) a
purchaser of motor vehicles,
aircraft, | 16 | | watercraft, or trailers who is a retailer of motor vehicles,
| 17 | | aircraft, watercraft, or trailers purchases more than one motor | 18 | | vehicle,
aircraft, watercraft, or trailer for the purpose of | 19 | | resale or (ii) a purchaser
of motor vehicles, aircraft, | 20 | | watercraft, or trailers purchases more
than one motor vehicle, | 21 | | aircraft, watercraft, or trailer for use as qualifying
rolling | 22 | | stock as provided in Section 3-55 of this Act, then the | 23 | | purchaser may
report the purchase of all motor vehicles, | 24 | | aircraft, watercraft, or trailers
involved in that transaction | 25 | | to the Department on a single return prescribed by
the | 26 | | Department. Such return in the case of motor vehicles and
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| 1 | | aircraft must show the name and address of the seller, the | 2 | | name, address of
purchaser, the amount of the selling price | 3 | | including the amount allowed by
the retailer for traded in | 4 | | property, if any; the amount allowed by the
retailer for the | 5 | | traded-in tangible personal property, if any, to the
extent to | 6 | | which Section 2 of this Act allows an exemption for the value | 7 | | of
traded-in property; the balance payable after deducting such | 8 | | trade-in
allowance from the total selling price; the amount of | 9 | | tax due from the
purchaser with respect to such transaction; | 10 | | the amount of tax collected
from the purchaser by the retailer | 11 | | on such transaction (or satisfactory
evidence that such tax is | 12 | | not due in that particular instance if that is
claimed to be | 13 | | the fact); the place and date of the sale, a sufficient
| 14 | | identification of the property sold, and such other information | 15 | | as the
Department may reasonably require. | 16 | | Such return shall be filed not later than 30 days after | 17 | | such motor
vehicle or aircraft is brought into this State for | 18 | | use. | 19 | | For purposes of this Section, "watercraft" means a Class 2, | 20 | | Class 3, or
Class 4 watercraft as defined in Section 3-2 of the | 21 | | Boat Registration and
Safety Act, a personal watercraft, or any | 22 | | boat equipped with an inboard
motor. | 23 | | The return and tax remittance or proof of exemption from | 24 | | the tax that is
imposed by this Act may be transmitted to the | 25 | | Department by way of the
State agency with which, or State | 26 | | officer with whom, the tangible personal
property must be |
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| 1 | | titled or registered (if titling or registration is
required) | 2 | | if the Department and such agency or State officer determine | 3 | | that
this procedure will expedite the processing of | 4 | | applications for title or
registration. | 5 | | With each such return, the purchaser shall remit the proper | 6 | | amount of tax
due (or shall submit satisfactory evidence that | 7 | | the sale is not taxable if
that is the case), to the Department | 8 | | or its agents, whereupon the
Department shall issue, in the | 9 | | purchaser's name, a tax receipt (or a
certificate of exemption | 10 | | if the Department is satisfied that the particular
sale is tax | 11 | | exempt) which such purchaser may submit to the agency with
| 12 | | which, or State officer with whom, he must title or register | 13 | | the tangible
personal property that is involved (if titling or | 14 | | registration is required)
in support of such purchaser's | 15 | | application for an Illinois certificate or
other evidence of | 16 | | title or registration to such tangible personal property. | 17 | | When a purchaser pays a tax imposed by this Act directly to | 18 | | the Department,
the Department (upon request therefor from such | 19 | | purchaser) shall issue an
appropriate receipt to such purchaser | 20 | | showing that he has paid such tax to
the Department. Such | 21 | | receipt shall be sufficient to relieve the purchaser
from | 22 | | further liability for the tax to which such receipt may refer. | 23 | | A user who is liable to pay use tax directly to the | 24 | | Department only
occasionally and not on a frequently recurring | 25 | | basis, and who is not
required to file returns with the | 26 | | Department as a retailer under Section 9
of this Act, or under |
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| 1 | | the "Retailers' Occupation Tax Act", or as a
registrant with | 2 | | the Department under the "Service Occupation Tax Act" or
the | 3 | | "Service Use Tax Act", need not register with the Department.
| 4 | | However, if such a user has a frequently recurring direct use | 5 | | tax liability
to pay to the Department, such user shall be | 6 | | required to register with the
Department on forms prescribed by | 7 | | the Department and to obtain and display
a certificate of | 8 | | registration from the Department. In that event, all of
the | 9 | | provisions of Section 9 of this Act concerning the filing of | 10 | | regular
monthly, quarterly or annual tax returns and all of the | 11 | | provisions of
Section 2a of the "Retailers' Occupation Tax Act" | 12 | | concerning the
requirements for registrants to post bond or | 13 | | other security with the
Department, as the provisions of such | 14 | | sections now exist or may hereafter
be amended, shall apply to | 15 | | such users to the same extent as if such
provisions were | 16 | | included herein. | 17 | | (Source: P.A. 100-321, eff. 8-24-17.) | 18 | | Section 10. The Service Use Tax Act is amended by changing | 19 | | Section 10 and by adding Section 3-40.5 as follows: | 20 | | (35 ILCS 110/3-40.5 new) | 21 | | Sec. 3-40.5. Notice and reporting requirements for | 22 | | non-collecting servicemen. | 23 | | (a) Each serviceman that does not collect the tax under | 24 | | this Act shall, at the time of purchase, notify Illinois |
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| 1 | | purchasers that use tax is due on certain purchases at retail | 2 | | made from the retailer and that the State requires the | 3 | | purchaser to file a use tax return. | 4 | | (b) Each serviceman that does not collect the tax under | 5 | | this Act shall send notification to all Illinois purchasers by | 6 | | January 31 of each year showing such information as the | 7 | | Department shall require by rule and including the total amount | 8 | | paid by the purchaser for Illinois purchases at retail made | 9 | | from the serviceman in the previous calendar year. Such | 10 | | notification shall include, if available, the dates of | 11 | | purchases at retail, the amounts of each purchase at retail, | 12 | | and the category of the purchase at retail, including, if known | 13 | | by the serviceman, whether the purchase at retail is exempt or | 14 | | not exempt from taxation. The notification shall inform the | 15 | | purchaser that the State requires a use tax return to be filed | 16 | | and use tax paid on certain Illinois purchases at retail made | 17 | | by the purchaser from the serviceman, as provided in Section 10 | 18 | | of this Act. | 19 | | The notification specified in this subsection (b) shall be | 20 | | sent separately to all Illinois purchasers by first-class mail | 21 | | and shall not be included with any other shipments. The | 22 | | notification shall include the words "Important Tax Document | 23 | | Enclosed" on the exterior of the mailing. The notification | 24 | | shall include the name of the serviceman. | 25 | | (c) Failure to send the notification required in subsection | 26 | | (a) shall subject the serviceman to a penalty of $5 for each |
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| 1 | | such failure unless the serviceman shows reasonable cause for | 2 | | the failure. Failure to send the notification required in | 3 | | subsection (b) shall subject the serviceman to a penalty of $10 | 4 | | for each such failure unless the serviceman shows reasonable | 5 | | cause for the failure. | 6 | | (d) Servicemen that do not collect the tax under this Act | 7 | | but made less than $100,000 in total gross sales in Illinois in | 8 | | the previous calendar year, and who reasonably expect gross | 9 | | sales in the current calendar year to be less than $100,000, | 10 | | are exempt from the notice. | 11 | | (e) As used in this Section, "Illinois purchaser" means a | 12 | | person who purchases tangible personal property from a | 13 | | serviceman and provides either a billing address or a delivery | 14 | | address in the State of Illinois.
| 15 | | (35 ILCS 110/10) (from Ch. 120, par. 439.40)
| 16 | | Sec. 10.
Where property is acquired as an incident to the | 17 | | purchase of a
service from a serviceman for use in this State | 18 | | by a purchaser who did not
pay the tax herein imposed to the | 19 | | serviceman, and who does not file returns
with the Department | 20 | | as a serviceman under Section 9 of this Act, such
purchaser (by | 21 | | the last day of the month following the calendar month in
which | 22 | | such purchaser makes any payment upon the selling price of such
| 23 | | property) shall, except as hereinafter provided in this | 24 | | Section, file a
return with the Department and pay the tax upon | 25 | | that portion of the selling
price so paid by the purchaser |
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| 1 | | during the preceding calendar month. Such
return shall be filed | 2 | | on a form prescribed by the Department and shall
contain such | 3 | | information as the Department may reasonably require.
| 4 | | When a purchaser pays a tax herein imposed directly to the | 5 | | Department,
the Department (upon request therefor from such | 6 | | purchaser) shall issue an
appropriate receipt to such purchaser | 7 | | showing that he has paid such tax to
the Department. Such | 8 | | receipt shall be sufficient to relieve the purchaser
from | 9 | | further liability from the tax to which such receipt may refer.
| 10 | | A user who is liable to pay Service Use Tax directly to the | 11 | | Department
only occasionally and not on a frequently recurring | 12 | | basis, and who is not
required to file returns within the | 13 | | Department as a serviceman under
Section 9 of this Act, or as a | 14 | | serviceman under the "Service
Occupation Tax Act", or as a | 15 | | retailer or user under the "Use Tax Act",
or as a retailer | 16 | | under the "Retailers' Occupation Tax Act", need not
register | 17 | | with the Department. However, if such a user has a frequently
| 18 | | recurring direct Service Use Tax liability to pay to the | 19 | | Department, such
user shall be required to register with the | 20 | | Department on forms prescribed
by the Department and to obtain | 21 | | and display a certificate of registration
from the Department. | 22 | | In that event, all of the provisions of Section 9 of
this Act | 23 | | concerning the filing of regular monthly, quarterly or annual | 24 | | tax
returns and all of the provisions of Section 2a of the | 25 | | "Retailers'
Occupation Tax Act" concerning the requirements | 26 | | for registrants to post
bond or other security with the |
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| 1 | | Department, as the provisions of such
sections now exist or may | 2 | | hereafter be amended, shall apply to such users
to the same | 3 | | extent as if such provisions were included herein.
| 4 | | If a purchaser has otherwise failed to file a return with | 5 | | the Department and remit the proper amount of tax due as | 6 | | required under this Act, and if the purchaser receives a | 7 | | notification from a serviceman under Section 3-40.5 of this | 8 | | Act, then that purchaser, on or before April 15 of the year in | 9 | | which the notification is received, must file a return and pay | 10 | | the tax upon those portions of the selling prices so paid by | 11 | | the purchaser, plus late fees, as determined by the Department, | 12 | | for the failure to file a return with the Department and remit | 13 | | the proper amount of tax due by the applicable deadline as | 14 | | determined by this Act. Failure to file a return and pay taxes | 15 | | in the manner described in this paragraph will result in | 16 | | additional late fees as determined by the Department. | 17 | | (Source: P.A. 91-51, eff. 6-30-99.)
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.".
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