SB3093 103RD GENERAL ASSEMBLY

 


 
103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3093

 

Introduced 2/2/2024, by Sen. Ram Villivalam

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 120/2a  from Ch. 120, par. 441a
35 ILCS 120/2b  from Ch. 120, par. 441b
235 ILCS 5/1-3.45 new
235 ILCS 5/7-6.5 new

    Amends the Retailers' Occupation Tax Act and the Liquor Control Act of 1934. Provides that, if any licensee authorized to sell alcoholic liquor at retail has had the renewal of his or her certificate of registration denied by the Department of Revenue or if such a licensee's certificate of registration has been revoked by the Department of Revenue, then the Department of Revenue shall file a notice with the Liquor Control Commission that includes a certification, signed by Director of Revenue or his or her designee, attesting that the renewal of the person's certificate of registration has been denied or that the person's certificate of registration has been revoked, as applicable, after notice and an opportunity to be heard. Provides that the Liquor Control Commission shall inactivate the license of that licensee until the Department of Revenue notifies the Liquor Control Commission that the violation resulting in the nonrenewal or revocation has been remedied and the certificate of registration has been reinstated by the Department of Revenue. Effective immediately


LRB103 34187 HLH 64010 b

 

 

A BILL FOR

 

SB3093LRB103 34187 HLH 64010 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Retailers' Occupation Tax Act is amended by
5changing Sections 2a and 2b as follows:
 
6    (35 ILCS 120/2a)  (from Ch. 120, par. 441a)
7    (Text of Section before amendment by P.A. 103-319)
8    Sec. 2a. It is unlawful for any person to engage in the
9business of selling tangible personal property at retail in
10this State without a certificate of registration from the
11Department. Application for a certificate of registration
12shall be made to the Department upon forms furnished by it.
13Each such application shall be signed and verified and shall
14state: (1) the name and social security number of the
15applicant; (2) the address of his principal place of business;
16(3) the address of the principal place of business from which
17he engages in the business of selling tangible personal
18property at retail in this State and the addresses of all other
19places of business, if any (enumerating such addresses, if
20any, in a separate list attached to and made a part of the
21application), from which he engages in the business of selling
22tangible personal property at retail in this State; (4) the
23name and address of the person or persons who will be

 

 

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1responsible for filing returns and payment of taxes due under
2this Act; (5) in the case of a publicly traded corporation, the
3name and title of the Chief Financial Officer, Chief Operating
4Officer, and any other officer or employee with responsibility
5for preparing tax returns under this Act, and, in the case of
6all other corporations, the name, title, and social security
7number of each corporate officer; (6) in the case of a limited
8liability company, the name, social security number, and FEIN
9number of each manager and member; and (7) such other
10information as the Department may reasonably require. The
11application shall contain an acceptance of responsibility
12signed by the person or persons who will be responsible for
13filing returns and payment of the taxes due under this Act. If
14the applicant will sell tangible personal property at retail
15through vending machines, his application to register shall
16indicate the number of vending machines to be so operated. If
17requested by the Department at any time, that person shall
18verify the total number of vending machines he or she uses in
19his or her business of selling tangible personal property at
20retail.
21    The Department shall provide by rule for an expedited
22business registration process for remote retailers required to
23register and file under subsection (b) of Section 2 who use a
24certified service provider to file their returns under this
25Act. Such expedited registration process shall allow the
26Department to register a taxpayer based upon the same

 

 

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1registration information required by the Streamlined Sales Tax
2Governing Board for states participating in the Streamlined
3Sales Tax Project.
4    The Department may deny a certificate of registration to
5any applicant if a person who is named as the owner, a partner,
6a manager or member of a limited liability company, or a
7corporate officer of the applicant on the application for the
8certificate of registration is or has been named as the owner,
9a partner, a manager or member of a limited liability company,
10or a corporate officer on the application for the certificate
11of registration of another retailer that is in default for
12moneys due under this Act or any other tax or fee Act
13administered by the Department. For purposes of this paragraph
14only, in determining whether a person is in default for moneys
15due, the Department shall include only amounts established as
16a final liability within the 23 years prior to the date of the
17Department's notice of denial of a certificate of
18registration.
19    The Department may require an applicant for a certificate
20of registration hereunder to, at the time of filing such
21application, furnish a bond from a surety company authorized
22to do business in the State of Illinois, or an irrevocable bank
23letter of credit or a bond signed by 2 personal sureties who
24have filed, with the Department, sworn statements disclosing
25net assets equal to at least 3 times the amount of the bond to
26be required of such applicant, or a bond secured by an

 

 

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1assignment of a bank account or certificate of deposit, stocks
2or bonds, conditioned upon the applicant paying to the State
3of Illinois all moneys becoming due under this Act and under
4any other State tax law or municipal or county tax ordinance or
5resolution under which the certificate of registration that is
6issued to the applicant under this Act will permit the
7applicant to engage in business without registering separately
8under such other law, ordinance or resolution. In making a
9determination as to whether to require a bond or other
10security, the Department shall take into consideration whether
11the owner, any partner, any manager or member of a limited
12liability company, or a corporate officer of the applicant is
13or has been the owner, a partner, a manager or member of a
14limited liability company, or a corporate officer of another
15retailer that is in default for moneys due under this Act or
16any other tax or fee Act administered by the Department; and
17whether the owner, any partner, any manager or member of a
18limited liability company, or a corporate officer of the
19applicant is or has been the owner, a partner, a manager or
20member of a limited liability company, or a corporate officer
21of another retailer whose certificate of registration has been
22revoked within the previous 5 years under this Act or any other
23tax or fee Act administered by the Department. If a bond or
24other security is required, the Department shall fix the
25amount of the bond or other security, taking into
26consideration the amount of money expected to become due from

 

 

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1the applicant under this Act and under any other State tax law
2or municipal or county tax ordinance or resolution under which
3the certificate of registration that is issued to the
4applicant under this Act will permit the applicant to engage
5in business without registering separately under such other
6law, ordinance, or resolution. The amount of security required
7by the Department shall be such as, in its opinion, will
8protect the State of Illinois against failure to pay the
9amount which may become due from the applicant under this Act
10and under any other State tax law or municipal or county tax
11ordinance or resolution under which the certificate of
12registration that is issued to the applicant under this Act
13will permit the applicant to engage in business without
14registering separately under such other law, ordinance or
15resolution, but the amount of the security required by the
16Department shall not exceed three times the amount of the
17applicant's average monthly tax liability, or $50,000.00,
18whichever amount is lower.
19    No certificate of registration under this Act shall be
20issued by the Department until the applicant provides the
21Department with satisfactory security, if required, as herein
22provided for.
23    Upon receipt of the application for certificate of
24registration in proper form, and upon approval by the
25Department of the security furnished by the applicant, if
26required, the Department shall issue to such applicant a

 

 

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1certificate of registration which shall permit the person to
2whom it is issued to engage in the business of selling tangible
3personal property at retail in this State. The certificate of
4registration shall be conspicuously displayed at the place of
5business which the person so registered states in his
6application to be the principal place of business from which
7he engages in the business of selling tangible personal
8property at retail in this State.
9    No certificate of registration issued prior to July 1,
102017 to a taxpayer who files returns required by this Act on a
11monthly basis or renewed prior to July 1, 2017 by a taxpayer
12who files returns required by this Act on a monthly basis shall
13be valid after the expiration of 5 years from the date of its
14issuance or last renewal. No certificate of registration
15issued on or after July 1, 2017 to a taxpayer who files returns
16required by this Act on a monthly basis or renewed on or after
17July 1, 2017 by a taxpayer who files returns required by this
18Act on a monthly basis shall be valid after the expiration of
19one year from the date of its issuance or last renewal. The
20expiration date of a sub-certificate of registration shall be
21that of the certificate of registration to which the
22sub-certificate relates. Prior to July 1, 2017, a certificate
23of registration shall automatically be renewed, subject to
24revocation as provided by this Act, for an additional 5 years
25from the date of its expiration unless otherwise notified by
26the Department as provided by this paragraph. On and after

 

 

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1July 1, 2017, a certificate of registration shall
2automatically be renewed, subject to revocation as provided by
3this Act, for an additional one year from the date of its
4expiration unless otherwise notified by the Department as
5provided by this paragraph.
6    Where a taxpayer to whom a certificate of registration is
7issued under this Act is in default to the State of Illinois
8for delinquent returns or for moneys due under this Act or any
9other State tax law or municipal or county ordinance
10administered or enforced by the Department, the Department
11shall, not less than 60 days before the expiration date of such
12certificate of registration, give notice to the taxpayer to
13whom the certificate was issued of the account period of the
14delinquent returns, the amount of tax, penalty and interest
15due and owing from the taxpayer, and that the certificate of
16registration shall not be automatically renewed upon its
17expiration date unless the taxpayer, on or before the date of
18expiration, has filed and paid the delinquent returns or paid
19the defaulted amount in full. A taxpayer to whom such a notice
20is issued shall be deemed an applicant for renewal. The
21Department shall promulgate regulations establishing
22procedures for taxpayers who file returns on a monthly basis
23but desire and qualify to change to a quarterly or yearly
24filing basis and will no longer be subject to renewal under
25this Section, and for taxpayers who file returns on a yearly or
26quarterly basis but who desire or are required to change to a

 

 

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1monthly filing basis and will be subject to renewal under this
2Section.
3    The Department may in its discretion approve renewal by an
4applicant who is in default if, at the time of application for
5renewal, the applicant files all of the delinquent returns or
6pays to the Department such percentage of the defaulted amount
7as may be determined by the Department and agrees in writing to
8waive all limitations upon the Department for collection of
9the remaining defaulted amount to the Department over a period
10not to exceed 5 years from the date of renewal of the
11certificate; however, no renewal application submitted by an
12applicant who is in default shall be approved if the
13immediately preceding renewal by the applicant was conditioned
14upon the installment payment agreement described in this
15Section. The payment agreement herein provided for shall be in
16addition to and not in lieu of the security that may be
17required by this Section of a taxpayer who is no longer
18considered a prior continuous compliance taxpayer. The
19execution of the payment agreement as provided in this Act
20shall not toll the accrual of interest at the statutory rate.
21    The Department may suspend a certificate of registration
22if the Department finds that the person to whom the
23certificate of registration has been issued knowingly sold
24contraband cigarettes.
25    A certificate of registration issued under this Act more
26than 5 years before January 1, 1990 (the effective date of

 

 

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1Public Act 86-383) shall expire and be subject to the renewal
2provisions of this Section on the next anniversary of the date
3of issuance of such certificate which occurs more than 6
4months after January 1, 1990 (the effective date of Public Act
586-383). A certificate of registration issued less than 5
6years before January 1, 1990 (the effective date of Public Act
786-383) shall expire and be subject to the renewal provisions
8of this Section on the 5th anniversary of the issuance of the
9certificate.
10    If the person so registered states that he operates other
11places of business from which he engages in the business of
12selling tangible personal property at retail in this State,
13the Department shall furnish him with a sub-certificate of
14registration for each such place of business, and the
15applicant shall display the appropriate sub-certificate of
16registration at each such place of business. All
17sub-certificates of registration shall bear the same
18registration number as that appearing upon the certificate of
19registration to which such sub-certificates relate.
20    If the applicant will sell tangible personal property at
21retail through vending machines, the Department shall furnish
22him with a sub-certificate of registration for each such
23vending machine, and the applicant shall display the
24appropriate sub-certificate of registration on each such
25vending machine by attaching the sub-certificate of
26registration to a conspicuous part of such vending machine. If

 

 

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1a person who is registered to sell tangible personal property
2at retail through vending machines adds an additional vending
3machine or additional vending machines to the number of
4vending machines he or she uses in his or her business of
5selling tangible personal property at retail, he or she shall
6notify the Department, on a form prescribed by the Department,
7to request an additional sub-certificate or additional
8sub-certificates of registration, as applicable. With each
9such request, the applicant shall report the number of
10sub-certificates of registration he or she is requesting as
11well as the total number of vending machines from which he or
12she makes retail sales.
13    Where the same person engages in 2 or more businesses of
14selling tangible personal property at retail in this State,
15which businesses are substantially different in character or
16engaged in under different trade names or engaged in under
17other substantially dissimilar circumstances (so that it is
18more practicable, from an accounting, auditing or bookkeeping
19standpoint, for such businesses to be separately registered),
20the Department may require or permit such person (subject to
21the same requirements concerning the furnishing of security as
22those that are provided for hereinbefore in this Section as to
23each application for a certificate of registration) to apply
24for and obtain a separate certificate of registration for each
25such business or for any of such businesses, under a single
26certificate of registration supplemented by related

 

 

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1sub-certificates of registration.
2    Any person who is registered under the Retailers'
3Occupation Tax Act as of March 8, 1963, and who, during the
43-year period immediately prior to March 8, 1963, or during a
5continuous 3-year period part of which passed immediately
6before and the remainder of which passes immediately after
7March 8, 1963, has been so registered continuously and who is
8determined by the Department not to have been either
9delinquent or deficient in the payment of tax liability during
10that period under this Act or under any other State tax law or
11municipal or county tax ordinance or resolution under which
12the certificate of registration that is issued to the
13registrant under this Act will permit the registrant to engage
14in business without registering separately under such other
15law, ordinance or resolution, shall be considered to be a
16Prior Continuous Compliance taxpayer. Also any taxpayer who
17has, as verified by the Department, faithfully and
18continuously complied with the condition of his bond or other
19security under the provisions of this Act for a period of 3
20consecutive years shall be considered to be a Prior Continuous
21Compliance taxpayer.
22    Every Prior Continuous Compliance taxpayer shall be exempt
23from all requirements under this Act concerning the furnishing
24of a bond or other security as a condition precedent to his
25being authorized to engage in the business of selling tangible
26personal property at retail in this State. This exemption

 

 

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1shall continue for each such taxpayer until such time as he may
2be determined by the Department to be delinquent in the filing
3of any returns, or is determined by the Department (either
4through the Department's issuance of a final assessment which
5has become final under the Act, or by the taxpayer's filing of
6a return which admits tax that is not paid to be due) to be
7delinquent or deficient in the paying of any tax under this Act
8or under any other State tax law or municipal or county tax
9ordinance or resolution under which the certificate of
10registration that is issued to the registrant under this Act
11will permit the registrant to engage in business without
12registering separately under such other law, ordinance or
13resolution, at which time that taxpayer shall become subject
14to all the financial responsibility requirements of this Act
15and, as a condition of being allowed to continue to engage in
16the business of selling tangible personal property at retail,
17may be required to post bond or other acceptable security with
18the Department covering liability which such taxpayer may
19thereafter incur. Any taxpayer who fails to pay an admitted or
20established liability under this Act may also be required to
21post bond or other acceptable security with this Department
22guaranteeing the payment of such admitted or established
23liability.
24    No certificate of registration shall be issued to any
25person who is in default to the State of Illinois for moneys
26due under this Act or under any other State tax law or

 

 

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1municipal or county tax ordinance or resolution under which
2the certificate of registration that is issued to the
3applicant under this Act will permit the applicant to engage
4in business without registering separately under such other
5law, ordinance or resolution.
6    Any person aggrieved by any decision of the Department
7under this Section may, within 20 days after notice of such
8decision, protest and request a hearing, whereupon the
9Department shall give notice to such person of the time and
10place fixed for such hearing and shall hold a hearing in
11conformity with the provisions of this Act and then issue its
12final administrative decision in the matter to such person. In
13the absence of such a protest within 20 days, the Department's
14decision shall become final without any further determination
15being made or notice given.
16    With respect to security other than bonds (upon which the
17Department may sue in the event of a forfeiture), if the
18taxpayer fails to pay, when due, any amount whose payment such
19security guarantees, the Department shall, after such
20liability is admitted by the taxpayer or established by the
21Department through the issuance of a final assessment that has
22become final under the law, convert the security which that
23taxpayer has furnished into money for the State, after first
24giving the taxpayer at least 10 days' written notice, by
25registered or certified mail, to pay the liability or forfeit
26such security to the Department. If the security consists of

 

 

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1stocks or bonds or other securities which are listed on a
2public exchange, the Department shall sell such securities
3through such public exchange. If the security consists of an
4irrevocable bank letter of credit, the Department shall
5convert the security in the manner provided for in the Uniform
6Commercial Code. If the security consists of a bank
7certificate of deposit, the Department shall convert the
8security into money by demanding and collecting the amount of
9such bank certificate of deposit from the bank which issued
10such certificate. If the security consists of a type of stocks
11or other securities which are not listed on a public exchange,
12the Department shall sell such security to the highest and
13best bidder after giving at least 10 days' notice of the date,
14time and place of the intended sale by publication in the
15"State Official Newspaper". If the Department realizes more
16than the amount of such liability from the security, plus the
17expenses incurred by the Department in converting the security
18into money, the Department shall pay such excess to the
19taxpayer who furnished such security, and the balance shall be
20paid into the State Treasury.
21    The Department shall discharge any surety and shall
22release and return any security deposited, assigned, pledged
23or otherwise provided to it by a taxpayer under this Section
24within 30 days after:
25        (1) such taxpayer becomes a Prior Continuous
26    Compliance taxpayer; or

 

 

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1        (2) such taxpayer has ceased to collect receipts on
2    which he is required to remit tax to the Department, has
3    filed a final tax return, and has paid to the Department an
4    amount sufficient to discharge his remaining tax
5    liability, as determined by the Department, under this Act
6    and under every other State tax law or municipal or county
7    tax ordinance or resolution under which the certificate of
8    registration issued under this Act permits the registrant
9    to engage in business without registering separately under
10    such other law, ordinance or resolution. The Department
11    shall make a final determination of the taxpayer's
12    outstanding tax liability as expeditiously as possible
13    after his final tax return has been filed; if the
14    Department cannot make such final determination within 45
15    days after receiving the final tax return, within such
16    period it shall so notify the taxpayer, stating its
17    reasons therefor.
18(Source: P.A. 101-31, eff. 6-28-19; 102-40, eff. 6-25-21.)
 
19    (Text of Section after amendment by P.A. 103-319)
20    Sec. 2a. It is unlawful for any person to engage in the
21business of selling tangible personal property at retail in
22this State without a certificate of registration from the
23Department. Application for a certificate of registration
24shall be made to the Department upon forms furnished by it.
25Each such application shall be signed and verified and shall

 

 

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1state: (1) the name and social security number of the
2applicant; (2) the address of his principal place of business;
3(3) the address of the principal place of business from which
4he engages in the business of selling tangible personal
5property at retail in this State and the addresses of all other
6places of business, if any (enumerating such addresses, if
7any, in a separate list attached to and made a part of the
8application), from which he engages in the business of selling
9tangible personal property at retail in this State; (4) the
10name and address of the person or persons who will be
11responsible for filing returns and payment of taxes due under
12this Act; (5) in the case of a publicly traded corporation, the
13name and title of the Chief Financial Officer, Chief Operating
14Officer, and any other officer or employee with responsibility
15for preparing tax returns under this Act, and, in the case of
16all other corporations, the name, title, and social security
17number of each corporate officer; (6) in the case of a limited
18liability company, the name, social security number, and FEIN
19number of each manager and member; and (7) such other
20information as the Department may reasonably require. The
21application shall contain an acceptance of responsibility
22signed by the person or persons who will be responsible for
23filing returns and payment of the taxes due under this Act. If
24the applicant will sell tangible personal property at retail
25through vending machines, his application to register shall
26indicate the number of vending machines to be so operated. If

 

 

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1requested by the Department at any time, that person shall
2verify the total number of vending machines he or she uses in
3his or her business of selling tangible personal property at
4retail.
5    The Department shall provide by rule for an expedited
6business registration process for remote retailers required to
7register and file under subsection (b) of Section 2 who use a
8certified service provider to file their returns under this
9Act. Such expedited registration process shall allow the
10Department to register a taxpayer based upon the same
11registration information required by the Streamlined Sales Tax
12Governing Board for states participating in the Streamlined
13Sales Tax Project.
14    The Department may deny a certificate of registration to
15any applicant if a person who is named as the owner, a partner,
16a manager or member of a limited liability company, or a
17corporate officer of the applicant on the application for the
18certificate of registration is or has been named as the owner,
19a partner, a manager or member of a limited liability company,
20or a corporate officer on the application for the certificate
21of registration of another retailer that (i) is in default for
22moneys due under this Act or any other tax or fee Act
23administered by the Department or (ii) fails to file any
24return, on or before the due date prescribed for filing that
25return (including any extensions of time granted by the
26Department), that the retailer is required to file under this

 

 

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1Act or any other tax or fee Act administered by the Department.
2For purposes of this paragraph only, in determining whether a
3person is in default for moneys due, the Department shall
4include only amounts established as a final liability within
5the 23 years prior to the date of the Department's notice of
6denial of a certificate of registration.
7    The Department may require an applicant for a certificate
8of registration hereunder to, at the time of filing such
9application, furnish a bond from a surety company authorized
10to do business in the State of Illinois, or an irrevocable bank
11letter of credit or a bond signed by 2 personal sureties who
12have filed, with the Department, sworn statements disclosing
13net assets equal to at least 3 times the amount of the bond to
14be required of such applicant, or a bond secured by an
15assignment of a bank account or certificate of deposit, stocks
16or bonds, conditioned upon the applicant paying to the State
17of Illinois all moneys becoming due under this Act and under
18any other State tax law or municipal or county tax ordinance or
19resolution under which the certificate of registration that is
20issued to the applicant under this Act will permit the
21applicant to engage in business without registering separately
22under such other law, ordinance or resolution. In making a
23determination as to whether to require a bond or other
24security, the Department shall take into consideration whether
25the owner, any partner, any manager or member of a limited
26liability company, or a corporate officer of the applicant is

 

 

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1or has been the owner, a partner, a manager or member of a
2limited liability company, or a corporate officer of another
3retailer that is in default for moneys due under this Act or
4any other tax or fee Act administered by the Department; and
5whether the owner, any partner, any manager or member of a
6limited liability company, or a corporate officer of the
7applicant is or has been the owner, a partner, a manager or
8member of a limited liability company, or a corporate officer
9of another retailer whose certificate of registration has been
10revoked within the previous 5 years under this Act or any other
11tax or fee Act administered by the Department. If a bond or
12other security is required, the Department shall fix the
13amount of the bond or other security, taking into
14consideration the amount of money expected to become due from
15the applicant under this Act and under any other State tax law
16or municipal or county tax ordinance or resolution under which
17the certificate of registration that is issued to the
18applicant under this Act will permit the applicant to engage
19in business without registering separately under such other
20law, ordinance, or resolution. The amount of security required
21by the Department shall be such as, in its opinion, will
22protect the State of Illinois against failure to pay the
23amount which may become due from the applicant under this Act
24and under any other State tax law or municipal or county tax
25ordinance or resolution under which the certificate of
26registration that is issued to the applicant under this Act

 

 

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1will permit the applicant to engage in business without
2registering separately under such other law, ordinance or
3resolution, but the amount of the security required by the
4Department shall not exceed three times the amount of the
5applicant's average monthly tax liability, or $50,000.00,
6whichever amount is lower.
7    No certificate of registration under this Act shall be
8issued by the Department until the applicant provides the
9Department with satisfactory security, if required, as herein
10provided for.
11    Upon receipt of the application for certificate of
12registration in proper form, and upon approval by the
13Department of the security furnished by the applicant, if
14required, the Department shall issue to such applicant a
15certificate of registration which shall permit the person to
16whom it is issued to engage in the business of selling tangible
17personal property at retail in this State. The certificate of
18registration shall be conspicuously displayed at the place of
19business which the person so registered states in his
20application to be the principal place of business from which
21he engages in the business of selling tangible personal
22property at retail in this State.
23    No certificate of registration issued prior to July 1,
242017 to a taxpayer who files returns required by this Act on a
25monthly basis or renewed prior to July 1, 2017 by a taxpayer
26who files returns required by this Act on a monthly basis shall

 

 

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1be valid after the expiration of 5 years from the date of its
2issuance or last renewal. No certificate of registration
3issued on or after July 1, 2017 to a taxpayer who files returns
4required by this Act on a monthly basis or renewed on or after
5July 1, 2017 by a taxpayer who files returns required by this
6Act on a monthly basis shall be valid after the expiration of
7one year from the date of its issuance or last renewal. The
8expiration date of a sub-certificate of registration shall be
9that of the certificate of registration to which the
10sub-certificate relates. Prior to July 1, 2017, a certificate
11of registration shall automatically be renewed, subject to
12revocation as provided by this Act, for an additional 5 years
13from the date of its expiration unless otherwise notified by
14the Department as provided by this paragraph. On and after
15July 1, 2017, a certificate of registration shall
16automatically be renewed, subject to revocation as provided by
17this Act, for an additional one year from the date of its
18expiration unless otherwise notified by the Department as
19provided by this paragraph.
20    Where a taxpayer to whom a certificate of registration is
21issued under this Act is in default to the State of Illinois
22for delinquent returns or for moneys due under this Act or any
23other State tax law or municipal or county ordinance
24administered or enforced by the Department, the Department
25shall, not less than 60 days before the expiration date of such
26certificate of registration, give notice to the taxpayer to

 

 

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1whom the certificate was issued of the account period of the
2delinquent returns, the amount of tax, penalty and interest
3due and owing from the taxpayer, and that the certificate of
4registration shall not be automatically renewed upon its
5expiration date unless the taxpayer, on or before the date of
6expiration, has filed and paid the delinquent returns or paid
7the defaulted amount in full. A taxpayer to whom such a notice
8is issued shall be deemed an applicant for renewal. The
9Department shall promulgate regulations establishing
10procedures for taxpayers who file returns on a monthly basis
11but desire and qualify to change to a quarterly or yearly
12filing basis and will no longer be subject to renewal under
13this Section, and for taxpayers who file returns on a yearly or
14quarterly basis but who desire or are required to change to a
15monthly filing basis and will be subject to renewal under this
16Section.
17    The Department may in its discretion approve renewal by an
18applicant who is in default if, at the time of application for
19renewal, the applicant files all of the delinquent returns or
20pays to the Department such percentage of the defaulted amount
21as may be determined by the Department and agrees in writing to
22waive all limitations upon the Department for collection of
23the remaining defaulted amount to the Department over a period
24not to exceed 5 years from the date of renewal of the
25certificate; however, no renewal application submitted by an
26applicant who is in default shall be approved if the

 

 

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1immediately preceding renewal by the applicant was conditioned
2upon the installment payment agreement described in this
3Section. The payment agreement herein provided for shall be in
4addition to and not in lieu of the security that may be
5required by this Section of a taxpayer who is no longer
6considered a prior continuous compliance taxpayer. The
7execution of the payment agreement as provided in this Act
8shall not toll the accrual of interest at the statutory rate.
9    The Department may suspend a certificate of registration
10if the Department finds that the person to whom the
11certificate of registration has been issued knowingly sold
12contraband cigarettes.
13    A certificate of registration issued under this Act more
14than 5 years before January 1, 1990 (the effective date of
15Public Act 86-383) shall expire and be subject to the renewal
16provisions of this Section on the next anniversary of the date
17of issuance of such certificate which occurs more than 6
18months after January 1, 1990 (the effective date of Public Act
1986-383). A certificate of registration issued less than 5
20years before January 1, 1990 (the effective date of Public Act
2186-383) shall expire and be subject to the renewal provisions
22of this Section on the 5th anniversary of the issuance of the
23certificate.
24    If a person who is licensed as a retailer of alcoholic
25liquor under the Liquor Control Act of 1934 has had the renewal
26of his or her certificate of registration denied under this

 

 

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1Section 2a, then, pursuant to Section 7-6.5 of the Liquor
2Control Act of 1934, the Department shall file a notice with
3the Liquor Control Commission that includes a certification,
4signed by the Director of Revenue or his or her designee,
5attesting that the renewal of the person's certificate of
6registration has been denied after notice and an opportunity
7to be heard. The Department shall also file a notice with the
8Liquor Control Commission that includes a certification,
9signed by the Director of Revenue or his or her designee, if
10the violation resulting in the denial has been remedied and
11the certificate of registration has been reinstated by the
12Department.
13    If the person so registered states that he operates other
14places of business from which he engages in the business of
15selling tangible personal property at retail in this State,
16the Department shall furnish him with a sub-certificate of
17registration for each such place of business, and the
18applicant shall display the appropriate sub-certificate of
19registration at each such place of business. All
20sub-certificates of registration shall bear the same
21registration number as that appearing upon the certificate of
22registration to which such sub-certificates relate.
23    If the applicant will sell tangible personal property at
24retail through vending machines, the Department shall furnish
25him with a sub-certificate of registration for each such
26vending machine, and the applicant shall display the

 

 

SB3093- 25 -LRB103 34187 HLH 64010 b

1appropriate sub-certificate of registration on each such
2vending machine by attaching the sub-certificate of
3registration to a conspicuous part of such vending machine. If
4a person who is registered to sell tangible personal property
5at retail through vending machines adds an additional vending
6machine or additional vending machines to the number of
7vending machines he or she uses in his or her business of
8selling tangible personal property at retail, he or she shall
9notify the Department, on a form prescribed by the Department,
10to request an additional sub-certificate or additional
11sub-certificates of registration, as applicable. With each
12such request, the applicant shall report the number of
13sub-certificates of registration he or she is requesting as
14well as the total number of vending machines from which he or
15she makes retail sales.
16    Where the same person engages in 2 or more businesses of
17selling tangible personal property at retail in this State,
18which businesses are substantially different in character or
19engaged in under different trade names or engaged in under
20other substantially dissimilar circumstances (so that it is
21more practicable, from an accounting, auditing or bookkeeping
22standpoint, for such businesses to be separately registered),
23the Department may require or permit such person (subject to
24the same requirements concerning the furnishing of security as
25those that are provided for hereinbefore in this Section as to
26each application for a certificate of registration) to apply

 

 

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1for and obtain a separate certificate of registration for each
2such business or for any of such businesses, under a single
3certificate of registration supplemented by related
4sub-certificates of registration.
5    Any person who is registered under the Retailers'
6Occupation Tax Act as of March 8, 1963, and who, during the
73-year period immediately prior to March 8, 1963, or during a
8continuous 3-year period part of which passed immediately
9before and the remainder of which passes immediately after
10March 8, 1963, has been so registered continuously and who is
11determined by the Department not to have been either
12delinquent or deficient in the payment of tax liability during
13that period under this Act or under any other State tax law or
14municipal or county tax ordinance or resolution under which
15the certificate of registration that is issued to the
16registrant under this Act will permit the registrant to engage
17in business without registering separately under such other
18law, ordinance or resolution, shall be considered to be a
19Prior Continuous Compliance taxpayer. Also any taxpayer who
20has, as verified by the Department, faithfully and
21continuously complied with the condition of his bond or other
22security under the provisions of this Act for a period of 3
23consecutive years shall be considered to be a Prior Continuous
24Compliance taxpayer.
25    Every Prior Continuous Compliance taxpayer shall be exempt
26from all requirements under this Act concerning the furnishing

 

 

SB3093- 27 -LRB103 34187 HLH 64010 b

1of a bond or other security as a condition precedent to his
2being authorized to engage in the business of selling tangible
3personal property at retail in this State. This exemption
4shall continue for each such taxpayer until such time as he may
5be determined by the Department to be delinquent in the filing
6of any returns, or is determined by the Department (either
7through the Department's issuance of a final assessment which
8has become final under the Act, or by the taxpayer's filing of
9a return which admits tax that is not paid to be due) to be
10delinquent or deficient in the paying of any tax under this Act
11or under any other State tax law or municipal or county tax
12ordinance or resolution under which the certificate of
13registration that is issued to the registrant under this Act
14will permit the registrant to engage in business without
15registering separately under such other law, ordinance or
16resolution, at which time that taxpayer shall become subject
17to all the financial responsibility requirements of this Act
18and, as a condition of being allowed to continue to engage in
19the business of selling tangible personal property at retail,
20may be required to post bond or other acceptable security with
21the Department covering liability which such taxpayer may
22thereafter incur. Any taxpayer who fails to pay an admitted or
23established liability under this Act may also be required to
24post bond or other acceptable security with this Department
25guaranteeing the payment of such admitted or established
26liability.

 

 

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1    No certificate of registration shall be issued to any
2person who is in default to the State of Illinois for moneys
3due under this Act or under any other State tax law or
4municipal or county tax ordinance or resolution under which
5the certificate of registration that is issued to the
6applicant under this Act will permit the applicant to engage
7in business without registering separately under such other
8law, ordinance or resolution.
9    Any person aggrieved by any decision of the Department
10under this Section may, within 20 days after notice of such
11decision, protest and request a hearing, whereupon the
12Department shall give notice to such person of the time and
13place fixed for such hearing and shall hold a hearing in
14conformity with the provisions of this Act and then issue its
15final administrative decision in the matter to such person. In
16the absence of such a protest within 20 days, the Department's
17decision shall become final without any further determination
18being made or notice given.
19    With respect to security other than bonds (upon which the
20Department may sue in the event of a forfeiture), if the
21taxpayer fails to pay, when due, any amount whose payment such
22security guarantees, the Department shall, after such
23liability is admitted by the taxpayer or established by the
24Department through the issuance of a final assessment that has
25become final under the law, convert the security which that
26taxpayer has furnished into money for the State, after first

 

 

SB3093- 29 -LRB103 34187 HLH 64010 b

1giving the taxpayer at least 10 days' written notice, by
2registered or certified mail, to pay the liability or forfeit
3such security to the Department. If the security consists of
4stocks or bonds or other securities which are listed on a
5public exchange, the Department shall sell such securities
6through such public exchange. If the security consists of an
7irrevocable bank letter of credit, the Department shall
8convert the security in the manner provided for in the Uniform
9Commercial Code. If the security consists of a bank
10certificate of deposit, the Department shall convert the
11security into money by demanding and collecting the amount of
12such bank certificate of deposit from the bank which issued
13such certificate. If the security consists of a type of stocks
14or other securities which are not listed on a public exchange,
15the Department shall sell such security to the highest and
16best bidder after giving at least 10 days' notice of the date,
17time and place of the intended sale by publication in the
18"State Official Newspaper". If the Department realizes more
19than the amount of such liability from the security, plus the
20expenses incurred by the Department in converting the security
21into money, the Department shall pay such excess to the
22taxpayer who furnished such security, and the balance shall be
23paid into the State Treasury.
24    The Department shall discharge any surety and shall
25release and return any security deposited, assigned, pledged
26or otherwise provided to it by a taxpayer under this Section

 

 

SB3093- 30 -LRB103 34187 HLH 64010 b

1within 30 days after:
2        (1) such taxpayer becomes a Prior Continuous
3    Compliance taxpayer; or
4        (2) such taxpayer has ceased to collect receipts on
5    which he is required to remit tax to the Department, has
6    filed a final tax return, and has paid to the Department an
7    amount sufficient to discharge his remaining tax
8    liability, as determined by the Department, under this Act
9    and under every other State tax law or municipal or county
10    tax ordinance or resolution under which the certificate of
11    registration issued under this Act permits the registrant
12    to engage in business without registering separately under
13    such other law, ordinance or resolution. The Department
14    shall make a final determination of the taxpayer's
15    outstanding tax liability as expeditiously as possible
16    after his final tax return has been filed; if the
17    Department cannot make such final determination within 45
18    days after receiving the final tax return, within such
19    period it shall so notify the taxpayer, stating its
20    reasons therefor.
21(Source: P.A. 102-40, eff. 6-25-21; 103-319, eff. 1-1-24.)
 
22    (35 ILCS 120/2b)  (from Ch. 120, par. 441b)
23    Sec. 2b. The Department may, after notice and a hearing as
24provided herein, revoke the certificate of registration of any
25person who violates any of the provisions of this Act. Before

 

 

SB3093- 31 -LRB103 34187 HLH 64010 b

1revocation of a certificate of registration the Department
2shall, within 90 days after non-compliance and at least 7 days
3prior to the date of the hearing, give the person so accused
4notice in writing of the charge against him or her, and on the
5date designated shall conduct a hearing upon this matter. The
6lapse of such 90 day period shall not preclude the Department
7from conducting revocation proceedings at a later date if
8necessary. Any hearing held under this Section shall be
9conducted by the Director of Revenue or by any officer or
10employee of the Department designated, in writing, by the
11Director of Revenue.
12    Upon the hearing of any such proceeding, the Director of
13Revenue, or any officer or employee of the Department
14designated, in writing, by the Director of Revenue, may
15administer oaths and the Department may procure by its
16subpoena the attendance of witnesses and, by its subpoena
17duces tecum, the production of relevant books and papers. Any
18circuit court, upon application either of the accused or of
19the Department, may, by order duly entered, require the
20attendance of witnesses and the production of relevant books
21and papers, before the Department in any hearing relating to
22the revocation of certificates of registration. Upon refusal
23or neglect to obey the order of the court, the court may compel
24obedience thereof by proceedings for contempt.
25    The Department may, by application to any circuit court,
26obtain an injunction restraining any person who engages in the

 

 

SB3093- 32 -LRB103 34187 HLH 64010 b

1business of selling tangible personal property at retail in
2this State without a certificate of registration (either
3because the certificate of registration has been revoked or
4because of a failure to obtain a certificate of registration
5in the first instance) from engaging in such business until
6such person, as if he or she were a new applicant for a
7certificate of registration, shall comply with all of the
8conditions, restrictions and requirements of Section 2a of
9this Act and qualify for and obtain a certificate of
10registration. Upon refusal or neglect to obey the order of the
11court, the court may compel obedience thereof by proceedings
12for contempt.
13    It shall not be a defense in a proceeding before the
14Department to revoke a certificate of registration issued
15under the Act, or in any action by the Department to collect
16any tax due under this Act, that the holder of the certificate
17is a party to an installment payment agreement under Section
182a of this Act if the liability which is the basis of the
19revocation proceeding, or the tax that is sought to be
20collected: (1) was incurred after the date of the agreement
21was approved by the Department; or (2) was incurred prior to
22the date the agreement was approved by the Department, but was
23not included in the agreement; or (3) was included in the
24agreement, but the taxpayer is in default of the agreement.
25    If a person who is licensed as a retailer of alcoholic
26liquor under the Liquor Control Act of 1934 has had his or her

 

 

SB3093- 33 -LRB103 34187 HLH 64010 b

1certificate of registration revoked under this Section 2b,
2then, pursuant to Section 7-6.5 of the Liquor Control Act of
31934, the Department shall file a notice with the Liquor
4Control Commission that includes a certification, signed by
5the Director of Revenue or his or her designee, attesting that
6the person's certificate of registration has been revoked
7after notice and an opportunity to be heard. The Department
8shall also file a notice with the Liquor Control Commission
9that includes a certification, signed by the Director of
10Revenue or his or her designee, if the violation resulting in
11the revocation has been remedied and the certificate of
12registration has been reinstated by the Department.
13(Source: P.A. 86-338; 86-383; 86-1028.)
 
14    Section 10. The Liquor Control Act of 1934 is amended by
15adding Sections 1-3.45 and 7-6.5 as follows:
 
16    (235 ILCS 5/1-3.45 new)
17    Sec. 1-3.45. Inactive license. "Inactive license" means a
18status of licensure in which the licensee holds a current
19license under this Act but is prohibited from engaging in all
20licensed activities because the licensee does not hold an
21active certificate of registration issued by the Department of
22Revenue pursuant to the Retailers' Occupation Tax Act.
 
23    (235 ILCS 5/7-6.5 new)

 

 

SB3093- 34 -LRB103 34187 HLH 64010 b

1    Sec. 7-6.5. Inactive licenses; certificate of
2registration.
3    (a) If any licensee authorized to sell alcoholic liquor at
4retail has had the renewal of the licensee's certificate of
5registration denied by the Department of Revenue pursuant to
6Section 2a of the Retailers' Occupation Tax Act or if such a
7licensee's certificate of registration has been revoked by the
8Department of Revenue pursuant to Section 2b of the Retailers'
9Occupation Tax Act, then the Department of Revenue shall file
10a notice with the Commission that includes a certification,
11signed by Director of Revenue or his or her designee,
12attesting that the renewal of the person's certificate of
13registration has been denied or that the person's certificate
14of registration has been revoked, as applicable, after notice
15and an opportunity to be heard. Notwithstanding any provision
16of this Act to the contrary, upon receipt of a notice under
17this subsection (a) that a licensee's certificate of
18registration has not been renewed or has been revoked, the
19Commission shall inactivate the license of that licensee until
20the Department of Revenue notifies the Commission that the
21violation resulting in the nonrenewal or revocation has been
22remedied and the certificate of registration has been
23reinstated by the Department of Revenue.
24    (b) Distributors licensed under this Act are prohibited
25from selling alcoholic liquor to retailers with an inactive
26license under this Section, and those retailers are prohibited

 

 

SB3093- 35 -LRB103 34187 HLH 64010 b

1from purchasing alcoholic liquor from distributors and from
2engaging in any other activity licensed under this Act pending
3notification by the Department of Revenue that the nonrenewal
4or revocation has been resolved to the Department of Revenue's
5satisfaction.
 
6    Section 95. No acceleration or delay. Where this Act makes
7changes in a statute that is represented in this Act by text
8that is not yet or no longer in effect (for example, a Section
9represented by multiple versions), the use of that text does
10not accelerate or delay the taking effect of (i) the changes
11made by this Act or (ii) provisions derived from any other
12Public Act.
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.