Full Text of HB1519 102nd General Assembly
HB1519 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB1519 Introduced 2/17/2021, by Rep. Emanuel Chris Welch SYNOPSIS AS INTRODUCED: |
| 35 ILCS 120/6 | from Ch. 120, par. 445 |
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Amends the Retailers' Occupation Tax Act. Makes a technical change in a Section concerning credit memorandums and refunds.
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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 6 as follows:
| 6 | | (35 ILCS 120/6) (from Ch. 120, par. 445)
| 7 | | Sec. 6. Credit memorandum or refund. If it appears, after | 8 | | claim therefor
filed with the
the Department, that
an amount | 9 | | of tax or penalty or interest has been paid which was not due | 10 | | under
this Act, whether as the result of a mistake of fact or | 11 | | an error of law,
except as hereinafter provided, then the | 12 | | Department shall issue a credit
memorandum or refund to the | 13 | | person who made the erroneous payment or, if
that person died | 14 | | or became a person under legal disability, to his or her
legal | 15 | | representative, as such.
For purposes of this Section, the tax | 16 | | is deemed to be erroneously paid by
a retailer when the | 17 | | manufacturer of a motor vehicle sold by the retailer
accepts
| 18 | | the return of that automobile and refunds to the purchaser the | 19 | | selling price of
that vehicle as provided in the New Vehicle | 20 | | Buyer Protection Act. When a
motor vehicle is returned for a | 21 | | refund of the purchase price under the New
Vehicle Buyer | 22 | | Protection Act, the Department shall issue a credit memorandum
| 23 | | or a refund for the amount of tax paid by the retailer under |
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| 1 | | this Act
attributable to the initial sale of that vehicle. | 2 | | Claims submitted by the
retailer are subject to the same | 3 | | restrictions and procedures provided for in
this Act.
If it is | 4 | | determined that the Department
should issue a credit | 5 | | memorandum or refund, the Department may first apply
the | 6 | | amount thereof against any tax or penalty or interest due or to | 7 | | become
due under this Act or under the Use Tax Act, the Service | 8 | | Occupation Tax
Act, the Service Use Tax Act,
any local | 9 | | occupation or use tax administered by the Department,
Section | 10 | | 4 of the Water Commission Act of
1985, subsections (b), (c) and | 11 | | (d) of Section 5.01 of the Local Mass
Transit District Act, or | 12 | | subsections (e), (f) and (g) of Section 4.03 of
the Regional | 13 | | Transportation Authority Act, from the person who made the
| 14 | | erroneous payment. If no tax or penalty or interest is due and | 15 | | no
proceeding is pending to determine whether such person is | 16 | | indebted to the
Department for tax or penalty or interest, the | 17 | | credit memorandum or refund
shall be issued to the claimant; | 18 | | or (in the case of a credit memorandum)
the credit memorandum | 19 | | may be assigned and set over by the lawful holder
thereof, | 20 | | subject to reasonable rules of the Department, to any other | 21 | | person
who is subject to this Act, the Use Tax Act, the Service | 22 | | Occupation Tax Act,
the Service Use Tax Act,
any local | 23 | | occupation or use tax administered by the Department,
Section | 24 | | 4 of the Water Commission Act of
1985, subsections (b), (c) and | 25 | | (d) of Section 5.01 of the Local Mass
Transit District Act, or | 26 | | subsections (e), (f) and (g) of Section 4.03 of
the Regional |
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| 1 | | Transportation Authority Act,
and the amount thereof applied | 2 | | by the Department against any tax or
penalty or interest due or | 3 | | to become due under this Act or under the Use
Tax Act, the | 4 | | Service Occupation Tax Act, the Service
Use Tax Act,
any local | 5 | | occupation or use tax administered by the Department,
Section | 6 | | 4 of the Water Commission Act of
1985, subsections (b), (c) and | 7 | | (d) of Section 5.01 of the Local Mass
Transit District Act, or | 8 | | subsections (e), (f) and (g) of Section 4.03 of
the Regional | 9 | | Transportation Authority Act, from such assignee. However, as
| 10 | | to any claim for credit or refund filed with the Department on | 11 | | and after
each January 1 and July 1 no amount of tax or penalty | 12 | | or interest
erroneously paid (either in total or partial | 13 | | liquidation of a tax or
penalty or amount of interest under | 14 | | this Act) more than 3 years prior to
such January 1 and July 1, | 15 | | respectively, shall be credited or refunded,
except that if | 16 | | both the Department and the taxpayer have agreed to an
| 17 | | extension of time to issue a notice of tax liability as
| 18 | | provided in Section 4 of this Act, such claim may be filed at | 19 | | any time
prior to the expiration of the period agreed upon. | 20 | | No claim may be allowed for any amount paid to the | 21 | | Department, whether
paid voluntarily or involuntarily, if paid | 22 | | in total or partial liquidation
of an assessment which had | 23 | | become final before the claim for credit or
refund to recover | 24 | | the amount so paid is filed with the Department, or if
paid in | 25 | | total or partial liquidation of a judgment or order of
court. | 26 | | No credit may be allowed or refund made for any amount paid by |
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| 1 | | or
collected from any claimant unless it appears (a) that the | 2 | | claimant bore
the burden of such amount and has not been | 3 | | relieved thereof nor reimbursed
therefor and has not shifted | 4 | | such burden directly or indirectly through
inclusion of such | 5 | | amount in the price of the tangible personal property
sold by | 6 | | him or her or in any manner whatsoever; and that no | 7 | | understanding or
agreement, written or oral, exists whereby he | 8 | | or she or his or her
legal representative may be relieved of | 9 | | the burden of such amount, be
reimbursed therefor or may shift | 10 | | the burden thereof; or (b) that he or she
or his or her legal | 11 | | representative has repaid unconditionally such amount
to his | 12 | | or her vendee (1) who bore the burden thereof and has not | 13 | | shifted
such burden directly or indirectly, in any manner | 14 | | whatsoever; (2) who, if
he or she has shifted such burden, has | 15 | | repaid unconditionally such amount
to his own vendee; and (3) | 16 | | who is not entitled to receive any reimbursement
therefor from | 17 | | any other source than from his or her vendor, nor to be
| 18 | | relieved of such burden in any manner whatsoever. No credit | 19 | | may be allowed
or refund made for any amount paid by or | 20 | | collected from any claimant unless
it appears that the | 21 | | claimant has unconditionally repaid, to the purchaser,
any | 22 | | amount collected from the purchaser and retained by the | 23 | | claimant with
respect to the same transaction under the Use | 24 | | Tax Act.
| 25 | | Any credit or refund that is allowed under this Section | 26 | | shall bear interest
at the rate and in the manner specified in |
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| 1 | | the Uniform Penalty and Interest
Act.
| 2 | | In case the Department determines that the claimant is | 3 | | entitled to a
refund, such refund shall be made only from the | 4 | | Aviation Fuel Sales Tax Refund Fund or from such appropriation | 5 | | as may be
available for that purpose, as appropriate. If it | 6 | | appears unlikely that the amount available
would permit | 7 | | everyone having a claim allowed during the period
covered by | 8 | | such appropriation or from the Aviation Fuel Sales Tax Refund | 9 | | Fund, as appropriate, to elect to receive a cash refund, the
| 10 | | Department, by rule or regulation, shall provide for the | 11 | | payment of refunds in
hardship cases and shall define what | 12 | | types of cases qualify as hardship cases.
| 13 | | If a retailer who has failed to pay retailers' occupation | 14 | | tax on gross
receipts from retail sales is required by the | 15 | | Department to pay such tax,
such retailer, without filing any | 16 | | formal claim with the Department, shall
be allowed to take | 17 | | credit against such retailers' occupation tax liability
to the | 18 | | extent, if any, to which such retailer has paid an amount | 19 | | equivalent
to retailers' occupation tax or has paid use tax in | 20 | | error to his or her vendor
or vendors of the same tangible | 21 | | personal property which such retailer bought
for resale and | 22 | | did not first use before selling it, and no penalty or
interest | 23 | | shall be charged to such retailer on the amount of such credit.
| 24 | | However, when such credit is allowed to the retailer by the | 25 | | Department, the
vendor is precluded from refunding any of that | 26 | | tax to the retailer and
filing a claim for credit or refund |
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| 1 | | with respect thereto with the
Department. The provisions of | 2 | | this amendatory Act shall be applied
retroactively, regardless | 3 | | of the date of the transaction.
| 4 | | (Source: P.A. 101-10, eff. 6-5-19.)
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