Full Text of HB1985 95th General Assembly
HB1985 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB1985
Introduced 2/26/2007, by Rep. Frank J. Mautino SYNOPSIS AS INTRODUCED: |
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35 ILCS 120/2a |
from Ch. 120, par. 441a |
35 ILCS 130/4 |
from Ch. 120, par. 453.4 |
35 ILCS 135/4 |
from Ch. 120, par. 453.34 |
235 ILCS 5/8-2 |
from Ch. 43, par. 159 |
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Amends the Retailers' Occupation Tax Act, the Cigarette Tax Act, the Cigarette Use Tax Act, and the Liquor Control Act of 1934. Authorizes the Department of Revenue to waive bond requirements for certain licensees under those Acts if the Department determines that the costs of administering and enforcing the bond requirements exceed the amount likely to be recovered from the bonds. Effective immediately.
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A BILL FOR
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HB1985 |
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LRB095 08506 BDD 28687 b |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Retailers' Occupation Tax Act is amended by | 5 |
| changing Section 2a as follows:
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| (35 ILCS 120/2a) (from Ch. 120, par. 441a)
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| Sec. 2a. It is unlawful for any person to engage in the | 8 |
| business of
selling tangible personal property at retail in | 9 |
| this State without a
certificate of registration from the | 10 |
| Department. Application
for a certificate of registration | 11 |
| shall be made to the Department upon
forms furnished by it. | 12 |
| Each such application shall be signed and verified
and shall | 13 |
| state: (1) the name and social security number of the
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| applicant; (2) the address of his principal place
of business; | 15 |
| (3) the address of the principal place of business from which
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| he engages in the business of selling tangible personal | 17 |
| property at retail
in this State and the addresses of all other | 18 |
| places of business, if any
(enumerating such addresses, if any, | 19 |
| in a separate list attached to and
made a part of the | 20 |
| application), from which he engages in the business of
selling | 21 |
| tangible personal property at retail in this State; (4)
the
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| name and address of the person or persons who will be | 23 |
| responsible for
filing returns and payment of taxes due under |
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| this Act; (5) in the
case of
a corporation, the name, title, | 2 |
| and social security number of
each corporate officer; (6) in | 3 |
| the case of a limited liability
company, the
name, social | 4 |
| security number, and FEIN number of
each
manager and member; | 5 |
| and (7) such other information
as the Department may reasonably | 6 |
| require. The application shall contain
an acceptance of | 7 |
| responsibility signed by the person or persons who will be
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| responsible for filing returns and payment of the taxes due | 9 |
| under this
Act. If the applicant will sell tangible personal | 10 |
| property at retail
through vending machines, his application to | 11 |
| register shall indicate the
number of vending machines to be so | 12 |
| operated; and thereafter, he shall
notify the Department by | 13 |
| January 31 of the number of vending machines which
such person | 14 |
| was using in his business of selling tangible personal property
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| at retail on the preceding December 31.
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| The Department may deny a certificate of registration to | 17 |
| any applicant
if the owner, any partner, any manager or member | 18 |
| of a limited liability
company, or a corporate officer of the | 19 |
| applicant, is or
has been the owner, a partner, a manager or | 20 |
| member of a limited
liability company, or a corporate officer, | 21 |
| of another retailer
that is in default for moneys due under | 22 |
| this Act.
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| The Department may require every
Every applicant for a | 24 |
| certificate of registration hereunder shall, at
the time of | 25 |
| filing such application, furnish a bond from a surety company
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| authorized to do business in the State of Illinois, or an |
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| irrevocable
bank letter of credit or a bond signed by 2
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| personal sureties who have filed, with the Department, sworn | 3 |
| statements
disclosing net assets equal to at least 3 times the | 4 |
| amount of the bond to
be required of such applicant, or a bond | 5 |
| secured by an assignment of a bank
account or certificate of | 6 |
| deposit, stocks or bonds, conditioned upon the
applicant paying | 7 |
| to the State of Illinois all moneys becoming due under
this Act | 8 |
| and under any other State tax law or municipal or county tax
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| ordinance or resolution under which the certificate of | 10 |
| registration that is
issued to the applicant under this Act | 11 |
| will permit the applicant to engage
in business without | 12 |
| registering separately under such other law, ordinance
or | 13 |
| resolution. In making a determination as to whether to require | 14 |
| a bond or other security and
The Department shall fix the | 15 |
| amount of such security in each
case, the Department shall take
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| taking into consideration the amount of money expected to | 17 |
| become due
from the applicant under this Act and under any | 18 |
| other State tax law or
municipal or county tax ordinance or | 19 |
| resolution under which the certificate
of registration that is | 20 |
| issued to the applicant under this Act will permit
the | 21 |
| applicant to engage in business without registering separately | 22 |
| under
such other law, ordinance or resolution. The amount of | 23 |
| security required by
the Department shall be such as, in its | 24 |
| opinion, will protect the State of
Illinois against failure to | 25 |
| pay the amount which may become due from the
applicant under | 26 |
| this Act and under any other State tax law or municipal or
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| county tax ordinance or resolution under which the certificate | 2 |
| of
registration that is issued to the applicant under this Act | 3 |
| will permit the
applicant to engage in business without | 4 |
| registering separately under such
other law, ordinance or | 5 |
| resolution, but the amount of the security required
by the | 6 |
| Department shall not exceed three times the amount of the
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| applicant's average monthly tax liability, or $50,000.00, | 8 |
| whichever amount
is lower. The Department may waive the bond or | 9 |
| other security requirement if it determines that the | 10 |
| administrative costs to the State associated with | 11 |
| administering and enforcing the bond or other security | 12 |
| provisions of this Section exceed the amount that is likely to | 13 |
| be recovered from the bonds or other security.
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| No certificate of registration under this Act shall be | 15 |
| issued by the
Department until the applicant provides the | 16 |
| Department with satisfactory
security , if required, as herein | 17 |
| provided for.
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| Upon receipt of the application for certificate of | 19 |
| registration in
proper form, and upon approval by the | 20 |
| Department of the security furnished
by the applicant or waiver | 21 |
| of that requirement , the Department shall issue to such | 22 |
| applicant a
certificate of registration which shall permit the | 23 |
| person to whom it is
issued to engage in the business of | 24 |
| selling tangible personal property at
retail in this State. The | 25 |
| certificate of registration shall be
conspicuously displayed | 26 |
| at the place of business which the person so
registered states |
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| in his application to be the principal place of business
from | 2 |
| which he engages in the business of selling tangible personal | 3 |
| property
at retail in this State.
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| No certificate of registration issued to a taxpayer who | 5 |
| files returns
required by this Act on a monthly basis shall be | 6 |
| valid after the expiration
of 5 years from the date of its | 7 |
| issuance or last renewal. The expiration
date of a | 8 |
| sub-certificate of registration shall be that of the | 9 |
| certificate
of registration to which the sub-certificate | 10 |
| relates. A certificate of
registration shall automatically be | 11 |
| renewed, subject to revocation as
provided by this Act, for an | 12 |
| additional 5 years from the date of its
expiration unless | 13 |
| otherwise notified by the Department as provided by this
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| paragraph. Where a taxpayer to whom a certificate of | 15 |
| registration is
issued under this Act is in default to the | 16 |
| State of Illinois for delinquent
returns or for moneys due
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| under this Act or any other State tax law or municipal or | 18 |
| county ordinance
administered or enforced by the Department, | 19 |
| the Department shall, not less
than 120 days before the | 20 |
| expiration date of such certificate of
registration, give | 21 |
| notice to the taxpayer to whom the certificate was
issued of | 22 |
| the account period of the delinquent returns, the amount of
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| tax,
penalty and interest due and owing from the
taxpayer, and | 24 |
| that the certificate of registration shall not be
automatically | 25 |
| renewed upon its expiration date unless the taxpayer, on or
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| before the date of expiration, has filed and paid the |
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| delinquent returns or
paid the defaulted amount in full. A
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| taxpayer to whom such a notice is issued shall be deemed an | 3 |
| applicant for
renewal. The Department shall promulgate | 4 |
| regulations establishing
procedures for taxpayers who file | 5 |
| returns on a monthly basis but desire and
qualify to change to | 6 |
| a quarterly or yearly filing basis and will no longer
be | 7 |
| subject to renewal under this Section, and for taxpayers who | 8 |
| file
returns on a yearly or quarterly basis but who desire or | 9 |
| are required to
change to a monthly filing basis and will be | 10 |
| subject to renewal under
this Section.
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| The Department may in its discretion approve renewal by an | 12 |
| applicant
who is in default if, at the time of application for | 13 |
| renewal, the applicant
files all of the delinquent returns or | 14 |
| pays to the Department such
percentage of the defaulted amount | 15 |
| as may be
determined by the Department and agrees in writing to | 16 |
| waive all limitations
upon the Department for collection of the | 17 |
| remaining defaulted amount to the
Department over a period not | 18 |
| to exceed 5 years from the date of renewal of
the certificate; | 19 |
| however, no renewal application submitted by an applicant
who | 20 |
| is in default shall be approved if the immediately preceding | 21 |
| renewal by
the applicant was conditioned upon the installment | 22 |
| payment
agreement described in this Section. The payment | 23 |
| agreement herein provided
for shall be in addition to and not | 24 |
| in lieu of the security required by
this Section of a taxpayer | 25 |
| who is no longer considered a prior continuous
compliance | 26 |
| taxpayer. The execution of the payment agreement as provided in
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| this Act shall not toll the accrual of interest at the | 2 |
| statutory rate.
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| A certificate of registration issued under this Act more | 4 |
| than 5 years
before the effective date of this amendatory Act | 5 |
| of 1989 shall expire and
be subject to the renewal provisions | 6 |
| of this Section on the next
anniversary of the date of issuance | 7 |
| of such certificate which occurs more
than 6 months after the | 8 |
| effective date of this amendatory Act of 1989. A
certificate of | 9 |
| registration issued less than 5 years before the effective
date | 10 |
| of this amendatory Act of 1989 shall expire and be subject to | 11 |
| the
renewal provisions of this Section on the 5th anniversary | 12 |
| of the issuance
of the certificate.
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| If the person so registered states that he operates other | 14 |
| places of
business from which he engages in the business of | 15 |
| selling tangible personal
property at retail in this State, the | 16 |
| Department shall furnish him with a
sub-certificate of | 17 |
| registration for each such place of business, and the
applicant | 18 |
| shall display the appropriate sub-certificate of registration | 19 |
| at
each such place of business. All sub-certificates of | 20 |
| registration shall
bear the same registration number as that | 21 |
| appearing upon the certificate of
registration to which such | 22 |
| sub-certificates relate.
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| If the applicant will sell tangible personal property at | 24 |
| retail through
vending machines, the Department shall furnish | 25 |
| him with a sub-certificate
of registration for each such | 26 |
| vending machine, and the applicant shall
display the |
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| appropriate sub-certificate of registration on each such
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| vending machine by attaching the sub-certificate of | 3 |
| registration to a
conspicuous part of such vending machine.
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| Where the same person engages in 2 or more businesses of | 5 |
| selling
tangible personal property at retail in this State, | 6 |
| which businesses are
substantially different in character or | 7 |
| engaged in under different trade
names or engaged in under | 8 |
| other substantially dissimilar circumstances (so
that it is | 9 |
| more practicable, from an accounting, auditing or bookkeeping
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| standpoint, for such businesses to be separately registered), | 11 |
| the
Department may require or permit such person (subject to | 12 |
| the same
requirements concerning the furnishing of security as | 13 |
| those that are
provided for hereinbefore in this Section as to | 14 |
| each application for a
certificate of registration) to apply | 15 |
| for and obtain a separate certificate
of registration for each | 16 |
| such business or for any of such businesses, under
a single | 17 |
| certificate of registration supplemented by related
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| sub-certificates of registration.
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| Any person who is registered under the "Retailers' | 20 |
| Occupation Tax Act"
as of March 8, 1963, and who, during the | 21 |
| 3-year period immediately prior to
March 8, 1963, or during a | 22 |
| continuous 3-year period part of which passed
immediately | 23 |
| before and the remainder of which passes immediately after
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| March 8, 1963, has been so registered continuously and who is | 25 |
| determined by
the Department not to have been either delinquent | 26 |
| or deficient in the
payment of tax liability during that period |
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| under this Act or under any
other State tax law or municipal or | 2 |
| county tax ordinance or resolution
under which the certificate | 3 |
| of registration that is issued to the
registrant under this Act | 4 |
| will permit the registrant to engage in business
without | 5 |
| registering separately under such other law, ordinance or
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| resolution, shall be considered to be a Prior Continuous | 7 |
| Compliance
taxpayer. Also any taxpayer who has, as verified by | 8 |
| the Department,
faithfully and continuously complied with the | 9 |
| condition of his bond or
other security under the provisions of | 10 |
| this Act for a period of 3
consecutive years shall be | 11 |
| considered to be a Prior Continuous Compliance
taxpayer.
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| Every Prior Continuous Compliance taxpayer shall be exempt | 13 |
| from all
requirements under this Act concerning the furnishing | 14 |
| of security as a
condition precedent to his being authorized to | 15 |
| engage in the business of
selling tangible personal property at | 16 |
| retail in this State. This exemption
shall continue for each | 17 |
| such taxpayer until such time as he may be
determined by the | 18 |
| Department to be delinquent in the filing of any returns,
or is | 19 |
| determined by the Department (either through the Department's
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| issuance of a final assessment which has become final under the | 21 |
| Act, or by
the taxpayer's filing of a return which admits tax | 22 |
| that is not paid to be
due) to be delinquent or deficient in | 23 |
| the paying of any tax under this Act
or under any other State | 24 |
| tax law or municipal or county tax ordinance or
resolution | 25 |
| under which the certificate of registration that is issued to
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| the registrant under this Act will permit the registrant to |
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| engage in
business without registering separately under such | 2 |
| other law, ordinance or
resolution, at which time that taxpayer | 3 |
| shall become subject to all the
financial responsibility | 4 |
| requirements of this Act and, as a condition of
being allowed | 5 |
| to continue to engage in the business of selling tangible
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| personal property at retail, may
shall be required to post bond | 7 |
| or other
acceptable security with the Department covering | 8 |
| liability which such
taxpayer may thereafter incur. Any | 9 |
| taxpayer who fails to pay an admitted or
established liability | 10 |
| under this Act may also be required to post bond or
other | 11 |
| acceptable security with this Department guaranteeing the | 12 |
| payment of
such admitted or established liability.
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| No certificate of registration shall be issued to any | 14 |
| person who is in
default to the State of Illinois for moneys | 15 |
| due under this Act or under any
other State tax law or | 16 |
| municipal or county tax ordinance or resolution
under which the | 17 |
| certificate of registration that is issued to the applicant
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| under this Act will permit the applicant to engage in business | 19 |
| without
registering separately under such other law, ordinance | 20 |
| or resolution.
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| Any person aggrieved by any decision of the Department | 22 |
| under this
Section may, within 20 days after notice of such | 23 |
| decision, protest and
request a hearing, whereupon the | 24 |
| Department shall give notice to such
person of the time and | 25 |
| place fixed for such hearing and shall hold a
hearing in | 26 |
| conformity with the provisions of this Act and then issue its
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| final administrative decision in the matter to such person. In | 2 |
| the absence
of such a protest within 20 days, the Department's | 3 |
| decision shall become
final without any further determination | 4 |
| being made or notice given.
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| With respect to security other than bonds (upon which the | 6 |
| Department may
sue in the event of a forfeiture), if the | 7 |
| taxpayer fails to pay, when due,
any amount whose payment such | 8 |
| security guarantees, the Department shall,
after such | 9 |
| liability is admitted by the taxpayer or established by the
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| Department through the issuance of a final assessment that has | 11 |
| become final
under the law, convert the security which that | 12 |
| taxpayer has furnished into
money for the State, after first | 13 |
| giving the taxpayer at least 10 days'
written notice, by | 14 |
| registered or certified mail, to pay the liability or
forfeit | 15 |
| such security to the Department. If the security consists of | 16 |
| stocks
or bonds or other securities which are listed on a | 17 |
| public exchange, the
Department shall sell such securities | 18 |
| through such public exchange. If
the security consists of an | 19 |
| irrevocable bank letter of credit, the
Department shall convert | 20 |
| the security in the manner provided for in the
Uniform | 21 |
| Commercial Code. If the security consists of a bank certificate | 22 |
| of
deposit, the Department shall convert the security into | 23 |
| money by demanding
and collecting the amount of such bank | 24 |
| certificate of deposit from the bank
which issued such | 25 |
| certificate. If the security consists of a type of stocks
or | 26 |
| other securities which are not listed on a public exchange, the
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| Department shall sell such security to the highest and best | 2 |
| bidder after
giving at least 10 days' notice of the date, time | 3 |
| and place of the intended
sale by publication in the "State | 4 |
| Official Newspaper". If the Department
realizes more than the | 5 |
| amount of such liability from the security, plus the
expenses | 6 |
| incurred by the Department in converting the security into | 7 |
| money,
the Department shall pay such excess to the taxpayer who | 8 |
| furnished such
security, and the balance shall be paid into the | 9 |
| State Treasury.
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| The Department shall discharge any surety and shall release | 11 |
| and return
any security deposited, assigned, pledged or | 12 |
| otherwise provided to it by
a taxpayer under this Section | 13 |
| within 30 days after:
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| (1) such taxpayer becomes a Prior Continuous | 15 |
| Compliance taxpayer; or
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| (2) such taxpayer has ceased to collect receipts on | 17 |
| which he is required
to remit tax to the Department, has | 18 |
| filed a final tax return, and has paid
to the Department an | 19 |
| amount sufficient to discharge his remaining tax
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| liability, as determined by the Department, under this Act | 21 |
| and under every
other State tax law or municipal or county | 22 |
| tax ordinance or resolution
under which the certificate of | 23 |
| registration issued under this Act permits
the registrant | 24 |
| to engage in business without registering separately under
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| such other law, ordinance or resolution. The Department | 26 |
| shall make a final
determination of the taxpayer's |
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| outstanding tax liability as expeditiously
as possible | 2 |
| after his final tax return has been filed; if the | 3 |
| Department
cannot make such final determination within 45 | 4 |
| days after receiving the
final tax return, within such | 5 |
| period it shall so notify the taxpayer,
stating its reasons | 6 |
| therefor.
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| (Source: P.A. 90-491, eff. 1-1-98; 91-357, eff. 7-29-99.)
| 8 |
| Section 10. The Cigarette Tax Act is amended by changing | 9 |
| Section 4 as follows:
| 10 |
| (35 ILCS 130/4) (from Ch. 120, par. 453.4)
| 11 |
| Sec. 4. Distributor's license. No person may engage in | 12 |
| business as a distributor of cigarettes in this
State within | 13 |
| the meaning of the first 2 definitions of distributor in
| 14 |
| Section 1 of this Act without first having obtained a license | 15 |
| therefor from
the Department. Application for license shall be | 16 |
| made to the Department in
form as furnished and prescribed by | 17 |
| the Department. Each applicant for a
license under this Section | 18 |
| shall furnish to the Department on the form
signed and verified | 19 |
| by the applicant the following information:
| 20 |
| (a) The name and address of the applicant;
| 21 |
| (b) The address of the location at which the applicant | 22 |
| proposes to
engage in business as a distributor of | 23 |
| cigarettes in this State;
| 24 |
| (c) Such other additional information as the |
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| Department may lawfully
require by its rules and | 2 |
| regulations.
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| The annual license fee payable to the Department for each | 4 |
| distributor's
license shall be $250. The purpose of such annual | 5 |
| license fee is to defray
the cost, to the Department, of
| 6 |
| serializing cigarette tax stamps. Each applicant for license | 7 |
| shall pay such
fee to the Department at the time of submitting | 8 |
| his application for license
to the Department.
| 9 |
| The Department may require every
Every applicant who is | 10 |
| required to procure a distributor's license shall
file with his | 11 |
| application a joint and several bond. If required, such
Such
| 12 |
| bond shall be
executed to the Department of Revenue, with good | 13 |
| and sufficient surety or
sureties residing or licensed to do | 14 |
| business within the State of Illinois,
in the amount of $2,500, | 15 |
| conditioned upon the true and faithful compliance
by the | 16 |
| licensee with all of the provisions of this Act. If required, | 17 |
| such
Such bond, or a
reissue thereof, or a substitute therefor, | 18 |
| shall be kept in effect during
the entire period covered by the | 19 |
| license. A separate application for
license shall be made, a | 20 |
| separate annual license fee paid, and , if required, a separate
| 21 |
| bond filed, for each place of business at which a person who is | 22 |
| required to
procure a distributor's license under this Section | 23 |
| proposes to engage in
business as a distributor in Illinois | 24 |
| under this Act. The Department may waive the bond requirement | 25 |
| if it determines that the administrative costs to the State | 26 |
| associated with administering and enforcing the bond |
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| provisions of this Section exceed the amount that is likely to | 2 |
| be recovered from the bonds.
| 3 |
| The following are ineligible to receive a distributor's | 4 |
| license under
this Act:
| 5 |
| (1) a person who is not of good character and | 6 |
| reputation in the
community in which he resides;
| 7 |
| (2) a person who has been convicted of a felony | 8 |
| under any Federal or
State law, if the Department, | 9 |
| after investigation and a hearing, if
requested by the | 10 |
| applicant, determines that such person has not been
| 11 |
| sufficiently rehabilitated to warrant the public | 12 |
| trust;
| 13 |
| (3) a corporation, if any officer, manager or | 14 |
| director thereof, or any
stockholder or stockholders | 15 |
| owning in the aggregate more than 5% of the
stock of | 16 |
| such corporation, would not be eligible to receive a | 17 |
| license under
this Act for any reason.
| 18 |
| The Department, upon receipt of an application, license fee | 19 |
| and , if required, bond in
proper form, from a person who is | 20 |
| eligible to receive a distributor's
license under this Act, | 21 |
| shall issue to such applicant a license in form as
prescribed | 22 |
| by the Department, which license shall permit the applicant to
| 23 |
| which it is issued to engage in business as a distributor at | 24 |
| the place
shown in his application. All licenses issued by the | 25 |
| Department under this
Act shall be valid for not to exceed one | 26 |
| year after issuance unless sooner
revoked, canceled or |
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| suspended as provided in this Act. No license issued
under this | 2 |
| Act is transferable or assignable. Such license shall be
| 3 |
| conspicuously displayed in the place of business conducted by | 4 |
| the licensee
in Illinois under such license.
| 5 |
| Any person aggrieved by any decision of the Department | 6 |
| under this Section
may, within 20 days after notice of the | 7 |
| decision, protest and request a
hearing. Upon receiving a | 8 |
| request for a hearing, the Department shall give
notice to the | 9 |
| person requesting the hearing of the time and place fixed for | 10 |
| the
hearing and shall hold a hearing in conformity with the | 11 |
| provisions of this Act
and then issue its final administrative | 12 |
| decision in the matter to that person.
In the absence of a | 13 |
| protest and request for a hearing within 20 days, the
| 14 |
| Department's decision shall become final without any further | 15 |
| determination
being made or notice given.
| 16 |
| (Source: P.A. 91-901, eff. 1-1-01; 92-322, eff. 1-1-02.)
| 17 |
| Section 15. The Cigarette Use Tax Act is amended by | 18 |
| changing Section 4 as follows:
| 19 |
| (35 ILCS 135/4) (from Ch. 120, par. 453.34)
| 20 |
| Sec. 4. Distributor's license. A distributor maintaining a | 21 |
| place of business in this State, if required
to procure a | 22 |
| license or allowed to obtain a permit as a distributor under
| 23 |
| the Cigarette Tax Act, need not obtain an additional license or | 24 |
| permit
under this Act, but shall be deemed to be sufficiently |
|
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| 1 |
| licensed or
registered by virtue of his being licensed or | 2 |
| registered under the
Cigarette Tax Act.
| 3 |
| Every distributor maintaining a place of business in this | 4 |
| State, if not
required to procure a license or allowed to | 5 |
| obtain a permit as a
distributor under the Cigarette Tax Act, | 6 |
| shall make a verified application
to the Department (upon a | 7 |
| form prescribed and furnished by the Department)
for a license | 8 |
| to act as a distributor under this Act. In completing such
| 9 |
| application, the applicant shall furnish such information as | 10 |
| the Department
may reasonably require.
| 11 |
| The annual license fee payable to the Department for each | 12 |
| distributor's
license shall be $250. The purpose of such annual | 13 |
| license fee is to defray
the cost, to the Department, of
| 14 |
| serializing cigarette tax stamps. The applicant for license | 15 |
| shall pay such
fee to the Department at the time of submitting | 16 |
| the application for license
to the Department.
| 17 |
| The Department may require such
Such applicant to
shall
| 18 |
| file, with his application, a joint and several
bond. If | 19 |
| required, such
Such bond shall be executed to the Department of | 20 |
| Revenue, with good
and sufficient surety or sureties residing | 21 |
| or licensed to do business
within the State of Illinois, in the | 22 |
| amount of $2,500, conditioned upon the
true and faithful | 23 |
| compliance by the licensee with all of the provisions of
this | 24 |
| Act. If required, such
Such bond, or a reissue thereof, or a | 25 |
| substitute therefor, shall
be kept in effect during the entire | 26 |
| period covered by the license. A
separate application for |
|
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| 1 |
| license shall be made, a separate annual license
fee paid, and , | 2 |
| if required, a separate bond filed, for each place of business | 3 |
| at or from
which the applicant proposes to act as a distributor | 4 |
| under this Act and for
which the applicant is not required to | 5 |
| procure a license or allowed to
obtain a permit as a | 6 |
| distributor under the Cigarette Tax Act. The Department may | 7 |
| waive the bond requirement if it determines that the | 8 |
| administrative costs to the State associated with | 9 |
| administering and enforcing the bond provisions of this Section | 10 |
| exceed the amount that is likely to be recovered from the | 11 |
| bonds.
| 12 |
| The following are ineligible to receive a distributor's | 13 |
| license under
this Act:
| 14 |
| (1) a person who is not of good character and | 15 |
| reputation in the
community in which he resides;
| 16 |
| (2) a person who has been convicted of a felony under | 17 |
| any Federal or
State law, if the Department, after | 18 |
| investigation and a hearing, if
requested by the applicant, | 19 |
| determines that such person has not been
sufficiently | 20 |
| rehabilitated to warrant the public trust;
| 21 |
| (3) a corporation, if any officer, manager or director | 22 |
| thereof, or any
stockholder or stockholders owning in the | 23 |
| aggregate more than 5% of the
stock of such corporation, | 24 |
| would not be eligible to receive a license
hereunder for | 25 |
| any reason.
| 26 |
| Upon approval of such application and , if required, bond |
|
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HB1985 |
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| 1 |
| and payment of the required
annual license fee, the Department | 2 |
| shall issue a license to the applicant.
Such license shall | 3 |
| permit the applicant to engage in business as a
distributor at | 4 |
| or from the place shown in his application. All licenses
issued | 5 |
| by the Department under this Act shall be valid for not to | 6 |
| exceed
one year after issuance unless sooner revoked, canceled | 7 |
| or suspended as in
this Act provided. No license issued under | 8 |
| this Act is transferable or
assignable. Such license shall be | 9 |
| conspicuously displayed at the place of
business for which it | 10 |
| is issued.
| 11 |
| Any person aggrieved by any decision of the Department | 12 |
| under this Section
may, within 20 days after notice of the | 13 |
| decision, protest and request a
hearing. Upon receiving a | 14 |
| request for a hearing, the Department shall give
notice to the | 15 |
| person requesting the hearing of the time and place fixed for | 16 |
| the
hearing and shall hold a hearing in conformity with the | 17 |
| provisions of this Act
and then issue its final administrative | 18 |
| decision in the matter to that person.
In the absence of a | 19 |
| protest and request for a hearing within 20 days, the
| 20 |
| Department's decision shall become final without any further | 21 |
| determination
being made or notice given.
| 22 |
| (Source: P.A. 91-901, eff. 1-1-01; 92-322, eff. 1-1-02.)
| 23 |
| Section 20. The Liquor Control Act of 1934 is amended by | 24 |
| changing Section 8-2 as follows:
|
|
|
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|
| 1 |
| (235 ILCS 5/8-2) (from Ch. 43, par. 159)
| 2 |
| Sec. 8-2. It is the duty of each manufacturer with respect | 3 |
| to alcoholic
liquor produced or imported by such manufacturer, | 4 |
| or purchased tax-free by
such manufacturer from another | 5 |
| manufacturer or importing
distributor, and of each importing | 6 |
| distributor as to alcoholic liquor
purchased by such importing | 7 |
| distributor from foreign importers or from
anyone from any | 8 |
| point in the United States outside of this State or
purchased | 9 |
| tax-free from another manufacturer or importing
distributor, | 10 |
| to pay the tax imposed by Section 8-1 to the
Department of | 11 |
| Revenue on or before the 15th day of the calendar month
| 12 |
| following the calendar month in which such alcoholic liquor is | 13 |
| sold or used
by such manufacturer or by such importing | 14 |
| distributor other than in an
authorized tax-free manner or to | 15 |
| pay that tax electronically as provided in
this Section.
| 16 |
| Each manufacturer and each importing distributor shall
| 17 |
| make payment under one of the following methods: (1) on or | 18 |
| before the
15th day of each calendar month, file in person or | 19 |
| by United States
first-class
mail, postage pre-paid,
with the | 20 |
| Department of Revenue, on
forms prescribed and furnished by the | 21 |
| Department, a report in writing in
such form as may be required | 22 |
| by the Department in order to compute, and
assure the accuracy | 23 |
| of, the tax due on all taxable sales and uses of
alcoholic | 24 |
| liquor occurring during the preceding month. Payment of the tax
| 25 |
| in the amount disclosed by the report shall accompany the | 26 |
| report or, (2) on
or
before the 15th day of each calendar |
|
|
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| 1 |
| month, electronically file with the
Department of Revenue, on | 2 |
| forms prescribed and furnished by the Department, an
electronic | 3 |
| report in such form as may be required by the Department in | 4 |
| order to
compute,
and assure the accuracy of, the tax due on | 5 |
| all taxable sales and uses of
alcoholic liquor
occurring during | 6 |
| the preceding month. An electronic payment of the tax in the
| 7 |
| amount
disclosed by the report shall accompany the report. A | 8 |
| manufacturer or
distributor who
files an electronic report and | 9 |
| electronically pays the tax imposed pursuant to
Section 8-1
to | 10 |
| the Department of Revenue on or before the 15th day of the | 11 |
| calendar month
following
the calendar month in which such | 12 |
| alcoholic liquor is sold or used by that
manufacturer or
| 13 |
| importing distributor other than in an authorized tax-free | 14 |
| manner shall pay to
the
Department the amount of the tax | 15 |
| imposed pursuant to Section 8-1, less a
discount
which is | 16 |
| allowed to reimburse the manufacturer or importing distributor
| 17 |
| for the
expenses incurred in keeping and maintaining records, | 18 |
| preparing and filing the
electronic
returns, remitting the tax, | 19 |
| and supplying data to the Department upon
request.
| 20 |
| The discount shall be in an amount as follows:
| 21 |
| (1) For original returns due on or after January 1, | 22 |
| 2003 through
September 30, 2003, the discount shall be | 23 |
| 1.75% or $1,250 per return, whichever
is less;
| 24 |
| (2) For original returns due on or after October 1, | 25 |
| 2003 through September
30, 2004, the discount shall be 2% | 26 |
| or $3,000 per return, whichever is less; and
|
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HB1985 |
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LRB095 08506 BDD 28687 b |
|
| 1 |
| (3) For original returns due on or after October 1, | 2 |
| 2004, the discount
shall
be 2% or $2,000 per return, | 3 |
| whichever is less.
| 4 |
| The Department may, if it deems it necessary in order to | 5 |
| insure the
payment of the tax imposed by this Article, require | 6 |
| returns to be made
more frequently than and covering periods of | 7 |
| less than a month. Such return
shall contain such further | 8 |
| information as the Department may reasonably
require.
| 9 |
| It shall be presumed that all alcoholic liquors acquired or | 10 |
| made by any
importing distributor or manufacturer have been | 11 |
| sold or used by him in this
State and are the basis for the tax | 12 |
| imposed by this Article unless proven,
to the satisfaction of | 13 |
| the Department, that such alcoholic liquors are (1)
still in | 14 |
| the possession of such importing distributor or manufacturer, | 15 |
| or
(2) prior to the termination of possession have been lost by | 16 |
| theft or
through unintentional destruction, or (3) that such | 17 |
| alcoholic liquors are
otherwise exempt from taxation under this | 18 |
| Act.
| 19 |
| The Department may require any foreign importer to file | 20 |
| monthly
information returns, by the 15th day of the month | 21 |
| following the month which
any such return covers, if the | 22 |
| Department determines this to be necessary
to the proper | 23 |
| performance of the Department's functions and duties under
this | 24 |
| Act. Such return shall contain such information as the | 25 |
| Department may
reasonably require.
| 26 |
| The Department may require every
Every manufacturer and |
|
|
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|
| 1 |
| importing distributor to
shall also file, with the
Department, | 2 |
| a bond in an amount not less than $1,000 and not to exceed
| 3 |
| $100,000 on a form to be approved by, and with a surety or | 4 |
| sureties
satisfactory to, the Department. If required, such
| 5 |
| Such bond shall be conditioned upon the
manufacturer or | 6 |
| importing distributor paying to the Department all monies
| 7 |
| becoming due from such manufacturer or importing distributor | 8 |
| under this
Article. In making a determination as to whether to | 9 |
| require a bond and the amount at which to
The Department shall
| 10 |
| fix the penalty of such bond in each case,
the Department shall | 11 |
| take
taking into consideration the amount of alcoholic liquor | 12 |
| expected to be
sold and used by such manufacturer or importing | 13 |
| distributor, and , if a bond requirement is imposed, the
penalty | 14 |
| fixed by the Department shall be sufficient, in the | 15 |
| Department's
opinion, to protect the State of Illinois against | 16 |
| failure to pay any amount
due under this Article, but the | 17 |
| amount of the penalty fixed by the
Department shall not exceed | 18 |
| twice the amount of tax liability of a monthly
return , nor | 19 |
| shall the amount of such penalty be less than $1,000 . The | 20 |
| Department may waive the bond requirement if it determines that | 21 |
| the administrative costs to the State associated with | 22 |
| administering and enforcing the bond provisions of this Section | 23 |
| exceed the amount that is likely to be recovered from the | 24 |
| bonds. The
Department shall notify the Commission of the | 25 |
| Department's approval or
disapproval of any such | 26 |
| manufacturer's or importing distributor's bond, or
of the |
|
|
|
HB1985 |
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LRB095 08506 BDD 28687 b |
|
| 1 |
| termination or cancellation of any such bond, or of the | 2 |
| Department's
direction to a manufacturer or importing | 3 |
| distributor that he must file
additional bond in order to | 4 |
| comply with this Section. The Commission shall
not issue a | 5 |
| license to any applicant for a manufacturer's or importing
| 6 |
| distributor's license unless the Commission has received a | 7 |
| notification
from the Department showing that such applicant | 8 |
| has filed a satisfactory
bond with the Department hereunder and | 9 |
| that such bond has been approved by
the Department or that such | 10 |
| bond requirement has been waived . Failure by any licensed | 11 |
| manufacturer or importing
distributor to keep a satisfactory | 12 |
| bond in effect with the Department , if required, or to
furnish | 13 |
| additional bond to the Department, when required hereunder by | 14 |
| the
Department to do so, shall be grounds for the revocation or | 15 |
| suspension of
such manufacturer's or importing distributor's | 16 |
| license by the Commission.
If a manufacturer or importing | 17 |
| distributor fails to pay any amount due
under this Article, his | 18 |
| bond with the Department shall be deemed forfeited,
and the | 19 |
| Department may institute a suit in its own name on such bond.
| 20 |
| After notice and opportunity for a hearing the State | 21 |
| Commission may
revoke or suspend the license of any | 22 |
| manufacturer or importing distributor
who fails to comply with | 23 |
| the provisions of this Section. Notice of such
hearing and the | 24 |
| time and place thereof shall be in writing and shall
contain a | 25 |
| statement of the charges against the licensee. Such notice may | 26 |
| be
given by United States registered or certified mail with |
|
|
|
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|
| 1 |
| return receipt
requested, addressed to the person concerned at | 2 |
| his last known address and
shall be given not less than 7 days | 3 |
| prior to the date fixed for the
hearing. An order revoking or | 4 |
| suspending a license under the provisions of
this Section may | 5 |
| be reviewed in the manner provided in Section 7-10
of this Act. | 6 |
| No new license shall be granted to a person
whose license has | 7 |
| been revoked for a violation of this Section or, in case
of | 8 |
| suspension, shall such suspension be terminated until he has | 9 |
| paid to the
Department all taxes and penalties which he owes | 10 |
| the State under the
provisions of this Act.
| 11 |
| Every manufacturer or importing distributor who has, as | 12 |
| verified by
the Department, continuously complied with the | 13 |
| conditions of the bond under
this Act for a period of 2 years | 14 |
| shall be considered to be a prior
continuous compliance | 15 |
| taxpayer. In determining the consecutive period of
time for | 16 |
| qualification as a prior continuous compliance taxpayer, any
| 17 |
| consecutive period of time of qualifying compliance | 18 |
| immediately prior to
the effective date of this amendatory Act | 19 |
| of 1987 shall be credited to any
manufacturer or importing | 20 |
| distributor.
| 21 |
| Every prior continuous compliance taxpayer shall be exempt | 22 |
| from the bond
requirements of this Act until the Department has | 23 |
| determined the taxpayer
to be delinquent in the filing of any | 24 |
| return or deficient in the payment of
any tax under this Act. | 25 |
| Any taxpayer who fails to pay an admitted or
established | 26 |
| liability under this Act may also be required to post bond or
|
|
|
|
HB1985 |
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LRB095 08506 BDD 28687 b |
|
| 1 |
| other acceptable security with the Department guaranteeing the | 2 |
| payment of
such admitted or established liability.
| 3 |
| The Department shall discharge any surety and shall release | 4 |
| and return
any bond or security deposit assigned, pledged or | 5 |
| otherwise provided to it
by a taxpayer under this Section | 6 |
| within 30 days after: (1) such taxpayer
becomes a prior | 7 |
| continuous compliance taxpayer; or (2) such taxpayer has
ceased | 8 |
| to collect receipts on which he is required to remit tax to the
| 9 |
| Department, has filed a final tax return, and has paid to the | 10 |
| Department an
amount sufficient to discharge his remaining tax | 11 |
| liability as determined by
the Department under this Act.
| 12 |
| (Source: P.A. 92-393, eff. 1-1-03; 93-22, eff. 6-20-03.)
| 13 |
| Section 99. Effective date. This Act takes effect upon | 14 |
| becoming law.
|
|