Full Text of SB3960 102nd General Assembly
SB3960 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 SB3960 Introduced 1/21/2022, by Sen. Sara Feigenholtz SYNOPSIS AS INTRODUCED: |
| 235 ILCS 5/8-2 | from Ch. 43, par. 159 |
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Amends the Liquor Control Act of 1934. Excludes new applicants for a manufacturer license or importing distributor license from provisions that require certain licensees to file a bond with the Department of Revenue. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| | | SB3960 | | LRB102 19261 RPS 28027 b |
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| 1 | | AN ACT concerning liquor.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Liquor Control Act of 1934 is amended by | 5 | | changing Section 8-2 as follows:
| 6 | | (235 ILCS 5/8-2) (from Ch. 43, par. 159)
| 7 | | Sec. 8-2. Payments; reports. It is the duty of each | 8 | | manufacturer with respect to alcoholic
liquor produced or | 9 | | imported by such manufacturer, or purchased tax-free by
such | 10 | | manufacturer from another manufacturer or importing
| 11 | | distributor, and of each importing distributor as to alcoholic | 12 | | liquor
purchased by such importing distributor from foreign | 13 | | importers or from
anyone from any point in the United States | 14 | | outside of this State or
purchased tax-free from another | 15 | | manufacturer or importing
distributor, to pay the tax imposed | 16 | | by Section 8-1 to the
Department of Revenue on or before the | 17 | | 15th day of the calendar month
following the calendar month in | 18 | | which such alcoholic liquor is sold or used
by such | 19 | | manufacturer or by such importing distributor other than in an
| 20 | | authorized tax-free manner or to pay that tax electronically | 21 | | as provided in
this Section.
| 22 | | Each manufacturer and each importing distributor shall
| 23 | | make payment under one of the following methods: (1) on or |
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| 1 | | before the
15th day of each calendar month, file in person or | 2 | | by United States
first-class
mail, postage pre-paid,
with the | 3 | | Department of Revenue, on
forms prescribed and furnished by | 4 | | the Department, a report in writing in
such form as may be | 5 | | required by the Department in order to compute, and
assure the | 6 | | accuracy of, the tax due on all taxable sales and uses of
| 7 | | alcoholic liquor occurring during the preceding month. Payment | 8 | | of the tax
in the amount disclosed by the report shall | 9 | | accompany the report or, (2) on
or
before the 15th day of each | 10 | | calendar month, electronically file with the
Department of | 11 | | Revenue, on forms prescribed and furnished by the Department, | 12 | | an
electronic report in such form as may be required by the | 13 | | Department in order to
compute,
and assure the accuracy of, | 14 | | the tax due on all taxable sales and uses of
alcoholic liquor
| 15 | | occurring during the preceding month. An electronic payment of | 16 | | the tax in the
amount
disclosed by the report shall accompany | 17 | | the report. A manufacturer or
distributor who
files an | 18 | | electronic report and electronically pays the tax imposed | 19 | | pursuant to
Section 8-1
to the Department of Revenue on or | 20 | | before the 15th day of the calendar month
following
the | 21 | | calendar month in which such alcoholic liquor is sold or used | 22 | | by that
manufacturer or
importing distributor other than in an | 23 | | authorized tax-free manner shall pay to
the
Department the | 24 | | amount of the tax imposed pursuant to Section 8-1, less a
| 25 | | discount
which is allowed to reimburse the manufacturer or | 26 | | importing distributor
for the
expenses incurred in keeping and |
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| 1 | | maintaining records, preparing and filing the
electronic
| 2 | | returns, remitting the tax, and supplying data to the | 3 | | Department upon
request.
| 4 | | The discount shall be in an amount as follows:
| 5 | | (1) For original returns due on or after January 1, | 6 | | 2003 through
September 30, 2003, the discount shall be | 7 | | 1.75% or $1,250 per return, whichever
is less;
| 8 | | (2) For original returns due on or after October 1, | 9 | | 2003 through September
30, 2004, the discount shall be 2% | 10 | | or $3,000 per return, whichever is less; and
| 11 | | (3) For original returns due on or after October 1, | 12 | | 2004, the discount
shall
be 2% or $2,000 per return, | 13 | | whichever is less.
| 14 | | The Department may, if it deems it necessary in order to | 15 | | insure the
payment of the tax imposed by this Article, require | 16 | | returns to be made
more frequently than and covering periods | 17 | | of less than a month. Such return
shall contain such further | 18 | | information as the Department may reasonably
require.
| 19 | | It shall be presumed that all alcoholic liquors acquired | 20 | | or made by any
importing distributor or manufacturer have been | 21 | | sold or used by him in this
State and are the basis for the tax | 22 | | imposed by this Article unless proven,
to the satisfaction of | 23 | | the Department, that such alcoholic liquors are (1)
still in | 24 | | the possession of such importing distributor or manufacturer, | 25 | | or
(2) prior to the termination of possession have been lost by | 26 | | theft or
through unintentional destruction, or (3) that such |
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| 1 | | alcoholic liquors are
otherwise exempt from taxation under | 2 | | this Act.
| 3 | | If any payment provided for in this Section exceeds the | 4 | | manufacturer's or importing distributor's liabilities under | 5 | | this Act, as shown on an original report, the manufacturer or | 6 | | importing distributor may credit such excess payment against | 7 | | liability subsequently to be remitted to the Department under | 8 | | this Act, in accordance with reasonable rules adopted by the | 9 | | Department. If the Department subsequently determines that all | 10 | | or any part of the credit taken was not actually due to the | 11 | | manufacturer or importing distributor, the manufacturer's or | 12 | | importing distributor's discount shall be reduced by an amount | 13 | | equal to the difference between the discount as applied to the | 14 | | credit taken and that actually due, and the manufacturer or | 15 | | importing distributor shall be liable for penalties and | 16 | | interest on such difference. | 17 | | The Department may require any foreign importer to file | 18 | | monthly
information returns, by the 15th day of the month | 19 | | following the month which
any such return covers, if the | 20 | | Department determines this to be necessary
to the proper | 21 | | performance of the Department's functions and duties under
| 22 | | this Act. Such return shall contain such information as the | 23 | | Department may
reasonably require.
| 24 | | Every manufacturer and importing distributor, except for a | 25 | | new applicant for a manufacturer license or importing | 26 | | distributor license or a
manufacturer or importing distributor |
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| 1 | | that in the preceding
year had less than $50,000 of tax | 2 | | liability under this Article, shall also file, with the
| 3 | | Department, a bond in an amount not less than $1,000 and not to | 4 | | exceed
$100,000 on a form to be approved by, and with a surety | 5 | | or sureties
satisfactory to, the Department. Such bond shall | 6 | | be conditioned upon the
manufacturer or importing distributor | 7 | | paying to the Department all monies
becoming due from such | 8 | | manufacturer or importing distributor under this
Article. The | 9 | | Department shall fix the penalty of such bond in each case,
| 10 | | taking into consideration the amount of alcoholic liquor | 11 | | expected to be
sold and used by such manufacturer or importing | 12 | | distributor, and the
penalty fixed by the Department shall be | 13 | | sufficient, in the Department's
opinion, to protect the State | 14 | | of Illinois against failure to pay any amount
due under this | 15 | | Article, but the amount of the penalty fixed by the
Department | 16 | | shall not exceed twice the amount of tax liability of a monthly
| 17 | | return, nor shall the amount of such penalty be less than | 18 | | $1,000. The
Department shall notify the State Commission of | 19 | | the Department's approval or
disapproval of any such | 20 | | manufacturer's or importing distributor's bond, or
of the | 21 | | termination or cancellation of any such bond, or of the | 22 | | Department's
direction to a manufacturer or importing | 23 | | distributor that he must file
additional bond in order to | 24 | | comply with this Section. The Commission shall
not issue a | 25 | | license to any applicant for a manufacturer's or importing
| 26 | | distributor's license unless the Commission has received a |
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| 1 | | notification
from the Department showing that such applicant | 2 | | has filed a satisfactory
bond with the Department hereunder | 3 | | and that such bond has been approved by
the Department. | 4 | | Failure by any licensed manufacturer or importing
distributor | 5 | | to keep a satisfactory bond in effect with the Department or to
| 6 | | furnish additional bond to the Department, when required | 7 | | hereunder by the
Department to do so, shall be grounds for the | 8 | | revocation or suspension of
such manufacturer's or importing | 9 | | distributor's license by the Commission.
If a manufacturer or | 10 | | importing distributor fails to pay any amount due
under this | 11 | | Article, his bond with the Department shall be deemed | 12 | | forfeited,
and the Department may institute a suit in its own | 13 | | name on such bond.
| 14 | | After notice and opportunity for a hearing the State | 15 | | Commission may
revoke or suspend the license of any | 16 | | manufacturer or importing distributor
who fails to comply with | 17 | | the provisions of this Section. Notice of such
hearing and the | 18 | | time and place thereof shall be in writing and shall
contain a | 19 | | statement of the charges against the licensee. Such notice may | 20 | | be
given by United States registered or certified mail with | 21 | | return receipt
requested, addressed to the person concerned at | 22 | | his last known address and
shall be given not less than 7 days | 23 | | prior to the date fixed for the
hearing. An order revoking or | 24 | | suspending a license under the provisions of
this Section may | 25 | | be reviewed in the manner provided in Section 7-10
of this Act. | 26 | | No new license shall be granted to a person
whose license has |
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| 1 | | been revoked for a violation of this Section or, in case
of | 2 | | suspension, shall such suspension be terminated until he has | 3 | | paid to the
Department all taxes and penalties which he owes | 4 | | the State under the
provisions of this Act.
| 5 | | Every manufacturer or importing distributor who has, as | 6 | | verified by
the Department, continuously complied with the | 7 | | conditions of the bond under
this Act for a period of 2 years | 8 | | shall be considered to be a prior
continuous compliance | 9 | | taxpayer. In determining the consecutive period of
time for | 10 | | qualification as a prior continuous compliance taxpayer, any
| 11 | | consecutive period of time of qualifying compliance | 12 | | immediately prior to
the effective date of this amendatory Act | 13 | | of 1987 shall be credited to any
manufacturer or importing | 14 | | distributor.
| 15 | | A manufacturer or importing distributor that is a prior | 16 | | continuous compliance taxpayer under this Section and becomes | 17 | | a successor as the result of an acquisition, merger, or | 18 | | consolidation of a manufacturer or importing distributor shall | 19 | | be deemed to be a prior continuous compliance taxpayer with | 20 | | respect to the acquired, merged, or consolidated entity.
| 21 | | Every prior continuous compliance taxpayer shall be exempt | 22 | | from the bond
requirements of this Act until the Department | 23 | | has determined the taxpayer
to be delinquent in the filing of | 24 | | any return or deficient in the payment of
any tax under this | 25 | | Act. Any taxpayer who fails to pay an admitted or
established | 26 | | liability under this Act may also be required to post bond or
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| 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 | 4 | | release and return
any bond or security deposit assigned, | 5 | | pledged or otherwise provided to it
by a taxpayer under this | 6 | | Section within 30 days after: (1) such taxpayer
becomes a | 7 | | prior continuous compliance taxpayer; or (2) such taxpayer has
| 8 | | ceased to collect receipts on which he is required to remit tax | 9 | | to the
Department, has filed a final tax return, and has paid | 10 | | to the Department an
amount sufficient to discharge his | 11 | | remaining tax liability as determined by
the Department under | 12 | | this Act.
| 13 | | (Source: P.A. 100-1171, eff. 1-4-19; 101-37, eff. 7-3-19.)
| 14 | | Section 99. Effective date. This Act takes effect upon | 15 | | becoming law.
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