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90_HB0533sam002
LRB9000527KDksam02
1 AMENDMENT TO HOUSE BILL 533
2 AMENDMENT NO. . Amend House Bill 533, AS AMENDED, by
3 replacing the title with the following:
4 "AN ACT in relation to taxes."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 1. Short title. This Act may be cited as the
8 Qualified Technological Equipment Leasing Occupation and Use
9 Tax Act.
10 Section 5. Definitions. As used in this Act, the
11 following terms have the following meanings:
12 "Computer" means a programmable electronically activated
13 device that:
14 (a) is capable of accepting information, applying
15 prescribed processes as to the information, and supplying the
16 results of these processes with or without human
17 intervention, and
18 (b) consists of a central processing unit containing
19 extensive storage, logic, arithmetic, and control
20 capabilities.
21 "Computer or peripheral equipment" means:
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1 (a) any computer, and
2 (b) any related peripheral equipment, however
3 (c) the term "computer or peripheral equipment" does not
4 include:
5 (i) any equipment that is an integral part of other
6 property that is not a computer,
7 (ii) typewriters, calculators, adding and
8 accounting machines, copiers, duplicating equipment, and
9 similar equipment, and
10 (iii) equipment of a kind used primarily for
11 amusement or entertainment of the user.
12 "Department" means the Department of Revenue.
13 "High technology medical equipment" means any electronic,
14 electromechanical, or computer-based high technology
15 equipment used in the screening, monitoring, observation,
16 diagnosis, or treatment of patients in a laboratory, medical,
17 or hospital environment.
18 "Person" means any natural individual, firm, partnership,
19 association, joint stock company, joint adventure, public or
20 private corporation, or a receiver, executor, trustee,
21 conservator, or other representatives appointed by order of
22 any court.
23 "Leasing" means any transfer of the possession or right
24 to possession of qualified technological equipment to a user
25 for valuable consideration, for the purpose of use and not
26 for the purpose of re-lease or sublease.
27 "Lessor" means any person, firm, corporation, or
28 association engaged in the business of leasing qualified
29 technological equipment to users. For this purpose, the
30 objective of making a profit is not necessary to make the
31 leasing activity a business.
32 "Lessee" means any user to whom the possession, or the
33 right to possession, of qualified technological equipment is
34 transferred for a valuable consideration that is paid by such
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1 "lessee" or by someone else.
2 "Gross receipts" means the total leasing price for the
3 lease of qualified technological equipment. In the case of
4 lease transactions in which the consideration is paid to the
5 lessor on an installment basis, the amounts of such payments
6 shall be included by the lessor in gross receipts only as and
7 when payments are received by the lessor.
8 "Leasing price" means the consideration for leasing
9 qualified technological equipment valued in money, whether
10 received in money or otherwise, including cash, credits,
11 property, and services, and shall be determined without any
12 deduction on account of the cost of the property leased, the
13 cost of materials used, labor or service cost, or any other
14 expense whatsoever, but does not include charges that are
15 added by lessors on account of the lessor's tax liability
16 under this Act, or on account of the lessor's duty to
17 collect, from the lessee, the tax that is imposed by Section
18 20 of this Act.
19 "Maintaining a place of business in this State" means
20 having or maintaining within this State, directly or by a
21 subsidiary, an office, repair facilities, distribution house,
22 sales house, warehouse, or other place of business, or any
23 agent, or other representative, operating within this State,
24 irrespective of whether the place of business or agent or
25 other representative is located here permanently or
26 temporarily.
27 "Qualified technological equipment" for purposes of this
28 Act means the following:
29 (a) any computer or peripheral equipment,
30 (b) any high technology telecommunication equipment,
31 including telephone station equipment installed on the
32 customer's premises and central office switching equipment,
33 and
34 (c) any high technology medical equipment.
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1 "Related peripheral equipment" means any auxiliary
2 machine (whether on-line or off-line) that is designed to be
3 placed under the control of the central processing unit of a
4 computer.
5 Section 10. Imposition of occupation tax. Beginning with
6 leases for periods of one year or more entered into on and
7 after January 1, 1999, a tax is imposed upon persons engaged
8 in this State in the business of leasing qualified
9 technological equipment in Illinois at the rate of 8.25% of
10 the gross receipts received from the business.
11 The Department shall have full power to administer and
12 enforce this Section, to collect all taxes and penalties due
13 hereunder, to dispose of taxes and penalties so collected in
14 the manner hereinafter provided, and to determine all rights
15 to credit memoranda, arising on account of the erroneous
16 payment of tax or penalty hereunder. In the administration
17 of, and compliance with, this Section, the Department and
18 persons who are subject to this Section shall have the same
19 rights, remedies, privileges, immunities, powers and duties,
20 and be subject to the same conditions, restrictions,
21 limitations, penalties, and definitions of terms, and employ
22 the same modes of procedure, as are prescribed in Sections 1,
23 la, 2 through 2-65 (except as to the rate of tax), 2a, 2b,
24 2c, 3 (except provisions relating to transaction returns and
25 quarter monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
26 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12 and 13 of the
27 Retailers' Occupation Tax Act that are not inconsistent with
28 this Act and all Sections of the Uniform Penalty and Interest
29 Act as fully as if those provisions were set forth herein.
30 For purposes of this Section, references in such incorporated
31 Sections of the Retailers' Occupation Tax Act to retailers,
32 sellers, or persons engaged in the business of selling
33 tangible personal property means persons engaged in the
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1 leasing of qualified technological equipment under leases
2 subject to this Act.
3 Each month the Department shall pay into the Local
4 Government Distributive Fund 20% of the net revenue realized
5 for the preceding month from the 8.25% tax imposed in this
6 Section. These amounts shall be distributed in the manner
7 provided in Section 2 of the State Revenue Sharing Act. The
8 remaining 80% of the revenue shall be paid as provided for in
9 Section 3 of the Retailers' Occupation Tax Act.
10 Section 15. Registration. Every person engaged in this
11 State in the business of leasing qualified technological
12 equipment shall apply to the Department (upon a form
13 prescribed and furnished by the Department) for a certificate
14 of registration under this Act. The certificate of
15 registration that is issued by the Department to a retailer
16 under the Retailers' Occupation Tax Act shall permit the
17 lessor to engage in a business that is taxable under this
18 Section without registering separately with the Department.
19 Section 20. Imposition of use tax. Beginning with leases
20 for periods of one year or more entered into on and after
21 January 1, 1999, a tax is imposed upon the privilege of using
22 in this State qualified technological equipment that is
23 leased from a lessor. The tax is at the rate of 8.25% of the
24 leasing price of the qualified technological equipment paid
25 to the lessor under any lease agreement.
26 The Department shall have full power to administer and
27 enforce this Section; to collect all taxes, penalties, and
28 interest due hereunder; to dispose of taxes, penalties, and
29 interest so collected in the manner hereinafter provided; and
30 to determine all rights to credit memoranda or refunds
31 arising on account of the erroneous payment of tax, penalty,
32 or interest hereunder. In the administration of, and
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1 compliance with, this Section, the Department and persons who
2 are subject to this Section shall have the same rights,
3 remedies, privileges, immunities, powers, and duties, and be
4 subject to the same conditions, restrictions, limitations,
5 penalties, and definitions of terms, and employ the same
6 modes of procedure, as are prescribed in Sections 2, 3
7 through 3-80 (except as to the rate of tax), 4, 6, 7, 8, 9
8 (except provisions relating to transactions returns and
9 quarter monthly payments), 10, 11, 12, 12a, 12b, 13, 14, 15,
10 19, 20, 21 and 22 of the Use Tax Act that are not
11 inconsistent with this Act as fully as if those provisions
12 were set forth herein. For purposes of this Section,
13 references in such incorporated Sections of the Use Tax Act
14 to users or purchasers means lessees of qualified
15 technological equipment under leases subject to this Act.
16 Each month the Department shall pay into the Local
17 Government Distributive Fund 20% of the net revenue realized
18 for the preceding month from the 8.25% tax imposed in this
19 Section. These amounts shall be distributed in the manner
20 provided in Section 2 of the State Revenue Sharing Act. The
21 remaining 80% of the revenue shall be paid as provided for in
22 Section 9 of the Use Tax Act.
23 Section 25. Exemption due to prior taxation. The taxes
24 imposed under Sections 10 and 20 of this Act do not apply to
25 leases of qualified technological equipment as defined in
26 this Act if the lessor had properly paid, prior to January 1,
27 1999, Illinois use tax or service use tax to a retailer or
28 directly to the Department on the purchase or use of such
29 leased property.
30 Section 30. Use tax collected. The use tax imposed by
31 Section 20 shall be collected from the lessee and remitted to
32 the Department by a lessor maintaining a place of business in
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1 this State.
2 The use tax imposed by Section 20 and not paid to a
3 lessor pursuant to the preceding paragraph of this Section
4 shall be paid to the Department directly by any person using
5 the leased qualified technological equipment within this
6 State.
7 Lessors shall collect the tax from lessees by adding the
8 tax to the leasing price of the qualified technological
9 equipment in the manner prescribed by the Department. The
10 Department shall have the power to adopt and promulgate
11 reasonable rules and regulations for the adding of the tax by
12 lessors to leasing prices by prescribing bracket systems for
13 the purpose of enabling the lessors to add and collect, as
14 far as practicable, the amount of the tax.
15 The tax imposed by this Act shall, when collected, be
16 stated as a distinct item on the customer's bill, separate
17 and apart from the leasing price of the qualified
18 technological equipment.
19 Section 35. Severability clause. If any clause, sentence,
20 Section, provision, or part thereof of this Act or the
21 application thereof to any person or circumstance shall be
22 adjudged to be unconstitutional, the remainder of this Act or
23 its application to persons or circumstances other than those
24 to which it is held invalid, shall not be affected thereby.
25 In particular, if any provision that exempts or has the
26 effect of exempting some class of users or some kind of use
27 from the tax imposed by this Act should be held to constitute
28 or to result in an invalid classification or to be
29 unconstitutional for some other reason, that provision shall
30 be deemed to be severable, with the remainder of this Act
31 without the provision being held constitutional.
32 Section 45. The State Revenue Sharing Act is amended by
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1 changing Section 1 as follows:
2 (30 ILCS 115/1) (from Ch. 85, par. 611)
3 Sec. 1. Local Government Distributive Fund. Through June
4 30, 1994, as soon as may be after the first day of each month
5 the Department of Revenue shall certify to the Treasurer an
6 amount equal to 1/12 of the net revenue realized from the tax
7 imposed by subsections (a) and (b) of Section 201 of the
8 Illinois Income Tax Act during the preceding month.
9 Beginning July 1, 1994, and continuing through June 30, 1995,
10 as soon as may be after the first day of each month, the
11 Department of Revenue shall certify to the Treasurer an
12 amount equal to 1/11 of the net revenue realized from the tax
13 imposed by subsections (a) and (b) of Section 201 of the
14 Illinois Income Tax Act during the preceding month. Beginning
15 July 1, 1995, as soon as may be after the first day of each
16 month, the Department of Revenue shall certify to the
17 Treasurer an amount equal to 1/10 of the net revenue realized
18 from the tax imposed by subsections (a) and (b) of Section
19 201 of the Illinois Income Tax Act during the preceding
20 month. Net revenue realized for a month shall be defined as
21 the revenue from the tax imposed by subsections (a) and (b)
22 of Section 201 of the Illinois Income Tax Act which is
23 deposited in the General Revenue Fund, the Education
24 Assistance Fund and the Income Tax Surcharge Local Government
25 Distributive Fund during the month minus the amount paid out
26 of the General Revenue Fund in State warrants during that
27 same month as refunds to taxpayers for overpayment of
28 liability under the tax imposed by subsections (a) and (b) of
29 Section 201 of the Illinois Income Tax Act. In addition,
30 beginning January 1, 1999, as soon as may be after the first
31 day of each month, the Department shall certify to the
32 Treasurer an amount equal to 1/5 of the net revenue realized
33 under the Qualified Technological Equipment Leasing
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1 Occupation and Use Tax Act. Upon receipt of such
2 certification, the Treasurer shall transfer from the General
3 Revenue Fund to a special fund in the State treasury, to be
4 known as the "Local Government Distributive Fund", the amount
5 shown on such certification.
6 All amounts paid into the Local Government Distributive
7 Fund in accordance with this Section and allocated pursuant
8 to this Act are appropriated on a continuing basis.
9 (Source: P.A. 88-89.)
10 Section 50. The Use Tax Act is amended by changing
11 Sections 3-5 and 9 and adding Section 9.5 as follows:
12 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
13 Sec. 3-5. Exemptions. Use of the following tangible
14 personal property is exempt from the tax imposed by this Act:
15 (1) Personal property purchased from a corporation,
16 society, association, foundation, institution, or
17 organization, other than a limited liability company, that is
18 organized and operated as a not-for-profit service enterprise
19 for the benefit of persons 65 years of age or older if the
20 personal property was not purchased by the enterprise for the
21 purpose of resale by the enterprise.
22 (2) Personal property purchased by a not-for-profit
23 Illinois county fair association for use in conducting,
24 operating, or promoting the county fair.
25 (3) Personal property purchased by a not-for-profit
26 music or dramatic arts organization that establishes, by
27 proof required by the Department by rule, that it has
28 received an exemption under Section 501(c)(3) of the Internal
29 Revenue Code and that is organized and operated for the
30 presentation of live public performances of musical or
31 theatrical works on a regular basis.
32 (4) Personal property purchased by a governmental body,
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1 by a corporation, society, association, foundation, or
2 institution organized and operated exclusively for
3 charitable, religious, or educational purposes, or by a
4 not-for-profit corporation, society, association, foundation,
5 institution, or organization that has no compensated officers
6 or employees and that is organized and operated primarily for
7 the recreation of persons 55 years of age or older. A limited
8 liability company may qualify for the exemption under this
9 paragraph only if the limited liability company is organized
10 and operated exclusively for educational purposes. On and
11 after July 1, 1987, however, no entity otherwise eligible for
12 this exemption shall make tax-free purchases unless it has an
13 active exemption identification number issued by the
14 Department.
15 (5) A passenger car that is a replacement vehicle to the
16 extent that the purchase price of the car is subject to the
17 Replacement Vehicle Tax.
18 (6) Graphic arts machinery and equipment, including
19 repair and replacement parts, both new and used, and
20 including that manufactured on special order, certified by
21 the purchaser to be used primarily for graphic arts
22 production, and including machinery and equipment purchased
23 for lease.
24 (7) Farm chemicals.
25 (8) Legal tender, currency, medallions, or gold or
26 silver coinage issued by the State of Illinois, the
27 government of the United States of America, or the government
28 of any foreign country, and bullion.
29 (9) Personal property purchased from a teacher-sponsored
30 student organization affiliated with an elementary or
31 secondary school located in Illinois.
32 (10) A motor vehicle of the first division, a motor
33 vehicle of the second division that is a self-contained motor
34 vehicle designed or permanently converted to provide living
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1 quarters for recreational, camping, or travel use, with
2 direct walk through to the living quarters from the driver's
3 seat, or a motor vehicle of the second division that is of
4 the van configuration designed for the transportation of not
5 less than 7 nor more than 16 passengers, as defined in
6 Section 1-146 of the Illinois Vehicle Code, that is used for
7 automobile renting, as defined in the Automobile Renting
8 Occupation and Use Tax Act.
9 (11) Farm machinery and equipment, both new and used,
10 including that manufactured on special order, certified by
11 the purchaser to be used primarily for production agriculture
12 or State or federal agricultural programs, including
13 individual replacement parts for the machinery and equipment,
14 and including machinery and equipment purchased for lease,
15 but excluding motor vehicles required to be registered under
16 the Illinois Vehicle Code. Horticultural polyhouses or hoop
17 houses used for propagating, growing, or overwintering plants
18 shall be considered farm machinery and equipment under this
19 paragraph.
20 (12) Fuel and petroleum products sold to or used by an
21 air common carrier, certified by the carrier to be used for
22 consumption, shipment, or storage in the conduct of its
23 business as an air common carrier, for a flight destined for
24 or returning from a location or locations outside the United
25 States without regard to previous or subsequent domestic
26 stopovers.
27 (13) Proceeds of mandatory service charges separately
28 stated on customers' bills for the purchase and consumption
29 of food and beverages purchased at retail from a retailer, to
30 the extent that the proceeds of the service charge are in
31 fact turned over as tips or as a substitute for tips to the
32 employees who participate directly in preparing, serving,
33 hosting or cleaning up the food or beverage function with
34 respect to which the service charge is imposed.
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1 (14) Oil field exploration, drilling, and production
2 equipment, including (i) rigs and parts of rigs, rotary rigs,
3 cable tool rigs, and workover rigs, (ii) pipe and tubular
4 goods, including casing and drill strings, (iii) pumps and
5 pump-jack units, (iv) storage tanks and flow lines, (v) any
6 individual replacement part for oil field exploration,
7 drilling, and production equipment, and (vi) machinery and
8 equipment purchased for lease; but excluding motor vehicles
9 required to be registered under the Illinois Vehicle Code.
10 (15) Photoprocessing machinery and equipment, including
11 repair and replacement parts, both new and used, including
12 that manufactured on special order, certified by the
13 purchaser to be used primarily for photoprocessing, and
14 including photoprocessing machinery and equipment purchased
15 for lease.
16 (16) Coal exploration, mining, offhighway hauling,
17 processing, maintenance, and reclamation equipment, including
18 replacement parts and equipment, and including equipment
19 purchased for lease, but excluding motor vehicles required to
20 be registered under the Illinois Vehicle Code.
21 (17) Distillation machinery and equipment, sold as a
22 unit or kit, assembled or installed by the retailer,
23 certified by the user to be used only for the production of
24 ethyl alcohol that will be used for consumption as motor fuel
25 or as a component of motor fuel for the personal use of the
26 user, and not subject to sale or resale.
27 (18) Manufacturing and assembling machinery and
28 equipment used primarily in the process of manufacturing or
29 assembling tangible personal property for wholesale or retail
30 sale or lease, whether that sale or lease is made directly by
31 the manufacturer or by some other person, whether the
32 materials used in the process are owned by the manufacturer
33 or some other person, or whether that sale or lease is made
34 apart from or as an incident to the seller's engaging in the
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1 service occupation of producing machines, tools, dies, jigs,
2 patterns, gauges, or other similar items of no commercial
3 value on special order for a particular purchaser.
4 (19) Personal property delivered to a purchaser or
5 purchaser's donee inside Illinois when the purchase order for
6 that personal property was received by a florist located
7 outside Illinois who has a florist located inside Illinois
8 deliver the personal property.
9 (20) Semen used for artificial insemination of livestock
10 for direct agricultural production.
11 (21) Horses, or interests in horses, registered with and
12 meeting the requirements of any of the Arabian Horse Club
13 Registry of America, Appaloosa Horse Club, American Quarter
14 Horse Association, United States Trotting Association, or
15 Jockey Club, as appropriate, used for purposes of breeding or
16 racing for prizes.
17 (22) Computers and communications equipment utilized for
18 any hospital purpose and equipment used in the diagnosis,
19 analysis, or treatment of hospital patients purchased by a
20 lessor who leases the equipment, under a lease of one year or
21 longer executed or in effect at the time the lessor would
22 otherwise be subject to the tax imposed by this Act, to a
23 hospital that has been issued an active tax exemption
24 identification number by the Department under Section 1g of
25 the Retailers' Occupation Tax Act. If the equipment is
26 leased in a manner that does not qualify for this exemption
27 or is used in any other non-exempt manner, the lessor shall
28 be liable for the tax imposed under this Act or the Service
29 Use Tax Act, as the case may be, based on the fair market
30 value of the property at the time the non-qualifying use
31 occurs. No lessor shall collect or attempt to collect an
32 amount (however designated) that purports to reimburse that
33 lessor for the tax imposed by this Act or the Service Use Tax
34 Act, as the case may be, if the tax has not been paid by the
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1 lessor. If a lessor improperly collects any such amount from
2 the lessee, the lessee shall have a legal right to claim a
3 refund of that amount from the lessor. If, however, that
4 amount is not refunded to the lessee for any reason, the
5 lessor is liable to pay that amount to the Department. This
6 paragraph is exempt from the provisions of Section 3-90.
7 (23) Personal property purchased by a lessor who leases
8 the property, under a lease of one year or longer executed or
9 in effect at the time the lessor would otherwise be subject
10 to the tax imposed by this Act, to a governmental body that
11 has been issued an active sales tax exemption identification
12 number by the Department under Section 1g of the Retailers'
13 Occupation Tax Act. If the property is leased in a manner
14 that does not qualify for this exemption or used in any other
15 non-exempt manner, the lessor shall be liable for the tax
16 imposed under this Act or the Service Use Tax Act, as the
17 case may be, based on the fair market value of the property
18 at the time the non-qualifying use occurs. No lessor shall
19 collect or attempt to collect an amount (however designated)
20 that purports to reimburse that lessor for the tax imposed by
21 this Act or the Service Use Tax Act, as the case may be, if
22 the tax has not been paid by the lessor. If a lessor
23 improperly collects any such amount from the lessee, the
24 lessee shall have a legal right to claim a refund of that
25 amount from the lessor. If, however, that amount is not
26 refunded to the lessee for any reason, the lessor is liable
27 to pay that amount to the Department. This paragraph is
28 exempt from the provisions of Section 3-90.
29 (24) Beginning with taxable years ending on or after
30 December 31, 1995 and ending with taxable years ending on or
31 before December 31, 2004, personal property that is donated
32 for disaster relief to be used in a State or federally
33 declared disaster area in Illinois or bordering Illinois by a
34 manufacturer or retailer that is registered in this State to
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1 a corporation, society, association, foundation, or
2 institution that has been issued a sales tax exemption
3 identification number by the Department that assists victims
4 of the disaster who reside within the declared disaster area.
5 (25) Beginning with taxable years ending on or after
6 December 31, 1995 and ending with taxable years ending on or
7 before December 31, 2004, personal property that is used in
8 the performance of infrastructure repairs in this State,
9 including but not limited to municipal roads and streets,
10 access roads, bridges, sidewalks, waste disposal systems,
11 water and sewer line extensions, water distribution and
12 purification facilities, storm water drainage and retention
13 facilities, and sewage treatment facilities, resulting from a
14 State or federally declared disaster in Illinois or bordering
15 Illinois when such repairs are initiated on facilities
16 located in the declared disaster area within 6 months after
17 the disaster.
18 (26) Beginning January 1, 1999, qualified technological
19 equipment purchased for lease by lessors under leases subject
20 to the Qualified Technological Equipment Leasing Occupation
21 and Use Tax Act. However, this exemption will last only as
22 long as the property continues to be leased by the lessor.
23 When the property is no longer used for lease and the
24 property reverts to the lessor, the property is subject to
25 the tax imposed by this Act upon the fair market value of the
26 property on the date of the reversion. The property will not
27 be considered to revert to the lessor as long as the lessor
28 holds the property in his or her lease inventory and does not
29 otherwise use the property, except for demonstration
30 purposes. In addition, property held in the lessor's lease
31 inventory that is subsequently leased for a period of less
32 than one year will not be considered to revert to the lessor
33 if the property is returned to lease inventory at the
34 termination of the lease. This paragraph is exempt from the
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1 provisions of Section 3-90.
2 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
3 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
4 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
5 eff. 12-12-97.)
6 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
7 (Text of Section before amendment by P.A. 90-491)
8 Sec. 9. Except as to motor vehicles, watercraft,
9 aircraft, and trailers that are required to be registered
10 with an agency of this State, each retailer required or
11 authorized to collect the tax imposed by this Act shall pay
12 to the Department the amount of such tax (except as otherwise
13 provided) at the time when he is required to file his return
14 for the period during which such tax was collected, less a
15 discount of 2.1% prior to January 1, 1990, and 1.75% on and
16 after January 1, 1990, or $5 per calendar year, whichever is
17 greater, which is allowed to reimburse the retailer for
18 expenses incurred in collecting the tax, keeping records,
19 preparing and filing returns, remitting the tax and supplying
20 data to the Department on request. In the case of retailers
21 who report and pay the tax on a transaction by transaction
22 basis, as provided in this Section, such discount shall be
23 taken with each such tax remittance instead of when such
24 retailer files his periodic return. A retailer need not
25 remit that part of any tax collected by him to the extent
26 that he is required to remit and does remit the tax imposed
27 by the Retailers' Occupation Tax Act, with respect to the
28 sale of the same property.
29 Where such tangible personal property is sold under a
30 conditional sales contract, or under any other form of sale
31 wherein the payment of the principal sum, or a part thereof,
32 is extended beyond the close of the period for which the
33 return is filed, the retailer, in collecting the tax (except
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1 as to motor vehicles, watercraft, aircraft, and trailers that
2 are required to be registered with an agency of this State),
3 may collect for each tax return period, only the tax
4 applicable to that part of the selling price actually
5 received during such tax return period.
6 Except as provided in this Section, on or before the
7 twentieth day of each calendar month, such retailer shall
8 file a return for the preceding calendar month. Such return
9 shall be filed on forms prescribed by the Department and
10 shall furnish such information as the Department may
11 reasonably require.
12 The Department may require returns to be filed on a
13 quarterly basis. If so required, a return for each calendar
14 quarter shall be filed on or before the twentieth day of the
15 calendar month following the end of such calendar quarter.
16 The taxpayer shall also file a return with the Department for
17 each of the first two months of each calendar quarter, on or
18 before the twentieth day of the following calendar month,
19 stating:
20 1. The name of the seller;
21 2. The address of the principal place of business
22 from which he engages in the business of selling tangible
23 personal property at retail in this State;
24 3. The total amount of taxable receipts received by
25 him during the preceding calendar month from sales of
26 tangible personal property by him during such preceding
27 calendar month, including receipts from charge and time
28 sales, but less all deductions allowed by law;
29 4. The amount of credit provided in Section 2d of
30 this Act;
31 5. The amount of tax due;
32 5-5. The signature of the taxpayer; and
33 6. Such other reasonable information as the
34 Department may require.
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1 If a taxpayer fails to sign a return within 30 days after
2 the proper notice and demand for signature by the Department,
3 the return shall be considered valid and any amount shown to
4 be due on the return shall be deemed assessed.
5 Beginning October 1, 1993, a taxpayer who has an average
6 monthly tax liability of $150,000 or more shall make all
7 payments required by rules of the Department by electronic
8 funds transfer. Beginning October 1, 1994, a taxpayer who has
9 an average monthly tax liability of $100,000 or more shall
10 make all payments required by rules of the Department by
11 electronic funds transfer. Beginning October 1, 1995, a
12 taxpayer who has an average monthly tax liability of $50,000
13 or more shall make all payments required by rules of the
14 Department by electronic funds transfer. The term "average
15 monthly tax liability" means the sum of the taxpayer's
16 liabilities under this Act, and under all other State and
17 local occupation and use tax laws administered by the
18 Department, for the immediately preceding calendar year
19 divided by 12.
20 Before August 1 of each year beginning in 1993, the
21 Department shall notify all taxpayers required to make
22 payments by electronic funds transfer. All taxpayers required
23 to make payments by electronic funds transfer shall make
24 those payments for a minimum of one year beginning on October
25 1.
26 Any taxpayer not required to make payments by electronic
27 funds transfer may make payments by electronic funds transfer
28 with the permission of the Department.
29 All taxpayers required to make payment by electronic
30 funds transfer and any taxpayers authorized to voluntarily
31 make payments by electronic funds transfer shall make those
32 payments in the manner authorized by the Department.
33 The Department shall adopt such rules as are necessary to
34 effectuate a program of electronic funds transfer and the
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1 requirements of this Section.
2 If the taxpayer's average monthly tax liability to the
3 Department under this Act, the Retailers' Occupation Tax Act,
4 the Service Occupation Tax Act, the Service Use Tax Act was
5 $10,000 or more during the preceding 4 complete calendar
6 quarters, he shall file a return with the Department each
7 month by the 20th day of the month next following the month
8 during which such tax liability is incurred and shall make
9 payments to the Department on or before the 7th, 15th, 22nd
10 and last day of the month during which such liability is
11 incurred. If the month during which such tax liability is
12 incurred began prior to January 1, 1985, each payment shall
13 be in an amount equal to 1/4 of the taxpayer's actual
14 liability for the month or an amount set by the Department
15 not to exceed 1/4 of the average monthly liability of the
16 taxpayer to the Department for the preceding 4 complete
17 calendar quarters (excluding the month of highest liability
18 and the month of lowest liability in such 4 quarter period).
19 If the month during which such tax liability is incurred
20 begins on or after January 1, 1985, and prior to January 1,
21 1987, each payment shall be in an amount equal to 22.5% of
22 the taxpayer's actual liability for the month or 27.5% of the
23 taxpayer's liability for the same calendar month of the
24 preceding year. If the month during which such tax liability
25 is incurred begins on or after January 1, 1987, and prior to
26 January 1, 1988, each payment shall be in an amount equal to
27 22.5% of the taxpayer's actual liability for the month or
28 26.25% of the taxpayer's liability for the same calendar
29 month of the preceding year. If the month during which such
30 tax liability is incurred begins on or after January 1, 1988,
31 and prior to January 1, 1989, or begins on or after January
32 1, 1996, each payment shall be in an amount equal to 22.5% of
33 the taxpayer's actual liability for the month or 25% of the
34 taxpayer's liability for the same calendar month of the
-20- LRB9000527KDksam02
1 preceding year. If the month during which such tax liability
2 is incurred begins on or after January 1, 1989, and prior to
3 January 1, 1996, each payment shall be in an amount equal to
4 22.5% of the taxpayer's actual liability for the month or 25%
5 of the taxpayer's liability for the same calendar month of
6 the preceding year or 100% of the taxpayer's actual liability
7 for the quarter monthly reporting period. The amount of such
8 quarter monthly payments shall be credited against the final
9 tax liability of the taxpayer's return for that month. Once
10 applicable, the requirement of the making of quarter monthly
11 payments to the Department shall continue until such
12 taxpayer's average monthly liability to the Department during
13 the preceding 4 complete calendar quarters (excluding the
14 month of highest liability and the month of lowest liability)
15 is less than $9,000, or until such taxpayer's average monthly
16 liability to the Department as computed for each calendar
17 quarter of the 4 preceding complete calendar quarter period
18 is less than $10,000. However, if a taxpayer can show the
19 Department that a substantial change in the taxpayer's
20 business has occurred which causes the taxpayer to anticipate
21 that his average monthly tax liability for the reasonably
22 foreseeable future will fall below $10,000, then such
23 taxpayer may petition the Department for change in such
24 taxpayer's reporting status. The Department shall change
25 such taxpayer's reporting status unless it finds that such
26 change is seasonal in nature and not likely to be long term.
27 If any such quarter monthly payment is not paid at the time
28 or in the amount required by this Section, then the
29 taxpayer's 2.1% or 1.75% vendors' discount shall be reduced
30 by 2.1% or 1.75%, as the case may be, of the difference
31 between the minimum amount due and the amount of such quarter
32 monthly payment actually and timely paid and the taxpayer
33 shall be liable for penalties and interest on such
34 difference, except insofar as the taxpayer has previously
-21- LRB9000527KDksam02
1 made payments for that month to the Department in excess of
2 the minimum payments previously due as provided in this
3 Section. The Department shall make reasonable rules and
4 regulations to govern the quarter monthly payment amount and
5 quarter monthly payment dates for taxpayers who file on other
6 than a calendar monthly basis.
7 If any such payment provided for in this Section exceeds
8 the taxpayer's liabilities under this Act, the Retailers'
9 Occupation Tax Act, the Service Occupation Tax Act and the
10 Service Use Tax Act, as shown by an original monthly return,
11 the Department shall issue to the taxpayer a credit
12 memorandum no later than 30 days after the date of payment,
13 which memorandum may be submitted by the taxpayer to the
14 Department in payment of tax liability subsequently to be
15 remitted by the taxpayer to the Department or be assigned by
16 the taxpayer to a similar taxpayer under this Act, the
17 Retailers' Occupation Tax Act, the Service Occupation Tax Act
18 or the Service Use Tax Act, in accordance with reasonable
19 rules and regulations to be prescribed by the Department,
20 except that if such excess payment is shown on an original
21 monthly return and is made after December 31, 1986, no credit
22 memorandum shall be issued, unless requested by the taxpayer.
23 If no such request is made, the taxpayer may credit such
24 excess payment against tax liability subsequently to be
25 remitted by the taxpayer to the Department under this Act,
26 the Retailers' Occupation Tax Act, the Service Occupation Tax
27 Act or the Service Use Tax Act, in accordance with reasonable
28 rules and regulations prescribed by the Department. If the
29 Department subsequently determines that all or any part of
30 the credit taken was not actually due to the taxpayer, the
31 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
32 by 2.1% or 1.75% of the difference between the credit taken
33 and that actually due, and the taxpayer shall be liable for
34 penalties and interest on such difference.
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1 If the retailer is otherwise required to file a monthly
2 return and if the retailer's average monthly tax liability to
3 the Department does not exceed $200, the Department may
4 authorize his returns to be filed on a quarter annual basis,
5 with the return for January, February, and March of a given
6 year being due by April 20 of such year; with the return for
7 April, May and June of a given year being due by July 20 of
8 such year; with the return for July, August and September of
9 a given year being due by October 20 of such year, and with
10 the return for October, November and December of a given year
11 being due by January 20 of the following year.
12 If the retailer is otherwise required to file a monthly
13 or quarterly return and if the retailer's average monthly tax
14 liability to the Department does not exceed $50, the
15 Department may authorize his returns to be filed on an annual
16 basis, with the return for a given year being due by January
17 20 of the following year.
18 Such quarter annual and annual returns, as to form and
19 substance, shall be subject to the same requirements as
20 monthly returns.
21 Notwithstanding any other provision in this Act
22 concerning the time within which a retailer may file his
23 return, in the case of any retailer who ceases to engage in a
24 kind of business which makes him responsible for filing
25 returns under this Act, such retailer shall file a final
26 return under this Act with the Department not more than one
27 month after discontinuing such business.
28 In addition, with respect to motor vehicles, watercraft,
29 aircraft, and trailers that are required to be registered
30 with an agency of this State, every retailer selling this
31 kind of tangible personal property shall file, with the
32 Department, upon a form to be prescribed and supplied by the
33 Department, a separate return for each such item of tangible
34 personal property which the retailer sells, except that
-23- LRB9000527KDksam02
1 where, in the same transaction, a retailer of aircraft,
2 watercraft, motor vehicles or trailers transfers more than
3 one aircraft, watercraft, motor vehicle or trailer to another
4 aircraft, watercraft, motor vehicle or trailer retailer for
5 the purpose of resale, that seller for resale may report the
6 transfer of all the aircraft, watercraft, motor vehicles or
7 trailers involved in that transaction to the Department on
8 the same uniform invoice-transaction reporting return form.
9 For purposes of this Section, "watercraft" means a Class 2,
10 Class 3, or Class 4 watercraft as defined in Section 3-2 of
11 the Boat Registration and Safety Act, a personal watercraft,
12 or any boat equipped with an inboard motor.
13 The transaction reporting return in the case of motor
14 vehicles or trailers that are required to be registered with
15 an agency of this State, shall be the same document as the
16 Uniform Invoice referred to in Section 5-402 of the Illinois
17 Vehicle Code and must show the name and address of the
18 seller; the name and address of the purchaser; the amount of
19 the selling price including the amount allowed by the
20 retailer for traded-in property, if any; the amount allowed
21 by the retailer for the traded-in tangible personal property,
22 if any, to the extent to which Section 2 of this Act allows
23 an exemption for the value of traded-in property; the balance
24 payable after deducting such trade-in allowance from the
25 total selling price; the amount of tax due from the retailer
26 with respect to such transaction; the amount of tax collected
27 from the purchaser by the retailer on such transaction (or
28 satisfactory evidence that such tax is not due in that
29 particular instance, if that is claimed to be the fact); the
30 place and date of the sale; a sufficient identification of
31 the property sold; such other information as is required in
32 Section 5-402 of the Illinois Vehicle Code, and such other
33 information as the Department may reasonably require.
34 The transaction reporting return in the case of
-24- LRB9000527KDksam02
1 watercraft and aircraft must show the name and address of the
2 seller; the name and address of the purchaser; the amount of
3 the selling price including the amount allowed by the
4 retailer for traded-in property, if any; the amount allowed
5 by the retailer for the traded-in tangible personal property,
6 if any, to the extent to which Section 2 of this Act allows
7 an exemption for the value of traded-in property; the balance
8 payable after deducting such trade-in allowance from the
9 total selling price; the amount of tax due from the retailer
10 with respect to such transaction; the amount of tax collected
11 from the purchaser by the retailer on such transaction (or
12 satisfactory evidence that such tax is not due in that
13 particular instance, if that is claimed to be the fact); the
14 place and date of the sale, a sufficient identification of
15 the property sold, and such other information as the
16 Department may reasonably require.
17 Such transaction reporting return shall be filed not
18 later than 20 days after the date of delivery of the item
19 that is being sold, but may be filed by the retailer at any
20 time sooner than that if he chooses to do so. The
21 transaction reporting return and tax remittance or proof of
22 exemption from the tax that is imposed by this Act may be
23 transmitted to the Department by way of the State agency with
24 which, or State officer with whom, the tangible personal
25 property must be titled or registered (if titling or
26 registration is required) if the Department and such agency
27 or State officer determine that this procedure will expedite
28 the processing of applications for title or registration.
29 With each such transaction reporting return, the retailer
30 shall remit the proper amount of tax due (or shall submit
31 satisfactory evidence that the sale is not taxable if that is
32 the case), to the Department or its agents, whereupon the
33 Department shall issue, in the purchaser's name, a tax
34 receipt (or a certificate of exemption if the Department is
-25- LRB9000527KDksam02
1 satisfied that the particular sale is tax exempt) which such
2 purchaser may submit to the agency with which, or State
3 officer with whom, he must title or register the tangible
4 personal property that is involved (if titling or
5 registration is required) in support of such purchaser's
6 application for an Illinois certificate or other evidence of
7 title or registration to such tangible personal property.
8 No retailer's failure or refusal to remit tax under this
9 Act precludes a user, who has paid the proper tax to the
10 retailer, from obtaining his certificate of title or other
11 evidence of title or registration (if titling or registration
12 is required) upon satisfying the Department that such user
13 has paid the proper tax (if tax is due) to the retailer. The
14 Department shall adopt appropriate rules to carry out the
15 mandate of this paragraph.
16 If the user who would otherwise pay tax to the retailer
17 wants the transaction reporting return filed and the payment
18 of tax or proof of exemption made to the Department before
19 the retailer is willing to take these actions and such user
20 has not paid the tax to the retailer, such user may certify
21 to the fact of such delay by the retailer, and may (upon the
22 Department being satisfied of the truth of such
23 certification) transmit the information required by the
24 transaction reporting return and the remittance for tax or
25 proof of exemption directly to the Department and obtain his
26 tax receipt or exemption determination, in which event the
27 transaction reporting return and tax remittance (if a tax
28 payment was required) shall be credited by the Department to
29 the proper retailer's account with the Department, but
30 without the 2.1% or 1.75% discount provided for in this
31 Section being allowed. When the user pays the tax directly
32 to the Department, he shall pay the tax in the same amount
33 and in the same form in which it would be remitted if the tax
34 had been remitted to the Department by the retailer.
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1 Where a retailer collects the tax with respect to the
2 selling price of tangible personal property which he sells
3 and the purchaser thereafter returns such tangible personal
4 property and the retailer refunds the selling price thereof
5 to the purchaser, such retailer shall also refund, to the
6 purchaser, the tax so collected from the purchaser. When
7 filing his return for the period in which he refunds such tax
8 to the purchaser, the retailer may deduct the amount of the
9 tax so refunded by him to the purchaser from any other use
10 tax which such retailer may be required to pay or remit to
11 the Department, as shown by such return, if the amount of the
12 tax to be deducted was previously remitted to the Department
13 by such retailer. If the retailer has not previously
14 remitted the amount of such tax to the Department, he is
15 entitled to no deduction under this Act upon refunding such
16 tax to the purchaser.
17 Any retailer filing a return under this Section shall
18 also include (for the purpose of paying tax thereon) the
19 total tax covered by such return upon the selling price of
20 tangible personal property purchased by him at retail from a
21 retailer, but as to which the tax imposed by this Act was not
22 collected from the retailer filing such return, and such
23 retailer shall remit the amount of such tax to the Department
24 when filing such return.
25 If experience indicates such action to be practicable,
26 the Department may prescribe and furnish a combination or
27 joint return which will enable retailers, who are required to
28 file returns hereunder and also under the Retailers'
29 Occupation Tax Act, to furnish all the return information
30 required by both Acts on the one form.
31 Where the retailer has more than one business registered
32 with the Department under separate registration under this
33 Act, such retailer may not file each return that is due as a
34 single return covering all such registered businesses, but
-27- LRB9000527KDksam02
1 shall file separate returns for each such registered
2 business.
3 Beginning January 1, 1990, each month the Department
4 shall pay into the State and Local Sales Tax Reform Fund, a
5 special fund in the State Treasury which is hereby created,
6 the net revenue realized for the preceding month from the 1%
7 tax on sales of food for human consumption which is to be
8 consumed off the premises where it is sold (other than
9 alcoholic beverages, soft drinks and food which has been
10 prepared for immediate consumption) and prescription and
11 nonprescription medicines, drugs, medical appliances and
12 insulin, urine testing materials, syringes and needles used
13 by diabetics.
14 Beginning January 1, 1990, each month the Department
15 shall pay into the County and Mass Transit District Fund 4%
16 of the net revenue realized for the preceding month from the
17 6.25% general rate on the selling price of tangible personal
18 property which is purchased outside Illinois at retail from a
19 retailer and which is titled or registered by an agency of
20 this State's government.
21 Beginning January 1, 1990, each month the Department
22 shall pay into the State and Local Sales Tax Reform Fund, a
23 special fund in the State Treasury, 20% of the net revenue
24 realized for the preceding month from the 6.25% general rate
25 on the selling price of tangible personal property, other
26 than tangible personal property which is purchased outside
27 Illinois at retail from a retailer and which is titled or
28 registered by an agency of this State's government.
29 Beginning January 1, 1990, each month the Department
30 shall pay into the Local Government Tax Fund 16% of the net
31 revenue realized for the preceding month from the 6.25%
32 general rate on the selling price of tangible personal
33 property which is purchased outside Illinois at retail from a
34 retailer and which is titled or registered by an agency of
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1 this State's government.
2 Of the remainder of the moneys received by the Department
3 pursuant to this Act, (a) 1.75% thereof shall be paid into
4 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
5 and on and after July 1, 1989, 3.8% thereof shall be paid
6 into the Build Illinois Fund; provided, however, that if in
7 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
8 as the case may be, of the moneys received by the Department
9 and required to be paid into the Build Illinois Fund pursuant
10 to Section 3 of the Retailers' Occupation Tax Act, Section 9
11 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
12 Section 9 of the Service Occupation Tax Act, such Acts being
13 hereinafter called the "Tax Acts" and such aggregate of 2.2%
14 or 3.8%, as the case may be, of moneys being hereinafter
15 called the "Tax Act Amount", and (2) the amount transferred
16 to the Build Illinois Fund from the State and Local Sales Tax
17 Reform Fund shall be less than the Annual Specified Amount
18 (as defined in Section 3 of the Retailers' Occupation Tax
19 Act), an amount equal to the difference shall be immediately
20 paid into the Build Illinois Fund from other moneys received
21 by the Department pursuant to the Tax Acts; and further
22 provided, that if on the last business day of any month the
23 sum of (1) the Tax Act Amount required to be deposited into
24 the Build Illinois Bond Account in the Build Illinois Fund
25 during such month and (2) the amount transferred during such
26 month to the Build Illinois Fund from the State and Local
27 Sales Tax Reform Fund shall have been less than 1/12 of the
28 Annual Specified Amount, an amount equal to the difference
29 shall be immediately paid into the Build Illinois Fund from
30 other moneys received by the Department pursuant to the Tax
31 Acts; and, further provided, that in no event shall the
32 payments required under the preceding proviso result in
33 aggregate payments into the Build Illinois Fund pursuant to
34 this clause (b) for any fiscal year in excess of the greater
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1 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
2 for such fiscal year; and, further provided, that the amounts
3 payable into the Build Illinois Fund under this clause (b)
4 shall be payable only until such time as the aggregate amount
5 on deposit under each trust indenture securing Bonds issued
6 and outstanding pursuant to the Build Illinois Bond Act is
7 sufficient, taking into account any future investment income,
8 to fully provide, in accordance with such indenture, for the
9 defeasance of or the payment of the principal of, premium, if
10 any, and interest on the Bonds secured by such indenture and
11 on any Bonds expected to be issued thereafter and all fees
12 and costs payable with respect thereto, all as certified by
13 the Director of the Bureau of the Budget. If on the last
14 business day of any month in which Bonds are outstanding
15 pursuant to the Build Illinois Bond Act, the aggregate of the
16 moneys deposited in the Build Illinois Bond Account in the
17 Build Illinois Fund in such month shall be less than the
18 amount required to be transferred in such month from the
19 Build Illinois Bond Account to the Build Illinois Bond
20 Retirement and Interest Fund pursuant to Section 13 of the
21 Build Illinois Bond Act, an amount equal to such deficiency
22 shall be immediately paid from other moneys received by the
23 Department pursuant to the Tax Acts to the Build Illinois
24 Fund; provided, however, that any amounts paid to the Build
25 Illinois Fund in any fiscal year pursuant to this sentence
26 shall be deemed to constitute payments pursuant to clause (b)
27 of the preceding sentence and shall reduce the amount
28 otherwise payable for such fiscal year pursuant to clause (b)
29 of the preceding sentence. The moneys received by the
30 Department pursuant to this Act and required to be deposited
31 into the Build Illinois Fund are subject to the pledge, claim
32 and charge set forth in Section 12 of the Build Illinois Bond
33 Act.
34 Subject to payment of amounts into the Build Illinois
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1 Fund as provided in the preceding paragraph or in any
2 amendment thereto hereafter enacted, the following specified
3 monthly installment of the amount requested in the
4 certificate of the Chairman of the Metropolitan Pier and
5 Exposition Authority provided under Section 8.25f of the
6 State Finance Act, but not in excess of the sums designated
7 as "Total Deposit", shall be deposited in the aggregate from
8 collections under Section 9 of the Use Tax Act, Section 9 of
9 the Service Use Tax Act, Section 9 of the Service Occupation
10 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
11 into the McCormick Place Expansion Project Fund in the
12 specified fiscal years.
13 Fiscal Year Total Deposit
14 1993 $0
15 1994 53,000,000
16 1995 58,000,000
17 1996 61,000,000
18 1997 64,000,000
19 1998 68,000,000
20 1999 71,000,000
21 2000 75,000,000
22 2001 80,000,000
23 2002 84,000,000
24 2003 89,000,000
25 2004 and 93,000,000
26 each fiscal year
27 thereafter that bonds
28 are outstanding under
29 Section 13.2 of the
30 Metropolitan Pier and
31 Exposition Authority
32 Act.
33 Beginning July 20, 1993 and in each month of each fiscal
34 year thereafter, one-eighth of the amount requested in the
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1 certificate of the Chairman of the Metropolitan Pier and
2 Exposition Authority for that fiscal year, less the amount
3 deposited into the McCormick Place Expansion Project Fund by
4 the State Treasurer in the respective month under subsection
5 (g) of Section 13 of the Metropolitan Pier and Exposition
6 Authority Act, plus cumulative deficiencies in the deposits
7 required under this Section for previous months and years,
8 shall be deposited into the McCormick Place Expansion Project
9 Fund, until the full amount requested for the fiscal year,
10 but not in excess of the amount specified above as "Total
11 Deposit", has been deposited.
12 Subject to payment of amounts into the Build Illinois
13 Fund and the McCormick Place Expansion Project Fund pursuant
14 to the preceding paragraphs or in any amendment thereto
15 hereafter enacted, each month the Department shall pay into
16 the Local Government Distributive Fund .4% of the net revenue
17 realized for the preceding month from the 5% general rate, or
18 .4% of 80% of the net revenue realized for the preceding
19 month from the 6.25% general rate, as the case may be, on the
20 selling price of tangible personal property which amount
21 shall, subject to appropriation, be distributed as provided
22 in Section 2 of the State Revenue Sharing Act. No payments or
23 distributions pursuant to this paragraph shall be made if the
24 tax imposed by this Act on photoprocessing products is
25 declared unconstitutional, or if the proceeds from such tax
26 are unavailable for distribution because of litigation.
27 Subject to payment of amounts into the Build Illinois
28 Fund, the McCormick Place Expansion Project Fund, and the
29 Local Government Distributive Fund pursuant to the preceding
30 paragraphs or in any amendments thereto hereafter enacted,
31 beginning July 1, 1993, the Department shall each month pay
32 into the Illinois Tax Increment Fund 0.27% of 80% of the net
33 revenue realized for the preceding month from the 6.25%
34 general rate on the selling price of tangible personal
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1 property.
2 Of the remainder of the moneys received by the Department
3 pursuant to this Act, 75% thereof shall be paid into the
4 State Treasury and 25% shall be reserved in a special account
5 and used only for the transfer to the Common School Fund as
6 part of the monthly transfer from the General Revenue Fund in
7 accordance with Section 8a of the State Finance Act.
8 As soon as possible after the first day of each month,
9 upon certification of the Department of Revenue, the
10 Comptroller shall order transferred and the Treasurer shall
11 transfer from the General Revenue Fund to the Motor Fuel Tax
12 Fund an amount equal to 1.7% of 80% of the net revenue
13 realized under this Act for the second preceding month;
14 except that this transfer shall not be made for the months
15 February through June of 1992.
16 Net revenue realized for a month shall be the revenue
17 collected by the State pursuant to this Act, less the amount
18 paid out during that month as refunds to taxpayers for
19 overpayment of liability.
20 For greater simplicity of administration, manufacturers,
21 importers and wholesalers whose products are sold at retail
22 in Illinois by numerous retailers, and who wish to do so, may
23 assume the responsibility for accounting and paying to the
24 Department all tax accruing under this Act with respect to
25 such sales, if the retailers who are affected do not make
26 written objection to the Department to this arrangement.
27 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
28 (Text of Section after amendment by P.A. 90-491)
29 Sec. 9. Except as to motor vehicles, watercraft,
30 aircraft, and trailers that are required to be registered
31 with an agency of this State, each retailer required or
32 authorized to collect the tax imposed by this Act shall pay
33 to the Department the amount of such tax (except as otherwise
34 provided) at the time when he is required to file his return
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1 for the period during which such tax was collected, less a
2 discount of 2.1% prior to January 1, 1990, and 1.75% on and
3 after January 1, 1990, or $5 per calendar year, whichever is
4 greater, which is allowed to reimburse the retailer for
5 expenses incurred in collecting the tax, keeping records,
6 preparing and filing returns, remitting the tax and supplying
7 data to the Department on request. In the case of retailers
8 who report and pay the tax on a transaction by transaction
9 basis, as provided in this Section, such discount shall be
10 taken with each such tax remittance instead of when such
11 retailer files his periodic return. A retailer need not
12 remit that part of any tax collected by him to the extent
13 that he is required to remit and does remit the tax imposed
14 by the Retailers' Occupation Tax Act, with respect to the
15 sale of the same property.
16 Where such tangible personal property is sold under a
17 conditional sales contract, or under any other form of sale
18 wherein the payment of the principal sum, or a part thereof,
19 is extended beyond the close of the period for which the
20 return is filed, the retailer, in collecting the tax (except
21 as to motor vehicles, watercraft, aircraft, and trailers that
22 are required to be registered with an agency of this State),
23 may collect for each tax return period, only the tax
24 applicable to that part of the selling price actually
25 received during such tax return period.
26 Except as provided in this Section, on or before the
27 twentieth day of each calendar month, such retailer shall
28 file a return for the preceding calendar month. Such return
29 shall be filed on forms prescribed by the Department and
30 shall furnish such information as the Department may
31 reasonably require.
32 The Department may require returns to be filed on a
33 quarterly basis. If so required, a return for each calendar
34 quarter shall be filed on or before the twentieth day of the
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1 calendar month following the end of such calendar quarter.
2 The taxpayer shall also file a return with the Department for
3 each of the first two months of each calendar quarter, on or
4 before the twentieth day of the following calendar month,
5 stating:
6 1. The name of the seller;
7 2. The address of the principal place of business
8 from which he engages in the business of selling tangible
9 personal property at retail in this State;
10 3. The total amount of taxable receipts received by
11 him during the preceding calendar month from sales of
12 tangible personal property by him during such preceding
13 calendar month, including receipts from charge and time
14 sales, but less all deductions allowed by law;
15 4. The amount of credit provided in Section 2d of
16 this Act;
17 5. The amount of tax due;
18 5-5. The signature of the taxpayer; and
19 6. Such other reasonable information as the
20 Department may require.
21 If a taxpayer fails to sign a return within 30 days after
22 the proper notice and demand for signature by the Department,
23 the return shall be considered valid and any amount shown to
24 be due on the return shall be deemed assessed.
25 Beginning October 1, 1993, a taxpayer who has an average
26 monthly tax liability of $150,000 or more shall make all
27 payments required by rules of the Department by electronic
28 funds transfer. Beginning October 1, 1994, a taxpayer who has
29 an average monthly tax liability of $100,000 or more shall
30 make all payments required by rules of the Department by
31 electronic funds transfer. Beginning October 1, 1995, a
32 taxpayer who has an average monthly tax liability of $50,000
33 or more shall make all payments required by rules of the
34 Department by electronic funds transfer. The term "average
-35- LRB9000527KDksam02
1 monthly tax liability" means the sum of the taxpayer's
2 liabilities under this Act, and under all other State and
3 local occupation and use tax laws administered by the
4 Department, for the immediately preceding calendar year
5 divided by 12.
6 Before August 1 of each year beginning in 1993, the
7 Department shall notify all taxpayers required to make
8 payments by electronic funds transfer. All taxpayers required
9 to make payments by electronic funds transfer shall make
10 those payments for a minimum of one year beginning on October
11 1.
12 Any taxpayer not required to make payments by electronic
13 funds transfer may make payments by electronic funds transfer
14 with the permission of the Department.
15 All taxpayers required to make payment by electronic
16 funds transfer and any taxpayers authorized to voluntarily
17 make payments by electronic funds transfer shall make those
18 payments in the manner authorized by the Department.
19 The Department shall adopt such rules as are necessary to
20 effectuate a program of electronic funds transfer and the
21 requirements of this Section.
22 If the taxpayer's average monthly tax liability to the
23 Department under this Act, the Retailers' Occupation Tax Act,
24 the Service Occupation Tax Act, the Service Use Tax Act was
25 $10,000 or more during the preceding 4 complete calendar
26 quarters, he shall file a return with the Department each
27 month by the 20th day of the month next following the month
28 during which such tax liability is incurred and shall make
29 payments to the Department on or before the 7th, 15th, 22nd
30 and last day of the month during which such liability is
31 incurred. If the month during which such tax liability is
32 incurred began prior to January 1, 1985, each payment shall
33 be in an amount equal to 1/4 of the taxpayer's actual
34 liability for the month or an amount set by the Department
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1 not to exceed 1/4 of the average monthly liability of the
2 taxpayer to the Department for the preceding 4 complete
3 calendar quarters (excluding the month of highest liability
4 and the month of lowest liability in such 4 quarter period).
5 If the month during which such tax liability is incurred
6 begins on or after January 1, 1985, and prior to January 1,
7 1987, each payment shall be in an amount equal to 22.5% of
8 the taxpayer's actual liability for the month or 27.5% of the
9 taxpayer's liability for the same calendar month of the
10 preceding year. If the month during which such tax liability
11 is incurred begins on or after January 1, 1987, and prior to
12 January 1, 1988, each payment shall be in an amount equal to
13 22.5% of the taxpayer's actual liability for the month or
14 26.25% of the taxpayer's liability for the same calendar
15 month of the preceding year. If the month during which such
16 tax liability is incurred begins on or after January 1, 1988,
17 and prior to January 1, 1989, or begins on or after January
18 1, 1996, each payment shall be in an amount equal to 22.5% of
19 the taxpayer's actual liability for the month or 25% of the
20 taxpayer's liability for the same calendar month of the
21 preceding year. If the month during which such tax liability
22 is incurred begins on or after January 1, 1989, and prior to
23 January 1, 1996, each payment shall be in an amount equal to
24 22.5% of the taxpayer's actual liability for the month or 25%
25 of the taxpayer's liability for the same calendar month of
26 the preceding year or 100% of the taxpayer's actual liability
27 for the quarter monthly reporting period. The amount of such
28 quarter monthly payments shall be credited against the final
29 tax liability of the taxpayer's return for that month. Once
30 applicable, the requirement of the making of quarter monthly
31 payments to the Department shall continue until such
32 taxpayer's average monthly liability to the Department during
33 the preceding 4 complete calendar quarters (excluding the
34 month of highest liability and the month of lowest liability)
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1 is less than $9,000, or until such taxpayer's average monthly
2 liability to the Department as computed for each calendar
3 quarter of the 4 preceding complete calendar quarter period
4 is less than $10,000. However, if a taxpayer can show the
5 Department that a substantial change in the taxpayer's
6 business has occurred which causes the taxpayer to anticipate
7 that his average monthly tax liability for the reasonably
8 foreseeable future will fall below $10,000, then such
9 taxpayer may petition the Department for change in such
10 taxpayer's reporting status. The Department shall change
11 such taxpayer's reporting status unless it finds that such
12 change is seasonal in nature and not likely to be long term.
13 If any such quarter monthly payment is not paid at the time
14 or in the amount required by this Section, then the taxpayer
15 shall be liable for penalties and interest on the difference
16 between the minimum amount due and the amount of such quarter
17 monthly payment actually and timely paid, except insofar as
18 the taxpayer has previously made payments for that month to
19 the Department in excess of the minimum payments previously
20 due as provided in this Section. The Department shall make
21 reasonable rules and regulations to govern the quarter
22 monthly payment amount and quarter monthly payment dates for
23 taxpayers who file on other than a calendar monthly basis.
24 If any such payment provided for in this Section exceeds
25 the taxpayer's liabilities under this Act, the Retailers'
26 Occupation Tax Act, the Service Occupation Tax Act and the
27 Service Use Tax Act, as shown by an original monthly return,
28 the Department shall issue to the taxpayer a credit
29 memorandum no later than 30 days after the date of payment,
30 which memorandum may be submitted by the taxpayer to the
31 Department in payment of tax liability subsequently to be
32 remitted by the taxpayer to the Department or be assigned by
33 the taxpayer to a similar taxpayer under this Act, the
34 Retailers' Occupation Tax Act, the Service Occupation Tax Act
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1 or the Service Use Tax Act, in accordance with reasonable
2 rules and regulations to be prescribed by the Department,
3 except that if such excess payment is shown on an original
4 monthly return and is made after December 31, 1986, no credit
5 memorandum shall be issued, unless requested by the taxpayer.
6 If no such request is made, the taxpayer may credit such
7 excess payment against tax liability subsequently to be
8 remitted by the taxpayer to the Department under this Act,
9 the Retailers' Occupation Tax Act, the Service Occupation Tax
10 Act or the Service Use Tax Act, in accordance with reasonable
11 rules and regulations prescribed by the Department. If the
12 Department subsequently determines that all or any part of
13 the credit taken was not actually due to the taxpayer, the
14 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
15 by 2.1% or 1.75% of the difference between the credit taken
16 and that actually due, and the taxpayer shall be liable for
17 penalties and interest on such difference.
18 If the retailer is otherwise required to file a monthly
19 return and if the retailer's average monthly tax liability to
20 the Department does not exceed $200, the Department may
21 authorize his returns to be filed on a quarter annual basis,
22 with the return for January, February, and March of a given
23 year being due by April 20 of such year; with the return for
24 April, May and June of a given year being due by July 20 of
25 such year; with the return for July, August and September of
26 a given year being due by October 20 of such year, and with
27 the return for October, November and December of a given year
28 being due by January 20 of the following year.
29 If the retailer is otherwise required to file a monthly
30 or quarterly return and if the retailer's average monthly tax
31 liability to the Department does not exceed $50, the
32 Department may authorize his returns to be filed on an annual
33 basis, with the return for a given year being due by January
34 20 of the following year.
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1 Such quarter annual and annual returns, as to form and
2 substance, shall be subject to the same requirements as
3 monthly returns.
4 Notwithstanding any other provision in this Act
5 concerning the time within which a retailer may file his
6 return, in the case of any retailer who ceases to engage in a
7 kind of business which makes him responsible for filing
8 returns under this Act, such retailer shall file a final
9 return under this Act with the Department not more than one
10 month after discontinuing such business.
11 In addition, with respect to motor vehicles, watercraft,
12 aircraft, and trailers that are required to be registered
13 with an agency of this State, every retailer selling this
14 kind of tangible personal property shall file, with the
15 Department, upon a form to be prescribed and supplied by the
16 Department, a separate return for each such item of tangible
17 personal property which the retailer sells, except that
18 where, in the same transaction, a retailer of aircraft,
19 watercraft, motor vehicles or trailers transfers more than
20 one aircraft, watercraft, motor vehicle or trailer to another
21 aircraft, watercraft, motor vehicle or trailer retailer for
22 the purpose of resale, that seller for resale may report the
23 transfer of all the aircraft, watercraft, motor vehicles or
24 trailers involved in that transaction to the Department on
25 the same uniform invoice-transaction reporting return form.
26 For purposes of this Section, "watercraft" means a Class 2,
27 Class 3, or Class 4 watercraft as defined in Section 3-2 of
28 the Boat Registration and Safety Act, a personal watercraft,
29 or any boat equipped with an inboard motor.
30 The transaction reporting return in the case of motor
31 vehicles or trailers that are required to be registered with
32 an agency of this State, shall be the same document as the
33 Uniform Invoice referred to in Section 5-402 of the Illinois
34 Vehicle Code and must show the name and address of the
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1 seller; the name and address of the purchaser; the amount of
2 the selling price including the amount allowed by the
3 retailer for traded-in property, if any; the amount allowed
4 by the retailer for the traded-in tangible personal property,
5 if any, to the extent to which Section 2 of this Act allows
6 an exemption for the value of traded-in property; the balance
7 payable after deducting such trade-in allowance from the
8 total selling price; the amount of tax due from the retailer
9 with respect to such transaction; the amount of tax collected
10 from the purchaser by the retailer on such transaction (or
11 satisfactory evidence that such tax is not due in that
12 particular instance, if that is claimed to be the fact); the
13 place and date of the sale; a sufficient identification of
14 the property sold; such other information as is required in
15 Section 5-402 of the Illinois Vehicle Code, and such other
16 information as the Department may reasonably require.
17 The transaction reporting return in the case of
18 watercraft and aircraft must show the name and address of the
19 seller; the name and address of the purchaser; the amount of
20 the selling price including the amount allowed by the
21 retailer for traded-in property, if any; the amount allowed
22 by the retailer for the traded-in tangible personal property,
23 if any, to the extent to which Section 2 of this Act allows
24 an exemption for the value of traded-in property; the balance
25 payable after deducting such trade-in allowance from the
26 total selling price; the amount of tax due from the retailer
27 with respect to such transaction; the amount of tax collected
28 from the purchaser by the retailer on such transaction (or
29 satisfactory evidence that such tax is not due in that
30 particular instance, if that is claimed to be the fact); the
31 place and date of the sale, a sufficient identification of
32 the property sold, and such other information as the
33 Department may reasonably require.
34 Such transaction reporting return shall be filed not
-41- LRB9000527KDksam02
1 later than 20 days after the date of delivery of the item
2 that is being sold, but may be filed by the retailer at any
3 time sooner than that if he chooses to do so. The
4 transaction reporting return and tax remittance or proof of
5 exemption from the tax that is imposed by this Act may be
6 transmitted to the Department by way of the State agency with
7 which, or State officer with whom, the tangible personal
8 property must be titled or registered (if titling or
9 registration is required) if the Department and such agency
10 or State officer determine that this procedure will expedite
11 the processing of applications for title or registration.
12 With each such transaction reporting return, the retailer
13 shall remit the proper amount of tax due (or shall submit
14 satisfactory evidence that the sale is not taxable if that is
15 the case), to the Department or its agents, whereupon the
16 Department shall issue, in the purchaser's name, a tax
17 receipt (or a certificate of exemption if the Department is
18 satisfied that the particular sale is tax exempt) which such
19 purchaser may submit to the agency with which, or State
20 officer with whom, he must title or register the tangible
21 personal property that is involved (if titling or
22 registration is required) in support of such purchaser's
23 application for an Illinois certificate or other evidence of
24 title or registration to such tangible personal property.
25 No retailer's failure or refusal to remit tax under this
26 Act precludes a user, who has paid the proper tax to the
27 retailer, from obtaining his certificate of title or other
28 evidence of title or registration (if titling or registration
29 is required) upon satisfying the Department that such user
30 has paid the proper tax (if tax is due) to the retailer. The
31 Department shall adopt appropriate rules to carry out the
32 mandate of this paragraph.
33 If the user who would otherwise pay tax to the retailer
34 wants the transaction reporting return filed and the payment
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1 of tax or proof of exemption made to the Department before
2 the retailer is willing to take these actions and such user
3 has not paid the tax to the retailer, such user may certify
4 to the fact of such delay by the retailer, and may (upon the
5 Department being satisfied of the truth of such
6 certification) transmit the information required by the
7 transaction reporting return and the remittance for tax or
8 proof of exemption directly to the Department and obtain his
9 tax receipt or exemption determination, in which event the
10 transaction reporting return and tax remittance (if a tax
11 payment was required) shall be credited by the Department to
12 the proper retailer's account with the Department, but
13 without the 2.1% or 1.75% discount provided for in this
14 Section being allowed. When the user pays the tax directly
15 to the Department, he shall pay the tax in the same amount
16 and in the same form in which it would be remitted if the tax
17 had been remitted to the Department by the retailer.
18 Where a retailer collects the tax with respect to the
19 selling price of tangible personal property which he sells
20 and the purchaser thereafter returns such tangible personal
21 property and the retailer refunds the selling price thereof
22 to the purchaser, such retailer shall also refund, to the
23 purchaser, the tax so collected from the purchaser. When
24 filing his return for the period in which he refunds such tax
25 to the purchaser, the retailer may deduct the amount of the
26 tax so refunded by him to the purchaser from any other use
27 tax which such retailer may be required to pay or remit to
28 the Department, as shown by such return, if the amount of the
29 tax to be deducted was previously remitted to the Department
30 by such retailer. If the retailer has not previously
31 remitted the amount of such tax to the Department, he is
32 entitled to no deduction under this Act upon refunding such
33 tax to the purchaser.
34 Any retailer filing a return under this Section shall
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1 also include (for the purpose of paying tax thereon) the
2 total tax covered by such return upon the selling price of
3 tangible personal property purchased by him at retail from a
4 retailer, but as to which the tax imposed by this Act was not
5 collected from the retailer filing such return, and such
6 retailer shall remit the amount of such tax to the Department
7 when filing such return.
8 If experience indicates such action to be practicable,
9 the Department may prescribe and furnish a combination or
10 joint return which will enable retailers, who are required to
11 file returns hereunder and also under the Retailers'
12 Occupation Tax Act, to furnish all the return information
13 required by both Acts on the one form.
14 Where the retailer has more than one business registered
15 with the Department under separate registration under this
16 Act, such retailer may not file each return that is due as a
17 single return covering all such registered businesses, but
18 shall file separate returns for each such registered
19 business.
20 Beginning January 1, 1990, each month the Department
21 shall pay into the State and Local Sales Tax Reform Fund, a
22 special fund in the State Treasury which is hereby created,
23 the net revenue realized for the preceding month from the 1%
24 tax on sales of food for human consumption which is to be
25 consumed off the premises where it is sold (other than
26 alcoholic beverages, soft drinks and food which has been
27 prepared for immediate consumption) and prescription and
28 nonprescription medicines, drugs, medical appliances and
29 insulin, urine testing materials, syringes and needles used
30 by diabetics.
31 Beginning January 1, 1990, each month the Department
32 shall pay into the County and Mass Transit District Fund 4%
33 of the net revenue realized for the preceding month from the
34 6.25% general rate on the selling price of tangible personal
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1 property which is purchased outside Illinois at retail from a
2 retailer and which is titled or registered by an agency of
3 this State's government.
4 Beginning January 1, 1990, each month the Department
5 shall pay into the State and Local Sales Tax Reform Fund, a
6 special fund in the State Treasury, 20% of the net revenue
7 realized for the preceding month from the 6.25% general rate
8 on the selling price of tangible personal property, other
9 than tangible personal property which is purchased outside
10 Illinois at retail from a retailer and which is titled or
11 registered by an agency of this State's government.
12 Beginning January 1, 1990, each month the Department
13 shall pay into the Local Government Tax Fund 16% of the net
14 revenue realized for the preceding month from the 6.25%
15 general rate on the selling price of tangible personal
16 property which is purchased outside Illinois at retail from a
17 retailer and which is titled or registered by an agency of
18 this State's government.
19 Of the remainder of the moneys received by the Department
20 pursuant to this Act and the moneys received by the
21 Department from the 80% of the 8.25% rate of use tax imposed
22 in Section 20 of the Qualified Technological Equipment
23 Leasing Occupation and Use Tax Act, (a) 1.75% thereof shall
24 be paid into the Build Illinois Fund and (b) prior to July 1,
25 1989, 2.2% and on and after July 1, 1989, 3.8% thereof shall
26 be paid into the Build Illinois Fund; provided, however, that
27 if in any fiscal year the sum of (1) the aggregate of 2.2% or
28 3.8%, as the case may be, of the moneys received by the
29 Department and required to be paid into the Build Illinois
30 Fund pursuant to Section 3 of the Retailers' Occupation Tax
31 Act, Section 9 of the Use Tax Act, Section 9 of the Service
32 Use Tax Act, and Section 9 of the Service Occupation Tax Act,
33 such Acts being hereinafter called the "Tax Acts" and such
34 aggregate of 2.2% or 3.8%, as the case may be, of moneys
-45- LRB9000527KDksam02
1 being hereinafter called the "Tax Act Amount", and (2) the
2 amount transferred to the Build Illinois Fund from the State
3 and Local Sales Tax Reform Fund shall be less than the Annual
4 Specified Amount (as defined in Section 3 of the Retailers'
5 Occupation Tax Act), an amount equal to the difference shall
6 be immediately paid into the Build Illinois Fund from other
7 moneys received by the Department pursuant to the Tax Acts;
8 and further provided, that if on the last business day of any
9 month the sum of (1) the Tax Act Amount required to be
10 deposited into the Build Illinois Bond Account in the Build
11 Illinois Fund during such month and (2) the amount
12 transferred during such month to the Build Illinois Fund from
13 the State and Local Sales Tax Reform Fund shall have been
14 less than 1/12 of the Annual Specified Amount, an amount
15 equal to the difference shall be immediately paid into the
16 Build Illinois Fund from other moneys received by the
17 Department pursuant to the Tax Acts; and, further provided,
18 that in no event shall the payments required under the
19 preceding proviso result in aggregate payments into the Build
20 Illinois Fund pursuant to this clause (b) for any fiscal year
21 in excess of the greater of (i) the Tax Act Amount or (ii)
22 the Annual Specified Amount for such fiscal year; and,
23 further provided, that the amounts payable into the Build
24 Illinois Fund under this clause (b) shall be payable only
25 until such time as the aggregate amount on deposit under each
26 trust indenture securing Bonds issued and outstanding
27 pursuant to the Build Illinois Bond Act is sufficient, taking
28 into account any future investment income, to fully provide,
29 in accordance with such indenture, for the defeasance of or
30 the payment of the principal of, premium, if any, and
31 interest on the Bonds secured by such indenture and on any
32 Bonds expected to be issued thereafter and all fees and costs
33 payable with respect thereto, all as certified by the
34 Director of the Bureau of the Budget. If on the last
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1 business day of any month in which Bonds are outstanding
2 pursuant to the Build Illinois Bond Act, the aggregate of the
3 moneys deposited in the Build Illinois Bond Account in the
4 Build Illinois Fund in such month shall be less than the
5 amount required to be transferred in such month from the
6 Build Illinois Bond Account to the Build Illinois Bond
7 Retirement and Interest Fund pursuant to Section 13 of the
8 Build Illinois Bond Act, an amount equal to such deficiency
9 shall be immediately paid from other moneys received by the
10 Department pursuant to the Tax Acts to the Build Illinois
11 Fund; provided, however, that any amounts paid to the Build
12 Illinois Fund in any fiscal year pursuant to this sentence
13 shall be deemed to constitute payments pursuant to clause (b)
14 of the preceding sentence and shall reduce the amount
15 otherwise payable for such fiscal year pursuant to clause (b)
16 of the preceding sentence. The moneys received by the
17 Department pursuant to this Act and required to be deposited
18 into the Build Illinois Fund are subject to the pledge, claim
19 and charge set forth in Section 12 of the Build Illinois Bond
20 Act.
21 Subject to payment of amounts into the Build Illinois
22 Fund as provided in the preceding paragraph or in any
23 amendment thereto hereafter enacted, the following specified
24 monthly installment of the amount requested in the
25 certificate of the Chairman of the Metropolitan Pier and
26 Exposition Authority provided under Section 8.25f of the
27 State Finance Act, but not in excess of the sums designated
28 as "Total Deposit", shall be deposited in the aggregate from
29 collections under Section 9 of the Use Tax Act, Section 9 of
30 the Service Use Tax Act, Section 9 of the Service Occupation
31 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
32 into the McCormick Place Expansion Project Fund in the
33 specified fiscal years.
34 Fiscal Year Total Deposit
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1 1993 $0
2 1994 53,000,000
3 1995 58,000,000
4 1996 61,000,000
5 1997 64,000,000
6 1998 68,000,000
7 1999 71,000,000
8 2000 75,000,000
9 2001 80,000,000
10 2002 84,000,000
11 2003 89,000,000
12 2004 and 93,000,000
13 each fiscal year
14 thereafter that bonds
15 are outstanding under
16 Section 13.2 of the
17 Metropolitan Pier and
18 Exposition Authority
19 Act.
20 Beginning July 20, 1993 and in each month of each fiscal
21 year thereafter, one-eighth of the amount requested in the
22 certificate of the Chairman of the Metropolitan Pier and
23 Exposition Authority for that fiscal year, less the amount
24 deposited into the McCormick Place Expansion Project Fund by
25 the State Treasurer in the respective month under subsection
26 (g) of Section 13 of the Metropolitan Pier and Exposition
27 Authority Act, plus cumulative deficiencies in the deposits
28 required under this Section for previous months and years,
29 shall be deposited into the McCormick Place Expansion Project
30 Fund, until the full amount requested for the fiscal year,
31 but not in excess of the amount specified above as "Total
32 Deposit", has been deposited.
33 Subject to payment of amounts into the Build Illinois
34 Fund and the McCormick Place Expansion Project Fund pursuant
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1 to the preceding paragraphs or in any amendment thereto
2 hereafter enacted, each month the Department shall pay into
3 the Local Government Distributive Fund .4% of the net revenue
4 realized for the preceding month from the 5% general rate, or
5 .4% of 80% of the net revenue realized for the preceding
6 month from the 6.25% general rate, as the case may be, on the
7 selling price of tangible personal property which amount
8 shall, subject to appropriation, be distributed as provided
9 in Section 2 of the State Revenue Sharing Act. No payments or
10 distributions pursuant to this paragraph shall be made if the
11 tax imposed by this Act on photoprocessing products is
12 declared unconstitutional, or if the proceeds from such tax
13 are unavailable for distribution because of litigation.
14 Subject to payment of amounts into the Build Illinois
15 Fund, the McCormick Place Expansion Project Fund, and the
16 Local Government Distributive Fund pursuant to the preceding
17 paragraphs or in any amendments thereto hereafter enacted,
18 beginning July 1, 1993, the Department shall each month pay
19 into the Illinois Tax Increment Fund 0.27% of 80% of the net
20 revenue realized for the preceding month from the 6.25%
21 general rate on the selling price of tangible personal
22 property.
23 Of the remainder of the moneys received by the Department
24 pursuant to this Act, 75% thereof shall be paid into the
25 State Treasury and 25% shall be reserved in a special account
26 and used only for the transfer to the Common School Fund as
27 part of the monthly transfer from the General Revenue Fund in
28 accordance with Section 8a of the State Finance Act.
29 As soon as possible after the first day of each month,
30 upon certification of the Department of Revenue, the
31 Comptroller shall order transferred and the Treasurer shall
32 transfer from the General Revenue Fund to the Motor Fuel Tax
33 Fund an amount equal to 1.7% of 80% of the net revenue
34 realized under this Act for the second preceding month;
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1 except that this transfer shall not be made for the months
2 February through June of 1992.
3 Net revenue realized for a month shall be the revenue
4 collected by the State pursuant to this Act, less the amount
5 paid out during that month as refunds to taxpayers for
6 overpayment of liability.
7 For greater simplicity of administration, manufacturers,
8 importers and wholesalers whose products are sold at retail
9 in Illinois by numerous retailers, and who wish to do so, may
10 assume the responsibility for accounting and paying to the
11 Department all tax accruing under this Act with respect to
12 such sales, if the retailers who are affected do not make
13 written objection to the Department to this arrangement.
14 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
15 90-491, eff. 1-1-99.)
16 (35 ILCS 105/9.5 new)
17 Sec. 9.5. Refund; leaseback transaction. A purchaser of
18 qualified technological equipment, as defined in Section 5 of
19 the Qualified Technological Equipment Renting Occupation and
20 Use Tax Act, may obtain a refund of all tax paid to a seller
21 under this Act or any other tax administered by the
22 Department if the purchaser sells the property to a rentor
23 under a bona fide sale and leaseback transaction (to such
24 purchaser) within 90 days of the first functional use of the
25 property. The purchaser shall request the refund from the
26 seller to whom he or she has paid the tax in the same manner
27 and subject to the same requirements as other refunds
28 provided in Section 9 of this Act. For purposes of this
29 Section, the first functional use of property shall be the
30 use for which the property is intended, which shall, in the
31 absence of other evidence, be presumed to be the date of
32 deliver of the property.
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1 Section 55. The Service Use Tax Act is amended by
2 changing Section 3-5 as follows:
3 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
4 Sec. 3-5. Exemptions. Use of the following tangible
5 personal property is exempt from the tax imposed by this Act:
6 (1) Personal property purchased from a corporation,
7 society, association, foundation, institution, or
8 organization, other than a limited liability company, that is
9 organized and operated as a not-for-profit service enterprise
10 for the benefit of persons 65 years of age or older if the
11 personal property was not purchased by the enterprise for the
12 purpose of resale by the enterprise.
13 (2) Personal property purchased by a non-profit Illinois
14 county fair association for use in conducting, operating, or
15 promoting the county fair.
16 (3) Personal property purchased by a not-for-profit
17 music or dramatic arts organization that establishes, by
18 proof required by the Department by rule, that it has
19 received an exemption under Section 501(c)(3) of the Internal
20 Revenue Code and that is organized and operated for the
21 presentation of live public performances of musical or
22 theatrical works on a regular basis.
23 (4) Legal tender, currency, medallions, or gold or
24 silver coinage issued by the State of Illinois, the
25 government of the United States of America, or the government
26 of any foreign country, and bullion.
27 (5) Graphic arts machinery and equipment, including
28 repair and replacement parts, both new and used, and
29 including that manufactured on special order or purchased for
30 lease, certified by the purchaser to be used primarily for
31 graphic arts production.
32 (6) Personal property purchased from a teacher-sponsored
33 student organization affiliated with an elementary or
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1 secondary school located in Illinois.
2 (7) Farm machinery and equipment, both new and used,
3 including that manufactured on special order, certified by
4 the purchaser to be used primarily for production agriculture
5 or State or federal agricultural programs, including
6 individual replacement parts for the machinery and equipment,
7 and including machinery and equipment purchased for lease,
8 but excluding motor vehicles required to be registered under
9 the Illinois Vehicle Code. Horticultural polyhouses or hoop
10 houses used for propagating, growing, or overwintering plants
11 shall be considered farm machinery and equipment under this
12 paragraph.
13 (8) Fuel and petroleum products sold to or used by an
14 air common carrier, certified by the carrier to be used for
15 consumption, shipment, or storage in the conduct of its
16 business as an air common carrier, for a flight destined for
17 or returning from a location or locations outside the United
18 States without regard to previous or subsequent domestic
19 stopovers.
20 (9) Proceeds of mandatory service charges separately
21 stated on customers' bills for the purchase and consumption
22 of food and beverages acquired as an incident to the purchase
23 of a service from a serviceman, to the extent that the
24 proceeds of the service charge are in fact turned over as
25 tips or as a substitute for tips to the employees who
26 participate directly in preparing, serving, hosting or
27 cleaning up the food or beverage function with respect to
28 which the service charge is imposed.
29 (10) Oil field exploration, drilling, and production
30 equipment, including (i) rigs and parts of rigs, rotary rigs,
31 cable tool rigs, and workover rigs, (ii) pipe and tubular
32 goods, including casing and drill strings, (iii) pumps and
33 pump-jack units, (iv) storage tanks and flow lines, (v) any
34 individual replacement part for oil field exploration,
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1 drilling, and production equipment, and (vi) machinery and
2 equipment purchased for lease; but excluding motor vehicles
3 required to be registered under the Illinois Vehicle Code.
4 (11) Proceeds from the sale of photoprocessing machinery
5 and equipment, including repair and replacement parts, both
6 new and used, including that manufactured on special order,
7 certified by the purchaser to be used primarily for
8 photoprocessing, and including photoprocessing machinery and
9 equipment purchased for lease.
10 (12) Coal exploration, mining, offhighway hauling,
11 processing, maintenance, and reclamation equipment, including
12 replacement parts and equipment, and including equipment
13 purchased for lease, but excluding motor vehicles required to
14 be registered under the Illinois Vehicle Code.
15 (13) Semen used for artificial insemination of livestock
16 for direct agricultural production.
17 (14) Horses, or interests in horses, registered with and
18 meeting the requirements of any of the Arabian Horse Club
19 Registry of America, Appaloosa Horse Club, American Quarter
20 Horse Association, United States Trotting Association, or
21 Jockey Club, as appropriate, used for purposes of breeding or
22 racing for prizes.
23 (15) Computers and communications equipment utilized for
24 any hospital purpose and equipment used in the diagnosis,
25 analysis, or treatment of hospital patients purchased by a
26 lessor who leases the equipment, under a lease of one year or
27 longer executed or in effect at the time the lessor would
28 otherwise be subject to the tax imposed by this Act, to a
29 hospital that has been issued an active tax exemption
30 identification number by the Department under Section 1g of
31 the Retailers' Occupation Tax Act. If the equipment is leased
32 in a manner that does not qualify for this exemption or is
33 used in any other non-exempt manner, the lessor shall be
34 liable for the tax imposed under this Act or the Use Tax Act,
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1 as the case may be, based on the fair market value of the
2 property at the time the non-qualifying use occurs. No
3 lessor shall collect or attempt to collect an amount (however
4 designated) that purports to reimburse that lessor for the
5 tax imposed by this Act or the Use Tax Act, as the case may
6 be, if the tax has not been paid by the lessor. If a lessor
7 improperly collects any such amount from the lessee, the
8 lessee shall have a legal right to claim a refund of that
9 amount from the lessor. If, however, that amount is not
10 refunded to the lessee for any reason, the lessor is liable
11 to pay that amount to the Department. This paragraph is
12 exempt from the provisions of Section 3-75.
13 (16) Personal property purchased by a lessor who leases
14 the property, under a lease of one year or longer executed or
15 in effect at the time the lessor would otherwise be subject
16 to the tax imposed by this Act, to a governmental body that
17 has been issued an active tax exemption identification number
18 by the Department under Section 1g of the Retailers'
19 Occupation Tax Act. If the property is leased in a manner
20 that does not qualify for this exemption or is used in any
21 other non-exempt manner, the lessor shall be liable for the
22 tax imposed under this Act or the Use Tax Act, as the case
23 may be, based on the fair market value of the property at the
24 time the non-qualifying use occurs. No lessor shall collect
25 or attempt to collect an amount (however designated) that
26 purports to reimburse that lessor for the tax imposed by this
27 Act or the Use Tax Act, as the case may be, if the tax has
28 not been paid by the lessor. If a lessor improperly collects
29 any such amount from the lessee, the lessee shall have a
30 legal right to claim a refund of that amount from the lessor.
31 If, however, that amount is not refunded to the lessee for
32 any reason, the lessor is liable to pay that amount to the
33 Department. This paragraph is exempt from the provisions of
34 Section 3-75.
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1 (17) Beginning with taxable years ending on or after
2 December 31, 1995 and ending with taxable years ending on or
3 before December 31, 2004, personal property that is donated
4 for disaster relief to be used in a State or federally
5 declared disaster area in Illinois or bordering Illinois by a
6 manufacturer or retailer that is registered in this State to
7 a corporation, society, association, foundation, or
8 institution that has been issued a sales tax exemption
9 identification number by the Department that assists victims
10 of the disaster who reside within the declared disaster area.
11 (18) Beginning with taxable years ending on or after
12 December 31, 1995 and ending with taxable years ending on or
13 before December 31, 2004, personal property that is used in
14 the performance of infrastructure repairs in this State,
15 including but not limited to municipal roads and streets,
16 access roads, bridges, sidewalks, waste disposal systems,
17 water and sewer line extensions, water distribution and
18 purification facilities, storm water drainage and retention
19 facilities, and sewage treatment facilities, resulting from a
20 State or federally declared disaster in Illinois or bordering
21 Illinois when such repairs are initiated on facilities
22 located in the declared disaster area within 6 months after
23 the disaster.
24 (19) Beginning January 1, 1999, qualified technological
25 equipment purchased for lease by lessors under leases subject
26 to the Qualified Technological Equipment Leasing occupation
27 and Use Tax Act. However, this exemption will last only as
28 long as the property continues to be leased by the lessor.
29 When the property is no longer used for lease and the
30 property reverts to the lessor, the property is subject to
31 the tax imposed by this Act upon the fair market value of the
32 property on the date of the reversion. The property will not
33 be considered to revert to the lessor as long as the lessor
34 holds the property in his or her lease inventory and does not
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1 otherwise use the property, except for demonstration
2 purposes. In addition, property held in the lessor's lease
3 inventory that is subsequently leased for a period of less
4 than one year will not be considered to revert to the lessor
5 if the property is returned to lease inventory at the
6 termination of the lease. This paragraph is exempt from the
7 provisions of Section 3-75.
8 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
9 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
10 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
11 eff. 12-12-97.)
12 Section 60. The Service Occupation Tax Act is amended by
13 changing Section 3-5 as follows:
14 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
15 Sec. 3-5. Exemptions. The following tangible personal
16 property is exempt from the tax imposed by this Act:
17 (1) Personal property sold by a corporation, society,
18 association, foundation, institution, or organization, other
19 than a limited liability company, that is organized and
20 operated as a not-for-profit service enterprise for the
21 benefit of persons 65 years of age or older if the personal
22 property was not purchased by the enterprise for the purpose
23 of resale by the enterprise.
24 (2) Personal property purchased by a not-for-profit
25 Illinois county fair association for use in conducting,
26 operating, or promoting the county fair.
27 (3) Personal property purchased by any not-for-profit
28 music or dramatic arts organization that establishes, by
29 proof required by the Department by rule, that it has
30 received an exemption under Section 501(c)(3) of the
31 Internal Revenue Code and that is organized and operated for
32 the presentation of live public performances of musical or
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1 theatrical works on a regular basis.
2 (4) Legal tender, currency, medallions, or gold or
3 silver coinage issued by the State of Illinois, the
4 government of the United States of America, or the government
5 of any foreign country, and bullion.
6 (5) Graphic arts machinery and equipment, including
7 repair and replacement parts, both new and used, and
8 including that manufactured on special order or purchased for
9 lease, certified by the purchaser to be used primarily for
10 graphic arts production.
11 (6) Personal property sold by a teacher-sponsored
12 student organization affiliated with an elementary or
13 secondary school located in Illinois.
14 (7) Farm machinery and equipment, both new and used,
15 including that manufactured on special order, certified by
16 the purchaser to be used primarily for production agriculture
17 or State or federal agricultural programs, including
18 individual replacement parts for the machinery and equipment,
19 and including machinery and equipment purchased for lease,
20 but excluding motor vehicles required to be registered under
21 the Illinois Vehicle Code. Horticultural polyhouses or hoop
22 houses used for propagating, growing, or overwintering plants
23 shall be considered farm machinery and equipment under this
24 paragraph.
25 (8) Fuel and petroleum products sold to or used by an
26 air common carrier, certified by the carrier to be used for
27 consumption, shipment, or storage in the conduct of its
28 business as an air common carrier, for a flight destined for
29 or returning from a location or locations outside the United
30 States without regard to previous or subsequent domestic
31 stopovers.
32 (9) Proceeds of mandatory service charges separately
33 stated on customers' bills for the purchase and consumption
34 of food and beverages, to the extent that the proceeds of the
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1 service charge are in fact turned over as tips or as a
2 substitute for tips to the employees who participate directly
3 in preparing, serving, hosting or cleaning up the food or
4 beverage function with respect to which the service charge is
5 imposed.
6 (10) Oil field exploration, drilling, and production
7 equipment, including (i) rigs and parts of rigs, rotary rigs,
8 cable tool rigs, and workover rigs, (ii) pipe and tubular
9 goods, including casing and drill strings, (iii) pumps and
10 pump-jack units, (iv) storage tanks and flow lines, (v) any
11 individual replacement part for oil field exploration,
12 drilling, and production equipment, and (vi) machinery and
13 equipment purchased for lease; but excluding motor vehicles
14 required to be registered under the Illinois Vehicle Code.
15 (11) Photoprocessing machinery and equipment, including
16 repair and replacement parts, both new and used, including
17 that manufactured on special order, certified by the
18 purchaser to be used primarily for photoprocessing, and
19 including photoprocessing machinery and equipment purchased
20 for lease.
21 (12) Coal exploration, mining, offhighway hauling,
22 processing, maintenance, and reclamation equipment, including
23 replacement parts and equipment, and including equipment
24 purchased for lease, but excluding motor vehicles required to
25 be registered under the Illinois Vehicle Code.
26 (13) Food for human consumption that is to be consumed
27 off the premises where it is sold (other than alcoholic
28 beverages, soft drinks and food that has been prepared for
29 immediate consumption) and prescription and non-prescription
30 medicines, drugs, medical appliances, and insulin, urine
31 testing materials, syringes, and needles used by diabetics,
32 for human use, when purchased for use by a person receiving
33 medical assistance under Article 5 of the Illinois Public Aid
34 Code who resides in a licensed long-term care facility, as
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1 defined in the Nursing Home Care Act.
2 (14) Semen used for artificial insemination of livestock
3 for direct agricultural production.
4 (15) Horses, or interests in horses, registered with and
5 meeting the requirements of any of the Arabian Horse Club
6 Registry of America, Appaloosa Horse Club, American Quarter
7 Horse Association, United States Trotting Association, or
8 Jockey Club, as appropriate, used for purposes of breeding or
9 racing for prizes.
10 (16) Computers and communications equipment utilized for
11 any hospital purpose and equipment used in the diagnosis,
12 analysis, or treatment of hospital patients sold to a lessor
13 who leases the equipment, under a lease of one year or longer
14 executed or in effect at the time of the purchase, to a
15 hospital that has been issued an active tax exemption
16 identification number by the Department under Section 1g of
17 the Retailers' Occupation Tax Act. This paragraph is exempt
18 from the provisions of Section 3-55.
19 (17) Personal property sold to a lessor who leases the
20 property, under a lease of one year or longer executed or in
21 effect at the time of the purchase, to a governmental body
22 that has been issued an active tax exemption identification
23 number by the Department under Section 1g of the Retailers'
24 Occupation Tax Act. This paragraph is exempt from the
25 provisions of Section 3-55.
26 (18) Beginning with taxable years ending on or after
27 December 31, 1995 and ending with taxable years ending on or
28 before December 31, 2004, personal property that is donated
29 for disaster relief to be used in a State or federally
30 declared disaster area in Illinois or bordering Illinois by a
31 manufacturer or retailer that is registered in this State to
32 a corporation, society, association, foundation, or
33 institution that has been issued a sales tax exemption
34 identification number by the Department that assists victims
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1 of the disaster who reside within the declared disaster area.
2 (19) Beginning with taxable years ending on or after
3 December 31, 1995 and ending with taxable years ending on or
4 before December 31, 2004, personal property that is used in
5 the performance of infrastructure repairs in this State,
6 including but not limited to municipal roads and streets,
7 access roads, bridges, sidewalks, waste disposal systems,
8 water and sewer line extensions, water distribution and
9 purification facilities, storm water drainage and retention
10 facilities, and sewage treatment facilities, resulting from a
11 State or federally declared disaster in Illinois or bordering
12 Illinois when such repairs are initiated on facilities
13 located in the declared disaster area within 6 months after
14 the disaster.
15 (20) Beginning January 1, 1999, qualified technological
16 equipment sold to lessors for lease under leases subject to
17 the Qualified Technological Equipment Leasing Occupation and
18 Use Tax Act. This paragraph is exempt from the provisions of
19 Section 3-55.
20 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
21 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
22 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
23 eff. 12-12-97.)
24 Section 65. The Retailers' Occupation Tax Act is amended
25 by adding Sections 1c-5 and 3.5 and changing Sections 2-5 and
26 3 as follows:
27 (35 ILCS 120/1c-5 new)
28 Sec. 1c-5. Sale of used qualified technological
29 equipment by lessors. A person who is engaged in the
30 business of leasing qualified technological equipment under
31 leases subject to the Qualified Technological Equipment
32 Leasing Occupation and Use Tax Act and who, in connection
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1 with that business, sells the property to a purchaser for his
2 or her use and not for the purpose of resale, is a retailer
3 engaged in the business of selling tangible personal property
4 at retail under this Act to the extent of the value of the
5 property sold.
6 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
7 Sec. 2-5. Exemptions. Gross receipts from proceeds from
8 the sale of the following tangible personal property are
9 exempt from the tax imposed by this Act:
10 (1) Farm chemicals.
11 (2) Farm machinery and equipment, both new and used,
12 including that manufactured on special order, certified by
13 the purchaser to be used primarily for production agriculture
14 or State or federal agricultural programs, including
15 individual replacement parts for the machinery and equipment,
16 and including machinery and equipment purchased for lease,
17 but excluding motor vehicles required to be registered under
18 the Illinois Vehicle Code. Horticultural polyhouses or hoop
19 houses used for propagating, growing, or overwintering plants
20 shall be considered farm machinery and equipment under this
21 paragraph.
22 (3) Distillation machinery and equipment, sold as a unit
23 or kit, assembled or installed by the retailer, certified by
24 the user to be used only for the production of ethyl alcohol
25 that will be used for consumption as motor fuel or as a
26 component of motor fuel for the personal use of the user, and
27 not subject to sale or resale.
28 (4) Graphic arts machinery and equipment, including
29 repair and replacement parts, both new and used, and
30 including that manufactured on special order or purchased for
31 lease, certified by the purchaser to be used primarily for
32 graphic arts production.
33 (5) A motor vehicle of the first division, a motor
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1 vehicle of the second division that is a self-contained motor
2 vehicle designed or permanently converted to provide living
3 quarters for recreational, camping, or travel use, with
4 direct walk through access to the living quarters from the
5 driver's seat, or a motor vehicle of the second division that
6 is of the van configuration designed for the transportation
7 of not less than 7 nor more than 16 passengers, as defined in
8 Section 1-146 of the Illinois Vehicle Code, that is used for
9 automobile renting, as defined in the Automobile Renting
10 Occupation and Use Tax Act.
11 (6) Personal property sold by a teacher-sponsored
12 student organization affiliated with an elementary or
13 secondary school located in Illinois.
14 (7) Proceeds of that portion of the selling price of a
15 passenger car the sale of which is subject to the Replacement
16 Vehicle Tax.
17 (8) Personal property sold to an Illinois county fair
18 association for use in conducting, operating, or promoting
19 the county fair.
20 (9) Personal property sold to a not-for-profit music or
21 dramatic arts organization that establishes, by proof
22 required by the Department by rule, that it has received an
23 exemption under Section 501(c) (3) of the Internal Revenue
24 Code and that is organized and operated for the presentation
25 of live public performances of musical or theatrical works on
26 a regular basis.
27 (10) Personal property sold by a corporation, society,
28 association, foundation, institution, or organization, other
29 than a limited liability company, that is organized and
30 operated as a not-for-profit service enterprise for the
31 benefit of persons 65 years of age or older if the personal
32 property was not purchased by the enterprise for the purpose
33 of resale by the enterprise.
34 (11) Personal property sold to a governmental body, to a
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1 corporation, society, association, foundation, or institution
2 organized and operated exclusively for charitable, religious,
3 or educational purposes, or to a not-for-profit corporation,
4 society, association, foundation, institution, or
5 organization that has no compensated officers or employees
6 and that is organized and operated primarily for the
7 recreation of persons 55 years of age or older. A limited
8 liability company may qualify for the exemption under this
9 paragraph only if the limited liability company is organized
10 and operated exclusively for educational purposes. On and
11 after July 1, 1987, however, no entity otherwise eligible for
12 this exemption shall make tax-free purchases unless it has an
13 active identification number issued by the Department.
14 (12) Personal property sold to interstate carriers for
15 hire for use as rolling stock moving in interstate commerce
16 or to lessors under leases of one year or longer executed or
17 in effect at the time of purchase by interstate carriers for
18 hire for use as rolling stock moving in interstate commerce
19 and equipment operated by a telecommunications provider,
20 licensed as a common carrier by the Federal Communications
21 Commission, which is permanently installed in or affixed to
22 aircraft moving in interstate commerce.
23 (13) Proceeds from sales to owners, lessors, or shippers
24 of tangible personal property that is utilized by interstate
25 carriers for hire for use as rolling stock moving in
26 interstate commerce and equipment operated by a
27 telecommunications provider, licensed as a common carrier by
28 the Federal Communications Commission, which is permanently
29 installed in or affixed to aircraft moving in interstate
30 commerce.
31 (14) Machinery and equipment that will be used by the
32 purchaser, or a lessee of the purchaser, primarily in the
33 process of manufacturing or assembling tangible personal
34 property for wholesale or retail sale or lease, whether the
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1 sale or lease is made directly by the manufacturer or by some
2 other person, whether the materials used in the process are
3 owned by the manufacturer or some other person, or whether
4 the sale or lease is made apart from or as an incident to the
5 seller's engaging in the service occupation of producing
6 machines, tools, dies, jigs, patterns, gauges, or other
7 similar items of no commercial value on special order for a
8 particular purchaser.
9 (15) Proceeds of mandatory service charges separately
10 stated on customers' bills for purchase and consumption of
11 food and beverages, to the extent that the proceeds of the
12 service charge are in fact turned over as tips or as a
13 substitute for tips to the employees who participate directly
14 in preparing, serving, hosting or cleaning up the food or
15 beverage function with respect to which the service charge is
16 imposed.
17 (16) Petroleum products sold to a purchaser if the
18 seller is prohibited by federal law from charging tax to the
19 purchaser.
20 (17) Tangible personal property sold to a common carrier
21 by rail or motor that receives the physical possession of the
22 property in Illinois and that transports the property, or
23 shares with another common carrier in the transportation of
24 the property, out of Illinois on a standard uniform bill of
25 lading showing the seller of the property as the shipper or
26 consignor of the property to a destination outside Illinois,
27 for use outside Illinois.
28 (18) Legal tender, currency, medallions, or gold or
29 silver coinage issued by the State of Illinois, the
30 government of the United States of America, or the government
31 of any foreign country, and bullion.
32 (19) Oil field exploration, drilling, and production
33 equipment, including (i) rigs and parts of rigs, rotary rigs,
34 cable tool rigs, and workover rigs, (ii) pipe and tubular
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1 goods, including casing and drill strings, (iii) pumps and
2 pump-jack units, (iv) storage tanks and flow lines, (v) any
3 individual replacement part for oil field exploration,
4 drilling, and production equipment, and (vi) machinery and
5 equipment purchased for lease; but excluding motor vehicles
6 required to be registered under the Illinois Vehicle Code.
7 (20) Photoprocessing machinery and equipment, including
8 repair and replacement parts, both new and used, including
9 that manufactured on special order, certified by the
10 purchaser to be used primarily for photoprocessing, and
11 including photoprocessing machinery and equipment purchased
12 for lease.
13 (21) Coal exploration, mining, offhighway hauling,
14 processing, maintenance, and reclamation equipment, including
15 replacement parts and equipment, and including equipment
16 purchased for lease, but excluding motor vehicles required to
17 be registered under the Illinois Vehicle Code.
18 (22) Fuel and petroleum products sold to or used by an
19 air carrier, certified by the carrier to be used for
20 consumption, shipment, or storage in the conduct of its
21 business as an air common carrier, for a flight destined for
22 or returning from a location or locations outside the United
23 States without regard to previous or subsequent domestic
24 stopovers.
25 (23) A transaction in which the purchase order is
26 received by a florist who is located outside Illinois, but
27 who has a florist located in Illinois deliver the property to
28 the purchaser or the purchaser's donee in Illinois.
29 (24) Fuel consumed or used in the operation of ships,
30 barges, or vessels that are used primarily in or for the
31 transportation of property or the conveyance of persons for
32 hire on rivers bordering on this State if the fuel is
33 delivered by the seller to the purchaser's barge, ship, or
34 vessel while it is afloat upon that bordering river.
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1 (25) A motor vehicle sold in this State to a nonresident
2 even though the motor vehicle is delivered to the nonresident
3 in this State, if the motor vehicle is not to be titled in
4 this State, and if a driveaway decal permit is issued to the
5 motor vehicle as provided in Section 3-603 of the Illinois
6 Vehicle Code or if the nonresident purchaser has vehicle
7 registration plates to transfer to the motor vehicle upon
8 returning to his or her home state. The issuance of the
9 driveaway decal permit or having the out-of-state
10 registration plates to be transferred is prima facie evidence
11 that the motor vehicle will not be titled in this State.
12 (26) Semen used for artificial insemination of livestock
13 for direct agricultural production.
14 (27) Horses, or interests in horses, registered with and
15 meeting the requirements of any of the Arabian Horse Club
16 Registry of America, Appaloosa Horse Club, American Quarter
17 Horse Association, United States Trotting Association, or
18 Jockey Club, as appropriate, used for purposes of breeding or
19 racing for prizes.
20 (28) Computers and communications equipment utilized for
21 any hospital purpose and equipment used in the diagnosis,
22 analysis, or treatment of hospital patients sold to a lessor
23 who leases the equipment, under a lease of one year or longer
24 executed or in effect at the time of the purchase, to a
25 hospital that has been issued an active tax exemption
26 identification number by the Department under Section 1g of
27 this Act. This paragraph is exempt from the provisions of
28 Section 2-70.
29 (29) Personal property sold to a lessor who leases the
30 property, under a lease of one year or longer executed or in
31 effect at the time of the purchase, to a governmental body
32 that has been issued an active tax exemption identification
33 number by the Department under Section 1g of this Act. This
34 paragraph is exempt from the provisions of Section 2-70.
-66- LRB9000527KDksam02
1 (30) Beginning with taxable years ending on or after
2 December 31, 1995 and ending with taxable years ending on or
3 before December 31, 2004, personal property that is donated
4 for disaster relief to be used in a State or federally
5 declared disaster area in Illinois or bordering Illinois by a
6 manufacturer or retailer that is registered in this State to
7 a corporation, society, association, foundation, or
8 institution that has been issued a sales tax exemption
9 identification number by the Department that assists victims
10 of the disaster who reside within the declared disaster area.
11 (31) Beginning with taxable years ending on or after
12 December 31, 1995 and ending with taxable years ending on or
13 before December 31, 2004, personal property that is used in
14 the performance of infrastructure repairs in this State,
15 including but not limited to municipal roads and streets,
16 access roads, bridges, sidewalks, waste disposal systems,
17 water and sewer line extensions, water distribution and
18 purification facilities, storm water drainage and retention
19 facilities, and sewage treatment facilities, resulting from a
20 State or federally declared disaster in Illinois or bordering
21 Illinois when such repairs are initiated on facilities
22 located in the declared disaster area within 6 months after
23 the disaster.
24 (32) Beginning January 1, 1999, qualified technological
25 equipment sold to lessors for lease under leases subject to
26 the Qualified Technological Equipment Leasing Occupation and
27 Use Tax Act. This paragraph is exempt from the provisions of
28 Section 2-70.
29 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
30 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
31 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-519,
32 eff. 6-1-98; 90-552, eff. 12-12-97.)
33 (35 ILCS 120/3) (from Ch. 120, par. 442)
-67- LRB9000527KDksam02
1 (Text of Section before amendment by P.A. 90-491)
2 Sec. 3. Except as provided in this Section, on or before
3 the twentieth day of each calendar month, every person
4 engaged in the business of selling tangible personal property
5 at retail in this State during the preceding calendar month
6 shall file a return with the Department, stating:
7 1. The name of the seller;
8 2. His residence address and the address of his
9 principal place of business and the address of the
10 principal place of business (if that is a different
11 address) from which he engages in the business of selling
12 tangible personal property at retail in this State;
13 3. Total amount of receipts received by him during
14 the preceding calendar month or quarter, as the case may
15 be, from sales of tangible personal property, and from
16 services furnished, by him during such preceding calendar
17 month or quarter;
18 4. Total amount received by him during the
19 preceding calendar month or quarter on charge and time
20 sales of tangible personal property, and from services
21 furnished, by him prior to the month or quarter for which
22 the return is filed;
23 5. Deductions allowed by law;
24 6. Gross receipts which were received by him during
25 the preceding calendar month or quarter and upon the
26 basis of which the tax is imposed;
27 7. The amount of credit provided in Section 2d of
28 this Act;
29 8. The amount of tax due;
30 9. The signature of the taxpayer; and
31 10. Such other reasonable information as the
32 Department may require.
33 If a taxpayer fails to sign a return within 30 days after
34 the proper notice and demand for signature by the Department,
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1 the return shall be considered valid and any amount shown to
2 be due on the return shall be deemed assessed.
3 Each return shall be accompanied by the statement of
4 prepaid tax issued pursuant to Section 2e for which credit is
5 claimed.
6 A retailer may accept a Manufacturer's Purchase Credit
7 certification from a purchaser in satisfaction of Use Tax as
8 provided in Section 3-85 of the Use Tax Act if the purchaser
9 provides the appropriate documentation as required by Section
10 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
11 certification, accepted by a retailer as provided in Section
12 3-85 of the Use Tax Act, may be used by that retailer to
13 satisfy Retailers' Occupation Tax liability in the amount
14 claimed in the certification, not to exceed 6.25% of the
15 receipts subject to tax from a qualifying purchase.
16 The Department may require returns to be filed on a
17 quarterly basis. If so required, a return for each calendar
18 quarter shall be filed on or before the twentieth day of the
19 calendar month following the end of such calendar quarter.
20 The taxpayer shall also file a return with the Department for
21 each of the first two months of each calendar quarter, on or
22 before the twentieth day of the following calendar month,
23 stating:
24 1. The name of the seller;
25 2. The address of the principal place of business
26 from which he engages in the business of selling tangible
27 personal property at retail in this State;
28 3. The total amount of taxable receipts received by
29 him during the preceding calendar month from sales of
30 tangible personal property by him during such preceding
31 calendar month, including receipts from charge and time
32 sales, but less all deductions allowed by law;
33 4. The amount of credit provided in Section 2d of
34 this Act;
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1 5. The amount of tax due; and
2 6. Such other reasonable information as the
3 Department may require.
4 If a total amount of less than $1 is payable, refundable
5 or creditable, such amount shall be disregarded if it is less
6 than 50 cents and shall be increased to $1 if it is 50 cents
7 or more.
8 Beginning October 1, 1993, a taxpayer who has an average
9 monthly tax liability of $150,000 or more shall make all
10 payments required by rules of the Department by electronic
11 funds transfer. Beginning October 1, 1994, a taxpayer who
12 has an average monthly tax liability of $100,000 or more
13 shall make all payments required by rules of the Department
14 by electronic funds transfer. Beginning October 1, 1995, a
15 taxpayer who has an average monthly tax liability of $50,000
16 or more shall make all payments required by rules of the
17 Department by electronic funds transfer. The term "average
18 monthly tax liability" shall be the sum of the taxpayer's
19 liabilities under this Act, and under all other State and
20 local occupation and use tax laws administered by the
21 Department, for the immediately preceding calendar year
22 divided by 12.
23 Before August 1 of each year beginning in 1993, the
24 Department shall notify all taxpayers required to make
25 payments by electronic funds transfer. All taxpayers
26 required to make payments by electronic funds transfer shall
27 make those payments for a minimum of one year beginning on
28 October 1.
29 Any taxpayer not required to make payments by electronic
30 funds transfer may make payments by electronic funds transfer
31 with the permission of the Department.
32 All taxpayers required to make payment by electronic
33 funds transfer and any taxpayers authorized to voluntarily
34 make payments by electronic funds transfer shall make those
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1 payments in the manner authorized by the Department.
2 The Department shall adopt such rules as are necessary to
3 effectuate a program of electronic funds transfer and the
4 requirements of this Section.
5 Any amount which is required to be shown or reported on
6 any return or other document under this Act shall, if such
7 amount is not a whole-dollar amount, be increased to the
8 nearest whole-dollar amount in any case where the fractional
9 part of a dollar is 50 cents or more, and decreased to the
10 nearest whole-dollar amount where the fractional part of a
11 dollar is less than 50 cents.
12 If the retailer is otherwise required to file a monthly
13 return and if the retailer's average monthly tax liability to
14 the Department does not exceed $200, the Department may
15 authorize his returns to be filed on a quarter annual basis,
16 with the return for January, February and March of a given
17 year being due by April 20 of such year; with the return for
18 April, May and June of a given year being due by July 20 of
19 such year; with the return for July, August and September of
20 a given year being due by October 20 of such year, and with
21 the return for October, November and December of a given year
22 being due by January 20 of the following year.
23 If the retailer is otherwise required to file a monthly
24 or quarterly return and if the retailer's average monthly tax
25 liability with the Department does not exceed $50, the
26 Department may authorize his returns to be filed on an annual
27 basis, with the return for a given year being due by January
28 20 of the following year.
29 Such quarter annual and annual returns, as to form and
30 substance, shall be subject to the same requirements as
31 monthly returns.
32 Notwithstanding any other provision in this Act
33 concerning the time within which a retailer may file his
34 return, in the case of any retailer who ceases to engage in a
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1 kind of business which makes him responsible for filing
2 returns under this Act, such retailer shall file a final
3 return under this Act with the Department not more than one
4 month after discontinuing such business.
5 Where the same person has more than one business
6 registered with the Department under separate registrations
7 under this Act, such person may not file each return that is
8 due as a single return covering all such registered
9 businesses, but shall file separate returns for each such
10 registered business.
11 In addition, with respect to motor vehicles, watercraft,
12 aircraft, and trailers that are required to be registered
13 with an agency of this State, every retailer selling this
14 kind of tangible personal property shall file, with the
15 Department, upon a form to be prescribed and supplied by the
16 Department, a separate return for each such item of tangible
17 personal property which the retailer sells, except that
18 where, in the same transaction, a retailer of aircraft,
19 watercraft, motor vehicles or trailers transfers more than
20 one aircraft, watercraft, motor vehicle or trailer to another
21 aircraft, watercraft, motor vehicle retailer or trailer
22 retailer for the purpose of resale, that seller for resale
23 may report the transfer of all aircraft, watercraft, motor
24 vehicles or trailers involved in that transaction to the
25 Department on the same uniform invoice-transaction reporting
26 return form. For purposes of this Section, "watercraft"
27 means a Class 2, Class 3, or Class 4 watercraft as defined in
28 Section 3-2 of the Boat Registration and Safety Act, a
29 personal watercraft, or any boat equipped with an inboard
30 motor.
31 Any retailer who sells only motor vehicles, watercraft,
32 aircraft, or trailers that are required to be registered with
33 an agency of this State, so that all retailers' occupation
34 tax liability is required to be reported, and is reported, on
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1 such transaction reporting returns and who is not otherwise
2 required to file monthly or quarterly returns, need not file
3 monthly or quarterly returns. However, those retailers shall
4 be required to file returns on an annual basis.
5 The transaction reporting return, in the case of motor
6 vehicles or trailers that are required to be registered with
7 an agency of this State, shall be the same document as the
8 Uniform Invoice referred to in Section 5-402 of The Illinois
9 Vehicle Code and must show the name and address of the
10 seller; the name and address of the purchaser; the amount of
11 the selling price including the amount allowed by the
12 retailer for traded-in property, if any; the amount allowed
13 by the retailer for the traded-in tangible personal property,
14 if any, to the extent to which Section 1 of this Act allows
15 an exemption for the value of traded-in property; the balance
16 payable after deducting such trade-in allowance from the
17 total selling price; the amount of tax due from the retailer
18 with respect to such transaction; the amount of tax collected
19 from the purchaser by the retailer on such transaction (or
20 satisfactory evidence that such tax is not due in that
21 particular instance, if that is claimed to be the fact); the
22 place and date of the sale; a sufficient identification of
23 the property sold; such other information as is required in
24 Section 5-402 of The Illinois Vehicle Code, and such other
25 information as the Department may reasonably require.
26 The transaction reporting return in the case of
27 watercraft or aircraft must show the name and address of the
28 seller; the name and address of the purchaser; the amount of
29 the selling price including the amount allowed by the
30 retailer for traded-in property, if any; the amount allowed
31 by the retailer for the traded-in tangible personal property,
32 if any, to the extent to which Section 1 of this Act allows
33 an exemption for the value of traded-in property; the balance
34 payable after deducting such trade-in allowance from the
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1 total selling price; the amount of tax due from the retailer
2 with respect to such transaction; the amount of tax collected
3 from the purchaser by the retailer on such transaction (or
4 satisfactory evidence that such tax is not due in that
5 particular instance, if that is claimed to be the fact); the
6 place and date of the sale, a sufficient identification of
7 the property sold, and such other information as the
8 Department may reasonably require.
9 Such transaction reporting return shall be filed not
10 later than 20 days after the day of delivery of the item that
11 is being sold, but may be filed by the retailer at any time
12 sooner than that if he chooses to do so. The transaction
13 reporting return and tax remittance or proof of exemption
14 from the Illinois use tax may be transmitted to the
15 Department by way of the State agency with which, or State
16 officer with whom the tangible personal property must be
17 titled or registered (if titling or registration is required)
18 if the Department and such agency or State officer determine
19 that this procedure will expedite the processing of
20 applications for title or registration.
21 With each such transaction reporting return, the retailer
22 shall remit the proper amount of tax due (or shall submit
23 satisfactory evidence that the sale is not taxable if that is
24 the case), to the Department or its agents, whereupon the
25 Department shall issue, in the purchaser's name, a use tax
26 receipt (or a certificate of exemption if the Department is
27 satisfied that the particular sale is tax exempt) which such
28 purchaser may submit to the agency with which, or State
29 officer with whom, he must title or register the tangible
30 personal property that is involved (if titling or
31 registration is required) in support of such purchaser's
32 application for an Illinois certificate or other evidence of
33 title or registration to such tangible personal property.
34 No retailer's failure or refusal to remit tax under this
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1 Act precludes a user, who has paid the proper tax to the
2 retailer, from obtaining his certificate of title or other
3 evidence of title or registration (if titling or registration
4 is required) upon satisfying the Department that such user
5 has paid the proper tax (if tax is due) to the retailer. The
6 Department shall adopt appropriate rules to carry out the
7 mandate of this paragraph.
8 If the user who would otherwise pay tax to the retailer
9 wants the transaction reporting return filed and the payment
10 of the tax or proof of exemption made to the Department
11 before the retailer is willing to take these actions and such
12 user has not paid the tax to the retailer, such user may
13 certify to the fact of such delay by the retailer and may
14 (upon the Department being satisfied of the truth of such
15 certification) transmit the information required by the
16 transaction reporting return and the remittance for tax or
17 proof of exemption directly to the Department and obtain his
18 tax receipt or exemption determination, in which event the
19 transaction reporting return and tax remittance (if a tax
20 payment was required) shall be credited by the Department to
21 the proper retailer's account with the Department, but
22 without the 2.1% or 1.75% discount provided for in this
23 Section being allowed. When the user pays the tax directly
24 to the Department, he shall pay the tax in the same amount
25 and in the same form in which it would be remitted if the tax
26 had been remitted to the Department by the retailer.
27 Refunds made by the seller during the preceding return
28 period to purchasers, on account of tangible personal
29 property returned to the seller, shall be allowed as a
30 deduction under subdivision 5 of his monthly or quarterly
31 return, as the case may be, in case the seller had
32 theretofore included the receipts from the sale of such
33 tangible personal property in a return filed by him and had
34 paid the tax imposed by this Act with respect to such
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1 receipts.
2 Where the seller is a corporation, the return filed on
3 behalf of such corporation shall be signed by the president,
4 vice-president, secretary or treasurer or by the properly
5 accredited agent of such corporation.
6 Where the seller is a limited liability company, the
7 return filed on behalf of the limited liability company shall
8 be signed by a manager, member, or properly accredited agent
9 of the limited liability company.
10 Except as provided in this Section, the retailer filing
11 the return under this Section shall, at the time of filing
12 such return, pay to the Department the amount of tax imposed
13 by this Act less a discount of 2.1% prior to January 1, 1990
14 and 1.75% on and after January 1, 1990, or $5 per calendar
15 year, whichever is greater, which is allowed to reimburse the
16 retailer for the expenses incurred in keeping records,
17 preparing and filing returns, remitting the tax and supplying
18 data to the Department on request. Any prepayment made
19 pursuant to Section 2d of this Act shall be included in the
20 amount on which such 2.1% or 1.75% discount is computed. In
21 the case of retailers who report and pay the tax on a
22 transaction by transaction basis, as provided in this
23 Section, such discount shall be taken with each such tax
24 remittance instead of when such retailer files his periodic
25 return.
26 If the taxpayer's average monthly tax liability to the
27 Department under this Act, the Use Tax Act, the Service
28 Occupation Tax Act, and the Service Use Tax Act, excluding
29 any liability for prepaid sales tax to be remitted in
30 accordance with Section 2d of this Act, was $10,000 or more
31 during the preceding 4 complete calendar quarters, he shall
32 file a return with the Department each month by the 20th day
33 of the month next following the month during which such tax
34 liability is incurred and shall make payments to the
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1 Department on or before the 7th, 15th, 22nd and last day of
2 the month during which such liability is incurred. If the
3 month during which such tax liability is incurred began prior
4 to January 1, 1985, each payment shall be in an amount equal
5 to 1/4 of the taxpayer's actual liability for the month or an
6 amount set by the Department not to exceed 1/4 of the average
7 monthly liability of the taxpayer to the Department for the
8 preceding 4 complete calendar quarters (excluding the month
9 of highest liability and the month of lowest liability in
10 such 4 quarter period). If the month during which such tax
11 liability is incurred begins on or after January 1, 1985 and
12 prior to January 1, 1987, each payment shall be in an amount
13 equal to 22.5% of the taxpayer's actual liability for the
14 month or 27.5% of the taxpayer's liability for the same
15 calendar month of the preceding year. If the month during
16 which such tax liability is incurred begins on or after
17 January 1, 1987 and prior to January 1, 1988, each payment
18 shall be in an amount equal to 22.5% of the taxpayer's actual
19 liability for the month or 26.25% of the taxpayer's liability
20 for the same calendar month of the preceding year. If the
21 month during which such tax liability is incurred begins on
22 or after January 1, 1988, and prior to January 1, 1989, or
23 begins on or after January 1, 1996, each payment shall be in
24 an amount equal to 22.5% of the taxpayer's actual liability
25 for the month or 25% of the taxpayer's liability for the same
26 calendar month of the preceding year. If the month during
27 which such tax liability is incurred begins on or after
28 January 1, 1989, and prior to January 1, 1996, each payment
29 shall be in an amount equal to 22.5% of the taxpayer's actual
30 liability for the month or 25% of the taxpayer's liability
31 for the same calendar month of the preceding year or 100% of
32 the taxpayer's actual liability for the quarter monthly
33 reporting period. The amount of such quarter monthly
34 payments shall be credited against the final tax liability of
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1 the taxpayer's return for that month. Once applicable, the
2 requirement of the making of quarter monthly payments to the
3 Department by taxpayers having an average monthly tax
4 liability of $10,000 or more as determined in the manner
5 provided above shall continue until such taxpayer's average
6 monthly liability to the Department during the preceding 4
7 complete calendar quarters (excluding the month of highest
8 liability and the month of lowest liability) is less than
9 $9,000, or until such taxpayer's average monthly liability to
10 the Department as computed for each calendar quarter of the 4
11 preceding complete calendar quarter period is less than
12 $10,000. However, if a taxpayer can show the Department that
13 a substantial change in the taxpayer's business has occurred
14 which causes the taxpayer to anticipate that his average
15 monthly tax liability for the reasonably foreseeable future
16 will fall below $10,000, then such taxpayer may petition the
17 Department for a change in such taxpayer's reporting status.
18 The Department shall change such taxpayer's reporting status
19 unless it finds that such change is seasonal in nature and
20 not likely to be long term. If any such quarter monthly
21 payment is not paid at the time or in the amount required by
22 this Section, then the taxpayer's 2.1% or 1.75% vendors'
23 discount shall be reduced by 2.1% or 1.75% of the difference
24 between the minimum amount due as a payment and the amount of
25 such quarter monthly payment actually and timely paid, and
26 the taxpayer shall be liable for penalties and interest on
27 such difference, except insofar as the taxpayer has
28 previously made payments for that month to the Department in
29 excess of the minimum payments previously due as provided in
30 this Section. The Department shall make reasonable rules and
31 regulations to govern the quarter monthly payment amount and
32 quarter monthly payment dates for taxpayers who file on other
33 than a calendar monthly basis.
34 Without regard to whether a taxpayer is required to make
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1 quarter monthly payments as specified above, any taxpayer who
2 is required by Section 2d of this Act to collect and remit
3 prepaid taxes and has collected prepaid taxes which average
4 in excess of $25,000 per month during the preceding 2
5 complete calendar quarters, shall file a return with the
6 Department as required by Section 2f and shall make payments
7 to the Department on or before the 7th, 15th, 22nd and last
8 day of the month during which such liability is incurred. If
9 the month during which such tax liability is incurred began
10 prior to the effective date of this amendatory Act of 1985,
11 each payment shall be in an amount not less than 22.5% of the
12 taxpayer's actual liability under Section 2d. If the month
13 during which such tax liability is incurred begins on or
14 after January 1, 1986, each payment shall be in an amount
15 equal to 22.5% of the taxpayer's actual liability for the
16 month or 27.5% of the taxpayer's liability for the same
17 calendar month of the preceding calendar year. If the month
18 during which such tax liability is incurred begins on or
19 after January 1, 1987, each payment shall be in an amount
20 equal to 22.5% of the taxpayer's actual liability for the
21 month or 26.25% of the taxpayer's liability for the same
22 calendar month of the preceding year. The amount of such
23 quarter monthly payments shall be credited against the final
24 tax liability of the taxpayer's return for that month filed
25 under this Section or Section 2f, as the case may be. Once
26 applicable, the requirement of the making of quarter monthly
27 payments to the Department pursuant to this paragraph shall
28 continue until such taxpayer's average monthly prepaid tax
29 collections during the preceding 2 complete calendar quarters
30 is $25,000 or less. If any such quarter monthly payment is
31 not paid at the time or in the amount required, the taxpayer
32 shall be liable for penalties and interest on such
33 difference, except insofar as the taxpayer has previously
34 made payments for that month in excess of the minimum
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1 payments previously due.
2 If any payment provided for in this Section exceeds the
3 taxpayer's liabilities under this Act, the Use Tax Act, the
4 Service Occupation Tax Act and the Service Use Tax Act, as
5 shown on an original monthly return, the Department shall, if
6 requested by the taxpayer, issue to the taxpayer a credit
7 memorandum no later than 30 days after the date of payment.
8 The credit evidenced by such credit memorandum may be
9 assigned by the taxpayer to a similar taxpayer under this
10 Act, the Use Tax Act, the Service Occupation Tax Act or the
11 Service Use Tax Act, in accordance with reasonable rules and
12 regulations to be prescribed by the Department. If no such
13 request is made, the taxpayer may credit such excess payment
14 against tax liability subsequently to be remitted to the
15 Department under this Act, the Use Tax Act, the Service
16 Occupation Tax Act or the Service Use Tax Act, in accordance
17 with reasonable rules and regulations prescribed by the
18 Department. If the Department subsequently determined that
19 all or any part of the credit taken was not actually due to
20 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
21 shall be reduced by 2.1% or 1.75% of the difference between
22 the credit taken and that actually due, and that taxpayer
23 shall be liable for penalties and interest on such
24 difference.
25 If a retailer of motor fuel is entitled to a credit under
26 Section 2d of this Act which exceeds the taxpayer's liability
27 to the Department under this Act for the month which the
28 taxpayer is filing a return, the Department shall issue the
29 taxpayer a credit memorandum for the excess.
30 Beginning January 1, 1990, each month the Department
31 shall pay into the Local Government Tax Fund, a special fund
32 in the State treasury which is hereby created, the net
33 revenue realized for the preceding month from the 1% tax on
34 sales of food for human consumption which is to be consumed
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1 off the premises where it is sold (other than alcoholic
2 beverages, soft drinks and food which has been prepared for
3 immediate consumption) and prescription and nonprescription
4 medicines, drugs, medical appliances and insulin, urine
5 testing materials, syringes and needles used by diabetics.
6 Beginning January 1, 1990, each month the Department
7 shall pay into the County and Mass Transit District Fund, a
8 special fund in the State treasury which is hereby created,
9 4% of the net revenue realized for the preceding month from
10 the 6.25% general rate.
11 Beginning January 1, 1990, each month the Department
12 shall pay into the Local Government Tax Fund 16% of the net
13 revenue realized for the preceding month from the 6.25%
14 general rate on the selling price of tangible personal
15 property.
16 Of the remainder of the moneys received by the Department
17 pursuant to this Act, (a) 1.75% thereof shall be paid into
18 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
19 and on and after July 1, 1989, 3.8% thereof shall be paid
20 into the Build Illinois Fund; provided, however, that if in
21 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
22 as the case may be, of the moneys received by the Department
23 and required to be paid into the Build Illinois Fund pursuant
24 to this Act, Section 9 of the Use Tax Act, Section 9 of the
25 Service Use Tax Act, and Section 9 of the Service Occupation
26 Tax Act, such Acts being hereinafter called the "Tax Acts"
27 and such aggregate of 2.2% or 3.8%, as the case may be, of
28 moneys being hereinafter called the "Tax Act Amount", and (2)
29 the amount transferred to the Build Illinois Fund from the
30 State and Local Sales Tax Reform Fund shall be less than the
31 Annual Specified Amount (as hereinafter defined), an amount
32 equal to the difference shall be immediately paid into the
33 Build Illinois Fund from other moneys received by the
34 Department pursuant to the Tax Acts; the "Annual Specified
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1 Amount" means the amounts specified below for fiscal years
2 1986 through 1993:
3 Fiscal Year Annual Specified Amount
4 1986 $54,800,000
5 1987 $76,650,000
6 1988 $80,480,000
7 1989 $88,510,000
8 1990 $115,330,000
9 1991 $145,470,000
10 1992 $182,730,000
11 1993 $206,520,000;
12 and means the Certified Annual Debt Service Requirement (as
13 defined in Section 13 of the Build Illinois Bond Act) or the
14 Tax Act Amount, whichever is greater, for fiscal year 1994
15 and each fiscal year thereafter; and further provided, that
16 if on the last business day of any month the sum of (1) the
17 Tax Act Amount required to be deposited into the Build
18 Illinois Bond Account in the Build Illinois Fund during such
19 month and (2) the amount transferred to the Build Illinois
20 Fund from the State and Local Sales Tax Reform Fund shall
21 have been less than 1/12 of the Annual Specified Amount, an
22 amount equal to the difference shall be immediately paid into
23 the Build Illinois Fund from other moneys received by the
24 Department pursuant to the Tax Acts; and, further provided,
25 that in no event shall the payments required under the
26 preceding proviso result in aggregate payments into the Build
27 Illinois Fund pursuant to this clause (b) for any fiscal year
28 in excess of the greater of (i) the Tax Act Amount or (ii)
29 the Annual Specified Amount for such fiscal year. The
30 amounts payable into the Build Illinois Fund under clause (b)
31 of the first sentence in this paragraph shall be payable only
32 until such time as the aggregate amount on deposit under each
33 trust indenture securing Bonds issued and outstanding
34 pursuant to the Build Illinois Bond Act is sufficient, taking
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1 into account any future investment income, to fully provide,
2 in accordance with such indenture, for the defeasance of or
3 the payment of the principal of, premium, if any, and
4 interest on the Bonds secured by such indenture and on any
5 Bonds expected to be issued thereafter and all fees and costs
6 payable with respect thereto, all as certified by the
7 Director of the Bureau of the Budget. If on the last
8 business day of any month in which Bonds are outstanding
9 pursuant to the Build Illinois Bond Act, the aggregate of
10 moneys deposited in the Build Illinois Bond Account in the
11 Build Illinois Fund in such month shall be less than the
12 amount required to be transferred in such month from the
13 Build Illinois Bond Account to the Build Illinois Bond
14 Retirement and Interest Fund pursuant to Section 13 of the
15 Build Illinois Bond Act, an amount equal to such deficiency
16 shall be immediately paid from other moneys received by the
17 Department pursuant to the Tax Acts to the Build Illinois
18 Fund; provided, however, that any amounts paid to the Build
19 Illinois Fund in any fiscal year pursuant to this sentence
20 shall be deemed to constitute payments pursuant to clause (b)
21 of the first sentence of this paragraph and shall reduce the
22 amount otherwise payable for such fiscal year pursuant to
23 that clause (b). The moneys received by the Department
24 pursuant to this Act and required to be deposited into the
25 Build Illinois Fund are subject to the pledge, claim and
26 charge set forth in Section 12 of the Build Illinois Bond
27 Act.
28 Subject to payment of amounts into the Build Illinois
29 Fund as provided in the preceding paragraph or in any
30 amendment thereto hereafter enacted, the following specified
31 monthly installment of the amount requested in the
32 certificate of the Chairman of the Metropolitan Pier and
33 Exposition Authority provided under Section 8.25f of the
34 State Finance Act, but not in excess of sums designated as
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1 "Total Deposit", shall be deposited in the aggregate from
2 collections under Section 9 of the Use Tax Act, Section 9 of
3 the Service Use Tax Act, Section 9 of the Service Occupation
4 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
5 into the McCormick Place Expansion Project Fund in the
6 specified fiscal years.
7 Fiscal Year Total Deposit
8 1993 $0
9 1994 53,000,000
10 1995 58,000,000
11 1996 61,000,000
12 1997 64,000,000
13 1998 68,000,000
14 1999 71,000,000
15 2000 75,000,000
16 2001 80,000,000
17 2002 84,000,000
18 2003 89,000,000
19 2004 and 93,000,000
20 each fiscal year
21 thereafter that bonds
22 are outstanding under
23 Section 13.2 of the
24 Metropolitan Pier and
25 Exposition Authority
26 Act.
27 Beginning July 20, 1993 and in each month of each fiscal
28 year thereafter, one-eighth of the amount requested in the
29 certificate of the Chairman of the Metropolitan Pier and
30 Exposition Authority for that fiscal year, less the amount
31 deposited into the McCormick Place Expansion Project Fund by
32 the State Treasurer in the respective month under subsection
33 (g) of Section 13 of the Metropolitan Pier and Exposition
34 Authority Act, plus cumulative deficiencies in the deposits
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1 required under this Section for previous months and years,
2 shall be deposited into the McCormick Place Expansion Project
3 Fund, until the full amount requested for the fiscal year,
4 but not in excess of the amount specified above as "Total
5 Deposit", has been deposited.
6 Subject to payment of amounts into the Build Illinois
7 Fund and the McCormick Place Expansion Project Fund pursuant
8 to the preceding paragraphs or in any amendment thereto
9 hereafter enacted, each month the Department shall pay into
10 the Local Government Distributive Fund 0.4% of the net
11 revenue realized for the preceding month from the 5% general
12 rate or 0.4% of 80% of the net revenue realized for the
13 preceding month from the 6.25% general rate, as the case may
14 be, on the selling price of tangible personal property which
15 amount shall, subject to appropriation, be distributed as
16 provided in Section 2 of the State Revenue Sharing Act. No
17 payments or distributions pursuant to this paragraph shall be
18 made if the tax imposed by this Act on photoprocessing
19 products is declared unconstitutional, or if the proceeds
20 from such tax are unavailable for distribution because of
21 litigation.
22 Subject to payment of amounts into the Build Illinois
23 Fund, the McCormick Place Expansion Project to the preceding
24 paragraphs or in any amendments thereto hereafter enacted,
25 beginning July 1, 1993, the Department shall each month pay
26 into the Illinois Tax Increment Fund 0.27% of 80% of the net
27 revenue realized for the preceding month from the 6.25%
28 general rate on the selling price of tangible personal
29 property.
30 Of the remainder of the moneys received by the Department
31 pursuant to this Act, 75% thereof shall be paid into the
32 State Treasury and 25% shall be reserved in a special account
33 and used only for the transfer to the Common School Fund as
34 part of the monthly transfer from the General Revenue Fund in
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1 accordance with Section 8a of the State Finance Act.
2 The Department may, upon separate written notice to a
3 taxpayer, require the taxpayer to prepare and file with the
4 Department on a form prescribed by the Department within not
5 less than 60 days after receipt of the notice an annual
6 information return for the tax year specified in the notice.
7 Such annual return to the Department shall include a
8 statement of gross receipts as shown by the retailer's last
9 Federal income tax return. If the total receipts of the
10 business as reported in the Federal income tax return do not
11 agree with the gross receipts reported to the Department of
12 Revenue for the same period, the retailer shall attach to his
13 annual return a schedule showing a reconciliation of the 2
14 amounts and the reasons for the difference. The retailer's
15 annual return to the Department shall also disclose the cost
16 of goods sold by the retailer during the year covered by such
17 return, opening and closing inventories of such goods for
18 such year, costs of goods used from stock or taken from stock
19 and given away by the retailer during such year, payroll
20 information of the retailer's business during such year and
21 any additional reasonable information which the Department
22 deems would be helpful in determining the accuracy of the
23 monthly, quarterly or annual returns filed by such retailer
24 as provided for in this Section.
25 If the annual information return required by this Section
26 is not filed when and as required, the taxpayer shall be
27 liable as follows:
28 (i) Until January 1, 1994, the taxpayer shall be
29 liable for a penalty equal to 1/6 of 1% of the tax due
30 from such taxpayer under this Act during the period to be
31 covered by the annual return for each month or fraction
32 of a month until such return is filed as required, the
33 penalty to be assessed and collected in the same manner
34 as any other penalty provided for in this Act.
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1 (ii) On and after January 1, 1994, the taxpayer
2 shall be liable for a penalty as described in Section 3-4
3 of the Uniform Penalty and Interest Act.
4 The chief executive officer, proprietor, owner or highest
5 ranking manager shall sign the annual return to certify the
6 accuracy of the information contained therein. Any person
7 who willfully signs the annual return containing false or
8 inaccurate information shall be guilty of perjury and
9 punished accordingly. The annual return form prescribed by
10 the Department shall include a warning that the person
11 signing the return may be liable for perjury.
12 The provisions of this Section concerning the filing of
13 an annual information return do not apply to a retailer who
14 is not required to file an income tax return with the United
15 States Government.
16 As soon as possible after the first day of each month,
17 upon certification of the Department of Revenue, the
18 Comptroller shall order transferred and the Treasurer shall
19 transfer from the General Revenue Fund to the Motor Fuel Tax
20 Fund an amount equal to 1.7% of 80% of the net revenue
21 realized under this Act for the second preceding month;
22 except that this transfer shall not be made for the months
23 February through June, 1992.
24 Net revenue realized for a month shall be the revenue
25 collected by the State pursuant to this Act, less the amount
26 paid out during that month as refunds to taxpayers for
27 overpayment of liability.
28 For greater simplicity of administration, manufacturers,
29 importers and wholesalers whose products are sold at retail
30 in Illinois by numerous retailers, and who wish to do so, may
31 assume the responsibility for accounting and paying to the
32 Department all tax accruing under this Act with respect to
33 such sales, if the retailers who are affected do not make
34 written objection to the Department to this arrangement.
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1 Any person who promotes, organizes, provides retail
2 selling space for concessionaires or other types of sellers
3 at the Illinois State Fair, DuQuoin State Fair, county fairs,
4 local fairs, art shows, flea markets and similar exhibitions
5 or events, including any transient merchant as defined by
6 Section 2 of the Transient Merchant Act of 1987, is required
7 to file a report with the Department providing the name of
8 the merchant's business, the name of the person or persons
9 engaged in merchant's business, the permanent address and
10 Illinois Retailers Occupation Tax Registration Number of the
11 merchant, the dates and location of the event and other
12 reasonable information that the Department may require. The
13 report must be filed not later than the 20th day of the month
14 next following the month during which the event with retail
15 sales was held. Any person who fails to file a report
16 required by this Section commits a business offense and is
17 subject to a fine not to exceed $250.
18 Any person engaged in the business of selling tangible
19 personal property at retail as a concessionaire or other type
20 of seller at the Illinois State Fair, county fairs, art
21 shows, flea markets and similar exhibitions or events, or any
22 transient merchants, as defined by Section 2 of the Transient
23 Merchant Act of 1987, may be required to make a daily report
24 of the amount of such sales to the Department and to make a
25 daily payment of the full amount of tax due. The Department
26 shall impose this requirement when it finds that there is a
27 significant risk of loss of revenue to the State at such an
28 exhibition or event. Such a finding shall be based on
29 evidence that a substantial number of concessionaires or
30 other sellers who are not residents of Illinois will be
31 engaging in the business of selling tangible personal
32 property at retail at the exhibition or event, or other
33 evidence of a significant risk of loss of revenue to the
34 State. The Department shall notify concessionaires and other
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1 sellers affected by the imposition of this requirement. In
2 the absence of notification by the Department, the
3 concessionaires and other sellers shall file their returns as
4 otherwise required in this Section.
5 (Source: P.A. 88-45; 88-116; 88-194; 88-480; 88-547, eff.
6 6-30-94; 88-660, eff. 9-16-94; 88-669, eff. 11-29-94; 88-670,
7 eff. 12-2-94; 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
8 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
9 (Text of Section after amendment by P.A. 90-491)
10 Sec. 3. Except as provided in this Section, on or before
11 the twentieth day of each calendar month, every person
12 engaged in the business of selling tangible personal property
13 at retail in this State during the preceding calendar month
14 shall file a return with the Department, stating:
15 1. The name of the seller;
16 2. His residence address and the address of his
17 principal place of business and the address of the
18 principal place of business (if that is a different
19 address) from which he engages in the business of selling
20 tangible personal property at retail in this State;
21 3. Total amount of receipts received by him during
22 the preceding calendar month or quarter, as the case may
23 be, from sales of tangible personal property, and from
24 services furnished, by him during such preceding calendar
25 month or quarter;
26 4. Total amount received by him during the
27 preceding calendar month or quarter on charge and time
28 sales of tangible personal property, and from services
29 furnished, by him prior to the month or quarter for which
30 the return is filed;
31 5. Deductions allowed by law;
32 6. Gross receipts which were received by him during
33 the preceding calendar month or quarter and upon the
34 basis of which the tax is imposed;
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1 7. The amount of credit provided in Section 2d of
2 this Act;
3 8. The amount of tax due;
4 9. The signature of the taxpayer; and
5 10. Such other reasonable information as the
6 Department may require.
7 If a taxpayer fails to sign a return within 30 days after
8 the proper notice and demand for signature by the Department,
9 the return shall be considered valid and any amount shown to
10 be due on the return shall be deemed assessed.
11 Each return shall be accompanied by the statement of
12 prepaid tax issued pursuant to Section 2e for which credit is
13 claimed.
14 A retailer may accept a Manufacturer's Purchase Credit
15 certification from a purchaser in satisfaction of Use Tax as
16 provided in Section 3-85 of the Use Tax Act if the purchaser
17 provides the appropriate documentation as required by Section
18 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
19 certification, accepted by a retailer as provided in Section
20 3-85 of the Use Tax Act, may be used by that retailer to
21 satisfy Retailers' Occupation Tax liability in the amount
22 claimed in the certification, not to exceed 6.25% of the
23 receipts subject to tax from a qualifying purchase.
24 The Department may require returns to be filed on a
25 quarterly basis. If so required, a return for each calendar
26 quarter shall be filed on or before the twentieth day of the
27 calendar month following the end of such calendar quarter.
28 The taxpayer shall also file a return with the Department for
29 each of the first two months of each calendar quarter, on or
30 before the twentieth day of the following calendar month,
31 stating:
32 1. The name of the seller;
33 2. The address of the principal place of business
34 from which he engages in the business of selling tangible
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1 personal property at retail in this State;
2 3. The total amount of taxable receipts received by
3 him during the preceding calendar month from sales of
4 tangible personal property by him during such preceding
5 calendar month, including receipts from charge and time
6 sales, but less all deductions allowed by law;
7 4. The amount of credit provided in Section 2d of
8 this Act;
9 5. The amount of tax due; and
10 6. Such other reasonable information as the
11 Department may require.
12 If a total amount of less than $1 is payable, refundable
13 or creditable, such amount shall be disregarded if it is less
14 than 50 cents and shall be increased to $1 if it is 50 cents
15 or more.
16 Beginning October 1, 1993, a taxpayer who has an average
17 monthly tax liability of $150,000 or more shall make all
18 payments required by rules of the Department by electronic
19 funds transfer. Beginning October 1, 1994, a taxpayer who
20 has an average monthly tax liability of $100,000 or more
21 shall make all payments required by rules of the Department
22 by electronic funds transfer. Beginning October 1, 1995, a
23 taxpayer who has an average monthly tax liability of $50,000
24 or more shall make all payments required by rules of the
25 Department by electronic funds transfer. The term "average
26 monthly tax liability" shall be the sum of the taxpayer's
27 liabilities under this Act, and under all other State and
28 local occupation and use tax laws administered by the
29 Department, for the immediately preceding calendar year
30 divided by 12.
31 Before August 1 of each year beginning in 1993, the
32 Department shall notify all taxpayers required to make
33 payments by electronic funds transfer. All taxpayers
34 required to make payments by electronic funds transfer shall
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1 make those payments for a minimum of one year beginning on
2 October 1.
3 Any taxpayer not required to make payments by electronic
4 funds transfer may make payments by electronic funds transfer
5 with the permission of the Department.
6 All taxpayers required to make payment by electronic
7 funds transfer and any taxpayers authorized to voluntarily
8 make payments by electronic funds transfer shall make those
9 payments in the manner authorized by the Department.
10 The Department shall adopt such rules as are necessary to
11 effectuate a program of electronic funds transfer and the
12 requirements of this Section.
13 Any amount which is required to be shown or reported on
14 any return or other document under this Act shall, if such
15 amount is not a whole-dollar amount, be increased to the
16 nearest whole-dollar amount in any case where the fractional
17 part of a dollar is 50 cents or more, and decreased to the
18 nearest whole-dollar amount where the fractional part of a
19 dollar is less than 50 cents.
20 If the retailer is otherwise required to file a monthly
21 return and if the retailer's average monthly tax liability to
22 the Department does not exceed $200, the Department may
23 authorize his returns to be filed on a quarter annual basis,
24 with the return for January, February and March of a given
25 year being due by April 20 of such year; with the return for
26 April, May and June of a given year being due by July 20 of
27 such year; with the return for July, August and September of
28 a given year being due by October 20 of such year, and with
29 the return for October, November and December of a given year
30 being due by January 20 of the following year.
31 If the retailer is otherwise required to file a monthly
32 or quarterly return and if the retailer's average monthly tax
33 liability with the Department does not exceed $50, the
34 Department may authorize his returns to be filed on an annual
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1 basis, with the return for a given year being due by January
2 20 of the following year.
3 Such quarter annual and annual returns, as to form and
4 substance, shall be subject to the same requirements as
5 monthly returns.
6 Notwithstanding any other provision in this Act
7 concerning the time within which a retailer may file his
8 return, in the case of any retailer who ceases to engage in a
9 kind of business which makes him responsible for filing
10 returns under this Act, such retailer shall file a final
11 return under this Act with the Department not more than one
12 month after discontinuing such business.
13 Where the same person has more than one business
14 registered with the Department under separate registrations
15 under this Act, such person may not file each return that is
16 due as a single return covering all such registered
17 businesses, but shall file separate returns for each such
18 registered business.
19 In addition, with respect to motor vehicles, watercraft,
20 aircraft, and trailers that are required to be registered
21 with an agency of this State, every retailer selling this
22 kind of tangible personal property shall file, with the
23 Department, upon a form to be prescribed and supplied by the
24 Department, a separate return for each such item of tangible
25 personal property which the retailer sells, except that
26 where, in the same transaction, a retailer of aircraft,
27 watercraft, motor vehicles or trailers transfers more than
28 one aircraft, watercraft, motor vehicle or trailer to another
29 aircraft, watercraft, motor vehicle retailer or trailer
30 retailer for the purpose of resale, that seller for resale
31 may report the transfer of all aircraft, watercraft, motor
32 vehicles or trailers involved in that transaction to the
33 Department on the same uniform invoice-transaction reporting
34 return form. For purposes of this Section, "watercraft"
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1 means a Class 2, Class 3, or Class 4 watercraft as defined in
2 Section 3-2 of the Boat Registration and Safety Act, a
3 personal watercraft, or any boat equipped with an inboard
4 motor.
5 Any retailer who sells only motor vehicles, watercraft,
6 aircraft, or trailers that are required to be registered with
7 an agency of this State, so that all retailers' occupation
8 tax liability is required to be reported, and is reported, on
9 such transaction reporting returns and who is not otherwise
10 required to file monthly or quarterly returns, need not file
11 monthly or quarterly returns. However, those retailers shall
12 be required to file returns on an annual basis.
13 The transaction reporting return, in the case of motor
14 vehicles or trailers that are required to be registered with
15 an agency of this State, shall be the same document as the
16 Uniform Invoice referred to in Section 5-402 of The Illinois
17 Vehicle Code and must show the name and address of the
18 seller; the name and address of the purchaser; the amount of
19 the selling price including the amount allowed by the
20 retailer for traded-in property, if any; the amount allowed
21 by the retailer for the traded-in tangible personal property,
22 if any, to the extent to which Section 1 of this Act allows
23 an exemption for the value of traded-in property; the balance
24 payable after deducting such trade-in allowance from the
25 total selling price; the amount of tax due from the retailer
26 with respect to such transaction; the amount of tax collected
27 from the purchaser by the retailer on such transaction (or
28 satisfactory evidence that such tax is not due in that
29 particular instance, if that is claimed to be the fact); the
30 place and date of the sale; a sufficient identification of
31 the property sold; such other information as is required in
32 Section 5-402 of The Illinois Vehicle Code, and such other
33 information as the Department may reasonably require.
34 The transaction reporting return in the case of
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1 watercraft or aircraft must show the name and address of the
2 seller; the name and address of the purchaser; the amount of
3 the selling price including the amount allowed by the
4 retailer for traded-in property, if any; the amount allowed
5 by the retailer for the traded-in tangible personal property,
6 if any, to the extent to which Section 1 of this Act allows
7 an exemption for the value of traded-in property; the balance
8 payable after deducting such trade-in allowance from the
9 total selling price; the amount of tax due from the retailer
10 with respect to such transaction; the amount of tax collected
11 from the purchaser by the retailer on such transaction (or
12 satisfactory evidence that such tax is not due in that
13 particular instance, if that is claimed to be the fact); the
14 place and date of the sale, a sufficient identification of
15 the property sold, and such other information as the
16 Department may reasonably require.
17 Such transaction reporting return shall be filed not
18 later than 20 days after the day of delivery of the item that
19 is being sold, but may be filed by the retailer at any time
20 sooner than that if he chooses to do so. The transaction
21 reporting return and tax remittance or proof of exemption
22 from the Illinois use tax may be transmitted to the
23 Department by way of the State agency with which, or State
24 officer with whom the tangible personal property must be
25 titled or registered (if titling or registration is required)
26 if the Department and such agency or State officer determine
27 that this procedure will expedite the processing of
28 applications for title or registration.
29 With each such transaction reporting return, the retailer
30 shall remit the proper amount of tax due (or shall submit
31 satisfactory evidence that the sale is not taxable if that is
32 the case), to the Department or its agents, whereupon the
33 Department shall issue, in the purchaser's name, a use tax
34 receipt (or a certificate of exemption if the Department is
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1 satisfied that the particular sale is tax exempt) which such
2 purchaser may submit to the agency with which, or State
3 officer with whom, he must title or register the tangible
4 personal property that is involved (if titling or
5 registration is required) in support of such purchaser's
6 application for an Illinois certificate or other evidence of
7 title or registration to such tangible personal property.
8 No retailer's failure or refusal to remit tax under this
9 Act precludes a user, who has paid the proper tax to the
10 retailer, from obtaining his certificate of title or other
11 evidence of title or registration (if titling or registration
12 is required) upon satisfying the Department that such user
13 has paid the proper tax (if tax is due) to the retailer. The
14 Department shall adopt appropriate rules to carry out the
15 mandate of this paragraph.
16 If the user who would otherwise pay tax to the retailer
17 wants the transaction reporting return filed and the payment
18 of the tax or proof of exemption made to the Department
19 before the retailer is willing to take these actions and such
20 user has not paid the tax to the retailer, such user may
21 certify to the fact of such delay by the retailer and may
22 (upon the Department being satisfied of the truth of such
23 certification) transmit the information required by the
24 transaction reporting return and the remittance for tax or
25 proof of exemption directly to the Department and obtain his
26 tax receipt or exemption determination, in which event the
27 transaction reporting return and tax remittance (if a tax
28 payment was required) shall be credited by the Department to
29 the proper retailer's account with the Department, but
30 without the 2.1% or 1.75% discount provided for in this
31 Section being allowed. When the user pays the tax directly
32 to the Department, he shall pay the tax in the same amount
33 and in the same form in which it would be remitted if the tax
34 had been remitted to the Department by the retailer.
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1 Refunds made by the seller during the preceding return
2 period to purchasers, on account of tangible personal
3 property returned to the seller, shall be allowed as a
4 deduction under subdivision 5 of his monthly or quarterly
5 return, as the case may be, in case the seller had
6 theretofore included the receipts from the sale of such
7 tangible personal property in a return filed by him and had
8 paid the tax imposed by this Act with respect to such
9 receipts.
10 Where the seller is a corporation, the return filed on
11 behalf of such corporation shall be signed by the president,
12 vice-president, secretary or treasurer or by the properly
13 accredited agent of such corporation.
14 Where the seller is a limited liability company, the
15 return filed on behalf of the limited liability company shall
16 be signed by a manager, member, or properly accredited agent
17 of the limited liability company.
18 Except as provided in this Section, the retailer filing
19 the return under this Section shall, at the time of filing
20 such return, pay to the Department the amount of tax imposed
21 by this Act less a discount of 2.1% prior to January 1, 1990
22 and 1.75% on and after January 1, 1990, or $5 per calendar
23 year, whichever is greater, which is allowed to reimburse the
24 retailer for the expenses incurred in keeping records,
25 preparing and filing returns, remitting the tax and supplying
26 data to the Department on request. Any prepayment made
27 pursuant to Section 2d of this Act shall be included in the
28 amount on which such 2.1% or 1.75% discount is computed. In
29 the case of retailers who report and pay the tax on a
30 transaction by transaction basis, as provided in this
31 Section, such discount shall be taken with each such tax
32 remittance instead of when such retailer files his periodic
33 return.
34 If the taxpayer's average monthly tax liability to the
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1 Department under this Act, the Use Tax Act, the Service
2 Occupation Tax Act, and the Service Use Tax Act, excluding
3 any liability for prepaid sales tax to be remitted in
4 accordance with Section 2d of this Act, was $10,000 or more
5 during the preceding 4 complete calendar quarters, he shall
6 file a return with the Department each month by the 20th day
7 of the month next following the month during which such tax
8 liability is incurred and shall make payments to the
9 Department on or before the 7th, 15th, 22nd and last day of
10 the month during which such liability is incurred. If the
11 month during which such tax liability is incurred began prior
12 to January 1, 1985, each payment shall be in an amount equal
13 to 1/4 of the taxpayer's actual liability for the month or an
14 amount set by the Department not to exceed 1/4 of the average
15 monthly liability of the taxpayer to the Department for the
16 preceding 4 complete calendar quarters (excluding the month
17 of highest liability and the month of lowest liability in
18 such 4 quarter period). If the month during which such tax
19 liability is incurred begins on or after January 1, 1985 and
20 prior to January 1, 1987, each payment shall be in an amount
21 equal to 22.5% of the taxpayer's actual liability for the
22 month or 27.5% of the taxpayer's liability for the same
23 calendar month of the preceding year. If the month during
24 which such tax liability is incurred begins on or after
25 January 1, 1987 and prior to January 1, 1988, each payment
26 shall be in an amount equal to 22.5% of the taxpayer's actual
27 liability for the month or 26.25% of the taxpayer's liability
28 for the same calendar month of the preceding year. If the
29 month during which such tax liability is incurred begins on
30 or after January 1, 1988, and prior to January 1, 1989, or
31 begins on or after January 1, 1996, each payment shall be in
32 an amount equal to 22.5% of the taxpayer's actual liability
33 for the month or 25% of the taxpayer's liability for the same
34 calendar month of the preceding year. If the month during
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1 which such tax liability is incurred begins on or after
2 January 1, 1989, and prior to January 1, 1996, each payment
3 shall be in an amount equal to 22.5% of the taxpayer's actual
4 liability for the month or 25% of the taxpayer's liability
5 for the same calendar month of the preceding year or 100% of
6 the taxpayer's actual liability for the quarter monthly
7 reporting period. The amount of such quarter monthly
8 payments shall be credited against the final tax liability of
9 the taxpayer's return for that month. Once applicable, the
10 requirement of the making of quarter monthly payments to the
11 Department by taxpayers having an average monthly tax
12 liability of $10,000 or more as determined in the manner
13 provided above shall continue until such taxpayer's average
14 monthly liability to the Department during the preceding 4
15 complete calendar quarters (excluding the month of highest
16 liability and the month of lowest liability) is less than
17 $9,000, or until such taxpayer's average monthly liability to
18 the Department as computed for each calendar quarter of the 4
19 preceding complete calendar quarter period is less than
20 $10,000. However, if a taxpayer can show the Department that
21 a substantial change in the taxpayer's business has occurred
22 which causes the taxpayer to anticipate that his average
23 monthly tax liability for the reasonably foreseeable future
24 will fall below $10,000, then such taxpayer may petition the
25 Department for a change in such taxpayer's reporting status.
26 The Department shall change such taxpayer's reporting status
27 unless it finds that such change is seasonal in nature and
28 not likely to be long term. If any such quarter monthly
29 payment is not paid at the time or in the amount required by
30 this Section, then the taxpayer shall be liable for penalties
31 and interest on the difference between the minimum amount due
32 as a payment and the amount of such quarter monthly payment
33 actually and timely paid, except insofar as the taxpayer has
34 previously made payments for that month to the Department in
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1 excess of the minimum payments previously due as provided in
2 this Section. The Department shall make reasonable rules and
3 regulations to govern the quarter monthly payment amount and
4 quarter monthly payment dates for taxpayers who file on other
5 than a calendar monthly basis.
6 Without regard to whether a taxpayer is required to make
7 quarter monthly payments as specified above, any taxpayer who
8 is required by Section 2d of this Act to collect and remit
9 prepaid taxes and has collected prepaid taxes which average
10 in excess of $25,000 per month during the preceding 2
11 complete calendar quarters, shall file a return with the
12 Department as required by Section 2f and shall make payments
13 to the Department on or before the 7th, 15th, 22nd and last
14 day of the month during which such liability is incurred. If
15 the month during which such tax liability is incurred began
16 prior to the effective date of this amendatory Act of 1985,
17 each payment shall be in an amount not less than 22.5% of the
18 taxpayer's actual liability under Section 2d. If the month
19 during which such tax liability is incurred begins on or
20 after January 1, 1986, each payment shall be in an amount
21 equal to 22.5% of the taxpayer's actual liability for the
22 month or 27.5% of the taxpayer's liability for the same
23 calendar month of the preceding calendar year. If the month
24 during which such tax liability is incurred begins on or
25 after January 1, 1987, each payment shall be in an amount
26 equal to 22.5% of the taxpayer's actual liability for the
27 month or 26.25% of the taxpayer's liability for the same
28 calendar month of the preceding year. The amount of such
29 quarter monthly payments shall be credited against the final
30 tax liability of the taxpayer's return for that month filed
31 under this Section or Section 2f, as the case may be. Once
32 applicable, the requirement of the making of quarter monthly
33 payments to the Department pursuant to this paragraph shall
34 continue until such taxpayer's average monthly prepaid tax
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1 collections during the preceding 2 complete calendar quarters
2 is $25,000 or less. If any such quarter monthly payment is
3 not paid at the time or in the amount required, the taxpayer
4 shall be liable for penalties and interest on such
5 difference, except insofar as the taxpayer has previously
6 made payments for that month in excess of the minimum
7 payments previously due.
8 If any payment provided for in this Section exceeds the
9 taxpayer's liabilities under this Act, the Use Tax Act, the
10 Service Occupation Tax Act and the Service Use Tax Act, as
11 shown on an original monthly return, the Department shall, if
12 requested by the taxpayer, issue to the taxpayer a credit
13 memorandum no later than 30 days after the date of payment.
14 The credit evidenced by such credit memorandum may be
15 assigned by the taxpayer to a similar taxpayer under this
16 Act, the Use Tax Act, the Service Occupation Tax Act or the
17 Service Use Tax Act, in accordance with reasonable rules and
18 regulations to be prescribed by the Department. If no such
19 request is made, the taxpayer may credit such excess payment
20 against tax liability subsequently to be remitted to the
21 Department under this Act, the Use Tax Act, the Service
22 Occupation Tax Act or the Service Use Tax Act, in accordance
23 with reasonable rules and regulations prescribed by the
24 Department. If the Department subsequently determined that
25 all or any part of the credit taken was not actually due to
26 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
27 shall be reduced by 2.1% or 1.75% of the difference between
28 the credit taken and that actually due, and that taxpayer
29 shall be liable for penalties and interest on such
30 difference.
31 If a retailer of motor fuel is entitled to a credit under
32 Section 2d of this Act which exceeds the taxpayer's liability
33 to the Department under this Act for the month which the
34 taxpayer is filing a return, the Department shall issue the
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1 taxpayer a credit memorandum for the excess.
2 Beginning January 1, 1990, each month the Department
3 shall pay into the Local Government Tax Fund, a special fund
4 in the State treasury which is hereby created, the net
5 revenue realized for the preceding month from the 1% tax on
6 sales of food for human consumption which is to be consumed
7 off the premises where it is sold (other than alcoholic
8 beverages, soft drinks and food which has been prepared for
9 immediate consumption) and prescription and nonprescription
10 medicines, drugs, medical appliances and insulin, urine
11 testing materials, syringes and needles used by diabetics.
12 Beginning January 1, 1990, each month the Department
13 shall pay into the County and Mass Transit District Fund, a
14 special fund in the State treasury which is hereby created,
15 4% of the net revenue realized for the preceding month from
16 the 6.25% general rate.
17 Beginning January 1, 1990, each month the Department
18 shall pay into the Local Government Tax Fund 16% of the net
19 revenue realized for the preceding month from the 6.25%
20 general rate on the selling price of tangible personal
21 property.
22 Of the remainder of the moneys received by the Department
23 pursuant to this Act and the moneys received by the
24 Department from the 80% of the 8.25% occupation tax imposed
25 in Section 10 of the Qualified Technological Equipment
26 Leasing Occupation and Use Tax Act, (a) 1.75% thereof shall
27 be paid into the Build Illinois Fund and (b) prior to July 1,
28 1989, 2.2% and on and after July 1, 1989, 3.8% thereof shall
29 be paid into the Build Illinois Fund; provided, however, that
30 if in any fiscal year the sum of (1) the aggregate of 2.2% or
31 3.8%, as the case may be, of the moneys received by the
32 Department and required to be paid into the Build Illinois
33 Fund pursuant to this Act, Section 9 of the Use Tax Act,
34 Section 9 of the Service Use Tax Act, and Section 9 of the
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1 Service Occupation Tax Act, such Acts being hereinafter
2 called the "Tax Acts" and such aggregate of 2.2% or 3.8%, as
3 the case may be, of moneys being hereinafter called the "Tax
4 Act Amount", and (2) the amount transferred to the Build
5 Illinois Fund from the State and Local Sales Tax Reform Fund
6 shall be less than the Annual Specified Amount (as
7 hereinafter defined), an amount equal to the difference shall
8 be immediately paid into the Build Illinois Fund from other
9 moneys received by the Department pursuant to the Tax Acts;
10 the "Annual Specified Amount" means the amounts specified
11 below for fiscal years 1986 through 1993:
12 Fiscal Year Annual Specified Amount
13 1986 $54,800,000
14 1987 $76,650,000
15 1988 $80,480,000
16 1989 $88,510,000
17 1990 $115,330,000
18 1991 $145,470,000
19 1992 $182,730,000
20 1993 $206,520,000;
21 and means the Certified Annual Debt Service Requirement (as
22 defined in Section 13 of the Build Illinois Bond Act) or the
23 Tax Act Amount, whichever is greater, for fiscal year 1994
24 and each fiscal year thereafter; and further provided, that
25 if on the last business day of any month the sum of (1) the
26 Tax Act Amount required to be deposited into the Build
27 Illinois Bond Account in the Build Illinois Fund during such
28 month and (2) the amount transferred to the Build Illinois
29 Fund from the State and Local Sales Tax Reform Fund shall
30 have been less than 1/12 of the Annual Specified Amount, an
31 amount equal to the difference shall be immediately paid into
32 the Build Illinois Fund from other moneys received by the
33 Department pursuant to the Tax Acts; and, further provided,
34 that in no event shall the payments required under the
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1 preceding proviso result in aggregate payments into the Build
2 Illinois Fund pursuant to this clause (b) for any fiscal year
3 in excess of the greater of (i) the Tax Act Amount or (ii)
4 the Annual Specified Amount for such fiscal year. The
5 amounts payable into the Build Illinois Fund under clause (b)
6 of the first sentence in this paragraph shall be payable only
7 until such time as the aggregate amount on deposit under each
8 trust indenture securing Bonds issued and outstanding
9 pursuant to the Build Illinois Bond Act is sufficient, taking
10 into account any future investment income, to fully provide,
11 in accordance with such indenture, for the defeasance of or
12 the payment of the principal of, premium, if any, and
13 interest on the Bonds secured by such indenture and on any
14 Bonds expected to be issued thereafter and all fees and costs
15 payable with respect thereto, all as certified by the
16 Director of the Bureau of the Budget. If on the last
17 business day of any month in which Bonds are outstanding
18 pursuant to the Build Illinois Bond Act, the aggregate of
19 moneys deposited in the Build Illinois Bond Account in the
20 Build Illinois Fund in such month shall be less than the
21 amount required to be transferred in such month from the
22 Build Illinois Bond Account to the Build Illinois Bond
23 Retirement and Interest Fund pursuant to Section 13 of the
24 Build Illinois Bond Act, an amount equal to such deficiency
25 shall be immediately paid from other moneys received by the
26 Department pursuant to the Tax Acts to the Build Illinois
27 Fund; provided, however, that any amounts paid to the Build
28 Illinois Fund in any fiscal year pursuant to this sentence
29 shall be deemed to constitute payments pursuant to clause (b)
30 of the first sentence of this paragraph and shall reduce the
31 amount otherwise payable for such fiscal year pursuant to
32 that clause (b). The moneys received by the Department
33 pursuant to this Act and required to be deposited into the
34 Build Illinois Fund are subject to the pledge, claim and
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1 charge set forth in Section 12 of the Build Illinois Bond
2 Act.
3 Subject to payment of amounts into the Build Illinois
4 Fund as provided in the preceding paragraph or in any
5 amendment thereto hereafter enacted, the following specified
6 monthly installment of the amount requested in the
7 certificate of the Chairman of the Metropolitan Pier and
8 Exposition Authority provided under Section 8.25f of the
9 State Finance Act, but not in excess of sums designated as
10 "Total Deposit", shall be deposited in the aggregate from
11 collections under Section 9 of the Use Tax Act, Section 9 of
12 the Service Use Tax Act, Section 9 of the Service Occupation
13 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
14 into the McCormick Place Expansion Project Fund in the
15 specified fiscal years.
16 Fiscal Year Total Deposit
17 1993 $0
18 1994 53,000,000
19 1995 58,000,000
20 1996 61,000,000
21 1997 64,000,000
22 1998 68,000,000
23 1999 71,000,000
24 2000 75,000,000
25 2001 80,000,000
26 2002 84,000,000
27 2003 89,000,000
28 2004 and 93,000,000
29 each fiscal year
30 thereafter that bonds
31 are outstanding under
32 Section 13.2 of the
33 Metropolitan Pier and
34 Exposition Authority
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1 Act.
2 Beginning July 20, 1993 and in each month of each fiscal
3 year thereafter, one-eighth of the amount requested in the
4 certificate of the Chairman of the Metropolitan Pier and
5 Exposition Authority for that fiscal year, less the amount
6 deposited into the McCormick Place Expansion Project Fund by
7 the State Treasurer in the respective month under subsection
8 (g) of Section 13 of the Metropolitan Pier and Exposition
9 Authority Act, plus cumulative deficiencies in the deposits
10 required under this Section for previous months and years,
11 shall be deposited into the McCormick Place Expansion Project
12 Fund, until the full amount requested for the fiscal year,
13 but not in excess of the amount specified above as "Total
14 Deposit", has been deposited.
15 Subject to payment of amounts into the Build Illinois
16 Fund and the McCormick Place Expansion Project Fund pursuant
17 to the preceding paragraphs or in any amendment thereto
18 hereafter enacted, each month the Department shall pay into
19 the Local Government Distributive Fund 0.4% of the net
20 revenue realized for the preceding month from the 5% general
21 rate or 0.4% of 80% of the net revenue realized for the
22 preceding month from the 6.25% general rate, as the case may
23 be, on the selling price of tangible personal property which
24 amount shall, subject to appropriation, be distributed as
25 provided in Section 2 of the State Revenue Sharing Act. No
26 payments or distributions pursuant to this paragraph shall be
27 made if the tax imposed by this Act on photoprocessing
28 products is declared unconstitutional, or if the proceeds
29 from such tax are unavailable for distribution because of
30 litigation.
31 Subject to payment of amounts into the Build Illinois
32 Fund, the McCormick Place Expansion Project to the preceding
33 paragraphs or in any amendments thereto hereafter enacted,
34 beginning July 1, 1993, the Department shall each month pay
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1 into the Illinois Tax Increment Fund 0.27% of 80% of the net
2 revenue realized for the preceding month from the 6.25%
3 general rate on the selling price of tangible personal
4 property.
5 Of the remainder of the moneys received by the Department
6 pursuant to this Act, 75% thereof shall be paid into the
7 State Treasury and 25% shall be reserved in a special account
8 and used only for the transfer to the Common School Fund as
9 part of the monthly transfer from the General Revenue Fund in
10 accordance with Section 8a of the State Finance Act.
11 The Department may, upon separate written notice to a
12 taxpayer, require the taxpayer to prepare and file with the
13 Department on a form prescribed by the Department within not
14 less than 60 days after receipt of the notice an annual
15 information return for the tax year specified in the notice.
16 Such annual return to the Department shall include a
17 statement of gross receipts as shown by the retailer's last
18 Federal income tax return. If the total receipts of the
19 business as reported in the Federal income tax return do not
20 agree with the gross receipts reported to the Department of
21 Revenue for the same period, the retailer shall attach to his
22 annual return a schedule showing a reconciliation of the 2
23 amounts and the reasons for the difference. The retailer's
24 annual return to the Department shall also disclose the cost
25 of goods sold by the retailer during the year covered by such
26 return, opening and closing inventories of such goods for
27 such year, costs of goods used from stock or taken from stock
28 and given away by the retailer during such year, payroll
29 information of the retailer's business during such year and
30 any additional reasonable information which the Department
31 deems would be helpful in determining the accuracy of the
32 monthly, quarterly or annual returns filed by such retailer
33 as provided for in this Section.
34 If the annual information return required by this Section
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1 is not filed when and as required, the taxpayer shall be
2 liable as follows:
3 (i) Until January 1, 1994, the taxpayer shall be
4 liable for a penalty equal to 1/6 of 1% of the tax due
5 from such taxpayer under this Act during the period to be
6 covered by the annual return for each month or fraction
7 of a month until such return is filed as required, the
8 penalty to be assessed and collected in the same manner
9 as any other penalty provided for in this Act.
10 (ii) On and after January 1, 1994, the taxpayer
11 shall be liable for a penalty as described in Section 3-4
12 of the Uniform Penalty and Interest Act.
13 The chief executive officer, proprietor, owner or highest
14 ranking manager shall sign the annual return to certify the
15 accuracy of the information contained therein. Any person
16 who willfully signs the annual return containing false or
17 inaccurate information shall be guilty of perjury and
18 punished accordingly. The annual return form prescribed by
19 the Department shall include a warning that the person
20 signing the return may be liable for perjury.
21 The provisions of this Section concerning the filing of
22 an annual information return do not apply to a retailer who
23 is not required to file an income tax return with the United
24 States Government.
25 As soon as possible after the first day of each month,
26 upon certification of the Department of Revenue, the
27 Comptroller shall order transferred and the Treasurer shall
28 transfer from the General Revenue Fund to the Motor Fuel Tax
29 Fund an amount equal to 1.7% of 80% of the net revenue
30 realized under this Act for the second preceding month;
31 except that this transfer shall not be made for the months
32 February through June, 1992.
33 Net revenue realized for a month shall be the revenue
34 collected by the State pursuant to this Act, less the amount
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1 paid out during that month as refunds to taxpayers for
2 overpayment of liability.
3 For greater simplicity of administration, manufacturers,
4 importers and wholesalers whose products are sold at retail
5 in Illinois by numerous retailers, and who wish to do so, may
6 assume the responsibility for accounting and paying to the
7 Department all tax accruing under this Act with respect to
8 such sales, if the retailers who are affected do not make
9 written objection to the Department to this arrangement.
10 Any person who promotes, organizes, provides retail
11 selling space for concessionaires or other types of sellers
12 at the Illinois State Fair, DuQuoin State Fair, county fairs,
13 local fairs, art shows, flea markets and similar exhibitions
14 or events, including any transient merchant as defined by
15 Section 2 of the Transient Merchant Act of 1987, is required
16 to file a report with the Department providing the name of
17 the merchant's business, the name of the person or persons
18 engaged in merchant's business, the permanent address and
19 Illinois Retailers Occupation Tax Registration Number of the
20 merchant, the dates and location of the event and other
21 reasonable information that the Department may require. The
22 report must be filed not later than the 20th day of the month
23 next following the month during which the event with retail
24 sales was held. Any person who fails to file a report
25 required by this Section commits a business offense and is
26 subject to a fine not to exceed $250.
27 Any person engaged in the business of selling tangible
28 personal property at retail as a concessionaire or other type
29 of seller at the Illinois State Fair, county fairs, art
30 shows, flea markets and similar exhibitions or events, or any
31 transient merchants, as defined by Section 2 of the Transient
32 Merchant Act of 1987, may be required to make a daily report
33 of the amount of such sales to the Department and to make a
34 daily payment of the full amount of tax due. The Department
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1 shall impose this requirement when it finds that there is a
2 significant risk of loss of revenue to the State at such an
3 exhibition or event. Such a finding shall be based on
4 evidence that a substantial number of concessionaires or
5 other sellers who are not residents of Illinois will be
6 engaging in the business of selling tangible personal
7 property at retail at the exhibition or event, or other
8 evidence of a significant risk of loss of revenue to the
9 State. The Department shall notify concessionaires and other
10 sellers affected by the imposition of this requirement. In
11 the absence of notification by the Department, the
12 concessionaires and other sellers shall file their returns as
13 otherwise required in this Section.
14 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
15 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff.
16 1-1-99.)
17 (35 ILCS 120/3.5 new)
18 Sec. 3.5. Refund; leaseback transaction. A purchaser of
19 qualified technological equipment, as defined in Section 5 of
20 the Qualified Technological Equipment Renting Occupation and
21 Use Tax Act, may obtain a refund of all tax paid to a seller
22 under this Act or any other tax administered by the
23 Department if the purchaser sells the property to a rentor
24 under a bona fide sale and leaseback transaction (to such
25 purchaser) within 90 days of the first functional use of the
26 property. The purchaser shall request the refund from the
27 seller to whom he or she has paid the tax in the same manner
28 and subject to the same requirements as other refunds
29 provided in Section 3 of this Act. For purposes of this
30 Section, the first functional use of property shall be the
31 use for which the property is intended, which shall, in the
32 absence of other evidence, be presumed to be the date of
33 deliver of the property.
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1 Section 95. No acceleration or delay. Where this Act
2 makes changes in a statute that is represented in this Act by
3 text that is not yet or no longer in effect (for example, a
4 Section represented by multiple versions), the use of that
5 text does not accelerate or delay the taking effect of (i)
6 the changes made by this Act or (ii) provisions derived from
7 any other Public Act.
8 Section 99. Effective date. This Act takes effect
9 January 1, 1999.".