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90_HB1121enr
35 ILCS 200/21-260
Amends the Property Tax Code. Provides that mineral
rights offered for sale at a scavenger tax sale and not sold
or confirmed after being offered for sale for 10 consecutive
years shall revert to the surface owner. Requires the county
treasurer to deliver a notice of the reversion to the party
in whose name the taxes on the mineral rights are last
assessed. Provides that the Department shall prescribe forms
or provide suitable forms for the notification. Effective
immediately.
LRB9003803KDsbA
HB1121 Enrolled LRB9003803KDsbA
1 AN ACT concerning taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Automobile Leasing Occupation and Use Tax Act.
6 Section 5. Definitions. As used in this Act:
7 "Automobile" means any motor vehicle of the first
8 division, a motor vehicle of the second division which is a
9 self-contained motor vehicle designed or permanently
10 converted to provide living quarters for recreational,
11 camping or travel use, with direct walk through access to the
12 living quarters from the driver's seat, or a motor vehicle of
13 the second division which is of the van configuration
14 designed for the transportation of not less than 7 nor more
15 than 16 passengers, as defined in Section 1-146 of the
16 Illinois Vehicle Code.
17 "Department" means the Department of Revenue.
18 "Person" means any natural individual, firm, partnership,
19 association, joint stock company, joint venture, 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 an automobile to a user for a valuable
25 consideration for a period of more than 1 year.
26 "Lessor" means any person, firm, corporation, or
27 association engaged in the business of leasing automobiles to
28 users. For this purpose, the objective of making a profit is
29 not necessary to make the leasing activity a business.
30 "Lessee" means any user to whom the possession, or the
31 right to possession, of an automobile is transferred for a
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1 valuable consideration for a period more than one year which
2 is paid by such lessee or by someone else.
3 "Gross receipts" means the total leasing price for the
4 lease of an automobile. In the case of lease transactions in
5 which the consideration is paid to the lessor on an
6 installment basis, the amounts of such payments shall be
7 included by the lessor in gross receipts only as and when
8 payments are received by the lessor.
9 "Leasing price" means the consideration for leasing an
10 automobile valued in money, whether received in money or
11 otherwise, including cash, credits, property and services,
12 and shall be determined without any deduction on account of
13 the cost of the property leased, the cost of materials used,
14 labor or service cost or any other expense whatsoever, but
15 does not include charges that are added by lessors on account
16 of the lessor's tax liability under this Act, or on account
17 of the lessor's duty to collect, from the lessee, the tax
18 that is imposed by Section 20 of this Act. The phrase
19 "leasing price" does not include the residual value of the
20 automobile or any separately stated charge on the lessee's
21 bill for insurance.
22 "Maintaining a place of business in this State" means
23 having or maintaining within this State, directly or by a
24 subsidiary, an office, repair facilities, distribution house,
25 sales house, warehouse, or other place of business, or any
26 agent, or other representative, operating within this State,
27 irrespective of whether the place of business or agent or
28 other representative is located here permanently or
29 temporarily.
30 "Residual value" means the estimated value of the vehicle
31 at the end of the scheduled lease term, used by the lessor in
32 determining the base lease payment, as established by the
33 lessor at the time the lessor and lessee enter into the
34 lease.
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1 Section 10. Imposition of occupation tax. A tax is
2 imposed upon persons engaged in this State in the business of
3 leasing automobiles in Illinois at the rate of 5% of the
4 gross receipts received from such business. The tax herein
5 imposed does not apply to the leasing of automobiles to any
6 governmental body, nor to any corporation, society,
7 association, foundation or institution organized and operated
8 exclusively for charitable, religious or educational
9 purposes, nor to any not for profit corporation, society,
10 association, foundation, institution or organization which
11 has no compensated officers or employees and which is
12 organized and operated primarily for the recreation of
13 persons 55 years of age or older. Beginning July 1, 1998
14 through June 30, 1999, each month the Department shall pay
15 into the Tax Compliance and Administration Fund 3% of the
16 revenue realized from the tax imposed by this Section, and
17 the remaining such revenue shall be paid as provided for in
18 Section 3 of the Retailers' Occupation Tax Act. Beginning
19 July 1, 1999 and each month thereafter, the Department shall
20 pay into the Tax Compliance and Administration Fund 1% of the
21 revenue realized from the tax imposed by this Section, and
22 the remaining such revenue shall be paid as provided for in
23 Section 3 of the Retailers' Occupation Tax Act.
24 The Department shall have full power to administer and
25 enforce this Section, to collect all taxes and penalties due
26 hereunder, to dispose of taxes and penalties so collected in
27 the manner hereinafter provided, and to determine all rights
28 to credit memoranda, arising on account of the erroneous
29 payment of tax or penalty hereunder. In the administration
30 of, and compliance with, this Section, the Department and
31 persons who are subject to this Section shall have the same
32 rights, remedies, privileges, immunities, powers and duties,
33 and be subject to the same conditions, restrictions,
34 limitation, penalties and definitions of terms, and employ
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1 the same modes of procedure, as are prescribed in Sections 1,
2 1a, 2 through 2-65 (in respect to all provisions therein
3 other than the State rate of tax), 2a, 2b, 2c, 3 (except
4 provisions relating to transaction returns and quarter
5 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j,
6 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12 and 13 of the
7 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
8 Penalty and Interest Act as fully as if those provisions were
9 set forth herein. For purposes of this Section, references
10 in such incorporated Sections of the Retailers' Occupation
11 Tax Act to retailers, sellers or persons engaged in the
12 business of selling tangible personal property means persons
13 engaged in the leasing of automobiles under leases subject to
14 this Act.
15 Section 15. Registration. Every person engaged in this
16 State in the business of leasing automobiles shall apply to
17 the Department (upon a form prescribed and furnished by the
18 Department) for a certificate of registration under this Act.
19 The certificate of registration that is issued by the
20 Department to a retailer under the Retailers' Occupation Tax
21 Act shall permit such lessor to engage in a business that is
22 taxable under this Section without registering separately
23 with the Department.
24 Section 20. Imposition of use tax. A tax is imposed upon
25 the privilege of using in this State, an automobile which is
26 leased from a lessor. Such tax is at the rate of 5% of the
27 leasing price of such automobile paid to the lessor under any
28 lease agreement. The tax herein imposed shall not apply to
29 any governmental body, nor to any corporation, society,
30 association, foundation or institution, organized and
31 operated exclusively for charitable, religious or educational
32 purposes, nor to any not for profit corporation, society,
HB1121 Enrolled -5- LRB9003803KDsbA
1 association, foundation, institution or organization which
2 has no compensated officers or employees and which is
3 organized and operated primarily for the recreation of
4 persons 55 years of age or older, when using tangible
5 personal property as a lessee. Beginning July 1, 1998
6 through June 30, 1999, each month the Department shall pay
7 into the Tax Compliance and Administration Fund 3% of the
8 revenue realized from the tax imposed by this Section, and
9 the remaining such revenue shall be paid as provided for in
10 Section 9 of the Use Tax Act. Beginning July 1, 1999 and
11 each month thereafter, the Department shall pay into the Tax
12 Compliance and Administration Fund 1% of the revenue realized
13 from the tax imposed by this Section, and the remaining such
14 revenue shall be paid as provided for in Section 9 of the Use
15 Tax Act.
16 The Department shall have full power to administer and
17 enforce this Section; to collect all taxes, penalties and
18 interest due hereunder; to dispose of taxes, penalties and
19 interest so collected in the manner hereinafter provided, and
20 to determine all rights to credit memoranda or refunds
21 arising on account of the erroneous payment of tax, penalty
22 or interest hereunder. In the administration of, and
23 compliance with, this Section, the Department and persons who
24 are subject to this Section shall have the same rights,
25 remedies, privileges, immunities, powers and duties, and be
26 subject to the same conditions, restrictions, limitations,
27 penalties and definitions of terms, and employ the same modes
28 of procedure, as are prescribed in Sections 2, 3 through
29 3-80, 4, 6, 7, 8, 9 (except provisions relating to
30 transaction returns and quarter monthly payments), 10, 11,
31 12, 12a, 12b, 13, 14, 15, 19, 20, 21 and 22 of the Use Tax
32 Act, and are not inconsistent with this Section, as fully as
33 if those provisions were set forth herein. For purposes of
34 this Section, references in such incorporated Sections of the
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1 Use Tax Act to users or purchasers means lessees of
2 automobiles under leases subject to this Act.
3 Section 25. Use tax collected. The use tax imposed by
4 Section 20 shall be collected from the lessee and remitted to
5 the Department by a lessor maintaining a place of business in
6 this State or who titles or registers an automobile with an
7 agency of this State's government that is used for leasing in
8 this State.
9 The use tax imposed by Section 20 and not paid to a
10 lessor pursuant to the preceding paragraph of this Section
11 shall be paid to the Department directly by any person using
12 such automobile within this State.
13 Lessors shall collect the tax from lessees by adding the
14 tax to the leasing price of the automobile, when leased for
15 use, in the manner prescribed by the Department. The
16 Department shall have the power to adopt and promulgate
17 reasonable rules and regulations for the adding of such tax
18 by lessors to leasing prices by prescribing bracket systems
19 for the purpose of enabling such lessors to add and collect,
20 as far as practicable, the amount of such tax.
21 The tax imposed by this Section shall, when collected, be
22 stated as a distinct item on the customer's bill, separate
23 and apart from the leasing price of the automobile.
24 Section 30. Severability clause. If any clause,
25 sentence, Section, provision or part thereof of this Act or
26 the application thereof to any person or circumstance shall
27 be adjudged to be unconstitutional, the remainder of this Act
28 or its application to persons or circumstances other than
29 those to which it is held invalid, shall not be affected
30 thereby. In particular, if any provision which exempts or
31 has the effect of exempting some class of users or some kind
32 of use from the tax imposed by this Act should be held to
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1 constitute or to result in an invalid classification or to be
2 unconstitutional for some other reason, such provision shall
3 be deemed to be severable with the remainder of this Act
4 without said provision being held constitutional.
5 Section 80. The State Finance Act is amended by changing
6 Sections 6z-18 and 6z-20 as follows:
7 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
8 Sec. 6z-18. A portion of the money paid into the Local
9 Government Tax Fund from sales of food for human consumption
10 which is to be consumed off the premises where it is sold
11 (other than alcoholic beverages, soft drinks and food which
12 has been prepared for immediate consumption) and prescription
13 and nonprescription medicines, drugs, medical appliances and
14 insulin, urine testing materials, syringes and needles used
15 by diabetics, which occurred in municipalities, shall be
16 distributed to each municipality based upon the sales which
17 occurred in that municipality. The remainder shall be
18 distributed to each county based upon the sales which
19 occurred in the unincorporated area of that county.
20 A portion of the money paid into the Local Government Tax
21 Fund from the 6.25% general use tax rate on the selling price
22 of tangible personal property which is purchased outside
23 Illinois at retail from a retailer and which is titled or
24 registered by any agency of this State's government shall be
25 distributed to municipalities as provided in this paragraph.
26 Each municipality shall receive the amount attributable to
27 sales for which Illinois addresses for titling or
28 registration purposes are given as being in such
29 municipality. The remainder of the money paid into the Local
30 Government Tax Fund from such sales shall be distributed to
31 counties. Each county shall receive the amount attributable
32 to sales for which Illinois addresses for titling or
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1 registration purposes are given as being located in the
2 unincorporated area of such county.
3 A portion of the money paid into the Local Government Tax
4 Fund from the 1.25% rate imposed under the Use Tax Act upon
5 the selling price of any motor vehicle that is purchased
6 outside of Illinois at retail by a lessor for purposes of
7 leasing under a lease subject to the Automobile Leasing
8 Occupation and Use Tax Act which is titled or registered by
9 any agency of this State's government shall be distributed as
10 provided in this paragraph, less 3% for the first 12 monthly
11 distributions and 1% for each monthly distribution
12 thereafter, which sum shall be paid into the Tax Compliance
13 and Administration Fund. Each municipality shall receive the
14 amount attributable to sales for which Illinois addresses for
15 titling or registration purposes are given as being in such
16 municipality. The remainder of the money paid into the Local
17 Government Tax Fund from such sales shall be distributed to
18 counties. Each county shall receive the amount attributable
19 to sales for which Illinois addresses for titling or
20 registration purposes are given as being located in the
21 unincorporated area of such county.
22 A portion of the money paid into the Local Government Tax
23 Fund from the 6.25% general rate on sales subject to taxation
24 under the Retailers' Occupation Tax Act and the Service
25 Occupation Tax Act, which occurred in municipalities, shall
26 be distributed to each municipality, based upon the sales
27 which occurred in that municipality. The remainder shall be
28 distributed to each county, based upon the sales which
29 occurred in the unincorporated area of such county.
30 A portion of the money paid into the Local Government Tax
31 Fund from the 1.25% rate imposed by the Retailers' Occupation
32 Tax Act upon the sale of any motor vehicle that is sold at
33 retail to a lessor for purposes of leasing under a lease
34 subject to the Automobile Leasing Occupation and Use Tax Act
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1 shall be distributed as provided in this paragraph, less 3%
2 for the first 12 monthly distributions and 1% for each
3 monthly distribution thereafter, which sum shall be paid into
4 the Tax Compliance and Administration Fund. The funds shall
5 be distributed to each municipality, based upon the sales
6 which occurred in that municipality. The remainder shall be
7 distributed to each county, based upon the sales which
8 occurred in the unincorporated area of such county.
9 Whenever the Department determines that a refund of money
10 paid into the Local Government Tax Fund should be made to a
11 claimant instead of issuing a credit memorandum, the
12 Department shall notify the State Comptroller, who shall
13 cause the order to be drawn for the amount specified, and to
14 the person named, in such notification from the Department.
15 Such refund shall be paid by the State Treasurer out of the
16 Local Government Tax Fund.
17 On or before the 25th day of each calendar month, the
18 Department shall prepare and certify to the Comptroller the
19 disbursement of stated sums of money to named municipalities
20 and counties, the municipalities and counties to be those
21 entitled to distribution of taxes or penalties paid to the
22 Department during the second preceding calendar month. The
23 amount to be paid to each municipality or county shall be the
24 amount (not including credit memoranda) collected during the
25 second preceding calendar month by the Department and paid
26 into the Local Government Tax Fund, plus an amount the
27 Department determines is necessary to offset any amounts
28 which were erroneously paid to a different taxing body, and
29 not including an amount equal to the amount of refunds made
30 during the second preceding calendar month by the Department,
31 and not including any amount which the Department determines
32 is necessary to offset any amounts which are payable to a
33 different taxing body but were erroneously paid to the
34 municipality or county. Within 10 days after receipt, by the
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1 Comptroller, of the disbursement certification to the
2 municipalities and counties, provided for in this Section to
3 be given to the Comptroller by the Department, the
4 Comptroller shall cause the orders to be drawn for the
5 respective amounts in accordance with the directions
6 contained in such certification.
7 When certifying the amount of monthly disbursement to a
8 municipality or county under this Section, the Department
9 shall increase or decrease that amount by an amount necessary
10 to offset any misallocation of previous disbursements. The
11 offset amount shall be the amount erroneously disbursed
12 within the 6 months preceding the time a misallocation is
13 discovered.
14 The provisions directing the distributions from the
15 special fund in the State Treasury provided for in this
16 Section shall constitute an irrevocable and continuing
17 appropriation of all amounts as provided herein. The State
18 Treasurer and State Comptroller are hereby authorized to make
19 distributions as provided in this Section.
20 In construing any development, redevelopment, annexation,
21 preannexation or other lawful agreement in effect prior to
22 September 1, 1990, which describes or refers to receipts from
23 a county or municipal retailers' occupation tax, use tax or
24 service occupation tax which now cannot be imposed, such
25 description or reference shall be deemed to include the
26 replacement revenue for such abolished taxes, distributed
27 from the Local Government Tax Fund.
28 (Source: P.A. 86-928; 86-1481.)
29 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
30 Sec. 6z-20. Of the money received from the 6.25% general
31 rate on sales subject to taxation under the Retailers'
32 Occupation Tax Act and Service Occupation Tax Act and paid
33 into the County and Mass Transit District Fund, distribution
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1 to the Regional Transportation Authority tax fund, created
2 pursuant to Section 4.03 of the Regional Transportation
3 Authority Act, for deposit therein shall be made based upon
4 the retail sales occurring in a county having more than
5 3,000,000 inhabitants. The remainder shall be distributed to
6 each county having 3,000,000 or fewer inhabitants based upon
7 the retail sales occurring in each such county.
8 Of the money received from the 1.25% rate imposed by the
9 Retailers' Occupation Tax Act upon the sale of any motor
10 vehicle that is sold at retail to a lessor for purposes of
11 leasing under a lease subject to the Automobile Leasing
12 Occupation and Use Tax Act, and paid into the County and Mass
13 Transit District Fund shall be distributed as provided in
14 this paragraph, less 3% for the first 12 monthly
15 distributions and 1% for each monthly distribution
16 thereafter, which sum shall be paid into the Tax Compliance
17 and Administration Fund. Distribution to the Regional
18 Transportation Authority Tax Fund, created pursuant to
19 Section 4.03 of the Regional Transportation Authority Act,
20 for deposit therein shall be made based upon the retail sales
21 occurring in a county having more than 3,000,000 inhabitants.
22 The remainder shall be distributed to each county having
23 3,000,000 or fewer inhabitants based upon the retail sales
24 occurring in each such county.
25 Of the money received from the 6.25% general use tax rate
26 on tangible personal property which is purchased outside
27 Illinois at retail from a retailer and which is titled or
28 registered by any agency of this State's government and paid
29 into the County and Mass Transit District Fund, the amount
30 for which Illinois addresses for titling or registration
31 purposes are given as being in each county having more than
32 3,000,000 inhabitants shall be distributed into the Regional
33 Transportation Authority tax fund, created pursuant to
34 Section 4.03 of the Regional Transportation Authority Act.
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1 The remainder of the money paid from such sales shall be
2 distributed to each county based on sales for which Illinois
3 addresses for titling or registration purposes are given as
4 being located in the county. Any money paid into the
5 Regional Transportation Authority Occupation and Use Tax
6 Replacement Fund from the County and Mass Transit District
7 Fund prior to January 14, 1991, which has not been paid to
8 the Authority prior to that date, shall be transferred to the
9 Regional Transportation Authority tax fund.
10 Of the money received from the 1.25% rate imposed under
11 the Use Tax Act upon the selling price of any motor vehicle
12 that is purchased outside of Illinois at retail by a lessor
13 for purposes of leasing under a lease subject to the
14 Automobile Leasing Occupation and Use Tax Act which is titled
15 or registered by any agency of this State's government and is
16 paid into the County and Mass Transit District Fund, shall be
17 distributed as provided in this paragraph, less 3% for the
18 first 12 monthly distributions and 1% for each monthly
19 distribution thereafter, which sum shall be paid into the Tax
20 Compliance and Administration Fund. The amount for which
21 Illinois addresses for titling or registration purposes are
22 given as being in each county having more than 3,000,000
23 inhabitants shall be distributed into the Regional
24 Transportation Authority Tax Fund, created pursuant to
25 Section 4.03 of the Regional Transportation Authority Act.
26 The remainder of the moneys paid from such sales shall be
27 distributed to each county based on sales for which Illinois
28 addresses for titling or registration purposes are given as
29 being located in that county.
30 Whenever the Department determines that a refund of money
31 paid into the County and Mass Transit District Fund should be
32 made to a claimant instead of issuing a credit memorandum,
33 the Department shall notify the State Comptroller, who shall
34 cause the order to be drawn for the amount specified, and to
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1 the person named, in such notification from the Department.
2 Such refund shall be paid by the State Treasurer out of the
3 County and Mass Transit District Fund.
4 On or before the 25th day of each calendar month, the
5 Department shall prepare and certify to the Comptroller the
6 disbursement of stated sums of money to the Regional
7 Transportation Authority and to named counties, the counties
8 to be those entitled to distribution, as hereinabove
9 provided, of taxes or penalties paid to the Department during
10 the second preceding calendar month. The amount to be paid
11 to the Regional Transportation Authority and each county
12 having 3,000,000 or fewer inhabitants shall be the amount
13 (not including credit memoranda) collected during the second
14 preceding calendar month by the Department and paid into the
15 County and Mass Transit District Fund, plus an amount the
16 Department determines is necessary to offset any amounts
17 which were erroneously paid to a different taxing body, and
18 not including an amount equal to the amount of refunds made
19 during the second preceding calendar month by the Department,
20 and not including any amount which the Department determines
21 is necessary to offset any amounts which were payable to a
22 different taxing body but were erroneously paid to the
23 Regional Transportation Authority or county. Within 10 days
24 after receipt, by the Comptroller, of the disbursement
25 certification to the Regional Transportation Authority and
26 counties, provided for in this Section to be given to the
27 Comptroller by the Department, the Comptroller shall cause
28 the orders to be drawn for the respective amounts in
29 accordance with the directions contained in such
30 certification.
31 When certifying the amount of a monthly disbursement to
32 the Regional Transportation Authority or to a county under
33 this Section, the Department shall increase or decrease that
34 amount by an amount necessary to offset any misallocation of
HB1121 Enrolled -14- LRB9003803KDsbA
1 previous disbursements. The offset amount shall be the
2 amount erroneously disbursed within the 6 months preceding
3 the time a misallocation is discovered.
4 The provisions directing the distributions from the
5 special fund in the State Treasury provided for in this
6 Section and from the Regional Transportation Authority tax
7 fund created by Section 4.03 of the Regional Transportation
8 Authority Act shall constitute an irrevocable and continuing
9 appropriation of all amounts as provided herein. The State
10 Treasurer and State Comptroller are hereby authorized to make
11 distributions as provided in this Section.
12 In construing any development, redevelopment, annexation,
13 preannexation or other lawful agreement in effect prior to
14 September 1, 1990, which describes or refers to receipts from
15 a county or municipal retailers' occupation tax, use tax or
16 service occupation tax which now cannot be imposed, such
17 description or reference shall be deemed to include the
18 replacement revenue for such abolished taxes, distributed
19 from the County and Mass Transit District Fund or Local
20 Government Distributive Fund, as the case may be.
21 (Source: P.A. 86-928; 86-1481; 87-435.)
22 Section 85. The Use Tax Act is amended by changing
23 Sections 1a, 3-10, and 9 as follows:
24 (35 ILCS 105/1a) (from Ch. 120, par. 439.1a)
25 Sec. 1a. A person who is engaged in the business of
26 leasing or renting motor vehicles to others and who, in
27 connection with such business sells any used motor vehicle to
28 a purchaser for his use and not for the purpose of resale, is
29 a retailer engaged in the business of selling tangible
30 personal property at retail under this Act to the extent of
31 the value of the vehicle sold. For the purpose of this
32 Section, "motor vehicle" means any motor vehicle of the first
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1 division, a motor vehicle of the second division which is a
2 self-contained motor vehicle designed or permanently
3 converted to provide living quarters for recreational,
4 camping or travel use, with direct walk through access to the
5 living quarters from the driver's seat, or a motor vehicle of
6 a second division which is of the van configuration designed
7 for the transportation of not less than 7 nor more than 16
8 passengers, as defined in Section 1-146 of the Illinois
9 Vehicle Code. For the purpose of this Section, "motor
10 vehicle" has the meaning prescribed in Section 1-157 of The
11 Illinois Vehicle Code, as now or hereafter amended. (Nothing
12 provided herein shall affect liability incurred under this
13 Act because of the use of such motor vehicles as a lessor.)
14 (Source: P.A. 80-598.)
15 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
16 Sec. 3-10. Rate of tax. Unless otherwise provided in
17 this Section, the tax imposed by this Act is at the rate of
18 6.25% of either the selling price or the fair market value,
19 if any, of the tangible personal property. In all cases
20 where property functionally used or consumed is the same as
21 the property that was purchased at retail, then the tax is
22 imposed on the selling price of the property. In all cases
23 where property functionally used or consumed is a by-product
24 or waste product that has been refined, manufactured, or
25 produced from property purchased at retail, then the tax is
26 imposed on the lower of the fair market value, if any, of the
27 specific property so used in this State or on the selling
28 price of the property purchased at retail. For purposes of
29 this Section "fair market value" means the price at which
30 property would change hands between a willing buyer and a
31 willing seller, neither being under any compulsion to buy or
32 sell and both having reasonable knowledge of the relevant
33 facts. The fair market value shall be established by Illinois
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1 sales by the taxpayer of the same property as that
2 functionally used or consumed, or if there are no such sales
3 by the taxpayer, then comparable sales or purchases of
4 property of like kind and character in Illinois.
5 With respect to gasohol, the tax imposed by this Act
6 applies to 70% of the proceeds of sales made on or after
7 January 1, 1990, and before July 1, 1999, and to 100% of the
8 proceeds of sales made thereafter, except that from July 1,
9 1997 to July 1, 1999, the rate shall be 85% for gasohol sold
10 in this State during the 12 months beginning July 1 following
11 any calendar year for which the Department has determined
12 that the percentages in Section 10 of the Gasohol Fuels Tax
13 Abatement Act have not been met.
14 With respect to food for human consumption that is to be
15 consumed off the premises where it is sold (other than
16 alcoholic beverages, soft drinks, and food that has been
17 prepared for immediate consumption) and prescription and
18 nonprescription medicines, drugs, medical appliances,
19 modifications to a motor vehicle for the purpose of rendering
20 it usable by a disabled person, and insulin, urine testing
21 materials, syringes, and needles used by diabetics, for human
22 use, the tax is imposed at the rate of 1%. For the purposes
23 of this Section, the term "soft drinks" means any complete,
24 finished, ready-to-use, non-alcoholic drink, whether
25 carbonated or not, including but not limited to soda water,
26 cola, fruit juice, vegetable juice, carbonated water, and all
27 other preparations commonly known as soft drinks of whatever
28 kind or description that are contained in any closed or
29 sealed bottle, can, carton, or container, regardless of size.
30 "Soft drinks" does not include coffee, tea, non-carbonated
31 water, infant formula, milk or milk products as defined in
32 the Grade A Pasteurized Milk and Milk Products Act, or drinks
33 containing 50% or more natural fruit or vegetable juice.
34 Notwithstanding any other provisions of this Act, "food
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1 for human consumption that is to be consumed off the premises
2 where it is sold" includes all food sold through a vending
3 machine, except soft drinks and food products that are
4 dispensed hot from a vending machine, regardless of the
5 location of the vending machine.
6 With respect to any motor vehicle (as the term "motor
7 vehicle" is defined in Section 1a of this Act) that is
8 purchased by a lessor for purposes of leasing under a lease
9 subject to the Automobile Leasing Occupation and Use Tax Act,
10 the tax is imposed at the rate of 1.25%.
11 With respect to any motor vehicle (as the term "motor
12 vehicle" is defined in Section 1a of this Act) that has been
13 leased by a lessor to a lessee under a lease that is subject
14 to the Automobile Leasing Occupation and Use Tax Act, and is
15 subsequently purchased by the lessee of such vehicle, the tax
16 is imposed at the rate of 5%.
17 If the property that is purchased at retail from a
18 retailer is acquired outside Illinois and used outside
19 Illinois before being brought to Illinois for use here and is
20 taxable under this Act, the "selling price" on which the tax
21 is computed shall be reduced by an amount that represents a
22 reasonable allowance for depreciation for the period of prior
23 out-of-state use.
24 (Source: P.A. 88-45; 89-359, eff. 8-17-95; 89-420, eff.
25 6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
26 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
27 Sec. 9. Except as to motor vehicles, watercraft,
28 aircraft, and trailers that are required to be registered
29 with an agency of this State, each retailer required or
30 authorized to collect the tax imposed by this Act shall pay
31 to the Department the amount of such tax (except as otherwise
32 provided) at the time when he is required to file his return
33 for the period during which such tax was collected, less a
HB1121 Enrolled -18- LRB9003803KDsbA
1 discount of 2.1% prior to January 1, 1990, and 1.75% on and
2 after January 1, 1990, or $5 per calendar year, whichever is
3 greater, which is allowed to reimburse the retailer for
4 expenses incurred in collecting the tax, keeping records,
5 preparing and filing returns, remitting the tax and supplying
6 data to the Department on request. In the case of retailers
7 who report and pay the tax on a transaction by transaction
8 basis, as provided in this Section, such discount shall be
9 taken with each such tax remittance instead of when such
10 retailer files his periodic return. A retailer need not
11 remit that part of any tax collected by him to the extent
12 that he is required to remit and does remit the tax imposed
13 by the Retailers' Occupation Tax Act, with respect to the
14 sale of the same property.
15 Where such tangible personal property is sold under a
16 conditional sales contract, or under any other form of sale
17 wherein the payment of the principal sum, or a part thereof,
18 is extended beyond the close of the period for which the
19 return is filed, the retailer, in collecting the tax (except
20 as to motor vehicles, watercraft, aircraft, and trailers that
21 are required to be registered with an agency of this State),
22 may collect for each tax return period, only the tax
23 applicable to that part of the selling price actually
24 received during such tax return period.
25 Except as provided in this Section, on or before the
26 twentieth day of each calendar month, such retailer shall
27 file a return for the preceding calendar month. Such return
28 shall be filed on forms prescribed by the Department and
29 shall furnish such information as the Department may
30 reasonably require.
31 The Department may require returns to be filed on a
32 quarterly basis. If so required, a return for each calendar
33 quarter shall be filed on or before the twentieth day of the
34 calendar month following the end of such calendar quarter.
HB1121 Enrolled -19- LRB9003803KDsbA
1 The taxpayer shall also file a return with the Department for
2 each of the first two months of each calendar quarter, on or
3 before the twentieth day of the following calendar month,
4 stating:
5 1. The name of the seller;
6 2. The address of the principal place of business
7 from which he engages in the business of selling tangible
8 personal property at retail in this State;
9 3. The total amount of taxable receipts received by
10 him during the preceding calendar month from sales of
11 tangible personal property by him during such preceding
12 calendar month, including receipts from charge and time
13 sales, but less all deductions allowed by law;
14 4. The amount of credit provided in Section 2d of
15 this Act;
16 5. The amount of tax due;
17 5-5. The signature of the taxpayer; and
18 6. Such other reasonable information as the
19 Department may require.
20 If a taxpayer fails to sign a return within 30 days after
21 the proper notice and demand for signature by the Department,
22 the return shall be considered valid and any amount shown to
23 be due on the return shall be deemed assessed.
24 Beginning October 1, 1993, a taxpayer who has an average
25 monthly tax liability of $150,000 or more shall make all
26 payments required by rules of the Department by electronic
27 funds transfer. Beginning October 1, 1994, a taxpayer who has
28 an average monthly tax liability of $100,000 or more shall
29 make all payments required by rules of the Department by
30 electronic funds transfer. Beginning October 1, 1995, a
31 taxpayer who has an average monthly tax liability of $50,000
32 or more shall make all payments required by rules of the
33 Department by electronic funds transfer. The term "average
34 monthly tax liability" means the sum of the taxpayer's
HB1121 Enrolled -20- LRB9003803KDsbA
1 liabilities under this Act, and under all other State and
2 local occupation and use tax laws administered by the
3 Department, for the immediately preceding calendar year
4 divided by 12.
5 Before August 1 of each year beginning in 1993, the
6 Department shall notify all taxpayers required to make
7 payments by electronic funds transfer. All taxpayers required
8 to make payments by electronic funds transfer shall make
9 those payments for a minimum of one year beginning on October
10 1.
11 Any taxpayer not required to make payments by electronic
12 funds transfer may make payments by electronic funds transfer
13 with the permission of the Department.
14 All taxpayers required to make payment by electronic
15 funds transfer and any taxpayers authorized to voluntarily
16 make payments by electronic funds transfer shall make those
17 payments in the manner authorized by the Department.
18 The Department shall adopt such rules as are necessary to
19 effectuate a program of electronic funds transfer and the
20 requirements of this Section.
21 If the taxpayer's average monthly tax liability to the
22 Department under this Act, the Retailers' Occupation Tax Act,
23 the Service Occupation Tax Act, the Service Use Tax Act was
24 $10,000 or more during the preceding 4 complete calendar
25 quarters, he shall file a return with the Department each
26 month by the 20th day of the month next following the month
27 during which such tax liability is incurred and shall make
28 payments to the Department on or before the 7th, 15th, 22nd
29 and last day of the month during which such liability is
30 incurred. If the month during which such tax liability is
31 incurred began prior to January 1, 1985, each payment shall
32 be in an amount equal to 1/4 of the taxpayer's actual
33 liability for the month or an amount set by the Department
34 not to exceed 1/4 of the average monthly liability of the
HB1121 Enrolled -21- LRB9003803KDsbA
1 taxpayer to the Department for the preceding 4 complete
2 calendar quarters (excluding the month of highest liability
3 and the month of lowest liability in such 4 quarter period).
4 If the month during which such tax liability is incurred
5 begins on or after January 1, 1985, and prior to January 1,
6 1987, each payment shall be in an amount equal to 22.5% of
7 the taxpayer's actual liability for the month or 27.5% of the
8 taxpayer's liability for the same calendar month of the
9 preceding year. If the month during which such tax liability
10 is incurred begins on or after January 1, 1987, and prior to
11 January 1, 1988, each payment shall be in an amount equal to
12 22.5% of the taxpayer's actual liability for the month or
13 26.25% of the taxpayer's liability for the same calendar
14 month of the preceding year. If the month during which such
15 tax liability is incurred begins on or after January 1, 1988,
16 and prior to January 1, 1989, or begins on or after January
17 1, 1996, each payment shall be in an amount equal to 22.5% of
18 the taxpayer's actual liability for the month or 25% of the
19 taxpayer's liability for the same calendar month of the
20 preceding year. If the month during which such tax liability
21 is incurred begins on or after January 1, 1989, and prior to
22 January 1, 1996, each payment shall be in an amount equal to
23 22.5% of the taxpayer's actual liability for the month or 25%
24 of the taxpayer's liability for the same calendar month of
25 the preceding year or 100% of the taxpayer's actual liability
26 for the quarter monthly reporting period. The amount of such
27 quarter monthly payments shall be credited against the final
28 tax liability of the taxpayer's return for that month. Once
29 applicable, the requirement of the making of quarter monthly
30 payments to the Department shall continue until such
31 taxpayer's average monthly liability to the Department during
32 the preceding 4 complete calendar quarters (excluding the
33 month of highest liability and the month of lowest liability)
34 is less than $9,000, or until such taxpayer's average monthly
HB1121 Enrolled -22- LRB9003803KDsbA
1 liability to the Department as computed for each calendar
2 quarter of the 4 preceding complete calendar quarter period
3 is less than $10,000. However, if a taxpayer can show the
4 Department that a substantial change in the taxpayer's
5 business has occurred which causes the taxpayer to anticipate
6 that his average monthly tax liability for the reasonably
7 foreseeable future will fall below $10,000, then such
8 taxpayer may petition the Department for change in such
9 taxpayer's reporting status. The Department shall change
10 such taxpayer's reporting status unless it finds that such
11 change is seasonal in nature and not likely to be long term.
12 If any such quarter monthly payment is not paid at the time
13 or in the amount required by this Section, then the
14 taxpayer's 2.1% or 1.75% vendors' discount shall be reduced
15 by 2.1% or 1.75%, as the case may be, of the difference
16 between the minimum amount due and the amount of such quarter
17 monthly payment actually and timely paid and the taxpayer
18 shall be liable for penalties and interest on such
19 difference, except insofar as the taxpayer has previously
20 made payments for that month to the Department in excess of
21 the minimum payments previously due as provided in this
22 Section. The Department shall make reasonable rules and
23 regulations to govern the quarter monthly payment amount and
24 quarter monthly payment dates for taxpayers who file on other
25 than a calendar monthly basis.
26 If any such payment provided for in this Section exceeds
27 the taxpayer's liabilities under this Act, the Retailers'
28 Occupation Tax Act, the Service Occupation Tax Act and the
29 Service Use Tax Act, as shown by an original monthly return,
30 the Department shall issue to the taxpayer a credit
31 memorandum no later than 30 days after the date of payment,
32 which memorandum may be submitted by the taxpayer to the
33 Department in payment of tax liability subsequently to be
34 remitted by the taxpayer to the Department or be assigned by
HB1121 Enrolled -23- LRB9003803KDsbA
1 the taxpayer to a similar taxpayer under this Act, the
2 Retailers' Occupation Tax Act, the Service Occupation Tax Act
3 or the Service Use Tax Act, in accordance with reasonable
4 rules and regulations to be prescribed by the Department,
5 except that if such excess payment is shown on an original
6 monthly return and is made after December 31, 1986, no credit
7 memorandum shall be issued, unless requested by the taxpayer.
8 If no such request is made, the taxpayer may credit such
9 excess payment against tax liability subsequently to be
10 remitted by the taxpayer to the Department under this Act,
11 the Retailers' Occupation Tax Act, the Service Occupation Tax
12 Act or the Service Use Tax Act, in accordance with reasonable
13 rules and regulations prescribed by the Department. If the
14 Department subsequently determines that all or any part of
15 the credit taken was not actually due to the taxpayer, the
16 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
17 by 2.1% or 1.75% of the difference between the credit taken
18 and that actually due, and the taxpayer shall be liable for
19 penalties and interest on such difference.
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 to the Department does not exceed $50, the
34 Department may authorize his returns to be filed on an annual
HB1121 Enrolled -24- LRB9003803KDsbA
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 In addition, with respect to motor vehicles, watercraft,
14 aircraft, and trailers that are required to be registered
15 with an agency of this State, every retailer selling this
16 kind of tangible personal property shall file, with the
17 Department, upon a form to be prescribed and supplied by the
18 Department, a separate return for each such item of tangible
19 personal property which the retailer sells, except that
20 where, in the same transaction, a retailer of aircraft,
21 watercraft, motor vehicles or trailers transfers more than
22 one aircraft, watercraft, motor vehicle or trailer to another
23 aircraft, watercraft, motor vehicle or trailer retailer for
24 the purpose of resale, that seller for resale may report the
25 transfer of all the aircraft, watercraft, motor vehicles or
26 trailers involved in that transaction to the Department on
27 the same uniform invoice-transaction reporting return form.
28 For purposes of this Section, "watercraft" means a Class 2,
29 Class 3, or Class 4 watercraft as defined in Section 3-2 of
30 the Boat Registration and Safety Act, a personal watercraft,
31 or any boat equipped with an inboard motor.
32 The transaction reporting return in the case of motor
33 vehicles or trailers that are required to be registered with
34 an agency of this State, shall be the same document as the
HB1121 Enrolled -25- LRB9003803KDsbA
1 Uniform Invoice referred to in Section 5-402 of the Illinois
2 Vehicle Code and must show the name and address of the
3 seller; the name and address of the purchaser; the amount of
4 the selling price including the amount allowed by the
5 retailer for traded-in property, if any; the amount allowed
6 by the retailer for the traded-in tangible personal property,
7 if any, to the extent to which Section 2 of this Act allows
8 an exemption for the value of traded-in property; the balance
9 payable after deducting such trade-in allowance from the
10 total selling price; the amount of tax due from the retailer
11 with respect to such transaction; the amount of tax collected
12 from the purchaser by the retailer on such transaction (or
13 satisfactory evidence that such tax is not due in that
14 particular instance, if that is claimed to be the fact); the
15 place and date of the sale; a sufficient identification of
16 the property sold; such other information as is required in
17 Section 5-402 of the Illinois Vehicle Code, and such other
18 information as the Department may reasonably require.
19 The transaction reporting return in the case of
20 watercraft and aircraft must show the name and address of the
21 seller; the name and address of the purchaser; the amount of
22 the selling price including the amount allowed by the
23 retailer for traded-in property, if any; the amount allowed
24 by the retailer for the traded-in tangible personal property,
25 if any, to the extent to which Section 2 of this Act allows
26 an exemption for the value of traded-in property; the balance
27 payable after deducting such trade-in allowance from the
28 total selling price; the amount of tax due from the retailer
29 with respect to such transaction; the amount of tax collected
30 from the purchaser by the retailer on such transaction (or
31 satisfactory evidence that such tax is not due in that
32 particular instance, if that is claimed to be the fact); the
33 place and date of the sale, a sufficient identification of
34 the property sold, and such other information as the
HB1121 Enrolled -26- LRB9003803KDsbA
1 Department may reasonably require.
2 Such transaction reporting return shall be filed not
3 later than 20 days after the date of delivery of the item
4 that is being sold, but may be filed by the retailer at any
5 time sooner than that if he chooses to do so. The
6 transaction reporting return and tax remittance or proof of
7 exemption from the tax that is imposed by this Act may be
8 transmitted to the Department by way of the State agency with
9 which, or State officer with whom, the tangible personal
10 property must be titled or registered (if titling or
11 registration is required) if the Department and such agency
12 or State officer determine that this procedure will expedite
13 the processing of applications for title or registration.
14 With each such transaction reporting return, the retailer
15 shall remit the proper amount of tax due (or shall submit
16 satisfactory evidence that the sale is not taxable if that is
17 the case), to the Department or its agents, whereupon the
18 Department shall issue, in the purchaser's name, a tax
19 receipt (or a certificate of exemption if the Department is
20 satisfied that the particular sale is tax exempt) which such
21 purchaser may submit to the agency with which, or State
22 officer with whom, he must title or register the tangible
23 personal property that is involved (if titling or
24 registration is required) in support of such purchaser's
25 application for an Illinois certificate or other evidence of
26 title or registration to such tangible personal property.
27 No retailer's failure or refusal to remit tax under this
28 Act precludes a user, who has paid the proper tax to the
29 retailer, from obtaining his certificate of title or other
30 evidence of title or registration (if titling or registration
31 is required) upon satisfying the Department that such user
32 has paid the proper tax (if tax is due) to the retailer. The
33 Department shall adopt appropriate rules to carry out the
34 mandate of this paragraph.
HB1121 Enrolled -27- LRB9003803KDsbA
1 If the user who would otherwise pay tax to the retailer
2 wants the transaction reporting return filed and the payment
3 of tax or proof of exemption made to the Department before
4 the retailer is willing to take these actions and such user
5 has not paid the tax to the retailer, such user may certify
6 to the fact of such delay by the retailer, and may (upon the
7 Department being satisfied of the truth of such
8 certification) transmit the information required by the
9 transaction reporting return and the remittance for tax or
10 proof of exemption directly to the Department and obtain his
11 tax receipt or exemption determination, in which event the
12 transaction reporting return and tax remittance (if a tax
13 payment was required) shall be credited by the Department to
14 the proper retailer's account with the Department, but
15 without the 2.1% or 1.75% discount provided for in this
16 Section being allowed. When the user pays the tax directly
17 to the Department, he shall pay the tax in the same amount
18 and in the same form in which it would be remitted if the tax
19 had been remitted to the Department by the retailer.
20 Where a retailer collects the tax with respect to the
21 selling price of tangible personal property which he sells
22 and the purchaser thereafter returns such tangible personal
23 property and the retailer refunds the selling price thereof
24 to the purchaser, such retailer shall also refund, to the
25 purchaser, the tax so collected from the purchaser. When
26 filing his return for the period in which he refunds such tax
27 to the purchaser, the retailer may deduct the amount of the
28 tax so refunded by him to the purchaser from any other use
29 tax which such retailer may be required to pay or remit to
30 the Department, as shown by such return, if the amount of the
31 tax to be deducted was previously remitted to the Department
32 by such retailer. If the retailer has not previously
33 remitted the amount of such tax to the Department, he is
34 entitled to no deduction under this Act upon refunding such
HB1121 Enrolled -28- LRB9003803KDsbA
1 tax to the purchaser.
2 Any retailer filing a return under this Section shall
3 also include (for the purpose of paying tax thereon) the
4 total tax covered by such return upon the selling price of
5 tangible personal property purchased by him at retail from a
6 retailer, but as to which the tax imposed by this Act was not
7 collected from the retailer filing such return, and such
8 retailer shall remit the amount of such tax to the Department
9 when filing such return.
10 If experience indicates such action to be practicable,
11 the Department may prescribe and furnish a combination or
12 joint return which will enable retailers, who are required to
13 file returns hereunder and also under the Retailers'
14 Occupation Tax Act, to furnish all the return information
15 required by both Acts on the one form.
16 Where the retailer has more than one business registered
17 with the Department under separate registration under this
18 Act, such retailer may not file each return that is due as a
19 single return covering all such registered businesses, but
20 shall file separate returns for each such registered
21 business.
22 Beginning January 1, 1990, each month the Department
23 shall pay into the State and Local Sales Tax Reform Fund, a
24 special fund in the State Treasury which is hereby created,
25 the net revenue realized for the preceding month from the 1%
26 tax on sales of food for human consumption which is to be
27 consumed off the premises where it is sold (other than
28 alcoholic beverages, soft drinks and food which has been
29 prepared for immediate consumption) and prescription and
30 nonprescription medicines, drugs, medical appliances and
31 insulin, urine testing materials, syringes and needles used
32 by diabetics.
33 Beginning January 1, 1990, each month the Department
34 shall pay into the County and Mass Transit District Fund 4%
HB1121 Enrolled -29- LRB9003803KDsbA
1 of the net revenue realized for the preceding month from the
2 6.25% general rate on the selling price of tangible personal
3 property which is purchased outside Illinois at retail from a
4 retailer and which is titled or registered by an agency of
5 this State's government.
6 Each month the Department shall pay into the County and
7 Mass Transit District Fund 20% the net revenue realized for
8 the preceding month from the 1.25% rate imposed upon the
9 selling price of any motor vehicle that is purchased outside
10 Illinois at retail by a lessor for purposes of leasing under
11 a lease subject to the Automobile Leasing Occupation and Use
12 Tax Act and which is titled or registered by an agency of
13 this State's government.
14 Beginning January 1, 1990, each month the Department
15 shall pay into the State and Local Sales Tax Reform Fund, a
16 special fund in the State Treasury, 20% of the net revenue
17 realized for the preceding month from the 6.25% general rate
18 on the selling price of tangible personal property, other
19 than tangible personal property which is purchased outside
20 Illinois at retail from a retailer and which is titled or
21 registered by an agency of this State's government.
22 Beginning January 1, 1990, each month the Department
23 shall pay into the Local Government Tax Fund 16% of the net
24 revenue realized for the preceding month from the 6.25%
25 general rate on the selling price of tangible personal
26 property which is purchased outside Illinois at retail from a
27 retailer and which is titled or registered by an agency of
28 this State's government.
29 Each month the Department shall pay into the Local
30 Government Tax Fund 80% of the net revenue realized for the
31 preceding month from the 1.25% rate imposed upon the selling
32 price of any motor vehicle that is purchased outside Illinois
33 at retail by a lessor for purposes of leasing under a lease
34 subject to the Automobile Leasing Occupation and Use Tax Act
HB1121 Enrolled -30- LRB9003803KDsbA
1 and which is titled or registered by an agency of this
2 State's government.
3 Of the remainder of the moneys received by the Department
4 pursuant to this Act, and including all moneys received by
5 the Department under Section 20 of the Automobile Leasing
6 Occupation and Use Tax Act and including all of the moneys
7 received pursuant to the 5% rate imposed upon the selling
8 price of any motor vehicle that is purchased from lessors by
9 lessees of such vehicles in connection with a lease that was
10 subject to the Automobile Leasing Occupation and Use Tax Act
11 Of the remainder of the moneys received by the Department
12 pursuant to this Act, (a) 1.75% thereof shall be paid into
13 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
14 and on and after July 1, 1989, 3.8% thereof shall be paid
15 into the Build Illinois Fund; provided, however, that if in
16 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
17 as the case may be, of the moneys received by the Department
18 and required to be paid into the Build Illinois Fund pursuant
19 to Section 3 of the Retailers' Occupation Tax Act, Section 9
20 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
21 Section 9 of the Service Occupation Tax Act, such Acts being
22 hereinafter called the "Tax Acts" and such aggregate of 2.2%
23 or 3.8%, as the case may be, of moneys being hereinafter
24 called the "Tax Act Amount", and (2) the amount transferred
25 to the Build Illinois Fund from the State and Local Sales Tax
26 Reform Fund shall be less than the Annual Specified Amount
27 (as defined in Section 3 of the Retailers' Occupation Tax
28 Act), an amount equal to the difference shall be immediately
29 paid into the Build Illinois Fund from other moneys received
30 by the Department pursuant to the Tax Acts; and further
31 provided, that if on the last business day of any month the
32 sum of (1) the Tax Act Amount required to be deposited into
33 the Build Illinois Bond Account in the Build Illinois Fund
34 during such month and (2) the amount transferred during such
HB1121 Enrolled -31- LRB9003803KDsbA
1 month to the Build Illinois Fund from the State and Local
2 Sales Tax Reform Fund shall have been less than 1/12 of the
3 Annual Specified Amount, an amount equal to the difference
4 shall be immediately paid into the Build Illinois Fund from
5 other moneys received by the Department pursuant to the Tax
6 Acts; and, further provided, that in no event shall the
7 payments required under the preceding proviso result in
8 aggregate payments into the Build Illinois Fund pursuant to
9 this clause (b) for any fiscal year in excess of the greater
10 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
11 for such fiscal year; and, further provided, that the amounts
12 payable into the Build Illinois Fund under this clause (b)
13 shall be payable only until such time as the aggregate amount
14 on deposit under each trust indenture securing Bonds issued
15 and outstanding pursuant to the Build Illinois Bond Act is
16 sufficient, taking into account any future investment income,
17 to fully provide, in accordance with such indenture, for the
18 defeasance of or the payment of the principal of, premium, if
19 any, and interest on the Bonds secured by such indenture and
20 on any Bonds expected to be issued thereafter and all fees
21 and costs payable with respect thereto, all as certified by
22 the Director of the Bureau of the Budget. If on the last
23 business day of any month in which Bonds are outstanding
24 pursuant to the Build Illinois Bond Act, the aggregate of the
25 moneys deposited in the Build Illinois Bond Account in the
26 Build Illinois Fund in such month shall be less than the
27 amount required to be transferred in such month from the
28 Build Illinois Bond Account to the Build Illinois Bond
29 Retirement and Interest Fund pursuant to Section 13 of the
30 Build Illinois Bond Act, an amount equal to such deficiency
31 shall be immediately paid from other moneys received by the
32 Department pursuant to the Tax Acts to the Build Illinois
33 Fund; provided, however, that any amounts paid to the Build
34 Illinois Fund in any fiscal year pursuant to this sentence
HB1121 Enrolled -32- LRB9003803KDsbA
1 shall be deemed to constitute payments pursuant to clause (b)
2 of the preceding sentence and shall reduce the amount
3 otherwise payable for such fiscal year pursuant to clause (b)
4 of the preceding sentence. The moneys received by the
5 Department pursuant to this Act and required to be deposited
6 into the Build Illinois Fund are subject to the pledge, claim
7 and charge set forth in Section 12 of the Build Illinois Bond
8 Act.
9 Subject to payment of amounts into the Build Illinois
10 Fund as provided in the preceding paragraph or in any
11 amendment thereto hereafter enacted, the following specified
12 monthly installment of the amount requested in the
13 certificate of the Chairman of the Metropolitan Pier and
14 Exposition Authority provided under Section 8.25f of the
15 State Finance Act, but not in excess of the sums designated
16 as "Total Deposit", shall be deposited in the aggregate from
17 collections under Section 9 of the Use Tax Act, Section 9 of
18 the Service Use Tax Act, Section 9 of the Service Occupation
19 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
20 into the McCormick Place Expansion Project Fund in the
21 specified fiscal years.
22 Fiscal Year Total Deposit
23 1993 $0
24 1994 53,000,000
25 1995 58,000,000
26 1996 61,000,000
27 1997 64,000,000
28 1998 68,000,000
29 1999 71,000,000
30 2000 75,000,000
31 2001 80,000,000
32 2002 84,000,000
33 2003 89,000,000
34 2004 and 93,000,000
HB1121 Enrolled -33- LRB9003803KDsbA
1 each fiscal year
2 thereafter that bonds
3 are outstanding under
4 Section 13.2 of the
5 Metropolitan Pier and
6 Exposition Authority
7 Act.
8 Beginning July 20, 1993 and in each month of each fiscal
9 year thereafter, one-eighth of the amount requested in the
10 certificate of the Chairman of the Metropolitan Pier and
11 Exposition Authority for that fiscal year, less the amount
12 deposited into the McCormick Place Expansion Project Fund by
13 the State Treasurer in the respective month under subsection
14 (g) of Section 13 of the Metropolitan Pier and Exposition
15 Authority Act, plus cumulative deficiencies in the deposits
16 required under this Section for previous months and years,
17 shall be deposited into the McCormick Place Expansion Project
18 Fund, until the full amount requested for the fiscal year,
19 but not in excess of the amount specified above as "Total
20 Deposit", has been deposited.
21 Subject to payment of amounts into the Build Illinois
22 Fund and the McCormick Place Expansion Project Fund pursuant
23 to the preceding paragraphs or in any amendment thereto
24 hereafter enacted, each month the Department shall pay into
25 the Local Government Distributive Fund .4% of the net revenue
26 realized for the preceding month from the 5% general rate, or
27 .4% of 80% of the net revenue realized for the preceding
28 month from the 6.25% general rate, as the case may be, on the
29 selling price of tangible personal property which amount
30 shall, subject to appropriation, be distributed as provided
31 in Section 2 of the State Revenue Sharing Act. No payments or
32 distributions pursuant to this paragraph shall be made if the
33 tax imposed by this Act on photoprocessing products is
34 declared unconstitutional, or if the proceeds from such tax
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1 are unavailable for distribution because of litigation.
2 Subject to payment of amounts into the Build Illinois
3 Fund, the McCormick Place Expansion Project Fund, and the
4 Local Government Distributive Fund pursuant to the preceding
5 paragraphs or in any amendments thereto hereafter enacted,
6 beginning July 1, 1993, the Department shall each month pay
7 into the Illinois Tax Increment Fund 0.27% of 80% of the net
8 revenue realized for the preceding month from the 6.25%
9 general rate on the selling price of tangible personal
10 property.
11 Of the remainder of the moneys received by the Department
12 pursuant to this Act, 75% thereof shall be paid into the
13 State Treasury and 25% shall be reserved in a special account
14 and used only for the transfer to the Common School Fund as
15 part of the monthly transfer from the General Revenue Fund in
16 accordance with Section 8a of the State Finance Act.
17 As soon as possible after the first day of each month,
18 upon certification of the Department of Revenue, the
19 Comptroller shall order transferred and the Treasurer shall
20 transfer from the General Revenue Fund to the Motor Fuel Tax
21 Fund an amount equal to 1.7% of 80% of the net revenue
22 realized under this Act for the second preceding month;
23 except that this transfer shall not be made for the months
24 February through June of 1992.
25 Net revenue realized for a month shall be the revenue
26 collected by the State pursuant to this Act, less the amount
27 paid out during that month as refunds to taxpayers for
28 overpayment of liability.
29 For greater simplicity of administration, manufacturers,
30 importers and wholesalers whose products are sold at retail
31 in Illinois by numerous retailers, and who wish to do so, may
32 assume the responsibility for accounting and paying to the
33 Department all tax accruing under this Act with respect to
34 such sales, if the retailers who are affected do not make
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1 written objection to the Department to this arrangement.
2 (Source: P.A. 88-45; 88-116; 88-194; 88-660, eff. 9-16-94;
3 88-669, eff. 11-29-94; 88-670, eff. 12-2-94; 89-379, eff.
4 1-1-96; 89-626, eff. 8-9-96.)
5 Section 90. The Retailers' Occupation Tax Act is amended
6 by changing Sections 1c, 2-10, and 3 as follows:
7 (35 ILCS 120/1c) (from Ch. 120, par. 440c)
8 Sec. 1c. A person who is engaged in the business of
9 leasing or renting motor vehicles to others and who, in
10 connection with such business sells any used motor vehicle to
11 a purchaser for his use and not for the purpose of resale, is
12 a retailer engaged in the business of selling tangible
13 personal property at retail under this Act to the extent of
14 the value of the vehicle sold. For the purpose of this
15 Section, "motor vehicle" means any motor vehicle of the first
16 division, a motor vehicle of the second division which is a
17 self-contained motor vehicle designed or permanently
18 converted to provide living quarters for recreational,
19 camping or travel use, with direct walk through access to the
20 living quarters from the driver's seat, or a motor vehicle of
21 a second division which is of the van configuration designed
22 for the transportation of not less than 7 nor more than 16
23 passengers, as defined in Section 1-146 of the Illinois
24 Vehicle Code. For the purpose of this Section "motor vehicle"
25 has the meaning prescribed in Section 1-157 of The Illinois
26 Vehicle Code, as now or hereafter amended. (Nothing provided
27 herein shall affect liability incurred under this Act because
28 of the sale at retail of such motor vehicles to a lessor.)
29 (Source: P.A. 80-598.)
30 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
31 Sec. 2-10. Rate of tax. Unless otherwise provided in
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1 this Section, the tax imposed by this Act is at the rate of
2 6.25% of gross receipts from sales of tangible personal
3 property made in the course of business.
4 With respect to gasohol, as defined in the Use Tax Act,
5 the tax imposed by this Act applies to 70% of the proceeds of
6 sales made on or after January 1, 1990, and before July 1,
7 1999, and to 100% of the proceeds of sales made thereafter,
8 except that from July 1, 1997 to July 1, 1999, the rate shall
9 be 85% for gasohol sold in this State during the 12 months
10 beginning July 1 following any calendar year for which the
11 Department has determined that the percentages in Section 10
12 of the Gasohol Fuels Tax Abatement Act have not been met.
13 With respect to food for human consumption that is to be
14 consumed off the premises where it is sold (other than
15 alcoholic beverages, soft drinks, and food that has been
16 prepared for immediate consumption) and prescription and
17 nonprescription medicines, drugs, medical appliances,
18 modifications to a motor vehicle for the purpose of rendering
19 it usable by a disabled person, and insulin, urine testing
20 materials, syringes, and needles used by diabetics, for human
21 use, the tax is imposed at the rate of 1%. For the purposes
22 of this Section, the term "soft drinks" means any complete,
23 finished, ready-to-use, non-alcoholic drink, whether
24 carbonated or not, including but not limited to soda water,
25 cola, fruit juice, vegetable juice, carbonated water, and all
26 other preparations commonly known as soft drinks of whatever
27 kind or description that are contained in any closed or
28 sealed bottle, can, carton, or container, regardless of size.
29 "Soft drinks" does not include coffee, tea, non-carbonated
30 water, infant formula, milk or milk products as defined in
31 the Grade A Pasteurized Milk and Milk Products Act, or drinks
32 containing 50% or more natural fruit or vegetable juice.
33 Notwithstanding any other provisions of this Act, "food
34 for human consumption that is to be consumed off the premises
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1 where it is sold" includes all food sold through a vending
2 machine, except soft drinks and food products that are
3 dispensed hot from a vending machine, regardless of the
4 location of the vending machine.
5 With respect to any motor vehicle (as the term "motor
6 vehicle" is defined in Section 1c of this Act) that is sold
7 to a lessor for purposes of leasing under a lease subject to
8 the Automobile Leasing Occupation and Use Tax Act, the tax is
9 imposed at the rate of 1.25%.
10 With respect to any motor vehicle (as the term "motor
11 vehicle" is defined in Section 1c of this Act) that has been
12 leased by a lessor to a lessee under a lease that is subject
13 to the Automobile Leasing Occupation and Use Tax Act, and is
14 subsequently sold to the lessee of such vehicle, the tax is
15 imposed at the rate of 5%.
16 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
17 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
18 (35 ILCS 120/3) (from Ch. 120, par. 442)
19 Sec. 3. Except as provided in this Section, on or before
20 the twentieth day of each calendar month, every person
21 engaged in the business of selling tangible personal property
22 at retail in this State during the preceding calendar month
23 shall file a return with the Department, stating:
24 1. The name of the seller;
25 2. His residence address and the address of his
26 principal place of business and the address of the
27 principal place of business (if that is a different
28 address) from which he engages in the business of selling
29 tangible personal property at retail in this State;
30 3. Total amount of receipts received by him during
31 the preceding calendar month or quarter, as the case may
32 be, from sales of tangible personal property, and from
33 services furnished, by him during such preceding calendar
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1 month or quarter;
2 4. Total amount received by him during the
3 preceding calendar month or quarter on charge and time
4 sales of tangible personal property, and from services
5 furnished, by him prior to the month or quarter for which
6 the return is filed;
7 5. Deductions allowed by law;
8 6. Gross receipts which were received by him during
9 the preceding calendar month or quarter and upon the
10 basis of which the tax is imposed;
11 7. The amount of credit provided in Section 2d of
12 this Act;
13 8. The amount of tax due;
14 9. The signature of the taxpayer; and
15 10. Such other reasonable information as the
16 Department may require.
17 If a taxpayer fails to sign a return within 30 days after
18 the proper notice and demand for signature by the Department,
19 the return shall be considered valid and any amount shown to
20 be due on the return shall be deemed assessed.
21 Each return shall be accompanied by the statement of
22 prepaid tax issued pursuant to Section 2e for which credit is
23 claimed.
24 A retailer may accept a Manufacturer's Purchase Credit
25 certification from a purchaser in satisfaction of Use Tax as
26 provided in Section 3-85 of the Use Tax Act if the purchaser
27 provides the appropriate documentation as required by Section
28 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
29 certification, accepted by a retailer as provided in Section
30 3-85 of the Use Tax Act, may be used by that retailer to
31 satisfy Retailers' Occupation Tax liability in the amount
32 claimed in the certification, not to exceed 6.25% of the
33 receipts subject to tax from a qualifying purchase.
34 The Department may require returns to be filed on a
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1 quarterly basis. If so required, a return for each calendar
2 quarter shall be filed on or before the twentieth day of the
3 calendar month following the end of such calendar quarter.
4 The taxpayer shall also file a return with the Department for
5 each of the first two months of each calendar quarter, on or
6 before the twentieth day of the following calendar month,
7 stating:
8 1. The name of the seller;
9 2. The address of the principal place of business
10 from which he engages in the business of selling tangible
11 personal property at retail in this State;
12 3. The total amount of taxable receipts received by
13 him during the preceding calendar month from sales of
14 tangible personal property by him during such preceding
15 calendar month, including receipts from charge and time
16 sales, but less all deductions allowed by law;
17 4. The amount of credit provided in Section 2d of
18 this Act;
19 5. The amount of tax due; and
20 6. Such other reasonable information as the
21 Department may require.
22 If a total amount of less than $1 is payable, refundable
23 or creditable, such amount shall be disregarded if it is less
24 than 50 cents and shall be increased to $1 if it is 50 cents
25 or more.
26 Beginning October 1, 1993, a taxpayer who has an average
27 monthly tax liability of $150,000 or more shall make all
28 payments required by rules of the Department by electronic
29 funds transfer. Beginning October 1, 1994, a taxpayer who
30 has an average monthly tax liability of $100,000 or more
31 shall make all payments required by rules of the Department
32 by electronic funds transfer. Beginning October 1, 1995, a
33 taxpayer who has an average monthly tax liability of $50,000
34 or more shall make all payments required by rules of the
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1 Department by electronic funds transfer. The term "average
2 monthly tax liability" shall be the sum of the taxpayer's
3 liabilities under this Act, and under all other State and
4 local occupation and use tax laws administered by the
5 Department, for the immediately preceding calendar year
6 divided by 12.
7 Before August 1 of each year beginning in 1993, the
8 Department shall notify all taxpayers required to make
9 payments by electronic funds transfer. All taxpayers
10 required to make payments by electronic funds transfer shall
11 make those payments for a minimum of one year beginning on
12 October 1.
13 Any taxpayer not required to make payments by electronic
14 funds transfer may make payments by electronic funds transfer
15 with the permission of the Department.
16 All taxpayers required to make payment by electronic
17 funds transfer and any taxpayers authorized to voluntarily
18 make payments by electronic funds transfer shall make those
19 payments in the manner authorized by the Department.
20 The Department shall adopt such rules as are necessary to
21 effectuate a program of electronic funds transfer and the
22 requirements of this Section.
23 Any amount which is required to be shown or reported on
24 any return or other document under this Act shall, if such
25 amount is not a whole-dollar amount, be increased to the
26 nearest whole-dollar amount in any case where the fractional
27 part of a dollar is 50 cents or more, and decreased to the
28 nearest whole-dollar amount where the fractional part of a
29 dollar is less than 50 cents.
30 If the retailer is otherwise required to file a monthly
31 return and if the retailer's average monthly tax liability to
32 the Department does not exceed $200, the Department may
33 authorize his returns to be filed on a quarter annual basis,
34 with the return for January, February and March of a given
HB1121 Enrolled -41- LRB9003803KDsbA
1 year being due by April 20 of such year; with the return for
2 April, May and June of a given year being due by July 20 of
3 such year; with the return for July, August and September of
4 a given year being due by October 20 of such year, and with
5 the return for October, November and December of a given year
6 being due by January 20 of the following year.
7 If the retailer is otherwise required to file a monthly
8 or quarterly return and if the retailer's average monthly tax
9 liability with the Department does not exceed $50, the
10 Department may authorize his returns to be filed on an annual
11 basis, with the return for a given year being due by January
12 20 of the following year.
13 Such quarter annual and annual returns, as to form and
14 substance, shall be subject to the same requirements as
15 monthly returns.
16 Notwithstanding any other provision in this Act
17 concerning the time within which a retailer may file his
18 return, in the case of any retailer who ceases to engage in a
19 kind of business which makes him responsible for filing
20 returns under this Act, such retailer shall file a final
21 return under this Act with the Department not more than one
22 month after discontinuing such business.
23 Where the same person has more than one business
24 registered with the Department under separate registrations
25 under this Act, such person may not file each return that is
26 due as a single return covering all such registered
27 businesses, but shall file separate returns for each such
28 registered business.
29 In addition, with respect to motor vehicles, watercraft,
30 aircraft, and trailers that are required to be registered
31 with an agency of this State, every retailer selling this
32 kind of tangible personal property shall file, with the
33 Department, upon a form to be prescribed and supplied by the
34 Department, a separate return for each such item of tangible
HB1121 Enrolled -42- LRB9003803KDsbA
1 personal property which the retailer sells, except that
2 where, in the same transaction, a retailer of aircraft,
3 watercraft, motor vehicles or trailers transfers more than
4 one aircraft, watercraft, motor vehicle or trailer to another
5 aircraft, watercraft, motor vehicle retailer or trailer
6 retailer for the purpose of resale, that seller for resale
7 may report the transfer of all aircraft, watercraft, motor
8 vehicles or trailers involved in that transaction to the
9 Department on the same uniform invoice-transaction reporting
10 return form. For purposes of this Section, "watercraft"
11 means a Class 2, Class 3, or Class 4 watercraft as defined in
12 Section 3-2 of the Boat Registration and Safety Act, a
13 personal watercraft, or any boat equipped with an inboard
14 motor.
15 Any retailer who sells only motor vehicles, watercraft,
16 aircraft, or trailers that are required to be registered with
17 an agency of this State, so that all retailers' occupation
18 tax liability is required to be reported, and is reported, on
19 such transaction reporting returns and who is not otherwise
20 required to file monthly or quarterly returns, need not file
21 monthly or quarterly returns. However, those retailers shall
22 be required to file returns on an annual basis.
23 The transaction reporting return, in the case of motor
24 vehicles or trailers that are required to be registered with
25 an agency of this State, shall be the same document as the
26 Uniform Invoice referred to in Section 5-402 of The Illinois
27 Vehicle Code and 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
HB1121 Enrolled -43- LRB9003803KDsbA
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; such other information as is required in
8 Section 5-402 of The Illinois Vehicle Code, and such other
9 information as the Department may reasonably require.
10 The transaction reporting return in the case of
11 watercraft or aircraft must show the name and address of the
12 seller; the name and address of the purchaser; the amount of
13 the selling price including the amount allowed by the
14 retailer for traded-in property, if any; the amount allowed
15 by the retailer for the traded-in tangible personal property,
16 if any, to the extent to which Section 1 of this Act allows
17 an exemption for the value of traded-in property; the balance
18 payable after deducting such trade-in allowance from the
19 total selling price; the amount of tax due from the retailer
20 with respect to such transaction; the amount of tax collected
21 from the purchaser by the retailer on such transaction (or
22 satisfactory evidence that such tax is not due in that
23 particular instance, if that is claimed to be the fact); the
24 place and date of the sale, a sufficient identification of
25 the property sold, and such other information as the
26 Department may reasonably require.
27 Such transaction reporting return shall be filed not
28 later than 20 days after the day of delivery of the item that
29 is being sold, but may be filed by the retailer at any time
30 sooner than that if he chooses to do so. The transaction
31 reporting return and tax remittance or proof of exemption
32 from the Illinois use tax may be transmitted to the
33 Department by way of the State agency with which, or State
34 officer with whom the tangible personal property must be
HB1121 Enrolled -44- LRB9003803KDsbA
1 titled or registered (if titling or registration is required)
2 if the Department and such agency or State officer determine
3 that this procedure will expedite the processing of
4 applications for title or registration.
5 With each such transaction reporting return, the retailer
6 shall remit the proper amount of tax due (or shall submit
7 satisfactory evidence that the sale is not taxable if that is
8 the case), to the Department or its agents, whereupon the
9 Department shall issue, in the purchaser's name, a use tax
10 receipt (or a certificate of exemption if the Department is
11 satisfied that the particular sale is tax exempt) which such
12 purchaser may submit to the agency with which, or State
13 officer with whom, he must title or register the tangible
14 personal property that is involved (if titling or
15 registration is required) in support of such purchaser's
16 application for an Illinois certificate or other evidence of
17 title or registration to such tangible personal property.
18 No retailer's failure or refusal to remit tax under this
19 Act precludes a user, who has paid the proper tax to the
20 retailer, from obtaining his certificate of title or other
21 evidence of title or registration (if titling or registration
22 is required) upon satisfying the Department that such user
23 has paid the proper tax (if tax is due) to the retailer. The
24 Department shall adopt appropriate rules to carry out the
25 mandate of this paragraph.
26 If the user who would otherwise pay tax to the retailer
27 wants the transaction reporting return filed and the payment
28 of the tax or proof of exemption made to the Department
29 before the retailer is willing to take these actions and such
30 user has not paid the tax to the retailer, such user may
31 certify to the fact of such delay by the retailer and may
32 (upon the Department being satisfied of the truth of such
33 certification) transmit the information required by the
34 transaction reporting return and the remittance for tax or
HB1121 Enrolled -45- LRB9003803KDsbA
1 proof of exemption directly to the Department and obtain his
2 tax receipt or exemption determination, in which event the
3 transaction reporting return and tax remittance (if a tax
4 payment was required) shall be credited by the Department to
5 the proper retailer's account with the Department, but
6 without the 2.1% or 1.75% discount provided for in this
7 Section being allowed. When the user pays the tax directly
8 to the Department, he shall pay the tax in the same amount
9 and in the same form in which it would be remitted if the tax
10 had been remitted to the Department by the retailer.
11 Refunds made by the seller during the preceding return
12 period to purchasers, on account of tangible personal
13 property returned to the seller, shall be allowed as a
14 deduction under subdivision 5 of his monthly or quarterly
15 return, as the case may be, in case the seller had
16 theretofore included the receipts from the sale of such
17 tangible personal property in a return filed by him and had
18 paid the tax imposed by this Act with respect to such
19 receipts.
20 Where the seller is a corporation, the return filed on
21 behalf of such corporation shall be signed by the president,
22 vice-president, secretary or treasurer or by the properly
23 accredited agent of such corporation.
24 Where the seller is a limited liability company, the
25 return filed on behalf of the limited liability company shall
26 be signed by a manager, member, or properly accredited agent
27 of the limited liability company.
28 Except as provided in this Section, the retailer filing
29 the return under this Section shall, at the time of filing
30 such return, pay to the Department the amount of tax imposed
31 by this Act less a discount of 2.1% prior to January 1, 1990
32 and 1.75% on and after January 1, 1990, or $5 per calendar
33 year, whichever is greater, which is allowed to reimburse the
34 retailer for the expenses incurred in keeping records,
HB1121 Enrolled -46- LRB9003803KDsbA
1 preparing and filing returns, remitting the tax and supplying
2 data to the Department on request. Any prepayment made
3 pursuant to Section 2d of this Act shall be included in the
4 amount on which such 2.1% or 1.75% discount is computed. In
5 the case of retailers who report and pay the tax on a
6 transaction by transaction basis, as provided in this
7 Section, such discount shall be taken with each such tax
8 remittance instead of when such retailer files his periodic
9 return.
10 If the taxpayer's average monthly tax liability to the
11 Department under this Act, the Use Tax Act, the Service
12 Occupation Tax Act, and the Service Use Tax Act, excluding
13 any liability for prepaid sales tax to be remitted in
14 accordance with Section 2d of this Act, was $10,000 or more
15 during the preceding 4 complete calendar quarters, he shall
16 file a return with the Department each month by the 20th day
17 of the month next following the month during which such tax
18 liability is incurred and shall make payments to the
19 Department on or before the 7th, 15th, 22nd and last day of
20 the month during which such liability is incurred. If the
21 month during which such tax liability is incurred began prior
22 to January 1, 1985, each payment shall be in an amount equal
23 to 1/4 of the taxpayer's actual liability for the month or an
24 amount set by the Department not to exceed 1/4 of the average
25 monthly liability of the taxpayer to the Department for the
26 preceding 4 complete calendar quarters (excluding the month
27 of highest liability and the month of lowest liability in
28 such 4 quarter period). If the month during which such tax
29 liability is incurred begins on or after January 1, 1985 and
30 prior to January 1, 1987, each payment shall be in an amount
31 equal to 22.5% of the taxpayer's actual liability for the
32 month or 27.5% of the taxpayer's liability for the same
33 calendar month of the preceding year. If the month during
34 which such tax liability is incurred begins on or after
HB1121 Enrolled -47- LRB9003803KDsbA
1 January 1, 1987 and prior to January 1, 1988, each payment
2 shall be in an amount equal to 22.5% of the taxpayer's actual
3 liability for the month or 26.25% of the taxpayer's liability
4 for the same calendar month of the preceding year. If the
5 month during which such tax liability is incurred begins on
6 or after January 1, 1988, and prior to January 1, 1989, or
7 begins on or after January 1, 1996, each payment shall be in
8 an amount equal to 22.5% of the taxpayer's actual liability
9 for the month or 25% of the taxpayer's liability for the same
10 calendar month of the preceding year. If the month during
11 which such tax liability is incurred begins on or after
12 January 1, 1989, and prior to January 1, 1996, each payment
13 shall be in an amount equal to 22.5% of the taxpayer's actual
14 liability for the month or 25% of the taxpayer's liability
15 for the same calendar month of the preceding year or 100% of
16 the taxpayer's actual liability for the quarter monthly
17 reporting period. The amount of such quarter monthly
18 payments shall be credited against the final tax liability of
19 the taxpayer's return for that month. Once applicable, the
20 requirement of the making of quarter monthly payments to the
21 Department by taxpayers having an average monthly tax
22 liability of $10,000 or more as determined in the manner
23 provided above shall continue until such taxpayer's average
24 monthly liability to the Department during the preceding 4
25 complete calendar quarters (excluding the month of highest
26 liability and the month of lowest liability) is less than
27 $9,000, or until such taxpayer's average monthly liability to
28 the Department as computed for each calendar quarter of the 4
29 preceding complete calendar quarter period is less than
30 $10,000. However, if a taxpayer can show the Department that
31 a substantial change in the taxpayer's business has occurred
32 which causes the taxpayer to anticipate that his average
33 monthly tax liability for the reasonably foreseeable future
34 will fall below $10,000, then such taxpayer may petition the
HB1121 Enrolled -48- LRB9003803KDsbA
1 Department for a change in such taxpayer's reporting status.
2 The Department shall change such taxpayer's reporting status
3 unless it finds that such change is seasonal in nature and
4 not likely to be long term. If any such quarter monthly
5 payment is not paid at the time or in the amount required by
6 this Section, then the taxpayer's 2.1% or 1.75% vendors'
7 discount shall be reduced by 2.1% or 1.75% of the difference
8 between the minimum amount due as a payment and the amount of
9 such quarter monthly payment actually and timely paid, and
10 the taxpayer shall be liable for penalties and interest on
11 such difference, except insofar as the taxpayer has
12 previously made payments for that month to the Department in
13 excess of the minimum payments previously due as provided in
14 this Section. The Department shall make reasonable rules and
15 regulations to govern the quarter monthly payment amount and
16 quarter monthly payment dates for taxpayers who file on other
17 than a calendar monthly basis.
18 Without regard to whether a taxpayer is required to make
19 quarter monthly payments as specified above, any taxpayer who
20 is required by Section 2d of this Act to collect and remit
21 prepaid taxes and has collected prepaid taxes which average
22 in excess of $25,000 per month during the preceding 2
23 complete calendar quarters, shall file a return with the
24 Department as required by Section 2f and shall make payments
25 to the Department on or before the 7th, 15th, 22nd and last
26 day of the month during which such liability is incurred. If
27 the month during which such tax liability is incurred began
28 prior to the effective date of this amendatory Act of 1985,
29 each payment shall be in an amount not less than 22.5% of the
30 taxpayer's actual liability under Section 2d. If the month
31 during which such tax liability is incurred begins on or
32 after January 1, 1986, each payment shall be in an amount
33 equal to 22.5% of the taxpayer's actual liability for the
34 month or 27.5% of the taxpayer's liability for the same
HB1121 Enrolled -49- LRB9003803KDsbA
1 calendar month of the preceding calendar year. If the month
2 during which such tax liability is incurred begins on or
3 after January 1, 1987, each payment shall be in an amount
4 equal to 22.5% of the taxpayer's actual liability for the
5 month or 26.25% of the taxpayer's liability for the same
6 calendar month of the preceding year. The amount of such
7 quarter monthly payments shall be credited against the final
8 tax liability of the taxpayer's return for that month filed
9 under this Section or Section 2f, as the case may be. Once
10 applicable, the requirement of the making of quarter monthly
11 payments to the Department pursuant to this paragraph shall
12 continue until such taxpayer's average monthly prepaid tax
13 collections during the preceding 2 complete calendar quarters
14 is $25,000 or less. If any such quarter monthly payment is
15 not paid at the time or in the amount required, the taxpayer
16 shall be liable for penalties and interest on such
17 difference, except insofar as the taxpayer has previously
18 made payments for that month in excess of the minimum
19 payments previously due.
20 If any payment provided for in this Section exceeds the
21 taxpayer's liabilities under this Act, the Use Tax Act, the
22 Service Occupation Tax Act and the Service Use Tax Act, as
23 shown on an original monthly return, the Department shall, if
24 requested by the taxpayer, issue to the taxpayer a credit
25 memorandum no later than 30 days after the date of payment.
26 The credit evidenced by such credit memorandum may be
27 assigned by the taxpayer to a similar taxpayer under this
28 Act, the Use Tax Act, the Service Occupation Tax Act or the
29 Service Use Tax Act, in accordance with reasonable rules and
30 regulations to be prescribed by the Department. If no such
31 request is made, the taxpayer may credit such excess payment
32 against tax liability subsequently to be remitted to the
33 Department under this Act, the Use Tax Act, the Service
34 Occupation Tax Act or the Service Use Tax Act, in accordance
HB1121 Enrolled -50- LRB9003803KDsbA
1 with reasonable rules and regulations prescribed by the
2 Department. If the Department subsequently determined that
3 all or any part of the credit taken was not actually due to
4 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
5 shall be reduced by 2.1% or 1.75% of the difference between
6 the credit taken and that actually due, and that taxpayer
7 shall be liable for penalties and interest on such
8 difference.
9 If a retailer of motor fuel is entitled to a credit under
10 Section 2d of this Act which exceeds the taxpayer's liability
11 to the Department under this Act for the month which the
12 taxpayer is filing a return, the Department shall issue the
13 taxpayer a credit memorandum for the excess.
14 Beginning January 1, 1990, each month the Department
15 shall pay into the Local Government Tax Fund, a special fund
16 in the State treasury which is hereby created, the net
17 revenue realized for the preceding month from the 1% tax on
18 sales of food for human consumption which is to be consumed
19 off the premises where it is sold (other than alcoholic
20 beverages, soft drinks and food which has been prepared for
21 immediate consumption) and prescription and nonprescription
22 medicines, drugs, medical appliances and insulin, urine
23 testing materials, syringes and needles used by diabetics.
24 Beginning January 1, 1990, each month the Department
25 shall pay into the County and Mass Transit District Fund, a
26 special fund in the State treasury which is hereby created,
27 4% of the net revenue realized for the preceding month from
28 the 6.25% general rate.
29 Each month the Department shall pay into the County and
30 Mass Transit District Fund 20% of the net revenue realized
31 for the preceding month from the 1.25% rate imposed upon the
32 sale of any motor vehicle that is sold at retail to a lessor
33 for purposes of leasing under a lease subject to the
34 Automobile Leasing Occupation and Use Tax Act.
HB1121 Enrolled -51- LRB9003803KDsbA
1 Beginning January 1, 1990, each month the Department
2 shall pay into the Local Government Tax Fund 16% of the net
3 revenue realized for the preceding month from the 6.25%
4 general rate on the selling price of tangible personal
5 property.
6 Each month the Department shall pay into the Local
7 Government Tax Fund 80% of the net revenue realized for the
8 preceding month from the 1.25% rate imposed upon the sale of
9 any motor vehicle that is sold at retail to a lessor for
10 purposes of leasing under a lease subject to the Automobile
11 Leasing Occupation and Use Tax Act.
12 Of the remainder of the moneys received by the Department
13 pursuant to this Act, and including all moneys received by
14 the Department pursuant to Section 10 of the Automobile
15 Leasing Occupation and Use Tax Act, and including all of the
16 moneys received pursuant to the 5% rate imposed upon sales of
17 motor vehicles by lessors to the lessees of such vehicles in
18 connection with a lease that was subject to the Automobile
19 Leasing Occupation and Use Tax Act Of the remainder of the
20 moneys received by the Department pursuant to this Act, (a)
21 1.75% thereof shall be paid into the Build Illinois Fund and
22 (b) prior to July 1, 1989, 2.2% and on and after July 1,
23 1989, 3.8% thereof shall be paid into the Build Illinois
24 Fund; provided, however, that if in any fiscal year the sum
25 of (1) the aggregate of 2.2% or 3.8%, as the case may be, of
26 the moneys received by the Department and required to be paid
27 into the Build Illinois Fund pursuant to this Act, Section 9
28 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
29 Section 9 of the Service Occupation Tax Act, such Acts being
30 hereinafter called the "Tax Acts" and such aggregate of 2.2%
31 or 3.8%, as the case may be, of moneys being hereinafter
32 called the "Tax Act Amount", and (2) the amount transferred
33 to the Build Illinois Fund from the State and Local Sales Tax
34 Reform Fund shall be less than the Annual Specified Amount
HB1121 Enrolled -52- LRB9003803KDsbA
1 (as hereinafter defined), an amount equal to the difference
2 shall be immediately paid into the Build Illinois Fund from
3 other moneys received by the Department pursuant to the Tax
4 Acts; the "Annual Specified Amount" means the amounts
5 specified below for fiscal years 1986 through 1993:
6 Fiscal Year Annual Specified Amount
7 1986 $54,800,000
8 1987 $76,650,000
9 1988 $80,480,000
10 1989 $88,510,000
11 1990 $115,330,000
12 1991 $145,470,000
13 1992 $182,730,000
14 1993 $206,520,000;
15 and means the Certified Annual Debt Service Requirement (as
16 defined in Section 13 of the Build Illinois Bond Act) or the
17 Tax Act Amount, whichever is greater, for fiscal year 1994
18 and each fiscal year thereafter; and further provided, that
19 if on the last business day of any month the sum of (1) the
20 Tax Act Amount required to be deposited into the Build
21 Illinois Bond Account in the Build Illinois Fund during such
22 month and (2) the amount transferred to the Build Illinois
23 Fund from the State and Local Sales Tax Reform Fund shall
24 have been less than 1/12 of the Annual Specified Amount, an
25 amount equal to the difference shall be immediately paid into
26 the Build Illinois Fund from other moneys received by the
27 Department pursuant to the Tax Acts; and, further provided,
28 that in no event shall the payments required under the
29 preceding proviso result in aggregate payments into the Build
30 Illinois Fund pursuant to this clause (b) for any fiscal year
31 in excess of the greater of (i) the Tax Act Amount or (ii)
32 the Annual Specified Amount for such fiscal year. The
33 amounts payable into the Build Illinois Fund under clause (b)
34 of the first sentence in this paragraph shall be payable only
HB1121 Enrolled -53- LRB9003803KDsbA
1 until such time as the aggregate amount on deposit under each
2 trust indenture securing Bonds issued and outstanding
3 pursuant to the Build Illinois Bond Act is sufficient, taking
4 into account any future investment income, to fully provide,
5 in accordance with such indenture, for the defeasance of or
6 the payment of the principal of, premium, if any, and
7 interest on the Bonds secured by such indenture and on any
8 Bonds expected to be issued thereafter and all fees and costs
9 payable with respect thereto, all as certified by the
10 Director of the Bureau of the Budget. If on the last
11 business day of any month in which Bonds are outstanding
12 pursuant to the Build Illinois Bond Act, the aggregate of
13 moneys deposited in the Build Illinois Bond Account in the
14 Build Illinois Fund in such month shall be less than the
15 amount required to be transferred in such month from the
16 Build Illinois Bond Account to the Build Illinois Bond
17 Retirement and Interest Fund pursuant to Section 13 of the
18 Build Illinois Bond Act, an amount equal to such deficiency
19 shall be immediately paid from other moneys received by the
20 Department pursuant to the Tax Acts to the Build Illinois
21 Fund; provided, however, that any amounts paid to the Build
22 Illinois Fund in any fiscal year pursuant to this sentence
23 shall be deemed to constitute payments pursuant to clause (b)
24 of the first sentence of this paragraph and shall reduce the
25 amount otherwise payable for such fiscal year pursuant to
26 that clause (b). The moneys received by the Department
27 pursuant to this Act and required to be deposited into the
28 Build Illinois Fund are subject to the pledge, claim and
29 charge set forth in Section 12 of the Build Illinois Bond
30 Act.
31 Subject to payment of amounts into the Build Illinois
32 Fund as provided in the preceding paragraph or in any
33 amendment thereto hereafter enacted, the following specified
34 monthly installment of the amount requested in the
HB1121 Enrolled -54- LRB9003803KDsbA
1 certificate of the Chairman of the Metropolitan Pier and
2 Exposition Authority provided under Section 8.25f of the
3 State Finance Act, but not in excess of sums designated as
4 "Total Deposit", shall be deposited in the aggregate from
5 collections under Section 9 of the Use Tax Act, Section 9 of
6 the Service Use Tax Act, Section 9 of the Service Occupation
7 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
8 into the McCormick Place Expansion Project Fund in the
9 specified fiscal years.
10 Fiscal Year Total Deposit
11 1993 $0
12 1994 53,000,000
13 1995 58,000,000
14 1996 61,000,000
15 1997 64,000,000
16 1998 68,000,000
17 1999 71,000,000
18 2000 75,000,000
19 2001 80,000,000
20 2002 84,000,000
21 2003 89,000,000
22 2004 and 93,000,000
23 each fiscal year
24 thereafter that bonds
25 are outstanding under
26 Section 13.2 of the
27 Metropolitan Pier and
28 Exposition Authority
29 Act.
30 Beginning July 20, 1993 and in each month of each fiscal
31 year thereafter, one-eighth of the amount requested in the
32 certificate of the Chairman of the Metropolitan Pier and
33 Exposition Authority for that fiscal year, less the amount
34 deposited into the McCormick Place Expansion Project Fund by
HB1121 Enrolled -55- LRB9003803KDsbA
1 the State Treasurer in the respective month under subsection
2 (g) of Section 13 of the Metropolitan Pier and Exposition
3 Authority Act, plus cumulative deficiencies in the deposits
4 required under this Section for previous months and years,
5 shall be deposited into the McCormick Place Expansion Project
6 Fund, until the full amount requested for the fiscal year,
7 but not in excess of the amount specified above as "Total
8 Deposit", has been deposited.
9 Subject to payment of amounts into the Build Illinois
10 Fund and the McCormick Place Expansion Project Fund pursuant
11 to the preceding paragraphs or in any amendment thereto
12 hereafter enacted, each month the Department shall pay into
13 the Local Government Distributive Fund 0.4% of the net
14 revenue realized for the preceding month from the 5% general
15 rate or 0.4% of 80% of the net revenue realized for the
16 preceding month from the 6.25% general rate, as the case may
17 be, on the selling price of tangible personal property which
18 amount shall, subject to appropriation, be distributed as
19 provided in Section 2 of the State Revenue Sharing Act. No
20 payments or distributions pursuant to this paragraph shall be
21 made if the tax imposed by this Act on photoprocessing
22 products is declared unconstitutional, or if the proceeds
23 from such tax are unavailable for distribution because of
24 litigation.
25 Subject to payment of amounts into the Build Illinois
26 Fund, the McCormick Place Expansion Project to the preceding
27 paragraphs or in any amendments thereto hereafter enacted,
28 beginning July 1, 1993, the Department shall each month pay
29 into the Illinois Tax Increment Fund 0.27% of 80% of the net
30 revenue realized for the preceding month from the 6.25%
31 general rate on the selling price of tangible personal
32 property.
33 Of the remainder of the moneys received by the Department
34 pursuant to this Act, 75% thereof shall be paid into the
HB1121 Enrolled -56- LRB9003803KDsbA
1 State Treasury and 25% shall be reserved in a special account
2 and used only for the transfer to the Common School Fund as
3 part of the monthly transfer from the General Revenue Fund in
4 accordance with Section 8a of the State Finance Act.
5 The Department may, upon separate written notice to a
6 taxpayer, require the taxpayer to prepare and file with the
7 Department on a form prescribed by the Department within not
8 less than 60 days after receipt of the notice an annual
9 information return for the tax year specified in the notice.
10 Such annual return to the Department shall include a
11 statement of gross receipts as shown by the retailer's last
12 Federal income tax return. If the total receipts of the
13 business as reported in the Federal income tax return do not
14 agree with the gross receipts reported to the Department of
15 Revenue for the same period, the retailer shall attach to his
16 annual return a schedule showing a reconciliation of the 2
17 amounts and the reasons for the difference. The retailer's
18 annual return to the Department shall also disclose the cost
19 of goods sold by the retailer during the year covered by such
20 return, opening and closing inventories of such goods for
21 such year, costs of goods used from stock or taken from stock
22 and given away by the retailer during such year, payroll
23 information of the retailer's business during such year and
24 any additional reasonable information which the Department
25 deems would be helpful in determining the accuracy of the
26 monthly, quarterly or annual returns filed by such retailer
27 as provided for in this Section.
28 If the annual information return required by this Section
29 is not filed when and as required, the taxpayer shall be
30 liable as follows:
31 (i) Until January 1, 1994, the taxpayer shall be
32 liable for a penalty equal to 1/6 of 1% of the tax due
33 from such taxpayer under this Act during the period to be
34 covered by the annual return for each month or fraction
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1 of a month until such return is filed as required, the
2 penalty to be assessed and collected in the same manner
3 as any other penalty provided for in this Act.
4 (ii) On and after January 1, 1994, the taxpayer
5 shall be liable for a penalty as described in Section 3-4
6 of the Uniform Penalty and Interest Act.
7 The chief executive officer, proprietor, owner or highest
8 ranking manager shall sign the annual return to certify the
9 accuracy of the information contained therein. Any person
10 who willfully signs the annual return containing false or
11 inaccurate information shall be guilty of perjury and
12 punished accordingly. The annual return form prescribed by
13 the Department shall include a warning that the person
14 signing the return may be liable for perjury.
15 The provisions of this Section concerning the filing of
16 an annual information return do not apply to a retailer who
17 is not required to file an income tax return with the United
18 States Government.
19 As soon as possible after the first day of each month,
20 upon certification of the Department of Revenue, the
21 Comptroller shall order transferred and the Treasurer shall
22 transfer from the General Revenue Fund to the Motor Fuel Tax
23 Fund an amount equal to 1.7% of 80% of the net revenue
24 realized under this Act for the second preceding month;
25 except that this transfer shall not be made for the months
26 February through June, 1992.
27 Net revenue realized for a month shall be the revenue
28 collected by the State pursuant to this Act, less the amount
29 paid out during that month as refunds to taxpayers for
30 overpayment of liability.
31 For greater simplicity of administration, manufacturers,
32 importers and wholesalers whose products are sold at retail
33 in Illinois by numerous retailers, and who wish to do so, may
34 assume the responsibility for accounting and paying to the
HB1121 Enrolled -58- LRB9003803KDsbA
1 Department all tax accruing under this Act with respect to
2 such sales, if the retailers who are affected do not make
3 written objection to the Department to this arrangement.
4 Any person who promotes, organizes, provides retail
5 selling space for concessionaires or other types of sellers
6 at the Illinois State Fair, DuQuoin State Fair, county fairs,
7 local fairs, art shows, flea markets and similar exhibitions
8 or events, including any transient merchant as defined by
9 Section 2 of the Transient Merchant Act of 1987, is required
10 to file a report with the Department providing the name of
11 the merchant's business, the name of the person or persons
12 engaged in merchant's business, the permanent address and
13 Illinois Retailers Occupation Tax Registration Number of the
14 merchant, the dates and location of the event and other
15 reasonable information that the Department may require. The
16 report must be filed not later than the 20th day of the month
17 next following the month during which the event with retail
18 sales was held. Any person who fails to file a report
19 required by this Section commits a business offense and is
20 subject to a fine not to exceed $250.
21 Any person engaged in the business of selling tangible
22 personal property at retail as a concessionaire or other type
23 of seller at the Illinois State Fair, county fairs, art
24 shows, flea markets and similar exhibitions or events, or any
25 transient merchants, as defined by Section 2 of the Transient
26 Merchant Act of 1987, may be required to make a daily report
27 of the amount of such sales to the Department and to make a
28 daily payment of the full amount of tax due. The Department
29 shall impose this requirement when it finds that there is a
30 significant risk of loss of revenue to the State at such an
31 exhibition or event. Such a finding shall be based on
32 evidence that a substantial number of concessionaires or
33 other sellers who are not residents of Illinois will be
34 engaging in the business of selling tangible personal
HB1121 Enrolled -59- LRB9003803KDsbA
1 property at retail at the exhibition or event, or other
2 evidence of a significant risk of loss of revenue to the
3 State. The Department shall notify concessionaires and other
4 sellers affected by the imposition of this requirement. In
5 the absence of notification by the Department, the
6 concessionaires and other sellers shall file their returns as
7 otherwise required in this Section.
8 (Source: P.A. 88-45; 88-116; 88-194; 88-480; 88-547, eff.
9 6-30-94; 88-660, eff. 9-16-94; 88-669, eff. 11-29-94; 88-670,
10 eff. 12-2-94; 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
11 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
12 Section 95. The Property Tax Code is amended by changing
13 Section 21-260 as follows:
14 (35 ILCS 200/21-260)
15 Sec. 21-260. Collector's scavenger sale. Upon the
16 county collector's application under Section 21-145, to be
17 known as the Scavenger Sale Application, the Court shall
18 enter judgment for the general taxes, special taxes, special
19 assessments, interest, penalties and costs as are included in
20 the advertisement and appear to be due thereon after allowing
21 an opportunity to object and a hearing upon the objections as
22 provided in Section 21-175, and order those properties sold
23 by the County Collector at public sale to the highest bidder
24 for cash, notwithstanding the bid may be less than the full
25 amount of taxes, special taxes, special assessments,
26 interest, penalties and costs for which judgment has been
27 entered.
28 (a) Conducting the sale - Bidding. All properties
29 shall be offered for sale in consecutive order as they appear
30 in the delinquent list. The minimum bid for any property
31 shall be $250 or one-half of the tax if the total liability
32 is less than $500. The successful bidder shall immediately
HB1121 Enrolled -60- LRB9003803KDsbA
1 pay the amount of minimum bid to the County Collector in
2 cash, by certified or cashier's check, or by money order. If
3 the bid exceeds the minimum bid, the successful bidder shall
4 pay the balance of the bid to the county collector in cash,
5 by certified or cashier's check, or by money order by the
6 close of the next business day. If the minimum bid is not
7 paid at the time of sale or if the balance is not paid by the
8 close of the next business day, then the sale is void and the
9 minimum bid, if paid, is forfeited to the county general
10 fund. In that event, the property shall be reoffered for
11 sale within 30 days of the last offering of property in
12 regular order. The collector shall make available to the
13 public a list of all properties to be included in any
14 reoffering due to the voiding of the original sale. The
15 collector is not required to serve or publish any other
16 notice of the reoffering of those properties. In the event
17 that any of the properties are not sold upon reoffering, or
18 are sold for less than the amount of the original voided
19 sale, the original bidder who failed to pay the bid amount
20 shall remain liable for the unpaid balance of the bid in an
21 action under Section 21-240. Liability shall not be reduced
22 where the bidder upon reoffering also fails to pay the bid
23 amount, and in that event both bidders shall remain liable
24 for the unpaid balance of their respective bids. A sale of
25 properties under this Section shall not be final until
26 confirmed by the court.
27 (b) Confirmation of sales. The county collector shall
28 file his or her report of sale in the court within 30 days of
29 the date of sale of each property. No notice of the county
30 collector's application to confirm the sales shall be
31 required except as prescribed by rule of the court. Upon
32 confirmation, except in cases where the sale becomes void
33 under Section 22-85, or in cases where the order of
34 confirmation is vacated by the court, a sale under this
HB1121 Enrolled -61- LRB9003803KDsbA
1 Section shall extinguish the in rem lien of the general
2 taxes, special taxes and special assessments for which
3 judgment has been entered and a redemption shall not revive
4 the lien. Confirmation of the sale shall in no event affect
5 the owner's personal liability to pay the taxes, interest and
6 penalties as provided in this Code or prevent institution of
7 a proceeding under Section 21-440 to collect any amount that
8 may remain due after the sale.
9 (c) Issuance of tax sale certificates. Upon confirmation
10 of the sale the County Clerk and the County Collector shall
11 issue to the purchaser a certificate of purchase in the form
12 prescribed by Section 21-250 as near as may be. A
13 certificate of purchase shall not be issued to any person who
14 is ineligible to bid at the sale or to receive a certificate
15 of purchase under Section 21-265.
16 (d) Scavenger Tax Judgment, Sale and Redemption Record -
17 Sale of parcels not sold. The county collector shall prepare
18 a Scavenger Tax Judgment, Sale and Redemption Record. The
19 county clerk shall write or stamp on the scavenger tax
20 judgment, sale, forfeiture and redemption record opposite the
21 description of any property offered for sale and not sold, or
22 not confirmed for any reason, the words "offered but not
23 sold". The properties which are offered for sale under this
24 Section and not sold or not confirmed shall be offered for
25 sale annually thereafter in the manner provided in this
26 Section until sold, except in the case of mineral rights,
27 which after 10 consecutive years of being offered for sale
28 under this Section and not sold or confirmed shall no longer
29 be required to be offered for sale. At any time between
30 annual sales the County Collector may advertise for sale any
31 properties subject to sale under judgments for sale
32 previously entered under this Section and not executed for
33 any reason. The advertisement and sale shall be regulated by
34 the provisions of this Code as far as applicable.
HB1121 Enrolled -62- LRB9003803KDsbA
1 (e) Proceeding to tax deed. The owner of the certificate
2 of purchase shall give notice as required by Sections 22-5
3 through 22-30, and may extend the period of redemption as
4 provided by Section 21-385. At any time within 5 months prior
5 to expiration of the period of redemption from a sale under
6 this Code, the owner of a certificate of purchase may file a
7 petition and may obtain a tax deed under Sections 22-30
8 through 22-55. All proceedings for the issuance of a tax deed
9 and all tax deeds for properties sold under this Section
10 shall be subject to Sections 22-30 through 22-55. Deeds
11 issued under this Section are subject to Section 22-70. This
12 Section shall be liberally construed to that the deeds
13 provided for in this Section convey merchantable title.
14 (f) Redemptions from scavenger sales. Redemptions may be
15 made from sales under this Section in the same manner and
16 upon the same terms and conditions as redemptions from sales
17 made under the County Collector's annual application for
18 judgment and order of sale, except that in lieu of penalty
19 the person redeeming shall pay interest as follows if the
20 sale occurs before September 9, 1993:
21 (1) If redeemed within the first 2 months from the
22 date of the sale, 3% per month or portion thereof upon
23 the amount for which the property was sold;
24 (2) If redeemed between 2 and 6 months from the
25 date of the sale, 12% of the amount for which the
26 property was sold;
27 (3) If redeemed between 6 and 12 months from the
28 date of the sale, 24% of the amount for which the
29 property was sold;
30 (4) If redeemed between 12 and 18 months from the
31 date of the sale, 36% of the amount for which the
32 property was sold;
33 (5) If redeemed between 18 and 24 months from the
34 date of the sale, 48% of the amount for which the
HB1121 Enrolled -63- LRB9003803KDsbA
1 property was sold;
2 (6) If redeemed after 24 months from the date of
3 sale, the 48% herein provided together with interest at
4 6% per year thereafter.
5 If the sale occurs on or after September 9, 1993, the
6 person redeeming shall pay interest on that part of the
7 amount for which the property was sold equal to or less than
8 the full amount of delinquent taxes, special assessments,
9 penalties, interest, and costs, included in the judgment and
10 order of sale as follows:
11 (1) If redeemed within the first 2 months from the
12 date of the sale, 3% per month upon the amount of taxes,
13 special assessments, penalties, interest, and costs due
14 for each of the first 2 months, or fraction thereof.
15 (2) If redeemed at any time between 2 and 6 months
16 from the date of the sale, 12% of the amount of taxes,
17 special assessments, penalties, interest, and costs due.
18 (3) If redeemed at any time between 6 and 12 months
19 from the date of the sale, 24% of the amount of taxes,
20 special assessments, penalties, interest, and costs due.
21 (4) If redeemed at any time between 12 and 18
22 months from the date of the sale, 36% of the amount of
23 taxes, special assessments, penalties, interest, and
24 costs due.
25 (5) If redeemed at any time between 18 and 24
26 months from the date of the sale, 48% of the amount of
27 taxes, special assessments, penalties, interest, and
28 costs due.
29 (6) If redeemed after 24 months from the date of
30 sale, the 48% provided for the 24 months together with
31 interest at 6% per annum thereafter on the amount of
32 taxes, special assessments, penalties, interest, and
33 costs due.
34 The person redeeming shall not be required to pay any
HB1121 Enrolled -64- LRB9003803KDsbA
1 interest on any part of the amount for which the property was
2 sold that exceeds the full amount of delinquent taxes,
3 special assessments, penalties, interest, and costs included
4 in the judgment and order of sale.
5 Notwithstanding any other provision of this Section,
6 except for owner-occupied single family residential units
7 which are condominium units, cooperative units or dwellings,
8 the amount required to be paid for redemption shall also
9 include an amount equal to all delinquent taxes on the
10 property which taxes were delinquent at the time of sale.
11 The delinquent taxes shall be apportioned by the county
12 collector among the taxing districts in which the property is
13 situated in accordance with law. In the event that all moneys
14 received from any sale held under this Section exceed an
15 amount equal to all delinquent taxes on the property sold,
16 which taxes were delinquent at the time of sale, together
17 with all publication and other costs associated with the
18 sale, then, upon redemption, the County Collector and the
19 County Clerk shall apply the excess amount to the cost of
20 redemption.
21 (g) Bidding by county or other taxing districts. Any
22 taxing district may bid at a scavenger sale. The county
23 board of the county in which properties offered for sale
24 under this Section are located may bid as trustee for all
25 taxing districts having an interest in the taxes for the
26 nonpayment of which the parcels are offered. The County shall
27 apply on the bid the unpaid taxes due upon the property and
28 no cash need be paid. The County or other taxing district
29 acquiring a tax sale certificate shall take all steps
30 necessary to acquire title to the property and may manage and
31 operate the property so acquired.
32 When a county, or other taxing district within the
33 county, is a petitioner for a tax deed, no filing fee shall
34 be required on the petition. The county as a tax creditor and
HB1121 Enrolled -65- LRB9003803KDsbA
1 as trustee for other tax creditors, or other taxing district
2 within the county shall not be required to allege and prove
3 that all taxes and special assessments which become due and
4 payable after the sale to the county have been paid. The
5 county shall not be required to pay the subsequently accruing
6 taxes or special assessments at any time. Upon the written
7 request of the county board or its designee, the county
8 collector shall not offer the property for sale at any tax
9 sale subsequent to the sale of the property to the county
10 under this Section. The lien of taxes and special assessments
11 which become due and payable after a sale to a county shall
12 merge in the fee title of the county, or other taxing
13 district, on the issuance of a deed. The County may sell the
14 properties so acquired, or the certificate of purchase
15 thereto, and the proceeds of the sale shall be distributed to
16 the taxing districts in proportion to their respective
17 interests therein. The presiding officer of the county board,
18 with the advice and consent of the County Board, may appoint
19 some officer or person to attend scavenger sales and bid on
20 its behalf.
21 (h) Miscellaneous provisions. In the event that the
22 tract of land or lot sold at any such sale is not redeemed
23 within the time permitted by law and a tax deed is issued,
24 all moneys that may be received from the sale of properties
25 in excess of the delinquent taxes, together with all
26 publication and other costs associated with the sale, shall,
27 upon petition of any interested party to the court that
28 issued the tax deed, be distributed by the County Collector
29 pursuant to order of the court among the persons having legal
30 or equitable interests in the property according to the fair
31 value of their interests in the tract or lot. Section 21-415
32 does not apply to properties sold under this Section. Appeals
33 may be taken from the orders and judgments entered under this
34 Section as in other civil cases. The remedy herein provided
HB1121 Enrolled -66- LRB9003803KDsbA
1 is in addition to other remedies for the collection of
2 delinquent taxes.
3 (Source: P.A. 88-455; incorporates 88-482; 88-670, eff.
4 12-2-94.)
5 Section 99. Effective date. This Section and Section 95
6 take effect upon becoming law and Sections 1 through 90 take
7 effect July 1, 1998.