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90_HB1121sam001
LRB9003803DNmbam01
1 AMENDMENT TO HOUSE BILL 1121
2 AMENDMENT NO. . Amend House Bill 1121 on page 1, by
3 replacing lines 1 and 2 with the following:
4 "AN ACT concerning taxes."; and
5 on page 1, below line 4, by inserting the following:
6 "Section 1. Short title. This Act may be cited as the
7 Automobile Leasing Occupation and Use Tax Act.
8 Section 5. Definitions. As used in this Act:
9 "Automobile" means any motor vehicle of the first
10 division, a motor vehicle of the second division which is a
11 self-contained motor vehicle designed or permanently
12 converted to provide living quarters for recreational,
13 camping or travel use, with direct walk through access to the
14 living quarters from the driver's seat, or a motor vehicle of
15 the second division which is of the van configuration
16 designed for the transportation of not less than 7 nor more
17 than 16 passengers, as defined in Section 1-146 of the
18 Illinois Vehicle Code.
19 "Department" means the Department of Revenue.
20 "Person" means any natural individual, firm, partnership,
21 association, joint stock company, joint venture, public or
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1 private corporation, or a receiver, executor, trustee,
2 conservator, or other representatives appointed by order of
3 any court.
4 "Leasing" means any transfer of the possession or right
5 to possession of an automobile to a user for a valuable
6 consideration for a period of more than 1 year.
7 "Lessor" means any person, firm, corporation, or
8 association engaged in the business of leasing automobiles to
9 users. For this purpose, the objective of making a profit is
10 not necessary to make the leasing activity a business.
11 "Lessee" means any user to whom the possession, or the
12 right to possession, of an automobile is transferred for a
13 valuable consideration for a period more than one year which
14 is paid by such lessee or by someone else.
15 "Gross receipts" means the total leasing price for the
16 lease of an automobile. In the case of lease transactions in
17 which the consideration is paid to the lessor on an
18 installment basis, the amounts of such payments shall be
19 included by the lessor in gross receipts only as and when
20 payments are received by the lessor.
21 "Leasing price" means the consideration for leasing an
22 automobile valued in money, whether received in money or
23 otherwise, including cash, credits, property and services,
24 less the residual value of the automobile, and shall be
25 determined without any deduction on account of the cost of
26 the property leased, the cost of materials used, labor or
27 service cost or any other expense whatsoever, but does not
28 include charges that are added by lessors on account of the
29 lessor's tax liability under this Act, or on account of the
30 lessor's duty to collect, from the lessee, the tax that is
31 imposed by Section 20 of this Act. The phrase "leasing
32 price" does not include any separately stated charge on the
33 lessee's bill for insurance.
34 "Maintaining a place of business in this State" means
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1 having or maintaining within this State, directly or by a
2 subsidiary, an office, repair facilities, distribution house,
3 sales house, warehouse, or other place of business, or any
4 agent, or other representative, operating within this State,
5 irrespective of whether the place of business or agent or
6 other representative is located here permanently or
7 temporarily.
8 "Residual value" means the estimated value of the vehicle
9 at the end of the scheduled lease term, used by the lessor in
10 determining the base lease payment, as established by the
11 lessor at the time the lessor and lessee enter into the
12 lease.
13 Section 10. Imposition of occupation tax. A tax is
14 imposed upon persons engaged in this State in the business of
15 leasing automobiles in Illinois at the rate of 5% of the
16 gross receipts received from such business. The tax herein
17 imposed does not apply to the leasing of automobiles to any
18 governmental body, nor to any corporation, society,
19 association, foundation or institution organized and operated
20 exclusively for charitable, religious or educational
21 purposes, nor to any not for profit corporation, society,
22 association, foundation, institution or organization which
23 has no compensated officers or employees and which is
24 organized and operated primarily for the recreation of
25 persons 55 year of age or older. Beginning July 1, 1998
26 through June 30, 1999, each month the Department shall pay
27 into the Tax Compliance and Administration Fund 3% of the
28 revenue realized from the tax imposed by this Section, and
29 the remaining such revenue shall be paid as provided for in
30 Section 3 of the Retailers' Occupation Tax Act. Beginning
31 July 1, 1999 and each month thereafter, the Department shall
32 pay into the Tax Compliance and Administration Fund 1% of the
33 revenue realized from the tax imposed by this Section, and
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1 the remaining such revenue shall be paid as provided for in
2 Section 3 of the Retailers' Occupation Tax Act.
3 The Department shall have full power to administer and
4 enforce this Section, to collect all taxes and penalties due
5 hereunder, to dispose of taxes and penalties so collected in
6 the manner hereinafter provided, and to determine all rights
7 to credit memoranda, arising on account of the erroneous
8 payment of tax or penalty hereunder. In the administration
9 of, and compliance with, this Section, the Department and
10 persons who are subject to this Section shall have the same
11 rights, remedies, privileges, immunities, powers and duties,
12 and be subject to the same conditions, restrictions,
13 limitation, penalties and definitions of terms, and employ
14 the same modes of procedure, as are prescribed in Sections 1,
15 1a, 2 through 2-65 (in respect to all provisions therein
16 other than the State rate of tax), 2a, 2b, 2c, 3 (except
17 provisions relating to transaction returns and quarter
18 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j,
19 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12 and 13 of the
20 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
21 Penalty and Interest Act as fully as if those provisions were
22 set forth herein. For purposes of this Section, references
23 in such incorporated Sections of the Retailers' Occupation
24 Tax Act to retailers, sellers or persons engaged in the
25 business of selling tangible personal property means persons
26 engaged in the leasing of automobiles under leases subject to
27 this Act.
28 Section 15. Registration. Every person engaged in this
29 State in the business of leasing automobiles shall apply to
30 the Department (upon a form prescribed and furnished by the
31 Department) for a certificate of registration under this Act.
32 The certificate of registration that is issued by the
33 Department to a retailer under the Retailers' Occupation Tax
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1 Act shall permit such lessor to engage in a business that is
2 taxable under this Section without registering separately
3 with the Department.
4 Section 20. Imposition of use tax. A tax is imposed upon
5 the privilege of using in this State, an automobile which is
6 leased from a lessor. Such tax is at the rate of 5% of the
7 leasing price of such automobile paid to the lessor under any
8 lease agreement. The tax herein imposed shall not apply to
9 any governmental body, nor to any corporation, society,
10 association, foundation or institution, organized and
11 operated exclusively for charitable, religious or educational
12 purposes, nor to any not for profit corporation, society,
13 association, foundation, institution or organization which
14 has no compensated officers or employees and which is
15 organized and operated primarily for the recreation of
16 persons 55 years of age or older, when using tangible
17 personal property as a lessee. Beginning July 1, 1998
18 through June 30, 1999, each month the Department shall pay
19 into the Tax Compliance and Administration Fund 3% of the
20 revenue realized from the tax imposed by this Section, and
21 the remaining such revenue shall be paid as provided for in
22 Section 9 of the Use Tax Act. Beginning July 1, 1999 and
23 each month thereafter, the Department shall pay into the Tax
24 Compliance and Administration Fund 1% of the revenue realized
25 from the tax imposed by this Section, and the remaining such
26 revenue shall be paid as provided for in Section 9 of the Use
27 Tax Act.
28 The Department shall have full power to administer and
29 enforce this Section; to collect all taxes, penalties and
30 interest due hereunder; to dispose of taxes, penalties and
31 interest so collected in the manner hereinafter provided, and
32 to determine all rights to credit memoranda or refunds
33 arising on account of the erroneous payment of tax, penalty
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1 or interest hereunder. In the administration of, and
2 compliance with, this Section, the Department and persons who
3 are subject to this Section shall have the same rights,
4 remedies, privileges, immunities, powers and duties, and be
5 subject to the same conditions, restrictions, limitations,
6 penalties and definitions of terms, and employ the same modes
7 of procedure, as are prescribed in Sections 2, 3 through
8 3-80, 4, 6, 7, 8, 9 (except provisions relating to
9 transactions returns and quarter monthly payments), 10, 11,
10 12, 12a, 12b, 13, 14, 15, 19, 20, 21 and 22 of the Use Tax
11 Act, and are not inconsistent with this Section, as fully as
12 if those provisions were set forth herein. For purposes of
13 this Section, references in such incorporated Sections of the
14 Use Tax Act to users or purchasers means lessees of
15 automobiles under leases subject to this Act.
16 Section 25. Use tax collected. The use tax imposed by
17 Section 20 shall be collected from the lessee and remitted to
18 the Department by a lessor maintaining a place of business in
19 this State or who titles or registers an automobile with an
20 agency of this State's government that is used for leasing in
21 this State.
22 The use tax imposed by Section 20 and not paid to a
23 lessor pursuant to the preceding paragraph of this Section
24 shall be paid to the Department directly by any person using
25 such automobile within this State.
26 Lessors shall collect the tax from lessees by adding the
27 tax to the leasing price of the automobile, when leased for
28 use, in the manner prescribed by the Department. The
29 Department shall have the power to adopt and promulgate
30 reasonable rules and regulations for the adding of such tax
31 by lessors to leasing prices by prescribing bracket systems
32 for the purpose of enabling such lessors to add and collect,
33 as far as practicable, the amount of such tax.
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1 The tax imposed by this Section shall, when collected, be
2 stated as a distinct item on the customer's bill, separate
3 and apart from the leasing price of the automobile.
4 Section 30. Severability clause. If any clause,
5 sentence, Section, provision or part thereof of this Act or
6 the application thereof to any person or circumstance shall
7 be adjudged to be unconstitutional, the remainder of this Act
8 or its application to persons or circumstances other than
9 those to which it is held invalid, shall not be affected
10 thereby. In particular, if any provision which exempts or
11 has the effect of exempting some class of users or some kind
12 of use from the tax imposed by this Act should be held to
13 constitute or to result in an invalid classification or to be
14 unconstitutional for some other reason, such provision shall
15 be deemed to be severable with the remainder of this Act
16 without said provision being held constitutional.
17 Section 80. The State Finance Act is amended by changing
18 Sections 6z-18 and 6z-20 as follows:
19 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
20 Sec. 6z-18. A portion of the money paid into the Local
21 Government Tax Fund from sales of food for human consumption
22 which is to be consumed off the premises where it is sold
23 (other than alcoholic beverages, soft drinks and food which
24 has been prepared for immediate consumption) and prescription
25 and nonprescription medicines, drugs, medical appliances and
26 insulin, urine testing materials, syringes and needles used
27 by diabetics, which occurred in municipalities, shall be
28 distributed to each municipality based upon the sales which
29 occurred in that municipality. The remainder shall be
30 distributed to each county based upon the sales which
31 occurred in the unincorporated area of that county.
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1 A portion of the money paid into the Local Government Tax
2 Fund from the 6.25% general use tax rate on the selling price
3 of tangible personal property which is purchased outside
4 Illinois at retail from a retailer and which is titled or
5 registered by any agency of this State's government shall be
6 distributed to municipalities as provided in this paragraph.
7 Each municipality shall receive the amount attributable to
8 sales for which Illinois addresses for titling or
9 registration purposes are given as being in such
10 municipality. The remainder of the money paid into the Local
11 Government Tax Fund from such sales shall be distributed to
12 counties. Each county shall receive the amount attributable
13 to sales for which Illinois addresses for titling or
14 registration purposes are given as being located in the
15 unincorporated area of such county.
16 A portion of the money paid into the Local Government Tax
17 Fund from the 1.25% rate imposed under the Use Tax Act upon
18 the selling price of any motor vehicle that is purchased
19 outside of Illinois at retail by a lessor for purposes of
20 leasing under a lease subject to the Automobile Leasing
21 Occupation and Use Tax Act which is titled or registered by
22 any agency of this State's government shall be distributed as
23 provided in this paragraph, less 3% for the first 12 monthly
24 distributions and 1% for each monthly distribution
25 thereafter, which sum shall be paid into the Tax Compliance
26 and Administration Fund. Each municipality shall receive the
27 amount attributable to sales for which Illinois addresses for
28 titling or 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
33 registration purposes are given as being located in the
34 unincorporated area of such county.
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1 A portion of the money paid into the Local Government Tax
2 Fund from the 6.25% general rate on sales subject to taxation
3 under the Retailers' Occupation Tax Act and the Service
4 Occupation Tax Act, which occurred in municipalities, 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 A portion of the money paid into the Local Government Tax
10 Fund from the 1.25% rate imposed by the Retailers' Occupation
11 Tax Act upon the sale of any motor vehicle that is sold at
12 retail to a lessor for purposes of leasing under a lease
13 subject to the Automobile Leasing Occupation and Use Tax Act
14 shall be distributed as provided in this paragraph, less 3%
15 for the first 12 monthly distributions and 1% for each
16 monthly distribution thereafter, which sum shall be paid into
17 the Tax Compliance and Administration Fund. The funds shall
18 be distributed to each municipality, based upon the sales
19 which occurred in that municipality. The remainder shall be
20 distributed to each county, based upon the sales which
21 occurred in the unincorporated area of such county.
22 Whenever the Department determines that a refund of money
23 paid into the Local Government Tax Fund should be made to a
24 claimant instead of issuing a credit memorandum, the
25 Department shall notify the State Comptroller, who shall
26 cause the order to be drawn for the amount specified, and to
27 the person named, in such notification from the Department.
28 Such refund shall be paid by the State Treasurer out of the
29 Local Government Tax Fund.
30 On or before the 25th day of each calendar month, the
31 Department shall prepare and certify to the Comptroller the
32 disbursement of stated sums of money to named municipalities
33 and counties, the municipalities and counties to be those
34 entitled to distribution of taxes or penalties paid to the
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1 Department during the second preceding calendar month. The
2 amount to be paid to each municipality or county shall be the
3 amount (not including credit memoranda) collected during the
4 second preceding calendar month by the Department and paid
5 into the Local Government Tax Fund, plus an amount the
6 Department determines is necessary to offset any amounts
7 which were erroneously paid to a different taxing body, and
8 not including an amount equal to the amount of refunds made
9 during the second preceding calendar month by the Department,
10 and not including any amount which the Department determines
11 is necessary to offset any amounts which are payable to a
12 different taxing body but were erroneously paid to the
13 municipality or county. Within 10 days after receipt, by the
14 Comptroller, of the disbursement certification to the
15 municipalities and counties, provided for in this Section to
16 be given to the Comptroller by the Department, the
17 Comptroller shall cause the orders to be drawn for the
18 respective amounts in accordance with the directions
19 contained in such certification.
20 When certifying the amount of monthly disbursement to a
21 municipality or county under this Section, the Department
22 shall increase or decrease that amount by an amount necessary
23 to offset any misallocation of previous disbursements. The
24 offset amount shall be the amount erroneously disbursed
25 within the 6 months preceding the time a misallocation is
26 discovered.
27 The provisions directing the distributions from the
28 special fund in the State Treasury provided for in this
29 Section shall constitute an irrevocable and continuing
30 appropriation of all amounts as provided herein. The State
31 Treasurer and State Comptroller are hereby authorized to make
32 distributions as provided in this Section.
33 In construing any development, redevelopment, annexation,
34 preannexation or other lawful agreement in effect prior to
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1 September 1, 1990, which describes or refers to receipts from
2 a county or municipal retailers' occupation tax, use tax or
3 service occupation tax which now cannot be imposed, such
4 description or reference shall be deemed to include the
5 replacement revenue for such abolished taxes, distributed
6 from the Local Government Tax Fund.
7 (Source: P.A. 86-928; 86-1481.)
8 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
9 Sec. 6z-20. Of the money received from the 6.25% general
10 rate on sales subject to taxation under the Retailers'
11 Occupation Tax Act and Service Occupation Tax Act and paid
12 into the County and Mass Transit District Fund, distribution
13 to the Regional Transportation Authority tax fund, created
14 pursuant to Section 4.03 of the Regional Transportation
15 Authority Act, for deposit therein shall be made based upon
16 the retail sales occurring in a county having more than
17 3,000,000 inhabitants. The remainder shall be distributed to
18 each county having 3,000,000 or fewer inhabitants based upon
19 the retail sales occurring in each such county.
20 Of the money received from the 1.25% rate imposed by the
21 Retailers' Occupation Tax Act upon the sale of any motor
22 vehicle that is sold at retail to a lessor for purposes of
23 leasing under a lease subject to the Automobile Leasing
24 Occupation and Use Tax Act, and paid into the County and Mass
25 Transit District Fund shall be distributed as provided in
26 this paragraph, less 3% for the first 12 monthly
27 distributions and 1% for each monthly distribution
28 thereafter, which sum shall be paid into the Tax Compliance
29 and Administration Fund. Distribution to the Regional
30 Transportation Authority tax fund, created pursuant to
31 Section 4.03 of the Regional Transportation Authority Act,
32 for deposit therein shall be made based upon the retail sales
33 occurring in a county having more than 3,000,000 inhabitants.
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1 The remainder shall be distributed to each county having
2 3,000,000 or fewer inhabitants based upon the retail sales
3 occurring in each such county.
4 Of the money received from the 6.25% general use tax rate
5 on tangible personal property which is purchased outside
6 Illinois at retail from a retailer and which is titled or
7 registered by any agency of this State's government and paid
8 into the County and Mass Transit District Fund, the amount
9 for which Illinois addresses for titling or registration
10 purposes are given as being in each county having more than
11 3,000,000 inhabitants shall be distributed into the Regional
12 Transportation Authority tax fund, created pursuant to
13 Section 4.03 of the Regional Transportation Authority Act.
14 The remainder of the money paid from such sales shall be
15 distributed to each county based on sales for which Illinois
16 addresses for titling or registration purposes are given as
17 being located in the county. Any money paid into the
18 Regional Transportation Authority Occupation and Use Tax
19 Replacement Fund from the County and Mass Transit District
20 Fund prior to January 14, 1991, which has not been paid to
21 the Authority prior to that date, shall be transferred to the
22 Regional Transportation Authority tax fund.
23 Of the money received from the 1.25% rate imposed under
24 the Use Tax Act upon the selling price of any motor vehicle
25 that is purchased outside of Illinois at retail by a lessor
26 for purposes of leasing under a lease subject to the
27 Automobile Leasing Occupation and Use Tax Act which is titled
28 or registered by any agency of this State's government and is
29 paid into the County and Mass Transit District Fund, shall be
30 distributed as provided in this paragraph, less 3% for the
31 first 12 monthly distributions and 1% for each monthly
32 distribution thereafter, which sum shall be paid into the Tax
33 Compliance and Administration Fund. The amount for which
34 Illinois addresses for titling or registration purposes are
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1 given as being in each county having more than 3,000,000
2 inhabitants shall be distributed into the Regional
3 Transportation Authority tax fund, created pursuant to
4 Section 4.03 of the Regional Transportation Authority Act.
5 The remainder of the moneys paid from such sales shall be
6 distributed to each county based on sales for which Illinois
7 addresses for titling or registration purposes are given as
8 being located in that county.
9 Whenever the Department determines that a refund of money
10 paid into the County and Mass Transit District Fund should be
11 made to a claimant instead of issuing a credit memorandum,
12 the 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 County and Mass Transit District 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 the Regional
20 Transportation Authority and to named counties, the counties
21 to be those entitled to distribution, as hereinabove
22 provided, of taxes or penalties paid to the Department during
23 the second preceding calendar month. The amount to be paid
24 to the Regional Transportation Authority and each county
25 having 3,000,000 or fewer inhabitants shall be the amount
26 (not including credit memoranda) collected during the second
27 preceding calendar month by the Department and paid into the
28 County and Mass Transit District Fund, plus an amount the
29 Department determines is necessary to offset any amounts
30 which were erroneously paid to a different taxing body, and
31 not including an amount equal to the amount of refunds made
32 during the second preceding calendar month by the Department,
33 and not including any amount which the Department determines
34 is necessary to offset any amounts which were payable to a
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1 different taxing body but were erroneously paid to the
2 Regional Transportation Authority or county. Within 10 days
3 after receipt, by the Comptroller, of the disbursement
4 certification to the Regional Transportation Authority and
5 counties, provided for in this Section to be given to the
6 Comptroller by the Department, the Comptroller shall cause
7 the orders to be drawn for the respective amounts in
8 accordance with the directions contained in such
9 certification.
10 When certifying the amount of a monthly disbursement to
11 the Regional Transportation Authority or to a county under
12 this Section, the Department shall increase or decrease that
13 amount by an amount necessary to offset any misallocation of
14 previous disbursements. The offset amount shall be the
15 amount erroneously disbursed within the 6 months preceding
16 the time a misallocation is discovered.
17 The provisions directing the distributions from the
18 special fund in the State Treasury provided for in this
19 Section and from the Regional Transportation Authority tax
20 fund created by Section 4.03 of the Regional Transportation
21 Authority Act shall constitute an irrevocable and continuing
22 appropriation of all amounts as provided herein. The State
23 Treasurer and State Comptroller are hereby authorized to make
24 distributions as provided in this Section.
25 In construing any development, redevelopment, annexation,
26 preannexation or other lawful agreement in effect prior to
27 September 1, 1990, which describes or refers to receipts from
28 a county or municipal retailers' occupation tax, use tax or
29 service occupation tax which now cannot be imposed, such
30 description or reference shall be deemed to include the
31 replacement revenue for such abolished taxes, distributed
32 from the County and Mass Transit District Fund or Local
33 Government Distributive Fund, as the case may be.
34 (Source: P.A. 86-928; 86-1481; 87-435.)
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1 Section 85. The Use Tax Act is amended by changing
2 Sections 1a, 3-10, and 9 as follows:
3 (35 ILCS 105/1a) (from Ch. 120, par. 439.1a)
4 Sec. 1a. A person who is engaged in the business of
5 leasing or renting motor vehicles to others and who, in
6 connection with such business sells any used motor vehicle to
7 a purchaser for his use and not for the purpose of resale, is
8 a retailer engaged in the business of selling tangible
9 personal property at retail under this Act to the extent of
10 the value of the vehicle sold. For the purpose of this
11 Section, "motor vehicle" means any motor vehicle of the first
12 division, a motor vehicle of the second division which is a
13 self-contained motor vehicle designed or permanently
14 converted to provide living quarters for recreational,
15 camping or travel use, with direct walk through access to the
16 living quarters from the driver's seat, or a motor vehicle of
17 a second division which is of the van configuration designed
18 for the transportation of not less than 7 nor more than 16
19 passengers, as defined in Section 1-146 of the Illinois
20 Vehicle Code. For the purpose of this Section, "motor
21 vehicle" has the meaning prescribed in Section 1-157 of The
22 Illinois Vehicle Code, as now or hereafter amended. (Nothing
23 provided herein shall affect liability incurred under this
24 Act because of the use of such motor vehicles as a lessor.)
25 (Source: P.A. 80-598.)
26 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
27 Sec. 3-10. Rate of tax. Unless otherwise provided in
28 this Section, the tax imposed by this Act is at the rate of
29 6.25% of either the selling price or the fair market value,
30 if any, of the tangible personal property. In all cases
31 where property functionally used or consumed is the same as
32 the property that was purchased at retail, then the tax is
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1 imposed on the selling price of the property. In all cases
2 where property functionally used or consumed is a by-product
3 or waste product that has been refined, manufactured, or
4 produced from property purchased at retail, then the tax is
5 imposed on the lower of the fair market value, if any, of the
6 specific property so used in this State or on the selling
7 price of the property purchased at retail. For purposes of
8 this Section "fair market value" means the price at which
9 property would change hands between a willing buyer and a
10 willing seller, neither being under any compulsion to buy or
11 sell and both having reasonable knowledge of the relevant
12 facts. The fair market value shall be established by Illinois
13 sales by the taxpayer of the same property as that
14 functionally used or consumed, or if there are no such sales
15 by the taxpayer, then comparable sales or purchases of
16 property of like kind and character in Illinois.
17 With respect to gasohol, the tax imposed by this Act
18 applies to 70% of the proceeds of sales made on or after
19 January 1, 1990, and before July 1, 1999, and to 100% of the
20 proceeds of sales made thereafter, except that from July 1,
21 1997 to July 1, 1999, the rate shall be 85% for gasohol sold
22 in this State during the 12 months beginning July 1 following
23 any calendar year for which the Department has determined
24 that the percentages in Section 10 of the Gasohol Fuels Tax
25 Abatement Act have not been met.
26 With respect to food for human consumption that is to be
27 consumed off the premises where it is sold (other than
28 alcoholic beverages, soft drinks, and food that has been
29 prepared for immediate consumption) and prescription and
30 nonprescription medicines, drugs, medical appliances,
31 modifications to a motor vehicle for the purpose of rendering
32 it usable by a disabled person, and insulin, urine testing
33 materials, syringes, and needles used by diabetics, for human
34 use, the tax is imposed at the rate of 1%. For the purposes
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1 of this Section, the term "soft drinks" means any complete,
2 finished, ready-to-use, non-alcoholic drink, whether
3 carbonated or not, including but not limited to soda water,
4 cola, fruit juice, vegetable juice, carbonated water, and all
5 other preparations commonly known as soft drinks of whatever
6 kind or description that are contained in any closed or
7 sealed bottle, can, carton, or container, regardless of size.
8 "Soft drinks" does not include coffee, tea, non-carbonated
9 water, infant formula, milk or milk products as defined in
10 the Grade A Pasteurized Milk and Milk Products Act, or drinks
11 containing 50% or more natural fruit or vegetable juice.
12 Notwithstanding any other provisions of this Act, "food
13 for human consumption that is to be consumed off the premises
14 where it is sold" includes all food sold through a vending
15 machine, except soft drinks and food products that are
16 dispensed hot from a vending machine, regardless of the
17 location of the vending machine.
18 With respect to any motor vehicle (as the term "motor
19 vehicle" is defined in Section 1a of this Act) that is
20 purchased by a lessor for purposes of leasing under a lease
21 subject to the Automobile Leasing Occupation and Use Tax Act,
22 the tax is imposed at the rate of 1.25%.
23 With respect to any motor vehicle (as the term "motor
24 vehicle" is defined in Section 1a of this Act) that has been
25 leased by a lessor to a lessee under a lease that is subject
26 to the Automobile Leasing Occupation and Use Tax Act, and is
27 subsequently purchased by the lessee of such vehicle, the tax
28 is imposed at at the rate of 5%.
29 If the property that is purchased at retail from a
30 retailer is acquired outside Illinois and used outside
31 Illinois before being brought to Illinois for use here and is
32 taxable under this Act, the "selling price" on which the tax
33 is computed shall be reduced by an amount that represents a
34 reasonable allowance for depreciation for the period of prior
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1 out-of-state use.
2 (Source: P.A. 88-45; 89-359, eff. 8-17-95; 89-420, eff.
3 6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
4 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
5 Sec. 9. Except as to motor vehicles, watercraft,
6 aircraft, and trailers that are required to be registered
7 with an agency of this State, each retailer required or
8 authorized to collect the tax imposed by this Act shall pay
9 to the Department the amount of such tax (except as otherwise
10 provided) at the time when he is required to file his return
11 for the period during which such tax was collected, less a
12 discount of 2.1% prior to January 1, 1990, and 1.75% on and
13 after January 1, 1990, or $5 per calendar year, whichever is
14 greater, which is allowed to reimburse the retailer for
15 expenses incurred in collecting the tax, keeping records,
16 preparing and filing returns, remitting the tax and supplying
17 data to the Department on request. In the case of retailers
18 who report and pay the tax on a transaction by transaction
19 basis, as provided in this Section, such discount shall be
20 taken with each such tax remittance instead of when such
21 retailer files his periodic return. A retailer need not
22 remit that part of any tax collected by him to the extent
23 that he is required to remit and does remit the tax imposed
24 by the Retailers' Occupation Tax Act, with respect to the
25 sale of the same property.
26 Where such tangible personal property is sold under a
27 conditional sales contract, or under any other form of sale
28 wherein the payment of the principal sum, or a part thereof,
29 is extended beyond the close of the period for which the
30 return is filed, the retailer, in collecting the tax (except
31 as to motor vehicles, watercraft, aircraft, and trailers that
32 are required to be registered with an agency of this State),
33 may collect for each tax return period, only the tax
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1 applicable to that part of the selling price actually
2 received during such tax return period.
3 Except as provided in this Section, on or before the
4 twentieth day of each calendar month, such retailer shall
5 file a return for the preceding calendar month. Such return
6 shall be filed on forms prescribed by the Department and
7 shall furnish such information as the Department may
8 reasonably require.
9 The Department may require returns to be filed on a
10 quarterly basis. If so required, a return for each calendar
11 quarter shall be filed on or before the twentieth day of the
12 calendar month following the end of such calendar quarter.
13 The taxpayer shall also file a return with the Department for
14 each of the first two months of each calendar quarter, on or
15 before the twentieth day of the following calendar month,
16 stating:
17 1. The name of the seller;
18 2. The address of the principal place of business
19 from which he engages in the business of selling tangible
20 personal property at retail in this State;
21 3. The total amount of taxable receipts received by
22 him during the preceding calendar month from sales of
23 tangible personal property by him during such preceding
24 calendar month, including receipts from charge and time
25 sales, but less all deductions allowed by law;
26 4. The amount of credit provided in Section 2d of
27 this Act;
28 5. The amount of tax due;
29 5-5. The signature of the taxpayer; and
30 6. Such other reasonable information as the
31 Department may require.
32 If a taxpayer fails to sign a return within 30 days after
33 the proper notice and demand for signature by the Department,
34 the return shall be considered valid and any amount shown to
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1 be due on the return shall be deemed assessed.
2 Beginning October 1, 1993, a taxpayer who has an average
3 monthly tax liability of $150,000 or more shall make all
4 payments required by rules of the Department by electronic
5 funds transfer. Beginning October 1, 1994, a taxpayer who has
6 an average monthly tax liability of $100,000 or more shall
7 make all payments required by rules of the Department by
8 electronic funds transfer. Beginning October 1, 1995, a
9 taxpayer who has an average monthly tax liability of $50,000
10 or more shall make all payments required by rules of the
11 Department by electronic funds transfer. The term "average
12 monthly tax liability" means the sum of the taxpayer's
13 liabilities under this Act, and under all other State and
14 local occupation and use tax laws administered by the
15 Department, for the immediately preceding calendar year
16 divided by 12.
17 Before August 1 of each year beginning in 1993, the
18 Department shall notify all taxpayers required to make
19 payments by electronic funds transfer. All taxpayers required
20 to make payments by electronic funds transfer shall make
21 those payments for a minimum of one year beginning on October
22 1.
23 Any taxpayer not required to make payments by electronic
24 funds transfer may make payments by electronic funds transfer
25 with the permission of the Department.
26 All taxpayers required to make payment by electronic
27 funds transfer and any taxpayers authorized to voluntarily
28 make payments by electronic funds transfer shall make those
29 payments in the manner authorized by the Department.
30 The Department shall adopt such rules as are necessary to
31 effectuate a program of electronic funds transfer and the
32 requirements of this Section.
33 If the taxpayer's average monthly tax liability to the
34 Department under this Act, the Retailers' Occupation Tax Act,
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1 the Service Occupation Tax Act, the Service Use Tax Act was
2 $10,000 or more during the preceding 4 complete calendar
3 quarters, he shall file a return with the Department each
4 month by the 20th day of the month next following the month
5 during which such tax liability is incurred and shall make
6 payments to the Department on or before the 7th, 15th, 22nd
7 and last day of the month during which such liability is
8 incurred. If the month during which such tax liability is
9 incurred began prior to January 1, 1985, each payment shall
10 be in an amount equal to 1/4 of the taxpayer's actual
11 liability for the month or an amount set by the Department
12 not to exceed 1/4 of the average monthly liability of the
13 taxpayer to the Department for the preceding 4 complete
14 calendar quarters (excluding the month of highest liability
15 and the month of lowest liability in such 4 quarter period).
16 If the month during which such tax liability is incurred
17 begins on or after January 1, 1985, and prior to January 1,
18 1987, each payment shall be in an amount equal to 22.5% of
19 the taxpayer's actual liability for the month or 27.5% of the
20 taxpayer's liability for the same calendar month of the
21 preceding year. If the month during which such tax liability
22 is incurred begins on or after January 1, 1987, and prior to
23 January 1, 1988, each payment shall be in an amount equal to
24 22.5% of the taxpayer's actual liability for the month or
25 26.25% of the taxpayer's liability for the same calendar
26 month of the preceding year. If the month during which such
27 tax liability is incurred begins on or after January 1, 1988,
28 and prior to January 1, 1989, or begins on or after January
29 1, 1996, each payment shall be in an amount equal to 22.5% of
30 the taxpayer's actual liability for the month or 25% of the
31 taxpayer's liability for the same calendar month of the
32 preceding year. If the month during which such tax liability
33 is incurred begins on or after January 1, 1989, and prior to
34 January 1, 1996, each payment shall be in an amount equal to
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1 22.5% of the taxpayer's actual liability for the month or 25%
2 of the taxpayer's liability for the same calendar month of
3 the preceding year or 100% of the taxpayer's actual liability
4 for the quarter monthly reporting period. The amount of such
5 quarter monthly payments shall be credited against the final
6 tax liability of the taxpayer's return for that month. Once
7 applicable, the requirement of the making of quarter monthly
8 payments to the Department shall continue until such
9 taxpayer's average monthly liability to the Department during
10 the preceding 4 complete calendar quarters (excluding the
11 month of highest liability and the month of lowest liability)
12 is less than $9,000, or until such taxpayer's average monthly
13 liability to the Department as computed for each calendar
14 quarter of the 4 preceding complete calendar quarter period
15 is less than $10,000. However, if a taxpayer can show the
16 Department that a substantial change in the taxpayer's
17 business has occurred which causes the taxpayer to anticipate
18 that his average monthly tax liability for the reasonably
19 foreseeable future will fall below $10,000, then such
20 taxpayer may petition the Department for change in such
21 taxpayer's reporting status. The Department shall change
22 such taxpayer's reporting status unless it finds that such
23 change is seasonal in nature and not likely to be long term.
24 If any such quarter monthly payment is not paid at the time
25 or in the amount required by this Section, then the
26 taxpayer's 2.1% or 1.75% vendors' discount shall be reduced
27 by 2.1% or 1.75%, as the case may be, of the difference
28 between the minimum amount due and the amount of such quarter
29 monthly payment actually and timely paid and the taxpayer
30 shall be liable for penalties and interest on such
31 difference, except insofar as the taxpayer has previously
32 made payments for that month to the Department in excess of
33 the minimum payments previously due as provided in this
34 Section. The Department shall make reasonable rules and
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1 regulations to govern the quarter monthly payment amount and
2 quarter monthly payment dates for taxpayers who file on other
3 than a calendar monthly basis.
4 If any such payment provided for in this Section exceeds
5 the taxpayer's liabilities under this Act, the Retailers'
6 Occupation Tax Act, the Service Occupation Tax Act and the
7 Service Use Tax Act, as shown by an original monthly return,
8 the Department shall issue to the taxpayer a credit
9 memorandum no later than 30 days after the date of payment,
10 which memorandum may be submitted by the taxpayer to the
11 Department in payment of tax liability subsequently to be
12 remitted by the taxpayer to the Department or be assigned by
13 the taxpayer to a similar taxpayer under this Act, the
14 Retailers' Occupation Tax Act, the Service Occupation Tax Act
15 or the Service Use Tax Act, in accordance with reasonable
16 rules and regulations to be prescribed by the Department,
17 except that if such excess payment is shown on an original
18 monthly return and is made after December 31, 1986, no credit
19 memorandum shall be issued, unless requested by the taxpayer.
20 If no such request is made, the taxpayer may credit such
21 excess payment against tax liability subsequently to be
22 remitted by the taxpayer to the Department under this Act,
23 the Retailers' Occupation Tax Act, the Service Occupation Tax
24 Act or the Service Use Tax Act, in accordance with reasonable
25 rules and regulations prescribed by the Department. If the
26 Department subsequently determines that all or any part of
27 the credit taken was not actually due to the taxpayer, the
28 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
29 by 2.1% or 1.75% of the difference between the credit taken
30 and that actually due, and the taxpayer shall be liable for
31 penalties and interest on such difference.
32 If the retailer is otherwise required to file a monthly
33 return and if the retailer's average monthly tax liability to
34 the Department does not exceed $200, the Department may
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1 authorize his returns to be filed on a quarter annual basis,
2 with the return for January, February, and March of a given
3 year being due by April 20 of such year; with the return for
4 April, May and June of a given year being due by July 20 of
5 such year; with the return for July, August and September of
6 a given year being due by October 20 of such year, and with
7 the return for October, November and December of a given year
8 being due by January 20 of the following year.
9 If the retailer is otherwise required to file a monthly
10 or quarterly return and if the retailer's average monthly tax
11 liability to the Department does not exceed $50, the
12 Department may authorize his returns to be filed on an annual
13 basis, with the return for a given year being due by January
14 20 of the following year.
15 Such quarter annual and annual returns, as to form and
16 substance, shall be subject to the same requirements as
17 monthly returns.
18 Notwithstanding any other provision in this Act
19 concerning the time within which a retailer may file his
20 return, in the case of any retailer who ceases to engage in a
21 kind of business which makes him responsible for filing
22 returns under this Act, such retailer shall file a final
23 return under this Act with the Department not more than one
24 month after discontinuing such business.
25 In addition, with respect to motor vehicles, watercraft,
26 aircraft, and trailers that are required to be registered
27 with an agency of this State, every retailer selling this
28 kind of tangible personal property shall file, with the
29 Department, upon a form to be prescribed and supplied by the
30 Department, a separate return for each such item of tangible
31 personal property which the retailer sells, except that
32 where, in the same transaction, a retailer of aircraft,
33 watercraft, motor vehicles or trailers transfers more than
34 one aircraft, watercraft, motor vehicle or trailer to another
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1 aircraft, watercraft, motor vehicle or trailer retailer for
2 the purpose of resale, that seller for resale may report the
3 transfer of all the aircraft, watercraft, motor vehicles or
4 trailers involved in that transaction to the Department on
5 the same uniform invoice-transaction reporting return form.
6 For purposes of this Section, "watercraft" means a Class 2,
7 Class 3, or Class 4 watercraft as defined in Section 3-2 of
8 the Boat Registration and Safety Act, a personal watercraft,
9 or any boat equipped with an inboard motor.
10 The transaction reporting return in the case of motor
11 vehicles or trailers that are required to be registered with
12 an agency of this State, shall be the same document as the
13 Uniform Invoice referred to in Section 5-402 of the Illinois
14 Vehicle Code and must show the name and address of the
15 seller; the name and address of the purchaser; the amount of
16 the selling price including the amount allowed by the
17 retailer for traded-in property, if any; the amount allowed
18 by the retailer for the traded-in tangible personal property,
19 if any, to the extent to which Section 2 of this Act allows
20 an exemption for the value of traded-in property; the balance
21 payable after deducting such trade-in allowance from the
22 total selling price; the amount of tax due from the retailer
23 with respect to such transaction; the amount of tax collected
24 from the purchaser by the retailer on such transaction (or
25 satisfactory evidence that such tax is not due in that
26 particular instance, if that is claimed to be the fact); the
27 place and date of the sale; a sufficient identification of
28 the property sold; such other information as is required in
29 Section 5-402 of the Illinois Vehicle Code, and such other
30 information as the Department may reasonably require.
31 The transaction reporting return in the case of
32 watercraft and aircraft must show the name and address of the
33 seller; the name and address of the purchaser; the amount of
34 the selling price including the amount allowed by the
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1 retailer for traded-in property, if any; the amount allowed
2 by the retailer for the traded-in tangible personal property,
3 if any, to the extent to which Section 2 of this Act allows
4 an exemption for the value of traded-in property; the balance
5 payable after deducting such trade-in allowance from the
6 total selling price; the amount of tax due from the retailer
7 with respect to such transaction; the amount of tax collected
8 from the purchaser by the retailer on such transaction (or
9 satisfactory evidence that such tax is not due in that
10 particular instance, if that is claimed to be the fact); the
11 place and date of the sale, a sufficient identification of
12 the property sold, and such other information as the
13 Department may reasonably require.
14 Such transaction reporting return shall be filed not
15 later than 20 days after the date of delivery of the item
16 that is being sold, but may be filed by the retailer at any
17 time sooner than that if he chooses to do so. The
18 transaction reporting return and tax remittance or proof of
19 exemption from the tax that is imposed by this Act may be
20 transmitted to the Department by way of the State agency with
21 which, or State officer with whom, the tangible personal
22 property must be titled or registered (if titling or
23 registration is required) if the Department and such agency
24 or State officer determine that this procedure will expedite
25 the processing of applications for title or registration.
26 With each such transaction reporting return, the retailer
27 shall remit the proper amount of tax due (or shall submit
28 satisfactory evidence that the sale is not taxable if that is
29 the case), to the Department or its agents, whereupon the
30 Department shall issue, in the purchaser's name, a tax
31 receipt (or a certificate of exemption if the Department is
32 satisfied that the particular sale is tax exempt) which such
33 purchaser may submit to the agency with which, or State
34 officer with whom, he must title or register the tangible
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1 personal property that is involved (if titling or
2 registration is required) in support of such purchaser's
3 application for an Illinois certificate or other evidence of
4 title or registration to such tangible personal property.
5 No retailer's failure or refusal to remit tax under this
6 Act precludes a user, who has paid the proper tax to the
7 retailer, from obtaining his certificate of title or other
8 evidence of title or registration (if titling or registration
9 is required) upon satisfying the Department that such user
10 has paid the proper tax (if tax is due) to the retailer. The
11 Department shall adopt appropriate rules to carry out the
12 mandate of this paragraph.
13 If the user who would otherwise pay tax to the retailer
14 wants the transaction reporting return filed and the payment
15 of tax or proof of exemption made to the Department before
16 the retailer is willing to take these actions and such user
17 has not paid the tax to the retailer, such user may certify
18 to the fact of such delay by the retailer, and may (upon the
19 Department being satisfied of the truth of such
20 certification) transmit the information required by the
21 transaction reporting return and the remittance for tax or
22 proof of exemption directly to the Department and obtain his
23 tax receipt or exemption determination, in which event the
24 transaction reporting return and tax remittance (if a tax
25 payment was required) shall be credited by the Department to
26 the proper retailer's account with the Department, but
27 without the 2.1% or 1.75% discount provided for in this
28 Section being allowed. When the user pays the tax directly
29 to the Department, he shall pay the tax in the same amount
30 and in the same form in which it would be remitted if the tax
31 had been remitted to the Department by the retailer.
32 Where a retailer collects the tax with respect to the
33 selling price of tangible personal property which he sells
34 and the purchaser thereafter returns such tangible personal
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1 property and the retailer refunds the selling price thereof
2 to the purchaser, such retailer shall also refund, to the
3 purchaser, the tax so collected from the purchaser. When
4 filing his return for the period in which he refunds such tax
5 to the purchaser, the retailer may deduct the amount of the
6 tax so refunded by him to the purchaser from any other use
7 tax which such retailer may be required to pay or remit to
8 the Department, as shown by such return, if the amount of the
9 tax to be deducted was previously remitted to the Department
10 by such retailer. If the retailer has not previously
11 remitted the amount of such tax to the Department, he is
12 entitled to no deduction under this Act upon refunding such
13 tax to the purchaser.
14 Any retailer filing a return under this Section shall
15 also include (for the purpose of paying tax thereon) the
16 total tax covered by such return upon the selling price of
17 tangible personal property purchased by him at retail from a
18 retailer, but as to which the tax imposed by this Act was not
19 collected from the retailer filing such return, and such
20 retailer shall remit the amount of such tax to the Department
21 when filing such return.
22 If experience indicates such action to be practicable,
23 the Department may prescribe and furnish a combination or
24 joint return which will enable retailers, who are required to
25 file returns hereunder and also under the Retailers'
26 Occupation Tax Act, to furnish all the return information
27 required by both Acts on the one form.
28 Where the retailer has more than one business registered
29 with the Department under separate registration under this
30 Act, such retailer may not file each return that is due as a
31 single return covering all such registered businesses, but
32 shall file separate returns for each such registered
33 business.
34 Beginning January 1, 1990, each month the Department
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1 shall pay into the State and Local Sales Tax Reform Fund, a
2 special fund in the State Treasury which is hereby created,
3 the net revenue realized for the preceding month from the 1%
4 tax on sales of food for human consumption which is to be
5 consumed off the premises where it is sold (other than
6 alcoholic beverages, soft drinks and food which has been
7 prepared for immediate consumption) and prescription and
8 nonprescription medicines, drugs, medical appliances and
9 insulin, urine testing materials, syringes and needles used
10 by diabetics.
11 Beginning January 1, 1990, each month the Department
12 shall pay into the County and Mass Transit District Fund 4%
13 of the net revenue realized for the preceding month from the
14 6.25% general rate on the selling price of tangible personal
15 property which is purchased outside Illinois at retail from a
16 retailer and which is titled or registered by an agency of
17 this State's government.
18 Each month the Department shall pay into the County and
19 Mass Transit District Fund 20% the net revenue realized for
20 the preceding month from the 1.25% rate imposed upon the
21 selling price of any motor vehicle that is purchased outside
22 Illinois at retail by a lessor for purposes of leasing under
23 a lease subject to the Automobile Leasing Occupation and Use
24 Tax Act and which is titled or registered by an agency of
25 this State's government.
26 Beginning January 1, 1990, each month the Department
27 shall pay into the State and Local Sales Tax Reform Fund, a
28 special fund in the State Treasury, 20% of the net revenue
29 realized for the preceding month from the 6.25% general rate
30 on the selling price of tangible personal property, other
31 than tangible personal property which is purchased outside
32 Illinois at retail from a retailer and which is titled or
33 registered by an agency of this State's government.
34 Beginning January 1, 1990, each month the Department
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1 shall pay into the Local Government Tax Fund 16% of the net
2 revenue realized for the preceding month from the 6.25%
3 general rate on the selling price of tangible personal
4 property which is purchased outside Illinois at retail from a
5 retailer and which is titled or registered by an agency of
6 this State's government.
7 Each month the Department shall pay into the Local
8 Government Tax Fund 80% of the net revenue realized for the
9 preceding month from the 1.25% rate imposed upon the selling
10 price of any motor vehicle that is purchased outside Illinois
11 at retail by a lessor for purposes of leasing under a lease
12 subject to the Automobile Leasing Occupation and Use Tax Act
13 and which is titled or registered by an agency of this
14 State's government.
15 Of the remainder of the moneys received by the Department
16 pursuant to this Act, and including all moneys received by
17 the Department under Section 20 of the Automobile Leasing
18 Occupation and Use Tax Act and including all of the moneys
19 received pursuant to the 5% rate imposed upon the selling
20 price of any motor vehicle that is purchased from lessors by
21 lessees of such vehicles in connection with a lease that was
22 subject to the Automobile Leasing Occupation and Use Tax Act
23 Of the remainder of the moneys received by the Department
24 pursuant to this Act, (a) 1.75% thereof shall be paid into
25 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
26 and on and after July 1, 1989, 3.8% thereof shall be paid
27 into the Build Illinois Fund; provided, however, that if in
28 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
29 as the case may be, of the moneys received by the Department
30 and required to be paid into the Build Illinois Fund pursuant
31 to Section 3 of the Retailers' Occupation Tax Act, Section 9
32 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
33 Section 9 of the Service Occupation Tax Act, such Acts being
34 hereinafter called the "Tax Acts" and such aggregate of 2.2%
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1 or 3.8%, as the case may be, of moneys being hereinafter
2 called the "Tax Act Amount", and (2) the amount transferred
3 to the Build Illinois Fund from the State and Local Sales Tax
4 Reform Fund shall be less than the Annual Specified Amount
5 (as defined in Section 3 of the Retailers' Occupation Tax
6 Act), an amount equal to the difference shall be immediately
7 paid into the Build Illinois Fund from other moneys received
8 by the Department pursuant to the Tax Acts; and further
9 provided, that if on the last business day of any month the
10 sum of (1) the Tax Act Amount required to be deposited into
11 the Build Illinois Bond Account in the Build Illinois Fund
12 during such month and (2) the amount transferred during such
13 month to the Build Illinois Fund from the State and Local
14 Sales Tax Reform Fund shall have been less than 1/12 of the
15 Annual Specified Amount, an amount equal to the difference
16 shall be immediately paid into the Build Illinois Fund from
17 other moneys received by the Department pursuant to the Tax
18 Acts; and, further provided, that in no event shall the
19 payments required under the preceding proviso result in
20 aggregate payments into the Build Illinois Fund pursuant to
21 this clause (b) for any fiscal year in excess of the greater
22 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
23 for such fiscal year; and, further provided, that the amounts
24 payable into the Build Illinois Fund under this clause (b)
25 shall be payable only until such time as the aggregate amount
26 on deposit under each trust indenture securing Bonds issued
27 and outstanding pursuant to the Build Illinois Bond Act is
28 sufficient, taking into account any future investment income,
29 to fully provide, in accordance with such indenture, for the
30 defeasance of or the payment of the principal of, premium, if
31 any, and interest on the Bonds secured by such indenture and
32 on any Bonds expected to be issued thereafter and all fees
33 and costs payable with respect thereto, all as certified by
34 the Director of the Bureau of the Budget. If on the last
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1 business day of any month in which Bonds are outstanding
2 pursuant to the Build Illinois Bond Act, the aggregate of the
3 moneys deposited in the Build Illinois Bond Account in the
4 Build Illinois Fund in such month shall be less than the
5 amount required to be transferred in such month from the
6 Build Illinois Bond Account to the Build Illinois Bond
7 Retirement and Interest Fund pursuant to Section 13 of the
8 Build Illinois Bond Act, an amount equal to such deficiency
9 shall be immediately paid from other moneys received by the
10 Department pursuant to the Tax Acts to the Build Illinois
11 Fund; provided, however, that any amounts paid to the Build
12 Illinois Fund in any fiscal year pursuant to this sentence
13 shall be deemed to constitute payments pursuant to clause (b)
14 of the preceding sentence and shall reduce the amount
15 otherwise payable for such fiscal year pursuant to clause (b)
16 of the preceding sentence. The moneys received by the
17 Department pursuant to this Act and required to be deposited
18 into the Build Illinois Fund are subject to the pledge, claim
19 and charge set forth in Section 12 of the Build Illinois Bond
20 Act.
21 Subject to payment of amounts into the Build Illinois
22 Fund as provided in the preceding paragraph or in any
23 amendment thereto hereafter enacted, the following specified
24 monthly installment of the amount requested in the
25 certificate of the Chairman of the Metropolitan Pier and
26 Exposition Authority provided under Section 8.25f of the
27 State Finance Act, but not in excess of the sums designated
28 as "Total Deposit", shall be deposited in the aggregate from
29 collections under Section 9 of the Use Tax Act, Section 9 of
30 the Service Use Tax Act, Section 9 of the Service Occupation
31 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
32 into the McCormick Place Expansion Project Fund in the
33 specified fiscal years.
34 Fiscal Year Total Deposit
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1 1993 $0
2 1994 53,000,000
3 1995 58,000,000
4 1996 61,000,000
5 1997 64,000,000
6 1998 68,000,000
7 1999 71,000,000
8 2000 75,000,000
9 2001 80,000,000
10 2002 84,000,000
11 2003 89,000,000
12 2004 and 93,000,000
13 each fiscal year
14 thereafter that bonds
15 are outstanding under
16 Section 13.2 of the
17 Metropolitan Pier and
18 Exposition Authority
19 Act.
20 Beginning July 20, 1993 and in each month of each fiscal
21 year thereafter, one-eighth of the amount requested in the
22 certificate of the Chairman of the Metropolitan Pier and
23 Exposition Authority for that fiscal year, less the amount
24 deposited into the McCormick Place Expansion Project Fund by
25 the State Treasurer in the respective month under subsection
26 (g) of Section 13 of the Metropolitan Pier and Exposition
27 Authority Act, plus cumulative deficiencies in the deposits
28 required under this Section for previous months and years,
29 shall be deposited into the McCormick Place Expansion Project
30 Fund, until the full amount requested for the fiscal year,
31 but not in excess of the amount specified above as "Total
32 Deposit", has been deposited.
33 Subject to payment of amounts into the Build Illinois
34 Fund and the McCormick Place Expansion Project Fund pursuant
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1 to the preceding paragraphs or in any amendment thereto
2 hereafter enacted, each month the Department shall pay into
3 the Local Government Distributive Fund .4% of the net revenue
4 realized for the preceding month from the 5% general rate, or
5 .4% of 80% of the net revenue realized for the preceding
6 month from the 6.25% general rate, as the case may be, on the
7 selling price of tangible personal property which amount
8 shall, subject to appropriation, be distributed as provided
9 in Section 2 of the State Revenue Sharing Act. No payments or
10 distributions pursuant to this paragraph shall be made if the
11 tax imposed by this Act on photoprocessing products is
12 declared unconstitutional, or if the proceeds from such tax
13 are unavailable for distribution because of litigation.
14 Subject to payment of amounts into the Build Illinois
15 Fund, the McCormick Place Expansion Project Fund, and the
16 Local Government Distributive Fund pursuant to the preceding
17 paragraphs or in any amendments thereto hereafter enacted,
18 beginning July 1, 1993, the Department shall each month pay
19 into the Illinois Tax Increment Fund 0.27% of 80% of the net
20 revenue realized for the preceding month from the 6.25%
21 general rate on the selling price of tangible personal
22 property.
23 Of the remainder of the moneys received by the Department
24 pursuant to this Act, 75% thereof shall be paid into the
25 State Treasury and 25% shall be reserved in a special account
26 and used only for the transfer to the Common School Fund as
27 part of the monthly transfer from the General Revenue Fund in
28 accordance with Section 8a of the State Finance Act.
29 As soon as possible after the first day of each month,
30 upon certification of the Department of Revenue, the
31 Comptroller shall order transferred and the Treasurer shall
32 transfer from the General Revenue Fund to the Motor Fuel Tax
33 Fund an amount equal to 1.7% of 80% of the net revenue
34 realized under this Act for the second preceding month;
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1 except that this transfer shall not be made for the months
2 February through June of 1992.
3 Net revenue realized for a month shall be the revenue
4 collected by the State pursuant to this Act, less the amount
5 paid out during that month as refunds to taxpayers for
6 overpayment of liability.
7 For greater simplicity of administration, manufacturers,
8 importers and wholesalers whose products are sold at retail
9 in Illinois by numerous retailers, and who wish to do so, may
10 assume the responsibility for accounting and paying to the
11 Department all tax accruing under this Act with respect to
12 such sales, if the retailers who are affected do not make
13 written objection to the Department to this arrangement.
14 (Source: P.A. 88-45; 88-116; 88-194; 88-660, eff. 9-16-94;
15 88-669, eff. 11-29-94; 88-670, eff. 12-2-94; 89-379, eff.
16 1-1-96; 89-626, eff. 8-9-96.)
17 Section 90. The Retailers' Occupation Tax Act is amended
18 by changing Sections 1c, 2-10, and 3 as follows:
19 (35 ILCS 120/1c) (from Ch. 120, par. 440c)
20 Sec. 1c. A person who is engaged in the business of
21 leasing or renting motor vehicles to others and who, in
22 connection with such business sells any used motor vehicle to
23 a purchaser for his use and not for the purpose of resale, is
24 a retailer engaged in the business of selling tangible
25 personal property at retail under this Act to the extent of
26 the value of the vehicle sold. For the purpose of this
27 Section, "motor vehicle" means any motor vehicle of the first
28 division, a motor vehicle of the second division which is a
29 self-contained motor vehicle designed or permanently
30 converted to provide living quarters for recreational,
31 camping or travel use, with direct walk through access to the
32 living quarters from the driver's seat, or a motor vehicle of
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1 a second division which is of the van configuration designed
2 for the transportation of not less than 7 nor more than 16
3 passengers, as defined in Section 1-146 of the Illinois
4 Vehicle Code. For the purpose of this Section "motor vehicle"
5 has the meaning prescribed in Section 1-157 of The Illinois
6 Vehicle Code, as now or hereafter amended. (Nothing provided
7 herein shall affect liability incurred under this Act because
8 of the sale at retail of such motor vehicles to a lessor.)
9 (Source: P.A. 80-598.)
10 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
11 Sec. 2-10. Rate of tax. Unless otherwise provided in
12 this Section, the tax imposed by this Act is at the rate of
13 6.25% of gross receipts from sales of tangible personal
14 property made in the course of business.
15 With respect to gasohol, as defined in the Use Tax Act,
16 the tax imposed by this Act applies to 70% of the proceeds of
17 sales made on or after January 1, 1990, and before July 1,
18 1999, and to 100% of the proceeds of sales made thereafter,
19 except that from July 1, 1997 to July 1, 1999, the rate shall
20 be 85% for gasohol sold in this State during the 12 months
21 beginning July 1 following any calendar year for which the
22 Department has determined that the percentages in Section 10
23 of the Gasohol Fuels Tax Abatement Act have not been met.
24 With respect to food for human consumption that is to be
25 consumed off the premises where it is sold (other than
26 alcoholic beverages, soft drinks, and food that has been
27 prepared for immediate consumption) and prescription and
28 nonprescription medicines, drugs, medical appliances,
29 modifications to a motor vehicle for the purpose of rendering
30 it usable by a disabled person, and insulin, urine testing
31 materials, syringes, and needles used by diabetics, for human
32 use, the tax is imposed at the rate of 1%. For the purposes
33 of this Section, the term "soft drinks" means any complete,
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1 finished, ready-to-use, non-alcoholic drink, whether
2 carbonated or not, including but not limited to soda water,
3 cola, fruit juice, vegetable juice, carbonated water, and all
4 other preparations commonly known as soft drinks of whatever
5 kind or description that are contained in any closed or
6 sealed bottle, can, carton, or container, regardless of size.
7 "Soft drinks" does not include coffee, tea, non-carbonated
8 water, infant formula, milk or milk products as defined in
9 the Grade A Pasteurized Milk and Milk Products Act, or drinks
10 containing 50% or more natural fruit or vegetable juice.
11 Notwithstanding any other provisions of this Act, "food
12 for human consumption that is to be consumed off the premises
13 where it is sold" includes all food sold through a vending
14 machine, except soft drinks and food products that are
15 dispensed hot from a vending machine, regardless of the
16 location of the vending machine.
17 With respect to any motor vehicle (as the term "motor
18 vehicle" is defined in Section 1c of this Act) that is sold
19 to a lessor for purposes of leasing under a lease subject to
20 the Automobile Leasing Occupation and Use Tax Act, the tax is
21 imposed at the rate of 1.25%.
22 With respect to any motor vehicle (as the term "motor
23 vehicle" is defined in Section 1c of this Act) that has been
24 leased by a lessor to a lessee under a lease that is subject
25 to the Automobile Leasing Occupation and Use Tax Act, and is
26 subsequently sold to the lessee of such vehicle, the tax is
27 imposed at the rate of 5%.
28 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
29 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
30 (35 ILCS 120/3) (from Ch. 120, par. 442)
31 Sec. 3. Except as provided in this Section, on or before
32 the twentieth day of each calendar month, every person
33 engaged in the business of selling tangible personal property
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1 at retail in this State during the preceding calendar month
2 shall file a return with the Department, stating:
3 1. The name of the seller;
4 2. His residence address and the address of his
5 principal place of business and the address of the
6 principal place of business (if that is a different
7 address) from which he engages in the business of selling
8 tangible personal property at retail in this State;
9 3. Total amount of receipts received by him during
10 the preceding calendar month or quarter, as the case may
11 be, from sales of tangible personal property, and from
12 services furnished, by him during such preceding calendar
13 month or quarter;
14 4. Total amount received by him during the
15 preceding calendar month or quarter on charge and time
16 sales of tangible personal property, and from services
17 furnished, by him prior to the month or quarter for which
18 the return is filed;
19 5. Deductions allowed by law;
20 6. Gross receipts which were received by him during
21 the preceding calendar month or quarter and upon the
22 basis of which the tax is imposed;
23 7. The amount of credit provided in Section 2d of
24 this Act;
25 8. The amount of tax due;
26 9. The signature of the taxpayer; and
27 10. Such other reasonable information as the
28 Department may require.
29 If a taxpayer fails to sign a return within 30 days after
30 the proper notice and demand for signature by the Department,
31 the return shall be considered valid and any amount shown to
32 be due on the return shall be deemed assessed.
33 Each return shall be accompanied by the statement of
34 prepaid tax issued pursuant to Section 2e for which credit is
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1 claimed.
2 A retailer may accept a Manufacturer's Purchase Credit
3 certification from a purchaser in satisfaction of Use Tax as
4 provided in Section 3-85 of the Use Tax Act if the purchaser
5 provides the appropriate documentation as required by Section
6 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
7 certification, accepted by a retailer as provided in Section
8 3-85 of the Use Tax Act, may be used by that retailer to
9 satisfy Retailers' Occupation Tax liability in the amount
10 claimed in the certification, not to exceed 6.25% of the
11 receipts subject to tax from a qualifying purchase.
12 The Department may require returns to be filed on a
13 quarterly basis. If so required, a return for each calendar
14 quarter shall be filed on or before the twentieth day of the
15 calendar month following the end of such calendar quarter.
16 The taxpayer shall also file a return with the Department for
17 each of the first two months of each calendar quarter, on or
18 before the twentieth day of the following calendar month,
19 stating:
20 1. The name of the seller;
21 2. The address of the principal place of business
22 from which he engages in the business of selling tangible
23 personal property at retail in this State;
24 3. The total amount of taxable receipts received by
25 him during the preceding calendar month from sales of
26 tangible personal property by him during such preceding
27 calendar month, including receipts from charge and time
28 sales, but less all deductions allowed by law;
29 4. The amount of credit provided in Section 2d of
30 this Act;
31 5. The amount of tax due; and
32 6. Such other reasonable information as the
33 Department may require.
34 If a total amount of less than $1 is payable, refundable
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1 or creditable, such amount shall be disregarded if it is less
2 than 50 cents and shall be increased to $1 if it is 50 cents
3 or more.
4 Beginning October 1, 1993, a taxpayer who has an average
5 monthly tax liability of $150,000 or more shall make all
6 payments required by rules of the Department by electronic
7 funds transfer. Beginning October 1, 1994, a taxpayer who
8 has an average monthly tax liability of $100,000 or more
9 shall make all payments required by rules of the Department
10 by electronic funds transfer. Beginning October 1, 1995, a
11 taxpayer who has an average monthly tax liability of $50,000
12 or more shall make all payments required by rules of the
13 Department by electronic funds transfer. The term "average
14 monthly tax liability" shall be the sum of the taxpayer's
15 liabilities under this Act, and under all other State and
16 local occupation and use tax laws administered by the
17 Department, for the immediately preceding calendar year
18 divided by 12.
19 Before August 1 of each year beginning in 1993, the
20 Department shall notify all taxpayers required to make
21 payments by electronic funds transfer. All taxpayers
22 required to make payments by electronic funds transfer shall
23 make those payments for a minimum of one year beginning on
24 October 1.
25 Any taxpayer not required to make payments by electronic
26 funds transfer may make payments by electronic funds transfer
27 with the permission of the Department.
28 All taxpayers required to make payment by electronic
29 funds transfer and any taxpayers authorized to voluntarily
30 make payments by electronic funds transfer shall make those
31 payments in the manner authorized by the Department.
32 The Department shall adopt such rules as are necessary to
33 effectuate a program of electronic funds transfer and the
34 requirements of this Section.
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1 Any amount which is required to be shown or reported on
2 any return or other document under this Act shall, if such
3 amount is not a whole-dollar amount, be increased to the
4 nearest whole-dollar amount in any case where the fractional
5 part of a dollar is 50 cents or more, and decreased to the
6 nearest whole-dollar amount where the fractional part of a
7 dollar is less than 50 cents.
8 If the retailer is otherwise required to file a monthly
9 return and if the retailer's average monthly tax liability to
10 the Department does not exceed $200, the Department may
11 authorize his returns to be filed on a quarter annual basis,
12 with the return for January, February and March of a given
13 year being due by April 20 of such year; with the return for
14 April, May and June of a given year being due by July 20 of
15 such year; with the return for July, August and September of
16 a given year being due by October 20 of such year, and with
17 the return for October, November and December of a given year
18 being due by January 20 of the following year.
19 If the retailer is otherwise required to file a monthly
20 or quarterly return and if the retailer's average monthly tax
21 liability with the Department does not exceed $50, the
22 Department may authorize his returns to be filed on an annual
23 basis, with the return for a given year being due by January
24 20 of the following year.
25 Such quarter annual and annual returns, as to form and
26 substance, shall be subject to the same requirements as
27 monthly returns.
28 Notwithstanding any other provision in this Act
29 concerning the time within which a retailer may file his
30 return, in the case of any retailer who ceases to engage in a
31 kind of business which makes him responsible for filing
32 returns under this Act, such retailer shall file a final
33 return under this Act with the Department not more than one
34 month after discontinuing such business.
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1 Where the same person has more than one business
2 registered with the Department under separate registrations
3 under this Act, such person may not file each return that is
4 due as a single return covering all such registered
5 businesses, but shall file separate returns for each such
6 registered business.
7 In addition, with respect to motor vehicles, watercraft,
8 aircraft, and trailers that are required to be registered
9 with an agency of this State, every retailer selling this
10 kind of tangible personal property shall file, with the
11 Department, upon a form to be prescribed and supplied by the
12 Department, a separate return for each such item of tangible
13 personal property which the retailer sells, except that
14 where, in the same transaction, a retailer of aircraft,
15 watercraft, motor vehicles or trailers transfers more than
16 one aircraft, watercraft, motor vehicle or trailer to another
17 aircraft, watercraft, motor vehicle retailer or trailer
18 retailer for the purpose of resale, that seller for resale
19 may report the transfer of all aircraft, watercraft, motor
20 vehicles or trailers involved in that transaction to the
21 Department on the same uniform invoice-transaction reporting
22 return form. For purposes of this Section, "watercraft"
23 means a Class 2, Class 3, or Class 4 watercraft as defined in
24 Section 3-2 of the Boat Registration and Safety Act, a
25 personal watercraft, or any boat equipped with an inboard
26 motor.
27 Any retailer who sells only motor vehicles, watercraft,
28 aircraft, or trailers that are required to be registered with
29 an agency of this State, so that all retailers' occupation
30 tax liability is required to be reported, and is reported, on
31 such transaction reporting returns and who is not otherwise
32 required to file monthly or quarterly returns, need not file
33 monthly or quarterly returns. However, those retailers shall
34 be required to file returns on an annual basis.
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1 The transaction reporting return, in the case of motor
2 vehicles or trailers that are required to be registered with
3 an agency of this State, shall be the same document as the
4 Uniform Invoice referred to in Section 5-402 of The Illinois
5 Vehicle Code and must show the name and address of the
6 seller; the name and address of the purchaser; the amount of
7 the selling price including the amount allowed by the
8 retailer for traded-in property, if any; the amount allowed
9 by the retailer for the traded-in tangible personal property,
10 if any, to the extent to which Section 1 of this Act allows
11 an exemption for the value of traded-in property; the balance
12 payable after deducting such trade-in allowance from the
13 total selling price; the amount of tax due from the retailer
14 with respect to such transaction; the amount of tax collected
15 from the purchaser by the retailer on such transaction (or
16 satisfactory evidence that such tax is not due in that
17 particular instance, if that is claimed to be the fact); the
18 place and date of the sale; a sufficient identification of
19 the property sold; such other information as is required in
20 Section 5-402 of The Illinois Vehicle Code, and such other
21 information as the Department may reasonably require.
22 The transaction reporting return in the case of
23 watercraft or aircraft must show the name and address of the
24 seller; the name and address of the purchaser; the amount of
25 the selling price including the amount allowed by the
26 retailer for traded-in property, if any; the amount allowed
27 by the retailer for the traded-in tangible personal property,
28 if any, to the extent to which Section 1 of this Act allows
29 an exemption for the value of traded-in property; the balance
30 payable after deducting such trade-in allowance from the
31 total selling price; the amount of tax due from the retailer
32 with respect to such transaction; the amount of tax collected
33 from the purchaser by the retailer on such transaction (or
34 satisfactory evidence that such tax is not due in that
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1 particular instance, if that is claimed to be the fact); the
2 place and date of the sale, a sufficient identification of
3 the property sold, and such other information as the
4 Department may reasonably require.
5 Such transaction reporting return shall be filed not
6 later than 20 days after the day of delivery of the item that
7 is being sold, but may be filed by the retailer at any time
8 sooner than that if he chooses to do so. The transaction
9 reporting return and tax remittance or proof of exemption
10 from the Illinois use tax may be transmitted to the
11 Department by way of the State agency with which, or State
12 officer with whom the tangible personal property must be
13 titled or registered (if titling or registration is required)
14 if the Department and such agency or State officer determine
15 that this procedure will expedite the processing of
16 applications for title or registration.
17 With each such transaction reporting return, the retailer
18 shall remit the proper amount of tax due (or shall submit
19 satisfactory evidence that the sale is not taxable if that is
20 the case), to the Department or its agents, whereupon the
21 Department shall issue, in the purchaser's name, a use tax
22 receipt (or a certificate of exemption if the Department is
23 satisfied that the particular sale is tax exempt) which such
24 purchaser may submit to the agency with which, or State
25 officer with whom, he must title or register the tangible
26 personal property that is involved (if titling or
27 registration is required) in support of such purchaser's
28 application for an Illinois certificate or other evidence of
29 title or registration to such tangible personal property.
30 No retailer's failure or refusal to remit tax under this
31 Act precludes a user, who has paid the proper tax to the
32 retailer, from obtaining his certificate of title or other
33 evidence of title or registration (if titling or registration
34 is required) upon satisfying the Department that such user
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1 has paid the proper tax (if tax is due) to the retailer. The
2 Department shall adopt appropriate rules to carry out the
3 mandate of this paragraph.
4 If the user who would otherwise pay tax to the retailer
5 wants the transaction reporting return filed and the payment
6 of the tax or proof of exemption made to the Department
7 before the retailer is willing to take these actions and such
8 user has not paid the tax to the retailer, such user may
9 certify to the fact of such delay by the retailer and may
10 (upon the Department being satisfied of the truth of such
11 certification) transmit the information required by the
12 transaction reporting return and the remittance for tax or
13 proof of exemption directly to the Department and obtain his
14 tax receipt or exemption determination, in which event the
15 transaction reporting return and tax remittance (if a tax
16 payment was required) shall be credited by the Department to
17 the proper retailer's account with the Department, but
18 without the 2.1% or 1.75% discount provided for in this
19 Section being allowed. When the user pays the tax directly
20 to the Department, he shall pay the tax in the same amount
21 and in the same form in which it would be remitted if the tax
22 had been remitted to the Department by the retailer.
23 Refunds made by the seller during the preceding return
24 period to purchasers, on account of tangible personal
25 property returned to the seller, shall be allowed as a
26 deduction under subdivision 5 of his monthly or quarterly
27 return, as the case may be, in case the seller had
28 theretofore included the receipts from the sale of such
29 tangible personal property in a return filed by him and had
30 paid the tax imposed by this Act with respect to such
31 receipts.
32 Where the seller is a corporation, the return filed on
33 behalf of such corporation shall be signed by the president,
34 vice-president, secretary or treasurer or by the properly
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1 accredited agent of such corporation.
2 Where the seller is a limited liability company, the
3 return filed on behalf of the limited liability company shall
4 be signed by a manager, member, or properly accredited agent
5 of the limited liability company.
6 Except as provided in this Section, the retailer filing
7 the return under this Section shall, at the time of filing
8 such return, pay to the Department the amount of tax imposed
9 by this Act less a discount of 2.1% prior to January 1, 1990
10 and 1.75% on and after January 1, 1990, or $5 per calendar
11 year, whichever is greater, which is allowed to reimburse the
12 retailer for the expenses incurred in keeping records,
13 preparing and filing returns, remitting the tax and supplying
14 data to the Department on request. Any prepayment made
15 pursuant to Section 2d of this Act shall be included in the
16 amount on which such 2.1% or 1.75% discount is computed. In
17 the case of retailers who report and pay the tax on a
18 transaction by transaction basis, as provided in this
19 Section, such discount shall be taken with each such tax
20 remittance instead of when such retailer files his periodic
21 return.
22 If the taxpayer's average monthly tax liability to the
23 Department under this Act, the Use Tax Act, the Service
24 Occupation Tax Act, and the Service Use Tax Act, excluding
25 any liability for prepaid sales tax to be remitted in
26 accordance with Section 2d of this Act, was $10,000 or more
27 during the preceding 4 complete calendar quarters, he shall
28 file a return with the Department each month by the 20th day
29 of the month next following the month during which such tax
30 liability is incurred and shall make payments to the
31 Department on or before the 7th, 15th, 22nd and last day of
32 the month during which such liability is incurred. If the
33 month during which such tax liability is incurred began prior
34 to January 1, 1985, each payment shall be in an amount equal
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1 to 1/4 of the taxpayer's actual liability for the month or an
2 amount set by the Department not to exceed 1/4 of the average
3 monthly liability of the taxpayer to the Department for the
4 preceding 4 complete calendar quarters (excluding the month
5 of highest liability and the month of lowest liability in
6 such 4 quarter period). If the month during which such tax
7 liability is incurred begins on or after January 1, 1985 and
8 prior to January 1, 1987, each payment shall be in an amount
9 equal to 22.5% of the taxpayer's actual liability for the
10 month or 27.5% of the taxpayer's liability for the same
11 calendar month of the preceding year. If the month during
12 which such tax liability is incurred begins on or after
13 January 1, 1987 and prior to January 1, 1988, each payment
14 shall be in an amount equal to 22.5% of the taxpayer's actual
15 liability for the month or 26.25% of the taxpayer's liability
16 for the same calendar month of the preceding year. If the
17 month during which such tax liability is incurred begins on
18 or after January 1, 1988, and prior to January 1, 1989, or
19 begins on or after January 1, 1996, each payment shall be in
20 an amount equal to 22.5% of the taxpayer's actual liability
21 for the month or 25% of the taxpayer's liability for the same
22 calendar month of the preceding year. If the month during
23 which such tax liability is incurred begins on or after
24 January 1, 1989, and prior to January 1, 1996, each payment
25 shall be in an amount equal to 22.5% of the taxpayer's actual
26 liability for the month or 25% of the taxpayer's liability
27 for the same calendar month of the preceding year or 100% of
28 the taxpayer's actual liability for the quarter monthly
29 reporting period. The amount of such quarter monthly
30 payments shall be credited against the final tax liability of
31 the taxpayer's return for that month. Once applicable, the
32 requirement of the making of quarter monthly payments to the
33 Department by taxpayers having an average monthly tax
34 liability of $10,000 or more as determined in the manner
-48- LRB9003803DNmbam01
1 provided above shall continue until such taxpayer's average
2 monthly liability to the Department during the preceding 4
3 complete calendar quarters (excluding the month of highest
4 liability and the month of lowest liability) is less than
5 $9,000, or until such taxpayer's average monthly liability to
6 the Department as computed for each calendar quarter of the 4
7 preceding complete calendar quarter period is less than
8 $10,000. However, if a taxpayer can show the Department that
9 a substantial change in the taxpayer's business has occurred
10 which causes the taxpayer to anticipate that his average
11 monthly tax liability for the reasonably foreseeable future
12 will fall below $10,000, then such taxpayer may petition the
13 Department for a change in such taxpayer's reporting status.
14 The Department shall change such taxpayer's reporting status
15 unless it finds that such change is seasonal in nature and
16 not likely to be long term. If any such quarter monthly
17 payment is not paid at the time or in the amount required by
18 this Section, then the taxpayer's 2.1% or 1.75% vendors'
19 discount shall be reduced by 2.1% or 1.75% of the difference
20 between the minimum amount due as a payment and the amount of
21 such quarter monthly payment actually and timely paid, and
22 the taxpayer shall be liable for penalties and interest on
23 such difference, except insofar as the taxpayer has
24 previously made payments for that month to the Department in
25 excess of the minimum payments previously due as provided in
26 this Section. The Department shall make reasonable rules and
27 regulations to govern the quarter monthly payment amount and
28 quarter monthly payment dates for taxpayers who file on other
29 than a calendar monthly basis.
30 Without regard to whether a taxpayer is required to make
31 quarter monthly payments as specified above, any taxpayer who
32 is required by Section 2d of this Act to collect and remit
33 prepaid taxes and has collected prepaid taxes which average
34 in excess of $25,000 per month during the preceding 2
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1 complete calendar quarters, shall file a return with the
2 Department as required by Section 2f and shall make payments
3 to the Department on or before the 7th, 15th, 22nd and last
4 day of the month during which such liability is incurred. If
5 the month during which such tax liability is incurred began
6 prior to the effective date of this amendatory Act of 1985,
7 each payment shall be in an amount not less than 22.5% of the
8 taxpayer's actual liability under Section 2d. If the month
9 during which such tax liability is incurred begins on or
10 after January 1, 1986, each payment shall be in an amount
11 equal to 22.5% of the taxpayer's actual liability for the
12 month or 27.5% of the taxpayer's liability for the same
13 calendar month of the preceding calendar year. If the month
14 during which such tax liability is incurred begins on or
15 after January 1, 1987, each payment shall be in an amount
16 equal to 22.5% of the taxpayer's actual liability for the
17 month or 26.25% of the taxpayer's liability for the same
18 calendar month of the preceding year. The amount of such
19 quarter monthly payments shall be credited against the final
20 tax liability of the taxpayer's return for that month filed
21 under this Section or Section 2f, as the case may be. Once
22 applicable, the requirement of the making of quarter monthly
23 payments to the Department pursuant to this paragraph shall
24 continue until such taxpayer's average monthly prepaid tax
25 collections during the preceding 2 complete calendar quarters
26 is $25,000 or less. If any such quarter monthly payment is
27 not paid at the time or in the amount required, the taxpayer
28 shall be liable for penalties and interest on such
29 difference, except insofar as the taxpayer has previously
30 made payments for that month in excess of the minimum
31 payments previously due.
32 If any payment provided for in this Section exceeds the
33 taxpayer's liabilities under this Act, the Use Tax Act, the
34 Service Occupation Tax Act and the Service Use Tax Act, as
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1 shown on an original monthly return, the Department shall, if
2 requested by the taxpayer, issue to the taxpayer a credit
3 memorandum no later than 30 days after the date of payment.
4 The credit evidenced by such credit memorandum may be
5 assigned by the taxpayer to a similar taxpayer under this
6 Act, the Use Tax Act, the Service Occupation Tax Act or the
7 Service Use Tax Act, in accordance with reasonable rules and
8 regulations to be prescribed by the Department. If no such
9 request is made, the taxpayer may credit such excess payment
10 against tax liability subsequently to be remitted to the
11 Department under this Act, the Use Tax Act, the Service
12 Occupation Tax Act or the Service Use Tax Act, in accordance
13 with reasonable rules and regulations prescribed by the
14 Department. If the Department subsequently determined that
15 all or any part of the credit taken was not actually due to
16 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
17 shall be reduced by 2.1% or 1.75% of the difference between
18 the credit taken and that actually due, and that taxpayer
19 shall be liable for penalties and interest on such
20 difference.
21 If a retailer of motor fuel is entitled to a credit under
22 Section 2d of this Act which exceeds the taxpayer's liability
23 to the Department under this Act for the month which the
24 taxpayer is filing a return, the Department shall issue the
25 taxpayer a credit memorandum for the excess.
26 Beginning January 1, 1990, each month the Department
27 shall pay into the Local Government Tax Fund, a special fund
28 in the State treasury which is hereby created, the net
29 revenue realized for the preceding month from the 1% tax on
30 sales of food for human consumption which is to be consumed
31 off the premises where it is sold (other than alcoholic
32 beverages, soft drinks and food which has been prepared for
33 immediate consumption) and prescription and nonprescription
34 medicines, drugs, medical appliances and insulin, urine
-51- LRB9003803DNmbam01
1 testing materials, syringes and needles used by diabetics.
2 Beginning January 1, 1990, each month the Department
3 shall pay into the County and Mass Transit District Fund, a
4 special fund in the State treasury which is hereby created,
5 4% of the net revenue realized for the preceding month from
6 the 6.25% general rate.
7 Each month the Department shall pay into the County and
8 Mass Transit District Fund 20% of the net revenue realized
9 for the preceding month from the 1.25% rate imposed upon the
10 sale of any motor vehicle that is sold at retail to a lessor
11 for purposes of leasing under a lease subject to the
12 Automobile Leasing Occupation and Use Tax Act.
13 Beginning January 1, 1990, each month the Department
14 shall pay into the Local Government Tax Fund 16% of the net
15 revenue realized for the preceding month from the 6.25%
16 general rate on the selling price of tangible personal
17 property.
18 Each month the Department shall pay into the Local
19 Government Tax Fund 80% of the net revenue realized for the
20 preceding month from the 1.25% rate imposed upon the sale of
21 any motor vehicle that is sold at retail to a lessor for
22 purposes of leasing under a lease subject to the Automobile
23 Leasing Occupation and Use Tax Act.
24 Of the remainder of the moneys received by the Department
25 pursuant to this Act, and including all moneys received by
26 the Department pursuant to Section 10 of the Automobile
27 Leasing Occupation and Use Tax Act, and including all of the
28 moneys received pursuant to the 5% rate imposed upon sales of
29 motor vehicles by lessors to the lessees of such vehicles in
30 connection with a lease that was subject to the Automobile
31 Leasing Occupation and Use Tax Act Of the remainder of the
32 moneys received by the Department pursuant to this Act, (a)
33 1.75% thereof shall be paid into the Build Illinois Fund and
34 (b) prior to July 1, 1989, 2.2% and on and after July 1,
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1 1989, 3.8% thereof shall be paid into the Build Illinois
2 Fund; provided, however, that if in any fiscal year the sum
3 of (1) the aggregate of 2.2% or 3.8%, as the case may be, of
4 the moneys received by the Department and required to be paid
5 into the Build Illinois Fund pursuant to this Act, Section 9
6 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
7 Section 9 of the Service Occupation Tax Act, such Acts being
8 hereinafter called the "Tax Acts" and such aggregate of 2.2%
9 or 3.8%, as the case may be, of moneys being hereinafter
10 called the "Tax Act Amount", and (2) the amount transferred
11 to the Build Illinois Fund from the State and Local Sales Tax
12 Reform Fund shall be less than the Annual Specified Amount
13 (as hereinafter defined), an amount equal to the difference
14 shall be immediately paid into the Build Illinois Fund from
15 other moneys received by the Department pursuant to the Tax
16 Acts; the "Annual Specified Amount" means the amounts
17 specified below for fiscal years 1986 through 1993:
18 Fiscal Year Annual Specified Amount
19 1986 $54,800,000
20 1987 $76,650,000
21 1988 $80,480,000
22 1989 $88,510,000
23 1990 $115,330,000
24 1991 $145,470,000
25 1992 $182,730,000
26 1993 $206,520,000;
27 and means the Certified Annual Debt Service Requirement (as
28 defined in Section 13 of the Build Illinois Bond Act) or the
29 Tax Act Amount, whichever is greater, for fiscal year 1994
30 and each fiscal year thereafter; and further provided, that
31 if on the last business day of any month the sum of (1) the
32 Tax Act Amount required to be deposited into the Build
33 Illinois Bond Account in the Build Illinois Fund during such
34 month and (2) the amount transferred to the Build Illinois
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1 Fund from the State and Local Sales Tax Reform Fund shall
2 have been less than 1/12 of the Annual Specified Amount, an
3 amount equal to the difference shall be immediately paid into
4 the Build Illinois Fund from other moneys received by the
5 Department pursuant to the Tax Acts; and, further provided,
6 that in no event shall the payments required under the
7 preceding proviso result in aggregate payments into the Build
8 Illinois Fund pursuant to this clause (b) for any fiscal year
9 in excess of the greater of (i) the Tax Act Amount or (ii)
10 the Annual Specified Amount for such fiscal year. The
11 amounts payable into the Build Illinois Fund under clause (b)
12 of the first sentence in this paragraph shall be payable only
13 until such time as the aggregate amount on deposit under each
14 trust indenture securing Bonds issued and outstanding
15 pursuant to the Build Illinois Bond Act is sufficient, taking
16 into account any future investment income, to fully provide,
17 in accordance with such indenture, for the defeasance of or
18 the payment of the principal of, premium, if any, and
19 interest on the Bonds secured by such indenture and on any
20 Bonds expected to be issued thereafter and all fees and costs
21 payable with respect thereto, all as certified by the
22 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
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
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1 shall be deemed to constitute payments pursuant to clause (b)
2 of the first sentence of this paragraph and shall reduce the
3 amount otherwise payable for such fiscal year pursuant to
4 that clause (b). The moneys received by the Department
5 pursuant to this Act and required to be deposited into the
6 Build Illinois Fund are subject to the pledge, claim and
7 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 sums designated as
16 "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
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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 0.4% of the net
26 revenue realized for the preceding month from the 5% general
27 rate or 0.4% of 80% of the net revenue realized for the
28 preceding month from the 6.25% general rate, as the case may
29 be, on the selling price of tangible personal property which
30 amount shall, subject to appropriation, be distributed as
31 provided in Section 2 of the State Revenue Sharing Act. No
32 payments or distributions pursuant to this paragraph shall be
33 made if the tax imposed by this Act on photoprocessing
34 products is declared unconstitutional, or if the proceeds
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1 from such tax are unavailable for distribution because of
2 litigation.
3 Subject to payment of amounts into the Build Illinois
4 Fund, the McCormick Place Expansion Project 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 The Department may, upon separate written notice to a
18 taxpayer, require the taxpayer to prepare and file with the
19 Department on a form prescribed by the Department within not
20 less than 60 days after receipt of the notice an annual
21 information return for the tax year specified in the notice.
22 Such annual return to the Department shall include a
23 statement of gross receipts as shown by the retailer's last
24 Federal income tax return. If the total receipts of the
25 business as reported in the Federal income tax return do not
26 agree with the gross receipts reported to the Department of
27 Revenue for the same period, the retailer shall attach to his
28 annual return a schedule showing a reconciliation of the 2
29 amounts and the reasons for the difference. The retailer's
30 annual return to the Department shall also disclose the cost
31 of goods sold by the retailer during the year covered by such
32 return, opening and closing inventories of such goods for
33 such year, costs of goods used from stock or taken from stock
34 and given away by the retailer during such year, payroll
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1 information of the retailer's business during such year and
2 any additional reasonable information which the Department
3 deems would be helpful in determining the accuracy of the
4 monthly, quarterly or annual returns filed by such retailer
5 as provided for in this Section.
6 If the annual information return required by this Section
7 is not filed when and as required, the taxpayer shall be
8 liable as follows:
9 (i) Until January 1, 1994, the taxpayer shall be
10 liable for a penalty equal to 1/6 of 1% of the tax due
11 from such taxpayer under this Act during the period to be
12 covered by the annual return for each month or fraction
13 of a month until such return is filed as required, the
14 penalty to be assessed and collected in the same manner
15 as any other penalty provided for in this Act.
16 (ii) On and after January 1, 1994, the taxpayer
17 shall be liable for a penalty as described in Section 3-4
18 of the Uniform Penalty and Interest Act.
19 The chief executive officer, proprietor, owner or highest
20 ranking manager shall sign the annual return to certify the
21 accuracy of the information contained therein. Any person
22 who willfully signs the annual return containing false or
23 inaccurate information shall be guilty of perjury and
24 punished accordingly. The annual return form prescribed by
25 the Department shall include a warning that the person
26 signing the return may be liable for perjury.
27 The provisions of this Section concerning the filing of
28 an annual information return do not apply to a retailer who
29 is not required to file an income tax return with the United
30 States Government.
31 As soon as possible after the first day of each month,
32 upon certification of the Department of Revenue, the
33 Comptroller shall order transferred and the Treasurer shall
34 transfer from the General Revenue Fund to the Motor Fuel Tax
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1 Fund an amount equal to 1.7% of 80% of the net revenue
2 realized under this Act for the second preceding month;
3 except that this transfer shall not be made for the months
4 February through June, 1992.
5 Net revenue realized for a month shall be the revenue
6 collected by the State pursuant to this Act, less the amount
7 paid out during that month as refunds to taxpayers for
8 overpayment of liability.
9 For greater simplicity of administration, manufacturers,
10 importers and wholesalers whose products are sold at retail
11 in Illinois by numerous retailers, and who wish to do so, may
12 assume the responsibility for accounting and paying to the
13 Department all tax accruing under this Act with respect to
14 such sales, if the retailers who are affected do not make
15 written objection to the Department to this arrangement.
16 Any person who promotes, organizes, provides retail
17 selling space for concessionaires or other types of sellers
18 at the Illinois State Fair, DuQuoin State Fair, county fairs,
19 local fairs, art shows, flea markets and similar exhibitions
20 or events, including any transient merchant as defined by
21 Section 2 of the Transient Merchant Act of 1987, is required
22 to file a report with the Department providing the name of
23 the merchant's business, the name of the person or persons
24 engaged in merchant's business, the permanent address and
25 Illinois Retailers Occupation Tax Registration Number of the
26 merchant, the dates and location of the event and other
27 reasonable information that the Department may require. The
28 report must be filed not later than the 20th day of the month
29 next following the month during which the event with retail
30 sales was held. Any person who fails to file a report
31 required by this Section commits a business offense and is
32 subject to a fine not to exceed $250.
33 Any person engaged in the business of selling tangible
34 personal property at retail as a concessionaire or other type
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1 of seller at the Illinois State Fair, county fairs, art
2 shows, flea markets and similar exhibitions or events, or any
3 transient merchants, as defined by Section 2 of the Transient
4 Merchant Act of 1987, may be required to make a daily report
5 of the amount of such sales to the Department and to make a
6 daily payment of the full amount of tax due. The Department
7 shall impose this requirement when it finds that there is a
8 significant risk of loss of revenue to the State at such an
9 exhibition or event. Such a finding shall be based on
10 evidence that a substantial number of concessionaires or
11 other sellers who are not residents of Illinois will be
12 engaging in the business of selling tangible personal
13 property at retail at the exhibition or event, or other
14 evidence of a significant risk of loss of revenue to the
15 State. The Department shall notify concessionaires and other
16 sellers affected by the imposition of this requirement. In
17 the absence of notification by the Department, the
18 concessionaires and other sellers shall file their returns as
19 otherwise required in this Section.
20 (Source: P.A. 88-45; 88-116; 88-194; 88-480; 88-547, eff.
21 6-30-94; 88-660, eff. 9-16-94; 88-669, eff. 11-29-94; 88-670,
22 eff. 12-2-94; 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
23 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)"; and
24 on page 1, line 5, by replacing "Section 5" with "Section
25 95"; and
26 on page 8, by replacing lines 10 and 11 with the following:
27 "Section 99. Effective date. This Section and Section
28 95 take effect upon becoming law and Sections 1 through 90
29 take effect July 1, 1998.".