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90_SB0522sam001
LRB9001867KDpcam
1 AMENDMENT TO SENATE BILL 522
2 AMENDMENT NO. . Amend Senate Bill 522 by replacing
3 the title with the following:
4 "AN ACT in relation to State money."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The State Comptroller Act is amended by
8 changing Section 9.03 and adding Section 9.03a as follows:
9 (15 ILCS 405/9.03) (from Ch. 15, par. 209.03)
10 (Text of Section before amendment by P.A. 89-507)
11 Sec. 9.03. Direct deposit of State payments. The
12 Comptroller, with the approval of the State Treasurer, may
13 provide by rule or regulation for the direct deposit of any
14 payment lawfully payable from the State Treasury and in
15 accordance with federal banking regulations including but not
16 limited to payments to (i) persons paid from personal
17 services, (ii) persons receiving benefit payments from him
18 under the State pension systems, (iii) individuals who
19 receive assistance under Articles III, IV, and VI of the
20 Illinois Public Aid Code, (iv) providers of services under
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1 the Department of Mental Health and Developmental
2 Disabilities Act, (v) providers of community-based mental
3 health services, and (vi) providers of services under
4 programs administered by the State Board of Education, in the
5 accounts of those persons or entities maintained at a bank,
6 savings and loan association, or credit union, where
7 authorized by the payee. The Comptroller also may deposit
8 public aid payments for individuals who receive assistance
9 under Articles III, IV, VI, and X of the Illinois Public Aid
10 Code directly into an electronic benefits transfer account in
11 a financial institution approved by the State Treasurer as
12 prescribed by the Illinois Department of Public Aid and in
13 accordance with the rules and regulations of that Department
14 and the rules and regulation adopted by the Comptroller and
15 the State Treasurer. The Comptroller, with the approval of
16 the State Treasurer, may provide by rule for the electronic
17 direct deposit of payments to public agencies and any other
18 payee of the State. The electronic direct deposits may be
19 made to the designated account in those financial
20 institutions specified in this Section for the direct deposit
21 of payments. Within 6 months after the effective date of
22 this amendatory Act of 1994, the Comptroller shall establish
23 a pilot program for the electronic direct deposit of payments
24 to local school districts, municipalities, and units of local
25 government. The payments may be made without the use of the
26 voucher-warrant system, provided that documentation of
27 approval by the Treasurer of each group of payments made by
28 direct deposit shall be retained by the Comptroller. The
29 form and method of the Treasurer's approval shall be
30 established by the rules or regulations adopted by the
31 Comptroller under this Section.
32 (Source: P.A. 88-641, eff. 9-9-94; 88-643, eff. 1-1-95;
33 89-235, eff. 8-4-95.)
34 (Text of Section after amendment by P.A. 89-507)
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1 Sec. 9.03. Direct deposit of State payments. The
2 Comptroller, with the approval of the State Treasurer, may
3 provide by rule or regulation for the direct deposit of any
4 payment lawfully payable from the State Treasury and in
5 accordance with federal banking regulations including but not
6 limited to payments to (i) persons paid from personal
7 services, (ii) persons receiving benefit payments from him
8 under the State pension systems, (iii) individuals who
9 receive assistance under Articles III, IV, and VI of the
10 Illinois Public Aid Code, (iii) (iv) providers of services
11 under the Mental Health and Developmental Disabilities
12 Administrative Act, (iv) (v) providers of community-based
13 mental health services, and (v) (vi) providers of services
14 under programs administered by the State Board of Education,
15 in the accounts of those persons or entities maintained at a
16 bank, savings and loan association, or credit union, where
17 authorized by the payee. The Comptroller also may deposit
18 public aid payments for individuals who receive assistance
19 under Articles III, IV, VI, and X of the Illinois Public Aid
20 Code directly into an electronic benefits transfer account in
21 a financial institution approved by the State Treasurer as
22 prescribed by the Illinois Department of Human Services and
23 in accordance with the rules and regulations of that
24 Department and the rules and regulation adopted by the
25 Comptroller and the State Treasurer. The Comptroller, with
26 the approval of the State Treasurer, may provide by rule for
27 the electronic direct deposit of payments to public agencies
28 and any other payee of the State. The electronic direct
29 deposits may be made to the designated account in those
30 financial institutions specified in this Section for the
31 direct deposit of payments. Within 6 months after the
32 effective date of this amendatory Act of 1994, the
33 Comptroller shall establish a pilot program for the
34 electronic direct deposit of payments to local school
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1 districts, municipalities, and units of local government. The
2 payments may be made without the use of the voucher-warrant
3 system, provided that documentation of approval by the
4 Treasurer of each group of payments made by direct deposit
5 shall be retained by the Comptroller. The form and method of
6 the Treasurer's approval shall be established by the rules or
7 regulations adopted by the Comptroller under this Section.
8 (Source: P.A. 88-641, eff. 9-9-94; 88-643, eff. 1-1-95;
9 89-235, eff. 8-4-95; 89-507, eff. 7-1-97.)
10 (15 ILCS 405/9.03a new)
11 Sec. 9.03a. Required direct deposit.
12 (a) Notwithstanding any other provision of law, all
13 benefits paid by the Comptroller from the State pension
14 system shall be paid to recipients of such payments by
15 electronic funds transfer, unless another method has been
16 determined by the State Treasurer to be appropriate.
17 (b) Each recipient of benefits paid by the Comptroller
18 from the State pension system shall designate one or more
19 financial institutions or other authorized payment agents and
20 provide the payment certifying or authorizing agency
21 information necessary for the recipient to receive electronic
22 funds transfer payments through each institution so
23 designated.
24 (c) The head of each agency shall waive the requirements
25 of subsections (a) and (b) of this Section for a recipient of
26 benefits paid by the Comptroller from the State pension
27 system authorized or certified by the agency upon written
28 request by such recipient.
29 (d) Benefits paid by the Comptroller from the State
30 pension system shall be paid to any recipient granted a
31 waiver under subsection (c) by any method determined
32 appropriate by the State Treasurer.
33 (e) The State Treasurer may waive the requirements of
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1 subsections (a) and (b) of this Section for any group of
2 recipients upon request by the head of an agency under
3 standards prescribed by the State Treasurer.
4 (f) Benefits paid by the Comptroller from the State
5 pension system shall be paid to any member of a group granted
6 a waiver under subsection (e) by any method determined
7 appropriate by the State Treasurer.
8 (g) This Section shall apply only to recipients of
9 benefits paid by the Comptroller from the State pension
10 system who begin to receive such payments on or after January
11 1, 1998.
12 (h) The head of a State agency shall, with respect to
13 payments made or authorized by the agency, waive the
14 application of subsection (g) to a recipient of those
15 payments upon receipt of written certification from the
16 recipient that the recipient does not have an account with a
17 financial institution or an authorized payment agent.
18 (i) Notwithstanding any other provision of law
19 (including subsections (a) through (h) of this Section,)
20 except as provided in paragraph (j) all State payments made
21 after January 1, 1999, shall be made by electronic funds
22 transfer.
23 (j) The State Treasurer may waive application of this
24 subsection to payments:
25 (1) for individuals or classes of individuals for
26 whom compliance imposes a hardship;
27 (2) for classifications or types of checks; or
28 (3) in other circumstances as may be necessary.
29 (k) The State Treasurer shall make determinations under
30 subsection (j) based on standards developed by the Treasurer.
31 (l) Each recipient of State payments required to be made
32 by electronic funds transfer shall:
33 (1) designate one or more financial institutions or
34 other authorized agents to which such payments shall be
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1 made; and
2 (2) provide to the State agency that makes or
3 authorizes the payments information necessary for the
4 recipient to receive electronic funds transfer payments
5 through each institution or agent designated under
6 paragraph (1).
7 (m) The crediting of the amount of a payment to the
8 appropriate account on the books of a financial institution
9 or other authorized payment agent designated by a payment
10 recipient under this Section shall constitute a full
11 acquittance to the State of Illinois for the amount of the
12 payment.
13 (n) The State Treasurer may prescribe regulations that
14 the Treasurer considers necessary to carry out this Section.
15 (o) Regulations under this Section shall ensure that
16 individuals required under subsection (l) to have an account
17 at a financial institution because of the application of
18 subsection (i):
19 (1) will have access to such an account at a
20 reasonable cost; and
21 (2) are given the same consumer protections with
22 respect to the account as other account holders at the
23 same financial institution.
24 (p) For purposes of this Section, "electronic funds
25 transfer" means any transfer of funds, other than a
26 transaction originated by cash, check, or similar paper
27 instrument, that is initiated through an electronic terminal,
28 telephone, computer, or magnetic tape, for the purpose of
29 ordering, instructing, or authorizing a financial institution
30 to debit or credit an account. The term includes Automated
31 Clearing House transfers, Fed Wire transfers, transfers made
32 at automatic teller machines, and point-of-sale terminals.
33 Section 10. The Civil Administrative Code of Illinois is
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1 amended by adding Section 39c-1d as follows:
2 (20 ILCS 2505/39c-1d new)
3 Sec. 39c-1d. Use of electronic fund transfer system for
4 collection of certain taxes.
5 (a) Establishment of system.
6 (1) In general. The Department shall prescribe
7 such regulations as may be necessary for the development
8 and implementation of an electronic fund transfer system
9 which is required to be used for the collection of
10 depository taxes. Such system shall be designed in such
11 manner as may be necessary to ensure that such taxes are
12 credited to the general account of the Department on the
13 date on which such taxes would otherwise have been
14 required to be deposited under the State tax deposit
15 system.
16 (2) Exemptions. The regulations prescribed under
17 paragraph (1) may contain such exemptions as the
18 Department may deem appropriate.
19 (b) Phase-in requirements.
20 (1) In general. Except as provided in paragraph
21 (2) of this subsection, the regulations referred to in
22 paragraph (1) of subsection (a):
23 (A) shall contain appropriate procedures to
24 assure that an orderly conversion from the State tax
25 deposit system to the electronic fund transfer
26 system is accomplished, and
27 (B) may provide for a phase-in of such
28 electronic fund transfer system by classes of
29 taxpayers based on the aggregate undeposited taxes
30 of such taxpayers at the close of specified periods
31 and any other factors the Department may deem
32 appropriate.
33 (2) Phase-in requirements. The phase-in of the
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1 electronic fund transfer system shall be designed in such
2 manner as may be necessary to ensure that during each
3 fiscal year beginning after September 30, 1998, at least
4 the applicable required percentage prescribed in
5 paragraph (3) of the total other depository taxes shall
6 be collected by means of electronic fund transfer.
7 (3) Applicable required percentage. In the case of
8 depository taxes, except as provided in Section 601.1 of
9 the Illinois Income Tax Act, Section 9 of the Use Tax
10 Act, Section 9 of the Service Use Tax Act, Section 9 of
11 the Service Occupation Tax Act, and Section 3 of the
12 Retailers Occupation Tax Act; the applicable required
13 percentage is:
14 (A) 3% for fiscal year 1998.
15 (B) 20% for fiscal year 1999.
16 (C) 30% for fiscal year 2000.
17 (D) 60% for fiscal years 2001 and 2002.
18 (E) 94% for fiscal year 2003 and all fiscal
19 years thereafter.
20 (4) In the case of the Illinois Income Tax Act, the
21 Use Tax Act, the Service Use Tax Act, the Service
22 Occupation Tax Act, and the Retailers' Occupation Tax
23 Act, the Department shall prescribe a schedule to ensure
24 that by fiscal year 2003 and all fiscal years thereafter,
25 at least 94% of the taxes paid under those Acts is paid
26 by electronic funds transfer.
27 (c) Definitions. For purposes of this Section:
28 (1) "Depository tax" means any tax if the
29 Department is authorized to require deposits of such tax.
30 (2) "Electronic fund transfer" means any transfer
31 of funds, other than a transaction originated by check,
32 draft, or similar paper instrument, which is initiated
33 through an electronic terminal, telephone instrument, or
34 computer or magnetic tape so as to order, instruct or
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1 authorize a financial institution or other intermediary
2 to debit or credit an account.
3 Section 15. The Illinois Income Tax Act is amended by
4 changing Section 601.1 as follows:
5 (35 ILCS 5/601.1) (from Ch. 120, par. 6-601.1)
6 Sec. 601.1. Beginning on October 1, 1993, and for all
7 liability periods thereafter, a taxpayer, other than an
8 individual taxpayer, who has an average monthly tax liability
9 of $150,000 or more under this Act shall make all payments by
10 electronic funds transfer. Beginning on October 1, 1994, and
11 for all liability periods thereafter, a taxpayer, other than
12 an individual taxpayer, who has an average monthly tax
13 liability of $100,000 or more under this Act shall make all
14 payments by electronic funds transfer. Beginning on October
15 1, 1995, and for all liability periods thereafter, a
16 taxpayer, other than an individual taxpayer, who has an
17 average monthly tax liability of $50,000 or more under this
18 Act shall make all payments by electronic funds transfer. Any
19 taxpayer, other than an individual taxpayer, who is not
20 required to make payments by electronic funds transfer and
21 who has a tax liability under this Act, may make payments by
22 electronic funds transfer. The method of transfer shall be
23 determined by agreement between the affected taxpayer and the
24 Department.
25 Notwithstanding any provision of law to the contrary, the
26 Department shall prescribe rules in accordance with paragraph
27 (4) of subsection (b) of Section 39c-1d of the Civil
28 Administrative Code of Illinois to require additional
29 taxpayers to make payments under this Act by electronic funds
30 transfer.
31 (Source: P.A. 87-1132.)
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1 Section 20. The Use Tax Act is amended by changing
2 Section 9 as follows:
3 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
4 Sec. 9. Except as to motor vehicles, watercraft,
5 aircraft, and trailers that are required to be registered
6 with an agency of this State, each retailer required or
7 authorized to collect the tax imposed by this Act shall pay
8 to the Department the amount of such tax (except as otherwise
9 provided) at the time when he is required to file his return
10 for the period during which such tax was collected, less a
11 discount of 2.1% prior to January 1, 1990, and 1.75% on and
12 after January 1, 1990, or $5 per calendar year, whichever is
13 greater, which is allowed to reimburse the retailer for
14 expenses incurred in collecting the tax, keeping records,
15 preparing and filing returns, remitting the tax and supplying
16 data to the Department on request. In the case of retailers
17 who report and pay the tax on a transaction by transaction
18 basis, as provided in this Section, such discount shall be
19 taken with each such tax remittance instead of when such
20 retailer files his periodic return. A retailer need not
21 remit that part of any tax collected by him to the extent
22 that he is required to remit and does remit the tax imposed
23 by the Retailers' Occupation Tax Act, with respect to the
24 sale of the same property.
25 Where such tangible personal property is sold under a
26 conditional sales contract, or under any other form of sale
27 wherein the payment of the principal sum, or a part thereof,
28 is extended beyond the close of the period for which the
29 return is filed, the retailer, in collecting the tax (except
30 as to motor vehicles, watercraft, aircraft, and trailers that
31 are required to be registered with an agency of this State),
32 may collect for each tax return period, only the tax
33 applicable to that part of the selling price actually
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1 received during such tax return period.
2 Except as provided in this Section, on or before the
3 twentieth day of each calendar month, such retailer shall
4 file a return for the preceding calendar month. Such return
5 shall be filed on forms prescribed by the Department and
6 shall furnish such information as the Department may
7 reasonably require.
8 The Department may require returns to be filed on a
9 quarterly basis. If so required, a return for each calendar
10 quarter shall be filed on or before the twentieth day of the
11 calendar month following the end of such calendar quarter.
12 The taxpayer shall also file a return with the Department for
13 each of the first two months of each calendar quarter, on or
14 before the twentieth day of the following calendar month,
15 stating:
16 1. The name of the seller;
17 2. The address of the principal place of business
18 from which he engages in the business of selling tangible
19 personal property at retail in this State;
20 3. The total amount of taxable receipts received by
21 him during the preceding calendar month from sales of
22 tangible personal property by him during such preceding
23 calendar month, including receipts from charge and time
24 sales, but less all deductions allowed by law;
25 4. The amount of credit provided in Section 2d of
26 this Act;
27 5. The amount of tax due;
28 5-5. The signature of the taxpayer; and
29 6. Such other reasonable information as the
30 Department may require.
31 If a taxpayer fails to sign a return within 30 days after
32 the proper notice and demand for signature by the Department,
33 the return shall be considered valid and any amount shown to
34 be due on the return shall be deemed assessed.
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1 Beginning October 1, 1993, a taxpayer who has an average
2 monthly tax liability of $150,000 or more shall make all
3 payments required by rules of the Department by electronic
4 funds transfer. Beginning October 1, 1994, a taxpayer who has
5 an average monthly tax liability of $100,000 or more shall
6 make all payments required by rules of the Department by
7 electronic funds transfer. Beginning October 1, 1995, a
8 taxpayer who has an average monthly tax liability of $50,000
9 or more shall make all payments required by rules of the
10 Department by electronic funds transfer. The term "average
11 monthly tax liability" means the sum of the taxpayer's
12 liabilities under this Act, and under all other State and
13 local occupation and use tax laws administered by the
14 Department, for the immediately preceding calendar year
15 divided by 12.
16 Before August 1 of each year beginning in 1993, the
17 Department shall notify all taxpayers required to make
18 payments by electronic funds transfer. All taxpayers required
19 to make payments by electronic funds transfer shall make
20 those payments for a minimum of one year beginning on October
21 1.
22 Notwithstanding any provision of law to the contrary, the
23 Department shall prescribe rules in accordance with paragraph
24 (4) of subsection (b) of Section 39c-1d of the Civil
25 Administrative Code of Illinois to require additional
26 taxpayers to make payments under this Act by electronic funds
27 transfer.
28 Any taxpayer not required to make payments by electronic
29 funds transfer may make payments by electronic funds transfer
30 with the permission of the Department.
31 All taxpayers required to make payment by electronic
32 funds transfer and any taxpayers authorized to voluntarily
33 make payments by electronic funds transfer shall make those
34 payments in the manner authorized by the Department.
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1 The Department shall adopt such rules as are necessary to
2 effectuate a program of electronic funds transfer and the
3 requirements of this Section.
4 If the taxpayer's average monthly tax liability to the
5 Department under this Act, the Retailers' Occupation Tax Act,
6 the Service Occupation Tax Act, the Service Use Tax Act was
7 $10,000 or more during the preceding 4 complete calendar
8 quarters, he shall file a return with the Department each
9 month by the 20th day of the month next following the month
10 during which such tax liability is incurred and shall make
11 payments to the Department on or before the 7th, 15th, 22nd
12 and last day of the month during which such liability is
13 incurred. If the month during which such tax liability is
14 incurred began prior to January 1, 1985, each payment shall
15 be in an amount equal to 1/4 of the taxpayer's actual
16 liability for the month or an amount set by the Department
17 not to exceed 1/4 of the average monthly liability of the
18 taxpayer to the Department for the preceding 4 complete
19 calendar quarters (excluding the month of highest liability
20 and the month of lowest liability in such 4 quarter period).
21 If the month during which such tax liability is incurred
22 begins on or after January 1, 1985, and prior to January 1,
23 1987, each payment shall be in an amount equal to 22.5% of
24 the taxpayer's actual liability for the month or 27.5% of the
25 taxpayer's liability for the same calendar month of the
26 preceding year. If the month during which such tax liability
27 is incurred begins on or after January 1, 1987, and prior to
28 January 1, 1988, each payment shall be in an amount equal to
29 22.5% of the taxpayer's actual liability for the month or
30 26.25% of the taxpayer's liability for the same calendar
31 month of the preceding year. If the month during which such
32 tax liability is incurred begins on or after January 1, 1988,
33 and prior to January 1, 1989, or begins on or after January
34 1, 1996, each payment shall be in an amount equal to 22.5% of
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1 the taxpayer's actual liability for the month or 25% of the
2 taxpayer's liability for the same calendar month of the
3 preceding year. If the month during which such tax liability
4 is incurred begins on or after January 1, 1989, and prior to
5 January 1, 1996, each payment shall be in an amount equal to
6 22.5% of the taxpayer's actual liability for the month or 25%
7 of the taxpayer's liability for the same calendar month of
8 the preceding year or 100% of the taxpayer's actual liability
9 for the quarter monthly reporting period. The amount of such
10 quarter monthly payments shall be credited against the final
11 tax liability of the taxpayer's return for that month. Once
12 applicable, the requirement of the making of quarter monthly
13 payments to the Department shall continue until such
14 taxpayer's average monthly liability to the Department during
15 the preceding 4 complete calendar quarters (excluding the
16 month of highest liability and the month of lowest liability)
17 is less than $9,000, or until such taxpayer's average monthly
18 liability to the Department as computed for each calendar
19 quarter of the 4 preceding complete calendar quarter period
20 is less than $10,000. However, if a taxpayer can show the
21 Department that a substantial change in the taxpayer's
22 business has occurred which causes the taxpayer to anticipate
23 that his average monthly tax liability for the reasonably
24 foreseeable future will fall below $10,000, then such
25 taxpayer may petition the Department for change in such
26 taxpayer's reporting status. The Department shall change
27 such taxpayer's reporting status unless it finds that such
28 change is seasonal in nature and not likely to be long term.
29 If any such quarter monthly payment is not paid at the time
30 or in the amount required by this Section, then the
31 taxpayer's 2.1% or 1.75% vendors' discount shall be reduced
32 by 2.1% or 1.75%, as the case may be, of the difference
33 between the minimum amount due and the amount of such quarter
34 monthly payment actually and timely paid and the taxpayer
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1 shall be liable for penalties and interest on such
2 difference, except insofar as the taxpayer has previously
3 made payments for that month to the Department in excess of
4 the minimum payments previously due as provided in this
5 Section. The Department shall make reasonable rules and
6 regulations to govern the quarter monthly payment amount and
7 quarter monthly payment dates for taxpayers who file on other
8 than a calendar monthly basis.
9 If any such payment provided for in this Section exceeds
10 the taxpayer's liabilities under this Act, the Retailers'
11 Occupation Tax Act, the Service Occupation Tax Act and the
12 Service Use Tax Act, as shown by an original monthly return,
13 the Department shall issue to the taxpayer a credit
14 memorandum no later than 30 days after the date of payment,
15 which memorandum may be submitted by the taxpayer to the
16 Department in payment of tax liability subsequently to be
17 remitted by the taxpayer to the Department or be assigned by
18 the taxpayer to a similar taxpayer under this Act, the
19 Retailers' Occupation Tax Act, the Service Occupation Tax Act
20 or the Service Use Tax Act, in accordance with reasonable
21 rules and regulations to be prescribed by the Department,
22 except that if such excess payment is shown on an original
23 monthly return and is made after December 31, 1986, no credit
24 memorandum shall be issued, unless requested by the taxpayer.
25 If no such request is made, the taxpayer may credit such
26 excess payment against tax liability subsequently to be
27 remitted by the taxpayer to the Department under this Act,
28 the Retailers' Occupation Tax Act, the Service Occupation Tax
29 Act or the Service Use Tax Act, in accordance with reasonable
30 rules and regulations prescribed by the Department. If the
31 Department subsequently determines that all or any part of
32 the credit taken was not actually due to the taxpayer, the
33 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
34 by 2.1% or 1.75% of the difference between the credit taken
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1 and that actually due, and the taxpayer shall be liable for
2 penalties and interest on such difference.
3 If the retailer is otherwise required to file a monthly
4 return and if the retailer's average monthly tax liability to
5 the Department does not exceed $200, the Department may
6 authorize his returns to be filed on a quarter annual basis,
7 with the return for January, February, and March of a given
8 year being due by April 20 of such year; with the return for
9 April, May and June of a given year being due by July 20 of
10 such year; with the return for July, August and September of
11 a given year being due by October 20 of such year, and with
12 the return for October, November and December of a given year
13 being due by January 20 of the following year.
14 If the retailer is otherwise required to file a monthly
15 or quarterly return and if the retailer's average monthly tax
16 liability to the Department does not exceed $50, the
17 Department may authorize his returns to be filed on an annual
18 basis, with the return for a given year being due by January
19 20 of the following year.
20 Such quarter annual and annual returns, as to form and
21 substance, shall be subject to the same requirements as
22 monthly returns.
23 Notwithstanding any other provision in this Act
24 concerning the time within which a retailer may file his
25 return, in the case of any retailer who ceases to engage in a
26 kind of business which makes him responsible for filing
27 returns under this Act, such retailer shall file a final
28 return under this Act with the Department not more than one
29 month after discontinuing such business.
30 In addition, with respect to motor vehicles, watercraft,
31 aircraft, and trailers that are required to be registered
32 with an agency of this State, every retailer selling this
33 kind of tangible personal property shall file, with the
34 Department, upon a form to be prescribed and supplied by the
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1 Department, a separate return for each such item of tangible
2 personal property which the retailer sells, except that
3 where, in the same transaction, a retailer of aircraft,
4 watercraft, motor vehicles or trailers transfers more than
5 one aircraft, watercraft, motor vehicle or trailer to another
6 aircraft, watercraft, motor vehicle or trailer retailer for
7 the purpose of resale, that seller for resale may report the
8 transfer of all the aircraft, watercraft, motor vehicles or
9 trailers involved in that transaction to the Department on
10 the same uniform invoice-transaction reporting return form.
11 For purposes of this Section, "watercraft" means a Class 2,
12 Class 3, or Class 4 watercraft as defined in Section 3-2 of
13 the Boat Registration and Safety Act, a personal watercraft,
14 or any boat equipped with an inboard motor.
15 The transaction reporting return in the case of motor
16 vehicles or trailers that are required to be registered with
17 an agency of this State, shall be the same document as the
18 Uniform Invoice referred to in Section 5-402 of the Illinois
19 Vehicle Code and must show the name and address of the
20 seller; the name and address of the purchaser; the amount of
21 the selling price including the amount allowed by the
22 retailer for traded-in property, if any; the amount allowed
23 by the retailer for the traded-in tangible personal property,
24 if any, to the extent to which Section 2 of this Act allows
25 an exemption for the value of traded-in property; the balance
26 payable after deducting such trade-in allowance from the
27 total selling price; the amount of tax due from the retailer
28 with respect to such transaction; the amount of tax collected
29 from the purchaser by the retailer on such transaction (or
30 satisfactory evidence that such tax is not due in that
31 particular instance, if that is claimed to be the fact); the
32 place and date of the sale; a sufficient identification of
33 the property sold; such other information as is required in
34 Section 5-402 of the Illinois Vehicle Code, and such other
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1 information as the Department may reasonably require.
2 The transaction reporting return in the case of
3 watercraft and aircraft must show the name and address of the
4 seller; the name and address of the purchaser; the amount of
5 the selling price including the amount allowed by the
6 retailer for traded-in property, if any; the amount allowed
7 by the retailer for the traded-in tangible personal property,
8 if any, to the extent to which Section 2 of this Act allows
9 an exemption for the value of traded-in property; the balance
10 payable after deducting such trade-in allowance from the
11 total selling price; the amount of tax due from the retailer
12 with respect to such transaction; the amount of tax collected
13 from the purchaser by the retailer on such transaction (or
14 satisfactory evidence that such tax is not due in that
15 particular instance, if that is claimed to be the fact); the
16 place and date of the sale, a sufficient identification of
17 the property sold, and such other information as the
18 Department may reasonably require.
19 Such transaction reporting return shall be filed not
20 later than 20 days after the date of delivery of the item
21 that is being sold, but may be filed by the retailer at any
22 time sooner than that if he chooses to do so. The
23 transaction reporting return and tax remittance or proof of
24 exemption from the tax that is imposed by this Act may be
25 transmitted to the Department by way of the State agency with
26 which, or State officer with whom, the tangible personal
27 property must be titled or registered (if titling or
28 registration is required) if the Department and such agency
29 or State officer determine that this procedure will expedite
30 the processing of applications for title or registration.
31 With each such transaction reporting return, the retailer
32 shall remit the proper amount of tax due (or shall submit
33 satisfactory evidence that the sale is not taxable if that is
34 the case), to the Department or its agents, whereupon the
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1 Department shall issue, in the purchaser's name, a tax
2 receipt (or a certificate of exemption if the Department is
3 satisfied that the particular sale is tax exempt) which such
4 purchaser may submit to the agency with which, or State
5 officer with whom, he must title or register the tangible
6 personal property that is involved (if titling or
7 registration is required) in support of such purchaser's
8 application for an Illinois certificate or other evidence of
9 title or registration to such tangible personal property.
10 No retailer's failure or refusal to remit tax under this
11 Act precludes a user, who has paid the proper tax to the
12 retailer, from obtaining his certificate of title or other
13 evidence of title or registration (if titling or registration
14 is required) upon satisfying the Department that such user
15 has paid the proper tax (if tax is due) to the retailer. The
16 Department shall adopt appropriate rules to carry out the
17 mandate of this paragraph.
18 If the user who would otherwise pay tax to the retailer
19 wants the transaction reporting return filed and the payment
20 of tax or proof of exemption made to the Department before
21 the retailer is willing to take these actions and such user
22 has not paid the tax to the retailer, such user may certify
23 to the fact of such delay by the retailer, and may (upon the
24 Department being satisfied of the truth of such
25 certification) transmit the information required by the
26 transaction reporting return and the remittance for tax or
27 proof of exemption directly to the Department and obtain his
28 tax receipt or exemption determination, in which event the
29 transaction reporting return and tax remittance (if a tax
30 payment was required) shall be credited by the Department to
31 the proper retailer's account with the Department, but
32 without the 2.1% or 1.75% discount provided for in this
33 Section being allowed. When the user pays the tax directly
34 to the Department, he shall pay the tax in the same amount
-20- LRB9001867KDpcam
1 and in the same form in which it would be remitted if the tax
2 had been remitted to the Department by the retailer.
3 Where a retailer collects the tax with respect to the
4 selling price of tangible personal property which he sells
5 and the purchaser thereafter returns such tangible personal
6 property and the retailer refunds the selling price thereof
7 to the purchaser, such retailer shall also refund, to the
8 purchaser, the tax so collected from the purchaser. When
9 filing his return for the period in which he refunds such tax
10 to the purchaser, the retailer may deduct the amount of the
11 tax so refunded by him to the purchaser from any other use
12 tax which such retailer may be required to pay or remit to
13 the Department, as shown by such return, if the amount of the
14 tax to be deducted was previously remitted to the Department
15 by such retailer. If the retailer has not previously
16 remitted the amount of such tax to the Department, he is
17 entitled to no deduction under this Act upon refunding such
18 tax to the purchaser.
19 Any retailer filing a return under this Section shall
20 also include (for the purpose of paying tax thereon) the
21 total tax covered by such return upon the selling price of
22 tangible personal property purchased by him at retail from a
23 retailer, but as to which the tax imposed by this Act was not
24 collected from the retailer filing such return, and such
25 retailer shall remit the amount of such tax to the Department
26 when filing such return.
27 If experience indicates such action to be practicable,
28 the Department may prescribe and furnish a combination or
29 joint return which will enable retailers, who are required to
30 file returns hereunder and also under the Retailers'
31 Occupation Tax Act, to furnish all the return information
32 required by both Acts on the one form.
33 Where the retailer has more than one business registered
34 with the Department under separate registration under this
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1 Act, such retailer may not file each return that is due as a
2 single return covering all such registered businesses, but
3 shall file separate returns for each such registered
4 business.
5 Beginning January 1, 1990, each month the Department
6 shall pay into the State and Local Sales Tax Reform Fund, a
7 special fund in the State Treasury which is hereby created,
8 the net revenue realized for the preceding month from the 1%
9 tax on sales of food for human consumption which is to be
10 consumed off the premises where it is sold (other than
11 alcoholic beverages, soft drinks and food which has been
12 prepared for immediate consumption) and prescription and
13 nonprescription medicines, drugs, medical appliances and
14 insulin, urine testing materials, syringes and needles used
15 by diabetics.
16 Beginning January 1, 1990, each month the Department
17 shall pay into the County and Mass Transit District Fund 4%
18 of the net revenue realized for the preceding month from the
19 6.25% general rate on the selling price of tangible personal
20 property which is purchased outside Illinois at retail from a
21 retailer and which is titled or registered by an agency of
22 this State's government.
23 Beginning January 1, 1990, each month the Department
24 shall pay into the State and Local Sales Tax Reform Fund, a
25 special fund in the State Treasury, 20% of the net revenue
26 realized for the preceding month from the 6.25% general rate
27 on the selling price of tangible personal property, other
28 than tangible personal property which is purchased outside
29 Illinois at retail from a retailer and which is titled or
30 registered by an agency of this State's government.
31 Beginning January 1, 1990, each month the Department
32 shall pay into the Local Government Tax Fund 16% of the net
33 revenue realized for the preceding month from the 6.25%
34 general rate on the selling price of tangible personal
-22- LRB9001867KDpcam
1 property which is purchased outside Illinois at retail from a
2 retailer and which is titled or registered by an agency of
3 this State's government.
4 Of the remainder of the moneys received by the Department
5 pursuant to this Act, (a) 1.75% thereof shall be paid into
6 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
7 and on and after July 1, 1989, 3.8% thereof shall be paid
8 into the Build Illinois Fund; provided, however, that if in
9 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
10 as the case may be, of the moneys received by the Department
11 and required to be paid into the Build Illinois Fund pursuant
12 to Section 3 of the Retailers' Occupation Tax Act, Section 9
13 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
14 Section 9 of the Service Occupation Tax Act, such Acts being
15 hereinafter called the "Tax Acts" and such aggregate of 2.2%
16 or 3.8%, as the case may be, of moneys being hereinafter
17 called the "Tax Act Amount", and (2) the amount transferred
18 to the Build Illinois Fund from the State and Local Sales Tax
19 Reform Fund shall be less than the Annual Specified Amount
20 (as defined in Section 3 of the Retailers' Occupation Tax
21 Act), an amount equal to the difference shall be immediately
22 paid into the Build Illinois Fund from other moneys received
23 by the Department pursuant to the Tax Acts; and further
24 provided, that if on the last business day of any month the
25 sum of (1) the Tax Act Amount required to be deposited into
26 the Build Illinois Bond Account in the Build Illinois Fund
27 during such month and (2) the amount transferred during such
28 month to the Build Illinois Fund from the State and Local
29 Sales Tax Reform Fund shall have been less than 1/12 of the
30 Annual Specified Amount, an amount equal to the difference
31 shall be immediately paid into the Build Illinois Fund from
32 other moneys received by the Department pursuant to the Tax
33 Acts; and, further provided, that in no event shall the
34 payments required under the preceding proviso result in
-23- LRB9001867KDpcam
1 aggregate payments into the Build Illinois Fund pursuant to
2 this clause (b) for any fiscal year in excess of the greater
3 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
4 for such fiscal year; and, further provided, that the amounts
5 payable into the Build Illinois Fund under this clause (b)
6 shall be payable only until such time as the aggregate amount
7 on deposit under each trust indenture securing Bonds issued
8 and outstanding pursuant to the Build Illinois Bond Act is
9 sufficient, taking into account any future investment income,
10 to fully provide, in accordance with such indenture, for the
11 defeasance of or the payment of the principal of, premium, if
12 any, and interest on the Bonds secured by such indenture and
13 on any Bonds expected to be issued thereafter and all fees
14 and costs payable with respect thereto, all as certified by
15 the Director of the Bureau of the Budget. If on the last
16 business day of any month in which Bonds are outstanding
17 pursuant to the Build Illinois Bond Act, the aggregate of the
18 moneys deposited in the Build Illinois Bond Account in the
19 Build Illinois Fund in such month shall be less than the
20 amount required to be transferred in such month from the
21 Build Illinois Bond Account to the Build Illinois Bond
22 Retirement and Interest Fund pursuant to Section 13 of the
23 Build Illinois Bond Act, an amount equal to such deficiency
24 shall be immediately paid from other moneys received by the
25 Department pursuant to the Tax Acts to the Build Illinois
26 Fund; provided, however, that any amounts paid to the Build
27 Illinois Fund in any fiscal year pursuant to this sentence
28 shall be deemed to constitute payments pursuant to clause (b)
29 of the preceding sentence and shall reduce the amount
30 otherwise payable for such fiscal year pursuant to clause (b)
31 of the preceding sentence. The moneys received by the
32 Department pursuant to this Act and required to be deposited
33 into the Build Illinois Fund are subject to the pledge, claim
34 and charge set forth in Section 12 of the Build Illinois Bond
-24- LRB9001867KDpcam
1 Act.
2 Subject to payment of amounts into the Build Illinois
3 Fund as provided in the preceding paragraph or in any
4 amendment thereto hereafter enacted, the following specified
5 monthly installment of the amount requested in the
6 certificate of the Chairman of the Metropolitan Pier and
7 Exposition Authority provided under Section 8.25f of the
8 State Finance Act, but not in excess of the sums designated
9 as "Total Deposit", shall be deposited in the aggregate from
10 collections under Section 9 of the Use Tax Act, Section 9 of
11 the Service Use Tax Act, Section 9 of the Service Occupation
12 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
13 into the McCormick Place Expansion Project Fund in the
14 specified fiscal years.
15 Fiscal Year Total Deposit
16 1993 $0
17 1994 53,000,000
18 1995 58,000,000
19 1996 61,000,000
20 1997 64,000,000
21 1998 68,000,000
22 1999 71,000,000
23 2000 75,000,000
24 2001 80,000,000
25 2002 84,000,000
26 2003 89,000,000
27 2004 and 93,000,000
28 each fiscal year
29 thereafter that bonds
30 are outstanding under
31 Section 13.2 of the
32 Metropolitan Pier and
33 Exposition Authority
34 Act.
-25- LRB9001867KDpcam
1 Beginning July 20, 1993 and in each month of each fiscal
2 year thereafter, one-eighth of the amount requested in the
3 certificate of the Chairman of the Metropolitan Pier and
4 Exposition Authority for that fiscal year, less the amount
5 deposited into the McCormick Place Expansion Project Fund by
6 the State Treasurer in the respective month under subsection
7 (g) of Section 13 of the Metropolitan Pier and Exposition
8 Authority Act, plus cumulative deficiencies in the deposits
9 required under this Section for previous months and years,
10 shall be deposited into the McCormick Place Expansion Project
11 Fund, until the full amount requested for the fiscal year,
12 but not in excess of the amount specified above as "Total
13 Deposit", has been deposited.
14 Subject to payment of amounts into the Build Illinois
15 Fund and the McCormick Place Expansion Project Fund pursuant
16 to the preceding paragraphs or in any amendment thereto
17 hereafter enacted, each month the Department shall pay into
18 the Local Government Distributive Fund .4% of the net revenue
19 realized for the preceding month from the 5% general rate, or
20 .4% of 80% of the net revenue realized for the preceding
21 month from the 6.25% general rate, as the case may be, on the
22 selling price of tangible personal property which amount
23 shall, subject to appropriation, be distributed as provided
24 in Section 2 of the State Revenue Sharing Act. No payments or
25 distributions pursuant to this paragraph shall be made if the
26 tax imposed by this Act on photoprocessing products is
27 declared unconstitutional, or if the proceeds from such tax
28 are unavailable for distribution because of litigation.
29 Subject to payment of amounts into the Build Illinois
30 Fund, the McCormick Place Expansion Project Fund, and the
31 Local Government Distributive Fund pursuant to the preceding
32 paragraphs or in any amendments thereto hereafter enacted,
33 beginning July 1, 1993, the Department shall each month pay
34 into the Illinois Tax Increment Fund 0.27% of 80% of the net
-26- LRB9001867KDpcam
1 revenue realized for the preceding month from the 6.25%
2 general rate on the selling price of tangible personal
3 property.
4 Of the remainder of the moneys received by the Department
5 pursuant to this Act, 75% thereof shall be paid into the
6 State Treasury and 25% shall be reserved in a special account
7 and used only for the transfer to the Common School Fund as
8 part of the monthly transfer from the General Revenue Fund in
9 accordance with Section 8a of the State Finance Act.
10 As soon as possible after the first day of each month,
11 upon certification of the Department of Revenue, the
12 Comptroller shall order transferred and the Treasurer shall
13 transfer from the General Revenue Fund to the Motor Fuel Tax
14 Fund an amount equal to 1.7% of 80% of the net revenue
15 realized under this Act for the second preceding month;
16 except that this transfer shall not be made for the months
17 February through June of 1992.
18 Net revenue realized for a month shall be the revenue
19 collected by the State pursuant to this Act, less the amount
20 paid out during that month as refunds to taxpayers for
21 overpayment of liability.
22 For greater simplicity of administration, manufacturers,
23 importers and wholesalers whose products are sold at retail
24 in Illinois by numerous retailers, and who wish to do so, may
25 assume the responsibility for accounting and paying to the
26 Department all tax accruing under this Act with respect to
27 such sales, if the retailers who are affected do not make
28 written objection to the Department to this arrangement.
29 (Source: P.A. 88-45; 88-116; 88-194; 88-660, eff. 9-16-94;
30 88-669, eff. 11-29-94; 88-670, eff. 12-2-94; 89-379, eff.
31 1-1-96; 89-626, eff. 8-9-96.)
32 Section 25. The Service Use Tax Act is amended by
33 changing Section 9 as follows:
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1 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
2 Sec. 9. Each serviceman required or authorized to
3 collect the tax herein imposed shall pay to the Department
4 the amount of such tax (except as otherwise provided) at the
5 time when he is required to file his return for the period
6 during which such tax was collected, less a discount of 2.1%
7 prior to January 1, 1990 and 1.75% on and after January 1,
8 1990, or $5 per calendar year, whichever is greater, which is
9 allowed to reimburse the serviceman for expenses incurred in
10 collecting the tax, keeping records, preparing and filing
11 returns, remitting the tax and supplying data to the
12 Department on request. A serviceman need not remit that part
13 of any tax collected by him to the extent that he is required
14 to pay and does pay the tax imposed by the Service Occupation
15 Tax Act with respect to his sale of service involving the
16 incidental transfer by him of the same property.
17 Except as provided hereinafter in this Section, on or
18 before the twentieth day of each calendar month, such
19 serviceman shall file a return for the preceding calendar
20 month in accordance with reasonable Rules and Regulations to
21 be promulgated by the Department. Such return shall be filed
22 on a form prescribed by the Department and shall contain such
23 information as the Department may reasonably require.
24 The Department may require returns to be filed on a
25 quarterly basis. If so required, a return for each calendar
26 quarter shall be filed on or before the twentieth day of the
27 calendar month following the end of such calendar quarter.
28 The taxpayer shall also file a return with the Department for
29 each of the first two months of each calendar quarter, on or
30 before the twentieth day of the following calendar month,
31 stating:
32 1. The name of the seller;
33 2. The address of the principal place of business
34 from which he engages in business as a serviceman in this
-28- LRB9001867KDpcam
1 State;
2 3. The total amount of taxable receipts received by
3 him during the preceding calendar month, including
4 receipts from charge and time sales, but less all
5 deductions allowed by law;
6 4. The amount of credit provided in Section 2d of
7 this Act;
8 5. The amount of tax due;
9 5-5. The signature of the taxpayer; and
10 6. Such other reasonable information as the
11 Department may require.
12 If a taxpayer fails to sign a return within 30 days after
13 the proper notice and demand for signature by the Department,
14 the return shall be considered valid and any amount shown to
15 be due on the return shall be deemed assessed.
16 Beginning October 1, 1993, a taxpayer who has an average
17 monthly tax liability of $150,000 or more shall make all
18 payments required by rules of the Department by electronic
19 funds transfer. Beginning October 1, 1994, a taxpayer who
20 has an average monthly tax liability of $100,000 or more
21 shall make all payments required by rules of the Department
22 by electronic funds transfer. Beginning October 1, 1995, a
23 taxpayer who has an average monthly tax liability of $50,000
24 or more shall make all payments required by rules of the
25 Department by electronic funds transfer. The term "average
26 monthly tax liability" means the sum of the taxpayer's
27 liabilities under this Act, and under all other State and
28 local occupation and use tax laws administered by the
29 Department, for the immediately preceding calendar year
30 divided by 12.
31 Before August 1 of each year beginning in 1993, the
32 Department shall notify all taxpayers required to make
33 payments by electronic funds transfer. All taxpayers required
34 to make payments by electronic funds transfer shall make
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1 those payments for a minimum of one year beginning on October
2 1.
3 Notwithstanding any provision of law to the contrary, the
4 Department shall prescribe rules in accordance with paragraph
5 (4) of subsection (b) of Section 39c-1d of the Civil
6 Administrative Code of Illinois to require additional
7 taxpayers to make payments under this Act by electronic funds
8 transfer.
9 Any taxpayer not required to make payments by electronic
10 funds transfer may make payments by electronic funds transfer
11 with the permission of the Department.
12 All taxpayers required to make payment by electronic
13 funds transfer and any taxpayers authorized to voluntarily
14 make payments by electronic funds transfer shall make those
15 payments in the manner authorized by the Department.
16 The Department shall adopt such rules as are necessary to
17 effectuate a program of electronic funds transfer and the
18 requirements of this Section.
19 If the serviceman is otherwise required to file a monthly
20 return and if the serviceman's average monthly tax liability
21 to the Department does not exceed $200, the Department may
22 authorize his returns to be filed on a quarter annual basis,
23 with the return for January, February and March of a given
24 year being due by April 20 of such year; with the return for
25 April, May and June of a given year being due by July 20 of
26 such year; with the return for July, August and September of
27 a given year being due by October 20 of such year, and with
28 the return for October, November and December of a given year
29 being due by January 20 of the following year.
30 If the serviceman is otherwise required to file a monthly
31 or quarterly return and if the serviceman's average monthly
32 tax liability to the Department does not exceed $50, the
33 Department may authorize his returns to be filed on an annual
34 basis, with the return for a given year being due by January
-30- LRB9001867KDpcam
1 20 of the following year.
2 Such quarter annual and annual returns, as to form and
3 substance, shall be subject to the same requirements as
4 monthly returns.
5 Notwithstanding any other provision in this Act
6 concerning the time within which a serviceman may file his
7 return, in the case of any serviceman who ceases to engage in
8 a kind of business which makes him responsible for filing
9 returns under this Act, such serviceman shall file a final
10 return under this Act with the Department not more than 1
11 month after discontinuing such business.
12 Where a serviceman collects the tax with respect to the
13 selling price of property which he sells and the purchaser
14 thereafter returns such property and the serviceman refunds
15 the selling price thereof to the purchaser, such serviceman
16 shall also refund, to the purchaser, the tax so collected
17 from the purchaser. When filing his return for the period in
18 which he refunds such tax to the purchaser, the serviceman
19 may deduct the amount of the tax so refunded by him to the
20 purchaser from any other Service Use Tax, Service Occupation
21 Tax, retailers' occupation tax or use tax which such
22 serviceman may be required to pay or remit to the Department,
23 as shown by such return, provided that the amount of the tax
24 to be deducted shall previously have been remitted to the
25 Department by such serviceman. If the serviceman shall not
26 previously have remitted the amount of such tax to the
27 Department, he shall be entitled to no deduction hereunder
28 upon refunding such tax to the purchaser.
29 Any serviceman filing a return hereunder shall also
30 include the total tax upon the selling price of tangible
31 personal property purchased for use by him as an incident to
32 a sale of service, and such serviceman shall remit the amount
33 of such tax to the Department when filing such return.
34 If experience indicates such action to be practicable,
-31- LRB9001867KDpcam
1 the Department may prescribe and furnish a combination or
2 joint return which will enable servicemen, who are required
3 to file returns hereunder and also under the Service
4 Occupation Tax Act, to furnish all the return information
5 required by both Acts on the one form.
6 Where the serviceman has more than one business
7 registered with the Department under separate registration
8 hereunder, such serviceman shall not file each return that is
9 due as a single return covering all such registered
10 businesses, but shall file separate returns for each such
11 registered business.
12 Beginning January 1, 1990, each month the Department
13 shall pay into the State and Local Tax Reform Fund, a special
14 fund in the State Treasury, the net revenue realized for the
15 preceding month from the 1% tax on sales of food for human
16 consumption which is to be consumed off the premises where it
17 is sold (other than alcoholic beverages, soft drinks and food
18 which has been prepared for immediate consumption) and
19 prescription and nonprescription medicines, drugs, medical
20 appliances and insulin, urine testing materials, syringes and
21 needles used by diabetics.
22 Beginning January 1, 1990, each month the Department
23 shall pay into the State and Local Sales Tax Reform Fund 20%
24 of the net revenue realized for the preceding month from the
25 6.25% general rate on transfers of tangible personal
26 property, other than tangible personal property which is
27 purchased outside Illinois at retail from a retailer and
28 which is titled or registered by an agency of this State's
29 government.
30 Of the remainder of the moneys received by the Department
31 pursuant to this Act, (a) 1.75% thereof shall be paid into
32 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
33 and on and after July 1, 1989, 3.8% thereof shall be paid
34 into the Build Illinois Fund; provided, however, that if in
-32- LRB9001867KDpcam
1 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
2 as the case may be, of the moneys received by the Department
3 and required to be paid into the Build Illinois Fund pursuant
4 to Section 3 of the Retailers' Occupation Tax Act, Section 9
5 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
6 Section 9 of the Service Occupation Tax Act, such Acts being
7 hereinafter called the "Tax Acts" and such aggregate of 2.2%
8 or 3.8%, as the case may be, of moneys being hereinafter
9 called the "Tax Act Amount", and (2) the amount transferred
10 to the Build Illinois Fund from the State and Local Sales Tax
11 Reform Fund shall be less than the Annual Specified Amount
12 (as defined in Section 3 of the Retailers' Occupation Tax
13 Act), an amount equal to the difference shall be immediately
14 paid into the Build Illinois Fund from other moneys received
15 by the Department pursuant to the Tax Acts; and further
16 provided, that if on the last business day of any month the
17 sum of (1) the Tax Act Amount required to be deposited into
18 the Build Illinois Bond Account in the Build Illinois Fund
19 during such month and (2) the amount transferred during such
20 month to the Build Illinois Fund from the State and Local
21 Sales Tax Reform Fund shall have been less than 1/12 of the
22 Annual Specified Amount, an amount equal to the difference
23 shall be immediately paid into the Build Illinois Fund from
24 other moneys received by the Department pursuant to the Tax
25 Acts; and, further provided, that in no event shall the
26 payments required under the preceding proviso result in
27 aggregate payments into the Build Illinois Fund pursuant to
28 this clause (b) for any fiscal year in excess of the greater
29 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
30 for such fiscal year; and, further provided, that the amounts
31 payable into the Build Illinois Fund under this clause (b)
32 shall be payable only until such time as the aggregate amount
33 on deposit under each trust indenture securing Bonds issued
34 and outstanding pursuant to the Build Illinois Bond Act is
-33- LRB9001867KDpcam
1 sufficient, taking into account any future investment income,
2 to fully provide, in accordance with such indenture, for the
3 defeasance of or the payment of the principal of, premium, if
4 any, and interest on the Bonds secured by such indenture and
5 on any Bonds expected to be issued thereafter and all fees
6 and costs payable with respect thereto, all as certified by
7 the Director of the Bureau of the Budget. If on the last
8 business day of any month in which Bonds are outstanding
9 pursuant to the Build Illinois Bond Act, the aggregate of the
10 moneys deposited in the Build Illinois Bond Account in the
11 Build Illinois Fund in such month shall be less than the
12 amount required to be transferred in such month from the
13 Build Illinois Bond Account to the Build Illinois Bond
14 Retirement and Interest Fund pursuant to Section 13 of the
15 Build Illinois Bond Act, an amount equal to such deficiency
16 shall be immediately paid from other moneys received by the
17 Department pursuant to the Tax Acts to the Build Illinois
18 Fund; provided, however, that any amounts paid to the Build
19 Illinois Fund in any fiscal year pursuant to this sentence
20 shall be deemed to constitute payments pursuant to clause (b)
21 of the preceding sentence and shall reduce the amount
22 otherwise payable for such fiscal year pursuant to clause (b)
23 of the preceding sentence. The moneys received by the
24 Department pursuant to this Act and required to be deposited
25 into the Build Illinois Fund are subject to the pledge, claim
26 and charge set forth in Section 12 of the Build Illinois Bond
27 Act.
28 Subject to payment of amounts into the Build Illinois
29 Fund as provided in the preceding paragraph or in any
30 amendment thereto hereafter enacted, the following specified
31 monthly installment of the amount requested in the
32 certificate of the Chairman of the Metropolitan Pier and
33 Exposition Authority provided under Section 8.25f of the
34 State Finance Act, but not in excess of the sums designated
-34- LRB9001867KDpcam
1 as "Total Deposit", shall be deposited in the aggregate from
2 collections under Section 9 of the Use Tax Act, Section 9 of
3 the Service Use Tax Act, Section 9 of the Service Occupation
4 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
5 into the McCormick Place Expansion Project Fund in the
6 specified fiscal years.
7 Fiscal Year Total Deposit
8 1993 $0
9 1994 53,000,000
10 1995 58,000,000
11 1996 61,000,000
12 1997 64,000,000
13 1998 68,000,000
14 1999 71,000,000
15 2000 75,000,000
16 2001 80,000,000
17 2002 84,000,000
18 2003 89,000,000
19 2004 and 93,000,000
20 each fiscal year
21 thereafter that bonds
22 are outstanding under
23 Section 13.2 of the
24 Metropolitan Pier and
25 Exposition Authority Act.
26 Beginning July 20, 1993 and in each month of each fiscal
27 year thereafter, one-eighth of the amount requested in the
28 certificate of the Chairman of the Metropolitan Pier and
29 Exposition Authority for that fiscal year, less the amount
30 deposited into the McCormick Place Expansion Project Fund by
31 the State Treasurer in the respective month under subsection
32 (g) of Section 13 of the Metropolitan Pier and Exposition
33 Authority Act, plus cumulative deficiencies in the deposits
34 required under this Section for previous months and years,
-35- LRB9001867KDpcam
1 shall be deposited into the McCormick Place Expansion Project
2 Fund, until the full amount requested for the fiscal year,
3 but not in excess of the amount specified above as "Total
4 Deposit", has been deposited.
5 Subject to payment of amounts into the Build Illinois
6 Fund and the McCormick Place Expansion Project Fund pursuant
7 to the preceding paragraphs or in any amendment thereto
8 hereafter enacted, each month the Department shall pay into
9 the Local Government Distributive Fund 0.4% of the net
10 revenue realized for the preceding month from the 5% general
11 rate or 0.4% of 80% of the net revenue realized for the
12 preceding month from the 6.25% general rate, as the case may
13 be, on the selling price of tangible personal property which
14 amount shall, subject to appropriation, be distributed as
15 provided in Section 2 of the State Revenue Sharing Act. No
16 payments or distributions pursuant to this paragraph shall be
17 made if the tax imposed by this Act on photo processing
18 products is declared unconstitutional, or if the proceeds
19 from such tax are unavailable for distribution because of
20 litigation.
21 Subject to payment of amounts into the Build Illinois
22 Fund, the McCormick Place Expansion Project Fund, and the
23 Local Government Distributive Fund pursuant to the preceding
24 paragraphs or in any amendments thereto hereafter enacted,
25 beginning July 1, 1993, the Department shall each month pay
26 into the Illinois Tax Increment Fund 0.27% of 80% of the net
27 revenue realized for the preceding month from the 6.25%
28 general rate on the selling price of tangible personal
29 property.
30 All remaining moneys received by the Department pursuant
31 to this Act shall be paid into the General Revenue Fund of
32 the State Treasury.
33 As soon as possible after the first day of each month,
34 upon certification of the Department of Revenue, the
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1 Comptroller shall order transferred and the Treasurer shall
2 transfer from the General Revenue Fund to the Motor Fuel Tax
3 Fund an amount equal to 1.7% of 80% of the net revenue
4 realized under this Act for the second preceding month;
5 except that this transfer shall not be made for the months
6 February through June, 1992.
7 Net revenue realized for a month shall be the revenue
8 collected by the State pursuant to this Act, less the amount
9 paid out during that month as refunds to taxpayers for
10 overpayment of liability.
11 (Source: P.A. 88-45; 88-116; 88-669, eff. 11-29-94; 89-379,
12 eff. 1-1-96.)
13 Section 30. The Service Occupation Tax Act is amended by
14 changing Section 9 as follows:
15 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
16 Sec. 9. Each serviceman required or authorized to
17 collect the tax herein imposed shall pay to the Department
18 the amount of such tax at the time when he is required to
19 file his return for the period during which such tax was
20 collectible, less a discount of 2.1% prior to January 1,
21 1990, and 1.75% on and after January 1, 1990, or $5 per
22 calendar year, whichever is greater, which is allowed to
23 reimburse the serviceman for expenses incurred in collecting
24 the tax, keeping records, preparing and filing returns,
25 remitting the tax and supplying data to the Department on
26 request.
27 Where such tangible personal property is sold under a
28 conditional sales contract, or under any other form of sale
29 wherein the payment of the principal sum, or a part thereof,
30 is extended beyond the close of the period for which the
31 return is filed, the serviceman, in collecting the tax may
32 collect, for each tax return period, only the tax applicable
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1 to the part of the selling price actually received during
2 such tax return period.
3 Except as provided hereinafter in this Section, on or
4 before the twentieth day of each calendar month, such
5 serviceman shall file a return for the preceding calendar
6 month in accordance with reasonable rules and regulations to
7 be promulgated by the Department of Revenue. Such return
8 shall be filed on a form prescribed by the Department and
9 shall contain such information as the Department may
10 reasonably require.
11 The Department may require returns to be filed on a
12 quarterly basis. If so required, a return for each calendar
13 quarter shall be filed on or before the twentieth day of the
14 calendar month following the end of such calendar quarter.
15 The taxpayer shall also file a return with the Department for
16 each of the first two months of each calendar quarter, on or
17 before the twentieth day of the following calendar month,
18 stating:
19 1. The name of the seller;
20 2. The address of the principal place of business
21 from which he engages in business as a serviceman in this
22 State;
23 3. The total amount of taxable receipts received by
24 him during the preceding calendar month, including
25 receipts from charge and time sales, but less all
26 deductions allowed by law;
27 4. The amount of credit provided in Section 2d of
28 this Act;
29 5. The amount of tax due;
30 5-5. The signature of the taxpayer; and
31 6. Such other reasonable information as the
32 Department may require.
33 If a taxpayer fails to sign a return within 30 days after
34 the proper notice and demand for signature by the Department,
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1 the return shall be considered valid and any amount shown to
2 be due on the return shall be deemed assessed.
3 A serviceman may accept a Manufacturer's Purchase Credit
4 certification from a purchaser in satisfaction of Service Use
5 Tax as provided in Section 3-70 of the Service Use Tax Act if
6 the purchaser provides the appropriate documentation as
7 required by Section 3-70 of the Service Use Tax Act. A
8 Manufacturer's Purchase Credit certification, accepted by a
9 serviceman as provided in Section 3-70 of the Service Use Tax
10 Act, may be used by that serviceman to satisfy Service
11 Occupation Tax liability in the amount claimed in the
12 certification, not to exceed 6.25% of the receipts subject to
13 tax from a qualifying purchase.
14 If the serviceman's average monthly tax liability to the
15 Department does not exceed $200, the Department may authorize
16 his returns to be filed on a quarter annual basis, with the
17 return for January, February and March of a given year being
18 due by April 20 of such year; with the return for April, May
19 and June of a given year being due by July 20 of such year;
20 with the return for July, August and September of a given
21 year being due by October 20 of such year, and with the
22 return for October, November and December of a given year
23 being due by January 20 of the following year.
24 If the serviceman's average monthly tax liability to the
25 Department does not exceed $50, the Department may authorize
26 his returns to be filed on an annual basis, with the return
27 for a given year being due by January 20 of the following
28 year.
29 Such quarter annual and annual returns, as to form and
30 substance, shall be subject to the same requirements as
31 monthly returns.
32 Notwithstanding any other provision in this Act
33 concerning the time within which a serviceman may file his
34 return, in the case of any serviceman who ceases to engage in
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1 a kind of business which makes him responsible for filing
2 returns under this Act, such serviceman shall file a final
3 return under this Act with the Department not more than 1
4 month after discontinuing such business.
5 Beginning October 1, 1993, a taxpayer who has an average
6 monthly tax liability of $150,000 or more shall make all
7 payments required by rules of the Department by electronic
8 funds transfer. Beginning October 1, 1994, a taxpayer who
9 has an average monthly tax liability of $100,000 or more
10 shall make all payments required by rules of the Department
11 by electronic funds transfer. Beginning October 1, 1995, a
12 taxpayer who has an average monthly tax liability of $50,000
13 or more shall make all payments required by rules of the
14 Department by electronic funds transfer. The term "average
15 monthly tax liability" means the sum of the taxpayer's
16 liabilities under this Act, and under all other State and
17 local occupation and use tax laws administered by the
18 Department, for the immediately preceding calendar year
19 divided by 12.
20 Before August 1 of each year beginning in 1993, the
21 Department shall notify all taxpayers required to make
22 payments by electronic funds transfer. All taxpayers
23 required to make payments by electronic funds transfer shall
24 make those payments for a minimum of one year beginning on
25 October 1.
26 Notwithstanding any provision of law to the contrary, the
27 Department shall prescribe rules in accordance with paragraph
28 (4) of subsection (b) of Section 39c-1d of the Civil
29 Administrative Code of Illinois to require additional
30 taxpayers to make payments under this Act by electronic funds
31 transfer.
32 Any taxpayer not required to make payments by electronic
33 funds transfer may make payments by electronic funds transfer
34 with the permission of the Department.
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1 All taxpayers required to make payment by electronic
2 funds transfer and any taxpayers authorized to voluntarily
3 make payments by electronic funds transfer shall make those
4 payments in the manner authorized by the Department.
5 The Department shall adopt such rules as are necessary to
6 effectuate a program of electronic funds transfer and the
7 requirements of this Section.
8 Where a serviceman collects the tax with respect to the
9 selling price of tangible personal property which he sells
10 and the purchaser thereafter returns such tangible personal
11 property and the serviceman refunds the selling price thereof
12 to the purchaser, such serviceman shall also refund, to the
13 purchaser, the tax so collected from the purchaser. When
14 filing his return for the period in which he refunds such tax
15 to the purchaser, the serviceman may deduct the amount of the
16 tax so refunded by him to the purchaser from any other
17 Service Occupation Tax, Service Use Tax, Retailers'
18 Occupation Tax or Use Tax which such serviceman may be
19 required to pay or remit to the Department, as shown by such
20 return, provided that the amount of the tax to be deducted
21 shall previously have been remitted to the Department by such
22 serviceman. If the serviceman shall not previously have
23 remitted the amount of such tax to the Department, he shall
24 be entitled to no deduction hereunder upon refunding such tax
25 to the purchaser.
26 If experience indicates such action to be practicable,
27 the Department may prescribe and furnish a combination or
28 joint return which will enable servicemen, who are required
29 to file returns hereunder and also under the Retailers'
30 Occupation Tax Act, the Use Tax Act or the Service Use Tax
31 Act, to furnish all the return information required by all
32 said Acts on the one form.
33 Where the serviceman has more than one business
34 registered with the Department under separate registrations
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1 hereunder, such serviceman shall file separate returns for
2 each registered business.
3 Beginning January 1, 1990, each month the Department
4 shall pay into the Local Government Tax Fund the revenue
5 realized for the preceding month from the 1% tax on sales of
6 food for human consumption which is to be consumed off the
7 premises where it is sold (other than alcoholic beverages,
8 soft drinks and food which has been prepared for immediate
9 consumption) and prescription and nonprescription medicines,
10 drugs, medical appliances and insulin, urine testing
11 materials, syringes and needles used by diabetics.
12 Beginning January 1, 1990, each month the Department
13 shall pay into the County and Mass Transit District Fund 4%
14 of the revenue realized for the preceding month from the
15 6.25% general rate.
16 Beginning January 1, 1990, each month the Department
17 shall pay into the Local Government Tax Fund 16% of the
18 revenue realized for the preceding month from the 6.25%
19 general rate on transfers of tangible personal property.
20 Of the remainder of the moneys received by the Department
21 pursuant to this Act, (a) 1.75% thereof shall be paid into
22 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
23 and on and after July 1, 1989, 3.8% thereof shall be paid
24 into the Build Illinois Fund; provided, however, that if in
25 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
26 as the case may be, of the moneys received by the Department
27 and required to be paid into the Build Illinois Fund pursuant
28 to Section 3 of the Retailers' Occupation Tax Act, Section 9
29 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
30 Section 9 of the Service Occupation Tax Act, such Acts being
31 hereinafter called the "Tax Acts" and such aggregate of 2.2%
32 or 3.8%, as the case may be, of moneys being hereinafter
33 called the "Tax Act Amount", and (2) the amount transferred
34 to the Build Illinois Fund from the State and Local Sales Tax
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1 Reform Fund shall be less than the Annual Specified Amount
2 (as defined in Section 3 of the Retailers' Occupation Tax
3 Act), an amount equal to the difference shall be immediately
4 paid into the Build Illinois Fund from other moneys received
5 by the Department pursuant to the Tax Acts; and further
6 provided, that if on the last business day of any month the
7 sum of (1) the Tax Act Amount required to be deposited into
8 the Build Illinois Account in the Build Illinois Fund during
9 such month and (2) the amount transferred during such month
10 to the Build Illinois Fund from the State and Local Sales Tax
11 Reform Fund shall have been less than 1/12 of the Annual
12 Specified Amount, an amount equal to the difference shall be
13 immediately paid into the Build Illinois Fund from other
14 moneys received by the Department pursuant to the Tax Acts;
15 and, further provided, that in no event shall the payments
16 required under the preceding proviso result in aggregate
17 payments into the Build Illinois Fund pursuant to this clause
18 (b) for any fiscal year in excess of the greater of (i) the
19 Tax Act Amount or (ii) the Annual Specified Amount for such
20 fiscal year; and, further provided, that the amounts payable
21 into the Build Illinois Fund under this clause (b) shall be
22 payable only until such time as the aggregate amount on
23 deposit under each trust indenture securing Bonds issued and
24 outstanding pursuant to the Build Illinois Bond Act is
25 sufficient, taking into account any future investment income,
26 to fully provide, in accordance with such indenture, for the
27 defeasance of or the payment of the principal of, premium, if
28 any, and interest on the Bonds secured by such indenture and
29 on any Bonds expected to be issued thereafter and all fees
30 and costs payable with respect thereto, all as certified by
31 the Director of the Bureau of the Budget. If on the last
32 business day of any month in which Bonds are outstanding
33 pursuant to the Build Illinois Bond Act, the aggregate of the
34 moneys deposited in the Build Illinois Bond Account in the
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1 Build Illinois Fund in such month shall be less than the
2 amount required to be transferred in such month from the
3 Build Illinois Bond Account to the Build Illinois Bond
4 Retirement and Interest Fund pursuant to Section 13 of the
5 Build Illinois Bond Act, an amount equal to such deficiency
6 shall be immediately paid from other moneys received by the
7 Department pursuant to the Tax Acts to the Build Illinois
8 Fund; provided, however, that any amounts paid to the Build
9 Illinois Fund in any fiscal year pursuant to this sentence
10 shall be deemed to constitute payments pursuant to clause (b)
11 of the preceding sentence and shall reduce the amount
12 otherwise payable for such fiscal year pursuant to clause (b)
13 of the preceding sentence. The moneys received by the
14 Department pursuant to this Act and required to be deposited
15 into the Build Illinois Fund are subject to the pledge, claim
16 and charge set forth in Section 12 of the Build Illinois Bond
17 Act.
18 Subject to payment of amounts into the Build Illinois
19 Fund as provided in the preceding paragraph or in any
20 amendment thereto hereafter enacted, the following specified
21 monthly installment of the amount requested in the
22 certificate of the Chairman of the Metropolitan Pier and
23 Exposition Authority provided under Section 8.25f of the
24 State Finance Act, but not in excess of the sums designated
25 as "Total Deposit", shall be deposited in the aggregate from
26 collections under Section 9 of the Use Tax Act, Section 9 of
27 the Service Use Tax Act, Section 9 of the Service Occupation
28 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
29 into the McCormick Place Expansion Project Fund in the
30 specified fiscal years.
31 Fiscal Year Total Deposit
32 1993 $0
33 1994 53,000,000
34 1995 58,000,000
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1 1996 61,000,000
2 1997 64,000,000
3 1998 68,000,000
4 1999 71,000,000
5 2000 75,000,000
6 2001 80,000,000
7 2002 84,000,000
8 2003 89,000,000
9 2004 and 93,000,000
10 each fiscal year
11 thereafter that bonds
12 are outstanding under
13 Section 13.2 of the
14 Metropolitan Pier and
15 Exposition Authority
16 Act.
17 Beginning July 20, 1993 and in each month of each fiscal
18 year thereafter, one-eighth of the amount requested in the
19 certificate of the Chairman of the Metropolitan Pier and
20 Exposition Authority for that fiscal year, less the amount
21 deposited into the McCormick Place Expansion Project Fund by
22 the State Treasurer in the respective month under subsection
23 (g) of Section 13 of the Metropolitan Pier and Exposition
24 Authority Act, plus cumulative deficiencies in the deposits
25 required under this Section for previous months and years,
26 shall be deposited into the McCormick Place Expansion Project
27 Fund, until the full amount requested for the fiscal year,
28 but not in excess of the amount specified above as "Total
29 Deposit", has been deposited.
30 Subject to payment of amounts into the Build Illinois
31 Fund and the McCormick Place Expansion Project Fund pursuant
32 to the preceding paragraphs or in any amendment thereto
33 hereafter enacted, each month the Department shall pay into
34 the Local Government Distributive Fund 0.4% of the net
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1 revenue realized for the preceding month from the 5% general
2 rate or 0.4% of 80% of the net revenue realized for the
3 preceding month from the 6.25% general rate, as the case may
4 be, on the selling price of tangible personal property which
5 amount shall, subject to appropriation, be distributed as
6 provided in Section 2 of the State Revenue Sharing Act. No
7 payments or distributions pursuant to this paragraph shall be
8 made if the tax imposed by this Act on photoprocessing
9 products is declared unconstitutional, or if the proceeds
10 from such tax are unavailable for distribution because of
11 litigation.
12 Subject to payment of amounts into the Build Illinois
13 Fund, the McCormick Place Expansion Project Fund, and the
14 Local Government Distributive Fund pursuant to the preceding
15 paragraphs or in any amendments thereto hereafter enacted,
16 beginning July 1, 1993, the Department shall each month pay
17 into the Illinois Tax Increment Fund 0.27% of 80% of the net
18 revenue realized for the preceding month from the 6.25%
19 general rate on the selling price of tangible personal
20 property.
21 Remaining moneys received by the Department pursuant to
22 this Act shall be paid into the General Revenue Fund of the
23 State Treasury.
24 The Department may, upon separate written notice to a
25 taxpayer, require the taxpayer to prepare and file with the
26 Department on a form prescribed by the Department within not
27 less than 60 days after receipt of the notice an annual
28 information return for the tax year specified in the notice.
29 Such annual return to the Department shall include a
30 statement of gross receipts as shown by the taxpayer's last
31 Federal income tax return. If the total receipts of the
32 business as reported in the Federal income tax return do not
33 agree with the gross receipts reported to the Department of
34 Revenue for the same period, the taxpayer shall attach to his
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1 annual return a schedule showing a reconciliation of the 2
2 amounts and the reasons for the difference. The taxpayer's
3 annual return to the Department shall also disclose the cost
4 of goods sold by the taxpayer during the year covered by such
5 return, opening and closing inventories of such goods for
6 such year, cost of goods used from stock or taken from stock
7 and given away by the taxpayer during such year, pay roll
8 information of the taxpayer's business during such year and
9 any additional reasonable information which the Department
10 deems would be helpful in determining the accuracy of the
11 monthly, quarterly or annual returns filed by such taxpayer
12 as hereinbefore provided for in this Section.
13 If the annual information return required by this Section
14 is not filed when and as required, the taxpayer shall be
15 liable as follows:
16 (i) Until January 1, 1994, the taxpayer shall be
17 liable for a penalty equal to 1/6 of 1% of the tax due
18 from such taxpayer under this Act during the period to be
19 covered by the annual return for each month or fraction
20 of a month until such return is filed as required, the
21 penalty to be assessed and collected in the same manner
22 as any other penalty provided for in this Act.
23 (ii) On and after January 1, 1994, the taxpayer
24 shall be liable for a penalty as described in Section 3-4
25 of the Uniform Penalty and Interest Act.
26 The chief executive officer, proprietor, owner or highest
27 ranking manager shall sign the annual return to certify the
28 accuracy of the information contained therein. Any person
29 who willfully signs the annual return containing false or
30 inaccurate information shall be guilty of perjury and
31 punished accordingly. The annual return form prescribed by
32 the Department shall include a warning that the person
33 signing the return may be liable for perjury.
34 The foregoing portion of this Section concerning the
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1 filing of an annual information return shall not apply to a
2 serviceman who is not required to file an income tax return
3 with the United States Government.
4 As soon as possible after the first day of each month,
5 upon certification of the Department of Revenue, the
6 Comptroller shall order transferred and the Treasurer shall
7 transfer from the General Revenue Fund to the Motor Fuel Tax
8 Fund an amount equal to 1.7% of 80% of the net revenue
9 realized under this Act for the second preceding month;
10 except that this transfer shall not be made for the months
11 February through June, 1992.
12 Net revenue realized for a month shall be the revenue
13 collected by the State pursuant to this Act, less the amount
14 paid out during that month as refunds to taxpayers for
15 overpayment of liability.
16 For greater simplicity of administration, it shall be
17 permissible for manufacturers, importers and wholesalers
18 whose products are sold by numerous servicemen in Illinois,
19 and who wish to do so, to assume the responsibility for
20 accounting and paying to the Department all tax accruing
21 under this Act with respect to such sales, if the servicemen
22 who are affected do not make written objection to the
23 Department to this arrangement.
24 (Source: P.A. 88-45; 88-116; 88-547, eff. 6-30-94; 88-669,
25 eff. 11-29-94; 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
26 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
27 Section 35. The Retailers' Occupation Tax Act is amended
28 by changing Section 3 as follows:
29 (35 ILCS 120/3) (from Ch. 120, par. 442)
30 Sec. 3. Except as provided in this Section, on or before
31 the twentieth day of each calendar month, every person
32 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 Notwithstanding any provision of law to the contrary, the
26 Department shall prescribe rules in accordance with paragraph
27 (4) of subsection (b) of Section 39c-1d of the Civil
28 Administrative Code of Illinois to require additional
29 taxpayers to make payments under this Act by electronic funds
30 transfer.
31 Any taxpayer not required to make payments by electronic
32 funds transfer may make payments by electronic funds transfer
33 with the permission of the Department.
34 All taxpayers required to make payment by electronic
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1 funds transfer and any taxpayers authorized to voluntarily
2 make payments by electronic funds transfer shall make those
3 payments in the manner authorized by the Department.
4 The Department shall adopt such rules as are necessary to
5 effectuate a program of electronic funds transfer and the
6 requirements of this Section.
7 Any amount which is required to be shown or reported on
8 any return or other document under this Act shall, if such
9 amount is not a whole-dollar amount, be increased to the
10 nearest whole-dollar amount in any case where the fractional
11 part of a dollar is 50 cents or more, and decreased to the
12 nearest whole-dollar amount where the fractional part of a
13 dollar is less than 50 cents.
14 If the retailer is otherwise required to file a monthly
15 return and if the retailer's average monthly tax liability to
16 the Department does not exceed $200, the Department may
17 authorize his returns to be filed on a quarter annual basis,
18 with the return for January, February and March of a given
19 year being due by April 20 of such year; with the return for
20 April, May and June of a given year being due by July 20 of
21 such year; with the return for July, August and September of
22 a given year being due by October 20 of such year, and with
23 the return for October, November and December of a given year
24 being due by January 20 of the following year.
25 If the retailer is otherwise required to file a monthly
26 or quarterly return and if the retailer's average monthly tax
27 liability with the Department does not exceed $50, the
28 Department may authorize his returns to be filed on an annual
29 basis, with the return for a given year being due by January
30 20 of the following year.
31 Such quarter annual and annual returns, as to form and
32 substance, shall be subject to the same requirements as
33 monthly returns.
34 Notwithstanding any other provision in this Act
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1 concerning the time within which a retailer may file his
2 return, in the case of any retailer who ceases to engage in a
3 kind of business which makes him responsible for filing
4 returns under this Act, such retailer shall file a final
5 return under this Act with the Department not more than one
6 month after discontinuing such business.
7 Where the same person has more than one business
8 registered with the Department under separate registrations
9 under this Act, such person may not file each return that is
10 due as a single return covering all such registered
11 businesses, but shall file separate returns for each such
12 registered business.
13 In addition, with respect to motor vehicles, watercraft,
14 aircraft, and trailers that are required to be registered
15 with an agency of this State, every retailer selling this
16 kind of tangible personal property shall file, with the
17 Department, upon a form to be prescribed and supplied by the
18 Department, a separate return for each such item of tangible
19 personal property which the retailer sells, except that
20 where, in the same transaction, a retailer of aircraft,
21 watercraft, motor vehicles or trailers transfers more than
22 one aircraft, watercraft, motor vehicle or trailer to another
23 aircraft, watercraft, motor vehicle retailer or trailer
24 retailer for the purpose of resale, that seller for resale
25 may report the transfer of all aircraft, watercraft, motor
26 vehicles or trailers involved in that transaction to the
27 Department on the same uniform invoice-transaction reporting
28 return form. For purposes of this Section, "watercraft"
29 means a Class 2, Class 3, or Class 4 watercraft as defined in
30 Section 3-2 of the Boat Registration and Safety Act, a
31 personal watercraft, or any boat equipped with an inboard
32 motor.
33 Any retailer who sells only motor vehicles, watercraft,
34 aircraft, or trailers that are required to be registered with
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1 an agency of this State, so that all retailers' occupation
2 tax liability is required to be reported, and is reported, on
3 such transaction reporting returns and who is not otherwise
4 required to file monthly or quarterly returns, need not file
5 monthly or quarterly returns. However, those retailers shall
6 be required to file returns on an annual basis.
7 The transaction reporting return, in the case of motor
8 vehicles or trailers that are required to be registered with
9 an agency of this State, shall be the same document as the
10 Uniform Invoice referred to in Section 5-402 of The Illinois
11 Vehicle Code and must show the name and address of the
12 seller; the name and address of the purchaser; the amount of
13 the selling price including the amount allowed by the
14 retailer for traded-in property, if any; the amount allowed
15 by the retailer for the traded-in tangible personal property,
16 if any, to the extent to which Section 1 of this Act allows
17 an exemption for the value of traded-in property; the balance
18 payable after deducting such trade-in allowance from the
19 total selling price; the amount of tax due from the retailer
20 with respect to such transaction; the amount of tax collected
21 from the purchaser by the retailer on such transaction (or
22 satisfactory evidence that such tax is not due in that
23 particular instance, if that is claimed to be the fact); the
24 place and date of the sale; a sufficient identification of
25 the property sold; such other information as is required in
26 Section 5-402 of The Illinois Vehicle Code, and such other
27 information as the Department may reasonably require.
28 The transaction reporting return in the case of
29 watercraft or aircraft must show the name and address of the
30 seller; the name and address of the purchaser; the amount of
31 the selling price including the amount allowed by the
32 retailer for traded-in property, if any; the amount allowed
33 by the retailer for the traded-in tangible personal property,
34 if any, to the extent to which Section 1 of this Act allows
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1 an exemption for the value of traded-in property; the balance
2 payable after deducting such trade-in allowance from the
3 total selling price; the amount of tax due from the retailer
4 with respect to such transaction; the amount of tax collected
5 from the purchaser by the retailer on such transaction (or
6 satisfactory evidence that such tax is not due in that
7 particular instance, if that is claimed to be the fact); the
8 place and date of the sale, a sufficient identification of
9 the property sold, and such other information as the
10 Department may reasonably require.
11 Such transaction reporting return shall be filed not
12 later than 20 days after the day of delivery of the item that
13 is being sold, but may be filed by the retailer at any time
14 sooner than that if he chooses to do so. The transaction
15 reporting return and tax remittance or proof of exemption
16 from the Illinois use tax may be transmitted to the
17 Department by way of the State agency with which, or State
18 officer with whom the tangible personal property must be
19 titled or registered (if titling or registration is required)
20 if the Department and such agency or State officer determine
21 that this procedure will expedite the processing of
22 applications for title or registration.
23 With each such transaction reporting return, the retailer
24 shall remit the proper amount of tax due (or shall submit
25 satisfactory evidence that the sale is not taxable if that is
26 the case), to the Department or its agents, whereupon the
27 Department shall issue, in the purchaser's name, a use tax
28 receipt (or a certificate of exemption if the Department is
29 satisfied that the particular sale is tax exempt) which such
30 purchaser may submit to the agency with which, or State
31 officer with whom, he must title or register the tangible
32 personal property that is involved (if titling or
33 registration is required) in support of such purchaser's
34 application for an Illinois certificate or other evidence of
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1 title or registration to such tangible personal property.
2 No retailer's failure or refusal to remit tax under this
3 Act precludes a user, who has paid the proper tax to the
4 retailer, from obtaining his certificate of title or other
5 evidence of title or registration (if titling or registration
6 is required) upon satisfying the Department that such user
7 has paid the proper tax (if tax is due) to the retailer. The
8 Department shall adopt appropriate rules to carry out the
9 mandate of this paragraph.
10 If the user who would otherwise pay tax to the retailer
11 wants the transaction reporting return filed and the payment
12 of the tax or proof of exemption made to the Department
13 before the retailer is willing to take these actions and such
14 user has not paid the tax to the retailer, such user may
15 certify to the fact of such delay by the retailer and may
16 (upon the Department being satisfied of the truth of such
17 certification) transmit the information required by the
18 transaction reporting return and the remittance for tax or
19 proof of exemption directly to the Department and obtain his
20 tax receipt or exemption determination, in which event the
21 transaction reporting return and tax remittance (if a tax
22 payment was required) shall be credited by the Department to
23 the proper retailer's account with the Department, but
24 without the 2.1% or 1.75% discount provided for in this
25 Section being allowed. When the user pays the tax directly
26 to the Department, he shall pay the tax in the same amount
27 and in the same form in which it would be remitted if the tax
28 had been remitted to the Department by the retailer.
29 Refunds made by the seller during the preceding return
30 period to purchasers, on account of tangible personal
31 property returned to the seller, shall be allowed as a
32 deduction under subdivision 5 of his monthly or quarterly
33 return, as the case may be, in case the seller had
34 theretofore included the receipts from the sale of such
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1 tangible personal property in a return filed by him and had
2 paid the tax imposed by this Act with respect to such
3 receipts.
4 Where the seller is a corporation, the return filed on
5 behalf of such corporation shall be signed by the president,
6 vice-president, secretary or treasurer or by the properly
7 accredited agent of such corporation.
8 Where the seller is a limited liability company, the
9 return filed on behalf of the limited liability company shall
10 be signed by a manager, member, or properly accredited agent
11 of the limited liability company.
12 Except as provided in this Section, the retailer filing
13 the return under this Section shall, at the time of filing
14 such return, pay to the Department the amount of tax imposed
15 by this Act less a discount of 2.1% prior to January 1, 1990
16 and 1.75% on and after January 1, 1990, or $5 per calendar
17 year, whichever is greater, which is allowed to reimburse the
18 retailer for the expenses incurred in keeping records,
19 preparing and filing returns, remitting the tax and supplying
20 data to the Department on request. Any prepayment made
21 pursuant to Section 2d of this Act shall be included in the
22 amount on which such 2.1% or 1.75% discount is computed. In
23 the case of retailers who report and pay the tax on a
24 transaction by transaction basis, as provided in this
25 Section, such discount shall be taken with each such tax
26 remittance instead of when such retailer files his periodic
27 return.
28 If the taxpayer's average monthly tax liability to the
29 Department under this Act, the Use Tax Act, the Service
30 Occupation Tax Act, and the Service Use Tax Act, excluding
31 any liability for prepaid sales tax to be remitted in
32 accordance with Section 2d of this Act, was $10,000 or more
33 during the preceding 4 complete calendar quarters, he shall
34 file a return with the Department each month by the 20th day
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1 of the month next following the month during which such tax
2 liability is incurred and shall make payments to the
3 Department on or before the 7th, 15th, 22nd and last day of
4 the month during which such liability is incurred. If the
5 month during which such tax liability is incurred began prior
6 to January 1, 1985, each payment shall be in an amount equal
7 to 1/4 of the taxpayer's actual liability for the month or an
8 amount set by the Department not to exceed 1/4 of the average
9 monthly liability of the taxpayer to the Department for the
10 preceding 4 complete calendar quarters (excluding the month
11 of highest liability and the month of lowest liability in
12 such 4 quarter period). If the month during which such tax
13 liability is incurred begins on or after January 1, 1985 and
14 prior to January 1, 1987, each payment shall be in an amount
15 equal to 22.5% of the taxpayer's actual liability for the
16 month or 27.5% of the taxpayer's liability for the same
17 calendar month of the preceding year. If the month during
18 which such tax liability is incurred begins on or after
19 January 1, 1987 and prior to January 1, 1988, each payment
20 shall be in an amount equal to 22.5% of the taxpayer's actual
21 liability for the month or 26.25% of the taxpayer's liability
22 for the same calendar month of the preceding year. If the
23 month during which such tax liability is incurred begins on
24 or after January 1, 1988, and prior to January 1, 1989, or
25 begins on or after January 1, 1996, each payment shall be in
26 an amount equal to 22.5% of the taxpayer's actual liability
27 for the month or 25% of the taxpayer's liability for the same
28 calendar month of the preceding year. If the month during
29 which such tax liability is incurred begins on or after
30 January 1, 1989, and prior to January 1, 1996, each payment
31 shall be in an amount equal to 22.5% of the taxpayer's actual
32 liability for the month or 25% of the taxpayer's liability
33 for the same calendar month of the preceding year or 100% of
34 the taxpayer's actual liability for the quarter monthly
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1 reporting period. The amount of such quarter monthly
2 payments shall be credited against the final tax liability of
3 the taxpayer's return for that month. Once applicable, the
4 requirement of the making of quarter monthly payments to the
5 Department by taxpayers having an average monthly tax
6 liability of $10,000 or more as determined in the manner
7 provided above shall continue until such taxpayer's average
8 monthly liability to the Department during the preceding 4
9 complete calendar quarters (excluding the month of highest
10 liability and the month of lowest liability) is less than
11 $9,000, or until such taxpayer's average monthly liability to
12 the Department as computed for each calendar quarter of the 4
13 preceding complete calendar quarter period is less than
14 $10,000. However, if a taxpayer can show the Department that
15 a substantial change in the taxpayer's business has occurred
16 which causes the taxpayer to anticipate that his average
17 monthly tax liability for the reasonably foreseeable future
18 will fall below $10,000, then such taxpayer may petition the
19 Department for a change in such taxpayer's reporting status.
20 The Department shall change such taxpayer's reporting status
21 unless it finds that such change is seasonal in nature and
22 not likely to be long term. If any such quarter monthly
23 payment is not paid at the time or in the amount required by
24 this Section, then the taxpayer's 2.1% or 1.75% vendors'
25 discount shall be reduced by 2.1% or 1.75% of the difference
26 between the minimum amount due as a payment and the amount of
27 such quarter monthly payment actually and timely paid, and
28 the taxpayer shall be liable for penalties and interest on
29 such difference, except insofar as the taxpayer has
30 previously made payments for that month to the Department in
31 excess of the minimum payments previously due as provided in
32 this Section. The Department shall make reasonable rules and
33 regulations to govern the quarter monthly payment amount and
34 quarter monthly payment dates for taxpayers who file on other
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1 than a calendar monthly basis.
2 Without regard to whether a taxpayer is required to make
3 quarter monthly payments as specified above, any taxpayer who
4 is required by Section 2d of this Act to collect and remit
5 prepaid taxes and has collected prepaid taxes which average
6 in excess of $25,000 per month during the preceding 2
7 complete calendar quarters, shall file a return with the
8 Department as required by Section 2f and shall make payments
9 to the Department on or before the 7th, 15th, 22nd and last
10 day of the month during which such liability is incurred. If
11 the month during which such tax liability is incurred began
12 prior to the effective date of this amendatory Act of 1985,
13 each payment shall be in an amount not less than 22.5% of the
14 taxpayer's actual liability under Section 2d. If the month
15 during which such tax liability is incurred begins on or
16 after January 1, 1986, each payment shall be in an amount
17 equal to 22.5% of the taxpayer's actual liability for the
18 month or 27.5% of the taxpayer's liability for the same
19 calendar month of the preceding calendar year. If the month
20 during which such tax liability is incurred begins on or
21 after January 1, 1987, each payment shall be in an amount
22 equal to 22.5% of the taxpayer's actual liability for the
23 month or 26.25% of the taxpayer's liability for the same
24 calendar month of the preceding year. The amount of such
25 quarter monthly payments shall be credited against the final
26 tax liability of the taxpayer's return for that month filed
27 under this Section or Section 2f, as the case may be. Once
28 applicable, the requirement of the making of quarter monthly
29 payments to the Department pursuant to this paragraph shall
30 continue until such taxpayer's average monthly prepaid tax
31 collections during the preceding 2 complete calendar quarters
32 is $25,000 or less. If any such quarter monthly payment is
33 not paid at the time or in the amount required, the taxpayer
34 shall be liable for penalties and interest on such
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1 difference, except insofar as the taxpayer has previously
2 made payments for that month in excess of the minimum
3 payments previously due.
4 If any payment provided for in this Section exceeds the
5 taxpayer's liabilities under this Act, the Use Tax Act, the
6 Service Occupation Tax Act and the Service Use Tax Act, as
7 shown on an original monthly return, the Department shall, if
8 requested by the taxpayer, issue to the taxpayer a credit
9 memorandum no later than 30 days after the date of payment.
10 The credit evidenced by such credit memorandum may be
11 assigned by the taxpayer to a similar taxpayer under this
12 Act, the Use Tax Act, the Service Occupation Tax Act or the
13 Service Use Tax Act, in accordance with reasonable rules and
14 regulations to be prescribed by the Department. If no such
15 request is made, the taxpayer may credit such excess payment
16 against tax liability subsequently to be remitted to the
17 Department under this Act, the Use Tax Act, the Service
18 Occupation Tax Act or the Service Use Tax Act, in accordance
19 with reasonable rules and regulations prescribed by the
20 Department. If the Department subsequently determined that
21 all or any part of the credit taken was not actually due to
22 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
23 shall be reduced by 2.1% or 1.75% of the difference between
24 the credit taken and that actually due, and that taxpayer
25 shall be liable for penalties and interest on such
26 difference.
27 If a retailer of motor fuel is entitled to a credit under
28 Section 2d of this Act which exceeds the taxpayer's liability
29 to the Department under this Act for the month which the
30 taxpayer is filing a return, the Department shall issue the
31 taxpayer a credit memorandum for the excess.
32 Beginning January 1, 1990, each month the Department
33 shall pay into the Local Government Tax Fund, a special fund
34 in the State treasury which is hereby created, the net
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1 revenue realized for the preceding month from the 1% tax on
2 sales of food for human consumption which is to be consumed
3 off the premises where it is sold (other than alcoholic
4 beverages, soft drinks and food which has been prepared for
5 immediate consumption) and prescription and nonprescription
6 medicines, drugs, medical appliances and insulin, urine
7 testing materials, syringes and needles used by diabetics.
8 Beginning January 1, 1990, each month the Department
9 shall pay into the County and Mass Transit District Fund, a
10 special fund in the State treasury which is hereby created,
11 4% of the net revenue realized for the preceding month from
12 the 6.25% general rate.
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 Of the remainder of the moneys received by the Department
19 pursuant to this Act, (a) 1.75% thereof shall be paid into
20 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
21 and on and after July 1, 1989, 3.8% thereof shall be paid
22 into the Build Illinois Fund; provided, however, that if in
23 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
24 as the case may be, of the moneys received by the Department
25 and required to be paid into the Build Illinois Fund pursuant
26 to this Act, Section 9 of the Use Tax Act, Section 9 of the
27 Service Use Tax Act, and Section 9 of the Service Occupation
28 Tax Act, such Acts being hereinafter called the "Tax Acts"
29 and such aggregate of 2.2% or 3.8%, as the case may be, of
30 moneys being hereinafter called the "Tax Act Amount", and (2)
31 the amount transferred to the Build Illinois Fund from the
32 State and Local Sales Tax Reform Fund shall be less than the
33 Annual Specified Amount (as hereinafter defined), an amount
34 equal to the difference shall be immediately paid into the
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1 Build Illinois Fund from other moneys received by the
2 Department pursuant to the Tax Acts; the "Annual Specified
3 Amount" means the amounts specified below for fiscal years
4 1986 through 1993:
5 Fiscal Year Annual Specified Amount
6 1986 $54,800,000
7 1987 $76,650,000
8 1988 $80,480,000
9 1989 $88,510,000
10 1990 $115,330,000
11 1991 $145,470,000
12 1992 $182,730,000
13 1993 $206,520,000;
14 and means the Certified Annual Debt Service Requirement (as
15 defined in Section 13 of the Build Illinois Bond Act) or the
16 Tax Act Amount, whichever is greater, for fiscal year 1994
17 and each fiscal year thereafter; and further provided, that
18 if on the last business day of any month the sum of (1) the
19 Tax Act Amount required to be deposited into the Build
20 Illinois Bond Account in the Build Illinois Fund during such
21 month and (2) the amount transferred to the Build Illinois
22 Fund from the State and Local Sales Tax Reform Fund shall
23 have been less than 1/12 of the Annual Specified Amount, an
24 amount equal to the difference shall be immediately paid into
25 the Build Illinois Fund from other moneys received by the
26 Department pursuant to the Tax Acts; and, further provided,
27 that in no event shall the payments required under the
28 preceding proviso result in aggregate payments into the Build
29 Illinois Fund pursuant to this clause (b) for any fiscal year
30 in excess of the greater of (i) the Tax Act Amount or (ii)
31 the Annual Specified Amount for such fiscal year. The
32 amounts payable into the Build Illinois Fund under clause (b)
33 of the first sentence in this paragraph shall be payable only
34 until such time as the aggregate amount on deposit under each
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1 trust indenture securing Bonds issued and outstanding
2 pursuant to the Build Illinois Bond Act is sufficient, taking
3 into account any future investment income, to fully provide,
4 in accordance with such indenture, for the defeasance of or
5 the payment of the principal of, premium, if any, and
6 interest on the Bonds secured by such indenture and on any
7 Bonds expected to be issued thereafter and all fees and costs
8 payable with respect thereto, all as certified by the
9 Director of the Bureau of the Budget. If on the last
10 business day of any month in which Bonds are outstanding
11 pursuant to the Build Illinois Bond Act, the aggregate of
12 moneys deposited in the Build Illinois Bond Account in the
13 Build Illinois Fund in such month shall be less than the
14 amount required to be transferred in such month from the
15 Build Illinois Bond Account to the Build Illinois Bond
16 Retirement and Interest Fund pursuant to Section 13 of the
17 Build Illinois Bond Act, an amount equal to such deficiency
18 shall be immediately paid from other moneys received by the
19 Department pursuant to the Tax Acts to the Build Illinois
20 Fund; provided, however, that any amounts paid to the Build
21 Illinois Fund in any fiscal year pursuant to this sentence
22 shall be deemed to constitute payments pursuant to clause (b)
23 of the first sentence of this paragraph and shall reduce the
24 amount otherwise payable for such fiscal year pursuant to
25 that clause (b). The moneys received by the Department
26 pursuant to this Act and required to be deposited into the
27 Build Illinois Fund are subject to the pledge, claim and
28 charge set forth in Section 12 of the Build Illinois Bond
29 Act.
30 Subject to payment of amounts into the Build Illinois
31 Fund as provided in the preceding paragraph or in any
32 amendment thereto hereafter enacted, the following specified
33 monthly installment of the amount requested in the
34 certificate of the Chairman of the Metropolitan Pier and
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1 Exposition Authority provided under Section 8.25f of the
2 State Finance Act, but not in excess of sums designated as
3 "Total Deposit", shall be deposited in the aggregate from
4 collections under Section 9 of the Use Tax Act, Section 9 of
5 the Service Use Tax Act, Section 9 of the Service Occupation
6 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
7 into the McCormick Place Expansion Project Fund in the
8 specified fiscal years.
9 Fiscal Year Total Deposit
10 1993 $0
11 1994 53,000,000
12 1995 58,000,000
13 1996 61,000,000
14 1997 64,000,000
15 1998 68,000,000
16 1999 71,000,000
17 2000 75,000,000
18 2001 80,000,000
19 2002 84,000,000
20 2003 89,000,000
21 2004 and 93,000,000
22 each fiscal year
23 thereafter that bonds
24 are outstanding under
25 Section 13.2 of the
26 Metropolitan Pier and
27 Exposition Authority
28 Act.
29 Beginning July 20, 1993 and in each month of each fiscal
30 year thereafter, one-eighth of the amount requested in the
31 certificate of the Chairman of the Metropolitan Pier and
32 Exposition Authority for that fiscal year, less the amount
33 deposited into the McCormick Place Expansion Project Fund by
34 the State Treasurer in the respective month under subsection
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1 (g) of Section 13 of the Metropolitan Pier and Exposition
2 Authority Act, plus cumulative deficiencies in the deposits
3 required under this Section for previous months and years,
4 shall be deposited into the McCormick Place Expansion Project
5 Fund, until the full amount requested for the fiscal year,
6 but not in excess of the amount specified above as "Total
7 Deposit", has been deposited.
8 Subject to payment of amounts into the Build Illinois
9 Fund and the McCormick Place Expansion Project Fund pursuant
10 to the preceding paragraphs or in any amendment thereto
11 hereafter enacted, each month the Department shall pay into
12 the Local Government Distributive Fund 0.4% of the net
13 revenue realized for the preceding month from the 5% general
14 rate or 0.4% of 80% of the net revenue realized for the
15 preceding month from the 6.25% general rate, as the case may
16 be, on the selling price of tangible personal property which
17 amount shall, subject to appropriation, be distributed as
18 provided in Section 2 of the State Revenue Sharing Act. No
19 payments or distributions pursuant to this paragraph shall be
20 made if the tax imposed by this Act on photoprocessing
21 products is declared unconstitutional, or if the proceeds
22 from such tax are unavailable for distribution because of
23 litigation.
24 Subject to payment of amounts into the Build Illinois
25 Fund, the McCormick Place Expansion Project to the preceding
26 paragraphs or in any amendments thereto hereafter enacted,
27 beginning July 1, 1993, the Department shall each month pay
28 into the Illinois Tax Increment Fund 0.27% of 80% of the net
29 revenue realized for the preceding month from the 6.25%
30 general rate on the selling price of tangible personal
31 property.
32 Of the remainder of the moneys received by the Department
33 pursuant to this Act, 75% thereof shall be paid into the
34 State Treasury and 25% shall be reserved in a special account
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1 and used only for the transfer to the Common School Fund as
2 part of the monthly transfer from the General Revenue Fund in
3 accordance with Section 8a of the State Finance Act.
4 The Department may, upon separate written notice to a
5 taxpayer, require the taxpayer to prepare and file with the
6 Department on a form prescribed by the Department within not
7 less than 60 days after receipt of the notice an annual
8 information return for the tax year specified in the notice.
9 Such annual return to the Department shall include a
10 statement of gross receipts as shown by the retailer's last
11 Federal income tax return. If the total receipts of the
12 business as reported in the Federal income tax return do not
13 agree with the gross receipts reported to the Department of
14 Revenue for the same period, the retailer shall attach to his
15 annual return a schedule showing a reconciliation of the 2
16 amounts and the reasons for the difference. The retailer's
17 annual return to the Department shall also disclose the cost
18 of goods sold by the retailer during the year covered by such
19 return, opening and closing inventories of such goods for
20 such year, costs of goods used from stock or taken from stock
21 and given away by the retailer during such year, payroll
22 information of the retailer's business during such year and
23 any additional reasonable information which the Department
24 deems would be helpful in determining the accuracy of the
25 monthly, quarterly or annual returns filed by such retailer
26 as provided for in this Section.
27 If the annual information return required by this Section
28 is not filed when and as required, the taxpayer shall be
29 liable as follows:
30 (i) Until January 1, 1994, the taxpayer shall be
31 liable for a penalty equal to 1/6 of 1% of the tax due
32 from such taxpayer under this Act during the period to be
33 covered by the annual return for each month or fraction
34 of a month until such return is filed as required, the
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1 penalty to be assessed and collected in the same manner
2 as any other penalty provided for in this Act.
3 (ii) On and after January 1, 1994, the taxpayer
4 shall be liable for a penalty as described in Section 3-4
5 of the Uniform Penalty and Interest Act.
6 The chief executive officer, proprietor, owner or highest
7 ranking manager shall sign the annual return to certify the
8 accuracy of the information contained therein. Any person
9 who willfully signs the annual return containing false or
10 inaccurate information shall be guilty of perjury and
11 punished accordingly. The annual return form prescribed by
12 the Department shall include a warning that the person
13 signing the return may be liable for perjury.
14 The provisions of this Section concerning the filing of
15 an annual information return do not apply to a retailer who
16 is not required to file an income tax return with the United
17 States Government.
18 As soon as possible after the first day of each month,
19 upon certification of the Department of Revenue, the
20 Comptroller shall order transferred and the Treasurer shall
21 transfer from the General Revenue Fund to the Motor Fuel Tax
22 Fund an amount equal to 1.7% of 80% of the net revenue
23 realized under this Act for the second preceding month;
24 except that this transfer shall not be made for the months
25 February through June, 1992.
26 Net revenue realized for a month shall be the revenue
27 collected by the State pursuant to this Act, less the amount
28 paid out during that month as refunds to taxpayers for
29 overpayment of liability.
30 For greater simplicity of administration, manufacturers,
31 importers and wholesalers whose products are sold at retail
32 in Illinois by numerous retailers, and who wish to do so, may
33 assume the responsibility for accounting and paying to the
34 Department all tax accruing under this Act with respect to
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1 such sales, if the retailers who are affected do not make
2 written objection to the Department to this arrangement.
3 Any person who promotes, organizes, provides retail
4 selling space for concessionaires or other types of sellers
5 at the Illinois State Fair, DuQuoin State Fair, county fairs,
6 local fairs, art shows, flea markets and similar exhibitions
7 or events, including any transient merchant as defined by
8 Section 2 of the Transient Merchant Act of 1987, is required
9 to file a report with the Department providing the name of
10 the merchant's business, the name of the person or persons
11 engaged in merchant's business, the permanent address and
12 Illinois Retailers Occupation Tax Registration Number of the
13 merchant, the dates and location of the event and other
14 reasonable information that the Department may require. The
15 report must be filed not later than the 20th day of the month
16 next following the month during which the event with retail
17 sales was held. Any person who fails to file a report
18 required by this Section commits a business offense and is
19 subject to a fine not to exceed $250.
20 Any person engaged in the business of selling tangible
21 personal property at retail as a concessionaire or other type
22 of seller at the Illinois State Fair, county fairs, art
23 shows, flea markets and similar exhibitions or events, or any
24 transient merchants, as defined by Section 2 of the Transient
25 Merchant Act of 1987, may be required to make a daily report
26 of the amount of such sales to the Department and to make a
27 daily payment of the full amount of tax due. The Department
28 shall impose this requirement when it finds that there is a
29 significant risk of loss of revenue to the State at such an
30 exhibition or event. Such a finding shall be based on
31 evidence that a substantial number of concessionaires or
32 other sellers who are not residents of Illinois will be
33 engaging in the business of selling tangible personal
34 property at retail at the exhibition or event, or other
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1 evidence of a significant risk of loss of revenue to the
2 State. The Department shall notify concessionaires and other
3 sellers affected by the imposition of this requirement. In
4 the absence of notification by the Department, the
5 concessionaires and other sellers shall file their returns as
6 otherwise required in this Section.
7 (Source: P.A. 88-45; 88-116; 88-194; 88-480; 88-547, eff.
8 6-30-94; 88-660, eff. 9-16-94; 88-669, eff. 11-29-94; 88-670,
9 eff. 12-2-94; 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
10 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
11 Section 40. The Illinois Wage Payment and Collection Act
12 is amended by changing Section 4 and adding Section 4.5 as
13 follows:
14 (820 ILCS 115/4) (from Ch. 48, par. 39m-4)
15 Sec. 4. All wages earned by any employee during a
16 semi-monthly or bi-weekly pay period shall be paid to such
17 employee not later than 13 days after the end of the pay
18 period in which such wages were earned. All wages earned by
19 any employee during a weekly pay period shall be paid not
20 later than 7 days after the end of the weekly pay period in
21 which the wages were earned. All wages paid on a daily basis
22 shall be paid insofar as possible on the same day as the
23 wages were earned, or not later in any event than 24 hours
24 after the day on which the wages were earned. Wages of
25 executive, administrative and professional employees, as
26 defined in the Federal Fair Labor Standards Act of 1938, may
27 be paid on or before 21 calendar days after the period during
28 which they are earned.
29 The terms of this Section shall not apply, if there
30 exists a valid collective bargaining agreement which provides
31 for a different date or for different arrangements for the
32 payment of wages.
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1 Employers shall pay to workers on strike or layoff, no
2 later than the next regular payday, all wages earned up to
3 the time of such strike or layoff.
4 Any employee who is absent at the time fixed for payment,
5 or who for any other reason is not paid at that time, shall
6 be paid upon demand at any time within a period of 5 days
7 after the time fixed for payment; and after the expiration of
8 the 5 day period, payment shall be made upon 5 days demand.
9 Payment to the absent employee shall be made by mail if the
10 employee so requests in writing.
11 All wages and final compensation shall be paid by direct
12 deposit in lawful money of the United States, by check,
13 redeemable upon demand and without discount at a bank or
14 other financial institution readily available to the
15 employee, or by deposit of funds in an account in a bank or
16 other financial institution designated by the employee in
17 accordance with Section 4.5 of this Act. No employer may
18 designate a particular financial institution, bank, savings
19 bank, savings and loan, or currency exchange for the
20 exclusive payment or deposit of a check for wages. No
21 financial institution, bank, savings bank, savings and loan,
22 or currency exchange shall refuse to honor a check for wages
23 that exclusively designates, in violation of this Section, a
24 particular bank, savings bank, savings and loan, or currency
25 exchange as the exclusive place of payment or deposit except
26 to the extent the bank, savings bank, savings and loan, or
27 currency exchange is otherwise excused from honoring the
28 check under Section 3-111 of the Uniform Commercial Code
29 because the bank, savings bank, savings and loan, or currency
30 exchange is not the drawee or the maker of the check.
31 (Source: P.A. 89-364, eff. 8-18-95.)
32 (820 ILCS 115/4.5 new)
33 Sec. 4.5. Required direct deposit.
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1 (a) Notwithstanding any other provision of law to the
2 contrary, all State wage and salary payments shall be paid to
3 recipients of such payments by electronic funds transfer,
4 unless another method has been determined by the State
5 Treasurer to be appropriate.
6 (b) Each recipient of State wage or salary payments
7 shall designate one or more financial institutions or other
8 authorized payment agents and provide the payment certifying
9 or authorizing agency information necessary for the recipient
10 to receive electronic funds transfer payments through each
11 institution so designated.
12 (c) The head of each agency shall waive the requirements
13 of subsections (a) and (b) of this Section for a recipient of
14 State wage or salary payments authorized or certified by
15 the agency upon written request by such recipient.
16 (d) State wage or salary payments shall be paid to any
17 recipient granted a waiver under subsection (c) by any method
18 determined appropriate by the State Treasurer.
19 (e) The State Treasurer may waive the requirements of
20 subsections (a) and (b) of this Section for any group of
21 recipients upon request by the head of an agency under
22 standards prescribed by the State Treasurer.
23 (f) State wage or salary payments shall be paid to any
24 member of a group granted a waiver under subsection (e) by
25 any method determined appropriate by the State Treasurer.
26 (g) This Section shall apply only to recipients of State
27 wage or salary payments who begin to receive such payments
28 on or after January 1, 1998.
29 (h) The head of a State agency shall, with respect to
30 payments made or authorized by the agency, waive the
31 application of subsection (g) to a recipient of those
32 payments upon receipt of written certification from the
33 recipient that the recipient does not have an account with a
34 financial institution or an authorized payment agent.
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1 (i) Notwithstanding any other provision of law
2 (including subsections (a) through (h) of this Section),
3 except as provided in subsection (j) all State payments made
4 after January 1, 1999, shall be made by electronic funds
5 transfer.
6 (j) The State Treasurer may waive application of this
7 subsection to payments.
8 (1) for individuals or classes of individuals for
9 whom compliance imposes a hardship;
10 (2) for classifications or types of checks; or
11 (3) in other circumstances as may be necessary.
12 (k) The State Treasurer shall make determinations under
13 subsection (j) based on standards developed by the Treasurer.
14 (l) Each recipient of State payments required to be made
15 by electronic funds transfer shall:
16 (1) designate 1 or more financial institutions or
17 other authorized agents to which such payments shall be
18 made; and
19 (2) provide to the State agency that makes or
20 authorizes the payments information necessary for the
21 recipient to receive electronic funds transfer payments
22 through each institution or agent designated under
23 paragraph (1).
24 (m) The crediting of the amount of a payment to the
25 appropriate account on the books of a financial institution
26 or other authorized payment agent designated by a payment
27 recipient under this Section shall constitute a full
28 acquittance to the State of Illinois for the amount of the
29 payment.
30 (n) The State Treasurer may prescribe regulations that
31 the Treasurer considers necessary to carry out this Section.
32 (o) Regulations under this Section shall ensure that
33 individuals required under subsection (l) to have an account
34 at a financial institution because of the application of
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1 subsection (i):
2 (1) will have access to such an account at a
3 reasonable cost; and
4 (2) are given the same consumer protections with
5 respect to the account as other account holders at the
6 same financial institution.
7 (p) For purposes of this Section, "electronic funds
8 transfer" means any transfer of funds, other than a
9 transaction originated by cash, check, or similar paper
10 instrument, that is initiated through an electronic terminal,
11 telephone, computer, or magnetic tape, for the purpose of
12 ordering, instructing, or authorizing a financial institution
13 to debit or credit an account. The term includes Automated
14 Clearing House transfers, Fed Wire transfers, transfers made
15 at automatic teller machines, and point-of-sale terminals.".