State of Illinois
90th General Assembly
Legislation

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90_SB0856

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          Amends  the  Civil  Administrative  Code  to  allow   the
      Department  of  Revenue, upon certification of past due child
      support, to collect the delinquency in any manner  authorized
      for  the collection of any tax administered by the Department
      (now only delinquent personal income tax). Amends  the  State
      Finance  Act  to  provide that a retail sale by a producer of
      coal or other mineral  is  a  sale  at  retail  where  it  is
      extracted from the earth. Amends the Illinois Income Tax Act.
      In  the  definition  of  base  income,  deletes  real  estate
      investment   trusts   from   the   language   concerning  the
      modification of taxable income for a corporation.    Provides
      that  in  the case of a trust, unspecified items of income or
      deductions taken into account in computing  base  income  and
      not  otherwise  allocated  shall be allocated to the State if
      the taxpayer had commercial domicile in the  State  when  the
      item  was  paid,  incurred,  or  accrued  (now  shall  not be
      allocated to State).  Amends the Use Tax Act, the Service Use
      Tax Act, the Service Occupation Tax Act, and  the  Retailers'
      Occupation Tax Act to require that a protest to the Notice of
      Tentative Determination of Claim be filed within 60 days (now
      20 days). Amends the Cigarette Tax Act, the Cigarette Use Tax
      Act,  the  Messages  Tax  Act,  the  Gas Revenue Tax Act, the
      Public Utilities Revenue  Act,  the  Water  Company  Invested
      Capital Tax Act, and the Telecommunications Excise Tax Act to
      provide  that  if  both  the Department and the taxpayer have
      agreed to an extension of time  to  issue  a  notice  of  tax
      liability,  a  claim for credit or refund may be filed at any
      time prior to the  expiration  of  the  agreed  upon  period.
      Amends  the Senior Citizens and Disabled Persons Property Tax
      Relief and Pharmaceutical Assistance Act to  include  in  the
      list of factors used to determine "income" an amount equal to
      any  net  operating  loss carryover deduction or capital loss
      carryover deduction taken during  the  taxable  year.   Makes
      other changes.  Effective immediately.
                                                    LRB9000732KDcbA
                                              LRB9000732KDcbA
 1        AN ACT in relation to taxes, amending named Acts.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4        Section 5.  The Civil Administrative Code of Illinois  is
 5    amended by changing Section 39b52 as follows:
 6        (20 ILCS 2505/39b52)
 7        Sec.   39b52.  Collection  of  past  due  support.   Upon
 8    certification of past due  child  support  amounts  from  the
 9    Department  of  Public  Aid,  the  Department  of Revenue may
10    collect the delinquency in  any  manner  authorized  for  the
11    collection  of  any  tax  administered  by  the Department of
12    Revenue a delinquent  personal  income  tax  liability.   The
13    Department  of  Revenue shall notify the Department of Public
14    Aid when the delinquency or any portion  of  the  delinquency
15    has  been  collected  under  this Section.  Any child support
16    delinquency collected by the Department of Revenue, including
17    those amounts that result in overpayment of a  child  support
18    delinquency,  shall  be  deposited in, or transferred to, the
19    Child Support Enforcement  Trust  Fund.   The  Department  of
20    Revenue  may  implement  this  Section  through  the  use  of
21    emergency  rules  in  accordance  with  Section  5-45  of the
22    Illinois Administrative Procedure Act.  For purposes  of  the
23    Illinois  Administrative Procedure Act, the adoption of rules
24    to implement this Section shall be  considered  an  emergency
25    and necessary for the public interest, safety, and welfare.
26    (Source: P.A. 89-6, eff. 12-31-95.)
27        Section 10.  The State Finance Act is amended by changing
28    Sections 6z-18 and 6z-20 as follows:
29        (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
                            -2-               LRB9000732KDcbA
 1        Sec.  6z-18.   A portion of the money paid into the Local
 2    Government Tax Fund from sales of food for human  consumption
 3    which  is  to  be  consumed off the premises where it is sold
 4    (other than alcoholic beverages, soft drinks and  food  which
 5    has been prepared for immediate consumption) and prescription
 6    and  nonprescription medicines, drugs, medical appliances and
 7    insulin, urine testing materials, syringes and  needles  used
 8    by  diabetics,  which  occurred  in  municipalities, shall be
 9    distributed to each municipality based upon the  sales  which
10    occurred  in  that  municipality.   The  remainder  shall  be
11    distributed  to  each  county  based  upon  the  sales  which
12    occurred in the unincorporated area of that county.
13        A portion of the money paid into the Local Government Tax
14    Fund from the 6.25% general use tax rate on the selling price
15    of  tangible  personal  property  which  is purchased outside
16    Illinois at retail from a retailer and  which  is  titled  or
17    registered  by any agency of this State's government shall be
18    distributed to municipalities as provided in this  paragraph.
19    Each  municipality  shall  receive the amount attributable to
20    sales  for  which   Illinois   addresses   for   titling   or
21    registration   purposes   are   given   as   being   in  such
22    municipality.  The remainder of the money paid into the Local
23    Government Tax Fund from such sales shall be  distributed  to
24    counties.   Each county shall receive the amount attributable
25    to  sales  for  which  Illinois  addresses  for  titling   or
26    registration  purposes  are  given  as  being  located in the
27    unincorporated area of such county.
28        A portion of the money paid into the Local Government Tax
29    Fund from the 6.25% general rate on sales subject to taxation
30    under the Retailers'  Occupation  Tax  Act  and  the  Service
31    Occupation  Tax  Act, which occurred in municipalities, shall
32    be distributed to each municipality,  based  upon  the  sales
33    which  occurred  in that municipality. The remainder shall be
34    distributed to  each  county,  based  upon  the  sales  which
                            -3-               LRB9000732KDcbA
 1    occurred in the unincorporated area of such county.
 2        For  the  purpose  of determining allocation to the local
 3    government unit, a retail sale by a producer of coal or other
 4    mineral mined in Illinois is a sale at retail  at  the  place
 5    where  the  coal  or  other  mineral  mined  in  Illinois  is
 6    extracted  from  the earth.  This paragraph does not apply to
 7    coal or other mineral when it is delivered or shipped by  the
 8    seller  to  the purchaser at a point outside Illinois so that
 9    the sale is exempt under the United States Constitution as  a
10    sale in interstate or foreign commerce.
11        Whenever the Department determines that a refund of money
12    paid  into  the Local Government Tax Fund should be made to a
13    claimant  instead  of  issuing  a  credit   memorandum,   the
14    Department  shall  notify  the  State  Comptroller, who shall
15    cause the order to be drawn for the amount specified, and  to
16    the  person  named, in such notification from the Department.
17    Such refund shall be paid by the State Treasurer out  of  the
18    Local Government Tax Fund.
19        On  or  before  the  25th day of each calendar month, the
20    Department shall prepare and certify to the  Comptroller  the
21    disbursement  of stated sums of money to named municipalities
22    and counties, the municipalities and  counties  to  be  those
23    entitled  to  distribution  of taxes or penalties paid to the
24    Department during the second preceding  calendar  month.  The
25    amount to be paid to each municipality or county shall be the
26    amount  (not including credit memoranda) collected during the
27    second preceding calendar month by the  Department  and  paid
28    into  the  Local  Government  Tax  Fund,  plus  an amount the
29    Department determines is  necessary  to  offset  any  amounts
30    which  were  erroneously paid to a different taxing body, and
31    not including an amount equal to the amount of  refunds  made
32    during the second preceding calendar month by the Department,
33    and  not including any amount which the Department determines
34    is necessary to offset any amounts which  are  payable  to  a
                            -4-               LRB9000732KDcbA
 1    different  taxing  body  but  were  erroneously  paid  to the
 2    municipality or county.  Within 10 days after receipt, by the
 3    Comptroller,  of  the  disbursement  certification   to   the
 4    municipalities and counties,  provided for in this Section to
 5    be   given   to   the  Comptroller  by  the  Department,  the
 6    Comptroller shall cause  the  orders  to  be  drawn  for  the
 7    respective   amounts   in   accordance  with  the  directions
 8    contained in such certification.
 9        When certifying the amount of monthly disbursement  to  a
10    municipality  or  county  under  this Section, the Department
11    shall increase or decrease that amount by an amount necessary
12    to offset any misallocation of  previous  disbursements.  The
13    offset  amount  shall  be  the  amount  erroneously disbursed
14    within the 6 months preceding the  time  a  misallocation  is
15    discovered.
16        The  provisions  directing  the  distributions  from  the
17    special  fund  in  the  State  Treasury  provided for in this
18    Section  shall  constitute  an  irrevocable  and   continuing
19    appropriation  of  all  amounts as provided herein. The State
20    Treasurer and State Comptroller are hereby authorized to make
21    distributions as provided in this Section.
22        In construing any development, redevelopment, annexation,
23    preannexation or other lawful agreement in  effect  prior  to
24    September 1, 1990, which describes or refers to receipts from
25    a  county  or municipal retailers' occupation tax, use tax or
26    service occupation tax which  now  cannot  be  imposed,  such
27    description  or  reference  shall  be  deemed  to include the
28    replacement revenue for  such  abolished  taxes,  distributed
29    from the Local Government Tax Fund.
30    (Source: P.A. 86-928; 86-1481.)
31        (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
32        Sec.  6z-20. Of the money received from the 6.25% general
33    rate on  sales  subject  to  taxation  under  the  Retailers'
                            -5-               LRB9000732KDcbA
 1    Occupation  Tax  Act  and Service Occupation Tax Act and paid
 2    into the County and Mass Transit District Fund,  distribution
 3    to  the  Regional  Transportation Authority tax fund, created
 4    pursuant to  Section  4.03  of  the  Regional  Transportation
 5    Authority  Act,  for deposit therein shall be made based upon
 6    the retail sales occurring  in  a  county  having  more  than
 7    3,000,000  inhabitants. The remainder shall be distributed to
 8    each county having 3,000,000 or fewer inhabitants based  upon
 9    the retail sales occurring in each such county.
10        For  the  purpose  of determining allocation to the local
11    government unit, a retail sale by a producer of coal or other
12    mineral mined in Illinois is a sale at retail  at  the  place
13    where  the  coal  or  other  mineral  mined  in  Illinois  is
14    extracted  from  the earth.  This paragraph does not apply to
15    coal or other mineral when it is delivered or shipped by  the
16    seller  to  the purchaser at a point outside Illinois so that
17    the sale is exempt under the United States Constitution as  a
18    sale in interstate or foreign commerce.
19        Of the money received from the 6.25% general use tax rate
20    on  tangible  personal  property  which  is purchased outside
21    Illinois at retail from a retailer and  which  is  titled  or
22    registered  by any agency of this State's government and paid
23    into the County and Mass Transit District  Fund,  the  amount
24    for  which  Illinois  addresses  for  titling or registration
25    purposes are given as being in each county having  more  than
26    3,000,000  inhabitants shall be distributed into the Regional
27    Transportation  Authority  tax  fund,  created  pursuant   to
28    Section  4.03  of  the Regional Transportation Authority Act.
29    The remainder of the money paid  from  such  sales  shall  be
30    distributed  to each county based on sales for which Illinois
31    addresses for titling or registration purposes are  given  as
32    being  located  in  the  county.   Any  money  paid  into the
33    Regional Transportation  Authority  Occupation  and  Use  Tax
34    Replacement  Fund  from  the County and Mass Transit District
                            -6-               LRB9000732KDcbA
 1    Fund prior to January 14, 1991, which has not  been  paid  to
 2    the Authority prior to that date, shall be transferred to the
 3    Regional Transportation Authority tax fund.
 4        Whenever the Department determines that a refund of money
 5    paid into the County and Mass Transit District Fund should be
 6    made  to  a  claimant instead of issuing a credit memorandum,
 7    the Department shall notify the State Comptroller, who  shall
 8    cause  the order to be drawn for the amount specified, and to
 9    the person named, in such notification from  the  Department.
10    Such  refund  shall be paid by the State Treasurer out of the
11    County and Mass Transit District Fund.
12        On or before the 25th day of  each  calendar  month,  the
13    Department  shall  prepare and certify to the Comptroller the
14    disbursement  of  stated  sums  of  money  to  the   Regional
15    Transportation  Authority and to named counties, the counties
16    to  be  those  entitled  to  distribution,   as   hereinabove
17    provided, of taxes or penalties paid to the Department during
18    the  second  preceding calendar month.  The amount to be paid
19    to the Regional  Transportation  Authority  and  each  county
20    having  3,000,000  or  fewer  inhabitants shall be the amount
21    (not including credit memoranda) collected during the  second
22    preceding  calendar month by the Department and paid into the
23    County and Mass Transit District Fund,  plus  an  amount  the
24    Department  determines  is  necessary  to  offset any amounts
25    which were erroneously paid to a different taxing  body,  and
26    not  including  an amount equal to the amount of refunds made
27    during the second preceding calendar month by the Department,
28    and not including any amount which the Department  determines
29    is  necessary  to  offset any amounts which were payable to a
30    different taxing  body  but  were  erroneously  paid  to  the
31    Regional  Transportation Authority or county.  Within 10 days
32    after  receipt,  by  the  Comptroller,  of  the  disbursement
33    certification to the Regional  Transportation  Authority  and
34    counties,  provided  for  in  this Section to be given to the
                            -7-               LRB9000732KDcbA
 1    Comptroller by the Department, the  Comptroller  shall  cause
 2    the  orders  to  be  drawn  for  the  respective  amounts  in
 3    accordance    with   the   directions   contained   in   such
 4    certification.
 5        When certifying the amount of a monthly  disbursement  to
 6    the  Regional  Transportation  Authority or to a county under
 7    this Section, the Department shall increase or decrease  that
 8    amount  by an amount necessary to offset any misallocation of
 9    previous disbursements.   The  offset  amount  shall  be  the
10    amount  erroneously  disbursed  within the 6 months preceding
11    the time a misallocation is discovered.
12        The  provisions  directing  the  distributions  from  the
13    special fund in the  State  Treasury  provided  for  in  this
14    Section  and  from  the Regional Transportation Authority tax
15    fund created by Section 4.03 of the  Regional  Transportation
16    Authority  Act shall constitute an irrevocable and continuing
17    appropriation of all amounts as provided  herein.  The  State
18    Treasurer and State Comptroller are hereby authorized to make
19    distributions as provided in this Section.
20        In construing any development, redevelopment, annexation,
21    preannexation  or  other  lawful agreement in effect prior to
22    September 1, 1990, which describes or refers to receipts from
23    a county or municipal retailers' occupation tax, use  tax  or
24    service  occupation  tax  which  now  cannot be imposed, such
25    description or reference  shall  be  deemed  to  include  the
26    replacement  revenue  for  such  abolished taxes, distributed
27    from the County and  Mass  Transit  District  Fund  or  Local
28    Government Distributive Fund, as the case may be.
29    (Source: P.A. 86-928; 86-1481; 87-435.)
30        Section  15.   The  Illinois Income Tax Act is amended by
31    changing Sections 203,  301,  506,  905,  911,  and  1501  as
32    follows:
                            -8-               LRB9000732KDcbA
 1        (35 ILCS 5/203) (from Ch. 120, par. 2-203)
 2        Sec. 203.  Base income defined.
 3        (a)  Individuals.
 4             (1)  In general.  In the case of an individual, base
 5        income  means  an amount equal to the taxpayer's adjusted
 6        gross  income  for  the  taxable  year  as  modified   by
 7        paragraph (2).
 8             (2)  Modifications.    The   adjusted  gross  income
 9        referred to in paragraph (1) shall be modified by  adding
10        thereto the sum of the following amounts:
11                  (A)  An  amount  equal  to  all amounts paid or
12             accrued to the taxpayer  as  interest  or  dividends
13             during  the taxable year to the extent excluded from
14             gross income in the computation  of  adjusted  gross
15             income,  except  stock dividends of qualified public
16             utilities  described  in  Section  305(e)   of   the
17             Internal Revenue Code;
18                  (B)  An  amount  equal  to  the  amount  of tax
19             imposed by this Act  to  the  extent  deducted  from
20             gross  income  in  the computation of adjusted gross
21             income for the taxable year;
22                  (C)  An amount equal  to  the  amount  received
23             during  the  taxable year as a recovery or refund of
24             real  property  taxes  paid  with  respect  to   the
25             taxpayer's principal residence under the Revenue Act
26             of  1939  and  for  which a deduction was previously
27             taken under subparagraph (L) of this  paragraph  (2)
28             prior to July 1, 1991, the retrospective application
29             date  of Article 4 of Public Act 87-17.  In the case
30             of  multi-unit  or  multi-use  structures  and  farm
31             dwellings, the taxes  on  the  taxpayer's  principal
32             residence  shall  be that portion of the total taxes
33             for the entire property  which  is  attributable  to
34             such principal residence;
                            -9-               LRB9000732KDcbA
 1                  (D)  An  amount  equal  to  the  amount  of the
 2             capital gain deduction allowable under the  Internal
 3             Revenue  Code,  to  the  extent  deducted from gross
 4             income in the computation of adjusted gross  income;
 5             and
 6                  (D-5)  An amount, to the extent not included in
 7             adjusted  gross income, equal to the amount of money
 8             withdrawn by the taxpayer in the taxable year from a
 9             medical care savings account and the interest earned
10             on the account in the taxable year of  a  withdrawal
11             pursuant  to  subsection  (b)  of  Section 20 of the
12             Medical Care Savings Account Act;
13        and by deducting from the total so obtained  the  sum  of
14        the following amounts:
15                  (E)  Any  amount  included  in  such  total  in
16             respect  of  any  compensation  (including  but  not
17             limited  to  any  compensation  paid or accrued to a
18             serviceman while a prisoner of  war  or  missing  in
19             action)  paid  to  a  resident by reason of being on
20             active duty in the Armed Forces of the United States
21             and in respect of any compensation paid  or  accrued
22             to  a  resident who as a governmental employee was a
23             prisoner of war or missing in action, and in respect
24             of any compensation paid to a resident  in  1971  or
25             thereafter for annual training performed pursuant to
26             Sections  502  and 503, Title 32, United States Code
27             as a member of the Illinois National Guard;
28                  (F)  An amount equal to all amounts included in
29             such total pursuant to the  provisions  of  Sections
30             402(a),  402(c), 403(a), 403(b), 406(a), 407(a), and
31             408 of the Internal Revenue  Code,  or  included  in
32             such  total as distributions under the provisions of
33             any retirement or disability plan for  employees  of
34             any  governmental  agency  or  unit,  or  retirement
                            -10-              LRB9000732KDcbA
 1             payments  to  retired  partners,  which payments are
 2             excluded  in  computing  net  earnings   from   self
 3             employment  by  Section 1402 of the Internal Revenue
 4             Code and regulations adopted pursuant thereto;
 5                  (G)  The valuation limitation amount;
 6                  (H)  An amount equal to the amount of  any  tax
 7             imposed  by  this  Act  which  was  refunded  to the
 8             taxpayer and included in such total for the  taxable
 9             year;
10                  (I)  An amount equal to all amounts included in
11             such total pursuant to the provisions of Section 111
12             of  the Internal Revenue Code as a recovery of items
13             previously deducted from adjusted  gross  income  in
14             the computation of taxable income;
15                  (J)  An   amount   equal   to  those  dividends
16             included  in  such  total  which  were  paid  by   a
17             corporation which conducts business operations in an
18             Enterprise  Zone or zones created under the Illinois
19             Enterprise Zone Act, and conducts substantially  all
20             of its operations in an Enterprise Zone or zones;
21                  (K)  An   amount   equal   to  those  dividends
22             included  in  such  total  that  were  paid   by   a
23             corporation  that  conducts business operations in a
24             federally designated Foreign Trade Zone or  Sub-Zone
25             and  that  is  designated  a  High  Impact  Business
26             located   in   Illinois;   provided  that  dividends
27             eligible for the deduction provided in  subparagraph
28             (J) of paragraph (2) of this subsection shall not be
29             eligible  for  the  deduction  provided  under  this
30             subparagraph (K);
31                  (L)  For  taxable  years  ending after December
32             31, 1983, an amount equal  to  all  social  security
33             benefits  and  railroad retirement benefits included
34             in such total pursuant to Sections 72(r) and  86  of
                            -11-              LRB9000732KDcbA
 1             the Internal Revenue Code;
 2                  (M)  With   the   exception   of   any  amounts
 3             subtracted under subparagraph (N), an  amount  equal
 4             to  the  sum of all amounts disallowed as deductions
 5             by Sections 171(a) (2), and 265(2) of  the  Internal
 6             Revenue  Code  of 1954, as now or hereafter amended,
 7             and all amounts of expenses  allocable  to  interest
 8             and   disallowed  as deductions by Section 265(1) of
 9             the  Internal  Revenue  Code  of  1954,  as  now  or
10             hereafter amended;
11                  (N)  An amount equal to all amounts included in
12             such total which are exempt from  taxation  by  this
13             State   either   by   reason   of  its  statutes  or
14             Constitution  or  by  reason  of  the  Constitution,
15             treaties or statutes of the United States;  provided
16             that,  in the case of any statute of this State that
17             exempts  income  derived   from   bonds   or   other
18             obligations from the tax imposed under this Act, the
19             amount  exempted  shall  be the interest net of bond
20             premium amortization;
21                  (O)  An amount equal to any  contribution  made
22             to  a  job  training project established pursuant to
23             the Tax Increment Allocation Redevelopment Act;
24                  (P)  An amount  equal  to  the  amount  of  the
25             deduction  used  to  compute  the federal income tax
26             credit for restoration of substantial  amounts  held
27             under  claim  of right for the taxable year pursuant
28             to Section 1341 of  the  Internal  Revenue  Code  of
29             1986;
30                  (Q)  An amount equal to any amounts included in
31             such   total,   received   by  the  taxpayer  as  an
32             acceleration in the payment of  life,  endowment  or
33             annuity  benefits  in advance of the time they would
34             otherwise be payable as an indemnity for a  terminal
                            -12-              LRB9000732KDcbA
 1             illness;
 2                  (R)  An  amount  equal  to  the  amount  of any
 3             federal or State  bonus  paid  to  veterans  of  the
 4             Persian Gulf War;
 5                  (S)  An  amount,  to  the  extent  included  in
 6             adjusted  gross  income,  equal  to  the amount of a
 7             contribution made in the taxable year on  behalf  of
 8             the  taxpayer  to  a  medical  care  savings account
 9             established under the Medical Care  Savings  Account
10             Act  to  the  extent the contribution is accepted by
11             the account administrator as provided in that Act;
12                  (T)  An  amount,  to  the  extent  included  in
13             adjusted  gross  income,  equal  to  the  amount  of
14             interest earned in the taxable  year  on  a  medical
15             care  savings  account established under the Medical
16             Care Savings Account Act on behalf of the  taxpayer,
17             other  than interest added pursuant to item (D-5) of
18             this paragraph (2);
19                  (U)  For one taxable year beginning on or after
20             January 1, 1994, an amount equal to the total amount
21             of tax imposed and paid under  subsections  (a)  and
22             (b)  of  Section  201  of  this Act on grant amounts
23             received by the  taxpayer  under  the  Nursing  Home
24             Grant  Assistance  Act during the taxpayer's taxable
25             years 1992 and 1993; and
26                  (V)  Beginning with  tax  years  ending  on  or
27             after  December  31,  1995 and ending with tax years
28             ending on or before December  31,  1999,  an  amount
29             equal  to  the  amount  paid  by a taxpayer who is a
30             self-employed taxpayer, a partner of a  partnership,
31             or  a  shareholder in a Subchapter S corporation for
32             health insurance or  long-term  care  insurance  for
33             that   taxpayer   or   that   taxpayer's  spouse  or
34             dependents, to the extent that the amount  paid  for
                            -13-              LRB9000732KDcbA
 1             that  health  insurance  or long-term care insurance
 2             may be deducted under Section 213  of  the  Internal
 3             Revenue  Code  of 1986, has not been deducted on the
 4             federal income tax return of the taxpayer, and  does
 5             not  exceed  the taxable income attributable to that
 6             taxpayer's  income,   self-employment   income,   or
 7             Subchapter  S  corporation  income;  except  that no
 8             deduction shall be allowed under this  item  (V)  if
 9             the  taxpayer  is  eligible  to  participate  in any
10             health insurance or long-term care insurance plan of
11             an  employer  of  the  taxpayer  or  the  taxpayer's
12             spouse.  The amount  of  the  health  insurance  and
13             long-term  care insurance subtracted under this item
14             (V) shall be determined by multiplying total  health
15             insurance and long-term care insurance premiums paid
16             by  the  taxpayer times a number that represents the
17             fractional percentage of eligible  medical  expenses
18             under  Section  213  of the Internal Revenue Code of
19             1986 not actually deducted on the taxpayer's federal
20             income tax return.
21        (b)  Corporations.
22             (1)  In general.  In the case of a corporation, base
23        income means an amount equal to  the  taxpayer's  taxable
24        income for the taxable year as modified by paragraph (2).
25             (2)  Modifications.   The taxable income referred to
26        in paragraph (1) shall be modified by adding thereto  the
27        sum of the following amounts:
28                  (A)  An  amount  equal  to  all amounts paid or
29             accrued  to  the  taxpayer  as  interest   and   all
30             distributions  received  from  regulated  investment
31             companies  during  the  taxable  year  to the extent
32             excluded from gross income  in  the  computation  of
33             taxable income;
34                  (B)  An  amount  equal  to  the  amount  of tax
                            -14-              LRB9000732KDcbA
 1             imposed by this Act  to  the  extent  deducted  from
 2             gross  income  in  the computation of taxable income
 3             for the taxable year;
 4                  (C)  In the  case  of  a  regulated  investment
 5             company  or  real estate investment trust, an amount
 6             equal to the excess of (i) the net long-term capital
 7             gain for the taxable year, over (ii) the  amount  of
 8             the  capital  gain  dividends  designated as such in
 9             accordance  with  Section  852(b)(3)(C)  or  Section
10             857(b)(3)(C) of the Internal Revenue  Code  and  any
11             amount  designated under Section 852(b)(3)(D) of the
12             Internal Revenue Code, attributable to  the  taxable
13             year.
14        This  amendatory  Act  of 1995 is declarative of existing
15    law and is not a new enactment.
16                  (D)  The  amount  of  any  net  operating  loss
17             deduction taken in arriving at taxable income, other
18             than a net operating loss  carried  forward  from  a
19             taxable year ending prior to December 31, 1986; and
20                  (E)  For taxable years in which a net operating
21             loss  carryback  or carryforward from a taxable year
22             ending prior to December 31, 1986 is an  element  of
23             taxable income under paragraph (1) of subsection (e)
24             or  subparagraph  (E) of paragraph (2) of subsection
25             (e), the  amount  by  which  addition  modifications
26             other  than  those provided by this subparagraph (E)
27             exceeded subtraction modifications in  such  earlier
28             taxable year, with the following limitations applied
29             in the order that they are listed:
30                       (i)  the addition modification relating to
31                  the  net operating loss carried back or forward
32                  to the  taxable  year  from  any  taxable  year
33                  ending  prior  to  December  31,  1986 shall be
34                  reduced by the amount of addition  modification
                            -15-              LRB9000732KDcbA
 1                  under  this  subparagraph  (E) which related to
 2                  that net operating loss  and  which  was  taken
 3                  into  account in calculating the base income of
 4                  an earlier taxable year, and
 5                       (ii)  the addition  modification  relating
 6                  to  the  net  operating  loss  carried  back or
 7                  forward to the taxable year  from  any  taxable
 8                  year  ending  prior  to December 31, 1986 shall
 9                  not exceed the  amount  of  such  carryback  or
10                  carryforward;
11                  For  taxable  years  in  which  there  is a net
12             operating loss carryback or carryforward  from  more
13             than one other taxable year ending prior to December
14             31, 1986, the addition modification provided in this
15             subparagraph  (E)  shall  be  the sum of the amounts
16             computed   independently   under    the    preceding
17             provisions  of  this  subparagraph (E) for each such
18             taxable year,
19        and by deducting from the total so obtained  the  sum  of
20        the following amounts:
21                  (F)  An  amount  equal to the amount of any tax
22             imposed by  this  Act  which  was  refunded  to  the
23             taxpayer  and included in such total for the taxable
24             year;
25                  (G)  An amount equal to any amount included  in
26             such  total under Section 78 of the Internal Revenue
27             Code;
28                  (H)  In the  case  of  a  regulated  investment
29             company,  an  amount  equal  to the amount of exempt
30             interest dividends as defined in subsection (b)  (5)
31             of Section 852 of the Internal Revenue Code, paid to
32             shareholders for the taxable year;
33                  (I)  With   the   exception   of   any  amounts
34             subtracted under subparagraph (J), an  amount  equal
                            -16-              LRB9000732KDcbA
 1             to  the  sum of all amounts disallowed as deductions
 2             by Sections 171(a) (2), and  265(a)(2)  and  amounts
 3             disallowed  as interest expense by Section 291(a)(3)
 4             of the Internal Revenue Code, as  now  or  hereafter
 5             amended,  and  all  amounts of expenses allocable to
 6             interest and disallowed  as  deductions  by  Section
 7             265(a)(1)  of  the  Internal Revenue Code, as now or
 8             hereafter amended;
 9                  (J)  An amount equal to all amounts included in
10             such total which are exempt from  taxation  by  this
11             State   either   by   reason   of  its  statutes  or
12             Constitution  or  by  reason  of  the  Constitution,
13             treaties or statutes of the United States;  provided
14             that,  in the case of any statute of this State that
15             exempts  income  derived   from   bonds   or   other
16             obligations from the tax imposed under this Act, the
17             amount  exempted  shall  be the interest net of bond
18             premium amortization;
19                  (K)  An  amount  equal   to   those   dividends
20             included   in  such  total  which  were  paid  by  a
21             corporation which conducts business operations in an
22             Enterprise Zone or zones created under the  Illinois
23             Enterprise  Zone  Act and conducts substantially all
24             of its operations in an Enterprise Zone or zones;
25                  (L)  An  amount  equal   to   those   dividends
26             included   in   such  total  that  were  paid  by  a
27             corporation that conducts business operations  in  a
28             federally  designated Foreign Trade Zone or Sub-Zone
29             and  that  is  designated  a  High  Impact  Business
30             located  in  Illinois;   provided   that   dividends
31             eligible  for the deduction provided in subparagraph
32             (K) of paragraph 2 of this subsection shall  not  be
33             eligible  for  the  deduction  provided  under  this
34             subparagraph (L);
                            -17-              LRB9000732KDcbA
 1                  (M)  For  any  taxpayer  that  is  a  financial
 2             organization within the meaning of Section 304(c) of
 3             this  Act,  an  amount  included  in  such  total as
 4             interest income from a loan or loans  made  by  such
 5             taxpayer  to  a  borrower, to the extent that such a
 6             loan is secured by property which  is  eligible  for
 7             the  Enterprise Zone Investment Credit. To determine
 8             the portion of a loan or loans that  is  secured  by
 9             property  eligible  for  a Section 201(h) investment
10             credit to the borrower, the entire principal  amount
11             of  the  loan  or loans between the taxpayer and the
12             borrower should be divided into  the  basis  of  the
13             Section  201(h)  investment  credit  property  which
14             secures  the  loan  or loans, using for this purpose
15             the original basis of such property on the date that
16             it was placed in service  in  the  Enterprise  Zone.
17             The  subtraction  modification available to taxpayer
18             in any year under  this  subsection  shall  be  that
19             portion  of  the total interest paid by the borrower
20             with  respect  to  such  loan  attributable  to  the
21             eligible property as calculated under  the  previous
22             sentence;
23                  (M-1)  For  any  taxpayer  that  is a financial
24             organization within the meaning of Section 304(c) of
25             this Act,  an  amount  included  in  such  total  as
26             interest  income  from  a loan or loans made by such
27             taxpayer to a borrower, to the extent  that  such  a
28             loan  is  secured  by property which is eligible for
29             the High  Impact  Business  Investment  Credit.   To
30             determine  the  portion  of  a loan or loans that is
31             secured by property eligible for  a  Section  201(i)
32             investment   credit  to  the  borrower,  the  entire
33             principal amount of the loan or  loans  between  the
34             taxpayer and the borrower should be divided into the
                            -18-              LRB9000732KDcbA
 1             basis   of  the  Section  201(i)  investment  credit
 2             property which secures the loan or loans, using  for
 3             this  purpose the original basis of such property on
 4             the  date  that  it  was  placed  in  service  in  a
 5             federally designated Foreign Trade Zone or  Sub-Zone
 6             located  in  Illinois.  No taxpayer that is eligible
 7             for the deduction provided in  subparagraph  (M)  of
 8             paragraph  (2)  of this subsection shall be eligible
 9             for the deduction provided under  this  subparagraph
10             (M-1).   The  subtraction  modification available to
11             taxpayers in any year under this subsection shall be
12             that portion of  the  total  interest  paid  by  the
13             borrower  with  respect to such loan attributable to
14             the  eligible  property  as  calculated  under   the
15             previous sentence;
16                  (N)  Two times any contribution made during the
17             taxable  year  to  a designated zone organization to
18             the extent that the contribution (i) qualifies as  a
19             charitable  contribution  under  subsection  (c)  of
20             Section  170  of  the Internal Revenue Code and (ii)
21             must, by its terms, be used for a  project  approved
22             by  the Department of Commerce and Community Affairs
23             under Section 11 of  the  Illinois  Enterprise  Zone
24             Act;
25                  (O)  An  amount  equal  to: (i) 85% for taxable
26             years ending on or before December 31, 1992,  or,  a
27             percentage  equal  to the percentage allowable under
28             Section 243(a)(1) of the Internal  Revenue  Code  of
29             1986  for  taxable  years  ending after December 31,
30             1992, of the amount by which dividends  included  in
31             taxable  income and received from a corporation that
32             is not created or organized under the  laws  of  the
33             United  States or any state or political subdivision
34             thereof, including, for taxable years ending  on  or
                            -19-              LRB9000732KDcbA
 1             after  December  31,  1988,  dividends  received  or
 2             deemed   received  or  paid  or  deemed  paid  under
 3             Sections 951 through 964  of  the  Internal  Revenue
 4             Code, exceed the amount of the modification provided
 5             under  subparagraph  (G)  of  paragraph  (2) of this
 6             subsection (b) which is related to  such  dividends;
 7             plus  (ii)  100%  of  the amount by which dividends,
 8             included in taxable income and received,  including,
 9             for  taxable  years  ending on or after December 31,
10             1988, dividends received or deemed received or  paid
11             or deemed paid under Sections 951 through 964 of the
12             Internal  Revenue  Code,  from  any such corporation
13             specified in clause  (i)  that  would  but  for  the
14             provisions  of  Section 1504 (b) (3) of the Internal
15             Revenue  Code  be  treated  as  a  member   of   the
16             affiliated   group   which   includes  the  dividend
17             recipient, exceed the  amount  of  the  modification
18             provided  under subparagraph (G) of paragraph (2) of
19             this  subsection  (b)  which  is  related  to   such
20             dividends;
21                  (P)  An  amount  equal to any contribution made
22             to a job training project  established  pursuant  to
23             the Tax Increment Allocation Redevelopment Act; and
24                  (Q)  An  amount  equal  to  the  amount  of the
25             deduction used to compute  the  federal  income  tax
26             credit  for  restoration of substantial amounts held
27             under claim of right for the taxable  year  pursuant
28             to  Section  1341  of  the  Internal Revenue Code of
29             1986.
30             (3)  Special rule.  For purposes  of  paragraph  (2)
31        (A),  "gross  income"  in  the  case  of a life insurance
32        company, for tax years ending on and after  December  31,
33        1994,  shall  mean  the  gross  investment income for the
34        taxable year.
                            -20-              LRB9000732KDcbA
 1        (c)  Trusts and estates.
 2             (1)  In general.  In the case of a trust or  estate,
 3        base  income  means  an  amount  equal  to the taxpayer's
 4        taxable income  for  the  taxable  year  as  modified  by
 5        paragraph (2).
 6             (2)  Modifications.   Subject  to  the provisions of
 7        paragraph  (3),  the  taxable  income  referred   to   in
 8        paragraph (1) shall be modified by adding thereto the sum
 9        of the following amounts:
10                  (A)  An  amount  equal  to  all amounts paid or
11             accrued to the taxpayer  as  interest  or  dividends
12             during  the taxable year to the extent excluded from
13             gross income in the computation of taxable income;
14                  (B)  In the case of (i) an estate, $600; (ii) a
15             trust which,  under  its  governing  instrument,  is
16             required  to distribute all of its income currently,
17             $300; and (iii) any other trust, $100, but  in  each
18             such  case,  only  to  the  extent  such  amount was
19             deducted in the computation of taxable income;
20                  (C)  An amount  equal  to  the  amount  of  tax
21             imposed  by  this  Act  to  the extent deducted from
22             gross income in the computation  of  taxable  income
23             for the taxable year;
24                  (D)  The  amount  of  any  net  operating  loss
25             deduction taken in arriving at taxable income, other
26             than  a  net  operating  loss carried forward from a
27             taxable year ending prior to December 31, 1986;
28                  (E)  For taxable years in which a net operating
29             loss carryback or carryforward from a  taxable  year
30             ending  prior  to December 31, 1986 is an element of
31             taxable income under paragraph (1) of subsection (e)
32             or subparagraph (E) of paragraph (2)  of  subsection
33             (e),  the  amount  by  which  addition modifications
34             other than those provided by this  subparagraph  (E)
                            -21-              LRB9000732KDcbA
 1             exceeded  subtraction  modifications in such taxable
 2             year, with the following limitations applied in  the
 3             order that they are listed:
 4                       (i)  the addition modification relating to
 5                  the  net operating loss carried back or forward
 6                  to the  taxable  year  from  any  taxable  year
 7                  ending  prior  to  December  31,  1986 shall be
 8                  reduced by the amount of addition  modification
 9                  under  this  subparagraph  (E) which related to
10                  that net operating loss  and  which  was  taken
11                  into  account in calculating the base income of
12                  an earlier taxable year, and
13                       (ii)  the addition  modification  relating
14                  to  the  net  operating  loss  carried  back or
15                  forward to the taxable year  from  any  taxable
16                  year  ending  prior  to December 31, 1986 shall
17                  not exceed the  amount  of  such  carryback  or
18                  carryforward;
19                  For  taxable  years  in  which  there  is a net
20             operating loss carryback or carryforward  from  more
21             than one other taxable year ending prior to December
22             31, 1986, the addition modification provided in this
23             subparagraph  (E)  shall  be  the sum of the amounts
24             computed   independently   under    the    preceding
25             provisions  of  this  subparagraph (E) for each such
26             taxable year;
27                  (F)  For  taxable  years  ending  on  or  after
28             January 1, 1989, an amount equal to the tax deducted
29             pursuant to Section 164 of the Internal Revenue Code
30             if the trust or estate is claiming the same tax  for
31             purposes  of  the  Illinois foreign tax credit under
32             Section 601 of this Act; and
33                  (G)  An amount  equal  to  the  amount  of  the
34             capital  gain deduction allowable under the Internal
                            -22-              LRB9000732KDcbA
 1             Revenue Code, to  the  extent  deducted  from  gross
 2             income in the computation of taxable income;
 3        and  by  deducting  from the total so obtained the sum of
 4        the following amounts:
 5                  (H)  An amount equal to all amounts included in
 6             such total pursuant to the  provisions  of  Sections
 7             402(a),  402(c),  403(a), 403(b), 406(a), 407(a) and
 8             408 of the Internal Revenue Code or included in such
 9             total as distributions under the provisions  of  any
10             retirement  or  disability plan for employees of any
11             governmental agency or unit, or retirement  payments
12             to  retired partners, which payments are excluded in
13             computing  net  earnings  from  self  employment  by
14             Section  1402  of  the  Internal  Revenue  Code  and
15             regulations adopted pursuant thereto;
16                  (I)  The valuation limitation amount;
17                  (J)  An amount equal to the amount of  any  tax
18             imposed  by  this  Act  which  was  refunded  to the
19             taxpayer and included in such total for the  taxable
20             year;
21                  (K)  An amount equal to all amounts included in
22             taxable  income  as  modified  by subparagraphs (A),
23             (B), (C), (D), (E), (F) and  (G)  which  are  exempt
24             from  taxation by this State either by reason of its
25             statutes  or  Constitution  or  by  reason  of   the
26             Constitution,  treaties  or  statutes  of the United
27             States; provided that, in the case of any statute of
28             this State that exempts income derived from bonds or
29             other obligations from the tax  imposed  under  this
30             Act,  the  amount exempted shall be the interest net
31             of bond premium amortization;
32                  (L)  With  the   exception   of   any   amounts
33             subtracted  under  subparagraph (K), an amount equal
34             to the sum of all amounts disallowed  as  deductions
                            -23-              LRB9000732KDcbA
 1             by Sections 171(a) (2) and 265(a)(2) of the Internal
 2             Revenue  Code,  as now or hereafter amended, and all
 3             amounts  of  expenses  allocable  to  interest   and
 4             disallowed  as  deductions  by Section 265(1) of the
 5             Internal Revenue Code of 1954, as now  or  hereafter
 6             amended;
 7                  (M)  An   amount   equal   to  those  dividends
 8             included  in  such  total  which  were  paid  by   a
 9             corporation which conducts business operations in an
10             Enterprise  Zone or zones created under the Illinois
11             Enterprise Zone Act and conducts  substantially  all
12             of its operations in an Enterprise Zone or Zones;
13                  (N)  An  amount  equal to any contribution made
14             to a job training project  established  pursuant  to
15             the Tax Increment Allocation Redevelopment Act;
16                  (O)  An   amount   equal   to  those  dividends
17             included  in  such  total  that  were  paid   by   a
18             corporation  that  conducts business operations in a
19             federally designated Foreign Trade Zone or  Sub-Zone
20             and  that  is  designated  a  High  Impact  Business
21             located   in   Illinois;   provided  that  dividends
22             eligible for the deduction provided in  subparagraph
23             (M) of paragraph (2) of this subsection shall not be
24             eligible  for  the  deduction  provided  under  this
25             subparagraph (O); and
26                  (P)  An  amount  equal  to  the  amount  of the
27             deduction used to compute  the  federal  income  tax
28             credit  for  restoration of substantial amounts held
29             under claim of right for the taxable  year  pursuant
30             to  Section  1341  of  the  Internal Revenue Code of
31             1986.
32             (3)  Limitation.  The  amount  of  any  modification
33        otherwise  required  under  this  subsection shall, under
34        regulations prescribed by the Department, be adjusted  by
                            -24-              LRB9000732KDcbA
 1        any  amounts  included  therein which were properly paid,
 2        credited, or required to be distributed,  or  permanently
 3        set  aside  for charitable purposes pursuant  to Internal
 4        Revenue Code Section 642(c) during the taxable year.
 5        (d)  Partnerships.
 6             (1)  In general. In the case of a partnership,  base
 7        income  means  an  amount equal to the taxpayer's taxable
 8        income for the taxable year as modified by paragraph (2).
 9             (2)  Modifications. The taxable income  referred  to
10        in  paragraph (1) shall be modified by adding thereto the
11        sum of the following amounts:
12                  (A)  An amount equal to  all  amounts  paid  or
13             accrued  to  the  taxpayer  as interest or dividends
14             during the taxable year to the extent excluded  from
15             gross income in the computation of taxable income;
16                  (B)  An  amount  equal  to  the  amount  of tax
17             imposed by this Act  to  the  extent  deducted  from
18             gross income for the taxable year; and
19                  (C)  The  amount  of  deductions allowed to the
20             partnership pursuant  to  Section  707  (c)  of  the
21             Internal  Revenue  Code  in  calculating its taxable
22             income;
23                  (D)  An amount  equal  to  the  amount  of  the
24             capital  gain deduction allowable under the Internal
25             Revenue Code, to  the  extent  deducted  from  gross
26             income in the computation of taxable income;
27        and by deducting from the total so obtained the following
28        amounts:
29                  (E)  The valuation limitation amount;
30                  (F)  An  amount  equal to the amount of any tax
31             imposed by  this  Act  which  was  refunded  to  the
32             taxpayer  and included in such total for the taxable
33             year;
34                  (G)  An amount equal to all amounts included in
                            -25-              LRB9000732KDcbA
 1             taxable income as  modified  by  subparagraphs  (A),
 2             (B),  (C)  and (D) which are exempt from taxation by
 3             this State either  by  reason  of  its  statutes  or
 4             Constitution  or  by  reason  of  the  Constitution,
 5             treaties  or statutes of the United States; provided
 6             that, in the case of any statute of this State  that
 7             exempts   income   derived   from   bonds  or  other
 8             obligations from the tax imposed under this Act, the
 9             amount exempted shall be the interest  net  of  bond
10             premium amortization;
11                  (H)  Any   income   of  the  partnership  which
12             constitutes personal service income  as  defined  in
13             Section  1348  (b)  (1) of the Internal Revenue Code
14             (as in effect December 31,  1981)  or  a  reasonable
15             allowance  for  compensation  paid  or  accrued  for
16             services  rendered  by  partners to the partnership,
17             whichever is greater;
18                  (I)  An amount equal to all amounts  of  income
19             distributable  to  an entity subject to the Personal
20             Property  Tax  Replacement  Income  Tax  imposed  by
21             subsections (c) and (d) of Section 201 of  this  Act
22             including  amounts  distributable  to  organizations
23             exempt  from federal income tax by reason of Section
24             501(a) of the Internal Revenue Code;
25                  (J)  With  the   exception   of   any   amounts
26             subtracted  under  subparagraph (G), an amount equal
27             to the sum of all amounts disallowed  as  deductions
28             by  Sections  171(a) (2), and 265(2) of the Internal
29             Revenue Code of 1954, as now or  hereafter  amended,
30             and  all  amounts  of expenses allocable to interest
31             and disallowed as deductions by  Section  265(1)  of
32             the  Internal  Revenue  Code,  as  now  or hereafter
33             amended;
34                  (K)  An  amount  equal   to   those   dividends
                            -26-              LRB9000732KDcbA
 1             included   in  such  total  which  were  paid  by  a
 2             corporation which conducts business operations in an
 3             Enterprise Zone or zones created under the  Illinois
 4             Enterprise  Zone  Act,  enacted  by the 82nd General
 5             Assembly, and which does not conduct such operations
 6             other than in an Enterprise Zone or Zones;
 7                  (L)  An amount equal to any  contribution  made
 8             to  a  job  training project established pursuant to
 9             the   Real   Property   Tax   Increment   Allocation
10             Redevelopment Act;
11                  (M)  An  amount  equal   to   those   dividends
12             included   in   such  total  that  were  paid  by  a
13             corporation that conducts business operations  in  a
14             federally  designated Foreign Trade Zone or Sub-Zone
15             and  that  is  designated  a  High  Impact  Business
16             located  in  Illinois;   provided   that   dividends
17             eligible  for the deduction provided in subparagraph
18             (K) of paragraph (2) of this subsection shall not be
19             eligible  for  the  deduction  provided  under  this
20             subparagraph (M); and
21                  (N)  An amount  equal  to  the  amount  of  the
22             deduction  used  to  compute  the federal income tax
23             credit for restoration of substantial  amounts  held
24             under  claim  of right for the taxable year pursuant
25             to Section 1341 of  the  Internal  Revenue  Code  of
26             1986.
27        (e)  Gross income; adjusted gross income; taxable income.
28             (1)  In  general.   Subject  to  the  provisions  of
29        paragraph  (2)  and  subsection  (b) (3), for purposes of
30        this Section  and  Section  803(e),  a  taxpayer's  gross
31        income,  adjusted gross income, or taxable income for the
32        taxable year shall  mean  the  amount  of  gross  income,
33        adjusted   gross   income   or  taxable  income  properly
34        reportable  for  federal  income  tax  purposes  for  the
                            -27-              LRB9000732KDcbA
 1        taxable year under the provisions of the Internal Revenue
 2        Code. Taxable income may be less than zero. However,  for
 3        taxable  years  ending on or after December 31, 1986, net
 4        operating loss carryforwards from  taxable  years  ending
 5        prior  to  December  31,  1986, may not exceed the sum of
 6        federal taxable income for the taxable  year  before  net
 7        operating  loss  deduction,  plus  the excess of addition
 8        modifications  over  subtraction  modifications  for  the
 9        taxable year.  For taxable years ending prior to December
10        31, 1986, taxable income may never be an amount in excess
11        of the net operating loss for the taxable year as defined
12        in subsections (c) and (d) of Section 172 of the Internal
13        Revenue Code, provided that  when  taxable  income  of  a
14        corporation  (other  than  a  Subchapter  S corporation),
15        trust,  or  estate  is  less  than  zero   and   addition
16        modifications,  other than those provided by subparagraph
17        (E) of paragraph (2) of subsection (b)  for  corporations
18        or  subparagraph  (E)  of paragraph (2) of subsection (c)
19        for trusts and estates, exceed subtraction modifications,
20        an  addition  modification  must  be  made  under   those
21        subparagraphs  for  any  other  taxable year to which the
22        taxable income less than zero  (net  operating  loss)  is
23        applied under Section 172 of the Internal Revenue Code or
24        under   subparagraph   (E)   of  paragraph  (2)  of  this
25        subsection (e) applied in conjunction with Section 172 of
26        the Internal Revenue Code.
27             (2)  Special rule.  For purposes of paragraph (1) of
28        this subsection, the taxable income  properly  reportable
29        for federal income tax purposes shall mean:
30                  (A)  Certain  life insurance companies.  In the
31             case of a life insurance company subject to the  tax
32             imposed by Section 801 of the Internal Revenue Code,
33             life  insurance  company  taxable  income,  plus the
34             amount of distribution  from  pre-1984  policyholder
                            -28-              LRB9000732KDcbA
 1             surplus accounts as calculated under Section 815a of
 2             the Internal Revenue Code;
 3                  (B)  Certain other insurance companies.  In the
 4             case  of  mutual  insurance companies subject to the
 5             tax imposed by Section 831 of the  Internal  Revenue
 6             Code, insurance company taxable income;
 7                  (C)  Regulated  investment  companies.   In the
 8             case of a regulated investment  company  subject  to
 9             the  tax  imposed  by  Section  852  of the Internal
10             Revenue Code, investment company taxable income;
11                  (D)  Real estate  investment  trusts.   In  the
12             case  of  a  real estate investment trust subject to
13             the tax imposed  by  Section  857  of  the  Internal
14             Revenue  Code,  real estate investment trust taxable
15             income;
16                  (E)  Consolidated corporations.  In the case of
17             a corporation which is a  member  of  an  affiliated
18             group  of  corporations filing a consolidated income
19             tax return for the taxable year for  federal  income
20             tax  purposes,  taxable income determined as if such
21             corporation had filed a separate return for  federal
22             income  tax  purposes  for the taxable year and each
23             preceding taxable year for which it was a member  of
24             an   affiliated   group.   For   purposes   of  this
25             subparagraph, the taxpayer's separate taxable income
26             shall be determined as if the election  provided  by
27             Section  243(b) (2) of the Internal Revenue Code had
28             been in effect for all such years;
29                  (F)  Cooperatives.    In   the   case   of    a
30             cooperative  corporation or association, the taxable
31             income of such organization determined in accordance
32             with the provisions of Section 1381 through 1388  of
33             the Internal Revenue Code;
34                  (G)  Subchapter  S  corporations.   In the case
                            -29-              LRB9000732KDcbA
 1             of: (i) a Subchapter S corporation for  which  there
 2             is  in effect an election for the taxable year under
 3             Section 1362  of  the  Internal  Revenue  Code,  the
 4             taxable  income  of  such  corporation determined in
 5             accordance with  Section  1363(b)  of  the  Internal
 6             Revenue  Code, except that taxable income shall take
 7             into account  those  items  which  are  required  by
 8             Section  1363(b)(1)  of the Internal Revenue Code to
 9             be  separately  stated;  and  (ii)  a  Subchapter  S
10             corporation for which there is in effect  a  federal
11             election  to  opt  out  of  the  provisions  of  the
12             Subchapter  S  Revision Act of 1982 and have applied
13             instead the prior federal Subchapter S rules  as  in
14             effect  on  July 1, 1982, the taxable income of such
15             corporation  determined  in  accordance   with   the
16             federal  Subchapter  S rules as in effect on July 1,
17             1982; and
18                  (H)  Partnerships.    In   the   case   of    a
19             partnership, taxable income determined in accordance
20             with  Section  703  of  the  Internal  Revenue Code,
21             except that taxable income shall take  into  account
22             those  items which are required by Section 703(a)(1)
23             to be separately stated but  which  would  be  taken
24             into  account  by  an  individual in calculating his
25             taxable income.
26        (f)  Valuation limitation amount.
27             (1)  In general.  The  valuation  limitation  amount
28        referred  to  in subsections (a) (2) (G), (c) (2) (I) and
29        (d)(2) (E) is an amount equal to:
30                  (A)  The  sum  of  the   pre-August   1,   1969
31             appreciation  amounts  (to  the extent consisting of
32             gain reportable under the provisions of Section 1245
33             or 1250  of  the  Internal  Revenue  Code)  for  all
34             property  in respect of which such gain was reported
                            -30-              LRB9000732KDcbA
 1             for the taxable year; plus
 2                  (B)  The  lesser  of  (i)  the   sum   of   the
 3             pre-August  1,  1969  appreciation  amounts  (to the
 4             extent consisting of capital gain) for all  property
 5             in  respect  of  which  such  gain  was reported for
 6             federal income tax purposes for the taxable year, or
 7             (ii) the net capital  gain  for  the  taxable  year,
 8             reduced  in  either  case by any amount of such gain
 9             included in the amount determined  under  subsection
10             (a) (2) (F) or (c) (2) (H).
11        (2)  Pre-August 1, 1969 appreciation amount.
12                  (A)  If  the  fair  market  value  of  property
13             referred   to   in   paragraph   (1)   was   readily
14             ascertainable  on  August 1, 1969, the pre-August 1,
15             1969 appreciation amount for such  property  is  the
16             lesser  of  (i) the excess of such fair market value
17             over the taxpayer's basis (for determining gain) for
18             such property on that  date  (determined  under  the
19             Internal Revenue Code as in effect on that date), or
20             (ii)  the  total  gain  realized  and reportable for
21             federal income tax purposes in respect of the  sale,
22             exchange or other disposition of such property.
23                  (B)  If  the  fair  market  value  of  property
24             referred   to  in  paragraph  (1)  was  not  readily
25             ascertainable on August 1, 1969, the  pre-August  1,
26             1969  appreciation  amount for such property is that
27             amount which bears the same ratio to the total  gain
28             reported  in  respect  of  the  property for federal
29             income tax purposes for the  taxable  year,  as  the
30             number  of  full calendar months in that part of the
31             taxpayer's holding period for  the  property  ending
32             July  31,  1969 bears to the number of full calendar
33             months in the taxpayer's entire holding  period  for
34             the property.
                            -31-              LRB9000732KDcbA
 1                  (C)  The   Department   shall   prescribe  such
 2             regulations as may be necessary  to  carry  out  the
 3             purposes of this paragraph.
 4        (g)  Double  deductions.   Unless  specifically  provided
 5    otherwise, nothing in this Section shall permit the same item
 6    to be deducted more than once.
 7        (h)  Legislative intention.  Except as expressly provided
 8    by   this   Section   there  shall  be  no  modifications  or
 9    limitations on the amounts of income, gain, loss or deduction
10    taken into account  in  determining  gross  income,  adjusted
11    gross  income  or  taxable  income  for  federal  income  tax
12    purposes for the taxable year, or in the amount of such items
13    entering  into  the computation of base income and net income
14    under this Act for such taxable year, whether in  respect  of
15    property values as of August 1, 1969 or otherwise.
16    (Source:  P.A.  88-195;  88-648,  eff.  9-16-94; 88-669, eff.
17    11-29-94; 88-670, eff. 12-2-94; 89-89, eff. 6-30-95;  89-235,
18    eff.  8-4-95;  89-418,  eff.  11-15-95; 89-460, eff. 5-24-96;
19    89-626, eff. 8-9-96.)
20        (35 ILCS 5/301) (from Ch. 120, par. 3-301)
21        Sec. 301. General Rule.
22        (a)  Residents. All items of income  or  deduction  which
23    were taken into account in the computation of base income for
24    the  taxable  year  by  a resident shall be allocated to this
25    State.
26        (b)  Part-year  residents.  All  items   of   income   or
27    deduction which were taken into account in the computation of
28    base  income  for  the  taxable  year by a part-year resident
29    shall, for that part of the year the part-year resident was a
30    resident of this State, be allocated to this State  and,  for
31    the  remaining  part  of the year, be allocated to this State
32    only to the extent  provided  by  Section  302,  303  or  304
33    (relating  to  compensation,  nonbusiness income and business
                            -32-              LRB9000732KDcbA
 1    income, respectively).
 2        (c)  Other persons.
 3             (1)  In general. Any item  of  income  or  deduction
 4        which  was  taken into account in the computation of base
 5        income for the taxable year by any person  other  than  a
 6        resident  and which is referred to in Section 302, 303 or
 7        304 (relating to  compensation,  nonbusiness  income  and
 8        business income, respectively) shall be allocated to this
 9        State only to the extent provided by such section.
10             (2)  Unspecified  items.   Any  item  of  income  or
11        deduction which was taken into account in the computation
12        of  base  income for the taxable year by any person other
13        than a resident and which is not  otherwise  specifically
14        allocated  or apportioned pursuant to Section 302, 303 or
15        304 (including, without limitation, interest,  dividends,
16        items  of  income taken into account under the provisions
17        of Sections 401 through 425 of the Internal Revenue Code,
18        and benefit payments  received  by  a  beneficiary  of  a
19        supplemental unemployment benefit trust which is referred
20        to in Section 501(c)(17) of the Internal Revenue Code):
21                  (A)  in  the  case  of  an individual, trust or
22             estate, shall not be allocated to this State; and
23                  (B)  in the case of a corporation, trust, or  a
24             partnership, shall be allocated to this State if the
25             taxpayer  had  its commercial domicile in this State
26             at the time such item was paid, incurred or accrued.
27    (Source: P.A. 82-609.)
28        (35 ILCS 5/506) (from Ch. 120, par. 5-506)
29        Sec. 506.  Federal Returns. (a) In general.   Any  person
30    required  to  make a return for a taxable year under this Act
31    may, at any time that a deficiency could  be  assessed  or  a
32    refund claimed under this Act in respect of any item reported
33    or  properly  reportable  on  such  return  or  any amendment
                            -33-              LRB9000732KDcbA
 1    thereof, be required to furnish to the Department a true  and
 2    correct copy of any return which may pertain to such item and
 3    which  was  filed  by such person under the provisions of the
 4    Internal Revenue Code.
 5        (b)  Changes affecting federal income tax. In  the  event
 6    the  taxable  income, any item of income or deduction, or the
 7    income tax liability, or any tax credit reported in a federal
 8    income tax return of any person for any year  is  altered  by
 9    amendment  of  such  return  or  as  a  result  of  any other
10    recomputation or redetermination of federal taxable income or
11    loss, and such alteration reflects  a  change  or  settlement
12    with  respect to any item or items, affecting the computation
13    of such person's net income,  net  loss,  or  of  any  credit
14    provided  by  Article  2 of this Act base income for any year
15    under this Act, or  in  the  number  of  personal  exemptions
16    allowable  to  such  person under Section 151 of the Internal
17    Revenue Code, such person shall notify the Department of such
18    alteration. Such notification shall be  in  the  form  of  an
19    amended  return  or  such other form as the Department may by
20    regulations prescribe, shall contain the  person's  name  and
21    address  and  such other information as the Department may by
22    regulations prescribe, shall be signed by such person or  his
23    duly  authorized representative, and shall be filed not later
24    than 120 days after such alteration has  been  agreed  to  or
25    finally  determined  for  federal  income tax purposes or any
26    federal income tax deficiency or refund, tentative  carryback
27    adjustment,  abatement or credit resulting therefrom has been
28    assessed or paid, whichever shall first occur.
29    (Source: P.A. 86-905.)
30        (35 ILCS 5/905) (from Ch. 120, par. 9-905)
31        Sec. 905.  Limitations on Notices of Deficiency.
32        (a)  In general. Except as  otherwise  provided  in  this
33    Act:
                            -34-              LRB9000732KDcbA
 1             (1)  A  notice  of  deficiency  shall  be issued not
 2        later than 3 years after the date the return  was  filed,
 3        and
 4             (2)  No  deficiency  shall  be assessed or collected
 5        with respect to the year for which the return  was  filed
 6        unless such notice is issued within such period.
 7        (b)  Omission of more than 25% of income. If the taxpayer
 8    omits  from base income an amount properly includible therein
 9    which is in excess of 25% of the amount of base income stated
10    in the return, a notice of deficiency may be issued not later
11    than 6 years after the return was filed. For purposes of this
12    paragraph, there shall not be taken into account  any  amount
13    which is omitted in the return if such amount is disclosed in
14    the  return,  or  in a statement attached to the return, in a
15    manner adequate to apprise the Department of the  nature  and
16    the amount of such item.
17        (c)  No  return  or  fraudulent  return.  If no return is
18    filed or a false and fraudulent return is filed  with  intent
19    to  evade the tax imposed by this Act, a notice of deficiency
20    may be issued at any time.
21        (d)  Failure to report  federal  change.  If  a  taxpayer
22    fails to notify the Department in any case where notification
23    is required by Section 304(c) or 506(b), or fails to report a
24    change  or  correction which is treated in the same manner as
25    if it were a deficiency for federal income  tax  purposes,  a
26    notice of deficiency may be issued at any time.
27        (e)  Report   of   federal  change.  In  any  case  where
28    notification of an alteration is given as required by Section
29    506(b), a notice of deficiency may  be  issued  at  any  time
30    within  2  years  after  the date such notification is given,
31    provided, however, that the amount of any proposed assessment
32    set forth in such notice shall be limited to  the  amount  of
33    any deficiency resulting under this Act from recomputation of
34    the  taxpayer's  net  income,  net loss, or Article 2 credits
                            -35-              LRB9000732KDcbA
 1    base income for the taxable year after giving effect  to  the
 2    item or items reflected in the reported alteration.
 3        (f)  Extension by agreement. Where, before the expiration
 4    of  the time prescribed in this section for the issuance of a
 5    notice of deficiency, both the Department  and  the  taxpayer
 6    shall  have  consented  in writing to its issuance after such
 7    time, such notice may be issued at  any  time  prior  to  the
 8    expiration  of  the  period agreed upon. The period so agreed
 9    upon may be extended by subsequent agreements in writing made
10    before the expiration of the period previously agreed upon.
11        (g)  Erroneous refunds. In any case in  which  there  has
12    been  an  erroneous  refund  of tax payable under this Act, a
13    notice of deficiency may be issued at any time within 2 years
14    from the making of such refund, or within 5  years  from  the
15    making  of  such  refund  if  it appears that any part of the
16    refund was induced by fraud or  the  misrepresentation  of  a
17    material  fact,  provided,  however,  that  the amount of any
18    proposed assessment set forth in such notice shall be limited
19    to the amount of such erroneous refund.
20        Beginning July 1, 1993, in any case in  which  there  has
21    been a refund of tax payable under this Act attributable to a
22    net  loss  carryback as provided for in Section 207, and that
23    refund is subsequently determined to be an  erroneous  refund
24    due  to  a  reduction in the amount of the net loss which was
25    originally carried back,  a  notice  of  deficiency  for  the
26    erroneous  refund amount may be issued at any time during the
27    same time period in which  a  notice  of  deficiency  can  be
28    issued  on  the  loss  year creating the carryback amount and
29    subsequent erroneous  refund.  The  amount  of  any  proposed
30    assessment  set  forth  in the notice shall be limited to the
31    amount of such erroneous refund.
32        (h)  Time return  deemed  filed.  For  purposes  of  this
33    Section  a tax return filed before the last day prescribed by
34    law (including any extension thereof) shall be deemed to have
                            -36-              LRB9000732KDcbA
 1    been filed on such last day.
 2        (i)  Request for prompt determination of  liability.  For
 3    purposes  of  Subsection  (a)(1), in the case of a tax return
 4    required under this Act in respect of a decedent, or  by  his
 5    estate   during   the  period  of  administration,  or  by  a
 6    corporation, the period referred to in such Subsection  shall
 7    be 18 months after a written request for prompt determination
 8    of  liability  is filed with the Department (at such time and
 9    in  such  form  and  manner  as  the  Department   shall   by
10    regulations  prescribe)  by  the  executor, administrator, or
11    other fiduciary representing the estate of such decedent,  or
12    by such corporation, but not more than 3 years after the date
13    the  return was filed. This Subsection shall not apply in the
14    case of a corporation unless:
15             (1) (A)  Such   written   request    notifies    the
16        Department  that the corporation contemplates dissolution
17        at or before the expiration of such 18-month period,  (B)
18        the  dissolution  is  begun  in  good  faith  before  the
19        expiration   of   such   18-month  period,  and  (C)  the
20        dissolution is completed;
21             (2) (A)  Such   written   request    notifies    the
22        Department  that  a  dissolution  has  in good faith been
23        begun, and (B) the dissolution is completed; or
24             (3)  A dissolution has been completed  at  the  time
25        such written request is made.
26        (j)  Withholding  tax.  In  the  case of returns required
27    under Article 7 of this Act  (with  respect  to  any  amounts
28    withheld as tax or any amounts required to have been withheld
29    as tax) a notice of deficiency shall be issued not later than
30    3  years  after  the  15th day of the 4th month following the
31    close of the calendar year  in  which  such  withholding  was
32    required.
33        (k)  Penalties  for  failure to make information reports.
34    A  notice  of  deficiency  for  the  penalties  provided   by
                            -37-              LRB9000732KDcbA
 1    Subsection  1405.1(c) of this Act may not be issued more than
 2    3 years after the due date of the  reports  with  respect  to
 3    which the penalties are asserted.
 4        (l)  Penalty  for failure to file withholding returns.  A
 5    notice of deficiency for penalties provided by  Section  1004
 6    of  this  Act  for  taxpayer's  failure  to  file withholding
 7    returns may not be issued more than  three  years  after  the
 8    15th day of the 4th month following the close of the calendar
 9    year  in  which  the  withholding  giving  rise to taxpayer's
10    obligation to file those returns occurred.
11        (m)  Transferee liability. A notice of deficiency may  be
12    issued to a transferee relative to a liability asserted under
13    Section 1405 during time periods defined as follows:
14             1)  Initial   Transferee.    In   the  case  of  the
15        liability of an initial transferee, up to 2  years  after
16        the expiration of the period of limitation for assessment
17        against the transferor, except that if a court proceeding
18        for  review  of the assessment against the transferor has
19        begun, then up  to  2  years  after  the  return  of  the
20        certified copy of the judgment in the court proceeding.
21             2)  Transferee  of  Transferee.   In the case of the
22        liability of a  transferee,  up  to  2  years  after  the
23        expiration  of  the  period  of limitation for assessment
24        against the preceding transferee, but  not  more  than  3
25        years  after  the  expiration of the period of limitation
26        for assessment against  the  initial  transferor;  except
27        that   if,   before  the  expiration  of  the  period  of
28        limitation for the assessment of  the  liability  of  the
29        transferee,  a court proceeding for the collection of the
30        tax or  liability  in  respect  thereof  has  been  begun
31        against  the  initial  transferor  or  the last preceding
32        transferee, as the  case  may  be,  then  the  period  of
33        limitation   for  assessment  of  the  liability  of  the
34        transferee shall expire 2 years after the return  of  the
                            -38-              LRB9000732KDcbA
 1        certified copy of the judgment in the court proceeding.
 2    (Source: P.A. 88-195.)
 3        (35 ILCS 5/911) (from Ch. 120, par. 9-911)
 4        Sec.  911.  Limitations  on  Claims  for  Refund.  (a) In
 5    general. Except as otherwise provided in this Act:
 6        (1)  A claim for refund shall be filed not later  than  3
 7    years  after  the  date  the return was filed (in the case of
 8    returns required under Article 7 of this Act  respecting  any
 9    amounts  withheld  as  tax,  not later than 3 years after the
10    15th day of the 4th month following the close of the calendar
11    year in which such withholding was made), or one  year  after
12    the date the tax was paid, whichever is the later; and
13        (2)  No  credit  or  refund shall be allowed or made with
14    respect to the year for which the claim was filed unless such
15    claim is filed within such period.
16        (b)  Federal changes.  (1) In general.  In any case where
17    notification of an alteration is required by Section 506 (b),
18    a claim for refund may be filed within 2 years after the date
19    on which such notification was  due  (regardless  of  whether
20    such  notice  was given), but the amount recoverable pursuant
21    to a claim filed under this Section shall be limited  to  the
22    amount  of  any  overpayment  resulting  under  this Act from
23    recomputation of the taxpayer's  net  income,  net  loss,  or
24    Article  2  credits  base  income  for the taxable year after
25    giving  effect  to  the  item  or  items  reflected  in   the
26    alteration required to be reported.
27        (2)  Tentative  carryback adjustments paid before January
28    1, 1974. If, as the result of the payment before  January  1,
29    1974   of   a   federal  tentative  carryback  adjustment,  a
30    notification of an alteration is required under  Section  506
31    (b),  a  claim  for  refund  may  be filed at any time before
32    January 1, 1976, but the amount  recoverable  pursuant  to  a
33    claim filed under this Section shall be limited to the amount
                            -39-              LRB9000732KDcbA
 1    of   any   overpayment   resulting   under   this   Act  from
 2    recomputation of the taxpayer's base income for  the  taxable
 3    year  after giving effect to the federal alteration resulting
 4    from the tentative carryback adjustment irrespective  of  any
 5    limitation imposed in paragraph (l) of this subsection.
 6        (c)  Extension   by   agreement.    Where,   before   the
 7    expiration  of  the  time  prescribed in this section for the
 8    filing of a claim for refund, both  the  Department  and  the
 9    claimant  shall have consented in writing to its filing after
10    such time, such claim may be filed at any time prior  to  the
11    expiration  of  the period agreed upon.  The period so agreed
12    upon may be extended by subsequent agreements in writing made
13    before the expiration of the period previously agreed upon.
14        (d)  Limit on amount of credit or refund.
15        (1)  Limit where claim filed within  3-year  period.   If
16    the  claim was filed by the claimant during the 3-year period
17    prescribed in subsection (a), the amount  of  the  credit  or
18    refund  shall  not  exceed the portion of the tax paid within
19    the period, immediately preceding the filing  of  the  claim,
20    equal to 3 years plus the period of any extension of time for
21    filing the return.
22        (2)  Limit  where  claim  not filed within 3-year period.
23    If the claim was not filed within  such  3-year  period,  the
24    amount  of  the credit or refund shall not exceed the portion
25    of the tax paid during the one year immediately preceding the
26    filing of the claim.
27        (e)  Time return deemed  filed.   For  purposes  of  this
28    section  a tax return filed before the last day prescribed by
29    law for the filing of such return (including  any  extensions
30    thereof) shall be deemed to have been filed on such last day.
31        (f)  No claim for refund based on the taxpayer's taking a
32    credit  for estimated tax payments as provided by Section 601
33    (b) (2) or for any amount paid  by  a  taxpayer  pursuant  to
34    Section  602(a)  or for any amount of credit for tax withheld
                            -40-              LRB9000732KDcbA
 1    pursuant to Section 701 may be filed more than 3 years  after
 2    the due date, as provided by Section 505, of the return which
 3    was  required  to  be  filed relative to the taxable year for
 4    which the payments  were  made  or  for  which  the  tax  was
 5    withheld.  The  changes  in  this subsection (f) made by this
 6    amendatory Act of 1987  shall  apply  to  all  taxable  years
 7    ending on or after December 31, 1969.
 8        (g)  Special  Period  of  Limitation  with Respect to Net
 9    Loss Carrybacks.  If the  claim  for  refund  relates  to  an
10    overpayment  attributable to a net loss carryback as provided
11    by Section 207, in lieu of the 3 year  period  of  limitation
12    prescribed in subsection (a), the period shall be that period
13    which  ends  3  years  after  the  time prescribed by law for
14    filing the return  (including  extensions  thereof)  for  the
15    taxable year of the net loss which results in such carryback,
16    or the period prescribed in subsection (c) in respect of such
17    taxable year, whichever expires later.  In the case of such a
18    claim, the amount of the refund may exceed the portion of the
19    tax  paid within the period provided in subsection (d) to the
20    extent of the amount of the overpayment attributable to  such
21    carryback.
22    (Source: P.A. 86-905.)
23        (35 ILCS 5/1501) (from Ch. 120, par. 15-1501)
24        Sec. 1501.  Definitions.
25        (a)  In  general.  When  used  in  this  Act,  where  not
26    otherwise  distinctly  expressed  or  manifestly incompatible
27    with the intent thereof:
28             (1)  Business income.  The  term  "business  income"
29        means  income  arising  from transactions and activity in
30        the regular course of the taxpayer's trade  or  business,
31        net  of  the  deductions  allocable thereto, and includes
32        income from  tangible  and  intangible  property  if  the
33        acquisition,  management, and disposition of the property
                            -41-              LRB9000732KDcbA
 1        constitute integral parts of the taxpayer's regular trade
 2        or  business  operations.  Such  term  does  not  include
 3        compensation or the deductions allocable thereto.
 4             (2)  Commercial  domicile.  The   term   "commercial
 5        domicile"  means the principal place from which the trade
 6        or business of the taxpayer is directed or managed.
 7             (3)  Compensation.  The  term  "compensation"  means
 8        wages,  salaries,  commissions  and  any  other  form  of
 9        remuneration paid to employees for personal services.
10             (4)  Corporation. The  term  "corporation"  includes
11        associations,  joint-stock companies, insurance companies
12        and  cooperatives.  Any  entity,  including   a   limited
13        liability  company  formed  under  the  Illinois  Limited
14        Liability  Company Act, shall be treated as a corporation
15        if it is so classified for federal income tax purposes.
16             (5)  Department. The  term  "Department"  means  the
17        Department of Revenue of this State.
18             (6)  Director.   The   term   "Director"  means  the
19        Director of Revenue of this State.
20             (7)  Fiduciary.  The  term   "fiduciary"   means   a
21        guardian,  trustee, executor, administrator, receiver, or
22        any person acting  in  any  fiduciary  capacity  for  any
23        person.
24             (8)  Financial  organization.  The  term  "financial
25        organization" means any bank, bank holding company, trust
26        company,  savings  bank, industrial bank, land bank, safe
27        deposit  company,  private  banker,  savings   and   loan
28        association, building and loan association, credit union,
29        currency  exchange, cooperative bank, small loan company,
30        sales finance company, investment company, or any  person
31        which  is  owned  by a bank or bank holding company.  For
32        the purpose of this Section a "person" will include  only
33        those  persons  which  a bank holding company may acquire
34        and hold an interest in, directly  or  indirectly,  under
                            -42-              LRB9000732KDcbA
 1        the  provisions  of  the Bank Holding Company Act of 1956
 2        (12 U.S.C. 1841, et seq.), except where interests in  any
 3        person  must  be disposed of within certain required time
 4        limits under the Bank Holding Company Act of 1956.
 5             (9)  Fiscal year. The term "fiscal  year"  means  an
 6        accounting  period of 12 months ending on the last day of
 7        any month other than December.
 8             (10)  Includes and including. The  terms  "includes"
 9        and  "including"  when  used in a definition contained in
10        this Act shall not be  deemed  to  exclude  other  things
11        otherwise within the meaning of the term defined.
12             (11)  Internal  Revenue  Code.  The  term  "Internal
13        Revenue  Code"  means  the United States Internal Revenue
14        Code of 1954 or any successor law  or  laws  relating  to
15        federal income taxes in effect for the taxable year.
16             (12)  Mathematical  error.  The  term  "mathematical
17        error" includes the following types of errors, omissions,
18        or defects in a return filed by a taxpayer which prevents
19        acceptance of the return as filed for processing:
20                  (A)  arithmetic     errors     or     incorrect
21             computations on the return or supporting schedules;
22                  (B)  entries on the wrong lines;
23                  (C)  omission  of  required supporting forms or
24             schedules or the  omission  of  the  information  in
25             whole or in part called for thereon; and
26                  (D)  an  attempt  to claim, exclude, deduct, or
27             improperly report, in a manner directly contrary  to
28             the provisions of the Act and regulations thereunder
29             any item of income, exemption, deduction, or credit.
30             (13)  Nonbusiness   income.  The  term  "nonbusiness
31        income" means all income other than  business  income  or
32        compensation.
33             (14)  Nonresident.  The  term  "nonresident" means a
34        person who is not a resident.
                            -43-              LRB9000732KDcbA
 1             (15)  Paid, incurred and accrued. The terms  "paid",
 2        "incurred"  and "accrued" shall be construed according to
 3        the method of accounting upon  the  basis  of  which  the
 4        person's base income is computed under this Act.
 5             (16)  Partnership     and    partner.    The    term
 6        "partnership" includes a syndicate,  group,  pool,  joint
 7        venture  or other unincorporated organization, through or
 8        by means of which any business, financial  operation,  or
 9        venture  is  carried  on,  and  which  is not, within the
10        meaning of this Act, a trust or estate or a  corporation;
11        and   the  term  "partner"  includes  a  member  in  such
12        syndicate, group, pool, joint venture or organization.
13             Any entity, including a  limited  liability  company
14        formed  under the Illinois Limited Liability Company Act,
15        shall be treated as a partnership if it is so  classified
16        for federal income tax purposes.
17             For purposes of the tax imposed at subsection (c) of
18        Section  201 of this Act, the term "partnership" does not
19        include a syndicate, group, pool, joint venture or  other
20        unincorporated  organization  established  for  the  sole
21        purpose of playing the Illinois State Lottery.
22             (17)  Part-year   resident.   The   term  "part-year
23        resident" means  an  individual  who  became  a  resident
24        during the taxable year or ceased to be a resident during
25        the  taxable  year.  Under  Section 1501 (a) (20) (A) (i)
26        residence commences with presence in this State for other
27        than a temporary or transitory purpose  and  ceases  with
28        absence  from  this  State  for other than a temporary or
29        transitory purpose. Under Section 1501 (a) (20) (A)  (ii)
30        residence commences with the establishment of domicile in
31        this  State and ceases with the establishment of domicile
32        in another State.
33             (18)  Person. The term "person" shall  be  construed
34        to  mean  and  include  an  individual,  a trust, estate,
                            -44-              LRB9000732KDcbA
 1        partnership,  association,  firm,  company,  corporation,
 2        limited liability company, or fiduciary. For purposes  of
 3        Section  1301  and 1302 of this Act, a "person" means (i)
 4        an individual, (ii)  a  corporation,  (iii)  an  officer,
 5        agent, or employee of a corporation, (iv) a member, agent
 6        or  employee  of a partnership, or (v) a member, manager,
 7        employee,  officer,  director,  or  agent  of  a  limited
 8        liability company who in such capacity commits an offense
 9        specified in Section 1301 and 1302.
10             (18A)  Records.  The  term  "records"  includes  all
11        data  maintained  by  the  taxpayer,  whether  on  paper,
12        microfilm,  microfiche,  or  any type of machine-sensible
13        data compilation.
14             (19)  Regulations. The term  "regulations"  includes
15        rules promulgated and forms prescribed by the Department.
16             (20)  Resident. The term "resident" means:
17                  (A)  an individual (i) who is in this State for
18             other  than a temporary or transitory purpose during
19             the taxable year; or (ii) who is domiciled  in  this
20             State  but  is absent from the State for a temporary
21             or transitory purpose during the taxable year; and
22                  (B)  The estate of a decedent who at his or her
23             death was domiciled in this State. ;
24                  (C)  A trust created by a will  of  a  decedent
25             who at his death was domiciled in this State; and
26                  (D)  An irrevocable trust, the grantor of which
27             was  domiciled  in this State at the time such trust
28             became   irrevocable.   For    purpose    of    this
29             subparagraph,    a   trust   shall   be   considered
30             irrevocable to the extent that the  grantor  is  not
31             treated  as  the  owner  thereof  under Sections 671
32             through 678 of the Internal Revenue Code.
33             (21)  Sales.  The  term  "sales"  means  all   gross
34        receipts  of  the  taxpayer  not allocated under Sections
                            -45-              LRB9000732KDcbA
 1        301, 302 and 303.
 2             (22)  State. The term  "state"  when  applied  to  a
 3        jurisdiction other than this State means any state of the
 4        United States, the District of Columbia, the Commonwealth
 5        of Puerto Rico, any Territory or Possession of the United
 6        States,   and  any  foreign  country,  or  any  political
 7        subdivision of any of the foregoing.  For purposes of the
 8        foreign tax credit under Section 601,  the  term  "state"
 9        means  any  state  of  the United States, the District of
10        Columbia,  the  Commonwealth  of  Puerto  Rico,  and  any
11        territory or possession of  the  United  States,  or  any
12        political  subdivision of any of the foregoing, effective
13        for tax years ending on or after December 31, 1989.
14             (23)  Taxable year. The term  "taxable  year"  means
15        the  calendar year, or the fiscal year ending during such
16        calendar year, upon the basis of which the base income is
17        computed under this Act. "Taxable  year"  means,  in  the
18        case  of  a  return  made for a fractional part of a year
19        under the provisions of this Act, the  period  for  which
20        such return is made.
21             (24)  Taxpayer. The term "taxpayer" means any person
22        subject to the tax imposed by this Act.
23             (25)  International   banking  facility.   The  term
24        international  banking  facility  shall  have  the   same
25        meaning as is set forth in the Illinois Banking Act or as
26        is  set  forth  in  the  laws  of  the  United  States or
27        regulations of the Board  of  Governors  of  the  Federal
28        Reserve System.
29             (26)  Income Tax Return Preparer.
30                  (A)  The  term  "income  tax  return  preparer"
31             means  any  person who prepares for compensation, or
32             who employs one  or  more  persons  to  prepare  for
33             compensation,  any return of tax imposed by this Act
34             or any claim for refund of tax imposed by this  Act.
                            -46-              LRB9000732KDcbA
 1             The preparation of a substantial portion of a return
 2             or   claim  for  refund  shall  be  treated  as  the
 3             preparation of that return or claim for refund.
 4                  (B)  A person  is  not  an  income  tax  return
 5             preparer if all he or she does is
 6                       (i)  furnish typing, reproducing, or other
 7                  mechanical assistance;
 8                       (ii)  prepare   returns   or   claims  for
 9                  refunds for the employer by whom he or  she  is
10                  regularly and continuously employed;
11                       (iii)  prepare  as  a fiduciary returns or
12                  claims for refunds for any person; or
13                       (iv)  prepare claims  for  refunds  for  a
14                  taxpayer   in   response   to   any  notice  of
15                  deficiency  issued  to  that  taxpayer  or   in
16                  response to any waiver of restriction after the
17                  commencement of an audit of that taxpayer or of
18                  another  taxpayer  if  a  determination  in the
19                  audit  of  the  other  taxpayer   directly   or
20                  indirectly  affects  the  tax  liability of the
21                  taxpayer whose claims he or she is preparing.
22             (27)  Unitary business  group.   The  term  "unitary
23        business  group" means a group of persons related through
24        common ownership whose business activities are integrated
25        with, dependent upon and contribute to each  other.   The
26        group  will  not  include  those  members  whose business
27        activity outside the United States is 80% or more of  any
28        such  member's  total  business activity; for purposes of
29        this paragraph and clause (a) (3)  (B)  (ii)  of  Section
30        304,  business activity within the United States shall be
31        measured by means of the  factors  ordinarily  applicable
32        under  subsections  (a), (b), (c), and (d) of Section 304
33        except that, in the case of members  ordinarily  required
34        to  apportion  business  income  by means of the 3 factor
                            -47-              LRB9000732KDcbA
 1        formula of  property,  payroll  and  sales  specified  in
 2        subsection (a) of Section 304, such members shall not use
 3        the  sales  factor  in the computation and the results of
 4        the property and payroll  factor  computations  shall  be
 5        divided  by  2  (by one if either the property or payroll
 6        factor  has  a  denominator  of  zero).  The  computation
 7        required by the preceding sentence shall, in  each  case,
 8        involve  the  division of the member's property, payroll,
 9        or revenue miles in the United States, insurance premiums
10        on property or risk in the United  States,  or  financial
11        organization  business  income  from  sources  within the
12        United States, as the case  may  be,  by  the  respective
13        worldwide  figures  for  such items.  Common ownership in
14        the case  of  corporations  is  the  direct  or  indirect
15        control  or ownership of more than 50% of the outstanding
16        voting stock of the persons carrying on unitary  business
17        activity.   Unitary  business  activity can ordinarily be
18        illustrated where the activities of the members are:  (1)
19        in  the  same  general  line  (such   as   manufacturing,
20        wholesaling,  retailing  of  tangible  personal property,
21        insurance, transportation or finance); or (2)  are  steps
22        in a vertically structured enterprise or process (such as
23        the   steps   involved   in  the  production  of  natural
24        resources,  which  might  include  exploration,   mining,
25        refining,  and  marketing);  and, in either instance, the
26        members are functionally integrated through the  exercise
27        of  strong  centralized  management  (where, for example,
28        authority over such matters as purchasing, financing, tax
29        compliance,  product  line,  personnel,   marketing   and
30        capital  investment  is  not  left to each member). In no
31        event, however, will any unitary business  group  include
32        members   which  are  ordinarily  required  to  apportion
33        business income under different  subsections  of  Section
34        304 except that for tax years ending on or after December
                            -48-              LRB9000732KDcbA
 1        31,  1987  this  prohibition shall not apply to a unitary
 2        business group composed of one or more taxpayers  all  of
 3        which  apportion  business  income pursuant to subsection
 4        (b) of Section 304, or all of  which  apportion  business
 5        income  pursuant  to subsection (d) of Section 304, and a
 6        holding company  of  such  single-factor  taxpayers  (see
 7        definition of "financial organization" for rule regarding
 8        holding  companies  of  financial  organizations).   If a
 9        unitary business  group  would,  but  for  the  preceding
10        sentence, include members that are ordinarily required to
11        apportion  business income under different subsections of
12        Section 304, then for each subsection of Section 304  for
13        which  there  are  two  or more members, there shall be a
14        separate unitary business group composed of such members.
15        For purposes of the preceding two sentences, a member  is
16        "ordinarily  required to apportion business income" under
17        a particular subsection of Section 304  if  it  would  be
18        required  to  use  the apportionment method prescribed by
19        such subsection except  for  the  fact  that  it  derives
20        business income solely from Illinois.
21             (28)  Subchapter    S    corporation.     The   term
22        "Subchapter S corporation" means a corporation for  which
23        there  is in effect an election under Section 1362 of the
24        Internal Revenue Code, or for which there  is  a  federal
25        election to opt out of the provisions of the Subchapter S
26        Revision  Act  of 1982 and have applied instead the prior
27        federal Subchapter S rules as in effect on July 1, 1982.
28        (b)  Other definitions.
29             (1)  Words denoting number, gender,  and  so  forth,
30        when  used  in  this  Act, where not otherwise distinctly
31        expressed or  manifestly  incompatible  with  the  intent
32        thereof:
33                  (A)  Words  importing  the singular include and
34             apply to several persons, parties or things;
                            -49-              LRB9000732KDcbA
 1                  (B)  Words importing  the  plural  include  the
 2             singular; and
 3                  (C)  Words   importing   the  masculine  gender
 4             include the feminine as well.
 5             (2)  "Company"   or   "association"   as   including
 6        successors   and   assigns.   The   word   "company"   or
 7        "association", when used in reference to  a  corporation,
 8        shall  be  deemed  to  embrace  the words "successors and
 9        assigns of such company  or  association",  and  in  like
10        manner  as if these last-named words, or words of similar
11        import, were expressed.
12             (3)  Other terms. Any term used in  any  Section  of
13        this  Act  with  respect  to  the  application  of, or in
14        connection with, the provisions of any other  Section  of
15        this  Act  shall  have  the same meaning as in such other
16        Section.
17    (Source: P.A. 88-480; 89-399, eff. 8-20-95.)
18        Section 20.  The Use  Tax  Act  is  amended  by  changing
19    Section 20 as follows:
20        (35 ILCS 105/20) (from Ch. 120, par. 439.20)
21        Sec.  20. As soon as practicable after a claim for credit
22    or refund is filed, the Department shall examine the same and
23    determine the  amount  of  credit  or  refund  to  which  the
24    claimant or the claimant's legal representative, in the event
25    that  the  claimant  shall have died or become a person under
26    legal disability, is entitled and shall,  by  its  Notice  of
27    Tentative  Determination of Claim, notify the claimant or his
28    or her legal  representative  of  such  determination,  which
29    determination  shall  be  prima  facie correct. Proof of such
30    determination by the Department may be made  at  any  hearing
31    before  the  Department  or  in  any  legal  proceeding  by a
32    reproduced copy of the Department's record relating  thereto,
                            -50-              LRB9000732KDcbA
 1    in  the  name  of the Department under the certificate of the
 2    Director of Revenue.  Such  reproduced  copy  shall,  without
 3    further   proof,   be   admitted  into  evidence  before  the
 4    Department or in any legal  proceeding  and  shall  be  prima
 5    facie   proof   of   the   correctness  of  the  Department's
 6    determination, as shown therein. If  such  claimant,  or  the
 7    legal representative of a deceased claimant or a claimant who
 8    is  a  person under legal disability shall, within 60 20 days
 9    after the Department's Notice of Tentative  Determination  of
10    Claim,  file a protest thereto and request a hearing thereon,
11    the Department shall give notice to  such  claimant,  or  the
12    legal  representative  of  a deceased claimant, or a claimant
13    who is a person under legal disability of the time and  place
14    fixed   for  such  hearing,  and  shall  hold  a  hearing  in
15    conformity with the provisions  of  this  Act,  and  pursuant
16    thereto shall issue its Final Determination of the amount, if
17    any,  found  to  be  due as a result of such hearing, to such
18    claimant, or the legal representative of a deceased  claimant
19    or a claimant who is a person under legal disability.
20        If  a  protest  to  the  Department's Notice of Tentative
21    Determination of Claim is not filed within 60 20 days  and  a
22    request for a hearing thereon is not made as provided herein,
23    the said Notice shall thereupon become and operate as a Final
24    Determination;  and,  if the Department's Notice of Tentative
25    Determination, upon becoming a Final Determination, indicates
26    no amount due to the claimant, or, upon issuance of a  credit
27    or  refund for the amount, if any, found by the Department to
28    be due, the claim in all its aspects shall be closed  and  no
29    longer  open  to protest, hearing, judicial review, or by any
30    other  proceeding  or  action  whatever,  either  before  the
31    Department or in any court of this State. Claims  for  credit
32    or   refund  hereunder  must  be  filed  with  and  initially
33    determined by the  Department,  the  remedy  herein  provided
34    being  exclusive;  and  no  court  shall have jurisdiction to
                            -51-              LRB9000732KDcbA
 1    determine the merits of  any  claim  except  upon  review  as
 2    provided in this Act.
 3    (Source: P.A. 83-706.)
 4        Section  25.  The  Service  Use  Tax  Act  is  amended by
 5    changing Section 18 as follows:
 6        (35 ILCS 110/18) (from Ch. 120, par. 439.48)
 7        Sec. 18. As soon as practicable after a claim for  credit
 8    or refund is filed, the Department shall examine the same and
 9    determine  the  amount  of  credit  or  refund  to  which the
10    claimant or the claimant's legal representative, in the event
11    that the claimant shall have died or become  a  person  under
12    legal  disability,  is  entitled  and shall, by its Notice of
13    Tentative Determination of Claim, notify the claimant or  his
14    legal    representative    of   such   determination,   which
15    determination shall be prima facie  correct.  Proof  of  such
16    determination  by  the  Department may be made at any hearing
17    before the  Department  or  in  any  legal  proceeding  by  a
18    reproduced  copy of the Department's record relating thereto,
19    in the name of the Department under the  certificate  of  the
20    Director  of  Revenue.  Such  reproduced  copy shall, without
21    further  proof,  be  admitted  into   evidence   before   the
22    Department  or  in  any  legal  proceeding and shall be prima
23    facie  proof  of  the   correctness   of   the   Department's
24    determination,  as  shown  therein.  If such claimant, or the
25    legal representative of a deceased claimant or a claimant who
26    is a person under legal disability, shall, within 60 20  days
27    after  the  Department's Notice of Tentative Determination of
28    Claim, file a protest thereto and request a hearing  thereon,
29    the  Department  shall  give  notice to such claimant, or the
30    legal representative of a deceased claimant or  claimant  who
31    is  a  person  under  legal disability, of the time and place
32    fixed  for  such  hearing,  and  shall  hold  a  hearing   in
                            -52-              LRB9000732KDcbA
 1    conformity  with  the  provisions  of  this Act, and pursuant
 2    thereto shall issue its Final Determination of the amount, if
 3    any, found to be due as a result of  such  hearing,  to  such
 4    claimant,  or  the  legal  representative  of  a  deceased or
 5    incompetent claimant.
 6        If a protest to  the  Department's  Notice  of  Tentative
 7    Determination  of  Claim is not filed within 60 20 days and a
 8    request for a hearing thereon is not made as provided herein,
 9    the Notice shall thereupon become  and  operate  as  a  Final
10    Determination;  and,  if the Department's Notice of Tentative
11    Determination upon becoming a Final Determination,  indicates
12    no  amount due to the claimant, or, upon issuance of a credit
13    or refund for the amount, if any, found by the Department  to
14    be  due,  the claim in all its aspects shall be closed and no
15    longer open to protest, hearing, judicial review, or  by  any
16    other  proceeding  or  action  whatever,  either  before  the
17    Department  or  in any court of this State. Claims for credit
18    or  refund  hereunder  must  be  filed  with  and   initially
19    determined  by  the  Department,  the  remedy herein provided
20    being exclusive; and no  court  shall  have  jurisdiction  to
21    determine  the  merits  of  any  claim  except upon review as
22    provided in this Act.
23    (Source: P.A. 83-706.)
24        Section 30.  The Service Occupation Tax Act is amended by
25    changing Section 18 as follows:
26        (35 ILCS 115/18) (from Ch. 120, par. 439.118)
27        Sec. 18. As soon as practicable after a claim for  credit
28    or refund is filed, the Department shall examine the same and
29    determine  the  amount  of  credit  or  refund  to  which the
30    claimant or the claimant's legal representative, in the event
31    that the claimant shall have died or become  a  person  under
32    legal  disability,  is  entitled  and shall, by its Notice of
                            -53-              LRB9000732KDcbA
 1    Tentative Determination of Claim, notify the claimant or  his
 2    or  her  legal  representative  of  such determination, which
 3    determination shall be prima facie  correct.  Proof  of  such
 4    determination  by  the  Department may be made at any hearing
 5    before the  Department  or  in  any  legal  proceeding  by  a
 6    reproduced  copy of the Department's record relating thereto,
 7    in the name of the Department under the  certificate  of  the
 8    Director  of  Revenue.  Such  reproduced  copy shall, without
 9    further  proof,  be  admitted  into   evidence   before   the
10    Department  or  in  any  legal  proceeding and shall be prima
11    facie  proof  of  the   correctness   of   the   Department's
12    determination,  as  shown  therein.  If such claimant, or the
13    legal representative of a deceased claimant or a claimant who
14    is under legal disability shall, within 60 20 days after  the
15    Department's Notice of Tentative Determination of Claim, file
16    a   protest  thereto  and  request  a  hearing  thereon,  the
17    Department shall give notice to such claimant, or  the  legal
18    representative  of  a  deceased claimant or a claimant who is
19    under legal disability, of the time and place fixed for  such
20    hearing,  and  shall  hold  a  hearing in conformity with the
21    provisions of this Act, and pursuant thereto shall issue  its
22    Final Determination of the amount, if any, found to be due as
23    a  result  of  such  hearing,  to such claimant, or the legal
24    representative of a deceased claimant or a  claimant  who  is
25    under legal disability.
26        If  a  protest  to  the  Department's Notice of Tentative
27    Determination of Claim is not filed within 60 20 days  and  a
28    request for a hearing thereon is not made as provided herein,
29    the  Notice  shall  thereupon  become  and operate as a Final
30    Determination; and, if the Department's Notice  of  Tentative
31    Determination, upon becoming a Final Determination, indicates
32    no  amount due to the claimant, or, upon issuance of a credit
33    or refund for the amount, if any, found by the Department  to
34    be  due,  the claim in all its aspects shall be closed and no
                            -54-              LRB9000732KDcbA
 1    longer open to protest, hearing, judicial review, or  by  any
 2    other  proceeding  or  action  whatever,  either  before  the
 3    Department  or  in any court of this State. Claims for credit
 4    or  refund  hereunder  must  be  filed  with  and   initially
 5    determined  by  the  Department,  the  remedy herein provided
 6    being exclusive; and no  court  shall  have  jurisdiction  to
 7    determine  the  merits  of  any  claim  except upon review as
 8    provided in this Act.
 9    (Source: P.A. 83-706.)
10        Section 35.  The Retailers' Occupation Tax Act is amended
11    by changing Sections 2a and 6c as follows:
12        (35 ILCS 120/2a) (from Ch. 120, par. 441a)
13        Sec. 2a.  It is unlawful for any person to engage in  the
14    business  of  selling tangible personal property at retail in
15    this State without a certificate  of  registration  from  the
16    Department.  Application  for  a  certificate of registration
17    shall be made to the Department upon forms furnished  by  it.
18    Each  such application shall be signed and verified and shall
19    state: (1)  The  name  and  social  security  number  of  the
20    applicant;   (2)  the  address  of  his  principal  place  of
21    business; (3) 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 and  the  addresses
24    of  all  other  places  of business, if any (enumerating such
25    addresses, if any, in a separate list attached to and made  a
26    part  of  the  application),  from  which  he  engages in the
27    business of selling tangible personal property at  retail  in
28    this  State,  and  (4)  the name and address of the person or
29    persons who  will  be  responsible  for  filing  returns  and
30    payment  of  taxes  due  under this Act, (5) in the case of a
31    corporation, the name, title, and social security  number  of
32    each  corporate  officer,  (6)  in  the  case  of  a  limited
                            -55-              LRB9000732KDcbA
 1    liability company, the name, social security number, and FEIN
 2    number  of  each  manager  and  member,  and  (7)  such other
 3    information as the Department may  reasonably  require.   The
 4    application  shall  contain  an  acceptance of responsibility
 5    signed by the person or persons who will be  responsible  for
 6    filing  returns  and payment of the taxes due under this Act.
 7    If the applicant will  sell  tangible  personal  property  at
 8    retail  through vending machines, his application to register
 9    shall indicate the  number  of  vending  machines  to  be  so
10    operated;  and  thereafter, he shall notify the Department by
11    January 31 of the  number  of  vending  machines  which  such
12    person was using in his business of selling tangible personal
13    property at retail on the preceding December 31.
14        The  Department may deny a certificate of registration to
15    any applicant if the  owner,  any  partner,  any  manager  or
16    member of a limited liability company, or a corporate officer
17    of  the  applicant,  is  or  has been the owner, a partner, a
18    manager or member  of  a  limited  liability  company,  or  a
19    corporate officer, of another retailer that is in default for
20    moneys due under this Act.
21        Every   applicant   for  a  certificate  of  registration
22    hereunder shall, at the  time  of  filing  such  application,
23    furnish  a  bond  from  a  surety  company  authorized  to do
24    business in the State of Illinois,  or  an  irrevocable  bank
25    letter  of credit or a bond signed by 2 personal sureties who
26    have filed, with the Department, sworn statements  disclosing
27    net  assets  equal to at least 3 times the amount of the bond
28    to be required of such applicant, or a  bond  secured  by  an
29    assignment  of  a  bank  account  or  certificate of deposit,
30    stocks or bonds, conditioned upon the applicant paying to the
31    State of Illinois all moneys becoming due under this Act  and
32    under  any  other  State  tax  law or municipal or county tax
33    ordinance  or  resolution  under  which  the  certificate  of
34    registration that is issued to the applicant under  this  Act
                            -56-              LRB9000732KDcbA
 1    will  permit  the  applicant  to  engage  in business without
 2    registering separately under such  other  law,  ordinance  or
 3    resolution.  The  Department  shall  fix  the  amount of such
 4    security in each case, taking into consideration  the  amount
 5    of money expected to become due from the applicant under this
 6    Act  and under any other State tax law or municipal or county
 7    tax ordinance or resolution under which  the  certificate  of
 8    registration  that  is issued to the applicant under this Act
 9    will permit the  applicant  to  engage  in  business  without
10    registering  separately  under  such  other law, ordinance or
11    resolution. The amount of security required by the Department
12    shall be such as, in its opinion, will protect the  State  of
13    Illinois  against  failure to pay the amount which may become
14    due from the applicant under this Act  and  under  any  other
15    State  tax  law  or  municipal  or  county  tax  ordinance or
16    resolution under which the certificate of  registration  that
17    is  issued  to  the  applicant under this Act will permit the
18    applicant  to  engage   in   business   without   registering
19    separately under such other law, ordinance or resolution, but
20    the  amount  of the security required by the Department shall
21    not exceed three times the amount of the applicant's  average
22    monthly  tax  liability,  or  $50,000.00, whichever amount is
23    lower.
24        No certificate of registration under this  Act  shall  be
25    issued  by  the  Department  until the applicant provides the
26    Department with satisfactory security as herein provided for.
27        Upon  receipt  of  the  application  for  certificate  of
28    registration  in  proper  form,  and  upon  approval  by  the
29    Department of the security furnished by  the  applicant,  the
30    Department  shall  issue  to  such applicant a certificate of
31    registration which shall permit the  person  to  whom  it  is
32    issued to engage in the business of selling tangible personal
33    property   at  retail  in  this  State.  The  certificate  of
34    registration shall be conspicuously displayed at the place of
                            -57-              LRB9000732KDcbA
 1    business  which  the  person  so  registered  states  in  his
 2    application to be the principal place of business from  which
 3    he  engages  in  the  business  of  selling tangible personal
 4    property at retail in this State.
 5        No certificate of registration issued to a  taxpayer  who
 6    files  returns  required by this Act on a monthly basis shall
 7    be valid after the expiration of 5 years from the date of its
 8    issuance  or  last  renewal.   The  expiration  date   of   a
 9    sub-certificate   of   registration  shall  be  that  of  the
10    certificate of  registration  to  which  the  sub-certificate
11    relates.   A  certificate of registration shall automatically
12    be renewed, subject to revocation as provided  by  this  Act,
13    for  an  additional  5  years from the date of its expiration
14    unless otherwise notified by the Department  as  provided  by
15    this  paragraph.   Where  a taxpayer to whom a certificate of
16    registration is issued under this Act is in  default  to  the
17    State  of  Illinois  for delinquent returns or for moneys due
18    under this Act or any other State tax  law  or  municipal  or
19    county  ordinance administered or enforced by the Department,
20    the Department shall, not  less  than  120  days  before  the
21    expiration  date  of  such  certificate of registration, give
22    notice to the taxpayer to whom the certificate was issued, of
23    the account period of the delinquent returns, the  amount  of
24    tax,  penalty  and  interest due and owing from the taxpayer,
25    and  that  the  certificate  of  registration  shall  not  be
26    automatically renewed upon its  expiration  date  unless  the
27    taxpayer,  on or before the date of expiration, has filed and
28    paid the delinquent returns or paid the defaulted  amount  in
29    full.   A  taxpayer  to whom such a notice is issued shall be
30    deemed  an  applicant  for  renewal.   The  Department  shall
31    promulgate regulations establishing procedures for  taxpayers
32    who file returns on a monthly basis but desire and qualify to
33    change  to  a  quarterly  or  yearly filing basis and will no
34    longer be subject to renewal  under  this  Section,  and  for
                            -58-              LRB9000732KDcbA
 1    taxpayers who file returns on a yearly or quarterly basis but
 2    who  desire  or  are  required  to change to a monthly filing
 3    basis and will be subject to renewal under this Section.
 4        The Department may in its discretion approve  renewal  by
 5    an applicant who is in default if, at the time of application
 6    for  renewal,  the  applicant  files  all  of  the delinquent
 7    returns or pays to the  Department  such  percentage  of  the
 8    defaulted  amount  as may be determined by the Department and
 9    agrees  in  writing  to  waive  all  limitations   upon   the
10    Department  for  collection of the remaining defaulted amount
11    to the Department over a period not to exceed  5  years  from
12    the  date  of renewal of the certificate; however, no renewal
13    application submitted by an applicant who is in default shall
14    be approved if  the  immediately  preceding  renewal  by  the
15    applicant   was  conditioned  upon  the  installment  payment
16    agreement described in this Section.  The  payment  agreement
17    herein  provided  for shall be in addition to and not in lieu
18    of the security required by this Section of a taxpayer who is
19    no longer considered a prior continuous compliance  taxpayer.
20    The  execution  of  the payment agreement as provided in this
21    Act shall not toll the accrual of interest at  the  statutory
22    rate.
23        A  certificate of registration issued under this Act more
24    than 5 years before the effective date of this amendatory Act
25    of 1989 shall expire and be subject to the renewal provisions
26    of this Section on  the  next  anniversary  of  the  date  of
27    issuance  of such certificate which occurs more than 6 months
28    after the effective date of this amendatory Act of  1989.   A
29    certificate  of  registration issued less than 5 years before
30    the effective date of  this  amendatory  Act  of  1989  shall
31    expire  and  be  subject  to  the  renewal provisions of this
32    Section on  the  5th  anniversary  of  the  issuance  of  the
33    certificate.
34        If the person so registered states that he operates other
                            -59-              LRB9000732KDcbA
 1    places  of  business from which he engages in the business of
 2    selling tangible personal property at retail in  this  State,
 3    the  Department  shall  furnish him with a sub-certificate of
 4    registration  for  each  such  place  of  business,  and  the
 5    applicant shall display the  appropriate  sub-certificate  of
 6    registration   at   each   such   place   of   business.  All
 7    sub-certificates  of  registration  shall   bear   the   same
 8    registration number as that appearing upon the certificate of
 9    registration to which such sub-certificates relate.
10        If  the applicant will sell tangible personal property at
11    retail through vending machines, the Department shall furnish
12    him with a sub-certificate  of  registration  for  each  such
13    vending   machine,   and  the  applicant  shall  display  the
14    appropriate sub-certificate  of  registration  on  each  such
15    vending   machine   by   attaching   the  sub-certificate  of
16    registration to a conspicuous part of such vending machine.
17        Where the same person engages in 2 or more businesses  of
18    selling  tangible  personal property at retail in this State,
19    which businesses are substantially different in character  or
20    engaged  in  under  different trade names or engaged in under
21    other substantially dissimilar circumstances (so that  it  is
22    more practicable, from an accounting, auditing or bookkeeping
23    standpoint, for such businesses to be separately registered),
24    the  Department may require or permit such person (subject to
25    the same requirements concerning the furnishing  of  security
26    as  those  that are provided for hereinbefore in this Section
27    as to each application for a certificate of registration)  to
28    apply  for  and obtain a separate certificate of registration
29    for each such business or for any of such businesses, under a
30    single certificate of registration  supplemented  by  related
31    sub-certificates of registration.
32        Any  person  who  is  registered  under  the  "Retailers'
33    Occupation  Tax Act" as of March 8, 1963, and who, during the
34    3-year period immediately prior to March 8, 1963, or during a
                            -60-              LRB9000732KDcbA
 1    continuous 3-year period part  of  which  passed  immediately
 2    before  and  the  remainder of which passes immediately after
 3    March 8, 1963, has been so registered continuously and who is
 4    determined  by  the  Department  not  to  have  been   either
 5    delinquent  or  deficient  in  the  payment  of tax liability
 6    during that period under this Act or under  any  other  State
 7    tax  law  or  municipal or county tax ordinance or resolution
 8    under which the certificate of registration that is issued to
 9    the registrant under this Act will permit the  registrant  to
10    engage  in business without registering separately under such
11    other law, ordinance or resolution, shall be considered to be
12    a Prior Continuous Compliance taxpayer. Also any taxpayer who
13    has,  as  verified  by   the   Department,   faithfully   and
14    continuously complied with the condition of his bond or other
15    security  under  the provisions of this Act for a period of 3
16    consecutive  years  shall  be  considered  to  be   a   Prior
17    Continuous Compliance taxpayer.
18        Every  Prior  Continuous  Compliance  taxpayer  shall  be
19    exempt  from  all  requirements under this Act concerning the
20    furnishing of security as a condition precedent to his  being
21    authorized  to  engage  in  the  business of selling tangible
22    personal property at retail in  this  State.  This  exemption
23    shall  continue  for each such taxpayer until such time as he
24    may be determined by the Department to be delinquent  in  the
25    filing  of  any  returns,  or is determined by the Department
26    (either  through  the  Department's  issuance  of   a   final
27    assessment  which  has  become final under the Act, or by the
28    taxpayer's filing of a return which admits tax  that  is  not
29    paid  to  be due) to be delinquent or deficient in the paying
30    of any tax under this Act or under any other State tax law or
31    municipal or county tax ordinance or resolution  under  which
32    the  certificate  of  registration  that  is  issued  to  the
33    registrant  under  this  Act  will  permit  the registrant to
34    engage in business without registering separately under  such
                            -61-              LRB9000732KDcbA
 1    other  law,  ordinance  or  resolution,  at  which  time that
 2    taxpayer  shall  become  subject   to   all   the   financial
 3    responsibility  requirements  of this Act and, as a condition
 4    of being allowed to continue to engage  in  the  business  of
 5    selling  tangible  personal  property  at  retail,  shall  be
 6    required  to  post bond or other acceptable security with the
 7    Department  covering  liability  which  such   taxpayer   may
 8    thereafter  incur.  Any taxpayer who fails to pay an admitted
 9    or established liability under this Act may also be  required
10    to   post   bond  or  other  acceptable  security  with  this
11    Department guaranteeing  the  payment  of  such  admitted  or
12    established liability.
13        No  certificate  of  registration  shall be issued to any
14    person who is in default to the State of Illinois for  moneys
15    due  under  this  Act  or  under  any  other State tax law or
16    municipal or county tax ordinance or resolution  under  which
17    the  certificate  of  registration  that  is  issued  to  the
18    applicant  under this Act will permit the applicant to engage
19    in business without registering separately under  such  other
20    law, ordinance or resolution.
21        Any  person  aggrieved  by any decision of the Department
22    under this Section may, within 20 days after notice  of  such
23    decision,  protest  and  request  a  hearing,  whereupon  the
24    Department  shall  give notice to such person of the time and
25    place fixed for such hearing and  shall  hold  a  hearing  in
26    conformity with the provisions of this Act and then issue its
27    final  administrative  decision in the matter to such person.
28    In the  absence  of  such  a  protest  within  20  days,  the
29    Department's  decision shall become final without any further
30    determination being made or notice given.
31        With respect to security other than bonds (upon which the
32    Department may sue in the event  of  a  forfeiture),  if  the
33    taxpayer  fails  to  pay,  when due, any amount whose payment
34    such security guarantees, the Department  shall,  after  such
                            -62-              LRB9000732KDcbA
 1    liability  is  admitted by the taxpayer or established by the
 2    Department through the issuance of a  final  assessment  that
 3    has  become  final  under the law, convert the security which
 4    that taxpayer has furnished into money for the  State,  after
 5    first  giving  the taxpayer at least 10 days' written notice,
 6    by registered or certified mail,  to  pay  the  liability  or
 7    forfeit  such  security  to  the  Department. If the security
 8    consists of stocks or bonds or  other  securities  which  are
 9    listed  on  a public exchange, the Department shall sell such
10    securities through such  public  exchange.  If  the  security
11    consists  of  an  irrevocable  bank  letter  of  credit,  the
12    Department  shall convert the security in the manner provided
13    for in the Uniform Commercial Code. If the security  consists
14    of  a  bank  certificate  of  deposit,  the  Department shall
15    convert the security into money by demanding  and  collecting
16    the  amount of such bank certificate of deposit from the bank
17    which issued such certificate. If the security consists of  a
18    type  of stocks or other securities which are not listed on a
19    public exchange, the Department shall sell such  security  to
20    the  highest  and  best bidder after giving at least 10 days'
21    notice of the date, time and place of the  intended  sale  by
22    publication   in  the  "State  Official  Newspaper".  If  the
23    Department realizes more than the amount  of  such  liability
24    from   the  security,  plus  the  expenses  incurred  by  the
25    Department  in  converting  the  security  into  money,   the
26    Department   shall  pay  such  excess  to  the  taxpayer  who
27    furnished such security, and the balance shall be  paid  into
28    the State Treasury.
29        The  Department  shall  discharge  any  surety  and shall
30    release and return any security deposited, assigned,  pledged
31    or  otherwise provided to it by a taxpayer under this Section
32    within 30 days after:
33             (1)  such  taxpayer  becomes  a   Prior   Continuous
34        Compliance taxpayer; or
                            -63-              LRB9000732KDcbA
 1             (2)  such taxpayer has ceased to collect receipts on
 2        which  he is required to remit tax to the Department, has
 3        filed a final tax return, and has paid to the  Department
 4        an  amount  sufficient  to  discharge  his  remaining tax
 5        liability, as determined by the Department,   under  this
 6        Act  and  under every other State tax law or municipal or
 7        county  tax  ordinance  or  resolution  under  which  the
 8        certificate of registration issued under this Act permits
 9        the registrant to engage in business without  registering
10        separately under such other law, ordinance or resolution.
11        The  Department  shall  make a final determination of the
12        taxpayer's outstanding tax liability as expeditiously  as
13        possible  after  his  final tax return has been filed; if
14        the  Department  cannot  make  such  final  determination
15        within 45 days after  receiving  the  final  tax  return,
16        within  such  period  it  shall  so  notify the taxpayer,
17        stating its reasons therefor.
18    (Source: P.A. 88-480; 89-399, eff. 8-20-95.)
19        (35 ILCS 120/6c) (from Ch. 120, par. 445c)
20        Sec. 6c.  If a protest  to  the  Department's  Notice  of
21    Tentative  Determination  of  Claim is not filed within 60 20
22    days and a request for a  hearing  thereon  is  not  made  as
23    provided  in  Section  6b  of this Act, the said Notice shall
24    thereupon become and operate as a Final  Determination;  and,
25    if  the  Department's Notice of Tentative Determination, upon
26    becoming a Final Determination, indicates no  amount  due  to
27    the  claimant,  or,  upon  issuance of a credit memorandum or
28    refund for the amount, if any, found by the Department to  be
29    due,  the  claim  in  all  its aspects shall be closed and no
30    longer open to protest, hearing, judicial review, or  by  any
31    other  proceeding  or  action  whatever,  either  before  the
32    Department  or  in any court of this State. Claims for credit
33    or  refund  hereunder  must  be  filed  with  and   initially
                            -64-              LRB9000732KDcbA
 1    determined  by  the  Department,  the  remedy herein provided
 2    being exclusive; and no  court  shall  have  jurisdiction  to
 3    determine  the  merits  of  any  claim  except upon review as
 4    provided herein.
 5    (Source: P. A. 77-1032.)
 6        Section 40.  The Cigarette Tax Act is amended by changing
 7    Section 9d as follows:
 8        (35 ILCS 130/9d) (from Ch. 120, par. 453.9d)
 9        Sec. 9d. If it appears, after claim therefor  filed  with
10    the  Department,  that  an  amount of tax or penalty has been
11    paid which was not due under this Act, whether as the  result
12    of  a  mistake  of  fact  or  an  error  of  law,  except  as
13    hereinafter  provided,  then  the  Department  shall  issue a
14    credit memorandum or  refund  to  the  person  who  made  the
15    erroneous  payment  or,  if  that person has died or become a
16    person  under  legal  disability,  to  his   or   her   legal
17    representative, as such.
18        If  it  is  determined that the Department should issue a
19    credit or refund under this Act,  the  Department  may  first
20    apply the amount thereof against any amount of tax or penalty
21    due  under  this  Act or under the Cigarette Use Tax Act from
22    the person entitled  to  such  credit  or  refund.  For  this
23    purpose,  if  proceedings are pending to determine whether or
24    not any tax or penalty is due under this  Act  or  under  the
25    Cigarette  Use  Tax  Act from such person, the Department may
26    withhold issuance of the credit or refund pending  the  final
27    disposition  of such proceedings and may apply such credit or
28    refund against any amount found to be due to  the  Department
29    under this Act or under the Cigarette Use Tax Act as a result
30    of  such  proceedings.  The balance, if any, of the credit or
31    refund shall be issued to the person entitled thereto.
32        If no tax or penalty is due and no proceeding is  pending
                            -65-              LRB9000732KDcbA
 1    to  determine  whether  such  taxpayer  is  indebted  to  the
 2    Department  for  tax  or  penalty,  the  credit memorandum or
 3    refund shall be issued to the claimant; or (in the case of  a
 4    credit  memorandum) the credit memorandum may be assigned and
 5    set over by the lawful holder thereof, subject to  reasonable
 6    rules  of  the Department, to any other person who is subject
 7    to this Act or the Cigarette Use  Tax  Act,  and  the  amount
 8    thereof shall be applied by the Department against any tax or
 9    penalty  due  or  to  become  due under this Act or under the
10    Cigarette Use Tax Act from such assignee.
11        As to any claim filed hereunder with  the  Department  on
12    and  after  each  January  1  and July 1, no amount of tax or
13    penalty  erroneously  paid  (either  in  total   or   partial
14    liquidation  of  a tax or penalty under this Act) more than 3
15    years prior to such January 1 and July 1, respectively, shall
16    be credited or refunded, except that if both  the  Department
17    and the taxpayer have agreed to an extension of time to issue
18    a  notice  of  tax liability under this Act, the claim may be
19    filed at any time prior  to  the  expiration  of  the  period
20    agreed upon.
21        If  the Department approves a claim for stamps affixed to
22    a product returned to a manufacturer or  for  replacement  of
23    stamps, the credit memorandum shall not exceed the face value
24    of stamps originally affixed, and replacement stamps shall be
25    issued  only  in  an  amount equal to the value of the stamps
26    previously affixed.  Higher denomination stamps shall not  be
27    issued  as replacements for lower value stamps.  Distributors
28    must prove the face value  of  the  stamps  which  have  been
29    destroyed or returned to manufacturers when filing claims.
30        Any credit or refund that is allowed under this Act shall
31    bear  interest at the rate and in the manner set forth in the
32    Uniform Penalty and Interest Act.
33        In case the Department determines that  the  claimant  is
34    entitled  to  a  refund,  such refund shall be made only from
                            -66-              LRB9000732KDcbA
 1    such appropriation as may be available for that  purpose.  If
 2    it appears unlikely that the amount appropriated would permit
 3    everyone  having a claim allowed during the period covered by
 4    such appropriation to elect to receive  a  cash  refund,  the
 5    Department,  by  rule  or  regulation,  shall provide for the
 6    payment of refunds in hardship cases and  shall  define  what
 7    types of cases qualify as hardship cases.
 8        If  the  Department  approves  a  claim  for the physical
 9    replacement of cigarette tax stamps, the Department  (subject
10    to the same limitations as those provided for hereinbefore in
11    this  Section)  may  issue an assignable credit memorandum or
12    refund  to  the  claimant  or   to   the   claimant's   legal
13    representative.
14        The   provisions  of  Sections  6a,  6b  and  6c  of  the
15    Retailers' Occupation Tax Act which are not inconsistent with
16    this Act, shall apply, as far as practicable, to the  subject
17    matter  of  this Act to the same extent as if such provisions
18    were included herein.
19    (Source: P.A. 87-205; 88-88.)
20        Section 45.  The Cigarette Use  Tax  Act  is  amended  by
21    changing Section 14a as follows:
22        (35 ILCS 135/14a) (from Ch. 120, par. 453.44a)
23        Sec.  14a. If it appears, after claim therefor filed with
24    the Department, that an amount of tax  or  penalty  has  been
25    paid  which was not due under this Act, whether as the result
26    of  a  mistake  of  fact  or  an  error  of  law,  except  as
27    hereinafter provided,  then  the  Department  shall  issue  a
28    credit  memorandum  or  refund  to  the  person  who made the
29    erroneous payment or, if that person has  died  or  become  a
30    person   under   legal   disability,  to  his  or  her  legal
31    representative, as such.
32        If it is determined that the Department  should  issue  a
                            -67-              LRB9000732KDcbA
 1    credit  or  refund  under  this Act, the Department may first
 2    apply the amount thereof against any amount of tax or penalty
 3    due under this Act or under the Cigarette Tax  Act  from  the
 4    person  entitled  to such credit or refund. For this purpose,
 5    if proceedings are pending to determine whether  or  not  any
 6    tax  or  penalty is due under this Act or under the Cigarette
 7    Tax  Act  from  such  person,  the  Department  may  withhold
 8    issuance  of  the  credit  or  refund   pending   the   final
 9    disposition  of such proceedings and may apply such credit or
10    refund against any amount found to be due to  the  Department
11    under  this Act or under the Cigarette Tax Act as a result of
12    such proceedings. The balance,  if  any,  of  the  credit  or
13    refund shall be issued to the person entitled thereto.
14        If  no tax or penalty is due and no proceeding is pending
15    to  determine  whether  such  taxpayer  is  indebted  to  the
16    Department for tax  or  penalty,  the  credit  memorandum  or
17    refund  shall be issued to the claimant; or (in the case of a
18    credit memorandum) may be assigned and set over by the lawful
19    holder  thereof,  subject  to   reasonable   rules   of   the
20    Department, to any other person who is subject to this Act or
21    the  Cigarette  Tax  Act,  and  the  amount  thereof shall be
22    applied by the Department against any tax or penalty  due  or
23    to  become  due under this Act or under the Cigarette Tax Act
24    from such assignee.
25        As to any claim filed hereunder with  the  Department  on
26    and  after  each  January  1  and July 1, no amount of tax or
27    penalty  erroneously  paid  (either  in  total   or   partial
28    liquidation  of  a tax or penalty under this Act) more than 3
29    years prior to such January 1 and July 1, respectively, shall
30    be credited or refunded, except that if both  the  Department
31    and the taxpayer have agreed to an extension of time to issue
32    a  notice  of  tax liability under this Act, the claim may be
33    filed at any time prior  to  the  expiration  of  the  period
34    agreed upon.
                            -68-              LRB9000732KDcbA
 1        In  case  the  Department determines that the claimant is
 2    entitled to a refund, such refund shall  be  made  only  from
 3    such  appropriation  as may be available for that purpose. If
 4    it appears unlikely that the amount appropriated would permit
 5    everyone having a claim allowed during the period covered  by
 6    such  appropriation  to  elect  to receive a cash refund, the
 7    Department, by rule or  regulation,  shall  provide  for  the
 8    payment  of  refunds  in hardship cases and shall define what
 9    types of cases qualify as hardship cases.
10        If the Department  approves  a  claim  for  the  physical
11    replacement  of cigarette tax stamps, the Department (subject
12    to the same limitations as those provided for hereinbefore in
13    this Section) may issue an assignable  credit  memorandum  or
14    refund   to   the   claimant   or  to  the  claimant's  legal
15    representative.
16        Any credit or refund that is allowed under this Act shall
17    bear interest at the rate and in the manner set forth in  the
18    Uniform Penalty and Interest Act.
19        The   provisions  of  Sections  6a,  6b  and  6c  of  the
20    "Retailers' Occupation Tax Act", approved June 28,  1933,  as
21    amended,  in  effect on the effective date of this amendatory
22    Act, as subsequently amended, which are not inconsistent with
23    this Act, shall apply, as far as practicable, to the  subject
24    matter  of  this Act to the same extent as if such provisions
25    were included herein.
26    (Source: P.A. 83-706.)
27        Section 50.  The Messages Tax Act is amended by  changing
28    Sections 5 and 6 as follows:
29        (35 ILCS 610/5) (from Ch. 120, par. 467.5)
30        Sec.  5.  All of the provisions of Sections 4, 5, 5a, 5b,
31    5c, 5d, 5e, 5f, 5g, 5i, and 5j, 6b, and 6c of the  Retailers'
32    Occupation  Tax Act which are not inconsistent with this Act,
                            -69-              LRB9000732KDcbA
 1    and Section 3-7 of the Uniform Penalty and Interest Act shall
 2    apply, as far as practicable, to the subject matter  of  this
 3    Act  to  the  same extent as if such provisions were included
 4    herein. References  in  such  incorporated  Sections  of  the
 5    Retailers'  Occupation Tax Act to retailers, to sellers or to
 6    persons engaged in the business of selling tangible  personal
 7    property mean persons engaged in the business of transmitting
 8    messages   when   used   in  this  Act.  References  in  such
 9    incorporated Sections of the Retailers' Occupation Tax Act to
10    purchasers of tangible personal property mean  purchasers  of
11    the  service  of transmitting messages when used in this Act.
12    References in such incorporated Sections  of  the  Retailers'
13    Occupation  Tax  Act  to  sales of tangible personal property
14    mean the transmitting of messages when used in this Act.
15    (Source: P.A. 87-205.)
16        (35 ILCS 610/6) (from Ch. 120, par. 467.6)
17        Sec. 6.  If it appears, after claim therefor  filed  with
18    the  Department, that an amount of tax or penalty or interest
19    has been paid which was not due under this  Act,  whether  as
20    the result of a mistake of fact or an error of law, except as
21    hereinafter  provided,  then  the  Department  shall  issue a
22    credit memorandum or  refund  to  the  person  who  made  the
23    erroneous  payment  or,  if  that person has died or become a
24    person  under  legal  disability,  to  his   or   her   legal
25    representative, as such.
26        If  it  is  determined that the Department should issue a
27    credit or refund under this Act,  the  Department  may  first
28    apply the amount thereof against any amount of tax or penalty
29    or  interest  due  hereunder from the person entitled to such
30    credit or  refund.  For  this  purpose,  if  proceedings  are
31    pending  to  determine  whether  or not any tax or penalty or
32    interest  is  due  under  this  Act  from  such  person,  the
33    Department may withhold issuance  of  the  credit  or  refund
                            -70-              LRB9000732KDcbA
 1    pending  the  final  disposition  of such proceedings and may
 2    apply such credit or refund against any amount  found  to  be
 3    due  to  the  Department as a result of such proceedings. The
 4    balance, if any, of the credit or refund shall be  issued  to
 5    the person entitled thereto.
 6        If no tax or penalty or interest is due and no proceeding
 7    is  pending  to  determine whether such person is indebted to
 8    the Department for tax or penalty  or  interest,  the  credit
 9    memorandum  or refund shall be issued to the claimant; or (in
10    the case of a credit memorandum) the credit memorandum may be
11    assigned and set over by the lawful holder  thereof,  subject
12    to  reasonable  rules  of the Department, to any other person
13    who is subject to this Act, and the amount thereof  shall  be
14    applied  by  the  Department  against  any  tax or penalty or
15    interest due or to  become  due  under  this  Act  from  such
16    assignee.
17        As  to  any  claim  for  credit  or refund filed with the
18    Department on or after each January 1 and July 1, no  amounts
19    erroneously  paid  more  than 3 years prior to such January 1
20    and July 1, respectively,  shall  be  credited  or  refunded,
21    except  that  if  both  the  Department and the taxpayer have
22    agreed to an extension of time  to  issue  a  notice  of  tax
23    liability  under this Act, the claim may be filed at any time
24    prior to the expiration of the period agreed upon.
25        Claims for credit or refund shall  be  filed  upon  forms
26    provided  by the Department. As soon as practicable after any
27    claim for credit or refund is  filed,  the  Department  shall
28    examine the same and determine the amount of credit or refund
29    to  which  the  claimant  is  entitled  and  shall notify the
30    claimant of such determination, which amount shall  be  prima
31    facie correct.
32        Any credit or refund that is allowed under this Act shall
33    bear  interest at the rate and in the manner specified in the
34    Uniform Penalty and Interest Act.
                            -71-              LRB9000732KDcbA
 1        In case the Department determines that  the  claimant  is
 2    entitled  to  a  refund,  such refund shall be made only from
 3    such appropriation as may be available for that  purpose.  If
 4    it appears unlikely that the amount appropriated would permit
 5    everyone  having a claim allowed during the period covered by
 6    such appropriation to elect to receive  a  cash  refund,  the
 7    Department,  by  rule  or  regulation,  shall provide for the
 8    payment of refunds in hardship cases and  shall  define  what
 9    types of cases qualify as hardship cases.
10    (Source: P.A. 87-205.)
11        Section  55.   The  Gas  Revenue  Tax  Act  is amended by
12    changing Sections 5 and 6 as follows:
13        (35 ILCS 615/5) (from Ch. 120, par. 467.20)
14        Sec. 5. All of the provisions of Sections 4, 5,  5a,  5b,
15    5c,  5d, 5e, 5f, 5g, 5i, and 5j, 6b, and 6c of the Retailers'
16    Occupation Tax Act which are not inconsistent with this  Act,
17    and Section 3-7 of the Uniform Penalty and Interest Act shall
18    apply,  as  far as practicable, to the subject matter of this
19    Act to the same extent as if such  provisions  were  included
20    herein.  References  in  such  incorporated  Sections  of the
21    Retailers' Occupation Tax Act to retailers, to sellers or  to
22    persons  engaged in the business of selling tangible personal
23    property  mean   persons   engaged   in   the   business   of
24    distributing,  supplying, furnishing or selling gas when used
25    in this Act. References in such incorporated Sections of  the
26    Retailers'  Occupation  Tax  Act  to  purchasers  of tangible
27    personal property mean purchasers of gas when  used  in  this
28    Act.   References   in  such  incorporated  Sections  of  the
29    Retailers' Occupation Tax Act to sales of  tangible  personal
30    property  mean  the  distributing,  supplying,  furnishing or
31    selling of gas when used in this Act.
32    (Source: P.A. 87-205.)
                            -72-              LRB9000732KDcbA
 1        (35 ILCS 615/6) (from Ch. 120, par. 467.21)
 2        Sec. 6.  If it appears, after claim therefor  filed  with
 3    the  Department, that an amount of tax or penalty or interest
 4    has been paid which was not due under this  Act,  whether  as
 5    the result of a mistake of fact or an error of law, except as
 6    hereinafter  provided,  then  the  Department  shall  issue a
 7    credit memorandum or  refund  to  the  person  who  made  the
 8    erroneous  payment  or,  if  that person has died or become a
 9    person  under  legal  disability,  to  his   or   her   legal
10    representative, as such.
11        If  it  is  determined that the Department should issue a
12    credit or refund under this Act,  the  Department  may  first
13    apply the amount thereof against any amount of tax or penalty
14    or  interest  due  hereunder from the person entitled to such
15    credit or  refund.  For  this  purpose,  if  proceedings  are
16    pending  to  determine  whether  or not any tax or penalty or
17    interest  is  due  under  this  Act  from  such  person,  the
18    Department may withhold issuance  of  the  credit  or  refund
19    pending  the  final  disposition  of such proceedings and may
20    apply such credit or refund against any amount  found  to  be
21    due  to  the  Department as a result of such proceedings. The
22    balance, if any, of the credit or refund shall be  issued  to
23    the person entitled thereto.
24        If no tax or penalty or interest is due and no proceeding
25    is  pending  to  determine whether such person is indebted to
26    the Department for tax or penalty  or  interest,  the  credit
27    memorandum  or refund shall be issued to the claimant; or (in
28    the case of a credit memorandum) the credit memorandum may be
29    assigned and set over by the lawful holder  thereof,  subject
30    to  reasonable  rules  of the Department, to any other person
31    who is subject to this Act, and the amount thereof  shall  be
32    applied  by  the  Department  against  any  tax or penalty or
33    interest due or to  become  due  under  this  Act  from  such
34    assignee.
                            -73-              LRB9000732KDcbA
 1        As  to  any  claim  for  credit  or refund filed with the
 2    Department on or after each January 1 and July 1, no  amounts
 3    erroneously  paid  more  than 3 years prior to such January 1
 4    and July 1, respectively,  shall  be  credited  or  refunded,
 5    except  that  if  both  the  Department and the taxpayer have
 6    agreed to an extension of time  to  issue  a  notice  of  tax
 7    liability  under this Act, the claim may be filed at any time
 8    prior to the expiration of the period agreed upon.
 9        Claims for credit or refund shall  be  filed  upon  forms
10    provided  by the Department. As soon as practicable after any
11    claim for credit or refund is  filed,  the  Department  shall
12    examine the same and determine the amount of credit or refund
13    to  which  the  claimant  is  entitled  and  shall notify the
14    claimant of such determination, which amount shall  be  prima
15    facie correct.
16        Any credit or refund that is allowed under this Act shall
17    bear  interest at the rate and in the manner specified in the
18    Uniform Penalty and Interest Act.
19        In case the Department determines that  the  claimant  is
20    entitled  to  a  refund,  such refund shall be made only from
21    such appropriation as may be available for that  purpose.  If
22    it appears unlikely that the amount appropriated would permit
23    everyone  having a claim allowed during the period covered by
24    such appropriation to elect to receive  a  cash  refund,  the
25    Department,  by  rule  or  regulation,  shall provide for the
26    payment of refunds in hardship cases and  shall  define  what
27    types of cases qualify as hardship cases.
28    (Source: P.A. 87-205.)
29        Section  60.  The Public Utilities Revenue Act is amended
30    by changing Sections 5 and 6 as follows:
31        (35 ILCS 620/5) (from Ch. 120, par. 472)
32        Sec. 5. All of the provisions of Sections 4, 5,  5a,  5b,
                            -74-              LRB9000732KDcbA
 1    5c,  5d, 5e, 5f, 5g, 5i, and 5j, 6b, and 6c of the Retailers'
 2    Occupation Tax Act, which are not inconsistent with this Act,
 3    and Section 3-7 of the Uniform Penalty and Interest Act shall
 4    apply, as far as practicable, to the subject matter  of  this
 5    Act  to  the  same extent as if such provisions were included
 6    herein. References  in  such  incorporated  Sections  of  the
 7    Retailers'  Occupation Tax Act to retailers, to sellers or to
 8    persons engaged in the business of selling tangible  personal
 9    property   mean   persons   engaged   in   the   business  of
10    distributing, supplying, furnishing  or  selling  electricity
11    when  used  in  this  Act.  References  in  such incorporated
12    Sections of the Retailers' Occupation Tax Act  to  purchasers
13    of  tangible personal property mean purchasers of electricity
14    when used  in  this  Act.  References  in  such  incorporated
15    Sections  of  the  Retailers'  Occupation Tax Act to sales of
16    tangible personal property mean the distributing,  supplying,
17    furnishing or selling of electricity when used in this Act.
18    (Source: P.A. 87-205.)
19        (35 ILCS 620/6) (from Ch. 120, par. 473)
20        Sec.  6.  If  it appears, after claim therefor filed with
21    the Department, that an amount of tax or penalty or  interest
22    has  been  paid  which was not due under this Act, whether as
23    the result of a mistake of fact or an error of law, except as
24    hereinafter provided,  then  the  Department  shall  issue  a
25    credit  memorandum  or  refund  to  the  person  who made the
26    erroneous payment or, if that person has  died  or  become  a
27    person   under   legal   disability,  to  his  or  her  legal
28    representative, as such.
29        If it is determined that the Department  should  issue  a
30    credit  or  refund  under  this Act, the Department may first
31    apply the amount thereof against any amount of tax or penalty
32    or interest due hereunder from the person  entitled  to  such
33    credit  or  refund.  For  this  purpose,  if  proceedings are
                            -75-              LRB9000732KDcbA
 1    pending to determine whether or not any  tax  or  penalty  or
 2    interest  is  due  under  this  Act  from  such  person,  the
 3    Department  may  withhold  issuance  of  the credit or refund
 4    pending the final disposition of  such  proceedings  and  may
 5    apply  such  credit  or refund against any amount found to be
 6    due to the Department as a result of  such  proceedings.  The
 7    balance,  if  any, of the credit or refund shall be issued to
 8    the person entitled thereto.
 9        If no tax or penalty or interest is due and no proceeding
10    is pending to determine whether such person  is  indebted  to
11    the  Department  for  tax  or penalty or interest, the credit
12    memorandum or refund shall be issued to the claimant; or  (in
13    the case of a credit memorandum) the credit memorandum may be
14    assigned  and  set over by the lawful holder thereof, subject
15    to reasonable rules of the Department, to  any  other  person
16    who  is  subject to this Act, and the amount thereof shall be
17    applied by the Department  against  any  tax  or  penalty  or
18    interest  due  or  to  become  due  under  this Act from such
19    assignee.
20        As to any claim for  credit  or  refund  filed  with  the
21    Department  on or after each January 1 and July 1, no amounts
22    erroneously paid more than 3 years prior to  such  January  1
23    and  July  1,  respectively,  shall be credited or refunded ,
24    except that if both the  Department  and  the  taxpayer  have
25    agreed  to  an  extension  of  time  to issue a notice of tax
26    liability under this Act, the claim may be filed at any  time
27    prior to the expiration of the period agreed upon.
28        Claims  for  credit  or  refund shall be filed upon forms
29    provided by the Department. As soon as practicable after  any
30    claim  for  credit  or  refund is filed, the Department shall
31    examine the same and determine the amount of credit or refund
32    to which the  claimant  is  entitled  and  shall  notify  the
33    claimant  of  such determination, which amount shall be prima
34    facie correct.
                            -76-              LRB9000732KDcbA
 1        Any credit or refund that is allowed under this Act shall
 2    bear interest at the rate and in the manner specified in  the
 3    Uniform Penalty and Interest Act.
 4        In  case  the  Department determines that the claimant is
 5    entitled to a refund, such refund shall  be  made  only  from
 6    such  appropriation  as may be available for that purpose. If
 7    it appears unlikely that the amount appropriated would permit
 8    everyone having a claim allowed during the period covered  by
 9    such  appropriation  to  elect  to receive a cash refund, the
10    Department, by rule or  regulation,  shall  provide  for  the
11    payment  of  refunds  in hardship cases and shall define what
12    types of cases qualify as hardship cases.
13    (Source: P.A. 87-205.)
14        Section 65.  The Water Company Invested Capital  Tax  Act
15    is amended by changing Sections 5 and 6 as follows:
16        (35 ILCS 625/5) (from Ch. 120, par. 1415)
17        Sec.  5.  All of the provisions of Sections 4, 5, 5a, 5b,
18    5c, 5d, 5e, 5f, 5g, 5i, and 5j, 6b, and 6c of the  Retailers'
19    Occupation Tax Act and Section 3-7 of the Uniform Penalty and
20    Interest Act, which are not inconsistent with this Act, shall
21    apply,  as  far as practicable, to the subject matter of this
22    Act to the same extent as if such  provisions  were  included
23    herein.  References  in  such  incorporated  Sections  of the
24    Retailers' Occupation Tax Act to retailers, to sellers or  to
25    persons  engaged in the business of selling tangible personal
26    property  mean  water  companies  when  used  in  this   Act.
27    References  in  such  incorporated Sections of the Retailers'
28    Occupation  Tax  Act  to  purchasers  of  tangible   personal
29    property  mean  purchasers  of  water, or of water and sewage
30    disposal,  when  used  in  this  Act.  References   in   such
31    incorporated Sections of the Retailers' Occupation Tax Act to
32    sales  of  tangible  personal property mean the distributing,
                            -77-              LRB9000732KDcbA
 1    supplying,  furnishing  or  selling  of  water  for  use   or
 2    consumption,  or  of  water and sewage disposal, when used in
 3    this Act.
 4    (Source: P.A. 87-205.)
 5        (35 ILCS 625/6) (from Ch. 120, par. 1416)
 6        Sec. 6.  If it appears, after claim therefor  filed  with
 7    the  Department, that an amount of tax or penalty or interest
 8    has been paid which was not due under this  Act,  whether  as
 9    the result of a mistake of fact or an error of law, except as
10    hereinafter  provided,  then  the  Department  shall  issue a
11    credit memorandum or  refund  to  the  person  who  made  the
12    erroneous  payment  or,  if  that  person  has died or become
13    incompetent, to his legal representative, as such.
14        If it is determined that the Department  should  issue  a
15    credit  or  refund  under  this Act, the Department may first
16    apply the amount thereof against any amount of tax or penalty
17    or interest due hereunder from the person  entitled  to  such
18    credit  or  refund.  For  this  purpose,  if  proceedings are
19    pending to determine whether or not any  tax  or  penalty  or
20    interest  is  due  under  this  Act  from  such  person,  the
21    Department  may  withhold  issuance  of  the credit or refund
22    pending the final disposition of  such  proceedings  and  may
23    apply  such  credit  or refund against any amount found to be
24    due to the Department as a result of  such  proceedings.  The
25    balance,  if  any, of the credit or refund shall be issued to
26    the person entitled thereto.
27        If no tax or penalty or interest is due and no proceeding
28    is pending to determine whether such person  is  indebted  to
29    the  Department  for  tax  or penalty or interest, the credit
30    memorandum or refund shall be issued to the claimant; or  (in
31    the case of a credit memorandum) the credit memorandum may be
32    assigned  and  set over by the lawful holder thereof, subject
33    to reasonable rules of the Department, to  any  other  person
                            -78-              LRB9000732KDcbA
 1    who  is  subject to this Act, and the amount thereof shall be
 2    applied by the Department  against  any  tax  or  penalty  or
 3    interest  due  or  to  become  due  under  this Act from such
 4    assignee.
 5        As to any claim for  credit  or  refund  filed  with  the
 6    Department  on or after each January 1 and July 1, no amounts
 7    erroneously paid more than 3 years prior to  such  January  1
 8    and  July  1,  respectively,  shall  be credited or refunded,
 9    except that if both the  Department  and  the  taxpayer  have
10    agreed  to  an  extension  of  time  to issue a notice of tax
11    liability under this Act, the claim may be filed at any  time
12    prior to the expiration of the period agreed upon.
13        Claims  for  credit  or  refund shall be filed upon forms
14    provided by the Department. As soon as practicable after  any
15    claim  for  credit  or  refund is filed, the Department shall
16    examine the same and determine the amount of credit or refund
17    to which the  claimant  is  entitled  and  shall  notify  the
18    claimant  of  such determination, which amount shall be prima
19    facie correct.
20        Any credit or refund that is allowed under  this  Section
21    shall  bear  interest at the rate and in the manner specified
22    in the Uniform Penalty and Interest Act.
23        In case the Department determines that  the  claimant  is
24    entitled  to  a  refund,  such refund shall be made only from
25    such appropriation as may be available for that  purpose.  If
26    it appears unlikely that the amount appropriated would permit
27    everyone  having a claim allowed during the period covered by
28    such appropriation to elect to receive  a  cash  refund,  the
29    Department,  by  rule  or  regulation,  shall provide for the
30    payment of refunds in hardship cases and  shall  define  what
31    types of cases qualify as hardship cases.
32    (Source: P.A. 87-205.)
33        Section  70.   The  Telecommunications  Excise Tax Act is
                            -79-              LRB9000732KDcbA
 1    amended by changing Sections 9 and 10 as follows:
 2        (35 ILCS 630/9) (from Ch. 120, par. 2009)
 3        Sec. 9.  All of the provisions of Sections 4, 5, 5a,  5b,
 4    5c,  5d, 5e, 5f, 5g, 5i, and 5j, 6b, and 6c of the Retailers'
 5    Occupation Tax Act, which are not inconsistent with this Act,
 6    and Section 3-7 of the  Uniform  Penalty  and  Interest  Act,
 7    shall  apply, as far as practicable, to the subject matter of
 8    this Act to the  same  extent  as  if  such  provisions  were
 9    included herein.  References in such incorporated Sections of
10    the Retailers' Occupation Tax Act to retailers, to sellers or
11    to  persons  engaged  in  the  business  of  selling tangible
12    personal property mean retailers, as defined in this Article,
13    or persons engaged in the act or privilege of originating  or
14    receiving    telecommunications.     References    in    such
15    incorporated Sections of the Retailers' Occupation Tax Act to
16    purchasers  of  tangible personal property mean purchasers of
17    telecommunications as defined in this Article. References  in
18    such  incorporated  Sections of the Retailers' Occupation Tax
19    Act to sales of tangible personal property mean  the  act  or
20    privilege  of  originating or receiving telecommunications as
21    defined in this Article.
22    (Source: P.A. 87-205.)
23        (35 ILCS 630/10) (from Ch. 120, par. 2010)
24        Sec. 10.  If it shall appear that an  amount  of  tax  or
25    penalty  or  interest has been paid in error hereunder to the
26    Department by a taxpayer, as distinguished from the retailer,
27    whether such amount be paid through a mistake of fact  or  an
28    error  of  law,  such taxpayer may file a claim for credit or
29    refund with the Department.   If  it  shall  appear  that  an
30    amount  of  tax or penalty or interest has been paid in error
31    to the Department hereunder by a retailer who is required  or
32    authorized  to  collect  and  remit  the  tax imposed by this
                            -80-              LRB9000732KDcbA
 1    Article, whether such amount be paid  through  a  mistake  of
 2    fact  or  an error of law, such retailer may file a claim for
 3    credit or refund with the Department, provided that no credit
 4    or refund shall be allowed for any amount paid  by  any  such
 5    retailer  unless  it  shall appear that he bore the burden of
 6    such amount and did not shift the burden  thereof  to  anyone
 7    else,  or unless it shall appear that he or she or his or her
 8    legal representative has unconditionally repaid  such  amount
 9    to  his  customer (1) who bore the burden thereof and has not
10    shifted such burden directly  or  indirectly  in  any  manner
11    whatsoever; or (2) who, if he or she shifted such burden, has
12    repaid   unconditionally  such  amount  to  his  or  her  own
13    customer;  and  (3)  who  is  not  entitled  to  receive  any
14    reimbursement therefor from any other source  than  from  his
15    retailer,  nor  to  be  relieved  of such burden in any other
16    manner whatsoever.
17        If it is determined that the Department  should  issue  a
18    credit or refund under this Article, the Department may first
19    apply the amount thereof against any amount of tax or penalty
20    or  interest  due  hereunder from the person entitled to such
21    credit or refund.   For  this  purpose,  if  proceedings  are
22    pending  to  determine  whether  or not any tax or penalty or
23    interest is due under this  Article  from  such  person,  the
24    Department  may  withhold  issuance  of  the credit or refund
25    pending the final disposition of  such  proceedings  and  may
26    apply  such  credit  or refund against any amount found to be
27    due to the Department as a result of such  proceedings.   The
28    balance,  if  any, of the credit or refund shall be issued to
29    the person entitled thereto.
30        If no tax or penalty or interest is due and no proceeding
31    is pending to determine whether such person  is  indebted  to
32    the  Department  for  tax  or penalty or interest, the credit
33    memorandum or refund shall be issued to the claimant; or  (in
34    the case of a credit memorandum) the credit memorandum may be
                            -81-              LRB9000732KDcbA
 1    assigned  and  set over by the lawful holder thereof, subject
 2    to reasonable rules of the Department, to  any  other  person
 3    who  is subject to this Article, and the amount thereof shall
 4    be applied by the Department against any tax  or  penalty  or
 5    interest  due  or  to become due under this Article from such
 6    assignee.
 7        As to any claim for  credit  or  refund  filed  with  the
 8    Department  on or after each January 1 and July 1, no amounts
 9    erroneously paid more than three years prior to such  January
10    1  and  July  1, respectively, shall be credited or refunded,
11    except that if both the  Department  and  the  taxpayer  have
12    agreed  to  an  extension  of  time  to issue a notice of tax
13    liability under this Act, the claim may be filed at any  time
14    prior to the expiration of the period agreed upon.
15        Claims  for  credit  or  refund shall be filed upon forms
16    provided by the Department.  As soon as practicable after any
17    claim for credit or refund is  filed,  the  Department  shall
18    examine the same and determine the amount of credit or refund
19    to  which  the  claimant  is  entitled  and  shall notify the
20    claimant of such determination, which amount shall  be  prima
21    facie correct.
22        A  claim for credit or refund shall be considered to have
23    been filed with the Department on the date upon which  it  is
24    received  by  the  Department.  Upon receipt of any claim for
25    credit or refund filed under this  Article,  any  officer  or
26    employee  of  the  Department,  authorized  in writing by the
27    Director of Revenue to acknowledge receipt of such claims  on
28    behalf  of  the  Department,  shall  execute on behalf of the
29    Department, and shall deliver or mail to the claimant or  his
30    duly  authorized agent, a written receipt, acknowledging that
31    the claim has been filed with the Department, describing  the
32    claim  in  sufficient  detail  to identify it and stating the
33    date upon which the claim was  received  by  the  Department.
34    Such  written  receipt shall be prima facie evidence that the
                            -82-              LRB9000732KDcbA
 1    Department received the claim described in such  receipt  and
 2    shall be prima facie evidence of the date when such claim was
 3    received by the Department.  In the absence of such a written
 4    receipt,  the  records of the Department as to when the claim
 5    was received by the Department, or as to whether or  not  the
 6    claim  was received at all by the Department, shall be deemed
 7    to be prima facie correct upon these questions in  the  event
 8    of  any  dispute  between  the  claimant (or his or her legal
 9    representative)   and   the   Department   concerning   these
10    questions.
11        Any credit or refund that is allowed under  this  Article
12    shall  bear  interest at the rate and in the manner specified
13    in the Uniform Penalty and Interest Act.
14        In case the Department determines that  the  claimant  is
15    entitled  to  a  refund,  such refund shall be made only from
16    such appropriation as may be available for that purpose.   If
17    it appears unlikely that the amount appropriated would permit
18    everyone  having a claim allowed during the period covered by
19    such appropriation to elect to receive  a  cash  refund,  the
20    Department  by  rule  or  regulation  shall  provide  for the
21    payment of refunds in hardship cases and  shall  define  what
22    types of cases qualify as hardship cases.
23        If  a retailer who has failed to pay tax on gross charges
24    for telecommunications is required by the Department  to  pay
25    such tax, such retailer, without filing any formal claim with
26    the  Department, shall be allowed to take credit against such
27    tax liability to the extent, if any, to which  such  retailer
28    has  paid  the  tax  to  its vendor of the telecommunications
29    which such retailer purchased and used  for  resale,  and  no
30    penalty  or interest shall be charged to such retailer on the
31    amount of such credit.  However, when such credit is  allowed
32    to  the  retailer  by the Department, the vendor is precluded
33    from refunding any of the tax to the retailer  and  filing  a
34    claim  for  credit  or  refund  with respect thereto with the
                            -83-              LRB9000732KDcbA
 1    Department.  The provisions of this  Section  added  by  this
 2    amendatory  Act  of  1988  shall  be  applied  retroactively,
 3    regardless of the date of the transaction.
 4    (Source: P.A. 87-205.)
 5        Section  75.   The  Senior  Citizens and Disabled Persons
 6    Property Tax Relief  and  Pharmaceutical  Assistance  Act  is
 7    amended by changing Section 3.07 as follows:
 8        (320 ILCS 25/3.07) (from Ch. 67 1/2, par. 403.07)
 9        Sec.   3.07.    "Income"  means  adjusted  gross  income,
10    properly reportable for federal income tax purposes under the
11    provisions of the Internal Revenue Code, modified  by  adding
12    thereto  the  sum  of  the  following  amounts  to the extent
13    deducted or excluded from gross income in the computation  of
14    adjusted gross income:
15             (A)  An  amount equal to all amounts paid or accrued
16        as interest or dividends during the taxable year;
17             (B)  An amount equal to the amount of tax imposed by
18        the Illinois Income Tax Act paid for the taxable year;
19             (C)  An amount equal to all amounts received  during
20        the   taxable  year  as  an  annuity  under  an  annuity,
21        endowment or life insurance contract or under  any  other
22        contract or agreement;
23             (D)  An  amount equal to the amount of benefits paid
24        under the Federal Social Security Act during the  taxable
25        year;
26             (E)  An  amount equal to the amount of benefits paid
27        under the Railroad  Retirement  Act  during  the  taxable
28        year;
29             (F)  An  amount  equal  to  the total amount of cash
30        public assistance payments received from any governmental
31        agency  during  the  taxable  year  other  than  benefits
32        received pursuant to this Act; .
                            -84-              LRB9000732KDcbA
 1             (G)  An amount  equal  to  any  net  operating  loss
 2        carryover  deduction  or capital loss carryover deduction
 3        during the taxable year.
 4        "Income" does not include any grant  assistance  received
 5    under the Nursing Home Grant Assistance Act.
 6        This  amendatory  Act  of  1987  shall  be  effective for
 7    purposes of this Section for tax years  ending  on  or  after
 8    December 31, 1987.
 9    (Source: P.A. 87-863.)
10        Section  99.  Effective date.  This Act takes effect upon
11    becoming law.
                            -85-              LRB9000732KDcbA
 1                                INDEX
 2               Statutes amended in order of appearance
 3    20 ILCS 2505/39b52
 4    30 ILCS 105/6z-18         from Ch. 127, par. 142z-18
 5    30 ILCS 105/6z-20         from Ch. 127, par. 142z-20
 6    35 ILCS 5/203             from Ch. 120, par. 2-203
 7    35 ILCS 5/301             from Ch. 120, par. 3-301
 8    35 ILCS 5/506             from Ch. 120, par. 5-506
 9    35 ILCS 5/905             from Ch. 120, par. 9-905
10    35 ILCS 5/911             from Ch. 120, par. 9-911
11    35 ILCS 5/1501            from Ch. 120, par. 15-1501
12    35 ILCS 105/20            from Ch. 120, par. 439.20
13    35 ILCS 110/18            from Ch. 120, par. 439.48
14    35 ILCS 115/18            from Ch. 120, par. 439.118
15    35 ILCS 120/2a            from Ch. 120, par. 441a
16    35 ILCS 120/6c            from Ch. 120, par. 445c
17    35 ILCS 130/9d            from Ch. 120, par. 453.9d
18    35 ILCS 135/14a           from Ch. 120, par. 453.44a
19    35 ILCS 610/5             from Ch. 120, par. 467.5
20    35 ILCS 610/6             from Ch. 120, par. 467.6
21    35 ILCS 615/5             from Ch. 120, par. 467.20
22    35 ILCS 615/6             from Ch. 120, par. 467.21
23    35 ILCS 620/5             from Ch. 120, par. 472
24    35 ILCS 620/6             from Ch. 120, par. 473
25    35 ILCS 625/5             from Ch. 120, par. 1415
26    35 ILCS 625/6             from Ch. 120, par. 1416
27    35 ILCS 630/9             from Ch. 120, par. 2009
28    35 ILCS 630/10            from Ch. 120, par. 2010
29    320 ILCS 25/3.07          from Ch. 67 1/2, par. 403.07

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