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90_SB0937ham001
LRB9001279PTpkam
1 AMENDMENT TO SENATE BILL 937
2 AMENDMENT NO. . Amend Senate Bill 937 by replacing
3 the title with the following:
4 "AN ACT in relation to taxes."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 1. Short title. This Act may be cited as the
8 Qualified Technological Equipment Leasing Occupation and Use
9 Tax Act.
10 Section 5. Definitions. As used in this Act, the
11 following terms have the following meanings:
12 "Computer" means a programmable electronically activated
13 device that:
14 (a) is capable of accepting information, applying
15 prescribed processes as to the information, and supplying the
16 results of these processes with or without human
17 intervention, and
18 (b) consists of a central processing unit containing
19 extensive storage, logic, arithmetic, and control
20 capabilities.
21 "Computer or peripheral equipment" means:
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1 (a) any computer, and
2 (b) any related peripheral equipment, however
3 (c) the term "computer or peripheral equipment" does not
4 include:
5 (i) any equipment that is an integral part of other
6 property that is not a computer,
7 (ii) typewriters, calculators, adding and
8 accounting machines, copiers, duplicating equipment, and
9 similar equipment, and
10 (iii) equipment of a kind used primarily for
11 amusement or entertainment of the user.
12 "Department" means the Department of Revenue.
13 "High technology medical equipment" means any electronic,
14 electromechanical, or computer-based high technology
15 equipment used in the screening, monitoring, observation,
16 diagnosis, or treatment of patients in a laboratory, medical,
17 or hospital environment.
18 "Person" means any natural individual, limited liability
19 company, firm, partnership, association, joint stock company,
20 joint adventure, public or private corporation, or a
21 receiver, executor, trustee, conservator, or other
22 representatives appointed by order of any court.
23 "Leasing" means any transfer of the possession or right
24 to possession of qualified technological equipment to a user
25 for valuable consideration, for the purpose of use and not
26 for the purpose of re-lease or sublease.
27 "Lessor" means any person engaged in the business of
28 leasing qualified technological equipment to users. For this
29 purpose, the objective of making a profit is not necessary to
30 make the leasing activity a business.
31 "Lessee" means any user to whom the possession, or the
32 right to possession, of qualified technological equipment is
33 transferred for a valuable consideration that is paid by such
34 "lessee" or by someone else.
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1 "Gross receipts" means the total leasing price for the
2 lease of qualified technological equipment. In the case of
3 lease transactions in which the consideration is paid to the
4 lessor on an installment basis, the amounts of such payments
5 shall be included by the lessor in gross receipts only as and
6 when payments are received by the lessor.
7 "Leasing price" means the consideration for leasing
8 qualified technological equipment valued in money, whether
9 received in money or otherwise, including cash, credits,
10 property, and services, and shall be determined without any
11 deduction on account of the cost of the property leased, the
12 cost of materials used, labor or service cost, or any other
13 expense whatsoever, but does not include charges that are
14 added by lessors on account of the lessor's tax liability
15 under this Act, or on account of the lessor's duty to
16 collect, from the lessee, the tax that is imposed by Section
17 20 of this Act.
18 "Maintaining a place of business in this State" means
19 having or maintaining within this State, directly or by a
20 subsidiary, an office, repair facilities, distribution house,
21 sales house, warehouse, or other place of business, or any
22 agent, or other representative, operating within this State,
23 irrespective of whether the place of business or agent or
24 other representative is located here permanently or
25 temporarily.
26 "Qualified technological equipment" for purposes of this
27 Act means the following:
28 (a) any computer or peripheral equipment,
29 (b) any high technology telecommunication equipment,
30 including telephone station equipment installed on the
31 customer's premises and central office switching equipment,
32 and
33 (c) any high technology medical equipment.
34 "Related peripheral equipment" means any auxiliary
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1 machine (whether on-line or off-line) that is designed to be
2 placed under the control of the central processing unit of a
3 computer.
4 Section 10. Imposition of occupation tax. Beginning with
5 leases for periods of one year or more entered into on and
6 after July 1, 1999, a tax is imposed upon persons engaged in
7 this State in the business of leasing qualified technological
8 equipment in Illinois at the rate of 8.25% of the gross
9 receipts received from the business.
10 The Department shall have full power to administer and
11 enforce this Section, to collect all taxes and penalties due
12 hereunder, to dispose of taxes and penalties so collected in
13 the manner hereinafter provided, and to determine all rights
14 to credit memoranda, arising on account of the erroneous
15 payment of tax or penalty hereunder. In the administration
16 of, and compliance with, this Section, the Department and
17 persons who are subject to this Section shall have the same
18 rights, remedies, privileges, immunities, powers and duties,
19 and be subject to the same conditions, restrictions,
20 limitations, penalties, and definitions of terms, and employ
21 the same modes of procedure, as are prescribed in Sections 1,
22 la, 2 through 2-65 (except as to the rate of tax), 2a, 2b,
23 2c, 3 (except provisions relating to transaction returns and
24 quarter monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
25 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12 and 13 of the
26 Retailers' Occupation Tax Act that are not inconsistent with
27 this Act and all Sections of the Uniform Penalty and Interest
28 Act as fully as if those provisions were set forth herein.
29 For purposes of this Section, references in such incorporated
30 Sections of the Retailers' Occupation Tax Act to retailers,
31 sellers, or persons engaged in the business of selling
32 tangible personal property means persons engaged in the
33 leasing of qualified technological equipment under leases
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1 subject to this Act.
2 Each month the Department shall pay into the Local
3 Government Distributive Fund 20% of the net revenue realized
4 for the preceding month from the 8.25% tax imposed in this
5 Section. These amounts shall be distributed in the manner
6 provided in Section 2 of the State Revenue Sharing Act. The
7 remaining 80% of the revenue shall be paid as provided for in
8 Section 3 of the Retailers' Occupation Tax Act.
9 Section 15. Registration. Every person engaged in this
10 State in the business of leasing qualified technological
11 equipment shall apply to the Department (upon a form
12 prescribed and furnished by the Department) for a certificate
13 of registration under this Act. The certificate of
14 registration that is issued by the Department to a retailer
15 under the Retailers' Occupation Tax Act shall permit the
16 lessor to engage in a business that is taxable under this
17 Section without registering separately with the Department.
18 Section 20. Imposition of use tax. Beginning with leases
19 for periods of one year or more entered into on and after
20 July 1, 1999, a tax is imposed upon the privilege of using in
21 this State qualified technological equipment that is leased
22 from a lessor. The tax is at the rate of 8.25% of the leasing
23 price of the qualified technological equipment paid to the
24 lessor under any lease agreement.
25 The Department shall have full power to administer and
26 enforce this Section; to collect all taxes, penalties, and
27 interest due hereunder; to dispose of taxes, penalties, and
28 interest so collected in the manner hereinafter provided; and
29 to determine all rights to credit memoranda or refunds
30 arising on account of the erroneous payment of tax, penalty,
31 or interest hereunder. In the administration of, and
32 compliance with, this Section, the Department and persons who
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1 are subject to this Section shall have the same rights,
2 remedies, privileges, immunities, powers, and duties, and be
3 subject to the same conditions, restrictions, limitations,
4 penalties, and definitions of terms, and employ the same
5 modes of procedure, as are prescribed in Sections 2, 3
6 through 3-80 (except as to the rate of tax), 4, 6, 7, 8, 9
7 (except provisions relating to transactions returns and
8 quarter monthly payments), 10, 11, 12, 12a, 12b, 13, 14, 15,
9 19, 20, 21 and 22 of the Use Tax Act that are not
10 inconsistent with this Act as fully as if those provisions
11 were set forth herein. For purposes of this Section,
12 references in such incorporated Sections of the Use Tax Act
13 to users or purchasers means lessees of qualified
14 technological equipment under leases subject to this Act.
15 Each month the Department shall pay into the Local
16 Government Distributive Fund 20% of the net revenue realized
17 for the preceding month from the 8.25% tax imposed in this
18 Section. These amounts shall be distributed in the manner
19 provided in Section 2 of the State Revenue Sharing Act. The
20 remaining 80% of the revenue shall be paid as provided for in
21 Section 9 of the Use Tax Act.
22 Section 25. Exemption due to prior taxation. The taxes
23 imposed under Sections 10 and 20 of this Act do not apply to
24 leases of qualified technological equipment as defined in
25 this Act if the lessor had properly paid, prior to July 1,
26 1999, Illinois use tax or service use tax to a retailer or
27 directly to the Department on the purchase or use of such
28 leased property.
29 Section 30. Use tax collected. The use tax imposed by
30 Section 20 shall be collected from the lessee and remitted to
31 the Department by a lessor maintaining a place of business in
32 this State.
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1 The use tax imposed by Section 20 and not paid to a
2 lessor pursuant to the preceding paragraph of this Section
3 shall be paid to the Department directly by any person using
4 the leased qualified technological equipment within this
5 State.
6 Lessors shall collect the tax from lessees by adding the
7 tax to the leasing price of the qualified technological
8 equipment in the manner prescribed by the Department. The
9 Department shall have the power to adopt and promulgate
10 reasonable rules and regulations for the adding of the tax by
11 lessors to leasing prices by prescribing bracket systems for
12 the purpose of enabling the lessors to add and collect, as
13 far as practicable, the amount of the tax.
14 The tax imposed by this Act shall, when collected, be
15 stated as a distinct item on the customer's bill, separate
16 and apart from the leasing price of the qualified
17 technological equipment.
18 Section 35. Severability clause. If any clause, sentence,
19 Section, provision, or part thereof of this Act or the
20 application thereof to any person or circumstance shall be
21 adjudged to be unconstitutional, the remainder of this Act or
22 its application to persons or circumstances other than those
23 to which it is held invalid, shall not be affected thereby.
24 In particular, if any provision that exempts or has the
25 effect of exempting some class of users or some kind of use
26 from the tax imposed by this Act should be held to constitute
27 or to result in an invalid classification or to be
28 unconstitutional for some other reason, that provision shall
29 be deemed to be severable, with the remainder of this Act
30 without the provision being held constitutional.
31 Section 105. The State Revenue Sharing Act is amended by
32 changing Section 1 as follows:
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1 (30 ILCS 115/1) (from Ch. 85, par. 611)
2 Sec. 1. Local Government Distributive Fund. Through June
3 30, 1994, as soon as may be after the first day of each month
4 the Department of Revenue shall certify to the Treasurer an
5 amount equal to 1/12 of the net revenue realized from the tax
6 imposed by subsections (a) and (b) of Section 201 of the
7 Illinois Income Tax Act during the preceding month.
8 Beginning July 1, 1994, and continuing through June 30, 1995,
9 as soon as may be after the first day of each month, the
10 Department of Revenue shall certify to the Treasurer an
11 amount equal to 1/11 of the net revenue realized from the tax
12 imposed by subsections (a) and (b) of Section 201 of the
13 Illinois Income Tax Act during the preceding month. Beginning
14 July 1, 1995, as soon as may be after the first day of each
15 month, the Department of Revenue shall certify to the
16 Treasurer an amount equal to 1/10 of the net revenue realized
17 from the tax imposed by subsections (a) and (b) of Section
18 201 of the Illinois Income Tax Act during the preceding
19 month. Net revenue realized for a month shall be defined as
20 the revenue from the tax imposed by subsections (a) and (b)
21 of Section 201 of the Illinois Income Tax Act which is
22 deposited in the General Revenue Fund, the Education
23 Assistance Fund and the Income Tax Surcharge Local Government
24 Distributive Fund during the month minus the amount paid out
25 of the General Revenue Fund in State warrants during that
26 same month as refunds to taxpayers for overpayment of
27 liability under the tax imposed by subsections (a) and (b) of
28 Section 201 of the Illinois Income Tax Act. In addition,
29 beginning July 1, 1999, as soon as may be after the first day
30 of each month, the Department shall certify to the Treasurer
31 an amount equal to 1/5 of the net revenue realized under the
32 Qualified Technological Equipment Leasing Occupation and Use
33 Tax Act. Upon receipt of such certification, the Treasurer
34 shall transfer from the General Revenue Fund to a special
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1 fund in the State treasury, to be known as the "Local
2 Government Distributive Fund", the amount shown on such
3 certification.
4 All amounts paid into the Local Government Distributive
5 Fund in accordance with this Section and allocated pursuant
6 to this Act are appropriated on a continuing basis.
7 (Source: P.A. 88-89.)
8 Section 110. The Use Tax Act is amended by changing
9 Sections 3-5 and 9 and adding Section 9.5 as follows:
10 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
11 Sec. 3-5. Exemptions. Use of the following tangible
12 personal property is exempt from the tax imposed by this Act:
13 (1) Personal property purchased from a corporation,
14 society, association, foundation, institution, or
15 organization, other than a limited liability company, that is
16 organized and operated as a not-for-profit service enterprise
17 for the benefit of persons 65 years of age or older if the
18 personal property was not purchased by the enterprise for the
19 purpose of resale by the enterprise.
20 (2) Personal property purchased by a not-for-profit
21 Illinois county fair association for use in conducting,
22 operating, or promoting the county fair.
23 (3) Personal property purchased by a not-for-profit
24 music or dramatic arts organization that establishes, by
25 proof required by the Department by rule, that it has
26 received an exemption under Section 501(c)(3) of the Internal
27 Revenue Code and that is organized and operated for the
28 presentation of live public performances of musical or
29 theatrical works on a regular basis.
30 (4) Personal property purchased by a governmental body,
31 by a corporation, society, association, foundation, or
32 institution organized and operated exclusively for
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1 charitable, religious, or educational purposes, or by a
2 not-for-profit corporation, society, association, foundation,
3 institution, or organization that has no compensated officers
4 or employees and that is organized and operated primarily for
5 the recreation of persons 55 years of age or older. A limited
6 liability company may qualify for the exemption under this
7 paragraph only if the limited liability company is organized
8 and operated exclusively for educational purposes. On and
9 after July 1, 1987, however, no entity otherwise eligible for
10 this exemption shall make tax-free purchases unless it has an
11 active exemption identification number issued by the
12 Department.
13 (5) A passenger car that is a replacement vehicle to the
14 extent that the purchase price of the car is subject to the
15 Replacement Vehicle Tax.
16 (6) Graphic arts machinery and equipment, including
17 repair and replacement parts, both new and used, and
18 including that manufactured on special order, certified by
19 the purchaser to be used primarily for graphic arts
20 production, and including machinery and equipment purchased
21 for lease.
22 (7) Farm chemicals.
23 (8) Legal tender, currency, medallions, or gold or
24 silver coinage issued by the State of Illinois, the
25 government of the United States of America, or the government
26 of any foreign country, and bullion.
27 (9) Personal property purchased from a teacher-sponsored
28 student organization affiliated with an elementary or
29 secondary school located in Illinois.
30 (10) A motor vehicle of the first division, a motor
31 vehicle of the second division that is a self-contained motor
32 vehicle designed or permanently converted to provide living
33 quarters for recreational, camping, or travel use, with
34 direct walk through to the living quarters from the driver's
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1 seat, or a motor vehicle of the second division that is of
2 the van configuration designed for the transportation of not
3 less than 7 nor more than 16 passengers, as defined in
4 Section 1-146 of the Illinois Vehicle Code, that is used for
5 automobile renting, as defined in the Automobile Renting
6 Occupation and Use Tax Act.
7 (11) Farm machinery and equipment, both new and used,
8 including that manufactured on special order, certified by
9 the purchaser to be used primarily for production agriculture
10 or State or federal agricultural programs, including
11 individual replacement parts for the machinery and equipment,
12 including machinery and equipment purchased for lease, and
13 including implements of husbandry defined in Section 1-130 of
14 the Illinois Vehicle Code, farm machinery and agricultural
15 chemical and fertilizer spreaders, and nurse wagons required
16 to be registered under Section 3-809 of the Illinois Vehicle
17 Code, but excluding other motor vehicles required to be
18 registered under the Illinois Vehicle Code. Horticultural
19 polyhouses or hoop houses used for propagating, growing, or
20 overwintering plants shall be considered farm machinery and
21 equipment under this item (11). Agricultural chemical tender
22 tanks and dry boxes shall include units sold separately from
23 a motor vehicle required to be licensed and units sold
24 mounted on a motor vehicle required to be licensed if the
25 selling price of the tender is separately stated.
26 Farm machinery and equipment shall include precision
27 farming equipment that is installed or purchased to be
28 installed on farm machinery and equipment including, but not
29 limited to, tractors, harvesters, sprayers, planters,
30 seeders, or spreaders. Precision farming equipment includes,
31 but is not limited to, soil testing sensors, computers,
32 monitors, software, global positioning and mapping systems,
33 and other such equipment.
34 Farm machinery and equipment also includes computers,
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1 sensors, software, and related equipment used primarily in
2 the computer-assisted operation of production agriculture
3 facilities, equipment, and activities such as, but not
4 limited to, the collection, monitoring, and correlation of
5 animal and crop data for the purpose of formulating animal
6 diets and agricultural chemicals. This item (11) is exempt
7 from the provisions of Section 3-90.
8 (12) Fuel and petroleum products sold to or used by an
9 air common carrier, certified by the carrier to be used for
10 consumption, shipment, or storage in the conduct of its
11 business as an air common carrier, for a flight destined for
12 or returning from a location or locations outside the United
13 States without regard to previous or subsequent domestic
14 stopovers.
15 (13) Proceeds of mandatory service charges separately
16 stated on customers' bills for the purchase and consumption
17 of food and beverages purchased at retail from a retailer, to
18 the extent that the proceeds of the service charge are in
19 fact turned over as tips or as a substitute for tips to the
20 employees who participate directly in preparing, serving,
21 hosting or cleaning up the food or beverage function with
22 respect to which the service charge is imposed.
23 (14) Oil field exploration, drilling, and production
24 equipment, including (i) rigs and parts of rigs, rotary rigs,
25 cable tool rigs, and workover rigs, (ii) pipe and tubular
26 goods, including casing and drill strings, (iii) pumps and
27 pump-jack units, (iv) storage tanks and flow lines, (v) any
28 individual replacement part for oil field exploration,
29 drilling, and production equipment, and (vi) machinery and
30 equipment purchased for lease; but excluding motor vehicles
31 required to be registered under the Illinois Vehicle Code.
32 (15) Photoprocessing machinery and equipment, including
33 repair and replacement parts, both new and used, including
34 that manufactured on special order, certified by the
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1 purchaser to be used primarily for photoprocessing, and
2 including photoprocessing machinery and equipment purchased
3 for lease.
4 (16) Coal exploration, mining, offhighway hauling,
5 processing, maintenance, and reclamation equipment, including
6 replacement parts and equipment, and including equipment
7 purchased for lease, but excluding motor vehicles required to
8 be registered under the Illinois Vehicle Code.
9 (17) Distillation machinery and equipment, sold as a
10 unit or kit, assembled or installed by the retailer,
11 certified by the user to be used only for the production of
12 ethyl alcohol that will be used for consumption as motor fuel
13 or as a component of motor fuel for the personal use of the
14 user, and not subject to sale or resale.
15 (18) Manufacturing and assembling machinery and
16 equipment used primarily in the process of manufacturing or
17 assembling tangible personal property for wholesale or retail
18 sale or lease, whether that sale or lease is made directly by
19 the manufacturer or by some other person, whether the
20 materials used in the process are owned by the manufacturer
21 or some other person, or whether that sale or lease is made
22 apart from or as an incident to the seller's engaging in the
23 service occupation of producing machines, tools, dies, jigs,
24 patterns, gauges, or other similar items of no commercial
25 value on special order for a particular purchaser.
26 (19) Personal property delivered to a purchaser or
27 purchaser's donee inside Illinois when the purchase order for
28 that personal property was received by a florist located
29 outside Illinois who has a florist located inside Illinois
30 deliver the personal property.
31 (20) Semen used for artificial insemination of livestock
32 for direct agricultural production.
33 (21) Horses, or interests in horses, registered with and
34 meeting the requirements of any of the Arabian Horse Club
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1 Registry of America, Appaloosa Horse Club, American Quarter
2 Horse Association, United States Trotting Association, or
3 Jockey Club, as appropriate, used for purposes of breeding or
4 racing for prizes.
5 (22) Computers and communications equipment utilized for
6 any hospital purpose and equipment used in the diagnosis,
7 analysis, or treatment of hospital patients purchased by a
8 lessor who leases the equipment, under a lease of one year or
9 longer executed or in effect at the time the lessor would
10 otherwise be subject to the tax imposed by this Act, to a
11 hospital that has been issued an active tax exemption
12 identification number by the Department under Section 1g of
13 the Retailers' Occupation Tax Act. If the equipment is
14 leased in a manner that does not qualify for this exemption
15 or is used in any other non-exempt manner, the lessor shall
16 be liable for the tax imposed under this Act or the Service
17 Use Tax Act, as the case may be, based on the fair market
18 value of the property at the time the non-qualifying use
19 occurs. No lessor shall collect or attempt to collect an
20 amount (however designated) that purports to reimburse that
21 lessor for the tax imposed by this Act or the Service Use Tax
22 Act, as the case may be, if the tax has not been paid by the
23 lessor. If a lessor improperly collects any such amount from
24 the lessee, the lessee shall have a legal right to claim a
25 refund of that amount from the lessor. If, however, that
26 amount is not refunded to the lessee for any reason, the
27 lessor is liable to pay that amount to the Department. This
28 paragraph is exempt from the provisions of Section 3-90.
29 (23) Personal property purchased by a lessor who leases
30 the property, under a lease of one year or longer executed
31 or in effect at the time the lessor would otherwise be
32 subject to the tax imposed by this Act, to a governmental
33 body that has been issued an active sales tax exemption
34 identification number by the Department under Section 1g of
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1 the Retailers' Occupation Tax Act. If the property is leased
2 in a manner that does not qualify for this exemption or used
3 in any other non-exempt manner, the lessor shall be liable
4 for the tax imposed under this Act or the Service Use Tax
5 Act, as the case may be, based on the fair market value of
6 the property at the time the non-qualifying use occurs. No
7 lessor shall collect or attempt to collect an amount (however
8 designated) that purports to reimburse that lessor for the
9 tax imposed by this Act or the Service Use Tax Act, as the
10 case may be, if the tax has not been paid by the lessor. If
11 a lessor improperly collects any such amount from the lessee,
12 the lessee shall have a legal right to claim a refund of that
13 amount from the lessor. If, however, that amount is not
14 refunded to the lessee for any reason, the lessor is liable
15 to pay that amount to the Department. This paragraph is
16 exempt from the provisions of Section 3-90.
17 (24) Beginning with taxable years ending on or after
18 December 31, 1995 and ending with taxable years ending on or
19 before December 31, 2004, personal property that is donated
20 for disaster relief to be used in a State or federally
21 declared disaster area in Illinois or bordering Illinois by a
22 manufacturer or retailer that is registered in this State to
23 a corporation, society, association, foundation, or
24 institution that has been issued a sales tax exemption
25 identification number by the Department that assists victims
26 of the disaster who reside within the declared disaster area.
27 (25) Beginning with taxable years ending on or after
28 December 31, 1995 and ending with taxable years ending on or
29 before December 31, 2004, personal property that is used in
30 the performance of infrastructure repairs in this State,
31 including but not limited to municipal roads and streets,
32 access roads, bridges, sidewalks, waste disposal systems,
33 water and sewer line extensions, water distribution and
34 purification facilities, storm water drainage and retention
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1 facilities, and sewage treatment facilities, resulting from a
2 State or federally declared disaster in Illinois or bordering
3 Illinois when such repairs are initiated on facilities
4 located in the declared disaster area within 6 months after
5 the disaster.
6 (26) Beginning July 1, 1999, qualified technological
7 equipment purchased for lease by lessors under leases subject
8 to the Qualified Technological Equipment Leasing Occupation
9 and Use Tax Act. However, this exemption will last only as
10 long as the property continues to be leased by the lessor.
11 When the property is no longer used for lease and the
12 property reverts to the lessor, the property is subject to
13 the tax imposed by this Act upon the fair market value of the
14 property on the date of the reversion. The property will not
15 be considered to revert to the lessor as long as the lessor
16 holds the property in his or her lease inventory and does not
17 otherwise use the property, except for demonstration
18 purposes. In addition, property held in the lessor's lease
19 inventory that is subsequently leased for a period of less
20 than one year will not be considered to revert to the lessor
21 if the property is returned to lease inventory at the
22 termination of the lease. This paragraph is exempt from the
23 provisions of Section 3-90.
24 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
25 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
26 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
27 eff. 12-12-97; 90-605, eff. 6-30-98.)
28 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
29 Sec. 9. Except as to motor vehicles, watercraft,
30 aircraft, and trailers that are required to be registered
31 with an agency of this State, each retailer required or
32 authorized to collect the tax imposed by this Act shall pay
33 to the Department the amount of such tax (except as otherwise
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1 provided) at the time when he is required to file his return
2 for the period during which such tax was collected, less a
3 discount of 2.1% prior to January 1, 1990, and 1.75% on and
4 after January 1, 1990, or $5 per calendar year, whichever is
5 greater, which is allowed to reimburse the retailer for
6 expenses incurred in collecting the tax, keeping records,
7 preparing and filing returns, remitting the tax and supplying
8 data to the Department on request. In the case of retailers
9 who report and pay the tax on a transaction by transaction
10 basis, as provided in this Section, such discount shall be
11 taken with each such tax remittance instead of when such
12 retailer files his periodic return. A retailer need not
13 remit that part of any tax collected by him to the extent
14 that he is required to remit and does remit the tax imposed
15 by the Retailers' Occupation Tax Act, with respect to the
16 sale of the same property.
17 Where such tangible personal property is sold under a
18 conditional sales contract, or under any other form of sale
19 wherein the payment of the principal sum, or a part thereof,
20 is extended beyond the close of the period for which the
21 return is filed, the retailer, in collecting the tax (except
22 as to motor vehicles, watercraft, aircraft, and trailers that
23 are required to be registered with an agency of this State),
24 may collect for each tax return period, only the tax
25 applicable to that part of the selling price actually
26 received during such tax return period.
27 Except as provided in this Section, on or before the
28 twentieth day of each calendar month, such retailer shall
29 file a return for the preceding calendar month. Such return
30 shall be filed on forms prescribed by the Department and
31 shall furnish such information as the Department may
32 reasonably require.
33 The Department may require returns to be filed on a
34 quarterly basis. If so required, a return for each calendar
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1 quarter shall be filed on or before the twentieth day of the
2 calendar month following the end of such calendar quarter.
3 The taxpayer shall also file a return with the Department for
4 each of the first two months of each calendar quarter, on or
5 before the twentieth day of the following calendar month,
6 stating:
7 1. The name of the seller;
8 2. The address of the principal place of business
9 from which he engages in the business of selling tangible
10 personal property at retail in this State;
11 3. The total amount of taxable receipts received by
12 him during the preceding calendar month from sales of
13 tangible personal property by him during such preceding
14 calendar month, including receipts from charge and time
15 sales, but less all deductions allowed by law;
16 4. The amount of credit provided in Section 2d of
17 this Act;
18 5. The amount of tax due;
19 5-5. The signature of the taxpayer; and
20 6. Such other reasonable information as the
21 Department may require.
22 If a taxpayer fails to sign a return within 30 days after
23 the proper notice and demand for signature by the Department,
24 the return shall be considered valid and any amount shown to
25 be due on the return shall be deemed assessed.
26 Beginning October 1, 1993, a taxpayer who has an average
27 monthly tax liability of $150,000 or more shall make all
28 payments required by rules of the Department by electronic
29 funds transfer. Beginning October 1, 1994, a taxpayer who has
30 an average monthly tax liability of $100,000 or more shall
31 make all payments required by rules of the Department by
32 electronic funds transfer. Beginning October 1, 1995, a
33 taxpayer who has an average monthly tax liability of $50,000
34 or more shall make all payments required by rules of the
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1 Department by electronic funds transfer. The term "average
2 monthly tax liability" means the sum of the taxpayer's
3 liabilities under this Act, and under all other State and
4 local occupation and use tax laws administered by the
5 Department, for the immediately preceding calendar year
6 divided by 12.
7 Before August 1 of each year beginning in 1993, the
8 Department shall notify all taxpayers required to make
9 payments by electronic funds transfer. All taxpayers required
10 to make payments by electronic funds transfer shall make
11 those payments for a minimum of one year beginning on October
12 1.
13 Any taxpayer not required to make payments by electronic
14 funds transfer may make payments by electronic funds transfer
15 with the permission of the Department.
16 All taxpayers required to make payment by electronic
17 funds transfer and any taxpayers authorized to voluntarily
18 make payments by electronic funds transfer shall make those
19 payments in the manner authorized by the Department.
20 The Department shall adopt such rules as are necessary to
21 effectuate a program of electronic funds transfer and the
22 requirements of this Section.
23 If the taxpayer's average monthly tax liability to the
24 Department under this Act, the Retailers' Occupation Tax Act,
25 the Service Occupation Tax Act, the Service Use Tax Act was
26 $10,000 or more during the preceding 4 complete calendar
27 quarters, he shall file a return with the Department each
28 month by the 20th day of the month next following the month
29 during which such tax liability is incurred and shall make
30 payments to the Department on or before the 7th, 15th, 22nd
31 and last day of the month during which such liability is
32 incurred. If the month during which such tax liability is
33 incurred began prior to January 1, 1985, each payment shall
34 be in an amount equal to 1/4 of the taxpayer's actual
-20- LRB9001279PTpkam
1 liability for the month or an amount set by the Department
2 not to exceed 1/4 of the average monthly liability of the
3 taxpayer to the Department for the preceding 4 complete
4 calendar quarters (excluding the month of highest liability
5 and the month of lowest liability in such 4 quarter period).
6 If the month during which such tax liability is incurred
7 begins on or after January 1, 1985, and prior to January 1,
8 1987, each payment shall be in an amount equal to 22.5% of
9 the taxpayer's actual liability for the month or 27.5% of the
10 taxpayer's liability for the same calendar month of the
11 preceding year. If the month during which such tax liability
12 is incurred begins on or after January 1, 1987, and prior to
13 January 1, 1988, each payment shall be in an amount equal to
14 22.5% of the taxpayer's actual liability for the month or
15 26.25% of the taxpayer's liability for the same calendar
16 month of the preceding year. If the month during which such
17 tax liability is incurred begins on or after January 1, 1988,
18 and prior to January 1, 1989, or begins on or after January
19 1, 1996, each payment shall be in an amount equal to 22.5% of
20 the taxpayer's actual liability for the month or 25% of the
21 taxpayer's liability for the same calendar month of the
22 preceding year. If the month during which such tax liability
23 is incurred begins on or after January 1, 1989, and prior to
24 January 1, 1996, each payment shall be in an amount equal to
25 22.5% of the taxpayer's actual liability for the month or 25%
26 of the taxpayer's liability for the same calendar month of
27 the preceding year or 100% of the taxpayer's actual liability
28 for the quarter monthly reporting period. The amount of such
29 quarter monthly payments shall be credited against the final
30 tax liability of the taxpayer's return for that month. Once
31 applicable, the requirement of the making of quarter monthly
32 payments to the Department shall continue until such
33 taxpayer's average monthly liability to the Department during
34 the preceding 4 complete calendar quarters (excluding the
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1 month of highest liability and the month of lowest liability)
2 is less than $9,000, or until such taxpayer's average monthly
3 liability to the Department as computed for each calendar
4 quarter of the 4 preceding complete calendar quarter period
5 is less than $10,000. However, if a taxpayer can show the
6 Department that a substantial change in the taxpayer's
7 business has occurred which causes the taxpayer to anticipate
8 that his average monthly tax liability for the reasonably
9 foreseeable future will fall below $10,000, then such
10 taxpayer may petition the Department for change in such
11 taxpayer's reporting status. The Department shall change
12 such taxpayer's reporting status unless it finds that such
13 change is seasonal in nature and not likely to be long term.
14 If any such quarter monthly payment is not paid at the time
15 or in the amount required by this Section, then the taxpayer
16 shall be liable for penalties and interest on the difference
17 between the minimum amount due and the amount of such quarter
18 monthly payment actually and timely paid, except insofar as
19 the taxpayer has previously made payments for that month to
20 the Department in excess of the minimum payments previously
21 due as provided in this Section. The Department shall make
22 reasonable rules and regulations to govern the quarter
23 monthly payment amount and quarter monthly payment dates for
24 taxpayers who file on other than a calendar monthly basis.
25 If any such payment provided for in this Section exceeds
26 the taxpayer's liabilities under this Act, the Retailers'
27 Occupation Tax Act, the Service Occupation Tax Act and the
28 Service Use Tax Act, as shown by an original monthly return,
29 the Department shall issue to the taxpayer a credit
30 memorandum no later than 30 days after the date of payment,
31 which memorandum may be submitted by the taxpayer to the
32 Department in payment of tax liability subsequently to be
33 remitted by the taxpayer to the Department or be assigned by
34 the taxpayer to a similar taxpayer under this Act, the
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1 Retailers' Occupation Tax Act, the Service Occupation Tax Act
2 or the Service Use Tax Act, in accordance with reasonable
3 rules and regulations to be prescribed by the Department,
4 except that if such excess payment is shown on an original
5 monthly return and is made after December 31, 1986, no credit
6 memorandum shall be issued, unless requested by the taxpayer.
7 If no such request is made, the taxpayer may credit such
8 excess payment against tax liability subsequently to be
9 remitted by the taxpayer to the Department under this Act,
10 the Retailers' Occupation Tax Act, the Service Occupation Tax
11 Act or the Service Use Tax Act, in accordance with reasonable
12 rules and regulations prescribed by the Department. If the
13 Department subsequently determines that all or any part of
14 the credit taken was not actually due to the taxpayer, the
15 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
16 by 2.1% or 1.75% of the difference between the credit taken
17 and that actually due, and the taxpayer shall be liable for
18 penalties and interest on such difference.
19 If the retailer is otherwise required to file a monthly
20 return and if the retailer's average monthly tax liability to
21 the Department does not exceed $200, the Department may
22 authorize his returns to be filed on a quarter annual basis,
23 with the return for January, February, and March of a given
24 year being due by April 20 of such year; with the return for
25 April, May and June of a given year being due by July 20 of
26 such year; with the return for July, August and September of
27 a given year being due by October 20 of such year, and with
28 the return for October, November and December of a given year
29 being due by January 20 of the following year.
30 If the retailer is otherwise required to file a monthly
31 or quarterly return and if the retailer's average monthly tax
32 liability to the Department does not exceed $50, the
33 Department may authorize his returns to be filed on an annual
34 basis, with the return for a given year being due by January
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1 20 of the following year.
2 Such quarter annual and annual returns, as to form and
3 substance, shall be subject to the same requirements as
4 monthly returns.
5 Notwithstanding any other provision in this Act
6 concerning the time within which a retailer may file his
7 return, in the case of any retailer who ceases to engage in a
8 kind of business which makes him responsible for filing
9 returns under this Act, such retailer shall file a final
10 return under this Act with the Department not more than one
11 month after discontinuing such business.
12 In addition, with respect to motor vehicles, watercraft,
13 aircraft, and trailers that are required to be registered
14 with an agency of this State, every retailer selling this
15 kind of tangible personal property shall file, with the
16 Department, upon a form to be prescribed and supplied by the
17 Department, a separate return for each such item of tangible
18 personal property which the retailer sells, except that
19 where, in the same transaction, a retailer of aircraft,
20 watercraft, motor vehicles or trailers transfers more than
21 one aircraft, watercraft, motor vehicle or trailer to another
22 aircraft, watercraft, motor vehicle or trailer retailer for
23 the purpose of resale, that seller for resale may report the
24 transfer of all the aircraft, watercraft, motor vehicles or
25 trailers involved in that transaction to the Department on
26 the same uniform invoice-transaction reporting return form.
27 For purposes of this Section, "watercraft" means a Class 2,
28 Class 3, or Class 4 watercraft as defined in Section 3-2 of
29 the Boat Registration and Safety Act, a personal watercraft,
30 or any boat equipped with an inboard motor.
31 The transaction reporting return in the case of motor
32 vehicles or trailers that are required to be registered with
33 an agency of this State, shall be the same document as the
34 Uniform Invoice referred to in Section 5-402 of the Illinois
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1 Vehicle Code and must show the name and address of the
2 seller; the name and address of the purchaser; the amount of
3 the selling price including the amount allowed by the
4 retailer for traded-in property, if any; the amount allowed
5 by the retailer for the traded-in tangible personal property,
6 if any, to the extent to which Section 2 of this Act allows
7 an exemption for the value of traded-in property; the balance
8 payable after deducting such trade-in allowance from the
9 total selling price; the amount of tax due from the retailer
10 with respect to such transaction; the amount of tax collected
11 from the purchaser by the retailer on such transaction (or
12 satisfactory evidence that such tax is not due in that
13 particular instance, if that is claimed to be the fact); the
14 place and date of the sale; a sufficient identification of
15 the property sold; such other information as is required in
16 Section 5-402 of the Illinois Vehicle Code, and such other
17 information as the Department may reasonably require.
18 The transaction reporting return in the case of
19 watercraft and aircraft must show the name and address of the
20 seller; the name and address of the purchaser; the amount of
21 the selling price including the amount allowed by the
22 retailer for traded-in property, if any; the amount allowed
23 by the retailer for the traded-in tangible personal property,
24 if any, to the extent to which Section 2 of this Act allows
25 an exemption for the value of traded-in property; the balance
26 payable after deducting such trade-in allowance from the
27 total selling price; the amount of tax due from the retailer
28 with respect to such transaction; the amount of tax collected
29 from the purchaser by the retailer on such transaction (or
30 satisfactory evidence that such tax is not due in that
31 particular instance, if that is claimed to be the fact); the
32 place and date of the sale, a sufficient identification of
33 the property sold, and such other information as the
34 Department may reasonably require.
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1 Such transaction reporting return shall be filed not
2 later than 20 days after the date of delivery of the item
3 that is being sold, but may be filed by the retailer at any
4 time sooner than that if he chooses to do so. The
5 transaction reporting return and tax remittance or proof of
6 exemption from the tax that is imposed by this Act may be
7 transmitted to the Department by way of the State agency with
8 which, or State officer with whom, the tangible personal
9 property must be titled or registered (if titling or
10 registration is required) if the Department and such agency
11 or State officer determine that this procedure will expedite
12 the processing of applications for title or registration.
13 With each such transaction reporting return, the retailer
14 shall remit the proper amount of tax due (or shall submit
15 satisfactory evidence that the sale is not taxable if that is
16 the case), to the Department or its agents, whereupon the
17 Department shall issue, in the purchaser's name, a tax
18 receipt (or a certificate of exemption if the Department is
19 satisfied that the particular sale is tax exempt) which such
20 purchaser may submit to the agency with which, or State
21 officer with whom, he must title or register the tangible
22 personal property that is involved (if titling or
23 registration is required) in support of such purchaser's
24 application for an Illinois certificate or other evidence of
25 title or registration to such tangible personal property.
26 No retailer's failure or refusal to remit tax under this
27 Act precludes a user, who has paid the proper tax to the
28 retailer, from obtaining his certificate of title or other
29 evidence of title or registration (if titling or registration
30 is required) upon satisfying the Department that such user
31 has paid the proper tax (if tax is due) to the retailer. The
32 Department shall adopt appropriate rules to carry out the
33 mandate of this paragraph.
34 If the user who would otherwise pay tax to the retailer
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1 wants the transaction reporting return filed and the payment
2 of tax or proof of exemption made to the Department before
3 the retailer is willing to take these actions and such user
4 has not paid the tax to the retailer, such user may certify
5 to the fact of such delay by the retailer, and may (upon the
6 Department being satisfied of the truth of such
7 certification) transmit the information required by the
8 transaction reporting return and the remittance for tax or
9 proof of exemption directly to the Department and obtain his
10 tax receipt or exemption determination, in which event the
11 transaction reporting return and tax remittance (if a tax
12 payment was required) shall be credited by the Department to
13 the proper retailer's account with the Department, but
14 without the 2.1% or 1.75% discount provided for in this
15 Section being allowed. When the user pays the tax directly
16 to the Department, he shall pay the tax in the same amount
17 and in the same form in which it would be remitted if the tax
18 had been remitted to the Department by the retailer.
19 Where a retailer collects the tax with respect to the
20 selling price of tangible personal property which he sells
21 and the purchaser thereafter returns such tangible personal
22 property and the retailer refunds the selling price thereof
23 to the purchaser, such retailer shall also refund, to the
24 purchaser, the tax so collected from the purchaser. When
25 filing his return for the period in which he refunds such tax
26 to the purchaser, the retailer may deduct the amount of the
27 tax so refunded by him to the purchaser from any other use
28 tax which such retailer may be required to pay or remit to
29 the Department, as shown by such return, if the amount of the
30 tax to be deducted was previously remitted to the Department
31 by such retailer. If the retailer has not previously
32 remitted the amount of such tax to the Department, he is
33 entitled to no deduction under this Act upon refunding such
34 tax to the purchaser.
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1 Any retailer filing a return under this Section shall
2 also include (for the purpose of paying tax thereon) the
3 total tax covered by such return upon the selling price of
4 tangible personal property purchased by him at retail from a
5 retailer, but as to which the tax imposed by this Act was not
6 collected from the retailer filing such return, and such
7 retailer shall remit the amount of such tax to the Department
8 when filing such return.
9 If experience indicates such action to be practicable,
10 the Department may prescribe and furnish a combination or
11 joint return which will enable retailers, who are required to
12 file returns hereunder and also under the Retailers'
13 Occupation Tax Act, to furnish all the return information
14 required by both Acts on the one form.
15 Where the retailer has more than one business registered
16 with the Department under separate registration under this
17 Act, such retailer may not file each return that is due as a
18 single return covering all such registered businesses, but
19 shall file separate returns for each such registered
20 business.
21 Beginning January 1, 1990, each month the Department
22 shall pay into the State and Local Sales Tax Reform Fund, a
23 special fund in the State Treasury which is hereby created,
24 the net revenue realized for the preceding month from the 1%
25 tax on sales of food for human consumption which is to be
26 consumed off the premises where it is sold (other than
27 alcoholic beverages, soft drinks and food which has been
28 prepared for immediate consumption) and prescription and
29 nonprescription medicines, drugs, medical appliances and
30 insulin, urine testing materials, syringes and needles used
31 by diabetics.
32 Beginning January 1, 1990, each month the Department
33 shall pay into the County and Mass Transit District Fund 4%
34 of the net revenue realized for the preceding month from the
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1 6.25% general rate on the selling price of tangible personal
2 property which is purchased outside Illinois at retail from a
3 retailer and which is titled or registered by an agency of
4 this State's government.
5 Beginning January 1, 1990, each month the Department
6 shall pay into the State and Local Sales Tax Reform Fund, a
7 special fund in the State Treasury, 20% of the net revenue
8 realized for the preceding month from the 6.25% general rate
9 on the selling price of tangible personal property, other
10 than tangible personal property which is purchased outside
11 Illinois at retail from a retailer and which is titled or
12 registered by an agency of this State's government.
13 Beginning January 1, 1990, each month the Department
14 shall pay into the Local Government Tax Fund 16% of the net
15 revenue realized for the preceding month from the 6.25%
16 general rate on the selling price of tangible personal
17 property which is purchased outside Illinois at retail from a
18 retailer and which is titled or registered by an agency of
19 this State's government.
20 Of the remainder of the moneys received by the Department
21 pursuant to this Act, (a) 1.75% thereof shall be paid into
22 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
23 and on and after July 1, 1989, 3.8% thereof shall be paid
24 into the Build Illinois Fund; provided, however, that if in
25 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
26 as the case may be, of the moneys received by the Department
27 and required to be paid into the Build Illinois Fund pursuant
28 to Section 3 of the Retailers' Occupation Tax Act, Section 9
29 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
30 Section 9 of the Service Occupation Tax Act, such Acts being
31 hereinafter called the "Tax Acts" and such aggregate of 2.2%
32 or 3.8%, as the case may be, of moneys being hereinafter
33 called the "Tax Act Amount", and (2) the amount transferred
34 to the Build Illinois Fund from the State and Local Sales Tax
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1 Reform Fund shall be less than the Annual Specified Amount
2 (as defined in Section 3 of the Retailers' Occupation Tax
3 Act), an amount equal to the difference shall be immediately
4 paid into the Build Illinois Fund from other moneys received
5 by the Department pursuant to the Tax Acts; and further
6 provided, that if on the last business day of any month the
7 sum of (1) the Tax Act Amount required to be deposited into
8 the Build Illinois Bond Account in the Build Illinois Fund
9 during such month and (2) the amount transferred during such
10 month to the Build Illinois Fund from the State and Local
11 Sales Tax Reform Fund shall have been less than 1/12 of the
12 Annual Specified Amount, an amount equal to the difference
13 shall be immediately paid into the Build Illinois Fund from
14 other moneys received by the Department pursuant to the Tax
15 Acts; and, further provided, that in no event shall the
16 payments required under the preceding proviso result in
17 aggregate payments into the Build Illinois Fund pursuant to
18 this clause (b) for any fiscal year in excess of the greater
19 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
20 for such fiscal year; and, further provided, that the amounts
21 payable into the Build Illinois Fund under this clause (b)
22 shall be payable only until such time as the aggregate amount
23 on deposit under each trust indenture securing Bonds issued
24 and outstanding pursuant to the Build Illinois Bond Act is
25 sufficient, taking into account any future investment income,
26 to fully provide, in accordance with such indenture, for the
27 defeasance of or the payment of the principal of, premium, if
28 any, and interest on the Bonds secured by such indenture and
29 on any Bonds expected to be issued thereafter and all fees
30 and costs payable with respect thereto, all as certified by
31 the Director of the Bureau of the Budget. If on the last
32 business day of any month in which Bonds are outstanding
33 pursuant to the Build Illinois Bond Act, the aggregate of the
34 moneys deposited in the Build Illinois Bond Account in the
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1 Build Illinois Fund in such month shall be less than the
2 amount required to be transferred in such month from the
3 Build Illinois Bond Account to the Build Illinois Bond
4 Retirement and Interest Fund pursuant to Section 13 of the
5 Build Illinois Bond Act, an amount equal to such deficiency
6 shall be immediately paid from other moneys received by the
7 Department pursuant to the Tax Acts to the Build Illinois
8 Fund; provided, however, that any amounts paid to the Build
9 Illinois Fund in any fiscal year pursuant to this sentence
10 shall be deemed to constitute payments pursuant to clause (b)
11 of the preceding sentence and shall reduce the amount
12 otherwise payable for such fiscal year pursuant to clause (b)
13 of the preceding sentence. The moneys received by the
14 Department pursuant to this Act and required to be deposited
15 into the Build Illinois Fund are subject to the pledge, claim
16 and charge set forth in Section 12 of the Build Illinois Bond
17 Act.
18 Subject to payment of amounts into the Build Illinois
19 Fund as provided in the preceding paragraph or in any
20 amendment thereto hereafter enacted, the following specified
21 monthly installment of the amount requested in the
22 certificate of the Chairman of the Metropolitan Pier and
23 Exposition Authority provided under Section 8.25f of the
24 State Finance Act, but not in excess of the sums designated
25 as "Total Deposit", shall be deposited in the aggregate from
26 collections under Section 9 of the Use Tax Act, Section 9 of
27 the Service Use Tax Act, Section 9 of the Service Occupation
28 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
29 into the McCormick Place Expansion Project Fund in the
30 specified fiscal years.
31 Fiscal Year Total Deposit
32 1993 $0
33 1994 53,000,000
34 1995 58,000,000
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1 1996 61,000,000
2 1997 64,000,000
3 1998 68,000,000
4 1999 71,000,000
5 2000 75,000,000
6 2001 80,000,000
7 2002 84,000,000
8 2003 89,000,000
9 2004 93,000,000
10 2005 97,000,000
11 2006 102,000,000
12 2007 and 106,000,000
13 each fiscal year
14 thereafter that bonds
15 are outstanding under
16 Section 13.2 of the
17 Metropolitan Pier and
18 Exposition Authority
19 Act, but not after fiscal year 2029.
20 Beginning July 20, 1993 and in each month of each fiscal
21 year thereafter, one-eighth of the amount requested in the
22 certificate of the Chairman of the Metropolitan Pier and
23 Exposition Authority for that fiscal year, less the amount
24 deposited into the McCormick Place Expansion Project Fund by
25 the State Treasurer in the respective month under subsection
26 (g) of Section 13 of the Metropolitan Pier and Exposition
27 Authority Act, plus cumulative deficiencies in the deposits
28 required under this Section for previous months and years,
29 shall be deposited into the McCormick Place Expansion Project
30 Fund, until the full amount requested for the fiscal year,
31 but not in excess of the amount specified above as "Total
32 Deposit", has been deposited.
33 Subject to payment of amounts into the Build Illinois
34 Fund and the McCormick Place Expansion Project Fund pursuant
-32- LRB9001279PTpkam
1 to the preceding paragraphs or in any amendment thereto
2 hereafter enacted, each month the Department shall pay into
3 the Local Government Distributive Fund .4% of the net revenue
4 realized for the preceding month from the 5% general rate, or
5 .4% of 80% of the net revenue realized for the preceding
6 month from the 6.25% general rate, as the case may be, on the
7 selling price of tangible personal property which amount
8 shall, subject to appropriation, be distributed as provided
9 in Section 2 of the State Revenue Sharing Act. No payments or
10 distributions pursuant to this paragraph shall be made if the
11 tax imposed by this Act on photoprocessing products is
12 declared unconstitutional, or if the proceeds from such tax
13 are unavailable for distribution because of litigation.
14 Subject to payment of amounts into the Build Illinois
15 Fund, the McCormick Place Expansion Project Fund, and the
16 Local Government Distributive Fund pursuant to the preceding
17 paragraphs or in any amendments thereto hereafter enacted,
18 beginning July 1, 1993, the Department shall each month pay
19 into the Illinois Tax Increment Fund 0.27% of 80% of the net
20 revenue realized for the preceding month from the 6.25%
21 general rate on the selling price of tangible personal
22 property.
23 Of the remainder of the moneys received by the Department
24 pursuant to this Act and the moneys received by the
25 Department from the 80% of the 8.25% rate of use tax imposed
26 in Section 20 of the Qualified Technological Equipment
27 Leasing Occupation and Use Tax Act, 75% thereof shall be paid
28 into the State Treasury and 25% shall be reserved in a
29 special account and used only for the transfer to the Common
30 School Fund as part of the monthly transfer from the General
31 Revenue Fund in accordance with Section 8a of the State
32 Finance Act.
33 As soon as possible after the first day of each month,
34 upon certification of the Department of Revenue, the
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1 Comptroller shall order transferred and the Treasurer shall
2 transfer from the General Revenue Fund to the Motor Fuel Tax
3 Fund an amount equal to 1.7% of 80% of the net revenue
4 realized under this Act for the second preceding month;
5 except that this transfer shall not be made for the months
6 February through June of 1992.
7 Net revenue realized for a month shall be the revenue
8 collected by the State pursuant to this Act, less the amount
9 paid out during that month as refunds to taxpayers for
10 overpayment of liability.
11 For greater simplicity of administration, manufacturers,
12 importers and wholesalers whose products are sold at retail
13 in Illinois by numerous retailers, and who wish to do so, may
14 assume the responsibility for accounting and paying to the
15 Department all tax accruing under this Act with respect to
16 such sales, if the retailers who are affected do not make
17 written objection to the Department to this arrangement.
18 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
19 90-491, eff. 1-1-99; 90-612, eff. 7-8-98.)
20 (35 ILCS 105/9.5 new)
21 Sec. 9.5. Refund; leaseback transaction. A purchaser of
22 qualified technological equipment, as defined in Section 5 of
23 the Qualified Technological Equipment Leasing Occupation and
24 Use Tax Act, may obtain a refund of all tax paid to a seller
25 under this Act or any other tax administered by the
26 Department if the purchaser sells the property to a rentor
27 under a bona fide sale and leaseback transaction (to such
28 purchaser) within 90 days of the first functional use of the
29 property. The purchaser shall request the refund from the
30 seller to whom he or she has paid the tax in the same manner
31 and subject to the same requirements as other refunds
32 provided in Section 9 of this Act. For purposes of this
33 Section, the first functional use of property shall be the
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1 use for which the property is intended, which shall, in the
2 absence of other evidence, be presumed to be the date of
3 deliver of the property.
4 Section 115. The Service Use Tax Act is amended by
5 changing Section 3-5 as follows:
6 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
7 Sec. 3-5. Exemptions. Use of the following tangible
8 personal property is exempt from the tax imposed by this Act:
9 (1) Personal property purchased from a corporation,
10 society, association, foundation, institution, or
11 organization, other than a limited liability company, that is
12 organized and operated as a not-for-profit service enterprise
13 for the benefit of persons 65 years of age or older if the
14 personal property was not purchased by the enterprise for the
15 purpose of resale by the enterprise.
16 (2) Personal property purchased by a non-profit Illinois
17 county fair association for use in conducting, operating, or
18 promoting the county fair.
19 (3) Personal property purchased by a not-for-profit
20 music or dramatic arts organization that establishes, by
21 proof required by the Department by rule, that it has
22 received an exemption under Section 501(c)(3) of the Internal
23 Revenue Code and that is organized and operated for the
24 presentation of live public performances of musical or
25 theatrical works on a regular basis.
26 (4) Legal tender, currency, medallions, or gold or
27 silver coinage issued by the State of Illinois, the
28 government of the United States of America, or the government
29 of any foreign country, and bullion.
30 (5) Graphic arts machinery and equipment, including
31 repair and replacement parts, both new and used, and
32 including that manufactured on special order or purchased for
-35- LRB9001279PTpkam
1 lease, certified by the purchaser to be used primarily for
2 graphic arts production.
3 (6) Personal property purchased from a teacher-sponsored
4 student organization affiliated with an elementary or
5 secondary school located in Illinois.
6 (7) Farm machinery and equipment, both new and used,
7 including that manufactured on special order, certified by
8 the purchaser to be used primarily for production agriculture
9 or State or federal agricultural programs, including
10 individual replacement parts for the machinery and equipment,
11 including machinery and equipment purchased for lease, and
12 including implements of husbandry defined in Section 1-130 of
13 the Illinois Vehicle Code, farm machinery and agricultural
14 chemical and fertilizer spreaders, and nurse wagons required
15 to be registered under Section 3-809 of the Illinois Vehicle
16 Code, but excluding other motor vehicles required to be
17 registered under the Illinois Vehicle Code. Horticultural
18 polyhouses or hoop houses used for propagating, growing, or
19 overwintering plants shall be considered farm machinery and
20 equipment under this item (7). Agricultural chemical tender
21 tanks and dry boxes shall include units sold separately from
22 a motor vehicle required to be licensed and units sold
23 mounted on a motor vehicle required to be licensed if the
24 selling price of the tender is separately stated.
25 Farm machinery and equipment shall include precision
26 farming equipment that is installed or purchased to be
27 installed on farm machinery and equipment including, but not
28 limited to, tractors, harvesters, sprayers, planters,
29 seeders, or spreaders. Precision farming equipment includes,
30 but is not limited to, soil testing sensors, computers,
31 monitors, software, global positioning and mapping systems,
32 and other such equipment.
33 Farm machinery and equipment also includes computers,
34 sensors, software, and related equipment used primarily in
-36- LRB9001279PTpkam
1 the computer-assisted operation of production agriculture
2 facilities, equipment, and activities such as, but not
3 limited to, the collection, monitoring, and correlation of
4 animal and crop data for the purpose of formulating animal
5 diets and agricultural chemicals. This item (7) is exempt
6 from the provisions of Section 3-75.
7 (8) Fuel and petroleum products sold to or used by an
8 air common carrier, certified by the carrier to be used for
9 consumption, shipment, or storage in the conduct of its
10 business as an air common carrier, for a flight destined for
11 or returning from a location or locations outside the United
12 States without regard to previous or subsequent domestic
13 stopovers.
14 (9) Proceeds of mandatory service charges separately
15 stated on customers' bills for the purchase and consumption
16 of food and beverages acquired as an incident to the purchase
17 of a service from a serviceman, to the extent that the
18 proceeds of the service charge are in fact turned over as
19 tips or as a substitute for tips to the employees who
20 participate directly in preparing, serving, hosting or
21 cleaning up the food or beverage function with respect to
22 which the service charge is imposed.
23 (10) Oil field exploration, drilling, and production
24 equipment, including (i) rigs and parts of rigs, rotary rigs,
25 cable tool rigs, and workover rigs, (ii) pipe and tubular
26 goods, including casing and drill strings, (iii) pumps and
27 pump-jack units, (iv) storage tanks and flow lines, (v) any
28 individual replacement part for oil field exploration,
29 drilling, and production equipment, and (vi) machinery and
30 equipment purchased for lease; but excluding motor vehicles
31 required to be registered under the Illinois Vehicle Code.
32 (11) Proceeds from the sale of photoprocessing machinery
33 and equipment, including repair and replacement parts, both
34 new and used, including that manufactured on special order,
-37- LRB9001279PTpkam
1 certified by the purchaser to be used primarily for
2 photoprocessing, and including photoprocessing machinery and
3 equipment purchased for lease.
4 (12) Coal exploration, mining, offhighway hauling,
5 processing, maintenance, and reclamation equipment, including
6 replacement parts and equipment, and including equipment
7 purchased for lease, but excluding motor vehicles required to
8 be registered under the Illinois Vehicle Code.
9 (13) Semen used for artificial insemination of livestock
10 for direct agricultural production.
11 (14) Horses, or interests in horses, registered with and
12 meeting the requirements of any of the Arabian Horse Club
13 Registry of America, Appaloosa Horse Club, American Quarter
14 Horse Association, United States Trotting Association, or
15 Jockey Club, as appropriate, used for purposes of breeding or
16 racing for prizes.
17 (15) Computers and communications equipment utilized for
18 any hospital purpose and equipment used in the diagnosis,
19 analysis, or treatment of hospital patients purchased by a
20 lessor who leases the equipment, under a lease of one year or
21 longer executed or in effect at the time the lessor would
22 otherwise be subject to the tax imposed by this Act, to a
23 hospital that has been issued an active tax exemption
24 identification number by the Department under Section 1g of
25 the Retailers' Occupation Tax Act. If the equipment is leased
26 in a manner that does not qualify for this exemption or is
27 used in any other non-exempt manner, the lessor shall be
28 liable for the tax imposed under this Act or the Use Tax Act,
29 as the case may be, based on the fair market value of the
30 property at the time the non-qualifying use occurs. No
31 lessor shall collect or attempt to collect an amount (however
32 designated) that purports to reimburse that lessor for the
33 tax imposed by this Act or the Use Tax Act, as the case may
34 be, if the tax has not been paid by the lessor. If a lessor
-38- LRB9001279PTpkam
1 improperly collects any such amount from the lessee, the
2 lessee shall have a legal right to claim a refund of that
3 amount from the lessor. If, however, that amount is not
4 refunded to the lessee for any reason, the lessor is liable
5 to pay that amount to the Department. This paragraph is
6 exempt from the provisions of Section 3-75.
7 (16) Personal property purchased by a lessor who leases
8 the property, under a lease of one year or longer executed or
9 in effect at the time the lessor would otherwise be subject
10 to the tax imposed by this Act, to a governmental body that
11 has been issued an active tax exemption identification number
12 by the Department under Section 1g of the Retailers'
13 Occupation Tax Act. If the property is leased in a manner
14 that does not qualify for this exemption or is used in any
15 other non-exempt manner, the lessor shall be liable for the
16 tax imposed under this Act or the Use Tax Act, as the case
17 may be, based on the fair market value of the property at the
18 time the non-qualifying use occurs. No lessor shall collect
19 or attempt to collect an amount (however designated) that
20 purports to reimburse that lessor for the tax imposed by this
21 Act or the Use Tax Act, as the case may be, if the tax has
22 not been paid by the lessor. If a lessor improperly collects
23 any such amount from the lessee, the lessee shall have a
24 legal right to claim a refund of that amount from the lessor.
25 If, however, that amount is not refunded to the lessee for
26 any reason, the lessor is liable to pay that amount to the
27 Department. This paragraph is exempt from the provisions of
28 Section 3-75.
29 (17) Beginning with taxable years ending on or after
30 December 31, 1995 and ending with taxable years ending on or
31 before December 31, 2004, personal property that is donated
32 for disaster relief to be used in a State or federally
33 declared disaster area in Illinois or bordering Illinois by a
34 manufacturer or retailer that is registered in this State to
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1 a corporation, society, association, foundation, or
2 institution that has been issued a sales tax exemption
3 identification number by the Department that assists victims
4 of the disaster who reside within the declared disaster area.
5 (18) Beginning with taxable years ending on or after
6 December 31, 1995 and ending with taxable years ending on or
7 before December 31, 2004, personal property that is used in
8 the performance of infrastructure repairs in this State,
9 including but not limited to municipal roads and streets,
10 access roads, bridges, sidewalks, waste disposal systems,
11 water and sewer line extensions, water distribution and
12 purification facilities, storm water drainage and retention
13 facilities, and sewage treatment facilities, resulting from a
14 State or federally declared disaster in Illinois or bordering
15 Illinois when such repairs are initiated on facilities
16 located in the declared disaster area within 6 months after
17 the disaster.
18 (19) Beginning July 1, 1999, qualified technological
19 equipment purchased for lease by lessors under leases subject
20 to the Qualified Technological Equipment Leasing Occupation
21 and Use Tax Act. However, this exemption will last only as
22 long as the property continues to be leased by the lessor.
23 When the property is no longer used for lease and the
24 property reverts to the lessor, the property is subject to
25 the tax imposed by this Act upon the fair market value of the
26 property on the date of the reversion. The property will not
27 be considered to revert to the lessor as long as the lessor
28 holds the property in his or her lease inventory and does not
29 otherwise use the property, except for demonstration
30 purposes. In addition, property held in the lessor's lease
31 inventory that is subsequently leased for a period of less
32 than one year will not be considered to revert to the lessor
33 if the property is returned to lease inventory at the
34 termination of the lease. This paragraph is exempt from the
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1 provisions of Section 3-75.
2 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
3 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
4 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
5 eff. 12-12-97; 90-605, eff. 6-30-98.)
6 Section 120. The Service Occupation Tax Act is amended
7 by changing Section 3-5 as follows:
8 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
9 Sec. 3-5. Exemptions. The following tangible personal
10 property is exempt from the tax imposed by this Act:
11 (1) Personal property sold by a corporation, society,
12 association, foundation, institution, or organization, other
13 than a limited liability company, that is organized and
14 operated as a not-for-profit service enterprise for the
15 benefit of persons 65 years of age or older if the personal
16 property was not purchased by the enterprise for the purpose
17 of resale by the enterprise.
18 (2) Personal property purchased by a not-for-profit
19 Illinois county fair association for use in conducting,
20 operating, or promoting the county fair.
21 (3) Personal property purchased by any not-for-profit
22 music or dramatic arts organization that establishes, by
23 proof required by the Department by rule, that it has
24 received an exemption under Section 501(c)(3) of the
25 Internal Revenue Code and that is organized and operated for
26 the presentation of live public performances of musical or
27 theatrical works on a regular basis.
28 (4) Legal tender, currency, medallions, or gold or
29 silver coinage issued by the State of Illinois, the
30 government of the United States of America, or the government
31 of any foreign country, and bullion.
32 (5) Graphic arts machinery and equipment, including
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1 repair and replacement parts, both new and used, and
2 including that manufactured on special order or purchased for
3 lease, certified by the purchaser to be used primarily for
4 graphic arts production.
5 (6) Personal property sold by a teacher-sponsored
6 student organization affiliated with an elementary or
7 secondary school located in Illinois.
8 (7) Farm machinery and equipment, both new and used,
9 including that manufactured on special order, certified by
10 the purchaser to be used primarily for production agriculture
11 or State or federal agricultural programs, including
12 individual replacement parts for the machinery and equipment,
13 including machinery and equipment purchased for lease, and
14 including implements of husbandry defined in Section 1-130 of
15 the Illinois Vehicle Code, farm machinery and agricultural
16 chemical and fertilizer spreaders, and nurse wagons required
17 to be registered under Section 3-809 of the Illinois Vehicle
18 Code, but excluding other motor vehicles required to be
19 registered under the Illinois Vehicle Code. Horticultural
20 polyhouses or hoop houses used for propagating, growing, or
21 overwintering plants shall be considered farm machinery and
22 equipment under this item (7). Agricultural chemical tender
23 tanks and dry boxes shall include units sold separately from
24 a motor vehicle required to be licensed and units sold
25 mounted on a motor vehicle required to be licensed if the
26 selling price of the tender is separately stated.
27 Farm machinery and equipment shall include precision
28 farming equipment that is installed or purchased to be
29 installed on farm machinery and equipment including, but not
30 limited to, tractors, harvesters, sprayers, planters,
31 seeders, or spreaders. Precision farming equipment includes,
32 but is not limited to, soil testing sensors, computers,
33 monitors, software, global positioning and mapping systems,
34 and other such equipment.
-42- LRB9001279PTpkam
1 Farm machinery and equipment also includes computers,
2 sensors, software, and related equipment used primarily in
3 the computer-assisted operation of production agriculture
4 facilities, equipment, and activities such as, but not
5 limited to, the collection, monitoring, and correlation of
6 animal and crop data for the purpose of formulating animal
7 diets and agricultural chemicals. This item (7) is exempt
8 from the provisions of Section 3-75.
9 (8) Fuel and petroleum products sold to or used by an
10 air common carrier, certified by the carrier to be used for
11 consumption, shipment, or storage in the conduct of its
12 business as an air common carrier, for a flight destined for
13 or returning from a location or locations outside the United
14 States without regard to previous or subsequent domestic
15 stopovers.
16 (9) Proceeds of mandatory service charges separately
17 stated on customers' bills for the purchase and consumption
18 of food and beverages, to the extent that the proceeds of the
19 service charge are in fact turned over as tips or as a
20 substitute for tips to the employees who participate directly
21 in preparing, serving, hosting or cleaning up the food or
22 beverage function with respect to which the service charge is
23 imposed.
24 (10) Oil field exploration, drilling, and production
25 equipment, including (i) rigs and parts of rigs, rotary rigs,
26 cable tool rigs, and workover rigs, (ii) pipe and tubular
27 goods, including casing and drill strings, (iii) pumps and
28 pump-jack units, (iv) storage tanks and flow lines, (v) any
29 individual replacement part for oil field exploration,
30 drilling, and production equipment, and (vi) machinery and
31 equipment purchased for lease; but excluding motor vehicles
32 required to be registered under the Illinois Vehicle Code.
33 (11) Photoprocessing machinery and equipment, including
34 repair and replacement parts, both new and used, including
-43- LRB9001279PTpkam
1 that manufactured on special order, certified by the
2 purchaser to be used primarily for photoprocessing, and
3 including photoprocessing machinery and equipment purchased
4 for lease.
5 (12) Coal exploration, mining, offhighway hauling,
6 processing, maintenance, and reclamation equipment, including
7 replacement parts and equipment, and including equipment
8 purchased for lease, but excluding motor vehicles required to
9 be registered under the Illinois Vehicle Code.
10 (13) Food for human consumption that is to be consumed
11 off the premises where it is sold (other than alcoholic
12 beverages, soft drinks and food that has been prepared for
13 immediate consumption) and prescription and non-prescription
14 medicines, drugs, medical appliances, and insulin, urine
15 testing materials, syringes, and needles used by diabetics,
16 for human use, when purchased for use by a person receiving
17 medical assistance under Article 5 of the Illinois Public Aid
18 Code who resides in a licensed long-term care facility, as
19 defined in the Nursing Home Care Act.
20 (14) Semen used for artificial insemination of livestock
21 for direct agricultural production.
22 (15) Horses, or interests in horses, registered with and
23 meeting the requirements of any of the Arabian Horse Club
24 Registry of America, Appaloosa Horse Club, American Quarter
25 Horse Association, United States Trotting Association, or
26 Jockey Club, as appropriate, used for purposes of breeding or
27 racing for prizes.
28 (16) Computers and communications equipment utilized for
29 any hospital purpose and equipment used in the diagnosis,
30 analysis, or treatment of hospital patients sold to a lessor
31 who leases the equipment, under a lease of one year or longer
32 executed or in effect at the time of the purchase, to a
33 hospital that has been issued an active tax exemption
34 identification number by the Department under Section 1g of
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1 the Retailers' Occupation Tax Act. This paragraph is exempt
2 from the provisions of Section 3-55.
3 (17) Personal property sold to a lessor who leases the
4 property, under a lease of one year or longer executed or in
5 effect at the time of the purchase, to a governmental body
6 that has been issued an active tax exemption identification
7 number by the Department under Section 1g of the Retailers'
8 Occupation Tax Act. This paragraph is exempt from the
9 provisions of Section 3-55.
10 (18) Beginning with taxable years ending on or after
11 December 31, 1995 and ending with taxable years ending on or
12 before December 31, 2004, personal property that is donated
13 for disaster relief to be used in a State or federally
14 declared disaster area in Illinois or bordering Illinois by a
15 manufacturer or retailer that is registered in this State to
16 a corporation, society, association, foundation, or
17 institution that has been issued a sales tax exemption
18 identification number by the Department that assists victims
19 of the disaster who reside within the declared disaster area.
20 (19) Beginning with taxable years ending on or after
21 December 31, 1995 and ending with taxable years ending on or
22 before December 31, 2004, personal property that is used in
23 the performance of infrastructure repairs in this State,
24 including but not limited to municipal roads and streets,
25 access roads, bridges, sidewalks, waste disposal systems,
26 water and sewer line extensions, water distribution and
27 purification facilities, storm water drainage and retention
28 facilities, and sewage treatment facilities, resulting from a
29 State or federally declared disaster in Illinois or bordering
30 Illinois when such repairs are initiated on facilities
31 located in the declared disaster area within 6 months after
32 the disaster.
33 (20) Beginning July 1, 1999, qualified technological
34 equipment sold to lessors for lease under leases subject to
-45- LRB9001279PTpkam
1 the Qualified Technological Equipment Leasing Occupation and
2 Use Tax Act. This paragraph is exempt from the provisions of
3 Section 3-55.
4 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
5 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
6 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
7 eff. 12-12-97; 90-605, eff. 6-30-98.)
8 Section 125. The Retailers' Occupation Tax Act is
9 amended by adding Sections 1c-5 and 3.5 and changing
10 Sections 2-5 and 3 as follows:
11 (35 ILCS 120/1c-5 new)
12 Sec. 1c-5. Sale of used qualified technological
13 equipment by lessors. A person who is engaged in the
14 business of leasing qualified technological equipment under
15 leases subject to the Qualified Technological Equipment
16 Leasing Occupation and Use Tax Act and who, in connection
17 with that business, sells the property to a purchaser for his
18 or her use and not for the purpose of resale, is a retailer
19 engaged in the business of selling tangible personal property
20 at retail under this Act to the extent of the value of the
21 property sold.
22 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
23 Sec. 2-5. Exemptions. Gross receipts from proceeds from
24 the sale of the following tangible personal property are
25 exempt from the tax imposed by this Act:
26 (1) Farm chemicals.
27 (2) Farm machinery and equipment, both new and used,
28 including that manufactured on special order, certified by
29 the purchaser to be used primarily for production agriculture
30 or State or federal agricultural programs, including
31 individual replacement parts for the machinery and equipment,
-46- LRB9001279PTpkam
1 including machinery and equipment purchased for lease, and
2 including implements of husbandry defined in Section 1-130 of
3 the Illinois Vehicle Code, farm machinery and agricultural
4 chemical and fertilizer spreaders, and nurse wagons required
5 to be registered under Section 3-809 of the Illinois Vehicle
6 Code, but excluding other motor vehicles required to be
7 registered under the Illinois Vehicle Code. Horticultural
8 polyhouses or hoop houses used for propagating, growing, or
9 overwintering plants shall be considered farm machinery and
10 equipment under this item (2). Agricultural chemical tender
11 tanks and dry boxes shall include units sold separately from
12 a motor vehicle required to be licensed and units sold
13 mounted on a motor vehicle required to be licensed, if the
14 selling price of the tender is separately stated.
15 Farm machinery and equipment shall include precision
16 farming equipment that is installed or purchased to be
17 installed on farm machinery and equipment including, but not
18 limited to, tractors, harvesters, sprayers, planters,
19 seeders, or spreaders. Precision farming equipment includes,
20 but is not limited to, soil testing sensors, computers,
21 monitors, software, global positioning and mapping systems,
22 and other such equipment.
23 Farm machinery and equipment also includes computers,
24 sensors, software, and related equipment used primarily in
25 the computer-assisted operation of production agriculture
26 facilities, equipment, and activities such as, but not
27 limited to, the collection, monitoring, and correlation of
28 animal and crop data for the purpose of formulating animal
29 diets and agricultural chemicals. This item (7) is exempt
30 from the provisions of Section 3-75.
31 (3) Distillation machinery and equipment, sold as a unit
32 or kit, assembled or installed by the retailer, certified by
33 the user to be used only for the production of ethyl alcohol
34 that will be used for consumption as motor fuel or as a
-47- LRB9001279PTpkam
1 component of motor fuel for the personal use of the user, and
2 not subject to sale or resale.
3 (4) Graphic arts machinery and equipment, including
4 repair and replacement parts, both new and used, and
5 including that manufactured on special order or purchased for
6 lease, certified by the purchaser to be used primarily for
7 graphic arts production.
8 (5) A motor vehicle of the first division, a motor
9 vehicle of the second division that is a self-contained motor
10 vehicle designed or permanently converted to provide living
11 quarters for recreational, camping, or travel use, with
12 direct walk through access to the living quarters from the
13 driver's seat, or a motor vehicle of the second division that
14 is of the van configuration designed for the transportation
15 of not less than 7 nor more than 16 passengers, as defined in
16 Section 1-146 of the Illinois Vehicle Code, that is used for
17 automobile renting, as defined in the Automobile Renting
18 Occupation and Use Tax Act.
19 (6) Personal property sold by a teacher-sponsored
20 student organization affiliated with an elementary or
21 secondary school located in Illinois.
22 (7) Proceeds of that portion of the selling price of a
23 passenger car the sale of which is subject to the Replacement
24 Vehicle Tax.
25 (8) Personal property sold to an Illinois county fair
26 association for use in conducting, operating, or promoting
27 the county fair.
28 (9) Personal property sold to a not-for-profit music or
29 dramatic arts organization that establishes, by proof
30 required by the Department by rule, that it has received an
31 exemption under Section 501(c) (3) of the Internal Revenue
32 Code and that is organized and operated for the presentation
33 of live public performances of musical or theatrical works on
34 a regular basis.
-48- LRB9001279PTpkam
1 (10) Personal property sold by a corporation, society,
2 association, foundation, institution, or organization, other
3 than a limited liability company, that is organized and
4 operated as a not-for-profit service enterprise for the
5 benefit of persons 65 years of age or older if the personal
6 property was not purchased by the enterprise for the purpose
7 of resale by the enterprise.
8 (11) Personal property sold to a governmental body, to a
9 corporation, society, association, foundation, or institution
10 organized and operated exclusively for charitable, religious,
11 or educational purposes, or to a not-for-profit corporation,
12 society, association, foundation, institution, or
13 organization that has no compensated officers or employees
14 and that is organized and operated primarily for the
15 recreation of persons 55 years of age or older. A limited
16 liability company may qualify for the exemption under this
17 paragraph only if the limited liability company is organized
18 and operated exclusively for educational purposes. On and
19 after July 1, 1987, however, no entity otherwise eligible for
20 this exemption shall make tax-free purchases unless it has an
21 active identification number issued by the Department.
22 (12) Personal property sold to interstate carriers for
23 hire for use as rolling stock moving in interstate commerce
24 or to lessors under leases of one year or longer executed or
25 in effect at the time of purchase by interstate carriers for
26 hire for use as rolling stock moving in interstate commerce
27 and equipment operated by a telecommunications provider,
28 licensed as a common carrier by the Federal Communications
29 Commission, which is permanently installed in or affixed to
30 aircraft moving in interstate commerce.
31 (13) Proceeds from sales to owners, lessors, or shippers
32 of tangible personal property that is utilized by interstate
33 carriers for hire for use as rolling stock moving in
34 interstate commerce and equipment operated by a
-49- LRB9001279PTpkam
1 telecommunications provider, licensed as a common carrier by
2 the Federal Communications Commission, which is permanently
3 installed in or affixed to aircraft moving in interstate
4 commerce.
5 (14) Machinery and equipment that will be used by the
6 purchaser, or a lessee of the purchaser, primarily in the
7 process of manufacturing or assembling tangible personal
8 property for wholesale or retail sale or lease, whether the
9 sale or lease is made directly by the manufacturer or by some
10 other person, whether the materials used in the process are
11 owned by the manufacturer or some other person, or whether
12 the sale or lease is made apart from or as an incident to the
13 seller's engaging in the service occupation of producing
14 machines, tools, dies, jigs, patterns, gauges, or other
15 similar items of no commercial value on special order for a
16 particular purchaser.
17 (15) Proceeds of mandatory service charges separately
18 stated on customers' bills for purchase and consumption of
19 food and beverages, to the extent that the proceeds of the
20 service charge are in fact turned over as tips or as a
21 substitute for tips to the employees who participate directly
22 in preparing, serving, hosting or cleaning up the food or
23 beverage function with respect to which the service charge is
24 imposed.
25 (16) Petroleum products sold to a purchaser if the
26 seller is prohibited by federal law from charging tax to the
27 purchaser.
28 (17) Tangible personal property sold to a common carrier
29 by rail or motor that receives the physical possession of the
30 property in Illinois and that transports the property, or
31 shares with another common carrier in the transportation of
32 the property, out of Illinois on a standard uniform bill of
33 lading showing the seller of the property as the shipper or
34 consignor of the property to a destination outside Illinois,
-50- LRB9001279PTpkam
1 for use outside Illinois.
2 (18) Legal tender, currency, medallions, or gold or
3 silver coinage issued by the State of Illinois, the
4 government of the United States of America, or the government
5 of any foreign country, and bullion.
6 (19) Oil field exploration, drilling, and production
7 equipment, including (i) rigs and parts of rigs, rotary rigs,
8 cable tool rigs, and workover rigs, (ii) pipe and tubular
9 goods, including casing and drill strings, (iii) pumps and
10 pump-jack units, (iv) storage tanks and flow lines, (v) any
11 individual replacement part for oil field exploration,
12 drilling, and production equipment, and (vi) machinery and
13 equipment purchased for lease; but excluding motor vehicles
14 required to be registered under the Illinois Vehicle Code.
15 (20) Photoprocessing machinery and equipment, including
16 repair and replacement parts, both new and used, including
17 that manufactured on special order, certified by the
18 purchaser to be used primarily for photoprocessing, and
19 including photoprocessing machinery and equipment purchased
20 for lease.
21 (21) Coal exploration, mining, offhighway hauling,
22 processing, maintenance, and reclamation equipment, including
23 replacement parts and equipment, and including equipment
24 purchased for lease, but excluding motor vehicles required to
25 be registered under the Illinois Vehicle Code.
26 (22) Fuel and petroleum products sold to or used by an
27 air carrier, certified by the carrier to be used for
28 consumption, shipment, or storage in the conduct of its
29 business as an air common carrier, for a flight destined for
30 or returning from a location or locations outside the United
31 States without regard to previous or subsequent domestic
32 stopovers.
33 (23) A transaction in which the purchase order is
34 received by a florist who is located outside Illinois, but
-51- LRB9001279PTpkam
1 who has a florist located in Illinois deliver the property to
2 the purchaser or the purchaser's donee in Illinois.
3 (24) Fuel consumed or used in the operation of ships,
4 barges, or vessels that are used primarily in or for the
5 transportation of property or the conveyance of persons for
6 hire on rivers bordering on this State if the fuel is
7 delivered by the seller to the purchaser's barge, ship, or
8 vessel while it is afloat upon that bordering river.
9 (25) A motor vehicle sold in this State to a nonresident
10 even though the motor vehicle is delivered to the nonresident
11 in this State, if the motor vehicle is not to be titled in
12 this State, and if a driveaway decal permit is issued to the
13 motor vehicle as provided in Section 3-603 of the Illinois
14 Vehicle Code or if the nonresident purchaser has vehicle
15 registration plates to transfer to the motor vehicle upon
16 returning to his or her home state. The issuance of the
17 driveaway decal permit or having the out-of-state
18 registration plates to be transferred is prima facie evidence
19 that the motor vehicle will not be titled in this State.
20 (26) Semen used for artificial insemination of livestock
21 for direct agricultural production.
22 (27) Horses, or interests in horses, registered with and
23 meeting the requirements of any of the Arabian Horse Club
24 Registry of America, Appaloosa Horse Club, American Quarter
25 Horse Association, United States Trotting Association, or
26 Jockey Club, as appropriate, used for purposes of breeding or
27 racing for prizes.
28 (28) Computers and communications equipment utilized for
29 any hospital purpose and equipment used in the diagnosis,
30 analysis, or treatment of hospital patients sold to a lessor
31 who leases the equipment, under a lease of one year or longer
32 executed or in effect at the time of the purchase, to a
33 hospital that has been issued an active tax exemption
34 identification number by the Department under Section 1g of
-52- LRB9001279PTpkam
1 this Act. This paragraph is exempt from the provisions of
2 Section 2-70.
3 (29) Personal property sold to a lessor who leases the
4 property, under a lease of one year or longer executed or in
5 effect at the time of the purchase, to a governmental body
6 that has been issued an active tax exemption identification
7 number by the Department under Section 1g of this Act. This
8 paragraph is exempt from the provisions of Section 2-70.
9 (30) Beginning with taxable years ending on or after
10 December 31, 1995 and ending with taxable years ending on or
11 before December 31, 2004, personal property that is donated
12 for disaster relief to be used in a State or federally
13 declared disaster area in Illinois or bordering Illinois by a
14 manufacturer or retailer that is registered in this State to
15 a corporation, society, association, foundation, or
16 institution that has been issued a sales tax exemption
17 identification number by the Department that assists victims
18 of the disaster who reside within the declared disaster area.
19 (31) Beginning with taxable years ending on or after
20 December 31, 1995 and ending with taxable years ending on or
21 before December 31, 2004, personal property that is used in
22 the performance of infrastructure repairs in this State,
23 including but not limited to municipal roads and streets,
24 access roads, bridges, sidewalks, waste disposal systems,
25 water and sewer line extensions, water distribution and
26 purification facilities, storm water drainage and retention
27 facilities, and sewage treatment facilities, resulting from a
28 State or federally declared disaster in Illinois or bordering
29 Illinois when such repairs are initiated on facilities
30 located in the declared disaster area within 6 months after
31 the disaster.
32 (32) Beginning July 1, 1999, qualified technological
33 equipment sold to lessors for lease under leases subject to
34 the Qualified Technological Equipment Leasing Occupation and
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1 Use Tax Act. This paragraph is exempt from the provisions of
2 Section 2-70.
3 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
4 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
5 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-519,
6 eff. 6-1-98; 90-552, eff. 12-12-97; 90-605, eff. 6-30-98.)
7 (35 ILCS 120/3) (from Ch. 120, par. 442)
8 Sec. 3. Except as provided in this Section, on or before
9 the twentieth day of each calendar month, every person
10 engaged in the business of selling tangible personal property
11 at retail in this State during the preceding calendar month
12 shall file a return with the Department, stating:
13 1. The name of the seller;
14 2. His residence address and the address of his
15 principal place of business and the address of the
16 principal place of business (if that is a different
17 address) from which he engages in the business of selling
18 tangible personal property at retail in this State;
19 3. Total amount of receipts received by him during
20 the preceding calendar month or quarter, as the case may
21 be, from sales of tangible personal property, and from
22 services furnished, by him during such preceding calendar
23 month or quarter;
24 4. Total amount received by him during the
25 preceding calendar month or quarter on charge and time
26 sales of tangible personal property, and from services
27 furnished, by him prior to the month or quarter for which
28 the return is filed;
29 5. Deductions allowed by law;
30 6. Gross receipts which were received by him during
31 the preceding calendar month or quarter and upon the
32 basis of which the tax is imposed;
33 7. The amount of credit provided in Section 2d of
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1 this Act;
2 8. The amount of tax due;
3 9. The signature of the taxpayer; and
4 10. Such other reasonable information as the
5 Department may require.
6 If a taxpayer fails to sign a return within 30 days after
7 the proper notice and demand for signature by the Department,
8 the return shall be considered valid and any amount shown to
9 be due on the return shall be deemed assessed.
10 Each return shall be accompanied by the statement of
11 prepaid tax issued pursuant to Section 2e for which credit is
12 claimed.
13 A retailer may accept a Manufacturer's Purchase Credit
14 certification from a purchaser in satisfaction of Use Tax as
15 provided in Section 3-85 of the Use Tax Act if the purchaser
16 provides the appropriate documentation as required by Section
17 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
18 certification, accepted by a retailer as provided in Section
19 3-85 of the Use Tax Act, may be used by that retailer to
20 satisfy Retailers' Occupation Tax liability in the amount
21 claimed in the certification, not to exceed 6.25% of the
22 receipts subject to tax from a qualifying purchase.
23 The Department may require returns to be filed on a
24 quarterly basis. If so required, a return for each calendar
25 quarter shall be filed on or before the twentieth day of the
26 calendar month following the end of such calendar quarter.
27 The taxpayer shall also file a return with the Department for
28 each of the first two months of each calendar quarter, on or
29 before the twentieth day of the following calendar month,
30 stating:
31 1. The name of the seller;
32 2. The address of the principal place of business
33 from which he engages in the business of selling tangible
34 personal property at retail in this State;
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1 3. The total amount of taxable receipts received by
2 him during the preceding calendar month from sales of
3 tangible personal property by him during such preceding
4 calendar month, including receipts from charge and time
5 sales, but less all deductions allowed by law;
6 4. The amount of credit provided in Section 2d of
7 this Act;
8 5. The amount of tax due; and
9 6. Such other reasonable information as the
10 Department may require.
11 If a total amount of less than $1 is payable, refundable
12 or creditable, such amount shall be disregarded if it is less
13 than 50 cents and shall be increased to $1 if it is 50 cents
14 or more.
15 Beginning October 1, 1993, a taxpayer who has an average
16 monthly tax liability of $150,000 or more shall make all
17 payments required by rules of the Department by electronic
18 funds transfer. Beginning October 1, 1994, a taxpayer who
19 has an average monthly tax liability of $100,000 or more
20 shall make all payments required by rules of the Department
21 by electronic funds transfer. Beginning October 1, 1995, a
22 taxpayer who has an average monthly tax liability of $50,000
23 or more shall make all payments required by rules of the
24 Department by electronic funds transfer. The term "average
25 monthly tax liability" shall be the sum of the taxpayer's
26 liabilities under this Act, and under all other State and
27 local occupation and use tax laws administered by the
28 Department, for the immediately preceding calendar year
29 divided by 12.
30 Before August 1 of each year beginning in 1993, the
31 Department shall notify all taxpayers required to make
32 payments by electronic funds transfer. All taxpayers
33 required to make payments by electronic funds transfer shall
34 make those payments for a minimum of one year beginning on
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1 October 1.
2 Any taxpayer not required to make payments by electronic
3 funds transfer may make payments by electronic funds transfer
4 with the permission of the Department.
5 All taxpayers required to make payment by electronic
6 funds transfer and any taxpayers authorized to voluntarily
7 make payments by electronic funds transfer shall make those
8 payments in the manner authorized by the Department.
9 The Department shall adopt such rules as are necessary to
10 effectuate a program of electronic funds transfer and the
11 requirements of this Section.
12 Any amount which is required to be shown or reported on
13 any return or other document under this Act shall, if such
14 amount is not a whole-dollar amount, be increased to the
15 nearest whole-dollar amount in any case where the fractional
16 part of a dollar is 50 cents or more, and decreased to the
17 nearest whole-dollar amount where the fractional part of a
18 dollar is less than 50 cents.
19 If the retailer is otherwise required to file a monthly
20 return and if the retailer's average monthly tax liability to
21 the Department does not exceed $200, the Department may
22 authorize his returns to be filed on a quarter annual basis,
23 with the return for January, February and March of a given
24 year being due by April 20 of such year; with the return for
25 April, May and June of a given year being due by July 20 of
26 such year; with the return for July, August and September of
27 a given year being due by October 20 of such year, and with
28 the return for October, November and December of a given year
29 being due by January 20 of the following year.
30 If the retailer is otherwise required to file a monthly
31 or quarterly return and if the retailer's average monthly tax
32 liability with the Department does not exceed $50, the
33 Department may authorize his returns to be filed on an annual
34 basis, with the return for a given year being due by January
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1 20 of the following year.
2 Such quarter annual and annual returns, as to form and
3 substance, shall be subject to the same requirements as
4 monthly returns.
5 Notwithstanding any other provision in this Act
6 concerning the time within which a retailer may file his
7 return, in the case of any retailer who ceases to engage in a
8 kind of business which makes him responsible for filing
9 returns under this Act, such retailer shall file a final
10 return under this Act with the Department not more than one
11 month after discontinuing such business.
12 Where the same person has more than one business
13 registered with the Department under separate registrations
14 under this Act, such person may not file each return that is
15 due as a single return covering all such registered
16 businesses, but shall file separate returns for each such
17 registered business.
18 In addition, with respect to motor vehicles, watercraft,
19 aircraft, and trailers that are required to be registered
20 with an agency of this State, every retailer selling this
21 kind of tangible personal property shall file, with the
22 Department, upon a form to be prescribed and supplied by the
23 Department, a separate return for each such item of tangible
24 personal property which the retailer sells, except that
25 where, in the same transaction, a retailer of aircraft,
26 watercraft, motor vehicles or trailers transfers more than
27 one aircraft, watercraft, motor vehicle or trailer to another
28 aircraft, watercraft, motor vehicle retailer or trailer
29 retailer for the purpose of resale, that seller for resale
30 may report the transfer of all aircraft, watercraft, motor
31 vehicles or trailers involved in that transaction to the
32 Department on the same uniform invoice-transaction reporting
33 return form. For purposes of this Section, "watercraft"
34 means a Class 2, Class 3, or Class 4 watercraft as defined in
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1 Section 3-2 of the Boat Registration and Safety Act, a
2 personal watercraft, or any boat equipped with an inboard
3 motor.
4 Any retailer who sells only motor vehicles, watercraft,
5 aircraft, or trailers that are required to be registered with
6 an agency of this State, so that all retailers' occupation
7 tax liability is required to be reported, and is reported, on
8 such transaction reporting returns and who is not otherwise
9 required to file monthly or quarterly returns, need not file
10 monthly or quarterly returns. However, those retailers shall
11 be required to file returns on an annual basis.
12 The transaction reporting return, in the case of motor
13 vehicles or trailers that are required to be registered with
14 an agency of this State, shall be the same document as the
15 Uniform Invoice referred to in Section 5-402 of The Illinois
16 Vehicle Code and must show the name and address of the
17 seller; the name and address of the purchaser; the amount of
18 the selling price including the amount allowed by the
19 retailer for traded-in property, if any; the amount allowed
20 by the retailer for the traded-in tangible personal property,
21 if any, to the extent to which Section 1 of this Act allows
22 an exemption for the value of traded-in property; the balance
23 payable after deducting such trade-in allowance from the
24 total selling price; the amount of tax due from the retailer
25 with respect to such transaction; the amount of tax collected
26 from the purchaser by the retailer on such transaction (or
27 satisfactory evidence that such tax is not due in that
28 particular instance, if that is claimed to be the fact); the
29 place and date of the sale; a sufficient identification of
30 the property sold; such other information as is required in
31 Section 5-402 of The Illinois Vehicle Code, and such other
32 information as the Department may reasonably require.
33 The transaction reporting return in the case of
34 watercraft or aircraft must show the name and address of the
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1 seller; the name and address of the purchaser; the amount of
2 the selling price including the amount allowed by the
3 retailer for traded-in property, if any; the amount allowed
4 by the retailer for the traded-in tangible personal property,
5 if any, to the extent to which Section 1 of this Act allows
6 an exemption for the value of traded-in property; the balance
7 payable after deducting such trade-in allowance from the
8 total selling price; the amount of tax due from the retailer
9 with respect to such transaction; the amount of tax collected
10 from the purchaser by the retailer on such transaction (or
11 satisfactory evidence that such tax is not due in that
12 particular instance, if that is claimed to be the fact); the
13 place and date of the sale, a sufficient identification of
14 the property sold, and such other information as the
15 Department may reasonably require.
16 Such transaction reporting return shall be filed not
17 later than 20 days after the day of delivery of the item that
18 is being sold, but may be filed by the retailer at any time
19 sooner than that if he chooses to do so. The transaction
20 reporting return and tax remittance or proof of exemption
21 from the Illinois use tax may be transmitted to the
22 Department by way of the State agency with which, or State
23 officer with whom the tangible personal property must be
24 titled or registered (if titling or registration is required)
25 if the Department and such agency or State officer determine
26 that this procedure will expedite the processing of
27 applications for title or registration.
28 With each such transaction reporting return, the retailer
29 shall remit the proper amount of tax due (or shall submit
30 satisfactory evidence that the sale is not taxable if that is
31 the case), to the Department or its agents, whereupon the
32 Department shall issue, in the purchaser's name, a use tax
33 receipt (or a certificate of exemption if the Department is
34 satisfied that the particular sale is tax exempt) which such
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1 purchaser may submit to the agency with which, or State
2 officer with whom, he must title or register the tangible
3 personal property that is involved (if titling or
4 registration is required) in support of such purchaser's
5 application for an Illinois certificate or other evidence of
6 title or registration to such tangible personal property.
7 No retailer's failure or refusal to remit tax under this
8 Act precludes a user, who has paid the proper tax to the
9 retailer, from obtaining his certificate of title or other
10 evidence of title or registration (if titling or registration
11 is required) upon satisfying the Department that such user
12 has paid the proper tax (if tax is due) to the retailer. The
13 Department shall adopt appropriate rules to carry out the
14 mandate of this paragraph.
15 If the user who would otherwise pay tax to the retailer
16 wants the transaction reporting return filed and the payment
17 of the tax or proof of exemption made to the Department
18 before the retailer is willing to take these actions and such
19 user has not paid the tax to the retailer, such user may
20 certify to the fact of such delay by the retailer and may
21 (upon the Department being satisfied of the truth of such
22 certification) transmit the information required by the
23 transaction reporting return and the remittance for tax or
24 proof of exemption directly to the Department and obtain his
25 tax receipt or exemption determination, in which event the
26 transaction reporting return and tax remittance (if a tax
27 payment was required) shall be credited by the Department to
28 the proper retailer's account with the Department, but
29 without the 2.1% or 1.75% discount provided for in this
30 Section being allowed. When the user pays the tax directly
31 to the Department, he shall pay the tax in the same amount
32 and in the same form in which it would be remitted if the tax
33 had been remitted to the Department by the retailer.
34 Refunds made by the seller during the preceding return
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1 period to purchasers, on account of tangible personal
2 property returned to the seller, shall be allowed as a
3 deduction under subdivision 5 of his monthly or quarterly
4 return, as the case may be, in case the seller had
5 theretofore included the receipts from the sale of such
6 tangible personal property in a return filed by him and had
7 paid the tax imposed by this Act with respect to such
8 receipts.
9 Where the seller is a corporation, the return filed on
10 behalf of such corporation shall be signed by the president,
11 vice-president, secretary or treasurer or by the properly
12 accredited agent of such corporation.
13 Where the seller is a limited liability company, the
14 return filed on behalf of the limited liability company shall
15 be signed by a manager, member, or properly accredited agent
16 of the limited liability company.
17 Except as provided in this Section, the retailer filing
18 the return under this Section shall, at the time of filing
19 such return, pay to the Department the amount of tax imposed
20 by this Act less a discount of 2.1% prior to January 1, 1990
21 and 1.75% on and after January 1, 1990, or $5 per calendar
22 year, whichever is greater, which is allowed to reimburse the
23 retailer for the expenses incurred in keeping records,
24 preparing and filing returns, remitting the tax and supplying
25 data to the Department on request. Any prepayment made
26 pursuant to Section 2d of this Act shall be included in the
27 amount on which such 2.1% or 1.75% discount is computed. In
28 the case of retailers who report and pay the tax on a
29 transaction by transaction basis, as provided in this
30 Section, such discount shall be taken with each such tax
31 remittance instead of when such retailer files his periodic
32 return.
33 If the taxpayer's average monthly tax liability to the
34 Department under this Act, the Use Tax Act, the Service
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1 Occupation Tax Act, and the Service Use Tax Act, excluding
2 any liability for prepaid sales tax to be remitted in
3 accordance with Section 2d of this Act, was $10,000 or more
4 during the preceding 4 complete calendar quarters, he shall
5 file a return with the Department each month by the 20th day
6 of the month next following the month during which such tax
7 liability is incurred and shall make payments to the
8 Department on or before the 7th, 15th, 22nd and last day of
9 the month during which such liability is incurred. If the
10 month during which such tax liability is incurred began prior
11 to January 1, 1985, each payment shall be in an amount equal
12 to 1/4 of the taxpayer's actual liability for the month or an
13 amount set by the Department not to exceed 1/4 of the average
14 monthly liability of the taxpayer to the Department for the
15 preceding 4 complete calendar quarters (excluding the month
16 of highest liability and the month of lowest liability in
17 such 4 quarter period). If the month during which such tax
18 liability is incurred begins on or after January 1, 1985 and
19 prior to January 1, 1987, each payment shall be in an amount
20 equal to 22.5% of the taxpayer's actual liability for the
21 month or 27.5% of the taxpayer's liability for the same
22 calendar month of the preceding year. If the month during
23 which such tax liability is incurred begins on or after
24 January 1, 1987 and prior to January 1, 1988, each payment
25 shall be in an amount equal to 22.5% of the taxpayer's actual
26 liability for the month or 26.25% of the taxpayer's liability
27 for the same calendar month of the preceding year. If the
28 month during which such tax liability is incurred begins on
29 or after January 1, 1988, and prior to January 1, 1989, or
30 begins on or after January 1, 1996, each payment shall be in
31 an amount equal to 22.5% of the taxpayer's actual liability
32 for the month or 25% of the taxpayer's liability for the same
33 calendar month of the preceding year. If the month during
34 which such tax liability is incurred begins on or after
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1 January 1, 1989, and prior to January 1, 1996, each payment
2 shall be in an amount equal to 22.5% of the taxpayer's actual
3 liability for the month or 25% of the taxpayer's liability
4 for the same calendar month of the preceding year or 100% of
5 the taxpayer's actual liability for the quarter monthly
6 reporting period. The amount of such quarter monthly
7 payments shall be credited against the final tax liability of
8 the taxpayer's return for that month. Once applicable, the
9 requirement of the making of quarter monthly payments to the
10 Department by taxpayers having an average monthly tax
11 liability of $10,000 or more as determined in the manner
12 provided above shall continue until such taxpayer's average
13 monthly liability to the Department during the preceding 4
14 complete calendar quarters (excluding the month of highest
15 liability and the month of lowest liability) is less than
16 $9,000, or until such taxpayer's average monthly liability to
17 the Department as computed for each calendar quarter of the 4
18 preceding complete calendar quarter period is less than
19 $10,000. However, if a taxpayer can show the Department that
20 a substantial change in the taxpayer's business has occurred
21 which causes the taxpayer to anticipate that his average
22 monthly tax liability for the reasonably foreseeable future
23 will fall below $10,000, then such taxpayer may petition the
24 Department for a change in such taxpayer's reporting status.
25 The Department shall change such taxpayer's reporting status
26 unless it finds that such change is seasonal in nature and
27 not likely to be long term. If any such quarter monthly
28 payment is not paid at the time or in the amount required by
29 this Section, then the taxpayer shall be liable for penalties
30 and interest on the difference between the minimum amount due
31 as a payment and the amount of such quarter monthly payment
32 actually and timely paid, except insofar as the taxpayer has
33 previously made payments for that month to the Department in
34 excess of the minimum payments previously due as provided in
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1 this Section. The Department shall make reasonable rules and
2 regulations to govern the quarter monthly payment amount and
3 quarter monthly payment dates for taxpayers who file on other
4 than a calendar monthly basis.
5 Without regard to whether a taxpayer is required to make
6 quarter monthly payments as specified above, any taxpayer who
7 is required by Section 2d of this Act to collect and remit
8 prepaid taxes and has collected prepaid taxes which average
9 in excess of $25,000 per month during the preceding 2
10 complete calendar quarters, shall file a return with the
11 Department as required by Section 2f and shall make payments
12 to the Department on or before the 7th, 15th, 22nd and last
13 day of the month during which such liability is incurred. If
14 the month during which such tax liability is incurred began
15 prior to the effective date of this amendatory Act of 1985,
16 each payment shall be in an amount not less than 22.5% of the
17 taxpayer's actual liability under Section 2d. If the month
18 during which such tax liability is incurred begins on or
19 after January 1, 1986, each payment shall be in an amount
20 equal to 22.5% of the taxpayer's actual liability for the
21 month or 27.5% of the taxpayer's liability for the same
22 calendar month of the preceding calendar year. If the month
23 during which such tax liability is incurred begins on or
24 after January 1, 1987, each payment shall be in an amount
25 equal to 22.5% of the taxpayer's actual liability for the
26 month or 26.25% of the taxpayer's liability for the same
27 calendar month of the preceding year. The amount of such
28 quarter monthly payments shall be credited against the final
29 tax liability of the taxpayer's return for that month filed
30 under this Section or Section 2f, as the case may be. Once
31 applicable, the requirement of the making of quarter monthly
32 payments to the Department pursuant to this paragraph shall
33 continue until such taxpayer's average monthly prepaid tax
34 collections during the preceding 2 complete calendar quarters
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1 is $25,000 or less. If any such quarter monthly payment is
2 not paid at the time or in the amount required, the taxpayer
3 shall be liable for penalties and interest on such
4 difference, except insofar as the taxpayer has previously
5 made payments for that month in excess of the minimum
6 payments previously due.
7 If any payment provided for in this Section exceeds the
8 taxpayer's liabilities under this Act, the Use Tax Act, the
9 Service Occupation Tax Act and the Service Use Tax Act, as
10 shown on an original monthly return, the Department shall, if
11 requested by the taxpayer, issue to the taxpayer a credit
12 memorandum no later than 30 days after the date of payment.
13 The credit evidenced by such credit memorandum may be
14 assigned by the taxpayer to a similar taxpayer under this
15 Act, the Use Tax Act, the Service Occupation Tax Act or the
16 Service Use Tax Act, in accordance with reasonable rules and
17 regulations to be prescribed by the Department. If no such
18 request is made, the taxpayer may credit such excess payment
19 against tax liability subsequently to be remitted to the
20 Department under this Act, the Use Tax Act, the Service
21 Occupation Tax Act or the Service Use Tax Act, in accordance
22 with reasonable rules and regulations prescribed by the
23 Department. If the Department subsequently determined that
24 all or any part of the credit taken was not actually due to
25 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
26 shall be reduced by 2.1% or 1.75% of the difference between
27 the credit taken and that actually due, and that taxpayer
28 shall be liable for penalties and interest on such
29 difference.
30 If a retailer of motor fuel is entitled to a credit under
31 Section 2d of this Act which exceeds the taxpayer's liability
32 to the Department under this Act for the month which the
33 taxpayer is filing a return, the Department shall issue the
34 taxpayer a credit memorandum for the excess.
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1 Beginning January 1, 1990, each month the Department
2 shall pay into the Local Government Tax Fund, a special fund
3 in the State treasury which is hereby created, the net
4 revenue realized for the preceding month from the 1% tax on
5 sales of food for human consumption which is to be consumed
6 off the premises where it is sold (other than alcoholic
7 beverages, soft drinks and food which has been prepared for
8 immediate consumption) and prescription and nonprescription
9 medicines, drugs, medical appliances and insulin, urine
10 testing materials, syringes and needles used by diabetics.
11 Beginning January 1, 1990, each month the Department
12 shall pay into the County and Mass Transit District Fund, a
13 special fund in the State treasury which is hereby created,
14 4% of the net revenue realized for the preceding month from
15 the 6.25% general rate.
16 Beginning January 1, 1990, each month the Department
17 shall pay into the Local Government Tax Fund 16% of the net
18 revenue realized for the preceding month from the 6.25%
19 general rate on the selling price of tangible personal
20 property.
21 Of the remainder of the moneys received by the Department
22 pursuant to this Act and the moneys received by the
23 Department from the 80% of the 8.25% occupation tax imposed
24 in Section 10 of the Qualified Technological Equipment
25 Leasing Occupation and Use Tax Act, (a) 1.75% thereof shall
26 be paid into the Build Illinois Fund and (b) prior to July 1,
27 1989, 2.2% and on and after July 1, 1989, 3.8% thereof shall
28 be paid into the Build Illinois Fund; provided, however, that
29 if in any fiscal year the sum of (1) the aggregate of 2.2% or
30 3.8%, as the case may be, of the moneys received by the
31 Department and required to be paid into the Build Illinois
32 Fund pursuant to this Act, Section 9 of the Use Tax Act,
33 Section 9 of the Service Use Tax Act, and Section 9 of the
34 Service Occupation Tax Act, such Acts being hereinafter
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1 called the "Tax Acts" and such aggregate of 2.2% or 3.8%, as
2 the case may be, of moneys being hereinafter called the "Tax
3 Act Amount", and (2) the amount transferred to the Build
4 Illinois Fund from the State and Local Sales Tax Reform Fund
5 shall be less than the Annual Specified Amount (as
6 hereinafter defined), an amount equal to the difference shall
7 be immediately paid into the Build Illinois Fund from other
8 moneys received by the Department pursuant to the Tax Acts;
9 the "Annual Specified Amount" means the amounts specified
10 below for fiscal years 1986 through 1993:
11 Fiscal Year Annual Specified Amount
12 1986 $54,800,000
13 1987 $76,650,000
14 1988 $80,480,000
15 1989 $88,510,000
16 1990 $115,330,000
17 1991 $145,470,000
18 1992 $182,730,000
19 1993 $206,520,000;
20 and means the Certified Annual Debt Service Requirement (as
21 defined in Section 13 of the Build Illinois Bond Act) or the
22 Tax Act Amount, whichever is greater, for fiscal year 1994
23 and each fiscal year thereafter; and further provided, that
24 if on the last business day of any month the sum of (1) the
25 Tax Act Amount required to be deposited into the Build
26 Illinois Bond Account in the Build Illinois Fund during such
27 month and (2) the amount transferred to the Build Illinois
28 Fund from the State and Local Sales Tax Reform Fund shall
29 have been less than 1/12 of the Annual Specified Amount, an
30 amount equal to the difference shall be immediately paid into
31 the Build Illinois Fund from other moneys received by the
32 Department pursuant to the Tax Acts; and, further provided,
33 that in no event shall the payments required under the
34 preceding proviso result in aggregate payments into the Build
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1 Illinois Fund pursuant to this clause (b) for any fiscal year
2 in excess of the greater of (i) the Tax Act Amount or (ii)
3 the Annual Specified Amount for such fiscal year. The
4 amounts payable into the Build Illinois Fund under clause (b)
5 of the first sentence in this paragraph shall be payable only
6 until such time as the aggregate amount on deposit under each
7 trust indenture securing Bonds issued and outstanding
8 pursuant to the Build Illinois Bond Act is sufficient, taking
9 into account any future investment income, to fully provide,
10 in accordance with such indenture, for the defeasance of or
11 the payment of the principal of, premium, if any, and
12 interest on the Bonds secured by such indenture and on any
13 Bonds expected to be issued thereafter and all fees and costs
14 payable with respect thereto, all as certified by the
15 Director of the Bureau of the Budget. If on the last
16 business day of any month in which Bonds are outstanding
17 pursuant to the Build Illinois Bond Act, the aggregate of
18 moneys deposited in the Build Illinois Bond Account in the
19 Build Illinois Fund in such month shall be less than the
20 amount required to be transferred in such month from the
21 Build Illinois Bond Account to the Build Illinois Bond
22 Retirement and Interest Fund pursuant to Section 13 of the
23 Build Illinois Bond Act, an amount equal to such deficiency
24 shall be immediately paid from other moneys received by the
25 Department pursuant to the Tax Acts to the Build Illinois
26 Fund; provided, however, that any amounts paid to the Build
27 Illinois Fund in any fiscal year pursuant to this sentence
28 shall be deemed to constitute payments pursuant to clause (b)
29 of the first sentence of this paragraph and shall reduce the
30 amount otherwise payable for such fiscal year pursuant to
31 that clause (b). The moneys received by the Department
32 pursuant to this Act and required to be deposited into the
33 Build Illinois Fund are subject to the pledge, claim and
34 charge set forth in Section 12 of the Build Illinois Bond
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1 Act.
2 Subject to payment of amounts into the Build Illinois
3 Fund as provided in the preceding paragraph or in any
4 amendment thereto hereafter enacted, the following specified
5 monthly installment of the amount requested in the
6 certificate of the Chairman of the Metropolitan Pier and
7 Exposition Authority provided under Section 8.25f of the
8 State Finance Act, but not in excess of sums designated as
9 "Total Deposit", shall be deposited in the aggregate from
10 collections under Section 9 of the Use Tax Act, Section 9 of
11 the Service Use Tax Act, Section 9 of the Service Occupation
12 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
13 into the McCormick Place Expansion Project Fund in the
14 specified fiscal years.
15 Fiscal Year Total Deposit
16 1993 $0
17 1994 53,000,000
18 1995 58,000,000
19 1996 61,000,000
20 1997 64,000,000
21 1998 68,000,000
22 1999 71,000,000
23 2000 75,000,000
24 2001 80,000,000
25 2002 84,000,000
26 2003 89,000,000
27 2004 93,000,000
28 2005 97,000,000
29 2006 102,000,000
30 2007 and 106,000,000
31 each fiscal year
32 thereafter that bonds
33 are outstanding under
34 Section 13.2 of the
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1 Metropolitan Pier and
2 Exposition Authority
3 Act, but not after fiscal year 2029.
4 Beginning July 20, 1993 and in each month of each fiscal
5 year thereafter, one-eighth of the amount requested in the
6 certificate of the Chairman of the Metropolitan Pier and
7 Exposition Authority for that fiscal year, less the amount
8 deposited into the McCormick Place Expansion Project Fund by
9 the State Treasurer in the respective month under subsection
10 (g) of Section 13 of the Metropolitan Pier and Exposition
11 Authority Act, plus cumulative deficiencies in the deposits
12 required under this Section for previous months and years,
13 shall be deposited into the McCormick Place Expansion Project
14 Fund, until the full amount requested for the fiscal year,
15 but not in excess of the amount specified above as "Total
16 Deposit", has been deposited.
17 Subject to payment of amounts into the Build Illinois
18 Fund and the McCormick Place Expansion Project Fund pursuant
19 to the preceding paragraphs or in any amendment thereto
20 hereafter enacted, each month the Department shall pay into
21 the Local Government Distributive Fund 0.4% of the net
22 revenue realized for the preceding month from the 5% general
23 rate or 0.4% of 80% of the net revenue realized for the
24 preceding month from the 6.25% general rate, as the case may
25 be, on the selling price of tangible personal property which
26 amount shall, subject to appropriation, be distributed as
27 provided in Section 2 of the State Revenue Sharing Act. No
28 payments or distributions pursuant to this paragraph shall be
29 made if the tax imposed by this Act on photoprocessing
30 products is declared unconstitutional, or if the proceeds
31 from such tax are unavailable for distribution because of
32 litigation.
33 Subject to payment of amounts into the Build Illinois
34 Fund, the McCormick Place Expansion Project to the preceding
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1 paragraphs or in any amendments thereto hereafter enacted,
2 beginning July 1, 1993, the Department shall each month pay
3 into the Illinois Tax Increment Fund 0.27% of 80% of the net
4 revenue realized for the preceding month from the 6.25%
5 general rate on the selling price of tangible personal
6 property.
7 Of the remainder of the moneys received by the Department
8 pursuant to this Act, 75% thereof shall be paid into the
9 State Treasury and 25% shall be reserved in a special account
10 and used only for the transfer to the Common School Fund as
11 part of the monthly transfer from the General Revenue Fund in
12 accordance with Section 8a of the State Finance Act.
13 The Department may, upon separate written notice to a
14 taxpayer, require the taxpayer to prepare and file with the
15 Department on a form prescribed by the Department within not
16 less than 60 days after receipt of the notice an annual
17 information return for the tax year specified in the notice.
18 Such annual return to the Department shall include a
19 statement of gross receipts as shown by the retailer's last
20 Federal income tax return. If the total receipts of the
21 business as reported in the Federal income tax return do not
22 agree with the gross receipts reported to the Department of
23 Revenue for the same period, the retailer shall attach to his
24 annual return a schedule showing a reconciliation of the 2
25 amounts and the reasons for the difference. The retailer's
26 annual return to the Department shall also disclose the cost
27 of goods sold by the retailer during the year covered by such
28 return, opening and closing inventories of such goods for
29 such year, costs of goods used from stock or taken from stock
30 and given away by the retailer during such year, payroll
31 information of the retailer's business during such year and
32 any additional reasonable information which the Department
33 deems would be helpful in determining the accuracy of the
34 monthly, quarterly or annual returns filed by such retailer
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1 as provided for in this Section.
2 If the annual information return required by this Section
3 is not filed when and as required, the taxpayer shall be
4 liable as follows:
5 (i) Until January 1, 1994, the taxpayer shall be
6 liable for a penalty equal to 1/6 of 1% of the tax due
7 from such taxpayer under this Act during the period to be
8 covered by the annual return for each month or fraction
9 of a month until such return is filed as required, the
10 penalty to be assessed and collected in the same manner
11 as any other penalty provided for in this Act.
12 (ii) On and after January 1, 1994, the taxpayer
13 shall be liable for a penalty as described in Section 3-4
14 of the Uniform Penalty and Interest Act.
15 The chief executive officer, proprietor, owner or highest
16 ranking manager shall sign the annual return to certify the
17 accuracy of the information contained therein. Any person
18 who willfully signs the annual return containing false or
19 inaccurate information shall be guilty of perjury and
20 punished accordingly. The annual return form prescribed by
21 the Department shall include a warning that the person
22 signing the return may be liable for perjury.
23 The provisions of this Section concerning the filing of
24 an annual information return do not apply to a retailer who
25 is not required to file an income tax return with the United
26 States Government.
27 As soon as possible after the first day of each month,
28 upon certification of the Department of Revenue, the
29 Comptroller shall order transferred and the Treasurer shall
30 transfer from the General Revenue Fund to the Motor Fuel Tax
31 Fund an amount equal to 1.7% of 80% of the net revenue
32 realized under this Act for the second preceding month;
33 except that this transfer shall not be made for the months
34 February through June, 1992.
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1 Net revenue realized for a month shall be the revenue
2 collected by the State pursuant to this Act, less the amount
3 paid out during that month as refunds to taxpayers for
4 overpayment of liability.
5 For greater simplicity of administration, manufacturers,
6 importers and wholesalers whose products are sold at retail
7 in Illinois by numerous retailers, and who wish to do so, may
8 assume the responsibility for accounting and paying to the
9 Department all tax accruing under this Act with respect to
10 such sales, if the retailers who are affected do not make
11 written objection to the Department to this arrangement.
12 Any person who promotes, organizes, provides retail
13 selling space for concessionaires or other types of sellers
14 at the Illinois State Fair, DuQuoin State Fair, county fairs,
15 local fairs, art shows, flea markets and similar exhibitions
16 or events, including any transient merchant as defined by
17 Section 2 of the Transient Merchant Act of 1987, is required
18 to file a report with the Department providing the name of
19 the merchant's business, the name of the person or persons
20 engaged in merchant's business, the permanent address and
21 Illinois Retailers Occupation Tax Registration Number of the
22 merchant, the dates and location of the event and other
23 reasonable information that the Department may require. The
24 report must be filed not later than the 20th day of the month
25 next following the month during which the event with retail
26 sales was held. Any person who fails to file a report
27 required by this Section commits a business offense and is
28 subject to a fine not to exceed $250.
29 Any person engaged in the business of selling tangible
30 personal property at retail as a concessionaire or other type
31 of seller at the Illinois State Fair, county fairs, art
32 shows, flea markets and similar exhibitions or events, or any
33 transient merchants, as defined by Section 2 of the Transient
34 Merchant Act of 1987, may be required to make a daily report
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1 of the amount of such sales to the Department and to make a
2 daily payment of the full amount of tax due. The Department
3 shall impose this requirement when it finds that there is a
4 significant risk of loss of revenue to the State at such an
5 exhibition or event. Such a finding shall be based on
6 evidence that a substantial number of concessionaires or
7 other sellers who are not residents of Illinois will be
8 engaging in the business of selling tangible personal
9 property at retail at the exhibition or event, or other
10 evidence of a significant risk of loss of revenue to the
11 State. The Department shall notify concessionaires and other
12 sellers affected by the imposition of this requirement. In
13 the absence of notification by the Department, the
14 concessionaires and other sellers shall file their returns as
15 otherwise required in this Section.
16 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
17 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff.
18 1-1-99; 90-612, eff. 7-8-98.)
19 (35 ILCS 120/3.5 new)
20 Sec. 3.5. Refund; leaseback transaction. A purchaser of
21 qualified technological equipment, as defined in Section 5 of
22 the Qualified Technological Equipment eeasing Occupation and
23 Use Tax Act, may obtain a refund of all tax paid to a seller
24 under this Act or any other tax administered by the
25 Department if the purchaser sells the property to a rentor
26 under a bona fide sale and leaseback transaction (to such
27 purchaser) within 90 days of the first functional use of the
28 property. The purchaser shall request the refund from the
29 seller to whom he or she has paid the tax in the same manner
30 and subject to the same requirements as other refunds
31 provided in Section 3 of this Act. For purposes of this
32 Section, the first functional use of property shall be the
33 use for which the property is intended, which shall, in the
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1 absence of other evidence, be presumed to be the date of
2 delivery of the property.
3 Section 999. Effective date. This Act takes effect July
4 1, 1999.".