[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
90_SB1325
35 ILCS 105/9 from Ch. 120, par. 439.9
35 ILCS 110/9 from Ch. 120, par. 439.39
35 ILCS 115/9 from Ch. 120, par. 439.109
35 ILCS 120/3 from Ch. 120, par. 442
35 ILCS 120/3.5 new
Amends the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act. Provides that for each of the 12 months beginning July
1998 through June 1999, as soon as possible after the last
day of each such month, upon certification from the
Department of Revenue, the Comptroller shall order
transferred and the Treasurer shall transfer from the General
Revenue Fund to the Road Fund the aggregate amount received
under those Acts or an aggregate of $33,333,333, whichever is
less, from the tax imposed under those Acts from gasoline.
Provides that the amounts shall be transferred first from the
amounts received from the tax imposed under the Retailers'
Occupation Tax Act, second from the moneys received under the
Use Tax Act, third from the moneys received under the Service
Occupation Tax Act, and fourth from the moneys received under
the Service Use Tax Act. Effective immediately.
LRB9008924KDdv
LRB9008924KDdv
1 AN ACT in relation to taxes, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing
5 Section 9 as follows:
6 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
7 (Text of Section before amendment by P.A. 90-491)
8 Sec. 9. Except as to motor vehicles, watercraft,
9 aircraft, and trailers that are required to be registered
10 with an agency of this State, each retailer required or
11 authorized to collect the tax imposed by this Act shall pay
12 to the Department the amount of such tax (except as otherwise
13 provided) at the time when he is required to file his return
14 for the period during which such tax was collected, less a
15 discount of 2.1% prior to January 1, 1990, and 1.75% on and
16 after January 1, 1990, or $5 per calendar year, whichever is
17 greater, which is allowed to reimburse the retailer for
18 expenses incurred in collecting the tax, keeping records,
19 preparing and filing returns, remitting the tax and supplying
20 data to the Department on request. In the case of retailers
21 who report and pay the tax on a transaction by transaction
22 basis, as provided in this Section, such discount shall be
23 taken with each such tax remittance instead of when such
24 retailer files his periodic return. A retailer need not
25 remit that part of any tax collected by him to the extent
26 that he is required to remit and does remit the tax imposed
27 by the Retailers' Occupation Tax Act, with respect to the
28 sale of the same property.
29 Where such tangible personal property is sold under a
30 conditional sales contract, or under any other form of sale
31 wherein the payment of the principal sum, or a part thereof,
-2- LRB9008924KDdv
1 is extended beyond the close of the period for which the
2 return is filed, the retailer, in collecting the tax (except
3 as to motor vehicles, watercraft, aircraft, and trailers that
4 are required to be registered with an agency of this State),
5 may collect for each tax return period, only the tax
6 applicable to that part of the selling price actually
7 received during such tax return period.
8 Except as provided in this Section, on or before the
9 twentieth day of each calendar month, such retailer shall
10 file a return for the preceding calendar month. Such return
11 shall be filed on forms prescribed by the Department and
12 shall furnish such information as the Department may
13 reasonably require.
14 The Department may require returns to be filed on a
15 quarterly basis. If so required, a return for each calendar
16 quarter shall be filed on or before the twentieth day of the
17 calendar month following the end of such calendar quarter.
18 The taxpayer shall also file a return with the Department for
19 each of the first two months of each calendar quarter, on or
20 before the twentieth day of the following calendar month,
21 stating:
22 1. The name of the seller;
23 2. The address of the principal place of business
24 from which he engages in the business of selling tangible
25 personal property at retail in this State;
26 3. The total amount of taxable receipts received by
27 him during the preceding calendar month from sales of
28 tangible personal property by him during such preceding
29 calendar month, including receipts from charge and time
30 sales, but less all deductions allowed by law;
31 4. The amount of credit provided in Section 2d of
32 this Act;
33 5. The amount of tax due;
34 5-5. The signature of the taxpayer; and
-3- LRB9008924KDdv
1 6. Such other reasonable information as the
2 Department may require.
3 If a taxpayer fails to sign a return within 30 days after
4 the proper notice and demand for signature by the Department,
5 the return shall be considered valid and any amount shown to
6 be due on the return shall be deemed assessed.
7 Beginning October 1, 1993, a taxpayer who has an average
8 monthly tax liability of $150,000 or more shall make all
9 payments required by rules of the Department by electronic
10 funds transfer. Beginning October 1, 1994, a taxpayer who has
11 an average monthly tax liability of $100,000 or more shall
12 make all payments required by rules of the Department by
13 electronic funds transfer. Beginning October 1, 1995, a
14 taxpayer who has an average monthly tax liability of $50,000
15 or more shall make all payments required by rules of the
16 Department by electronic funds transfer. The term "average
17 monthly tax liability" means the sum of the taxpayer's
18 liabilities under this Act, and under all other State and
19 local occupation and use tax laws administered by the
20 Department, for the immediately preceding calendar year
21 divided by 12.
22 Before August 1 of each year beginning in 1993, the
23 Department shall notify all taxpayers required to make
24 payments by electronic funds transfer. All taxpayers required
25 to make payments by electronic funds transfer shall make
26 those payments for a minimum of one year beginning on October
27 1.
28 Any taxpayer not required to make payments by electronic
29 funds transfer may make payments by electronic funds transfer
30 with the permission of the Department.
31 All taxpayers required to make payment by electronic
32 funds transfer and any taxpayers authorized to voluntarily
33 make payments by electronic funds transfer shall make those
34 payments in the manner authorized by the Department.
-4- LRB9008924KDdv
1 The Department shall adopt such rules as are necessary to
2 effectuate a program of electronic funds transfer and the
3 requirements of this Section.
4 If the taxpayer's average monthly tax liability to the
5 Department under this Act, the Retailers' Occupation Tax Act,
6 the Service Occupation Tax Act, the Service Use Tax Act was
7 $10,000 or more during the preceding 4 complete calendar
8 quarters, he shall file a return with the Department each
9 month by the 20th day of the month next following the month
10 during which such tax liability is incurred and shall make
11 payments to the Department on or before the 7th, 15th, 22nd
12 and last day of the month during which such liability is
13 incurred. If the month during which such tax liability is
14 incurred began prior to January 1, 1985, each payment shall
15 be in an amount equal to 1/4 of the taxpayer's actual
16 liability for the month or an amount set by the Department
17 not to exceed 1/4 of the average monthly liability of the
18 taxpayer to the Department for the preceding 4 complete
19 calendar quarters (excluding the month of highest liability
20 and the month of lowest liability in such 4 quarter period).
21 If the month during which such tax liability is incurred
22 begins on or after January 1, 1985, and prior to January 1,
23 1987, each payment shall be in an amount equal to 22.5% of
24 the taxpayer's actual liability for the month or 27.5% of the
25 taxpayer's liability for the same calendar month of the
26 preceding year. If the month during which such tax liability
27 is incurred begins on or after January 1, 1987, and prior to
28 January 1, 1988, each payment shall be in an amount equal to
29 22.5% of the taxpayer's actual liability for the month or
30 26.25% of the taxpayer's liability for the same calendar
31 month of the preceding year. If the month during which such
32 tax liability is incurred begins on or after January 1, 1988,
33 and prior to January 1, 1989, or begins on or after January
34 1, 1996, each payment shall be in an amount equal to 22.5% of
-5- LRB9008924KDdv
1 the taxpayer's actual liability for the month or 25% of the
2 taxpayer's liability for the same calendar month of the
3 preceding year. If the month during which such tax liability
4 is incurred begins on or after January 1, 1989, and prior to
5 January 1, 1996, each payment shall be in an amount equal to
6 22.5% of the taxpayer's actual liability for the month or 25%
7 of the taxpayer's liability for the same calendar month of
8 the preceding year or 100% of the taxpayer's actual liability
9 for the quarter monthly reporting period. The amount of such
10 quarter monthly payments shall be credited against the final
11 tax liability of the taxpayer's return for that month. Once
12 applicable, the requirement of the making of quarter monthly
13 payments to the Department shall continue until such
14 taxpayer's average monthly liability to the Department during
15 the preceding 4 complete calendar quarters (excluding the
16 month of highest liability and the month of lowest liability)
17 is less than $9,000, or until such taxpayer's average monthly
18 liability to the Department as computed for each calendar
19 quarter of the 4 preceding complete calendar quarter period
20 is less than $10,000. However, if a taxpayer can show the
21 Department that a substantial change in the taxpayer's
22 business has occurred which causes the taxpayer to anticipate
23 that his average monthly tax liability for the reasonably
24 foreseeable future will fall below $10,000, then such
25 taxpayer may petition the Department for change in such
26 taxpayer's reporting status. The Department shall change
27 such taxpayer's reporting status unless it finds that such
28 change is seasonal in nature and not likely to be long term.
29 If any such quarter monthly payment is not paid at the time
30 or in the amount required by this Section, then the
31 taxpayer's 2.1% or 1.75% vendors' discount shall be reduced
32 by 2.1% or 1.75%, as the case may be, of the difference
33 between the minimum amount due and the amount of such quarter
34 monthly payment actually and timely paid and the taxpayer
-6- LRB9008924KDdv
1 shall be liable for penalties and interest on such
2 difference, except insofar as the taxpayer has previously
3 made payments for that month to the Department in excess of
4 the minimum payments previously due as provided in this
5 Section. The Department shall make reasonable rules and
6 regulations to govern the quarter monthly payment amount and
7 quarter monthly payment dates for taxpayers who file on other
8 than a calendar monthly basis.
9 If any such payment provided for in this Section exceeds
10 the taxpayer's liabilities under this Act, the Retailers'
11 Occupation Tax Act, the Service Occupation Tax Act and the
12 Service Use Tax Act, as shown by an original monthly return,
13 the Department shall issue to the taxpayer a credit
14 memorandum no later than 30 days after the date of payment,
15 which memorandum may be submitted by the taxpayer to the
16 Department in payment of tax liability subsequently to be
17 remitted by the taxpayer to the Department or be assigned by
18 the taxpayer to a similar taxpayer under this Act, the
19 Retailers' Occupation Tax Act, the Service Occupation Tax Act
20 or the Service Use Tax Act, in accordance with reasonable
21 rules and regulations to be prescribed by the Department,
22 except that if such excess payment is shown on an original
23 monthly return and is made after December 31, 1986, no credit
24 memorandum shall be issued, unless requested by the taxpayer.
25 If no such request is made, the taxpayer may credit such
26 excess payment against tax liability subsequently to be
27 remitted by the taxpayer to the Department under this Act,
28 the Retailers' Occupation Tax Act, the Service Occupation Tax
29 Act or the Service Use Tax Act, in accordance with reasonable
30 rules and regulations prescribed by the Department. If the
31 Department subsequently determines that all or any part of
32 the credit taken was not actually due to the taxpayer, the
33 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
34 by 2.1% or 1.75% of the difference between the credit taken
-7- LRB9008924KDdv
1 and that actually due, and the taxpayer shall be liable for
2 penalties and interest on such difference.
3 If the retailer is otherwise required to file a monthly
4 return and if the retailer's average monthly tax liability to
5 the Department does not exceed $200, the Department may
6 authorize his returns to be filed on a quarter annual basis,
7 with the return for January, February, and March of a given
8 year being due by April 20 of such year; with the return for
9 April, May and June of a given year being due by July 20 of
10 such year; with the return for July, August and September of
11 a given year being due by October 20 of such year, and with
12 the return for October, November and December of a given year
13 being due by January 20 of the following year.
14 If the retailer is otherwise required to file a monthly
15 or quarterly return and if the retailer's average monthly tax
16 liability to the Department does not exceed $50, the
17 Department may authorize his returns to be filed on an annual
18 basis, with the return for a given year being due by January
19 20 of the following year.
20 Such quarter annual and annual returns, as to form and
21 substance, shall be subject to the same requirements as
22 monthly returns.
23 Notwithstanding any other provision in this Act
24 concerning the time within which a retailer may file his
25 return, in the case of any retailer who ceases to engage in a
26 kind of business which makes him responsible for filing
27 returns under this Act, such retailer shall file a final
28 return under this Act with the Department not more than one
29 month after discontinuing such business.
30 In addition, with respect to motor vehicles, watercraft,
31 aircraft, and trailers that are required to be registered
32 with an agency of this State, every retailer selling this
33 kind of tangible personal property shall file, with the
34 Department, upon a form to be prescribed and supplied by the
-8- LRB9008924KDdv
1 Department, a separate return for each such item of tangible
2 personal property which the retailer sells, except that
3 where, in the same transaction, a retailer of aircraft,
4 watercraft, motor vehicles or trailers transfers more than
5 one aircraft, watercraft, motor vehicle or trailer to another
6 aircraft, watercraft, motor vehicle or trailer retailer for
7 the purpose of resale, that seller for resale may report the
8 transfer of all the aircraft, watercraft, motor vehicles or
9 trailers involved in that transaction to the Department on
10 the same uniform invoice-transaction reporting return form.
11 For purposes of this Section, "watercraft" means a Class 2,
12 Class 3, or Class 4 watercraft as defined in Section 3-2 of
13 the Boat Registration and Safety Act, a personal watercraft,
14 or any boat equipped with an inboard motor.
15 The transaction reporting return in the case of motor
16 vehicles or trailers that are required to be registered with
17 an agency of this State, shall be the same document as the
18 Uniform Invoice referred to in Section 5-402 of the Illinois
19 Vehicle Code and must show the name and address of the
20 seller; the name and address of the purchaser; the amount of
21 the selling price including the amount allowed by the
22 retailer for traded-in property, if any; the amount allowed
23 by the retailer for the traded-in tangible personal property,
24 if any, to the extent to which Section 2 of this Act allows
25 an exemption for the value of traded-in property; the balance
26 payable after deducting such trade-in allowance from the
27 total selling price; the amount of tax due from the retailer
28 with respect to such transaction; the amount of tax collected
29 from the purchaser by the retailer on such transaction (or
30 satisfactory evidence that such tax is not due in that
31 particular instance, if that is claimed to be the fact); the
32 place and date of the sale; a sufficient identification of
33 the property sold; such other information as is required in
34 Section 5-402 of the Illinois Vehicle Code, and such other
-9- LRB9008924KDdv
1 information as the Department may reasonably require.
2 The transaction reporting return in the case of
3 watercraft and aircraft must show the name and address of the
4 seller; the name and address of the purchaser; the amount of
5 the selling price including the amount allowed by the
6 retailer for traded-in property, if any; the amount allowed
7 by the retailer for the traded-in tangible personal property,
8 if any, to the extent to which Section 2 of this Act allows
9 an exemption for the value of traded-in property; the balance
10 payable after deducting such trade-in allowance from the
11 total selling price; the amount of tax due from the retailer
12 with respect to such transaction; the amount of tax collected
13 from the purchaser by the retailer on such transaction (or
14 satisfactory evidence that such tax is not due in that
15 particular instance, if that is claimed to be the fact); the
16 place and date of the sale, a sufficient identification of
17 the property sold, and such other information as the
18 Department may reasonably require.
19 Such transaction reporting return shall be filed not
20 later than 20 days after the date of delivery of the item
21 that is being sold, but may be filed by the retailer at any
22 time sooner than that if he chooses to do so. The
23 transaction reporting return and tax remittance or proof of
24 exemption from the tax that is imposed by this Act may be
25 transmitted to the Department by way of the State agency with
26 which, or State officer with whom, the tangible personal
27 property must be titled or registered (if titling or
28 registration is required) if the Department and such agency
29 or State officer determine that this procedure will expedite
30 the processing of applications for title or registration.
31 With each such transaction reporting return, the retailer
32 shall remit the proper amount of tax due (or shall submit
33 satisfactory evidence that the sale is not taxable if that is
34 the case), to the Department or its agents, whereupon the
-10- LRB9008924KDdv
1 Department shall issue, in the purchaser's name, a tax
2 receipt (or a certificate of exemption if the Department is
3 satisfied that the particular sale is tax exempt) which such
4 purchaser may submit to the agency with which, or State
5 officer with whom, he must title or register the tangible
6 personal property that is involved (if titling or
7 registration is required) in support of such purchaser's
8 application for an Illinois certificate or other evidence of
9 title or registration to such tangible personal property.
10 No retailer's failure or refusal to remit tax under this
11 Act precludes a user, who has paid the proper tax to the
12 retailer, from obtaining his certificate of title or other
13 evidence of title or registration (if titling or registration
14 is required) upon satisfying the Department that such user
15 has paid the proper tax (if tax is due) to the retailer. The
16 Department shall adopt appropriate rules to carry out the
17 mandate of this paragraph.
18 If the user who would otherwise pay tax to the retailer
19 wants the transaction reporting return filed and the payment
20 of tax or proof of exemption made to the Department before
21 the retailer is willing to take these actions and such user
22 has not paid the tax to the retailer, such user may certify
23 to the fact of such delay by the retailer, and may (upon the
24 Department being satisfied of the truth of such
25 certification) transmit the information required by the
26 transaction reporting return and the remittance for tax or
27 proof of exemption directly to the Department and obtain his
28 tax receipt or exemption determination, in which event the
29 transaction reporting return and tax remittance (if a tax
30 payment was required) shall be credited by the Department to
31 the proper retailer's account with the Department, but
32 without the 2.1% or 1.75% discount provided for in this
33 Section being allowed. When the user pays the tax directly
34 to the Department, he shall pay the tax in the same amount
-11- LRB9008924KDdv
1 and in the same form in which it would be remitted if the tax
2 had been remitted to the Department by the retailer.
3 Where a retailer collects the tax with respect to the
4 selling price of tangible personal property which he sells
5 and the purchaser thereafter returns such tangible personal
6 property and the retailer refunds the selling price thereof
7 to the purchaser, such retailer shall also refund, to the
8 purchaser, the tax so collected from the purchaser. When
9 filing his return for the period in which he refunds such tax
10 to the purchaser, the retailer may deduct the amount of the
11 tax so refunded by him to the purchaser from any other use
12 tax which such retailer may be required to pay or remit to
13 the Department, as shown by such return, if the amount of the
14 tax to be deducted was previously remitted to the Department
15 by such retailer. If the retailer has not previously
16 remitted the amount of such tax to the Department, he is
17 entitled to no deduction under this Act upon refunding such
18 tax to the purchaser.
19 Any retailer filing a return under this Section shall
20 also include (for the purpose of paying tax thereon) the
21 total tax covered by such return upon the selling price of
22 tangible personal property purchased by him at retail from a
23 retailer, but as to which the tax imposed by this Act was not
24 collected from the retailer filing such return, and such
25 retailer shall remit the amount of such tax to the Department
26 when filing such return.
27 If experience indicates such action to be practicable,
28 the Department may prescribe and furnish a combination or
29 joint return which will enable retailers, who are required to
30 file returns hereunder and also under the Retailers'
31 Occupation Tax Act, to furnish all the return information
32 required by both Acts on the one form.
33 Where the retailer has more than one business registered
34 with the Department under separate registration under this
-12- LRB9008924KDdv
1 Act, such retailer may not file each return that is due as a
2 single return covering all such registered businesses, but
3 shall file separate returns for each such registered
4 business.
5 Beginning January 1, 1990, each month the Department
6 shall pay into the State and Local Sales Tax Reform Fund, a
7 special fund in the State Treasury which is hereby created,
8 the net revenue realized for the preceding month from the 1%
9 tax on sales of food for human consumption which is to be
10 consumed off the premises where it is sold (other than
11 alcoholic beverages, soft drinks and food which has been
12 prepared for immediate consumption) and prescription and
13 nonprescription medicines, drugs, medical appliances and
14 insulin, urine testing materials, syringes and needles used
15 by diabetics.
16 Beginning January 1, 1990, each month the Department
17 shall pay into the County and Mass Transit District Fund 4%
18 of the net revenue realized for the preceding month from the
19 6.25% general rate on the selling price of tangible personal
20 property which is purchased outside Illinois at retail from a
21 retailer and which is titled or registered by an agency of
22 this State's government.
23 Beginning January 1, 1990, each month the Department
24 shall pay into the State and Local Sales Tax Reform Fund, a
25 special fund in the State Treasury, 20% of the net revenue
26 realized for the preceding month from the 6.25% general rate
27 on the selling price of tangible personal property, other
28 than tangible personal property which is purchased outside
29 Illinois at retail from a retailer and which is titled or
30 registered by an agency of this State's government.
31 Beginning January 1, 1990, each month the Department
32 shall pay into the Local Government Tax Fund 16% of the net
33 revenue realized for the preceding month from the 6.25%
34 general rate on the selling price of tangible personal
-13- LRB9008924KDdv
1 property which is purchased outside Illinois at retail from a
2 retailer and which is titled or registered by an agency of
3 this State's government.
4 Of the remainder of the moneys received by the Department
5 pursuant to this Act, (a) 1.75% thereof shall be paid into
6 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
7 and on and after July 1, 1989, 3.8% thereof shall be paid
8 into the Build Illinois Fund; provided, however, that if in
9 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
10 as the case may be, of the moneys received by the Department
11 and required to be paid into the Build Illinois Fund pursuant
12 to Section 3 of the Retailers' Occupation Tax Act, Section 9
13 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
14 Section 9 of the Service Occupation Tax Act, such Acts being
15 hereinafter called the "Tax Acts" and such aggregate of 2.2%
16 or 3.8%, as the case may be, of moneys being hereinafter
17 called the "Tax Act Amount", and (2) the amount transferred
18 to the Build Illinois Fund from the State and Local Sales Tax
19 Reform Fund shall be less than the Annual Specified Amount
20 (as defined in Section 3 of the Retailers' Occupation Tax
21 Act), an amount equal to the difference shall be immediately
22 paid into the Build Illinois Fund from other moneys received
23 by the Department pursuant to the Tax Acts; and further
24 provided, that if on the last business day of any month the
25 sum of (1) the Tax Act Amount required to be deposited into
26 the Build Illinois Bond Account in the Build Illinois Fund
27 during such month and (2) the amount transferred during such
28 month to the Build Illinois Fund from the State and Local
29 Sales Tax Reform Fund shall have been less than 1/12 of the
30 Annual Specified Amount, an amount equal to the difference
31 shall be immediately paid into the Build Illinois Fund from
32 other moneys received by the Department pursuant to the Tax
33 Acts; and, further provided, that in no event shall the
34 payments required under the preceding proviso result in
-14- LRB9008924KDdv
1 aggregate payments into the Build Illinois Fund pursuant to
2 this clause (b) for any fiscal year in excess of the greater
3 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
4 for such fiscal year; and, further provided, that the amounts
5 payable into the Build Illinois Fund under this clause (b)
6 shall be payable only until such time as the aggregate amount
7 on deposit under each trust indenture securing Bonds issued
8 and outstanding pursuant to the Build Illinois Bond Act is
9 sufficient, taking into account any future investment income,
10 to fully provide, in accordance with such indenture, for the
11 defeasance of or the payment of the principal of, premium, if
12 any, and interest on the Bonds secured by such indenture and
13 on any Bonds expected to be issued thereafter and all fees
14 and costs payable with respect thereto, all as certified by
15 the Director of the Bureau of the Budget. If on the last
16 business day of any month in which Bonds are outstanding
17 pursuant to the Build Illinois Bond Act, the aggregate of the
18 moneys deposited in the Build Illinois Bond Account in the
19 Build Illinois Fund in such month shall be less than the
20 amount required to be transferred in such month from the
21 Build Illinois Bond Account to the Build Illinois Bond
22 Retirement and Interest Fund pursuant to Section 13 of the
23 Build Illinois Bond Act, an amount equal to such deficiency
24 shall be immediately paid from other moneys received by the
25 Department pursuant to the Tax Acts to the Build Illinois
26 Fund; provided, however, that any amounts paid to the Build
27 Illinois Fund in any fiscal year pursuant to this sentence
28 shall be deemed to constitute payments pursuant to clause (b)
29 of the preceding sentence and shall reduce the amount
30 otherwise payable for such fiscal year pursuant to clause (b)
31 of the preceding sentence. The moneys received by the
32 Department pursuant to this Act and required to be deposited
33 into the Build Illinois Fund are subject to the pledge, claim
34 and charge set forth in Section 12 of the Build Illinois Bond
-15- LRB9008924KDdv
1 Act.
2 Subject to payment of amounts into the Build Illinois
3 Fund as provided in the preceding paragraph or in any
4 amendment thereto hereafter enacted, the following specified
5 monthly installment of the amount requested in the
6 certificate of the Chairman of the Metropolitan Pier and
7 Exposition Authority provided under Section 8.25f of the
8 State Finance Act, but not in excess of the sums designated
9 as "Total Deposit", shall be deposited in the aggregate from
10 collections under Section 9 of the Use Tax Act, Section 9 of
11 the Service Use Tax Act, Section 9 of the Service Occupation
12 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
13 into the McCormick Place Expansion Project Fund in the
14 specified fiscal years.
15 Fiscal Year Total Deposit
16 1993 $0
17 1994 53,000,000
18 1995 58,000,000
19 1996 61,000,000
20 1997 64,000,000
21 1998 68,000,000
22 1999 71,000,000
23 2000 75,000,000
24 2001 80,000,000
25 2002 84,000,000
26 2003 89,000,000
27 2004 and 93,000,000
28 each fiscal year
29 thereafter that bonds
30 are outstanding under
31 Section 13.2 of the
32 Metropolitan Pier and
33 Exposition Authority
34 Act.
-16- LRB9008924KDdv
1 Beginning July 20, 1993 and in each month of each fiscal
2 year thereafter, one-eighth of the amount requested in the
3 certificate of the Chairman of the Metropolitan Pier and
4 Exposition Authority for that fiscal year, less the amount
5 deposited into the McCormick Place Expansion Project Fund by
6 the State Treasurer in the respective month under subsection
7 (g) of Section 13 of the Metropolitan Pier and Exposition
8 Authority Act, plus cumulative deficiencies in the deposits
9 required under this Section for previous months and years,
10 shall be deposited into the McCormick Place Expansion Project
11 Fund, until the full amount requested for the fiscal year,
12 but not in excess of the amount specified above as "Total
13 Deposit", has been deposited.
14 Subject to payment of amounts into the Build Illinois
15 Fund and the McCormick Place Expansion Project Fund pursuant
16 to the preceding paragraphs or in any amendment thereto
17 hereafter enacted, each month the Department shall pay into
18 the Local Government Distributive Fund .4% of the net revenue
19 realized for the preceding month from the 5% general rate, or
20 .4% of 80% of the net revenue realized for the preceding
21 month from the 6.25% general rate, as the case may be, on the
22 selling price of tangible personal property which amount
23 shall, subject to appropriation, be distributed as provided
24 in Section 2 of the State Revenue Sharing Act. No payments or
25 distributions pursuant to this paragraph shall be made if the
26 tax imposed by this Act on photoprocessing products is
27 declared unconstitutional, or if the proceeds from such tax
28 are unavailable for distribution because of litigation.
29 Subject to payment of amounts into the Build Illinois
30 Fund, the McCormick Place Expansion Project Fund, and the
31 Local Government Distributive Fund pursuant to the preceding
32 paragraphs or in any amendments thereto hereafter enacted,
33 beginning July 1, 1993, the Department shall each month pay
34 into the Illinois Tax Increment Fund 0.27% of 80% of the net
-17- LRB9008924KDdv
1 revenue realized for the preceding month from the 6.25%
2 general rate on the selling price of tangible personal
3 property.
4 Of the remainder of the moneys received by the Department
5 pursuant to this Act, 75% thereof shall be paid into the
6 State Treasury and 25% shall be reserved in a special account
7 and used only for the transfer to the Common School Fund as
8 part of the monthly transfer from the General Revenue Fund in
9 accordance with Section 8a of the State Finance Act.
10 For each of the 12 months beginning July 1998 through
11 June 1999, as soon as possible after the last day of each
12 such month, upon certification from the Department, the
13 Comptroller shall order transferred and the Treasurer shall
14 transfer moneys received by the Department under this Act on
15 the use of gasoline from the General Revenue Fund to the Road
16 Fund in accordance with Section 3.5 of the Retailers'
17 Occupation Tax Act.
18 As soon as possible after the first day of each month,
19 upon certification of the Department of Revenue, the
20 Comptroller shall order transferred and the Treasurer shall
21 transfer from the General Revenue Fund to the Motor Fuel Tax
22 Fund an amount equal to 1.7% of 80% of the net revenue
23 realized under this Act for the second preceding month;
24 except that this transfer shall not be made for the months
25 February through June of 1992.
26 Net revenue realized for a month shall be the revenue
27 collected by the State pursuant to this Act, less the amount
28 paid out during that month as refunds to taxpayers for
29 overpayment of liability.
30 For greater simplicity of administration, manufacturers,
31 importers and wholesalers whose products are sold at retail
32 in Illinois by numerous retailers, and who wish to do so, may
33 assume the responsibility for accounting and paying to the
34 Department all tax accruing under this Act with respect to
-18- LRB9008924KDdv
1 such sales, if the retailers who are affected do not make
2 written objection to the Department to this arrangement.
3 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
4 (Text of Section after amendment by P.A. 90-491)
5 Sec. 9. Except as to motor vehicles, watercraft,
6 aircraft, and trailers that are required to be registered
7 with an agency of this State, each retailer required or
8 authorized to collect the tax imposed by this Act shall pay
9 to the Department the amount of such tax (except as otherwise
10 provided) at the time when he is required to file his return
11 for the period during which such tax was collected, less a
12 discount of 2.1% prior to January 1, 1990, and 1.75% on and
13 after January 1, 1990, or $5 per calendar year, whichever is
14 greater, which is allowed to reimburse the retailer for
15 expenses incurred in collecting the tax, keeping records,
16 preparing and filing returns, remitting the tax and supplying
17 data to the Department on request. In the case of retailers
18 who report and pay the tax on a transaction by transaction
19 basis, as provided in this Section, such discount shall be
20 taken with each such tax remittance instead of when such
21 retailer files his periodic return. A retailer need not
22 remit that part of any tax collected by him to the extent
23 that he is required to remit and does remit the tax imposed
24 by the Retailers' Occupation Tax Act, with respect to the
25 sale of the same property.
26 Where such tangible personal property is sold under a
27 conditional sales contract, or under any other form of sale
28 wherein the payment of the principal sum, or a part thereof,
29 is extended beyond the close of the period for which the
30 return is filed, the retailer, in collecting the tax (except
31 as to motor vehicles, watercraft, aircraft, and trailers that
32 are required to be registered with an agency of this State),
33 may collect for each tax return period, only the tax
34 applicable to that part of the selling price actually
-19- LRB9008924KDdv
1 received during such tax return period.
2 Except as provided in this Section, on or before the
3 twentieth day of each calendar month, such retailer shall
4 file a return for the preceding calendar month. Such return
5 shall be filed on forms prescribed by the Department and
6 shall furnish such information as the Department may
7 reasonably require.
8 The Department may require returns to be filed on a
9 quarterly basis. If so required, a return for each calendar
10 quarter shall be filed on or before the twentieth day of the
11 calendar month following the end of such calendar quarter.
12 The taxpayer shall also file a return with the Department for
13 each of the first two months of each calendar quarter, on or
14 before the twentieth day of the following calendar month,
15 stating:
16 1. The name of the seller;
17 2. The address of the principal place of business
18 from which he engages in the business of selling tangible
19 personal property at retail in this State;
20 3. The total amount of taxable receipts received by
21 him during the preceding calendar month from sales of
22 tangible personal property by him during such preceding
23 calendar month, including receipts from charge and time
24 sales, but less all deductions allowed by law;
25 4. The amount of credit provided in Section 2d of
26 this Act;
27 5. The amount of tax due;
28 5-5. The signature of the taxpayer; and
29 6. Such other reasonable information as the
30 Department may require.
31 If a taxpayer fails to sign a return within 30 days after
32 the proper notice and demand for signature by the Department,
33 the return shall be considered valid and any amount shown to
34 be due on the return shall be deemed assessed.
-20- LRB9008924KDdv
1 Beginning October 1, 1993, a taxpayer who has an average
2 monthly tax liability of $150,000 or more shall make all
3 payments required by rules of the Department by electronic
4 funds transfer. Beginning October 1, 1994, a taxpayer who has
5 an average monthly tax liability of $100,000 or more shall
6 make all payments required by rules of the Department by
7 electronic funds transfer. Beginning October 1, 1995, a
8 taxpayer who has an average monthly tax liability of $50,000
9 or more shall make all payments required by rules of the
10 Department by electronic funds transfer. The term "average
11 monthly tax liability" means the sum of the taxpayer's
12 liabilities under this Act, and under all other State and
13 local occupation and use tax laws administered by the
14 Department, for the immediately preceding calendar year
15 divided by 12.
16 Before August 1 of each year beginning in 1993, the
17 Department shall notify all taxpayers required to make
18 payments by electronic funds transfer. All taxpayers required
19 to make payments by electronic funds transfer shall make
20 those payments for a minimum of one year beginning on October
21 1.
22 Any taxpayer not required to make payments by electronic
23 funds transfer may make payments by electronic funds transfer
24 with the permission of the Department.
25 All taxpayers required to make payment by electronic
26 funds transfer and any taxpayers authorized to voluntarily
27 make payments by electronic funds transfer shall make those
28 payments in the manner authorized by the Department.
29 The Department shall adopt such rules as are necessary to
30 effectuate a program of electronic funds transfer and the
31 requirements of this Section.
32 If the taxpayer's average monthly tax liability to the
33 Department under this Act, the Retailers' Occupation Tax Act,
34 the Service Occupation Tax Act, the Service Use Tax Act was
-21- LRB9008924KDdv
1 $10,000 or more during the preceding 4 complete calendar
2 quarters, he shall file a return with the Department each
3 month by the 20th day of the month next following the month
4 during which such tax liability is incurred and shall make
5 payments to the Department on or before the 7th, 15th, 22nd
6 and last day of the month during which such liability is
7 incurred. If the month during which such tax liability is
8 incurred began prior to January 1, 1985, each payment shall
9 be in an amount equal to 1/4 of the taxpayer's actual
10 liability for the month or an amount set by the Department
11 not to exceed 1/4 of the average monthly liability of the
12 taxpayer to the Department for the preceding 4 complete
13 calendar quarters (excluding the month of highest liability
14 and the month of lowest liability in such 4 quarter period).
15 If the month during which such tax liability is incurred
16 begins on or after January 1, 1985, and prior to January 1,
17 1987, each payment shall be in an amount equal to 22.5% of
18 the taxpayer's actual liability for the month or 27.5% of the
19 taxpayer's liability for the same calendar month of the
20 preceding year. If the month during which such tax liability
21 is incurred begins on or after January 1, 1987, and prior to
22 January 1, 1988, each payment shall be in an amount equal to
23 22.5% of the taxpayer's actual liability for the month or
24 26.25% of the taxpayer's liability for the same calendar
25 month of the preceding year. If the month during which such
26 tax liability is incurred begins on or after January 1, 1988,
27 and prior to January 1, 1989, or begins on or after January
28 1, 1996, each payment shall be in an amount equal to 22.5% of
29 the taxpayer's actual liability for the month or 25% of the
30 taxpayer's liability for the same calendar month of the
31 preceding year. If the month during which such tax liability
32 is incurred begins on or after January 1, 1989, and prior to
33 January 1, 1996, each payment shall be in an amount equal to
34 22.5% of the taxpayer's actual liability for the month or 25%
-22- LRB9008924KDdv
1 of the taxpayer's liability for the same calendar month of
2 the preceding year or 100% of the taxpayer's actual liability
3 for the quarter monthly reporting period. The amount of such
4 quarter monthly payments shall be credited against the final
5 tax liability of the taxpayer's return for that month. Once
6 applicable, the requirement of the making of quarter monthly
7 payments to the Department shall continue until such
8 taxpayer's average monthly liability to the Department during
9 the preceding 4 complete calendar quarters (excluding the
10 month of highest liability and the month of lowest liability)
11 is less than $9,000, or until such taxpayer's average monthly
12 liability to the Department as computed for each calendar
13 quarter of the 4 preceding complete calendar quarter period
14 is less than $10,000. However, if a taxpayer can show the
15 Department that a substantial change in the taxpayer's
16 business has occurred which causes the taxpayer to anticipate
17 that his average monthly tax liability for the reasonably
18 foreseeable future will fall below $10,000, then such
19 taxpayer may petition the Department for change in such
20 taxpayer's reporting status. The Department shall change
21 such taxpayer's reporting status unless it finds that such
22 change is seasonal in nature and not likely to be long term.
23 If any such quarter monthly payment is not paid at the time
24 or in the amount required by this Section, then the taxpayer
25 shall be liable for penalties and interest on the difference
26 between the minimum amount due and the amount of such quarter
27 monthly payment actually and timely paid, except insofar as
28 the taxpayer has previously made payments for that month to
29 the Department in excess of the minimum payments previously
30 due as provided in this Section. The Department shall make
31 reasonable rules and regulations to govern the quarter
32 monthly payment amount and quarter monthly payment dates for
33 taxpayers who file on other than a calendar monthly basis.
34 If any such payment provided for in this Section exceeds
-23- LRB9008924KDdv
1 the taxpayer's liabilities under this Act, the Retailers'
2 Occupation Tax Act, the Service Occupation Tax Act and the
3 Service Use Tax Act, as shown by an original monthly return,
4 the Department shall issue to the taxpayer a credit
5 memorandum no later than 30 days after the date of payment,
6 which memorandum may be submitted by the taxpayer to the
7 Department in payment of tax liability subsequently to be
8 remitted by the taxpayer to the Department or be assigned by
9 the taxpayer to a similar taxpayer under this Act, the
10 Retailers' Occupation Tax Act, the Service Occupation Tax Act
11 or the Service Use Tax Act, in accordance with reasonable
12 rules and regulations to be prescribed by the Department,
13 except that if such excess payment is shown on an original
14 monthly return and is made after December 31, 1986, no credit
15 memorandum shall be issued, unless requested by the taxpayer.
16 If no such request is made, the taxpayer may credit such
17 excess payment against tax liability subsequently to be
18 remitted by the taxpayer to the Department under this Act,
19 the Retailers' Occupation Tax Act, the Service Occupation Tax
20 Act or the Service Use Tax Act, in accordance with reasonable
21 rules and regulations prescribed by the Department. If the
22 Department subsequently determines that all or any part of
23 the credit taken was not actually due to the taxpayer, the
24 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
25 by 2.1% or 1.75% of the difference between the credit taken
26 and that actually due, and the taxpayer shall be liable for
27 penalties and interest on such difference.
28 If the retailer is otherwise required to file a monthly
29 return and if the retailer's average monthly tax liability to
30 the Department does not exceed $200, the Department may
31 authorize his returns to be filed on a quarter annual basis,
32 with the return for January, February, and March of a given
33 year being due by April 20 of such year; with the return for
34 April, May and June of a given year being due by July 20 of
-24- LRB9008924KDdv
1 such year; with the return for July, August and September of
2 a given year being due by October 20 of such year, and with
3 the return for October, November and December of a given year
4 being due by January 20 of the following year.
5 If the retailer is otherwise required to file a monthly
6 or quarterly return and if the retailer's average monthly tax
7 liability to the Department does not exceed $50, the
8 Department may authorize his returns to be filed on an annual
9 basis, with the return for a given year being due by January
10 20 of the following year.
11 Such quarter annual and annual returns, as to form and
12 substance, shall be subject to the same requirements as
13 monthly returns.
14 Notwithstanding any other provision in this Act
15 concerning the time within which a retailer may file his
16 return, in the case of any retailer who ceases to engage in a
17 kind of business which makes him responsible for filing
18 returns under this Act, such retailer shall file a final
19 return under this Act with the Department not more than one
20 month after discontinuing such business.
21 In addition, with respect to motor vehicles, watercraft,
22 aircraft, and trailers that are required to be registered
23 with an agency of this State, every retailer selling this
24 kind of tangible personal property shall file, with the
25 Department, upon a form to be prescribed and supplied by the
26 Department, a separate return for each such item of tangible
27 personal property which the retailer sells, except that
28 where, in the same transaction, a retailer of aircraft,
29 watercraft, motor vehicles or trailers transfers more than
30 one aircraft, watercraft, motor vehicle or trailer to another
31 aircraft, watercraft, motor vehicle or trailer retailer for
32 the purpose of resale, that seller for resale may report the
33 transfer of all the aircraft, watercraft, motor vehicles or
34 trailers involved in that transaction to the Department on
-25- LRB9008924KDdv
1 the same uniform invoice-transaction reporting return form.
2 For purposes of this Section, "watercraft" means a Class 2,
3 Class 3, or Class 4 watercraft as defined in Section 3-2 of
4 the Boat Registration and Safety Act, a personal watercraft,
5 or any boat equipped with an inboard motor.
6 The transaction reporting return in the case of motor
7 vehicles or trailers that are required to be registered with
8 an agency of this State, shall be the same document as the
9 Uniform Invoice referred to in Section 5-402 of the Illinois
10 Vehicle Code and must show the name and address of the
11 seller; the name and address of the purchaser; the amount of
12 the selling price including the amount allowed by the
13 retailer for traded-in property, if any; the amount allowed
14 by the retailer for the traded-in tangible personal property,
15 if any, to the extent to which Section 2 of this Act allows
16 an exemption for the value of traded-in property; the balance
17 payable after deducting such trade-in allowance from the
18 total selling price; the amount of tax due from the retailer
19 with respect to such transaction; the amount of tax collected
20 from the purchaser by the retailer on such transaction (or
21 satisfactory evidence that such tax is not due in that
22 particular instance, if that is claimed to be the fact); the
23 place and date of the sale; a sufficient identification of
24 the property sold; such other information as is required in
25 Section 5-402 of the Illinois Vehicle Code, and such other
26 information as the Department may reasonably require.
27 The transaction reporting return in the case of
28 watercraft and aircraft must show the name and address of the
29 seller; the name and address of the purchaser; the amount of
30 the selling price including the amount allowed by the
31 retailer for traded-in property, if any; the amount allowed
32 by the retailer for the traded-in tangible personal property,
33 if any, to the extent to which Section 2 of this Act allows
34 an exemption for the value of traded-in property; the balance
-26- LRB9008924KDdv
1 payable after deducting such trade-in allowance from the
2 total selling price; the amount of tax due from the retailer
3 with respect to such transaction; the amount of tax collected
4 from the purchaser by the retailer on such transaction (or
5 satisfactory evidence that such tax is not due in that
6 particular instance, if that is claimed to be the fact); the
7 place and date of the sale, a sufficient identification of
8 the property sold, and such other information as the
9 Department may reasonably require.
10 Such transaction reporting return shall be filed not
11 later than 20 days after the date of delivery of the item
12 that is being sold, but may be filed by the retailer at any
13 time sooner than that if he chooses to do so. The
14 transaction reporting return and tax remittance or proof of
15 exemption from the tax that is imposed by this Act may be
16 transmitted to the Department by way of the State agency with
17 which, or State officer with whom, the tangible personal
18 property must be titled or registered (if titling or
19 registration is required) if the Department and such agency
20 or State officer determine that this procedure will expedite
21 the processing of applications for title or registration.
22 With each such transaction reporting return, the retailer
23 shall remit the proper amount of tax due (or shall submit
24 satisfactory evidence that the sale is not taxable if that is
25 the case), to the Department or its agents, whereupon the
26 Department shall issue, in the purchaser's name, a tax
27 receipt (or a certificate of exemption if the Department is
28 satisfied that the particular sale is tax exempt) which such
29 purchaser may submit to the agency with which, or State
30 officer with whom, he must title or register the tangible
31 personal property that is involved (if titling or
32 registration is required) in support of such purchaser's
33 application for an Illinois certificate or other evidence of
34 title or registration to such tangible personal property.
-27- LRB9008924KDdv
1 No retailer's failure or refusal to remit tax under this
2 Act precludes a user, who has paid the proper tax to the
3 retailer, from obtaining his certificate of title or other
4 evidence of title or registration (if titling or registration
5 is required) upon satisfying the Department that such user
6 has paid the proper tax (if tax is due) to the retailer. The
7 Department shall adopt appropriate rules to carry out the
8 mandate of this paragraph.
9 If the user who would otherwise pay tax to the retailer
10 wants the transaction reporting return filed and the payment
11 of tax or proof of exemption made to the Department before
12 the retailer is willing to take these actions and such user
13 has not paid the tax to the retailer, such user may certify
14 to the fact of such delay by the retailer, and may (upon the
15 Department being satisfied of the truth of such
16 certification) transmit the information required by the
17 transaction reporting return and the remittance for tax or
18 proof of exemption directly to the Department and obtain his
19 tax receipt or exemption determination, in which event the
20 transaction reporting return and tax remittance (if a tax
21 payment was required) shall be credited by the Department to
22 the proper retailer's account with the Department, but
23 without the 2.1% or 1.75% discount provided for in this
24 Section being allowed. When the user pays the tax directly
25 to the Department, he shall pay the tax in the same amount
26 and in the same form in which it would be remitted if the tax
27 had been remitted to the Department by the retailer.
28 Where a retailer collects the tax with respect to the
29 selling price of tangible personal property which he sells
30 and the purchaser thereafter returns such tangible personal
31 property and the retailer refunds the selling price thereof
32 to the purchaser, such retailer shall also refund, to the
33 purchaser, the tax so collected from the purchaser. When
34 filing his return for the period in which he refunds such tax
-28- LRB9008924KDdv
1 to the purchaser, the retailer may deduct the amount of the
2 tax so refunded by him to the purchaser from any other use
3 tax which such retailer may be required to pay or remit to
4 the Department, as shown by such return, if the amount of the
5 tax to be deducted was previously remitted to the Department
6 by such retailer. If the retailer has not previously
7 remitted the amount of such tax to the Department, he is
8 entitled to no deduction under this Act upon refunding such
9 tax to the purchaser.
10 Any retailer filing a return under this Section shall
11 also include (for the purpose of paying tax thereon) the
12 total tax covered by such return upon the selling price of
13 tangible personal property purchased by him at retail from a
14 retailer, but as to which the tax imposed by this Act was not
15 collected from the retailer filing such return, and such
16 retailer shall remit the amount of such tax to the Department
17 when filing such return.
18 If experience indicates such action to be practicable,
19 the Department may prescribe and furnish a combination or
20 joint return which will enable retailers, who are required to
21 file returns hereunder and also under the Retailers'
22 Occupation Tax Act, to furnish all the return information
23 required by both Acts on the one form.
24 Where the retailer has more than one business registered
25 with the Department under separate registration under this
26 Act, such retailer may not file each return that is due as a
27 single return covering all such registered businesses, but
28 shall file separate returns for each such registered
29 business.
30 Beginning January 1, 1990, each month the Department
31 shall pay into the State and Local Sales Tax Reform Fund, a
32 special fund in the State Treasury which is hereby created,
33 the net revenue realized for the preceding month from the 1%
34 tax on sales of food for human consumption which is to be
-29- LRB9008924KDdv
1 consumed off the premises where it is sold (other than
2 alcoholic beverages, soft drinks and food which has been
3 prepared for immediate consumption) and prescription and
4 nonprescription medicines, drugs, medical appliances and
5 insulin, urine testing materials, syringes and needles used
6 by diabetics.
7 Beginning January 1, 1990, each month the Department
8 shall pay into the County and Mass Transit District Fund 4%
9 of the net revenue realized for the preceding month from the
10 6.25% general rate on the selling price of tangible personal
11 property which is purchased outside Illinois at retail from a
12 retailer and which is titled or registered by an agency of
13 this State's government.
14 Beginning January 1, 1990, each month the Department
15 shall pay into the State and Local Sales Tax Reform Fund, a
16 special fund in the State Treasury, 20% of the net revenue
17 realized for the preceding month from the 6.25% general rate
18 on the selling price of tangible personal property, other
19 than tangible personal property which is purchased outside
20 Illinois at retail from a retailer and which is titled or
21 registered by an agency of this State's government.
22 Beginning January 1, 1990, each month the Department
23 shall pay into the Local Government Tax Fund 16% of the net
24 revenue realized for the preceding month from the 6.25%
25 general rate on the selling price of tangible personal
26 property which is purchased outside Illinois at retail from a
27 retailer and which is titled or registered by an agency of
28 this State's government.
29 Of the remainder of the moneys received by the Department
30 pursuant to this Act, (a) 1.75% thereof shall be paid into
31 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
32 and on and after July 1, 1989, 3.8% thereof shall be paid
33 into the Build Illinois Fund; provided, however, that if in
34 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
-30- LRB9008924KDdv
1 as the case may be, of the moneys received by the Department
2 and required to be paid into the Build Illinois Fund pursuant
3 to Section 3 of the Retailers' Occupation Tax Act, Section 9
4 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
5 Section 9 of the Service Occupation Tax Act, such Acts being
6 hereinafter called the "Tax Acts" and such aggregate of 2.2%
7 or 3.8%, as the case may be, of moneys being hereinafter
8 called the "Tax Act Amount", and (2) the amount transferred
9 to the Build Illinois Fund from the State and Local Sales Tax
10 Reform Fund shall be less than the Annual Specified Amount
11 (as defined in Section 3 of the Retailers' Occupation Tax
12 Act), an amount equal to the difference shall be immediately
13 paid into the Build Illinois Fund from other moneys received
14 by the Department pursuant to the Tax Acts; and further
15 provided, that if on the last business day of any month the
16 sum of (1) the Tax Act Amount required to be deposited into
17 the Build Illinois Bond Account in the Build Illinois Fund
18 during such month and (2) the amount transferred during such
19 month to the Build Illinois Fund from the State and Local
20 Sales Tax Reform Fund shall have been less than 1/12 of the
21 Annual Specified Amount, an amount equal to the difference
22 shall be immediately paid into the Build Illinois Fund from
23 other moneys received by the Department pursuant to the Tax
24 Acts; and, further provided, that in no event shall the
25 payments required under the preceding proviso result in
26 aggregate payments into the Build Illinois Fund pursuant to
27 this clause (b) for any fiscal year in excess of the greater
28 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
29 for such fiscal year; and, further provided, that the amounts
30 payable into the Build Illinois Fund under this clause (b)
31 shall be payable only until such time as the aggregate amount
32 on deposit under each trust indenture securing Bonds issued
33 and outstanding pursuant to the Build Illinois Bond Act is
34 sufficient, taking into account any future investment income,
-31- LRB9008924KDdv
1 to fully provide, in accordance with such indenture, for the
2 defeasance of or the payment of the principal of, premium, if
3 any, and interest on the Bonds secured by such indenture and
4 on any Bonds expected to be issued thereafter and all fees
5 and costs payable with respect thereto, all as certified by
6 the Director of the Bureau of the Budget. If on the last
7 business day of any month in which Bonds are outstanding
8 pursuant to the Build Illinois Bond Act, the aggregate of the
9 moneys deposited in the Build Illinois Bond Account in the
10 Build Illinois Fund in such month shall be less than the
11 amount required to be transferred in such month from the
12 Build Illinois Bond Account to the Build Illinois Bond
13 Retirement and Interest Fund pursuant to Section 13 of the
14 Build Illinois Bond Act, an amount equal to such deficiency
15 shall be immediately paid from other moneys received by the
16 Department pursuant to the Tax Acts to the Build Illinois
17 Fund; provided, however, that any amounts paid to the Build
18 Illinois Fund in any fiscal year pursuant to this sentence
19 shall be deemed to constitute payments pursuant to clause (b)
20 of the preceding sentence and shall reduce the amount
21 otherwise payable for such fiscal year pursuant to clause (b)
22 of the preceding sentence. The moneys received by the
23 Department pursuant to this Act and required to be deposited
24 into the Build Illinois Fund are subject to the pledge, claim
25 and charge set forth in Section 12 of the Build Illinois Bond
26 Act.
27 Subject to payment of amounts into the Build Illinois
28 Fund as provided in the preceding paragraph or in any
29 amendment thereto hereafter enacted, the following specified
30 monthly installment of the amount requested in the
31 certificate of the Chairman of the Metropolitan Pier and
32 Exposition Authority provided under Section 8.25f of the
33 State Finance Act, but not in excess of the sums designated
34 as "Total Deposit", shall be deposited in the aggregate from
-32- LRB9008924KDdv
1 collections under Section 9 of the Use Tax Act, Section 9 of
2 the Service Use Tax Act, Section 9 of the Service Occupation
3 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
4 into the McCormick Place Expansion Project Fund in the
5 specified fiscal years.
6 Fiscal Year Total Deposit
7 1993 $0
8 1994 53,000,000
9 1995 58,000,000
10 1996 61,000,000
11 1997 64,000,000
12 1998 68,000,000
13 1999 71,000,000
14 2000 75,000,000
15 2001 80,000,000
16 2002 84,000,000
17 2003 89,000,000
18 2004 and 93,000,000
19 each fiscal year
20 thereafter that bonds
21 are outstanding under
22 Section 13.2 of the
23 Metropolitan Pier and
24 Exposition Authority
25 Act.
26 Beginning July 20, 1993 and in each month of each fiscal
27 year thereafter, one-eighth of the amount requested in the
28 certificate of the Chairman of the Metropolitan Pier and
29 Exposition Authority for that fiscal year, less the amount
30 deposited into the McCormick Place Expansion Project Fund by
31 the State Treasurer in the respective month under subsection
32 (g) of Section 13 of the Metropolitan Pier and Exposition
33 Authority Act, plus cumulative deficiencies in the deposits
34 required under this Section for previous months and years,
-33- LRB9008924KDdv
1 shall be deposited into the McCormick Place Expansion Project
2 Fund, until the full amount requested for the fiscal year,
3 but not in excess of the amount specified above as "Total
4 Deposit", has been deposited.
5 Subject to payment of amounts into the Build Illinois
6 Fund and the McCormick Place Expansion Project Fund pursuant
7 to the preceding paragraphs or in any amendment thereto
8 hereafter enacted, each month the Department shall pay into
9 the Local Government Distributive Fund .4% of the net revenue
10 realized for the preceding month from the 5% general rate, or
11 .4% of 80% of the net revenue realized for the preceding
12 month from the 6.25% general rate, as the case may be, on the
13 selling price of tangible personal property which amount
14 shall, subject to appropriation, be distributed as provided
15 in Section 2 of the State Revenue Sharing Act. No payments or
16 distributions pursuant to this paragraph shall be made if the
17 tax imposed by this Act on photoprocessing products is
18 declared unconstitutional, or if the proceeds from such tax
19 are unavailable for distribution because of litigation.
20 Subject to payment of amounts into the Build Illinois
21 Fund, the McCormick Place Expansion Project Fund, and the
22 Local Government Distributive Fund pursuant to the preceding
23 paragraphs or in any amendments thereto hereafter enacted,
24 beginning July 1, 1993, the Department shall each month pay
25 into the Illinois Tax Increment Fund 0.27% of 80% of the net
26 revenue realized for the preceding month from the 6.25%
27 general rate on the selling price of tangible personal
28 property.
29 Of the remainder of the moneys received by the Department
30 pursuant to this Act, 75% thereof shall be paid into the
31 State Treasury and 25% shall be reserved in a special account
32 and used only for the transfer to the Common School Fund as
33 part of the monthly transfer from the General Revenue Fund in
34 accordance with Section 8a of the State Finance Act.
-34- LRB9008924KDdv
1 For each of the 12 months beginning July 1998 through
2 June 1999, as soon as possible after the last day of each
3 such month, upon certification from the Department of
4 Revenue, the Comptroller shall order transferred and the
5 Treasurer shall transfer moneys received by the Department
6 under this Act on the use of gasoline from the General
7 Revenue Fund to the Road Fund in accordance with Section 3.5
8 of the Retailers' Occupation Tax Act.
9 As soon as possible after the first day of each month,
10 upon certification of the Department of Revenue, the
11 Comptroller shall order transferred and the Treasurer shall
12 transfer from the General Revenue Fund to the Motor Fuel Tax
13 Fund an amount equal to 1.7% of 80% of the net revenue
14 realized under this Act for the second preceding month;
15 except that this transfer shall not be made for the months
16 February through June of 1992.
17 Net revenue realized for a month shall be the revenue
18 collected by the State pursuant to this Act, less the amount
19 paid out during that month as refunds to taxpayers for
20 overpayment of liability.
21 For greater simplicity of administration, manufacturers,
22 importers and wholesalers whose products are sold at retail
23 in Illinois by numerous retailers, and who wish to do so, may
24 assume the responsibility for accounting and paying to the
25 Department all tax accruing under this Act with respect to
26 such sales, if the retailers who are affected do not make
27 written objection to the Department to this arrangement.
28 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
29 90-491, eff. 1-1-99.)
30 Section 10. The Service Use Tax Act is amended by
31 changing Section 9 as follows:
32 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
-35- LRB9008924KDdv
1 Sec. 9. Each serviceman required or authorized to
2 collect the tax herein imposed shall pay to the Department
3 the amount of such tax (except as otherwise provided) at the
4 time when he is required to file his return for the period
5 during which such tax was collected, less a discount of 2.1%
6 prior to January 1, 1990 and 1.75% on and after January 1,
7 1990, or $5 per calendar year, whichever is greater, which is
8 allowed to reimburse the serviceman for expenses incurred in
9 collecting the tax, keeping records, preparing and filing
10 returns, remitting the tax and supplying data to the
11 Department on request. A serviceman need not remit that part
12 of any tax collected by him to the extent that he is required
13 to pay and does pay the tax imposed by the Service Occupation
14 Tax Act with respect to his sale of service involving the
15 incidental transfer by him of the same property.
16 Except as provided hereinafter in this Section, on or
17 before the twentieth day of each calendar month, such
18 serviceman shall file a return for the preceding calendar
19 month in accordance with reasonable Rules and Regulations to
20 be promulgated by the Department. Such return shall be filed
21 on a form prescribed by the Department and shall contain such
22 information as the Department may reasonably require.
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 business as a serviceman in this
34 State;
-36- LRB9008924KDdv
1 3. The total amount of taxable receipts received by
2 him during the preceding calendar month, including
3 receipts from charge and time sales, but less all
4 deductions allowed by law;
5 4. The amount of credit provided in Section 2d of
6 this Act;
7 5. The amount of tax due;
8 5-5. The signature of the taxpayer; and
9 6. Such other reasonable information as the
10 Department may require.
11 If a taxpayer fails to sign a return within 30 days after
12 the proper notice and demand for signature by the Department,
13 the return shall be considered valid and any amount shown to
14 be due on the return shall be deemed assessed.
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" means 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 required
33 to make payments by electronic funds transfer shall make
34 those payments for a minimum of one year beginning on October
-37- LRB9008924KDdv
1 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 If the serviceman is otherwise required to file a monthly
13 return and if the serviceman's average monthly tax liability
14 to the Department does not exceed $200, the Department may
15 authorize his returns to be filed on a quarter annual basis,
16 with the return for January, February and March of a given
17 year being due by April 20 of such year; with the return for
18 April, May and June of a given year being due by July 20 of
19 such year; with the return for July, August and September of
20 a given year being due by October 20 of such year, and with
21 the return for October, November and December of a given year
22 being due by January 20 of the following year.
23 If the serviceman is otherwise required to file a monthly
24 or quarterly return and if the serviceman's average monthly
25 tax liability to the Department does not exceed $50, the
26 Department may authorize his returns to be filed on an annual
27 basis, with the return for a given year being due by January
28 20 of the following year.
29 Such quarter annual and annual returns, as to form and
30 substance, shall be subject to the same requirements as
31 monthly returns.
32 Notwithstanding any other provision in this Act
33 concerning the time within which a serviceman may file his
34 return, in the case of any serviceman who ceases to engage in
-38- LRB9008924KDdv
1 a kind of business which makes him responsible for filing
2 returns under this Act, such serviceman shall file a final
3 return under this Act with the Department not more than 1
4 month after discontinuing such business.
5 Where a serviceman collects the tax with respect to the
6 selling price of property which he sells and the purchaser
7 thereafter returns such property and the serviceman refunds
8 the selling price thereof to the purchaser, such serviceman
9 shall also refund, to the purchaser, the tax so collected
10 from the purchaser. When filing his return for the period in
11 which he refunds such tax to the purchaser, the serviceman
12 may deduct the amount of the tax so refunded by him to the
13 purchaser from any other Service Use Tax, Service Occupation
14 Tax, retailers' occupation tax or use tax which such
15 serviceman may be required to pay or remit to the Department,
16 as shown by such return, provided that the amount of the tax
17 to be deducted shall previously have been remitted to the
18 Department by such serviceman. If the serviceman shall not
19 previously have remitted the amount of such tax to the
20 Department, he shall be entitled to no deduction hereunder
21 upon refunding such tax to the purchaser.
22 Any serviceman filing a return hereunder shall also
23 include the total tax upon the selling price of tangible
24 personal property purchased for use by him as an incident to
25 a sale of service, and such serviceman shall remit the amount
26 of such tax to the Department when filing such return.
27 If experience indicates such action to be practicable,
28 the Department may prescribe and furnish a combination or
29 joint return which will enable servicemen, who are required
30 to file returns hereunder and also under the Service
31 Occupation Tax Act, to furnish all the return information
32 required by both Acts on the one form.
33 Where the serviceman has more than one business
34 registered with the Department under separate registration
-39- LRB9008924KDdv
1 hereunder, such serviceman shall not file each return that is
2 due as a single return covering all such registered
3 businesses, but shall file separate returns for each such
4 registered business.
5 Beginning January 1, 1990, each month the Department
6 shall pay into the State and Local Tax Reform Fund, a special
7 fund in the State Treasury, the net revenue realized for the
8 preceding month from the 1% tax on sales of food for human
9 consumption which is to be consumed off the premises where it
10 is sold (other than alcoholic beverages, soft drinks and food
11 which has been prepared for immediate consumption) and
12 prescription and nonprescription medicines, drugs, medical
13 appliances and insulin, urine testing materials, syringes and
14 needles used by diabetics.
15 Beginning January 1, 1990, each month the Department
16 shall pay into the State and Local Sales Tax Reform Fund 20%
17 of the net revenue realized for the preceding month from the
18 6.25% general rate on transfers of tangible personal
19 property, other than tangible personal property which is
20 purchased outside Illinois at retail from a retailer and
21 which is titled or registered by an agency of this State's
22 government.
23 Of the remainder of the moneys received by the Department
24 pursuant to this Act, (a) 1.75% thereof shall be paid into
25 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
26 and on and after July 1, 1989, 3.8% thereof shall be paid
27 into the Build Illinois Fund; provided, however, that if in
28 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
29 as the case may be, of the moneys received by the Department
30 and required to be paid into the Build Illinois Fund pursuant
31 to Section 3 of the Retailers' Occupation Tax Act, Section 9
32 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
33 Section 9 of the Service Occupation Tax Act, such Acts being
34 hereinafter called the "Tax Acts" and such aggregate of 2.2%
-40- LRB9008924KDdv
1 or 3.8%, as the case may be, of moneys being hereinafter
2 called the "Tax Act Amount", and (2) the amount transferred
3 to the Build Illinois Fund from the State and Local Sales Tax
4 Reform Fund shall be less than the Annual Specified Amount
5 (as defined in Section 3 of the Retailers' Occupation Tax
6 Act), an amount equal to the difference shall be immediately
7 paid into the Build Illinois Fund from other moneys received
8 by the Department pursuant to the Tax Acts; and further
9 provided, that if on the last business day of any month the
10 sum of (1) the Tax Act Amount required to be deposited into
11 the Build Illinois Bond Account in the Build Illinois Fund
12 during such month and (2) the amount transferred during such
13 month to the Build Illinois Fund from the State and Local
14 Sales Tax Reform Fund shall have been less than 1/12 of the
15 Annual Specified Amount, an amount equal to the difference
16 shall be immediately paid into the Build Illinois Fund from
17 other moneys received by the Department pursuant to the Tax
18 Acts; and, further provided, that in no event shall the
19 payments required under the preceding proviso result in
20 aggregate payments into the Build Illinois Fund pursuant to
21 this clause (b) for any fiscal year in excess of the greater
22 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
23 for such fiscal year; and, further provided, that the amounts
24 payable into the Build Illinois Fund under this clause (b)
25 shall be payable only until such time as the aggregate amount
26 on deposit under each trust indenture securing Bonds issued
27 and outstanding pursuant to the Build Illinois Bond Act is
28 sufficient, taking into account any future investment income,
29 to fully provide, in accordance with such indenture, for the
30 defeasance of or the payment of the principal of, premium, if
31 any, and interest on the Bonds secured by such indenture and
32 on any Bonds expected to be issued thereafter and all fees
33 and costs payable with respect thereto, all as certified by
34 the Director of the Bureau of the Budget. If on the last
-41- LRB9008924KDdv
1 business day of any month in which Bonds are outstanding
2 pursuant to the Build Illinois Bond Act, the aggregate of the
3 moneys deposited in the Build Illinois Bond Account in the
4 Build Illinois Fund in such month shall be less than the
5 amount required to be transferred in such month from the
6 Build Illinois Bond Account to the Build Illinois Bond
7 Retirement and Interest Fund pursuant to Section 13 of the
8 Build Illinois Bond Act, an amount equal to such deficiency
9 shall be immediately paid from other moneys received by the
10 Department pursuant to the Tax Acts to the Build Illinois
11 Fund; provided, however, that any amounts paid to the Build
12 Illinois Fund in any fiscal year pursuant to this sentence
13 shall be deemed to constitute payments pursuant to clause (b)
14 of the preceding sentence and shall reduce the amount
15 otherwise payable for such fiscal year pursuant to clause (b)
16 of the preceding sentence. The moneys received by the
17 Department pursuant to this Act and required to be deposited
18 into the Build Illinois Fund are subject to the pledge, claim
19 and charge set forth in Section 12 of the Build Illinois Bond
20 Act.
21 Subject to payment of amounts into the Build Illinois
22 Fund as provided in the preceding paragraph or in any
23 amendment thereto hereafter enacted, the following specified
24 monthly installment of the amount requested in the
25 certificate of the Chairman of the Metropolitan Pier and
26 Exposition Authority provided under Section 8.25f of the
27 State Finance Act, but not in excess of the sums designated
28 as "Total Deposit", shall be deposited in the aggregate from
29 collections under Section 9 of the Use Tax Act, Section 9 of
30 the Service Use Tax Act, Section 9 of the Service Occupation
31 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
32 into the McCormick Place Expansion Project Fund in the
33 specified fiscal years.
34 Fiscal Year Total Deposit
-42- LRB9008924KDdv
1 1993 $0
2 1994 53,000,000
3 1995 58,000,000
4 1996 61,000,000
5 1997 64,000,000
6 1998 68,000,000
7 1999 71,000,000
8 2000 75,000,000
9 2001 80,000,000
10 2002 84,000,000
11 2003 89,000,000
12 2004 and 93,000,000
13 each fiscal year
14 thereafter that bonds
15 are outstanding under
16 Section 13.2 of the
17 Metropolitan Pier and
18 Exposition Authority Act.
19 Beginning July 20, 1993 and in each month of each fiscal
20 year thereafter, one-eighth of the amount requested in the
21 certificate of the Chairman of the Metropolitan Pier and
22 Exposition Authority for that fiscal year, less the amount
23 deposited into the McCormick Place Expansion Project Fund by
24 the State Treasurer in the respective month under subsection
25 (g) of Section 13 of the Metropolitan Pier and Exposition
26 Authority Act, plus cumulative deficiencies in the deposits
27 required under this Section for previous months and years,
28 shall be deposited into the McCormick Place Expansion Project
29 Fund, until the full amount requested for the fiscal year,
30 but not in excess of the amount specified above as "Total
31 Deposit", has been deposited.
32 Subject to payment of amounts into the Build Illinois
33 Fund and the McCormick Place Expansion Project Fund pursuant
34 to the preceding paragraphs or in any amendment thereto
-43- LRB9008924KDdv
1 hereafter enacted, each month the Department shall pay into
2 the Local Government Distributive Fund 0.4% of the net
3 revenue realized for the preceding month from the 5% general
4 rate or 0.4% of 80% of the net revenue realized for the
5 preceding month from the 6.25% general rate, as the case may
6 be, on the selling price of tangible personal property which
7 amount shall, subject to appropriation, be distributed as
8 provided in Section 2 of the State Revenue Sharing Act. No
9 payments or distributions pursuant to this paragraph shall be
10 made if the tax imposed by this Act on photo processing
11 products is declared unconstitutional, or if the proceeds
12 from such tax are unavailable for distribution because of
13 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 All remaining moneys received by the Department pursuant
24 to this Act shall be paid into the General Revenue Fund of
25 the State Treasury.
26 For each of the 12 months beginning July 1998 through
27 June 1999, as soon as possible after the last day of each
28 such month, upon certification from the Department of
29 Revenue, the Comptroller shall order transferred and the
30 Treasurer shall transfer moneys received by the Department
31 under this Act on the use of gasoline from the General
32 Revenue Fund to the Road Fund in accordance with Section 3.5
33 of the Retailers' Occupation Tax Act.
34 As soon as possible after the first day of each month,
-44- LRB9008924KDdv
1 upon certification of the Department of Revenue, the
2 Comptroller shall order transferred and the Treasurer shall
3 transfer from the General Revenue Fund to the Motor Fuel Tax
4 Fund an amount equal to 1.7% of 80% of the net revenue
5 realized under this Act for the second preceding month;
6 except that this transfer shall not be made for the months
7 February through June, 1992.
8 Net revenue realized for a month shall be the revenue
9 collected by the State pursuant to this Act, less the amount
10 paid out during that month as refunds to taxpayers for
11 overpayment of liability.
12 (Source: P.A. 88-45; 88-116; 88-669, eff. 11-29-94; 89-379,
13 eff. 1-1-96.)
14 Section 15. The Service Occupation Tax Act is amended by
15 changing Section 9 as follows:
16 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
17 Sec. 9. Each serviceman required or authorized to
18 collect the tax herein imposed shall pay to the Department
19 the amount of such tax at the time when he is required to
20 file his return for the period during which such tax was
21 collectible, less a discount of 2.1% prior to January 1,
22 1990, and 1.75% on and after January 1, 1990, or $5 per
23 calendar year, whichever is greater, which is allowed to
24 reimburse the serviceman for expenses incurred in collecting
25 the tax, keeping records, preparing and filing returns,
26 remitting the tax and supplying data to the Department on
27 request.
28 Where such tangible personal property is sold under a
29 conditional sales contract, or under any other form of sale
30 wherein the payment of the principal sum, or a part thereof,
31 is extended beyond the close of the period for which the
32 return is filed, the serviceman, in collecting the tax may
-45- LRB9008924KDdv
1 collect, for each tax return period, only the tax applicable
2 to the part of the selling price actually received during
3 such tax return period.
4 Except as provided hereinafter in this Section, on or
5 before the twentieth day of each calendar month, such
6 serviceman shall file a return for the preceding calendar
7 month in accordance with reasonable rules and regulations to
8 be promulgated by the Department of Revenue. Such return
9 shall be filed on a form prescribed by the Department and
10 shall contain such information as the Department may
11 reasonably require.
12 The Department may require returns to be filed on a
13 quarterly basis. If so required, a return for each calendar
14 quarter shall be filed on or before the twentieth day of the
15 calendar month following the end of such calendar quarter.
16 The taxpayer shall also file a return with the Department for
17 each of the first two months of each calendar quarter, on or
18 before the twentieth day of the following calendar month,
19 stating:
20 1. The name of the seller;
21 2. The address of the principal place of business
22 from which he engages in business as a serviceman in this
23 State;
24 3. The total amount of taxable receipts received by
25 him during the preceding calendar month, including
26 receipts from charge and time sales, but less all
27 deductions allowed by law;
28 4. The amount of credit provided in Section 2d of
29 this Act;
30 5. The amount of tax due;
31 5-5. The signature of the taxpayer; and
32 6. Such other reasonable information as the
33 Department may require.
34 If a taxpayer fails to sign a return within 30 days after
-46- LRB9008924KDdv
1 the proper notice and demand for signature by the Department,
2 the return shall be considered valid and any amount shown to
3 be due on the return shall be deemed assessed.
4 A serviceman may accept a Manufacturer's Purchase Credit
5 certification from a purchaser in satisfaction of Service Use
6 Tax as provided in Section 3-70 of the Service Use Tax Act if
7 the purchaser provides the appropriate documentation as
8 required by Section 3-70 of the Service Use Tax Act. A
9 Manufacturer's Purchase Credit certification, accepted by a
10 serviceman as provided in Section 3-70 of the Service Use Tax
11 Act, may be used by that serviceman to satisfy Service
12 Occupation Tax liability in the amount claimed in the
13 certification, not to exceed 6.25% of the receipts subject to
14 tax from a qualifying purchase.
15 If the serviceman's average monthly tax liability to the
16 Department does not exceed $200, the Department may authorize
17 his returns to be filed on a quarter annual basis, with the
18 return for January, February and March of a given year being
19 due by April 20 of such year; with the return for April, May
20 and June of a given year being due by July 20 of such year;
21 with the return for July, August and September of a given
22 year being due by October 20 of such year, and with the
23 return for October, November and December of a given year
24 being due by January 20 of the following year.
25 If the serviceman's average monthly tax liability to the
26 Department does not exceed $50, the Department may authorize
27 his returns to be filed on an annual basis, with the return
28 for a given year being due by January 20 of the following
29 year.
30 Such quarter annual and annual returns, as to form and
31 substance, shall be subject to the same requirements as
32 monthly returns.
33 Notwithstanding any other provision in this Act
34 concerning the time within which a serviceman may file his
-47- LRB9008924KDdv
1 return, in the case of any serviceman who ceases to engage in
2 a kind of business which makes him responsible for filing
3 returns under this Act, such serviceman shall file a final
4 return under this Act with the Department not more than 1
5 month after discontinuing such business.
6 Beginning October 1, 1993, a taxpayer who has an average
7 monthly tax liability of $150,000 or more shall make all
8 payments required by rules of the Department by electronic
9 funds transfer. Beginning October 1, 1994, a taxpayer who
10 has an average monthly tax liability of $100,000 or more
11 shall make all payments required by rules of the Department
12 by electronic funds transfer. Beginning October 1, 1995, a
13 taxpayer who has an average monthly tax liability of $50,000
14 or more shall make all payments required by rules of the
15 Department by electronic funds transfer. The term "average
16 monthly tax liability" means the sum of the taxpayer's
17 liabilities under this Act, and under all other State and
18 local occupation and use tax laws administered by the
19 Department, for the immediately preceding calendar year
20 divided by 12.
21 Before August 1 of each year beginning in 1993, the
22 Department shall notify all taxpayers required to make
23 payments by electronic funds transfer. All taxpayers
24 required to make payments by electronic funds transfer shall
25 make those payments for a minimum of one year beginning on
26 October 1.
27 Any taxpayer not required to make payments by electronic
28 funds transfer may make payments by electronic funds transfer
29 with the permission of the Department.
30 All taxpayers required to make payment by electronic
31 funds transfer and any taxpayers authorized to voluntarily
32 make payments by electronic funds transfer shall make those
33 payments in the manner authorized by the Department.
34 The Department shall adopt such rules as are necessary to
-48- LRB9008924KDdv
1 effectuate a program of electronic funds transfer and the
2 requirements of this Section.
3 Where a serviceman collects the tax with respect to the
4 selling price of tangible personal property which he sells
5 and the purchaser thereafter returns such tangible personal
6 property and the serviceman refunds the selling price thereof
7 to the purchaser, such serviceman shall also refund, to the
8 purchaser, the tax so collected from the purchaser. When
9 filing his return for the period in which he refunds such tax
10 to the purchaser, the serviceman may deduct the amount of the
11 tax so refunded by him to the purchaser from any other
12 Service Occupation Tax, Service Use Tax, Retailers'
13 Occupation Tax or Use Tax which such serviceman may be
14 required to pay or remit to the Department, as shown by such
15 return, provided that the amount of the tax to be deducted
16 shall previously have been remitted to the Department by such
17 serviceman. If the serviceman shall not previously have
18 remitted the amount of such tax to the Department, he shall
19 be entitled to no deduction hereunder upon refunding such tax
20 to the purchaser.
21 If experience indicates such action to be practicable,
22 the Department may prescribe and furnish a combination or
23 joint return which will enable servicemen, who are required
24 to file returns hereunder and also under the Retailers'
25 Occupation Tax Act, the Use Tax Act or the Service Use Tax
26 Act, to furnish all the return information required by all
27 said Acts on the one form.
28 Where the serviceman has more than one business
29 registered with the Department under separate registrations
30 hereunder, such serviceman shall file separate returns for
31 each registered business.
32 Beginning January 1, 1990, each month the Department
33 shall pay into the Local Government Tax Fund the revenue
34 realized for the preceding month from the 1% tax on sales of
-49- LRB9008924KDdv
1 food for human consumption which is to be consumed off the
2 premises where it is sold (other than alcoholic beverages,
3 soft drinks and food which has been prepared for immediate
4 consumption) and prescription and nonprescription medicines,
5 drugs, medical appliances and insulin, urine testing
6 materials, syringes and needles used by diabetics.
7 Beginning January 1, 1990, each month the Department
8 shall pay into the County and Mass Transit District Fund 4%
9 of the revenue realized for the preceding month from the
10 6.25% general rate.
11 Beginning January 1, 1990, each month the Department
12 shall pay into the Local Government Tax Fund 16% of the
13 revenue realized for the preceding month from the 6.25%
14 general rate on transfers of tangible personal property.
15 Of the remainder of the moneys received by the Department
16 pursuant to this Act, (a) 1.75% thereof shall be paid into
17 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
18 and on and after July 1, 1989, 3.8% thereof shall be paid
19 into the Build Illinois Fund; provided, however, that if in
20 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
21 as the case may be, of the moneys received by the Department
22 and required to be paid into the Build Illinois Fund pursuant
23 to Section 3 of the Retailers' Occupation Tax Act, Section 9
24 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
25 Section 9 of the Service Occupation Tax Act, such Acts being
26 hereinafter called the "Tax Acts" and such aggregate of 2.2%
27 or 3.8%, as the case may be, of moneys being hereinafter
28 called the "Tax Act Amount", and (2) the amount transferred
29 to the Build Illinois Fund from the State and Local Sales Tax
30 Reform Fund shall be less than the Annual Specified Amount
31 (as defined in Section 3 of the Retailers' Occupation Tax
32 Act), an amount equal to the difference shall be immediately
33 paid into the Build Illinois Fund from other moneys received
34 by the Department pursuant to the Tax Acts; and further
-50- LRB9008924KDdv
1 provided, that if on the last business day of any month the
2 sum of (1) the Tax Act Amount required to be deposited into
3 the Build Illinois Account in the Build Illinois Fund during
4 such month and (2) the amount transferred during such month
5 to the Build Illinois Fund from the State and Local Sales Tax
6 Reform Fund shall have been less than 1/12 of the Annual
7 Specified Amount, an amount equal to the difference shall be
8 immediately paid into the Build Illinois Fund from other
9 moneys received by the Department pursuant to the Tax Acts;
10 and, further provided, that in no event shall the payments
11 required under the preceding proviso result in aggregate
12 payments into the Build Illinois Fund pursuant to this clause
13 (b) for any fiscal year in excess of the greater of (i) the
14 Tax Act Amount or (ii) the Annual Specified Amount for such
15 fiscal year; and, further provided, that the amounts payable
16 into the Build Illinois Fund under this clause (b) shall be
17 payable only until such time as the aggregate amount on
18 deposit under each trust indenture securing Bonds issued and
19 outstanding pursuant to the Build Illinois Bond Act is
20 sufficient, taking into account any future investment income,
21 to fully provide, in accordance with such indenture, for the
22 defeasance of or the payment of the principal of, premium, if
23 any, and interest on the Bonds secured by such indenture and
24 on any Bonds expected to be issued thereafter and all fees
25 and costs payable with respect thereto, all as certified by
26 the Director of the Bureau of the Budget. If on the last
27 business day of any month in which Bonds are outstanding
28 pursuant to the Build Illinois Bond Act, the aggregate of the
29 moneys deposited in the Build Illinois Bond Account in the
30 Build Illinois Fund in such month shall be less than the
31 amount required to be transferred in such month from the
32 Build Illinois Bond Account to the Build Illinois Bond
33 Retirement and Interest Fund pursuant to Section 13 of the
34 Build Illinois Bond Act, an amount equal to such deficiency
-51- LRB9008924KDdv
1 shall be immediately paid from other moneys received by the
2 Department pursuant to the Tax Acts to the Build Illinois
3 Fund; provided, however, that any amounts paid to the Build
4 Illinois Fund in any fiscal year pursuant to this sentence
5 shall be deemed to constitute payments pursuant to clause (b)
6 of the preceding sentence and shall reduce the amount
7 otherwise payable for such fiscal year pursuant to clause (b)
8 of the preceding sentence. The moneys received by the
9 Department pursuant to this Act and required to be deposited
10 into the Build Illinois Fund are subject to the pledge, claim
11 and charge set forth in Section 12 of the Build Illinois Bond
12 Act.
13 Subject to payment of amounts into the Build Illinois
14 Fund as provided in the preceding paragraph or in any
15 amendment thereto hereafter enacted, the following specified
16 monthly installment of the amount requested in the
17 certificate of the Chairman of the Metropolitan Pier and
18 Exposition Authority provided under Section 8.25f of the
19 State Finance Act, but not in excess of the sums designated
20 as "Total Deposit", shall be deposited in the aggregate from
21 collections under Section 9 of the Use Tax Act, Section 9 of
22 the Service Use Tax Act, Section 9 of the Service Occupation
23 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
24 into the McCormick Place Expansion Project Fund in the
25 specified fiscal years.
26 Fiscal Year Total Deposit
27 1993 $0
28 1994 53,000,000
29 1995 58,000,000
30 1996 61,000,000
31 1997 64,000,000
32 1998 68,000,000
33 1999 71,000,000
34 2000 75,000,000
-52- LRB9008924KDdv
1 2001 80,000,000
2 2002 84,000,000
3 2003 89,000,000
4 2004 and 93,000,000
5 each fiscal year
6 thereafter that bonds
7 are outstanding under
8 Section 13.2 of the
9 Metropolitan Pier and
10 Exposition Authority
11 Act.
12 Beginning July 20, 1993 and in each month of each fiscal
13 year thereafter, one-eighth of the amount requested in the
14 certificate of the Chairman of the Metropolitan Pier and
15 Exposition Authority for that fiscal year, less the amount
16 deposited into the McCormick Place Expansion Project Fund by
17 the State Treasurer in the respective month under subsection
18 (g) of Section 13 of the Metropolitan Pier and Exposition
19 Authority Act, plus cumulative deficiencies in the deposits
20 required under this Section for previous months and years,
21 shall be deposited into the McCormick Place Expansion Project
22 Fund, until the full amount requested for the fiscal year,
23 but not in excess of the amount specified above as "Total
24 Deposit", has been deposited.
25 Subject to payment of amounts into the Build Illinois
26 Fund and the McCormick Place Expansion Project Fund pursuant
27 to the preceding paragraphs or in any amendment thereto
28 hereafter enacted, each month the Department shall pay into
29 the Local Government Distributive Fund 0.4% of the net
30 revenue realized for the preceding month from the 5% general
31 rate or 0.4% of 80% of the net revenue realized for the
32 preceding month from the 6.25% general rate, as the case may
33 be, on the selling price of tangible personal property which
34 amount shall, subject to appropriation, be distributed as
-53- LRB9008924KDdv
1 provided in Section 2 of the State Revenue Sharing Act. No
2 payments or distributions pursuant to this paragraph shall be
3 made if the tax imposed by this Act on photoprocessing
4 products is declared unconstitutional, or if the proceeds
5 from such tax are unavailable for distribution because of
6 litigation.
7 Subject to payment of amounts into the Build Illinois
8 Fund, the McCormick Place Expansion Project Fund, and the
9 Local Government Distributive Fund pursuant to the preceding
10 paragraphs or in any amendments thereto hereafter enacted,
11 beginning July 1, 1993, the Department shall each month pay
12 into the Illinois Tax Increment Fund 0.27% of 80% of the net
13 revenue realized for the preceding month from the 6.25%
14 general rate on the selling price of tangible personal
15 property.
16 Remaining moneys received by the Department pursuant to
17 this Act shall be paid into the General Revenue Fund of the
18 State Treasury.
19 For each of the 12 months beginning July 1998 through
20 June 1999, as soon as possible after the last day of each
21 such month, upon certification from the Department of
22 Revenue, the Comptroller shall order transferred and the
23 Treasurer shall transfer moneys received by the Department
24 under this Act on the sale of gasoline from the General
25 Revenue Fund to the Road Fund in accordance with Section 3.5
26 of the Retailers' Occupation Tax Act.
27 The Department may, upon separate written notice to a
28 taxpayer, require the taxpayer to prepare and file with the
29 Department on a form prescribed by the Department within not
30 less than 60 days after receipt of the notice an annual
31 information return for the tax year specified in the notice.
32 Such annual return to the Department shall include a
33 statement of gross receipts as shown by the taxpayer's last
34 Federal income tax return. If the total receipts of the
-54- LRB9008924KDdv
1 business as reported in the Federal income tax return do not
2 agree with the gross receipts reported to the Department of
3 Revenue for the same period, the taxpayer shall attach to his
4 annual return a schedule showing a reconciliation of the 2
5 amounts and the reasons for the difference. The taxpayer's
6 annual return to the Department shall also disclose the cost
7 of goods sold by the taxpayer during the year covered by such
8 return, opening and closing inventories of such goods for
9 such year, cost of goods used from stock or taken from stock
10 and given away by the taxpayer during such year, pay roll
11 information of the taxpayer's business during such year and
12 any additional reasonable information which the Department
13 deems would be helpful in determining the accuracy of the
14 monthly, quarterly or annual returns filed by such taxpayer
15 as hereinbefore provided for in this Section.
16 If the annual information return required by this Section
17 is not filed when and as required, the taxpayer shall be
18 liable as follows:
19 (i) Until January 1, 1994, the taxpayer shall be
20 liable for a penalty equal to 1/6 of 1% of the tax due
21 from such taxpayer under this Act during the period to be
22 covered by the annual return for each month or fraction
23 of a month until such return is filed as required, the
24 penalty to be assessed and collected in the same manner
25 as any other penalty provided for in this Act.
26 (ii) On and after January 1, 1994, the taxpayer
27 shall be liable for a penalty as described in Section 3-4
28 of the Uniform Penalty and Interest Act.
29 The chief executive officer, proprietor, owner or highest
30 ranking manager shall sign the annual return to certify the
31 accuracy of the information contained therein. Any person
32 who willfully signs the annual return containing false or
33 inaccurate information shall be guilty of perjury and
34 punished accordingly. The annual return form prescribed by
-55- LRB9008924KDdv
1 the Department shall include a warning that the person
2 signing the return may be liable for perjury.
3 The foregoing portion of this Section concerning the
4 filing of an annual information return shall not apply to a
5 serviceman who is not required to file an income tax return
6 with the United States Government.
7 As soon as possible after the first day of each month,
8 upon certification of the Department of Revenue, the
9 Comptroller shall order transferred and the Treasurer shall
10 transfer from the General Revenue Fund to the Motor Fuel Tax
11 Fund an amount equal to 1.7% of 80% of the net revenue
12 realized under this Act for the second preceding month;
13 except that this transfer shall not be made for the months
14 February through June, 1992.
15 Net revenue realized for a month shall be the revenue
16 collected by the State pursuant to this Act, less the amount
17 paid out during that month as refunds to taxpayers for
18 overpayment of liability.
19 For greater simplicity of administration, it shall be
20 permissible for manufacturers, importers and wholesalers
21 whose products are sold by numerous servicemen in Illinois,
22 and who wish to do so, to assume the responsibility for
23 accounting and paying to the Department all tax accruing
24 under this Act with respect to such sales, if the servicemen
25 who are affected do not make written objection to the
26 Department to this arrangement.
27 (Source: P.A. 88-45; 88-116; 88-547, eff. 6-30-94; 88-669,
28 eff. 11-29-94; 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
29 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
30 Section 20. The Retailers' Occupation Tax Act is amended
31 by changing Section 3 and adding Section 3.5 as follows:
32 (35 ILCS 120/3) (from Ch. 120, par. 442)
-56- LRB9008924KDdv
1 (Text of Section before amendment by P.A. 90-491)
2 Sec. 3. Except as provided in this Section, on or before
3 the twentieth day of each calendar month, every person
4 engaged in the business of selling tangible personal property
5 at retail in this State during the preceding calendar month
6 shall file a return with the Department, stating:
7 1. The name of the seller;
8 2. His residence address and the address of his
9 principal place of business and the address of the
10 principal place of business (if that is a different
11 address) from which he engages in the business of selling
12 tangible personal property at retail in this State;
13 3. Total amount of receipts received by him during
14 the preceding calendar month or quarter, as the case may
15 be, from sales of tangible personal property, and from
16 services furnished, by him during such preceding calendar
17 month or quarter;
18 4. Total amount received by him during the
19 preceding calendar month or quarter on charge and time
20 sales of tangible personal property, and from services
21 furnished, by him prior to the month or quarter for which
22 the return is filed;
23 5. Deductions allowed by law;
24 6. Gross receipts which were received by him during
25 the preceding calendar month or quarter and upon the
26 basis of which the tax is imposed;
27 7. The amount of credit provided in Section 2d of
28 this Act;
29 8. The amount of tax due;
30 9. The signature of the taxpayer; and
31 10. Such other reasonable information as the
32 Department may require.
33 If a taxpayer fails to sign a return within 30 days after
34 the proper notice and demand for signature by the Department,
-57- LRB9008924KDdv
1 the return shall be considered valid and any amount shown to
2 be due on the return shall be deemed assessed.
3 Each return shall be accompanied by the statement of
4 prepaid tax issued pursuant to Section 2e for which credit is
5 claimed.
6 A retailer may accept a Manufacturer's Purchase Credit
7 certification from a purchaser in satisfaction of Use Tax as
8 provided in Section 3-85 of the Use Tax Act if the purchaser
9 provides the appropriate documentation as required by Section
10 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
11 certification, accepted by a retailer as provided in Section
12 3-85 of the Use Tax Act, may be used by that retailer to
13 satisfy Retailers' Occupation Tax liability in the amount
14 claimed in the certification, not to exceed 6.25% of the
15 receipts subject to tax from a qualifying purchase.
16 The Department may require returns to be filed on a
17 quarterly basis. If so required, a return for each calendar
18 quarter shall be filed on or before the twentieth day of the
19 calendar month following the end of such calendar quarter.
20 The taxpayer shall also file a return with the Department for
21 each of the first two months of each calendar quarter, on or
22 before the twentieth day of the following calendar month,
23 stating:
24 1. The name of the seller;
25 2. The address of the principal place of business
26 from which he engages in the business of selling tangible
27 personal property at retail in this State;
28 3. The total amount of taxable receipts received by
29 him during the preceding calendar month from sales of
30 tangible personal property by him during such preceding
31 calendar month, including receipts from charge and time
32 sales, but less all deductions allowed by law;
33 4. The amount of credit provided in Section 2d of
34 this Act;
-58- LRB9008924KDdv
1 5. The amount of tax due; and
2 6. Such other reasonable information as the
3 Department may require.
4 If a total amount of less than $1 is payable, refundable
5 or creditable, such amount shall be disregarded if it is less
6 than 50 cents and shall be increased to $1 if it is 50 cents
7 or more.
8 Beginning October 1, 1993, a taxpayer who has an average
9 monthly tax liability of $150,000 or more shall make all
10 payments required by rules of the Department by electronic
11 funds transfer. Beginning October 1, 1994, a taxpayer who
12 has an average monthly tax liability of $100,000 or more
13 shall make all payments required by rules of the Department
14 by electronic funds transfer. Beginning October 1, 1995, a
15 taxpayer who has an average monthly tax liability of $50,000
16 or more shall make all payments required by rules of the
17 Department by electronic funds transfer. The term "average
18 monthly tax liability" shall be the sum of the taxpayer's
19 liabilities under this Act, and under all other State and
20 local occupation and use tax laws administered by the
21 Department, for the immediately preceding calendar year
22 divided by 12.
23 Before August 1 of each year beginning in 1993, the
24 Department shall notify all taxpayers required to make
25 payments by electronic funds transfer. All taxpayers
26 required to make payments by electronic funds transfer shall
27 make those payments for a minimum of one year beginning on
28 October 1.
29 Any taxpayer not required to make payments by electronic
30 funds transfer may make payments by electronic funds transfer
31 with the permission of the Department.
32 All taxpayers required to make payment by electronic
33 funds transfer and any taxpayers authorized to voluntarily
34 make payments by electronic funds transfer shall make those
-59- LRB9008924KDdv
1 payments in the manner authorized by the Department.
2 The Department shall adopt such rules as are necessary to
3 effectuate a program of electronic funds transfer and the
4 requirements of this Section.
5 Any amount which is required to be shown or reported on
6 any return or other document under this Act shall, if such
7 amount is not a whole-dollar amount, be increased to the
8 nearest whole-dollar amount in any case where the fractional
9 part of a dollar is 50 cents or more, and decreased to the
10 nearest whole-dollar amount where the fractional part of a
11 dollar is less than 50 cents.
12 If the retailer is otherwise required to file a monthly
13 return and if the retailer's average monthly tax liability to
14 the Department does not exceed $200, the Department may
15 authorize his returns to be filed on a quarter annual basis,
16 with the return for January, February and March of a given
17 year being due by April 20 of such year; with the return for
18 April, May and June of a given year being due by July 20 of
19 such year; with the return for July, August and September of
20 a given year being due by October 20 of such year, and with
21 the return for October, November and December of a given year
22 being due by January 20 of the following year.
23 If the retailer is otherwise required to file a monthly
24 or quarterly return and if the retailer's average monthly tax
25 liability with the Department does not exceed $50, the
26 Department may authorize his returns to be filed on an annual
27 basis, with the return for a given year being due by January
28 20 of the following year.
29 Such quarter annual and annual returns, as to form and
30 substance, shall be subject to the same requirements as
31 monthly returns.
32 Notwithstanding any other provision in this Act
33 concerning the time within which a retailer may file his
34 return, in the case of any retailer who ceases to engage in a
-60- LRB9008924KDdv
1 kind of business which makes him responsible for filing
2 returns under this Act, such retailer shall file a final
3 return under this Act with the Department not more than one
4 month after discontinuing such business.
5 Where the same person has more than one business
6 registered with the Department under separate registrations
7 under this Act, such person may not file each return that is
8 due as a single return covering all such registered
9 businesses, but shall file separate returns for each such
10 registered business.
11 In addition, with respect to motor vehicles, watercraft,
12 aircraft, and trailers that are required to be registered
13 with an agency of this State, every retailer selling this
14 kind of tangible personal property shall file, with the
15 Department, upon a form to be prescribed and supplied by the
16 Department, a separate return for each such item of tangible
17 personal property which the retailer sells, except that
18 where, in the same transaction, a retailer of aircraft,
19 watercraft, motor vehicles or trailers transfers more than
20 one aircraft, watercraft, motor vehicle or trailer to another
21 aircraft, watercraft, motor vehicle retailer or trailer
22 retailer for the purpose of resale, that seller for resale
23 may report the transfer of all aircraft, watercraft, motor
24 vehicles or trailers involved in that transaction to the
25 Department on the same uniform invoice-transaction reporting
26 return form. For purposes of this Section, "watercraft"
27 means a Class 2, Class 3, or Class 4 watercraft as defined in
28 Section 3-2 of the Boat Registration and Safety Act, a
29 personal watercraft, or any boat equipped with an inboard
30 motor.
31 Any retailer who sells only motor vehicles, watercraft,
32 aircraft, or trailers that are required to be registered with
33 an agency of this State, so that all retailers' occupation
34 tax liability is required to be reported, and is reported, on
-61- LRB9008924KDdv
1 such transaction reporting returns and who is not otherwise
2 required to file monthly or quarterly returns, need not file
3 monthly or quarterly returns. However, those retailers shall
4 be required to file returns on an annual basis.
5 The transaction reporting return, in the case of motor
6 vehicles or trailers that are required to be registered with
7 an agency of this State, shall be the same document as the
8 Uniform Invoice referred to in Section 5-402 of The Illinois
9 Vehicle Code and must show the name and address of the
10 seller; the name and address of the purchaser; the amount of
11 the selling price including the amount allowed by the
12 retailer for traded-in property, if any; the amount allowed
13 by the retailer for the traded-in tangible personal property,
14 if any, to the extent to which Section 1 of this Act allows
15 an exemption for the value of traded-in property; the balance
16 payable after deducting such trade-in allowance from the
17 total selling price; the amount of tax due from the retailer
18 with respect to such transaction; the amount of tax collected
19 from the purchaser by the retailer on such transaction (or
20 satisfactory evidence that such tax is not due in that
21 particular instance, if that is claimed to be the fact); the
22 place and date of the sale; a sufficient identification of
23 the property sold; such other information as is required in
24 Section 5-402 of The Illinois Vehicle Code, and such other
25 information as the Department may reasonably require.
26 The transaction reporting return in the case of
27 watercraft or aircraft must show the name and address of the
28 seller; the name and address of the purchaser; the amount of
29 the selling price including the amount allowed by the
30 retailer for traded-in property, if any; the amount allowed
31 by the retailer for the traded-in tangible personal property,
32 if any, to the extent to which Section 1 of this Act allows
33 an exemption for the value of traded-in property; the balance
34 payable after deducting such trade-in allowance from the
-62- LRB9008924KDdv
1 total selling price; the amount of tax due from the retailer
2 with respect to such transaction; the amount of tax collected
3 from the purchaser by the retailer on such transaction (or
4 satisfactory evidence that such tax is not due in that
5 particular instance, if that is claimed to be the fact); the
6 place and date of the sale, a sufficient identification of
7 the property sold, and such other information as the
8 Department may reasonably require.
9 Such transaction reporting return shall be filed not
10 later than 20 days after the day of delivery of the item that
11 is being sold, but may be filed by the retailer at any time
12 sooner than that if he chooses to do so. The transaction
13 reporting return and tax remittance or proof of exemption
14 from the Illinois use tax may be transmitted to the
15 Department by way of the State agency with which, or State
16 officer with whom the tangible personal property must be
17 titled or registered (if titling or registration is required)
18 if the Department and such agency or State officer determine
19 that this procedure will expedite the processing of
20 applications for title or registration.
21 With each such transaction reporting return, the retailer
22 shall remit the proper amount of tax due (or shall submit
23 satisfactory evidence that the sale is not taxable if that is
24 the case), to the Department or its agents, whereupon the
25 Department shall issue, in the purchaser's name, a use tax
26 receipt (or a certificate of exemption if the Department is
27 satisfied that the particular sale is tax exempt) which such
28 purchaser may submit to the agency with which, or State
29 officer with whom, he must title or register the tangible
30 personal property that is involved (if titling or
31 registration is required) in support of such purchaser's
32 application for an Illinois certificate or other evidence of
33 title or registration to such tangible personal property.
34 No retailer's failure or refusal to remit tax under this
-63- LRB9008924KDdv
1 Act precludes a user, who has paid the proper tax to the
2 retailer, from obtaining his certificate of title or other
3 evidence of title or registration (if titling or registration
4 is required) upon satisfying the Department that such user
5 has paid the proper tax (if tax is due) to the retailer. The
6 Department shall adopt appropriate rules to carry out the
7 mandate of this paragraph.
8 If the user who would otherwise pay tax to the retailer
9 wants the transaction reporting return filed and the payment
10 of the tax or proof of exemption made to the Department
11 before the retailer is willing to take these actions and such
12 user has not paid the tax to the retailer, such user may
13 certify to the fact of such delay by the retailer and may
14 (upon the Department being satisfied of the truth of such
15 certification) transmit the information required by the
16 transaction reporting return and the remittance for tax or
17 proof of exemption directly to the Department and obtain his
18 tax receipt or exemption determination, in which event the
19 transaction reporting return and tax remittance (if a tax
20 payment was required) shall be credited by the Department to
21 the proper retailer's account with the Department, but
22 without the 2.1% or 1.75% discount provided for in this
23 Section being allowed. When the user pays the tax directly
24 to the Department, he shall pay the tax in the same amount
25 and in the same form in which it would be remitted if the tax
26 had been remitted to the Department by the retailer.
27 Refunds made by the seller during the preceding return
28 period to purchasers, on account of tangible personal
29 property returned to the seller, shall be allowed as a
30 deduction under subdivision 5 of his monthly or quarterly
31 return, as the case may be, in case the seller had
32 theretofore included the receipts from the sale of such
33 tangible personal property in a return filed by him and had
34 paid the tax imposed by this Act with respect to such
-64- LRB9008924KDdv
1 receipts.
2 Where the seller is a corporation, the return filed on
3 behalf of such corporation shall be signed by the president,
4 vice-president, secretary or treasurer or by the properly
5 accredited agent of such corporation.
6 Where the seller is a limited liability company, the
7 return filed on behalf of the limited liability company shall
8 be signed by a manager, member, or properly accredited agent
9 of the limited liability company.
10 Except as provided in this Section, the retailer filing
11 the return under this Section shall, at the time of filing
12 such return, pay to the Department the amount of tax imposed
13 by this Act less a discount of 2.1% prior to January 1, 1990
14 and 1.75% on and after January 1, 1990, or $5 per calendar
15 year, whichever is greater, which is allowed to reimburse the
16 retailer for the expenses incurred in keeping records,
17 preparing and filing returns, remitting the tax and supplying
18 data to the Department on request. Any prepayment made
19 pursuant to Section 2d of this Act shall be included in the
20 amount on which such 2.1% or 1.75% discount is computed. In
21 the case of retailers who report and pay the tax on a
22 transaction by transaction basis, as provided in this
23 Section, such discount shall be taken with each such tax
24 remittance instead of when such retailer files his periodic
25 return.
26 If the taxpayer's average monthly tax liability to the
27 Department under this Act, the Use Tax Act, the Service
28 Occupation Tax Act, and the Service Use Tax Act, excluding
29 any liability for prepaid sales tax to be remitted in
30 accordance with Section 2d of this Act, was $10,000 or more
31 during the preceding 4 complete calendar quarters, he shall
32 file a return with the Department each month by the 20th day
33 of the month next following the month during which such tax
34 liability is incurred and shall make payments to the
-65- LRB9008924KDdv
1 Department on or before the 7th, 15th, 22nd and last day of
2 the month during which such liability is incurred. If the
3 month during which such tax liability is incurred began prior
4 to January 1, 1985, each payment shall be in an amount equal
5 to 1/4 of the taxpayer's actual liability for the month or an
6 amount set by the Department not to exceed 1/4 of the average
7 monthly liability of the taxpayer to the Department for the
8 preceding 4 complete calendar quarters (excluding the month
9 of highest liability and the month of lowest liability in
10 such 4 quarter period). If the month during which such tax
11 liability is incurred begins on or after January 1, 1985 and
12 prior to January 1, 1987, each payment shall be in an amount
13 equal to 22.5% of the taxpayer's actual liability for the
14 month or 27.5% of the taxpayer's liability for the same
15 calendar month of the preceding year. If the month during
16 which such tax liability is incurred begins on or after
17 January 1, 1987 and prior to January 1, 1988, each payment
18 shall be in an amount equal to 22.5% of the taxpayer's actual
19 liability for the month or 26.25% of the taxpayer's liability
20 for the same calendar month of the preceding year. If the
21 month during which such tax liability is incurred begins on
22 or after January 1, 1988, and prior to January 1, 1989, or
23 begins on or after January 1, 1996, each payment shall be in
24 an amount equal to 22.5% of the taxpayer's actual liability
25 for the month or 25% of the taxpayer's liability for the same
26 calendar month of the preceding year. If the month during
27 which such tax liability is incurred begins on or after
28 January 1, 1989, and prior to January 1, 1996, each payment
29 shall be in an amount equal to 22.5% of the taxpayer's actual
30 liability for the month or 25% of the taxpayer's liability
31 for the same calendar month of the preceding year or 100% of
32 the taxpayer's actual liability for the quarter monthly
33 reporting period. The amount of such quarter monthly
34 payments shall be credited against the final tax liability of
-66- LRB9008924KDdv
1 the taxpayer's return for that month. Once applicable, the
2 requirement of the making of quarter monthly payments to the
3 Department by taxpayers having an average monthly tax
4 liability of $10,000 or more as determined in the manner
5 provided above shall continue until such taxpayer's average
6 monthly liability to the Department during the preceding 4
7 complete calendar quarters (excluding the month of highest
8 liability and the month of lowest liability) is less than
9 $9,000, or until such taxpayer's average monthly liability to
10 the Department as computed for each calendar quarter of the 4
11 preceding complete calendar quarter period is less than
12 $10,000. However, if a taxpayer can show the Department that
13 a substantial change in the taxpayer's business has occurred
14 which causes the taxpayer to anticipate that his average
15 monthly tax liability for the reasonably foreseeable future
16 will fall below $10,000, then such taxpayer may petition the
17 Department for a change in such taxpayer's reporting status.
18 The Department shall change such taxpayer's reporting status
19 unless it finds that such change is seasonal in nature and
20 not likely to be long term. If any such quarter monthly
21 payment is not paid at the time or in the amount required by
22 this Section, then the taxpayer's 2.1% or 1.75% vendors'
23 discount shall be reduced by 2.1% or 1.75% of the difference
24 between the minimum amount due as a payment and the amount of
25 such quarter monthly payment actually and timely paid, and
26 the taxpayer shall be liable for penalties and interest on
27 such difference, except insofar as the taxpayer has
28 previously made payments for that month to the Department in
29 excess of the minimum payments previously due as provided in
30 this Section. The Department shall make reasonable rules and
31 regulations to govern the quarter monthly payment amount and
32 quarter monthly payment dates for taxpayers who file on other
33 than a calendar monthly basis.
34 Without regard to whether a taxpayer is required to make
-67- LRB9008924KDdv
1 quarter monthly payments as specified above, any taxpayer who
2 is required by Section 2d of this Act to collect and remit
3 prepaid taxes and has collected prepaid taxes which average
4 in excess of $25,000 per month during the preceding 2
5 complete calendar quarters, shall file a return with the
6 Department as required by Section 2f and shall make payments
7 to the Department on or before the 7th, 15th, 22nd and last
8 day of the month during which such liability is incurred. If
9 the month during which such tax liability is incurred began
10 prior to the effective date of this amendatory Act of 1985,
11 each payment shall be in an amount not less than 22.5% of the
12 taxpayer's actual liability under Section 2d. If the month
13 during which such tax liability is incurred begins on or
14 after January 1, 1986, each payment shall be in an amount
15 equal to 22.5% of the taxpayer's actual liability for the
16 month or 27.5% of the taxpayer's liability for the same
17 calendar month of the preceding calendar year. If the month
18 during which such tax liability is incurred begins on or
19 after 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 26.25% of the taxpayer's liability for the same
22 calendar month of the preceding year. The amount of such
23 quarter monthly payments shall be credited against the final
24 tax liability of the taxpayer's return for that month filed
25 under this Section or Section 2f, as the case may be. Once
26 applicable, the requirement of the making of quarter monthly
27 payments to the Department pursuant to this paragraph shall
28 continue until such taxpayer's average monthly prepaid tax
29 collections during the preceding 2 complete calendar quarters
30 is $25,000 or less. If any such quarter monthly payment is
31 not paid at the time or in the amount required, the taxpayer
32 shall be liable for penalties and interest on such
33 difference, except insofar as the taxpayer has previously
34 made payments for that month in excess of the minimum
-68- LRB9008924KDdv
1 payments previously due.
2 If any payment provided for in this Section exceeds the
3 taxpayer's liabilities under this Act, the Use Tax Act, the
4 Service Occupation Tax Act and the Service Use Tax Act, as
5 shown on an original monthly return, the Department shall, if
6 requested by the taxpayer, issue to the taxpayer a credit
7 memorandum no later than 30 days after the date of payment.
8 The credit evidenced by such credit memorandum may be
9 assigned by the taxpayer to a similar taxpayer under this
10 Act, the Use Tax Act, the Service Occupation Tax Act or the
11 Service Use Tax Act, in accordance with reasonable rules and
12 regulations to be prescribed by the Department. If no such
13 request is made, the taxpayer may credit such excess payment
14 against tax liability subsequently to be remitted to the
15 Department under this Act, the Use Tax Act, the Service
16 Occupation Tax Act or the Service Use Tax Act, in accordance
17 with reasonable rules and regulations prescribed by the
18 Department. If the Department subsequently determined that
19 all or any part of the credit taken was not actually due to
20 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
21 shall be reduced by 2.1% or 1.75% of the difference between
22 the credit taken and that actually due, and that taxpayer
23 shall be liable for penalties and interest on such
24 difference.
25 If a retailer of motor fuel is entitled to a credit under
26 Section 2d of this Act which exceeds the taxpayer's liability
27 to the Department under this Act for the month which the
28 taxpayer is filing a return, the Department shall issue the
29 taxpayer a credit memorandum for the excess.
30 Beginning January 1, 1990, each month the Department
31 shall pay into the Local Government Tax Fund, a special fund
32 in the State treasury which is hereby created, the net
33 revenue realized for the preceding month from the 1% tax on
34 sales of food for human consumption which is to be consumed
-69- LRB9008924KDdv
1 off the premises where it is sold (other than alcoholic
2 beverages, soft drinks and food which has been prepared for
3 immediate consumption) and prescription and nonprescription
4 medicines, drugs, medical appliances and insulin, urine
5 testing materials, syringes and needles used by diabetics.
6 Beginning January 1, 1990, each month the Department
7 shall pay into the County and Mass Transit District Fund, a
8 special fund in the State treasury which is hereby created,
9 4% of the net revenue realized for the preceding month from
10 the 6.25% general rate.
11 Beginning January 1, 1990, each month the Department
12 shall pay into the Local Government Tax Fund 16% of the net
13 revenue realized for the preceding month from the 6.25%
14 general rate on the selling price of tangible personal
15 property.
16 Of the remainder of the moneys received by the Department
17 pursuant to this Act, (a) 1.75% thereof shall be paid into
18 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
19 and on and after July 1, 1989, 3.8% thereof shall be paid
20 into the Build Illinois Fund; provided, however, that if in
21 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
22 as the case may be, of the moneys received by the Department
23 and required to be paid into the Build Illinois Fund pursuant
24 to this Act, Section 9 of the Use Tax Act, Section 9 of the
25 Service Use Tax Act, and Section 9 of the Service Occupation
26 Tax Act, such Acts being hereinafter called the "Tax Acts"
27 and such aggregate of 2.2% or 3.8%, as the case may be, of
28 moneys being hereinafter called the "Tax Act Amount", and (2)
29 the amount transferred to the Build Illinois Fund from the
30 State and Local Sales Tax Reform Fund shall be less than the
31 Annual Specified Amount (as hereinafter defined), an amount
32 equal to the difference shall be immediately paid into the
33 Build Illinois Fund from other moneys received by the
34 Department pursuant to the Tax Acts; the "Annual Specified
-70- LRB9008924KDdv
1 Amount" means the amounts specified below for fiscal years
2 1986 through 1993:
3 Fiscal Year Annual Specified Amount
4 1986 $54,800,000
5 1987 $76,650,000
6 1988 $80,480,000
7 1989 $88,510,000
8 1990 $115,330,000
9 1991 $145,470,000
10 1992 $182,730,000
11 1993 $206,520,000;
12 and means the Certified Annual Debt Service Requirement (as
13 defined in Section 13 of the Build Illinois Bond Act) or the
14 Tax Act Amount, whichever is greater, for fiscal year 1994
15 and each fiscal year thereafter; and further provided, that
16 if on the last business day of any month the sum of (1) the
17 Tax Act Amount required to be deposited into the Build
18 Illinois Bond Account in the Build Illinois Fund during such
19 month and (2) the amount transferred to the Build Illinois
20 Fund from the State and Local Sales Tax Reform Fund shall
21 have been less than 1/12 of the Annual Specified Amount, an
22 amount equal to the difference shall be immediately paid into
23 the Build Illinois Fund from other moneys received by the
24 Department pursuant to the Tax Acts; and, further provided,
25 that in no event shall the payments required under the
26 preceding proviso result in aggregate payments into the Build
27 Illinois Fund pursuant to this clause (b) for any fiscal year
28 in excess of the greater of (i) the Tax Act Amount or (ii)
29 the Annual Specified Amount for such fiscal year. The
30 amounts payable into the Build Illinois Fund under clause (b)
31 of the first sentence in this paragraph shall be payable only
32 until such time as the aggregate amount on deposit under each
33 trust indenture securing Bonds issued and outstanding
34 pursuant to the Build Illinois Bond Act is sufficient, taking
-71- LRB9008924KDdv
1 into account any future investment income, to fully provide,
2 in accordance with such indenture, for the defeasance of or
3 the payment of the principal of, premium, if any, and
4 interest on the Bonds secured by such indenture and on any
5 Bonds expected to be issued thereafter and all fees and costs
6 payable with respect thereto, all as certified by the
7 Director of the Bureau of the Budget. If on the last
8 business day of any month in which Bonds are outstanding
9 pursuant to the Build Illinois Bond Act, the aggregate of
10 moneys deposited in the Build Illinois Bond Account in the
11 Build Illinois Fund in such month shall be less than the
12 amount required to be transferred in such month from the
13 Build Illinois Bond Account to the Build Illinois Bond
14 Retirement and Interest Fund pursuant to Section 13 of the
15 Build Illinois Bond Act, an amount equal to such deficiency
16 shall be immediately paid from other moneys received by the
17 Department pursuant to the Tax Acts to the Build Illinois
18 Fund; provided, however, that any amounts paid to the Build
19 Illinois Fund in any fiscal year pursuant to this sentence
20 shall be deemed to constitute payments pursuant to clause (b)
21 of the first sentence of this paragraph and shall reduce the
22 amount otherwise payable for such fiscal year pursuant to
23 that clause (b). The moneys received by the Department
24 pursuant to this Act and required to be deposited into the
25 Build Illinois Fund are subject to the pledge, claim and
26 charge set forth in Section 12 of the Build Illinois Bond
27 Act.
28 Subject to payment of amounts into the Build Illinois
29 Fund as provided in the preceding paragraph or in any
30 amendment thereto hereafter enacted, the following specified
31 monthly installment of the amount requested in the
32 certificate of the Chairman of the Metropolitan Pier and
33 Exposition Authority provided under Section 8.25f of the
34 State Finance Act, but not in excess of sums designated as
-72- LRB9008924KDdv
1 "Total Deposit", shall be deposited in the aggregate from
2 collections under Section 9 of the Use Tax Act, Section 9 of
3 the Service Use Tax Act, Section 9 of the Service Occupation
4 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
5 into the McCormick Place Expansion Project Fund in the
6 specified fiscal years.
7 Fiscal Year Total Deposit
8 1993 $0
9 1994 53,000,000
10 1995 58,000,000
11 1996 61,000,000
12 1997 64,000,000
13 1998 68,000,000
14 1999 71,000,000
15 2000 75,000,000
16 2001 80,000,000
17 2002 84,000,000
18 2003 89,000,000
19 2004 and 93,000,000
20 each fiscal year
21 thereafter that bonds
22 are outstanding under
23 Section 13.2 of the
24 Metropolitan Pier and
25 Exposition Authority
26 Act.
27 Beginning July 20, 1993 and in each month of each fiscal
28 year thereafter, one-eighth of the amount requested in the
29 certificate of the Chairman of the Metropolitan Pier and
30 Exposition Authority for that fiscal year, less the amount
31 deposited into the McCormick Place Expansion Project Fund by
32 the State Treasurer in the respective month under subsection
33 (g) of Section 13 of the Metropolitan Pier and Exposition
34 Authority Act, plus cumulative deficiencies in the deposits
-73- LRB9008924KDdv
1 required under this Section for previous months and years,
2 shall be deposited into the McCormick Place Expansion Project
3 Fund, until the full amount requested for the fiscal year,
4 but not in excess of the amount specified above as "Total
5 Deposit", has been deposited.
6 Subject to payment of amounts into the Build Illinois
7 Fund and the McCormick Place Expansion Project Fund pursuant
8 to the preceding paragraphs or in any amendment thereto
9 hereafter enacted, each month the Department shall pay into
10 the Local Government Distributive Fund 0.4% of the net
11 revenue realized for the preceding month from the 5% general
12 rate or 0.4% of 80% of the net revenue realized for the
13 preceding month from the 6.25% general rate, as the case may
14 be, on the selling price of tangible personal property which
15 amount shall, subject to appropriation, be distributed as
16 provided in Section 2 of the State Revenue Sharing Act. No
17 payments or distributions pursuant to this paragraph shall be
18 made if the tax imposed by this Act on photoprocessing
19 products is declared unconstitutional, or if the proceeds
20 from such tax are unavailable for distribution because of
21 litigation.
22 Subject to payment of amounts into the Build Illinois
23 Fund, the McCormick Place Expansion Project to the preceding
24 paragraphs or in any amendments thereto hereafter enacted,
25 beginning July 1, 1993, the Department shall each month pay
26 into the Illinois Tax Increment Fund 0.27% of 80% of the net
27 revenue realized for the preceding month from the 6.25%
28 general rate on the selling price of tangible personal
29 property.
30 Of the remainder of the moneys received by the Department
31 pursuant to this Act, 75% thereof shall be paid into the
32 State Treasury and 25% shall be reserved in a special account
33 and used only for the transfer to the Common School Fund as
34 part of the monthly transfer from the General Revenue Fund in
-74- LRB9008924KDdv
1 accordance with Section 8a of the State Finance Act.
2 For each of the 12 months beginning July 1998 through
3 June 1999, as soon as possible after the last day of each
4 such month, upon certification from the Department of
5 Revenue, the Comptroller shall order transferred and the
6 Treasurer shall transfer moneys received by the Department
7 under this Act on the sale of gasoline from the General
8 Revenue Fund to the Road Fund in accordance with Section 3.5
9 of this Act.
10 The Department may, upon separate written notice to a
11 taxpayer, require the taxpayer to prepare and file with the
12 Department on a form prescribed by the Department within not
13 less than 60 days after receipt of the notice an annual
14 information return for the tax year specified in the notice.
15 Such annual return to the Department shall include a
16 statement of gross receipts as shown by the retailer's last
17 Federal income tax return. If the total receipts of the
18 business as reported in the Federal income tax return do not
19 agree with the gross receipts reported to the Department of
20 Revenue for the same period, the retailer shall attach to his
21 annual return a schedule showing a reconciliation of the 2
22 amounts and the reasons for the difference. The retailer's
23 annual return to the Department shall also disclose the cost
24 of goods sold by the retailer during the year covered by such
25 return, opening and closing inventories of such goods for
26 such year, costs of goods used from stock or taken from stock
27 and given away by the retailer during such year, payroll
28 information of the retailer's business during such year and
29 any additional reasonable information which the Department
30 deems would be helpful in determining the accuracy of the
31 monthly, quarterly or annual returns filed by such retailer
32 as provided for in this Section.
33 If the annual information return required by this Section
34 is not filed when and as required, the taxpayer shall be
-75- LRB9008924KDdv
1 liable as follows:
2 (i) Until January 1, 1994, the taxpayer shall be
3 liable for a penalty equal to 1/6 of 1% of the tax due
4 from such taxpayer under this Act during the period to be
5 covered by the annual return for each month or fraction
6 of a month until such return is filed as required, the
7 penalty to be assessed and collected in the same manner
8 as any other penalty provided for in this Act.
9 (ii) On and after January 1, 1994, the taxpayer
10 shall be liable for a penalty as described in Section 3-4
11 of the Uniform Penalty and Interest Act.
12 The chief executive officer, proprietor, owner or highest
13 ranking manager shall sign the annual return to certify the
14 accuracy of the information contained therein. Any person
15 who willfully signs the annual return containing false or
16 inaccurate information shall be guilty of perjury and
17 punished accordingly. The annual return form prescribed by
18 the Department shall include a warning that the person
19 signing the return may be liable for perjury.
20 The provisions of this Section concerning the filing of
21 an annual information return do not apply to a retailer who
22 is not required to file an income tax return with the United
23 States Government.
24 As soon as possible after the first day of each month,
25 upon certification of the Department of Revenue, the
26 Comptroller shall order transferred and the Treasurer shall
27 transfer from the General Revenue Fund to the Motor Fuel Tax
28 Fund an amount equal to 1.7% of 80% of the net revenue
29 realized under this Act for the second preceding month;
30 except that this transfer shall not be made for the months
31 February through June, 1992.
32 Net revenue realized for a month shall be the revenue
33 collected by the State pursuant to this Act, less the amount
34 paid out during that month as refunds to taxpayers for
-76- LRB9008924KDdv
1 overpayment of liability.
2 For greater simplicity of administration, manufacturers,
3 importers and wholesalers whose products are sold at retail
4 in Illinois by numerous retailers, and who wish to do so, may
5 assume the responsibility for accounting and paying to the
6 Department all tax accruing under this Act with respect to
7 such sales, if the retailers who are affected do not make
8 written objection to the Department to this arrangement.
9 Any person who promotes, organizes, provides retail
10 selling space for concessionaires or other types of sellers
11 at the Illinois State Fair, DuQuoin State Fair, county fairs,
12 local fairs, art shows, flea markets and similar exhibitions
13 or events, including any transient merchant as defined by
14 Section 2 of the Transient Merchant Act of 1987, is required
15 to file a report with the Department providing the name of
16 the merchant's business, the name of the person or persons
17 engaged in merchant's business, the permanent address and
18 Illinois Retailers Occupation Tax Registration Number of the
19 merchant, the dates and location of the event and other
20 reasonable information that the Department may require. The
21 report must be filed not later than the 20th day of the month
22 next following the month during which the event with retail
23 sales was held. Any person who fails to file a report
24 required by this Section commits a business offense and is
25 subject to a fine not to exceed $250.
26 Any person engaged in the business of selling tangible
27 personal property at retail as a concessionaire or other type
28 of seller at the Illinois State Fair, county fairs, art
29 shows, flea markets and similar exhibitions or events, or any
30 transient merchants, as defined by Section 2 of the Transient
31 Merchant Act of 1987, may be required to make a daily report
32 of the amount of such sales to the Department and to make a
33 daily payment of the full amount of tax due. The Department
34 shall impose this requirement when it finds that there is a
-77- LRB9008924KDdv
1 significant risk of loss of revenue to the State at such an
2 exhibition or event. Such a finding shall be based on
3 evidence that a substantial number of concessionaires or
4 other sellers who are not residents of Illinois will be
5 engaging in the business of selling tangible personal
6 property at retail at the exhibition or event, or other
7 evidence of a significant risk of loss of revenue to the
8 State. The Department shall notify concessionaires and other
9 sellers affected by the imposition of this requirement. In
10 the absence of notification by the Department, the
11 concessionaires and other sellers shall file their returns as
12 otherwise required in this Section.
13 (Source: P.A. 88-45; 88-116; 88-194; 88-480; 88-547, eff.
14 6-30-94; 88-660, eff. 9-16-94; 88-669, eff. 11-29-94; 88-670,
15 eff. 12-2-94; 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
16 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
17 (Text of Section after amendment by P.A. 90-491)
18 Sec. 3. Except as provided in this Section, on or before
19 the twentieth day of each calendar month, every person
20 engaged in the business of selling tangible personal property
21 at retail in this State during the preceding calendar month
22 shall file a return with the Department, stating:
23 1. The name of the seller;
24 2. His residence address and the address of his
25 principal place of business and the address of the
26 principal place of business (if that is a different
27 address) from which he engages in the business of selling
28 tangible personal property at retail in this State;
29 3. Total amount of receipts received by him during
30 the preceding calendar month or quarter, as the case may
31 be, from sales of tangible personal property, and from
32 services furnished, by him during such preceding calendar
33 month or quarter;
34 4. Total amount received by him during the
-78- LRB9008924KDdv
1 preceding calendar month or quarter on charge and time
2 sales of tangible personal property, and from services
3 furnished, by him prior to the month or quarter for which
4 the return is filed;
5 5. Deductions allowed by law;
6 6. Gross receipts which were received by him during
7 the preceding calendar month or quarter and upon the
8 basis of which the tax is imposed;
9 7. The amount of credit provided in Section 2d of
10 this Act;
11 8. The amount of tax due;
12 9. The signature of the taxpayer; and
13 10. Such other reasonable information as the
14 Department may require.
15 If a taxpayer fails to sign a return within 30 days after
16 the proper notice and demand for signature by the Department,
17 the return shall be considered valid and any amount shown to
18 be due on the return shall be deemed assessed.
19 Each return shall be accompanied by the statement of
20 prepaid tax issued pursuant to Section 2e for which credit is
21 claimed.
22 A retailer may accept a Manufacturer's Purchase Credit
23 certification from a purchaser in satisfaction of Use Tax as
24 provided in Section 3-85 of the Use Tax Act if the purchaser
25 provides the appropriate documentation as required by Section
26 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
27 certification, accepted by a retailer as provided in Section
28 3-85 of the Use Tax Act, may be used by that retailer to
29 satisfy Retailers' Occupation Tax liability in the amount
30 claimed in the certification, not to exceed 6.25% of the
31 receipts subject to tax from a qualifying purchase.
32 The Department may require returns to be filed on a
33 quarterly basis. If so required, a return for each calendar
34 quarter shall be filed on or before the twentieth day of the
-79- LRB9008924KDdv
1 calendar month following the end of such calendar quarter.
2 The taxpayer shall also file a return with the Department for
3 each of the first two months of each calendar quarter, on or
4 before the twentieth day of the following calendar month,
5 stating:
6 1. The name of the seller;
7 2. The address of the principal place of business
8 from which he engages in the business of selling tangible
9 personal property at retail in this State;
10 3. The total amount of taxable receipts received by
11 him during the preceding calendar month from sales of
12 tangible personal property by him during such preceding
13 calendar month, including receipts from charge and time
14 sales, but less all deductions allowed by law;
15 4. The amount of credit provided in Section 2d of
16 this Act;
17 5. The amount of tax due; and
18 6. Such other reasonable information as the
19 Department may require.
20 If a total amount of less than $1 is payable, refundable
21 or creditable, such amount shall be disregarded if it is less
22 than 50 cents and shall be increased to $1 if it is 50 cents
23 or more.
24 Beginning October 1, 1993, a taxpayer who has an average
25 monthly tax liability of $150,000 or more shall make all
26 payments required by rules of the Department by electronic
27 funds transfer. Beginning October 1, 1994, a taxpayer who
28 has an average monthly tax liability of $100,000 or more
29 shall make all payments required by rules of the Department
30 by electronic funds transfer. Beginning October 1, 1995, a
31 taxpayer who has an average monthly tax liability of $50,000
32 or more shall make all payments required by rules of the
33 Department by electronic funds transfer. The term "average
34 monthly tax liability" shall be the sum of the taxpayer's
-80- LRB9008924KDdv
1 liabilities under this Act, and under all other State and
2 local occupation and use tax laws administered by the
3 Department, for the immediately preceding calendar year
4 divided by 12.
5 Before August 1 of each year beginning in 1993, the
6 Department shall notify all taxpayers required to make
7 payments by electronic funds transfer. All taxpayers
8 required to make payments by electronic funds transfer shall
9 make those payments for a minimum of one year beginning on
10 October 1.
11 Any taxpayer not required to make payments by electronic
12 funds transfer may make payments by electronic funds transfer
13 with the permission of the Department.
14 All taxpayers required to make payment by electronic
15 funds transfer and any taxpayers authorized to voluntarily
16 make payments by electronic funds transfer shall make those
17 payments in the manner authorized by the Department.
18 The Department shall adopt such rules as are necessary to
19 effectuate a program of electronic funds transfer and the
20 requirements of this Section.
21 Any amount which is required to be shown or reported on
22 any return or other document under this Act shall, if such
23 amount is not a whole-dollar amount, be increased to the
24 nearest whole-dollar amount in any case where the fractional
25 part of a dollar is 50 cents or more, and decreased to the
26 nearest whole-dollar amount where the fractional part of a
27 dollar is less than 50 cents.
28 If the retailer is otherwise required to file a monthly
29 return and if the retailer's average monthly tax liability to
30 the Department does not exceed $200, the Department may
31 authorize his returns to be filed on a quarter annual basis,
32 with the return for January, February and March of a given
33 year being due by April 20 of such year; with the return for
34 April, May and June of a given year being due by July 20 of
-81- LRB9008924KDdv
1 such year; with the return for July, August and September of
2 a given year being due by October 20 of such year, and with
3 the return for October, November and December of a given year
4 being due by January 20 of the following year.
5 If the retailer is otherwise required to file a monthly
6 or quarterly return and if the retailer's average monthly tax
7 liability with the Department does not exceed $50, the
8 Department may authorize his returns to be filed on an annual
9 basis, with the return for a given year being due by January
10 20 of the following year.
11 Such quarter annual and annual returns, as to form and
12 substance, shall be subject to the same requirements as
13 monthly returns.
14 Notwithstanding any other provision in this Act
15 concerning the time within which a retailer may file his
16 return, in the case of any retailer who ceases to engage in a
17 kind of business which makes him responsible for filing
18 returns under this Act, such retailer shall file a final
19 return under this Act with the Department not more than one
20 month after discontinuing such business.
21 Where the same person has more than one business
22 registered with the Department under separate registrations
23 under this Act, such person may not file each return that is
24 due as a single return covering all such registered
25 businesses, but shall file separate returns for each such
26 registered business.
27 In addition, with respect to motor vehicles, watercraft,
28 aircraft, and trailers that are required to be registered
29 with an agency of this State, every retailer selling this
30 kind of tangible personal property shall file, with the
31 Department, upon a form to be prescribed and supplied by the
32 Department, a separate return for each such item of tangible
33 personal property which the retailer sells, except that
34 where, in the same transaction, a retailer of aircraft,
-82- LRB9008924KDdv
1 watercraft, motor vehicles or trailers transfers more than
2 one aircraft, watercraft, motor vehicle or trailer to another
3 aircraft, watercraft, motor vehicle retailer or trailer
4 retailer for the purpose of resale, that seller for resale
5 may report the transfer of all aircraft, watercraft, motor
6 vehicles or trailers involved in that transaction to the
7 Department on the same uniform invoice-transaction reporting
8 return form. For purposes of this Section, "watercraft"
9 means a Class 2, Class 3, or Class 4 watercraft as defined in
10 Section 3-2 of the Boat Registration and Safety Act, a
11 personal watercraft, or any boat equipped with an inboard
12 motor.
13 Any retailer who sells only motor vehicles, watercraft,
14 aircraft, or trailers that are required to be registered with
15 an agency of this State, so that all retailers' occupation
16 tax liability is required to be reported, and is reported, on
17 such transaction reporting returns and who is not otherwise
18 required to file monthly or quarterly returns, need not file
19 monthly or quarterly returns. However, those retailers shall
20 be required to file returns on an annual basis.
21 The transaction reporting return, in the case of motor
22 vehicles or trailers that are required to be registered with
23 an agency of this State, shall be the same document as the
24 Uniform Invoice referred to in Section 5-402 of The Illinois
25 Vehicle Code and must show the name and address of the
26 seller; the name and address of the purchaser; the amount of
27 the selling price including the amount allowed by the
28 retailer for traded-in property, if any; the amount allowed
29 by the retailer for the traded-in tangible personal property,
30 if any, to the extent to which Section 1 of this Act allows
31 an exemption for the value of traded-in property; the balance
32 payable after deducting such trade-in allowance from the
33 total selling price; the amount of tax due from the retailer
34 with respect to such transaction; the amount of tax collected
-83- LRB9008924KDdv
1 from the purchaser by the retailer on such transaction (or
2 satisfactory evidence that such tax is not due in that
3 particular instance, if that is claimed to be the fact); the
4 place and date of the sale; a sufficient identification of
5 the property sold; such other information as is required in
6 Section 5-402 of The Illinois Vehicle Code, and such other
7 information as the Department may reasonably require.
8 The transaction reporting return in the case of
9 watercraft or aircraft must show the name and address of the
10 seller; the name and address of the purchaser; the amount of
11 the selling price including the amount allowed by the
12 retailer for traded-in property, if any; the amount allowed
13 by the retailer for the traded-in tangible personal property,
14 if any, to the extent to which Section 1 of this Act allows
15 an exemption for the value of traded-in property; the balance
16 payable after deducting such trade-in allowance from the
17 total selling price; the amount of tax due from the retailer
18 with respect to such transaction; the amount of tax collected
19 from the purchaser by the retailer on such transaction (or
20 satisfactory evidence that such tax is not due in that
21 particular instance, if that is claimed to be the fact); the
22 place and date of the sale, a sufficient identification of
23 the property sold, and such other information as the
24 Department may reasonably require.
25 Such transaction reporting return shall be filed not
26 later than 20 days after the day of delivery of the item that
27 is being sold, but may be filed by the retailer at any time
28 sooner than that if he chooses to do so. The transaction
29 reporting return and tax remittance or proof of exemption
30 from the Illinois use tax may be transmitted to the
31 Department by way of the State agency with which, or State
32 officer with whom the tangible personal property must be
33 titled or registered (if titling or registration is required)
34 if the Department and such agency or State officer determine
-84- LRB9008924KDdv
1 that this procedure will expedite the processing of
2 applications for title or registration.
3 With each such transaction reporting return, the retailer
4 shall remit the proper amount of tax due (or shall submit
5 satisfactory evidence that the sale is not taxable if that is
6 the case), to the Department or its agents, whereupon the
7 Department shall issue, in the purchaser's name, a use tax
8 receipt (or a certificate of exemption if the Department is
9 satisfied that the particular sale is tax exempt) which such
10 purchaser may submit to the agency with which, or State
11 officer with whom, he must title or register the tangible
12 personal property that is involved (if titling or
13 registration is required) in support of such purchaser's
14 application for an Illinois certificate or other evidence of
15 title or registration to such tangible personal property.
16 No retailer's failure or refusal to remit tax under this
17 Act precludes a user, who has paid the proper tax to the
18 retailer, from obtaining his certificate of title or other
19 evidence of title or registration (if titling or registration
20 is required) upon satisfying the Department that such user
21 has paid the proper tax (if tax is due) to the retailer. The
22 Department shall adopt appropriate rules to carry out the
23 mandate of this paragraph.
24 If the user who would otherwise pay tax to the retailer
25 wants the transaction reporting return filed and the payment
26 of the tax or proof of exemption made to the Department
27 before the retailer is willing to take these actions and such
28 user has not paid the tax to the retailer, such user may
29 certify to the fact of such delay by the retailer and may
30 (upon the Department being satisfied of the truth of such
31 certification) transmit the information required by the
32 transaction reporting return and the remittance for tax or
33 proof of exemption directly to the Department and obtain his
34 tax receipt or exemption determination, in which event the
-85- LRB9008924KDdv
1 transaction reporting return and tax remittance (if a tax
2 payment was required) shall be credited by the Department to
3 the proper retailer's account with the Department, but
4 without the 2.1% or 1.75% discount provided for in this
5 Section being allowed. When the user pays the tax directly
6 to the Department, he shall pay the tax in the same amount
7 and in the same form in which it would be remitted if the tax
8 had been remitted to the Department by the retailer.
9 Refunds made by the seller during the preceding return
10 period to purchasers, on account of tangible personal
11 property returned to the seller, shall be allowed as a
12 deduction under subdivision 5 of his monthly or quarterly
13 return, as the case may be, in case the seller had
14 theretofore included the receipts from the sale of such
15 tangible personal property in a return filed by him and had
16 paid the tax imposed by this Act with respect to such
17 receipts.
18 Where the seller is a corporation, the return filed on
19 behalf of such corporation shall be signed by the president,
20 vice-president, secretary or treasurer or by the properly
21 accredited agent of such corporation.
22 Where the seller is a limited liability company, the
23 return filed on behalf of the limited liability company shall
24 be signed by a manager, member, or properly accredited agent
25 of the limited liability company.
26 Except as provided in this Section, the retailer filing
27 the return under this Section shall, at the time of filing
28 such return, pay to the Department the amount of tax imposed
29 by this Act less a discount of 2.1% prior to January 1, 1990
30 and 1.75% on and after January 1, 1990, or $5 per calendar
31 year, whichever is greater, which is allowed to reimburse the
32 retailer for the expenses incurred in keeping records,
33 preparing and filing returns, remitting the tax and supplying
34 data to the Department on request. Any prepayment made
-86- LRB9008924KDdv
1 pursuant to Section 2d of this Act shall be included in the
2 amount on which such 2.1% or 1.75% discount is computed. In
3 the case of retailers who report and pay the tax on a
4 transaction by transaction basis, as provided in this
5 Section, such discount shall be taken with each such tax
6 remittance instead of when such retailer files his periodic
7 return.
8 If the taxpayer's average monthly tax liability to the
9 Department under this Act, the Use Tax Act, the Service
10 Occupation Tax Act, and the Service Use Tax Act, excluding
11 any liability for prepaid sales tax to be remitted in
12 accordance with Section 2d of this Act, was $10,000 or more
13 during the preceding 4 complete calendar quarters, he shall
14 file a return with the Department each month by the 20th day
15 of the month next following the month during which such tax
16 liability is incurred and shall make payments to the
17 Department on or before the 7th, 15th, 22nd and last day of
18 the month during which such liability is incurred. If the
19 month during which such tax liability is incurred began prior
20 to January 1, 1985, each payment shall be in an amount equal
21 to 1/4 of the taxpayer's actual liability for the month or an
22 amount set by the Department not to exceed 1/4 of the average
23 monthly liability of the taxpayer to the Department for the
24 preceding 4 complete calendar quarters (excluding the month
25 of highest liability and the month of lowest liability in
26 such 4 quarter period). If the month during which such tax
27 liability is incurred begins on or after January 1, 1985 and
28 prior to January 1, 1987, each payment shall be in an amount
29 equal to 22.5% of the taxpayer's actual liability for the
30 month or 27.5% of the taxpayer's liability for the same
31 calendar month of the preceding year. If the month during
32 which such tax liability is incurred begins on or after
33 January 1, 1987 and prior to January 1, 1988, each payment
34 shall be in an amount equal to 22.5% of the taxpayer's actual
-87- LRB9008924KDdv
1 liability for the month or 26.25% of the taxpayer's liability
2 for the same calendar month of the preceding year. If the
3 month during which such tax liability is incurred begins on
4 or after January 1, 1988, and prior to January 1, 1989, or
5 begins on or after January 1, 1996, each payment shall be in
6 an amount equal to 22.5% of the taxpayer's actual liability
7 for the month or 25% of the taxpayer's liability for the same
8 calendar month of the preceding year. If the month during
9 which such tax liability is incurred begins on or after
10 January 1, 1989, and prior to January 1, 1996, each payment
11 shall be in an amount equal to 22.5% of the taxpayer's actual
12 liability for the month or 25% of the taxpayer's liability
13 for the same calendar month of the preceding year or 100% of
14 the taxpayer's actual liability for the quarter monthly
15 reporting period. The amount of such quarter monthly
16 payments shall be credited against the final tax liability of
17 the taxpayer's return for that month. Once applicable, the
18 requirement of the making of quarter monthly payments to the
19 Department by taxpayers having an average monthly tax
20 liability of $10,000 or more as determined in the manner
21 provided above shall continue until such taxpayer's average
22 monthly liability to the Department during the preceding 4
23 complete calendar quarters (excluding the month of highest
24 liability and the month of lowest liability) is less than
25 $9,000, or until such taxpayer's average monthly liability to
26 the Department as computed for each calendar quarter of the 4
27 preceding complete calendar quarter period is less than
28 $10,000. However, if a taxpayer can show the Department that
29 a substantial change in the taxpayer's business has occurred
30 which causes the taxpayer to anticipate that his average
31 monthly tax liability for the reasonably foreseeable future
32 will fall below $10,000, then such taxpayer may petition the
33 Department for a change in such taxpayer's reporting status.
34 The Department shall change such taxpayer's reporting status
-88- LRB9008924KDdv
1 unless it finds that such change is seasonal in nature and
2 not likely to be long term. If any such quarter monthly
3 payment is not paid at the time or in the amount required by
4 this Section, then the taxpayer shall be liable for penalties
5 and interest on the difference between the minimum amount due
6 as a payment and the amount of such quarter monthly payment
7 actually and timely paid, except insofar as the taxpayer has
8 previously made payments for that month to the Department in
9 excess of the minimum payments previously due as provided in
10 this Section. The Department shall make reasonable rules and
11 regulations to govern the quarter monthly payment amount and
12 quarter monthly payment dates for taxpayers who file on other
13 than a calendar monthly basis.
14 Without regard to whether a taxpayer is required to make
15 quarter monthly payments as specified above, any taxpayer who
16 is required by Section 2d of this Act to collect and remit
17 prepaid taxes and has collected prepaid taxes which average
18 in excess of $25,000 per month during the preceding 2
19 complete calendar quarters, shall file a return with the
20 Department as required by Section 2f and shall make payments
21 to the Department on or before the 7th, 15th, 22nd and last
22 day of the month during which such liability is incurred. If
23 the month during which such tax liability is incurred began
24 prior to the effective date of this amendatory Act of 1985,
25 each payment shall be in an amount not less than 22.5% of the
26 taxpayer's actual liability under Section 2d. If the month
27 during which such tax liability is incurred begins on or
28 after January 1, 1986, each payment shall be in an amount
29 equal to 22.5% of the taxpayer's actual liability for the
30 month or 27.5% of the taxpayer's liability for the same
31 calendar month of the preceding calendar year. If the month
32 during which such tax liability is incurred begins on or
33 after January 1, 1987, each payment shall be in an amount
34 equal to 22.5% of the taxpayer's actual liability for the
-89- LRB9008924KDdv
1 month or 26.25% of the taxpayer's liability for the same
2 calendar month of the preceding year. The amount of such
3 quarter monthly payments shall be credited against the final
4 tax liability of the taxpayer's return for that month filed
5 under this Section or Section 2f, as the case may be. Once
6 applicable, the requirement of the making of quarter monthly
7 payments to the Department pursuant to this paragraph shall
8 continue until such taxpayer's average monthly prepaid tax
9 collections during the preceding 2 complete calendar quarters
10 is $25,000 or less. If any such quarter monthly payment is
11 not paid at the time or in the amount required, the taxpayer
12 shall be liable for penalties and interest on such
13 difference, except insofar as the taxpayer has previously
14 made payments for that month in excess of the minimum
15 payments previously due.
16 If any payment provided for in this Section exceeds the
17 taxpayer's liabilities under this Act, the Use Tax Act, the
18 Service Occupation Tax Act and the Service Use Tax Act, as
19 shown on an original monthly return, the Department shall, if
20 requested by the taxpayer, issue to the taxpayer a credit
21 memorandum no later than 30 days after the date of payment.
22 The credit evidenced by such credit memorandum may be
23 assigned by the taxpayer to a similar taxpayer under this
24 Act, the Use Tax Act, the Service Occupation Tax Act or the
25 Service Use Tax Act, in accordance with reasonable rules and
26 regulations to be prescribed by the Department. If no such
27 request is made, the taxpayer may credit such excess payment
28 against tax liability subsequently to be remitted to the
29 Department under this Act, the Use Tax Act, the Service
30 Occupation Tax Act or the Service Use Tax Act, in accordance
31 with reasonable rules and regulations prescribed by the
32 Department. If the Department subsequently determined that
33 all or any part of the credit taken was not actually due to
34 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
-90- LRB9008924KDdv
1 shall be reduced by 2.1% or 1.75% of the difference between
2 the credit taken and that actually due, and that taxpayer
3 shall be liable for penalties and interest on such
4 difference.
5 If a retailer of motor fuel is entitled to a credit under
6 Section 2d of this Act which exceeds the taxpayer's liability
7 to the Department under this Act for the month which the
8 taxpayer is filing a return, the Department shall issue the
9 taxpayer a credit memorandum for the excess.
10 Beginning January 1, 1990, each month the Department
11 shall pay into the Local Government Tax Fund, a special fund
12 in the State treasury which is hereby created, the net
13 revenue realized for the preceding month from the 1% tax on
14 sales of food for human consumption which is to be consumed
15 off the premises where it is sold (other than alcoholic
16 beverages, soft drinks and food which has been prepared for
17 immediate consumption) and prescription and nonprescription
18 medicines, drugs, medical appliances and insulin, urine
19 testing materials, syringes and needles used by diabetics.
20 Beginning January 1, 1990, each month the Department
21 shall pay into the County and Mass Transit District Fund, a
22 special fund in the State treasury which is hereby created,
23 4% of the net revenue realized for the preceding month from
24 the 6.25% general rate.
25 Beginning January 1, 1990, each month the Department
26 shall pay into the Local Government Tax Fund 16% of the net
27 revenue realized for the preceding month from the 6.25%
28 general rate on the selling price of tangible personal
29 property.
30 Of the remainder of the moneys received by the Department
31 pursuant to this Act, (a) 1.75% thereof shall be paid into
32 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
33 and on and after July 1, 1989, 3.8% thereof shall be paid
34 into the Build Illinois Fund; provided, however, that if in
-91- LRB9008924KDdv
1 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
2 as the case may be, of the moneys received by the Department
3 and required to be paid into the Build Illinois Fund pursuant
4 to this Act, Section 9 of the Use Tax Act, Section 9 of the
5 Service Use Tax Act, and Section 9 of the Service Occupation
6 Tax Act, such Acts being hereinafter called the "Tax Acts"
7 and such aggregate of 2.2% or 3.8%, as the case may be, of
8 moneys being hereinafter called the "Tax Act Amount", and (2)
9 the amount transferred to the Build Illinois Fund from the
10 State and Local Sales Tax Reform Fund shall be less than the
11 Annual Specified Amount (as hereinafter defined), an amount
12 equal to the difference shall be immediately paid into the
13 Build Illinois Fund from other moneys received by the
14 Department pursuant to the Tax Acts; the "Annual Specified
15 Amount" means the amounts specified below for fiscal years
16 1986 through 1993:
17 Fiscal Year Annual Specified Amount
18 1986 $54,800,000
19 1987 $76,650,000
20 1988 $80,480,000
21 1989 $88,510,000
22 1990 $115,330,000
23 1991 $145,470,000
24 1992 $182,730,000
25 1993 $206,520,000;
26 and means the Certified Annual Debt Service Requirement (as
27 defined in Section 13 of the Build Illinois Bond Act) or the
28 Tax Act Amount, whichever is greater, for fiscal year 1994
29 and each fiscal year thereafter; and further provided, that
30 if on the last business day of any month the sum of (1) the
31 Tax Act Amount required to be deposited into the Build
32 Illinois Bond Account in the Build Illinois Fund during such
33 month and (2) the amount transferred to the Build Illinois
34 Fund from the State and Local Sales Tax Reform Fund shall
-92- LRB9008924KDdv
1 have been less than 1/12 of the Annual Specified Amount, an
2 amount equal to the difference shall be immediately paid into
3 the Build Illinois Fund from other moneys received by the
4 Department pursuant to the Tax Acts; and, further provided,
5 that in no event shall the payments required under the
6 preceding proviso result in aggregate payments into the Build
7 Illinois Fund pursuant to this clause (b) for any fiscal year
8 in excess of the greater of (i) the Tax Act Amount or (ii)
9 the Annual Specified Amount for such fiscal year. The
10 amounts payable into the Build Illinois Fund under clause (b)
11 of the first sentence in this paragraph shall be payable only
12 until such time as the aggregate amount on deposit under each
13 trust indenture securing Bonds issued and outstanding
14 pursuant to the Build Illinois Bond Act is sufficient, taking
15 into account any future investment income, to fully provide,
16 in accordance with such indenture, for the defeasance of or
17 the payment of the principal of, premium, if any, and
18 interest on the Bonds secured by such indenture and on any
19 Bonds expected to be issued thereafter and all fees and costs
20 payable with respect thereto, all as certified by the
21 Director of the Bureau of the Budget. If on the last
22 business day of any month in which Bonds are outstanding
23 pursuant to the Build Illinois Bond Act, the aggregate of
24 moneys deposited in the Build Illinois Bond Account in the
25 Build Illinois Fund in such month shall be less than the
26 amount required to be transferred in such month from the
27 Build Illinois Bond Account to the Build Illinois Bond
28 Retirement and Interest Fund pursuant to Section 13 of the
29 Build Illinois Bond Act, an amount equal to such deficiency
30 shall be immediately paid from other moneys received by the
31 Department pursuant to the Tax Acts to the Build Illinois
32 Fund; provided, however, that any amounts paid to the Build
33 Illinois Fund in any fiscal year pursuant to this sentence
34 shall be deemed to constitute payments pursuant to clause (b)
-93- LRB9008924KDdv
1 of the first sentence of this paragraph and shall reduce the
2 amount otherwise payable for such fiscal year pursuant to
3 that clause (b). The moneys received by the Department
4 pursuant to this Act and required to be deposited into the
5 Build Illinois Fund are subject to the pledge, claim and
6 charge set forth in Section 12 of the Build Illinois Bond
7 Act.
8 Subject to payment of amounts into the Build Illinois
9 Fund as provided in the preceding paragraph or in any
10 amendment thereto hereafter enacted, the following specified
11 monthly installment of the amount requested in the
12 certificate of the Chairman of the Metropolitan Pier and
13 Exposition Authority provided under Section 8.25f of the
14 State Finance Act, but not in excess of sums designated as
15 "Total Deposit", shall be deposited in the aggregate from
16 collections under Section 9 of the Use Tax Act, Section 9 of
17 the Service Use Tax Act, Section 9 of the Service Occupation
18 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
19 into the McCormick Place Expansion Project Fund in the
20 specified fiscal years.
21 Fiscal Year Total Deposit
22 1993 $0
23 1994 53,000,000
24 1995 58,000,000
25 1996 61,000,000
26 1997 64,000,000
27 1998 68,000,000
28 1999 71,000,000
29 2000 75,000,000
30 2001 80,000,000
31 2002 84,000,000
32 2003 89,000,000
33 2004 and 93,000,000
34 each fiscal year
-94- LRB9008924KDdv
1 thereafter that bonds
2 are outstanding under
3 Section 13.2 of the
4 Metropolitan Pier and
5 Exposition Authority
6 Act.
7 Beginning July 20, 1993 and in each month of each fiscal
8 year thereafter, one-eighth of the amount requested in the
9 certificate of the Chairman of the Metropolitan Pier and
10 Exposition Authority for that fiscal year, less the amount
11 deposited into the McCormick Place Expansion Project Fund by
12 the State Treasurer in the respective month under subsection
13 (g) of Section 13 of the Metropolitan Pier and Exposition
14 Authority Act, plus cumulative deficiencies in the deposits
15 required under this Section for previous months and years,
16 shall be deposited into the McCormick Place Expansion Project
17 Fund, until the full amount requested for the fiscal year,
18 but not in excess of the amount specified above as "Total
19 Deposit", has been deposited.
20 Subject to payment of amounts into the Build Illinois
21 Fund and the McCormick Place Expansion Project Fund pursuant
22 to the preceding paragraphs or in any amendment thereto
23 hereafter enacted, each month the Department shall pay into
24 the Local Government Distributive Fund 0.4% of the net
25 revenue realized for the preceding month from the 5% general
26 rate or 0.4% of 80% of the net revenue realized for the
27 preceding month from the 6.25% general rate, as the case may
28 be, on the selling price of tangible personal property which
29 amount shall, subject to appropriation, be distributed as
30 provided in Section 2 of the State Revenue Sharing Act. No
31 payments or distributions pursuant to this paragraph shall be
32 made if the tax imposed by this Act on photoprocessing
33 products is declared unconstitutional, or if the proceeds
34 from such tax are unavailable for distribution because of
-95- LRB9008924KDdv
1 litigation.
2 Subject to payment of amounts into the Build Illinois
3 Fund, the McCormick Place Expansion Project to the preceding
4 paragraphs or in any amendments thereto hereafter enacted,
5 beginning July 1, 1993, the Department shall each month pay
6 into the Illinois Tax Increment Fund 0.27% of 80% of the net
7 revenue realized for the preceding month from the 6.25%
8 general rate on the selling price of tangible personal
9 property.
10 Of the remainder of the moneys received by the Department
11 pursuant to this Act, 75% thereof shall be paid into the
12 State Treasury and 25% shall be reserved in a special account
13 and used only for the transfer to the Common School Fund as
14 part of the monthly transfer from the General Revenue Fund in
15 accordance with Section 8a of the State Finance Act.
16 For each of the 12 months beginning July 1998 through
17 June 1999, as soon as possible after the last day of each
18 such month, upon certification from the Department of
19 Revenue, the Comptroller shall order transferred and the
20 Treasurer shall transfer moneys received by the Department
21 under this Act from the sale of gasoline from the General
22 Revenue Fund to the Road Fund in accordance with Section 3.5
23 of this Act.
24 The Department may, upon separate written notice to a
25 taxpayer, require the taxpayer to prepare and file with the
26 Department on a form prescribed by the Department within not
27 less than 60 days after receipt of the notice an annual
28 information return for the tax year specified in the notice.
29 Such annual return to the Department shall include a
30 statement of gross receipts as shown by the retailer's last
31 Federal income tax return. If the total receipts of the
32 business as reported in the Federal income tax return do not
33 agree with the gross receipts reported to the Department of
34 Revenue for the same period, the retailer shall attach to his
-96- LRB9008924KDdv
1 annual return a schedule showing a reconciliation of the 2
2 amounts and the reasons for the difference. The retailer's
3 annual return to the Department shall also disclose the cost
4 of goods sold by the retailer during the year covered by such
5 return, opening and closing inventories of such goods for
6 such year, costs of goods used from stock or taken from stock
7 and given away by the retailer during such year, payroll
8 information of the retailer's business during such year and
9 any additional reasonable information which the Department
10 deems would be helpful in determining the accuracy of the
11 monthly, quarterly or annual returns filed by such retailer
12 as provided for in this Section.
13 If the annual information return required by this Section
14 is not filed when and as required, the taxpayer shall be
15 liable as follows:
16 (i) Until January 1, 1994, the taxpayer shall be
17 liable for a penalty equal to 1/6 of 1% of the tax due
18 from such taxpayer under this Act during the period to be
19 covered by the annual return for each month or fraction
20 of a month until such return is filed as required, the
21 penalty to be assessed and collected in the same manner
22 as any other penalty provided for in this Act.
23 (ii) On and after January 1, 1994, the taxpayer
24 shall be liable for a penalty as described in Section 3-4
25 of the Uniform Penalty and Interest Act.
26 The chief executive officer, proprietor, owner or highest
27 ranking manager shall sign the annual return to certify the
28 accuracy of the information contained therein. Any person
29 who willfully signs the annual return containing false or
30 inaccurate information shall be guilty of perjury and
31 punished accordingly. The annual return form prescribed by
32 the Department shall include a warning that the person
33 signing the return may be liable for perjury.
34 The provisions of this Section concerning the filing of
-97- LRB9008924KDdv
1 an annual information return do not apply to a retailer who
2 is not required to file an income tax return with the United
3 States Government.
4 As soon as possible after the first day of each month,
5 upon certification of the Department of Revenue, the
6 Comptroller shall order transferred and the Treasurer shall
7 transfer from the General Revenue Fund to the Motor Fuel Tax
8 Fund an amount equal to 1.7% of 80% of the net revenue
9 realized under this Act for the second preceding month;
10 except that this transfer shall not be made for the months
11 February through June, 1992.
12 Net revenue realized for a month shall be the revenue
13 collected by the State pursuant to this Act, less the amount
14 paid out during that month as refunds to taxpayers for
15 overpayment of liability.
16 For greater simplicity of administration, manufacturers,
17 importers and wholesalers whose products are sold at retail
18 in Illinois by numerous retailers, and who wish to do so, may
19 assume the responsibility for accounting and paying to the
20 Department all tax accruing under this Act with respect to
21 such sales, if the retailers who are affected do not make
22 written objection to the Department to this arrangement.
23 Any person who promotes, organizes, provides retail
24 selling space for concessionaires or other types of sellers
25 at the Illinois State Fair, DuQuoin State Fair, county fairs,
26 local fairs, art shows, flea markets and similar exhibitions
27 or events, including any transient merchant as defined by
28 Section 2 of the Transient Merchant Act of 1987, is required
29 to file a report with the Department providing the name of
30 the merchant's business, the name of the person or persons
31 engaged in merchant's business, the permanent address and
32 Illinois Retailers Occupation Tax Registration Number of the
33 merchant, the dates and location of the event and other
34 reasonable information that the Department may require. The
-98- LRB9008924KDdv
1 report must be filed not later than the 20th day of the month
2 next following the month during which the event with retail
3 sales was held. Any person who fails to file a report
4 required by this Section commits a business offense and is
5 subject to a fine not to exceed $250.
6 Any person engaged in the business of selling tangible
7 personal property at retail as a concessionaire or other type
8 of seller at the Illinois State Fair, county fairs, art
9 shows, flea markets and similar exhibitions or events, or any
10 transient merchants, as defined by Section 2 of the Transient
11 Merchant Act of 1987, may be required to make a daily report
12 of the amount of such sales to the Department and to make a
13 daily payment of the full amount of tax due. The Department
14 shall impose this requirement when it finds that there is a
15 significant risk of loss of revenue to the State at such an
16 exhibition or event. Such a finding shall be based on
17 evidence that a substantial number of concessionaires or
18 other sellers who are not residents of Illinois will be
19 engaging in the business of selling tangible personal
20 property at retail at the exhibition or event, or other
21 evidence of a significant risk of loss of revenue to the
22 State. The Department shall notify concessionaires and other
23 sellers affected by the imposition of this requirement. In
24 the absence of notification by the Department, the
25 concessionaires and other sellers shall file their returns as
26 otherwise required in this Section.
27 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
28 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff.
29 1-1-99.)
30 (35 ILCS 120/3.5 new)
31 Sec. 3.5. Tax on gasoline; transfers to Road Fund. For
32 purposes of the transfers required by this amendatory Act of
33 1998 in Section 9 of the Use Tax Act, Section 9 of the
-99- LRB9008924KDdv
1 Service Use Tax Act, Section 9 of the Service Occupation Tax
2 Act, and Section 3 of this Act, the Treasurer shall transfer
3 the aggregate amount of money received under those Acts from
4 the tax of gasoline or an aggregate of $33,333,333, whichever
5 is less, each month from the General Revenue Fund to the Road
6 Fund. The money shall first be transferred from the amounts
7 received from the tax imposed under this Act, second from the
8 amounts received from the tax imposed under the Use Tax Act,
9 third from the amounts received from the tax imposed under
10 the Service Occupation Tax Act, and fourth from the amounts
11 received from the tax imposed under the Service Use Tax Act.
12 Section 95. No acceleration or delay. Where this Act
13 makes changes in a statute that is represented in this Act by
14 text that is not yet or no longer in effect (for example, a
15 Section represented by multiple versions), the use of that
16 text does not accelerate or delay the taking effect of (i)
17 the changes made by this Act or (ii) provisions derived from
18 any other Public Act.
19 Section 99. Effective date. This Act takes effect upon
20 becoming law.