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| [ Introduced ] | [ Senate Amendment 003 ] |
90_SB1458eng
35 ILCS 120/2d from Ch. 120, par. 441d
35 ILCS 505/2 from Ch. 120, par. 418
Amends the Retailers' Occupation Tax Act to make a
technical change in the Section concerning the prepayment of
retailers' occupation tax by motor fuel retailers. Amends
the Motor Fuel Tax Law by making a technical change in the
Section concerning the imposition and rate of the tax.
LRB9011307KDbd
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1 AN ACT in relation to taxes.
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 Sections 3-10 and 9 as follows:
6 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
7 Sec. 3-10. Rate of tax. Unless otherwise provided in
8 this Section, the tax imposed by this Act is at the rate of
9 6.25% of either the selling price or the fair market value,
10 if any, of the tangible personal property. In all cases
11 where property functionally used or consumed is the same as
12 the property that was purchased at retail, then the tax is
13 imposed on the selling price of the property. In all cases
14 where property functionally used or consumed is a by-product
15 or waste product that has been refined, manufactured, or
16 produced from property purchased at retail, then the tax is
17 imposed on the lower of the fair market value, if any, of the
18 specific property so used in this State or on the selling
19 price of the property purchased at retail. For purposes of
20 this Section "fair market value" means the price at which
21 property would change hands between a willing buyer and a
22 willing seller, neither being under any compulsion to buy or
23 sell and both having reasonable knowledge of the relevant
24 facts. The fair market value shall be established by Illinois
25 sales by the taxpayer of the same property as that
26 functionally used or consumed, or if there are no such sales
27 by the taxpayer, then comparable sales or purchases of
28 property of like kind and character in Illinois.
29 With respect to motor fuel, as defined in Section 1.1 of
30 the Motor Fuel Tax Law, and gasohol, as defined in Section
31 3-40 of the Use Tax Act, the tax is imposed at the rate of
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1 1.25%. If, however, the aggregate tax revenues from motor
2 fuel and gasohol under the Use Tax Act, the Service Use Tax
3 Act, the Service Occupation Tax Act, and the Retailers'
4 Occupation Tax Act during the period from October 1, 2001
5 through September 30, 2002 are not at least 15% more than the
6 aggregate tax revenues from motor fuel and gasohol under
7 those Acts during the period from October 1, 1998 through
8 September 30, 1999, then beginning January 1, 2003 the tax is
9 imposed on motor fuel and gasohol at the 6.25% general rate.
10 With respect to gasohol, the tax imposed by this Act
11 applies to 70% of the proceeds of sales made on or after
12 January 1, 1990, and before July 1, 1999, and to 100% of the
13 proceeds of sales made thereafter, except that from July 1,
14 1997 to July 1, 1999, the rate shall be 85% for gasohol sold
15 in this State during the 12 months beginning July 1 following
16 any calendar year for which the Department has determined
17 that the percentages in Section 10 of the Gasohol Fuels Tax
18 Abatement Act have not been met.
19 With respect to food for human consumption that is to be
20 consumed off the premises where it is sold (other than
21 alcoholic beverages, soft drinks, and food that has been
22 prepared for immediate consumption) and prescription and
23 nonprescription medicines, drugs, medical appliances,
24 modifications to a motor vehicle for the purpose of rendering
25 it usable by a disabled person, and insulin, urine testing
26 materials, syringes, and needles used by diabetics, for human
27 use, the tax is imposed at the rate of 1%. For the purposes
28 of this Section, the term "soft drinks" means any complete,
29 finished, ready-to-use, non-alcoholic drink, whether
30 carbonated or not, including but not limited to soda water,
31 cola, fruit juice, vegetable juice, carbonated water, and all
32 other preparations commonly known as soft drinks of whatever
33 kind or description that are contained in any closed or
34 sealed bottle, can, carton, or container, regardless of size.
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1 "Soft drinks" does not include coffee, tea, non-carbonated
2 water, infant formula, milk or milk products as defined in
3 the Grade A Pasteurized Milk and Milk Products Act, or drinks
4 containing 50% or more natural fruit or vegetable juice.
5 Notwithstanding any other provisions of this Act, "food
6 for human consumption that is to be consumed off the premises
7 where it is sold" includes all food sold through a vending
8 machine, except soft drinks and food products that are
9 dispensed hot from a vending machine, regardless of the
10 location of the vending machine.
11 If the property that is purchased at retail from a
12 retailer is acquired outside Illinois and used outside
13 Illinois before being brought to Illinois for use here and is
14 taxable under this Act, the "selling price" on which the tax
15 is computed shall be reduced by an amount that represents a
16 reasonable allowance for depreciation for the period of prior
17 out-of-state use.
18 (Source: P.A. 88-45; 89-359, eff. 8-17-95; 89-420, eff.
19 6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
20 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
21 (Text of Section before amendment by P.A. 90-491)
22 Sec. 9. Except as to motor vehicles, watercraft,
23 aircraft, and trailers that are required to be registered
24 with an agency of this State, each retailer required or
25 authorized to collect the tax imposed by this Act shall pay
26 to the Department the amount of such tax (except as otherwise
27 provided) at the time when he is required to file his return
28 for the period during which such tax was collected, less a
29 discount of 2.1% prior to January 1, 1990, and 1.75% on and
30 after January 1, 1990, or $5 per calendar year, whichever is
31 greater, which is allowed to reimburse the retailer for
32 expenses incurred in collecting the tax, keeping records,
33 preparing and filing returns, remitting the tax and supplying
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1 data to the Department on request. In the case of retailers
2 who report and pay the tax on a transaction by transaction
3 basis, as provided in this Section, such discount shall be
4 taken with each such tax remittance instead of when such
5 retailer files his periodic return. A retailer need not
6 remit that part of any tax collected by him to the extent
7 that he is required to remit and does remit the tax imposed
8 by the Retailers' Occupation Tax Act, with respect to the
9 sale of the same property.
10 Where such tangible personal property is sold under a
11 conditional sales contract, or under any other form of sale
12 wherein the payment of the principal sum, or a part thereof,
13 is extended beyond the close of the period for which the
14 return is filed, the retailer, in collecting the tax (except
15 as to motor vehicles, watercraft, aircraft, and trailers that
16 are required to be registered with an agency of this State),
17 may collect for each tax return period, only the tax
18 applicable to that part of the selling price actually
19 received during such tax return period.
20 Except as provided in this Section, on or before the
21 twentieth day of each calendar month, such retailer shall
22 file a return for the preceding calendar month. Such return
23 shall be filed on forms prescribed by the Department and
24 shall furnish such information as the Department may
25 reasonably require.
26 The Department may require returns to be filed on a
27 quarterly basis. If so required, a return for each calendar
28 quarter shall be filed on or before the twentieth day of the
29 calendar month following the end of such calendar quarter.
30 The taxpayer shall also file a return with the Department for
31 each of the first two months of each calendar quarter, on or
32 before the twentieth day of the following calendar month,
33 stating:
34 1. The name of the seller;
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1 2. The address of the principal place of business
2 from which he engages in the business of selling tangible
3 personal property at retail in this State;
4 3. The total amount of taxable receipts received by
5 him during the preceding calendar month from sales of
6 tangible personal property by him during such preceding
7 calendar month, including receipts from charge and time
8 sales, but less all deductions allowed by law;
9 4. The amount of credit provided in Section 2d of
10 this Act;
11 5. The amount of tax due;
12 5-5. The signature of the taxpayer; and
13 6. 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 Beginning October 1, 1993, a taxpayer who has an average
20 monthly tax liability of $150,000 or more shall make all
21 payments required by rules of the Department by electronic
22 funds transfer. Beginning October 1, 1994, a taxpayer who has
23 an average monthly tax liability of $100,000 or more shall
24 make all payments required by rules of the Department by
25 electronic funds transfer. Beginning October 1, 1995, a
26 taxpayer who has an average monthly tax liability of $50,000
27 or more shall make all payments required by rules of the
28 Department by electronic funds transfer. The term "average
29 monthly tax liability" means the sum of the taxpayer's
30 liabilities under this Act, and under all other State and
31 local occupation and use tax laws administered by the
32 Department, for the immediately preceding calendar year
33 divided by 12.
34 Before August 1 of each year beginning in 1993, the
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1 Department shall notify all taxpayers required to make
2 payments by electronic funds transfer. All taxpayers required
3 to make payments by electronic funds transfer shall make
4 those payments for a minimum of one year beginning on October
5 1.
6 Any taxpayer not required to make payments by electronic
7 funds transfer may make payments by electronic funds transfer
8 with the permission of the Department.
9 All taxpayers required to make payment by electronic
10 funds transfer and any taxpayers authorized to voluntarily
11 make payments by electronic funds transfer shall make those
12 payments in the manner authorized by the Department.
13 The Department shall adopt such rules as are necessary to
14 effectuate a program of electronic funds transfer and the
15 requirements of this Section.
16 If the taxpayer's average monthly tax liability to the
17 Department under this Act, the Retailers' Occupation Tax Act,
18 the Service Occupation Tax Act, the Service Use Tax Act was
19 $10,000 or more during the preceding 4 complete calendar
20 quarters, he shall file a return with the Department each
21 month by the 20th day of the month next following the month
22 during which such tax liability is incurred and shall make
23 payments to the Department on or before the 7th, 15th, 22nd
24 and last day of the month during which such liability is
25 incurred. If the month during which such tax liability is
26 incurred began prior to January 1, 1985, each payment shall
27 be in an amount equal to 1/4 of the taxpayer's actual
28 liability for the month or an amount set by the Department
29 not to exceed 1/4 of the average monthly liability of the
30 taxpayer to the Department for the preceding 4 complete
31 calendar quarters (excluding the month of highest liability
32 and the month of lowest liability in such 4 quarter period).
33 If the month during which such tax liability is incurred
34 begins on or after January 1, 1985, and prior to January 1,
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1 1987, each payment shall be in an amount equal to 22.5% of
2 the taxpayer's actual liability for the month or 27.5% of the
3 taxpayer's liability for the same calendar month of the
4 preceding year. If the month during which such tax liability
5 is incurred begins on or after January 1, 1987, and prior to
6 January 1, 1988, each payment shall be in an amount equal to
7 22.5% of the taxpayer's actual liability for the month or
8 26.25% of the taxpayer's liability for the same calendar
9 month of the preceding year. If the month during which such
10 tax liability is incurred begins on or after January 1, 1988,
11 and prior to January 1, 1989, or begins on or after January
12 1, 1996, each payment shall be in an amount equal to 22.5% of
13 the taxpayer's actual liability for the month or 25% of the
14 taxpayer's liability for the same calendar month of the
15 preceding year. If the month during which such tax liability
16 is incurred begins on or after January 1, 1989, and prior to
17 January 1, 1996, each payment shall be in an amount equal to
18 22.5% of the taxpayer's actual liability for the month or 25%
19 of the taxpayer's liability for the same calendar month of
20 the preceding year or 100% of the taxpayer's actual liability
21 for the quarter monthly reporting period. The amount of such
22 quarter monthly payments shall be credited against the final
23 tax liability of the taxpayer's return for that month. Once
24 applicable, the requirement of the making of quarter monthly
25 payments to the Department shall continue until such
26 taxpayer's average monthly liability to the Department during
27 the preceding 4 complete calendar quarters (excluding the
28 month of highest liability and the month of lowest liability)
29 is less than $9,000, or until such taxpayer's average monthly
30 liability to the Department as computed for each calendar
31 quarter of the 4 preceding complete calendar quarter period
32 is less than $10,000. However, if a taxpayer can show the
33 Department that a substantial change in the taxpayer's
34 business has occurred which causes the taxpayer to anticipate
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1 that his average monthly tax liability for the reasonably
2 foreseeable future will fall below $10,000, then such
3 taxpayer may petition the Department for change in such
4 taxpayer's reporting status. The Department shall change
5 such taxpayer's reporting status unless it finds that such
6 change is seasonal in nature and not likely to be long term.
7 If any such quarter monthly payment is not paid at the time
8 or in the amount required by this Section, then the
9 taxpayer's 2.1% or 1.75% vendors' discount shall be reduced
10 by 2.1% or 1.75%, as the case may be, of the difference
11 between the minimum amount due and the amount of such quarter
12 monthly payment actually and timely paid and the taxpayer
13 shall be liable for penalties and interest on such
14 difference, except insofar as the taxpayer has previously
15 made payments for that month to the Department in excess of
16 the minimum payments previously due as provided in this
17 Section. The Department shall make reasonable rules and
18 regulations to govern the quarter monthly payment amount and
19 quarter monthly payment dates for taxpayers who file on other
20 than a calendar monthly basis.
21 If any such payment provided for in this Section exceeds
22 the taxpayer's liabilities under this Act, the Retailers'
23 Occupation Tax Act, the Service Occupation Tax Act and the
24 Service Use Tax Act, as shown by an original monthly return,
25 the Department shall issue to the taxpayer a credit
26 memorandum no later than 30 days after the date of payment,
27 which memorandum may be submitted by the taxpayer to the
28 Department in payment of tax liability subsequently to be
29 remitted by the taxpayer to the Department or be assigned by
30 the taxpayer to a similar taxpayer under this Act, the
31 Retailers' Occupation Tax Act, the Service Occupation Tax Act
32 or the Service Use Tax Act, in accordance with reasonable
33 rules and regulations to be prescribed by the Department,
34 except that if such excess payment is shown on an original
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1 monthly return and is made after December 31, 1986, no credit
2 memorandum shall be issued, unless requested by the taxpayer.
3 If no such request is made, the taxpayer may credit such
4 excess payment against tax liability subsequently to be
5 remitted by the taxpayer to the Department under this Act,
6 the Retailers' Occupation Tax Act, the Service Occupation Tax
7 Act or the Service Use Tax Act, in accordance with reasonable
8 rules and regulations prescribed by the Department. If the
9 Department subsequently determines that all or any part of
10 the credit taken was not actually due to the taxpayer, the
11 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
12 by 2.1% or 1.75% of the difference between the credit taken
13 and that actually due, and the taxpayer shall be liable for
14 penalties and interest on such difference.
15 If the retailer is otherwise required to file a monthly
16 return and if the retailer's average monthly tax liability to
17 the Department does not exceed $200, the Department may
18 authorize his returns to be filed on a quarter annual basis,
19 with the return for January, February, and March of a given
20 year being due by April 20 of such year; with the return for
21 April, May and June of a given year being due by July 20 of
22 such year; with the return for July, August and September of
23 a given year being due by October 20 of such year, and with
24 the return for October, November and December of a given year
25 being due by January 20 of the following year.
26 If the retailer is otherwise required to file a monthly
27 or quarterly return and if the retailer's average monthly tax
28 liability to the Department does not exceed $50, the
29 Department may authorize his returns to be filed on an annual
30 basis, with the return for a given year being due by January
31 20 of the following year.
32 Such quarter annual and annual returns, as to form and
33 substance, shall be subject to the same requirements as
34 monthly returns.
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1 Notwithstanding any other provision in this Act
2 concerning the time within which a retailer may file his
3 return, in the case of any retailer who ceases to engage in a
4 kind of business which makes him responsible for filing
5 returns under this Act, such retailer shall file a final
6 return under this Act with the Department not more than one
7 month after discontinuing such business.
8 In addition, with respect to motor vehicles, watercraft,
9 aircraft, and trailers that are required to be registered
10 with an agency of this State, every retailer selling this
11 kind of tangible personal property shall file, with the
12 Department, upon a form to be prescribed and supplied by the
13 Department, a separate return for each such item of tangible
14 personal property which the retailer sells, except that
15 where, in the same transaction, a retailer of aircraft,
16 watercraft, motor vehicles or trailers transfers more than
17 one aircraft, watercraft, motor vehicle or trailer to another
18 aircraft, watercraft, motor vehicle or trailer retailer for
19 the purpose of resale, that seller for resale may report the
20 transfer of all the aircraft, watercraft, motor vehicles or
21 trailers involved in that transaction to the Department on
22 the same uniform invoice-transaction reporting return form.
23 For purposes of this Section, "watercraft" means a Class 2,
24 Class 3, or Class 4 watercraft as defined in Section 3-2 of
25 the Boat Registration and Safety Act, a personal watercraft,
26 or any boat equipped with an inboard motor.
27 The transaction reporting return in the case of motor
28 vehicles or trailers that are required to be registered with
29 an agency of this State, shall be the same document as the
30 Uniform Invoice referred to in Section 5-402 of the Illinois
31 Vehicle Code and must show the name and address of the
32 seller; the name and address of the purchaser; the amount of
33 the selling price including the amount allowed by the
34 retailer for traded-in property, if any; the amount allowed
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1 by the retailer for the traded-in tangible personal property,
2 if any, to the extent to which Section 2 of this Act allows
3 an exemption for the value of traded-in property; the balance
4 payable after deducting such trade-in allowance from the
5 total selling price; the amount of tax due from the retailer
6 with respect to such transaction; the amount of tax collected
7 from the purchaser by the retailer on such transaction (or
8 satisfactory evidence that such tax is not due in that
9 particular instance, if that is claimed to be the fact); the
10 place and date of the sale; a sufficient identification of
11 the property sold; such other information as is required in
12 Section 5-402 of the Illinois Vehicle Code, and such other
13 information as the Department may reasonably require.
14 The transaction reporting return in the case of
15 watercraft and aircraft must show the name and address of the
16 seller; the name and address of the purchaser; the amount of
17 the selling price including the amount allowed by the
18 retailer for traded-in property, if any; the amount allowed
19 by the retailer for the traded-in tangible personal property,
20 if any, to the extent to which Section 2 of this Act allows
21 an exemption for the value of traded-in property; the balance
22 payable after deducting such trade-in allowance from the
23 total selling price; the amount of tax due from the retailer
24 with respect to such transaction; the amount of tax collected
25 from the purchaser by the retailer on such transaction (or
26 satisfactory evidence that such tax is not due in that
27 particular instance, if that is claimed to be the fact); the
28 place and date of the sale, a sufficient identification of
29 the property sold, and such other information as the
30 Department may reasonably require.
31 Such transaction reporting return shall be filed not
32 later than 20 days after the date of delivery of the item
33 that is being sold, but may be filed by the retailer at any
34 time sooner than that if he chooses to do so. The
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1 transaction reporting return and tax remittance or proof of
2 exemption from the tax that is imposed by this Act may be
3 transmitted to the Department by way of the State agency with
4 which, or State officer with whom, the tangible personal
5 property must be titled or registered (if titling or
6 registration is required) if the Department and such agency
7 or State officer determine that this procedure will expedite
8 the processing of applications for title or registration.
9 With each such transaction reporting return, the retailer
10 shall remit the proper amount of tax due (or shall submit
11 satisfactory evidence that the sale is not taxable if that is
12 the case), to the Department or its agents, whereupon the
13 Department shall issue, in the purchaser's name, a tax
14 receipt (or a certificate of exemption if the Department is
15 satisfied that the particular sale is tax exempt) which such
16 purchaser may submit to the agency with which, or State
17 officer with whom, he must title or register the tangible
18 personal property that is involved (if titling or
19 registration is required) in support of such purchaser's
20 application for an Illinois certificate or other evidence of
21 title or registration to such tangible personal property.
22 No retailer's failure or refusal to remit tax under this
23 Act precludes a user, who has paid the proper tax to the
24 retailer, from obtaining his certificate of title or other
25 evidence of title or registration (if titling or registration
26 is required) upon satisfying the Department that such user
27 has paid the proper tax (if tax is due) to the retailer. The
28 Department shall adopt appropriate rules to carry out the
29 mandate of this paragraph.
30 If the user who would otherwise pay tax to the retailer
31 wants the transaction reporting return filed and the payment
32 of tax or proof of exemption made to the Department before
33 the retailer is willing to take these actions and such user
34 has not paid the tax to the retailer, such user may certify
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1 to the fact of such delay by the retailer, and may (upon the
2 Department being satisfied of the truth of such
3 certification) transmit the information required by the
4 transaction reporting return and the remittance for tax or
5 proof of exemption directly to the Department and obtain his
6 tax receipt or exemption determination, in which event the
7 transaction reporting return and tax remittance (if a tax
8 payment was required) shall be credited by the Department to
9 the proper retailer's account with the Department, but
10 without the 2.1% or 1.75% discount provided for in this
11 Section being allowed. When the user pays the tax directly
12 to the Department, he shall pay the tax in the same amount
13 and in the same form in which it would be remitted if the tax
14 had been remitted to the Department by the retailer.
15 Where a retailer collects the tax with respect to the
16 selling price of tangible personal property which he sells
17 and the purchaser thereafter returns such tangible personal
18 property and the retailer refunds the selling price thereof
19 to the purchaser, such retailer shall also refund, to the
20 purchaser, the tax so collected from the purchaser. When
21 filing his return for the period in which he refunds such tax
22 to the purchaser, the retailer may deduct the amount of the
23 tax so refunded by him to the purchaser from any other use
24 tax which such retailer may be required to pay or remit to
25 the Department, as shown by such return, if the amount of the
26 tax to be deducted was previously remitted to the Department
27 by such retailer. If the retailer has not previously
28 remitted the amount of such tax to the Department, he is
29 entitled to no deduction under this Act upon refunding such
30 tax to the purchaser.
31 Any retailer filing a return under this Section shall
32 also include (for the purpose of paying tax thereon) the
33 total tax covered by such return upon the selling price of
34 tangible personal property purchased by him at retail from a
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1 retailer, but as to which the tax imposed by this Act was not
2 collected from the retailer filing such return, and such
3 retailer shall remit the amount of such tax to the Department
4 when filing such return.
5 If experience indicates such action to be practicable,
6 the Department may prescribe and furnish a combination or
7 joint return which will enable retailers, who are required to
8 file returns hereunder and also under the Retailers'
9 Occupation Tax Act, to furnish all the return information
10 required by both Acts on the one form.
11 Where the retailer has more than one business registered
12 with the Department under separate registration under this
13 Act, such retailer may not file each return that is due as a
14 single return covering all such registered businesses, but
15 shall file separate returns for each such registered
16 business.
17 Beginning January 1, 1990, each month the Department
18 shall pay into the State and Local Sales Tax Reform Fund, a
19 special fund in the State Treasury which is hereby created,
20 the net revenue realized for the preceding month from the 1%
21 tax on sales of food for human consumption which is to be
22 consumed off the premises where it is sold (other than
23 alcoholic beverages, soft drinks and food which has been
24 prepared for immediate consumption) and prescription and
25 nonprescription medicines, drugs, medical appliances and
26 insulin, urine testing materials, syringes and needles used
27 by diabetics.
28 Beginning January 1, 1990, each month the Department
29 shall pay into the County and Mass Transit District Fund 4%
30 of the net revenue realized for the preceding month from the
31 6.25% general rate on the selling price of tangible personal
32 property which is purchased outside Illinois at retail from a
33 retailer and which is titled or registered by an agency of
34 this State's government.
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1 Beginning January 1, 1990, each month the Department
2 shall pay into the State and Local Sales Tax Reform Fund, a
3 special fund in the State Treasury, 20% of the net revenue
4 realized for the preceding month from the 6.25% general rate
5 on the selling price of tangible personal property, other
6 than tangible personal property which is purchased outside
7 Illinois at retail from a retailer and which is titled or
8 registered by an agency of this State's government.
9 Beginning November 1, 1998, and so long as the rate
10 remains at 1.25%, each month the Department shall pay into
11 the County and Mass Transit District Fund 20% of the net
12 revenue realized for the preceding month from the 1.25% rate
13 on the selling price of motor fuel and gasohol.
14 Beginning January 1, 1990, each month the Department
15 shall pay into the Local Government Tax Fund 16% of the net
16 revenue realized for the preceding month from the 6.25%
17 general rate on the selling price of tangible personal
18 property which is purchased outside Illinois at retail from a
19 retailer and which is titled or registered by an agency of
20 this State's government.
21 Beginning November 1, 1998, and so long as the rate
22 remains at 1.25%, each month the Department shall pay into
23 the Local Government Tax Fund 80% of the net revenue realized
24 for the preceding month from the 1.25% rate on the selling
25 price of motor fuel and gasohol.
26 Of the remainder of the moneys received by the Department
27 pursuant to this Act, (a) 1.75% thereof shall be paid into
28 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
29 and on and after July 1, 1989, 3.8% thereof shall be paid
30 into the Build Illinois Fund; provided, however, that if in
31 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
32 as the case may be, of the moneys received by the Department
33 and required to be paid into the Build Illinois Fund pursuant
34 to Section 3 of the Retailers' Occupation Tax Act, Section 9
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1 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
2 Section 9 of the Service Occupation Tax Act, such Acts being
3 hereinafter called the "Tax Acts" and such aggregate of 2.2%
4 or 3.8%, as the case may be, of moneys being hereinafter
5 called the "Tax Act Amount", and (2) the amount transferred
6 to the Build Illinois Fund from the State and Local Sales Tax
7 Reform Fund shall be less than the Annual Specified Amount
8 (as defined in Section 3 of the Retailers' Occupation Tax
9 Act), an amount equal to the difference shall be immediately
10 paid into the Build Illinois Fund from other moneys received
11 by the Department pursuant to the Tax Acts; and further
12 provided, that if on the last business day of any month the
13 sum of (1) the Tax Act Amount required to be deposited into
14 the Build Illinois Bond Account in the Build Illinois Fund
15 during such month and (2) the amount transferred during such
16 month to the Build Illinois Fund from the State and Local
17 Sales Tax Reform Fund shall have been less than 1/12 of the
18 Annual Specified Amount, an amount equal to the difference
19 shall be immediately paid into the Build Illinois Fund from
20 other moneys received by the Department pursuant to the Tax
21 Acts; and, further provided, that in no event shall the
22 payments required under the preceding proviso result in
23 aggregate payments into the Build Illinois Fund pursuant to
24 this clause (b) for any fiscal year in excess of the greater
25 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
26 for such fiscal year; and, further provided, that the amounts
27 payable into the Build Illinois Fund under this clause (b)
28 shall be payable only until such time as the aggregate amount
29 on deposit under each trust indenture securing Bonds issued
30 and outstanding pursuant to the Build Illinois Bond Act is
31 sufficient, taking into account any future investment income,
32 to fully provide, in accordance with such indenture, for the
33 defeasance of or the payment of the principal of, premium, if
34 any, and interest on the Bonds secured by such indenture and
SB1458 Engrossed -17- LRB9011307KDbd
1 on any Bonds expected to be issued thereafter and all fees
2 and costs payable with respect thereto, all as certified by
3 the Director of the Bureau of the Budget. If on the last
4 business day of any month in which Bonds are outstanding
5 pursuant to the Build Illinois Bond Act, the aggregate of the
6 moneys deposited in the Build Illinois Bond Account in the
7 Build Illinois Fund in such month shall be less than the
8 amount required to be transferred in such month from the
9 Build Illinois Bond Account to the Build Illinois Bond
10 Retirement and Interest Fund pursuant to Section 13 of the
11 Build Illinois Bond Act, an amount equal to such deficiency
12 shall be immediately paid from other moneys received by the
13 Department pursuant to the Tax Acts to the Build Illinois
14 Fund; provided, however, that any amounts paid to the Build
15 Illinois Fund in any fiscal year pursuant to this sentence
16 shall be deemed to constitute payments pursuant to clause (b)
17 of the preceding sentence and shall reduce the amount
18 otherwise payable for such fiscal year pursuant to clause (b)
19 of the preceding sentence. The moneys received by the
20 Department pursuant to this Act and required to be deposited
21 into the Build Illinois Fund are subject to the pledge, claim
22 and charge set forth in Section 12 of the Build Illinois Bond
23 Act.
24 Subject to payment of amounts into the Build Illinois
25 Fund as provided in the preceding paragraph or in any
26 amendment thereto hereafter enacted, the following specified
27 monthly installment of the amount requested in the
28 certificate of the Chairman of the Metropolitan Pier and
29 Exposition Authority provided under Section 8.25f of the
30 State Finance Act, but not in excess of the sums designated
31 as "Total Deposit", shall be deposited in the aggregate from
32 collections under Section 9 of the Use Tax Act, Section 9 of
33 the Service Use Tax Act, Section 9 of the Service Occupation
34 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
SB1458 Engrossed -18- LRB9011307KDbd
1 into the McCormick Place Expansion Project Fund in the
2 specified fiscal years.
3 Fiscal Year Total Deposit
4 1993 $0
5 1994 53,000,000
6 1995 58,000,000
7 1996 61,000,000
8 1997 64,000,000
9 1998 68,000,000
10 1999 71,000,000
11 2000 75,000,000
12 2001 80,000,000
13 2002 84,000,000
14 2003 89,000,000
15 2004 and 93,000,000
16 each fiscal year
17 thereafter that bonds
18 are outstanding under
19 Section 13.2 of the
20 Metropolitan Pier and
21 Exposition Authority
22 Act.
23 Beginning July 20, 1993 and in each month of each fiscal
24 year thereafter, one-eighth of the amount requested in the
25 certificate of the Chairman of the Metropolitan Pier and
26 Exposition Authority for that fiscal year, less the amount
27 deposited into the McCormick Place Expansion Project Fund by
28 the State Treasurer in the respective month under subsection
29 (g) of Section 13 of the Metropolitan Pier and Exposition
30 Authority Act, plus cumulative deficiencies in the deposits
31 required under this Section for previous months and years,
32 shall be deposited into the McCormick Place Expansion Project
33 Fund, until the full amount requested for the fiscal year,
34 but not in excess of the amount specified above as "Total
SB1458 Engrossed -19- LRB9011307KDbd
1 Deposit", has been deposited.
2 Subject to payment of amounts into the Build Illinois
3 Fund and the McCormick Place Expansion Project Fund pursuant
4 to the preceding paragraphs or in any amendment thereto
5 hereafter enacted, each month the Department shall pay into
6 the Local Government Distributive Fund .4% of the net revenue
7 realized for the preceding month from the 5% general rate, or
8 .4% of 80% of the net revenue realized for the preceding
9 month from the 6.25% general rate, as the case may be, on the
10 selling price of tangible personal property which amount
11 shall, subject to appropriation, be distributed as provided
12 in Section 2 of the State Revenue Sharing Act. No payments or
13 distributions pursuant to this paragraph shall be made if the
14 tax imposed by this Act on photoprocessing products is
15 declared unconstitutional, or if the proceeds from such tax
16 are unavailable for distribution because of litigation.
17 Subject to payment of amounts into the Build Illinois
18 Fund, the McCormick Place Expansion Project Fund, and the
19 Local Government Distributive Fund pursuant to the preceding
20 paragraphs or in any amendments thereto hereafter enacted,
21 beginning July 1, 1993, the Department shall each month pay
22 into the Illinois Tax Increment Fund 0.27% of 80% of the net
23 revenue realized for the preceding month from the 6.25%
24 general rate on the selling price of tangible personal
25 property.
26 Of the remainder of the moneys received by the Department
27 pursuant to this Act, 75% thereof shall be paid into the
28 State Treasury and 25% shall be reserved in a special account
29 and used only for the transfer to the Common School Fund as
30 part of the monthly transfer from the General Revenue Fund in
31 accordance with Section 8a of the State Finance Act.
32 As soon as possible after the first day of each month,
33 upon certification of the Department of Revenue, the
34 Comptroller shall order transferred and the Treasurer shall
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1 transfer from the General Revenue Fund to the Motor Fuel Tax
2 Fund an amount equal to 1.7% of 80% of the net revenue
3 realized under this Act for the second preceding month;
4 except that this transfer shall not be made for the months
5 February through June of 1992.
6 Net revenue realized for a month shall be the revenue
7 collected by the State pursuant to this Act, less the amount
8 paid out during that month as refunds to taxpayers for
9 overpayment of liability.
10 For greater simplicity of administration, manufacturers,
11 importers and wholesalers whose products are sold at retail
12 in Illinois by numerous retailers, and who wish to do so, may
13 assume the responsibility for accounting and paying to the
14 Department all tax accruing under this Act with respect to
15 such sales, if the retailers who are affected do not make
16 written objection to the Department to this arrangement.
17 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
18 (Text of Section after amendment by P.A. 90-491)
19 Sec. 9. Except as to motor vehicles, watercraft,
20 aircraft, and trailers that are required to be registered
21 with an agency of this State, each retailer required or
22 authorized to collect the tax imposed by this Act shall pay
23 to the Department the amount of such tax (except as otherwise
24 provided) at the time when he is required to file his return
25 for the period during which such tax was collected, less a
26 discount of 2.1% prior to January 1, 1990, and 1.75% on and
27 after January 1, 1990, or $5 per calendar year, whichever is
28 greater, which is allowed to reimburse the retailer for
29 expenses incurred in collecting the tax, keeping records,
30 preparing and filing returns, remitting the tax and supplying
31 data to the Department on request. In the case of retailers
32 who report and pay the tax on a transaction by transaction
33 basis, as provided in this Section, such discount shall be
34 taken with each such tax remittance instead of when such
SB1458 Engrossed -21- LRB9011307KDbd
1 retailer files his periodic return. A retailer need not
2 remit that part of any tax collected by him to the extent
3 that he is required to remit and does remit the tax imposed
4 by the Retailers' Occupation Tax Act, with respect to the
5 sale of the same property.
6 Where such tangible personal property is sold under a
7 conditional sales contract, or under any other form of sale
8 wherein the payment of the principal sum, or a part thereof,
9 is extended beyond the close of the period for which the
10 return is filed, the retailer, in collecting the tax (except
11 as to motor vehicles, watercraft, aircraft, and trailers that
12 are required to be registered with an agency of this State),
13 may collect for each tax return period, only the tax
14 applicable to that part of the selling price actually
15 received during such tax return period.
16 Except as provided in this Section, on or before the
17 twentieth day of each calendar month, such retailer shall
18 file a return for the preceding calendar month. Such return
19 shall be filed on forms prescribed by the Department and
20 shall furnish such information as the Department may
21 reasonably require.
22 The Department may require returns to be filed on a
23 quarterly basis. If so required, a return for each calendar
24 quarter shall be filed on or before the twentieth day of the
25 calendar month following the end of such calendar quarter.
26 The taxpayer shall also file a return with the Department for
27 each of the first two months of each calendar quarter, on or
28 before the twentieth day of the following calendar month,
29 stating:
30 1. The name of the seller;
31 2. The address of the principal place of business
32 from which he engages in the business of selling tangible
33 personal property at retail in this State;
34 3. The total amount of taxable receipts received by
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1 him during the preceding calendar month from sales of
2 tangible personal property by him during such preceding
3 calendar month, including receipts from charge and time
4 sales, but less all 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 has
19 an average monthly tax liability of $100,000 or more shall
20 make all payments required by rules of the Department by
21 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
SB1458 Engrossed -23- LRB9011307KDbd
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 taxpayer's average monthly tax liability to the
13 Department under this Act, the Retailers' Occupation Tax Act,
14 the Service Occupation Tax Act, the Service Use Tax Act was
15 $10,000 or more during the preceding 4 complete calendar
16 quarters, he shall file a return with the Department each
17 month by the 20th day of the month next following the month
18 during which such tax liability is incurred and shall make
19 payments to the Department on or before the 7th, 15th, 22nd
20 and last day of the month during which such liability is
21 incurred. If the month during which such tax liability is
22 incurred began prior to January 1, 1985, each payment shall
23 be in an amount equal to 1/4 of the taxpayer's actual
24 liability for the month or an amount set by the Department
25 not to exceed 1/4 of the average monthly liability of the
26 taxpayer to the Department for the preceding 4 complete
27 calendar quarters (excluding the month of highest liability
28 and the month of lowest liability in such 4 quarter period).
29 If the month during which such tax liability is incurred
30 begins on or after January 1, 1985, and prior to January 1,
31 1987, each payment shall be in an amount equal to 22.5% of
32 the taxpayer's actual liability for the month or 27.5% of the
33 taxpayer's liability for the same calendar month of the
34 preceding year. If the month during which such tax liability
SB1458 Engrossed -24- LRB9011307KDbd
1 is incurred begins on or after January 1, 1987, and prior to
2 January 1, 1988, each payment shall be in an amount equal to
3 22.5% of the taxpayer's actual liability for the month or
4 26.25% of the taxpayer's liability for the same calendar
5 month of the preceding year. If the month during which such
6 tax liability is incurred begins on or after January 1, 1988,
7 and prior to January 1, 1989, or begins on or after January
8 1, 1996, each payment shall be in an amount equal to 22.5% of
9 the taxpayer's actual liability for the month or 25% of the
10 taxpayer's liability for the same calendar month of the
11 preceding year. If the month during which such tax liability
12 is incurred begins on or after January 1, 1989, and prior to
13 January 1, 1996, each payment shall be in an amount equal to
14 22.5% of the taxpayer's actual liability for the month or 25%
15 of the taxpayer's liability for the same calendar month of
16 the preceding year or 100% of the taxpayer's actual liability
17 for the quarter monthly reporting period. The amount of such
18 quarter monthly payments shall be credited against the final
19 tax liability of the taxpayer's return for that month. Once
20 applicable, the requirement of the making of quarter monthly
21 payments to the Department shall continue until such
22 taxpayer's average monthly liability to the Department during
23 the preceding 4 complete calendar quarters (excluding the
24 month of highest liability and the month of lowest liability)
25 is less than $9,000, or until such taxpayer's average monthly
26 liability to the Department as computed for each calendar
27 quarter of the 4 preceding complete calendar quarter period
28 is less than $10,000. However, if a taxpayer can show the
29 Department that a substantial change in the taxpayer's
30 business has occurred which causes the taxpayer to anticipate
31 that his average monthly tax liability for the reasonably
32 foreseeable future will fall below $10,000, then such
33 taxpayer may petition the Department for change in such
34 taxpayer's reporting status. The Department shall change
SB1458 Engrossed -25- LRB9011307KDbd
1 such taxpayer's reporting status unless it finds that such
2 change is seasonal in nature and not likely to be long term.
3 If any such quarter monthly payment is not paid at the time
4 or in the amount required by this Section, then the taxpayer
5 shall be liable for penalties and interest on the difference
6 between the minimum amount due and the amount of such quarter
7 monthly payment actually and timely paid, except insofar as
8 the taxpayer has previously made payments for that month to
9 the Department in excess of the minimum payments previously
10 due as provided in this Section. The Department shall make
11 reasonable rules and regulations to govern the quarter
12 monthly payment amount and quarter monthly payment dates for
13 taxpayers who file on other than a calendar monthly basis.
14 If any such payment provided for in this Section exceeds
15 the taxpayer's liabilities under this Act, the Retailers'
16 Occupation Tax Act, the Service Occupation Tax Act and the
17 Service Use Tax Act, as shown by an original monthly return,
18 the Department shall issue to the taxpayer a credit
19 memorandum no later than 30 days after the date of payment,
20 which memorandum may be submitted by the taxpayer to the
21 Department in payment of tax liability subsequently to be
22 remitted by the taxpayer to the Department or be assigned by
23 the taxpayer to a similar taxpayer under this Act, the
24 Retailers' Occupation Tax Act, the Service Occupation Tax Act
25 or the Service Use Tax Act, in accordance with reasonable
26 rules and regulations to be prescribed by the Department,
27 except that if such excess payment is shown on an original
28 monthly return and is made after December 31, 1986, no credit
29 memorandum shall be issued, unless requested by the taxpayer.
30 If no such request is made, the taxpayer may credit such
31 excess payment against tax liability subsequently to be
32 remitted by the taxpayer to the Department under this Act,
33 the Retailers' Occupation Tax Act, the Service Occupation Tax
34 Act or the Service Use Tax Act, in accordance with reasonable
SB1458 Engrossed -26- LRB9011307KDbd
1 rules and regulations prescribed by the Department. If the
2 Department subsequently determines that all or any part of
3 the credit taken was not actually due to the taxpayer, the
4 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
5 by 2.1% or 1.75% of the difference between the credit taken
6 and that actually due, and the taxpayer shall be liable for
7 penalties and interest on such difference.
8 If the retailer is otherwise required to file a monthly
9 return and if the retailer's average monthly tax liability to
10 the Department does not exceed $200, the Department may
11 authorize his returns to be filed on a quarter annual basis,
12 with the return for January, February, and March of a given
13 year being due by April 20 of such year; with the return for
14 April, May and June of a given year being due by July 20 of
15 such year; with the return for July, August and September of
16 a given year being due by October 20 of such year, and with
17 the return for October, November and December of a given year
18 being due by January 20 of the following year.
19 If the retailer is otherwise required to file a monthly
20 or quarterly return and if the retailer's average monthly tax
21 liability to the Department does not exceed $50, the
22 Department may authorize his returns to be filed on an annual
23 basis, with the return for a given year being due by January
24 20 of the following year.
25 Such quarter annual and annual returns, as to form and
26 substance, shall be subject to the same requirements as
27 monthly returns.
28 Notwithstanding any other provision in this Act
29 concerning the time within which a retailer may file his
30 return, in the case of any retailer who ceases to engage in a
31 kind of business which makes him responsible for filing
32 returns under this Act, such retailer shall file a final
33 return under this Act with the Department not more than one
34 month after discontinuing such business.
SB1458 Engrossed -27- LRB9011307KDbd
1 In addition, with respect to motor vehicles, watercraft,
2 aircraft, and trailers that are required to be registered
3 with an agency of this State, every retailer selling this
4 kind of tangible personal property shall file, with the
5 Department, upon a form to be prescribed and supplied by the
6 Department, a separate return for each such item of tangible
7 personal property which the retailer sells, except that
8 where, in the same transaction, a retailer of aircraft,
9 watercraft, motor vehicles or trailers transfers more than
10 one aircraft, watercraft, motor vehicle or trailer to another
11 aircraft, watercraft, motor vehicle or trailer retailer for
12 the purpose of resale, that seller for resale may report the
13 transfer of all the aircraft, watercraft, motor vehicles or
14 trailers involved in that transaction to the Department on
15 the same uniform invoice-transaction reporting return form.
16 For purposes of this Section, "watercraft" means a Class 2,
17 Class 3, or Class 4 watercraft as defined in Section 3-2 of
18 the Boat Registration and Safety Act, a personal watercraft,
19 or any boat equipped with an inboard motor.
20 The transaction reporting return in the case of motor
21 vehicles or trailers that are required to be registered with
22 an agency of this State, shall be the same document as the
23 Uniform Invoice referred to in Section 5-402 of the Illinois
24 Vehicle Code and must show the name and address of the
25 seller; the name and address of the purchaser; the amount of
26 the selling price including the amount allowed by the
27 retailer for traded-in property, if any; the amount allowed
28 by the retailer for the traded-in tangible personal property,
29 if any, to the extent to which Section 2 of this Act allows
30 an exemption for the value of traded-in property; the balance
31 payable after deducting such trade-in allowance from the
32 total selling price; the amount of tax due from the retailer
33 with respect to such transaction; the amount of tax collected
34 from the purchaser by the retailer on such transaction (or
SB1458 Engrossed -28- LRB9011307KDbd
1 satisfactory evidence that such tax is not due in that
2 particular instance, if that is claimed to be the fact); the
3 place and date of the sale; a sufficient identification of
4 the property sold; such other information as is required in
5 Section 5-402 of the Illinois Vehicle Code, and such other
6 information as the Department may reasonably require.
7 The transaction reporting return in the case of
8 watercraft and aircraft must show the name and address of the
9 seller; the name and address of the purchaser; the amount of
10 the selling price including the amount allowed by the
11 retailer for traded-in property, if any; the amount allowed
12 by the retailer for the traded-in tangible personal property,
13 if any, to the extent to which Section 2 of this Act allows
14 an exemption for the value of traded-in property; the balance
15 payable after deducting such trade-in allowance from the
16 total selling price; the amount of tax due from the retailer
17 with respect to such transaction; the amount of tax collected
18 from the purchaser by the retailer on such transaction (or
19 satisfactory evidence that such tax is not due in that
20 particular instance, if that is claimed to be the fact); the
21 place and date of the sale, a sufficient identification of
22 the property sold, and such other information as the
23 Department may reasonably require.
24 Such transaction reporting return shall be filed not
25 later than 20 days after the date of delivery of the item
26 that is being sold, but may be filed by the retailer at any
27 time sooner than that if he chooses to do so. The
28 transaction reporting return and tax remittance or proof of
29 exemption from the tax that is imposed by this Act may be
30 transmitted to the Department by way of the State agency with
31 which, or State officer with whom, the tangible personal
32 property must be titled or registered (if titling or
33 registration is required) if the Department and such agency
34 or State officer determine that this procedure will expedite
SB1458 Engrossed -29- LRB9011307KDbd
1 the processing of applications for title or registration.
2 With each such transaction reporting return, the retailer
3 shall remit the proper amount of tax due (or shall submit
4 satisfactory evidence that the sale is not taxable if that is
5 the case), to the Department or its agents, whereupon the
6 Department shall issue, in the purchaser's name, a tax
7 receipt (or a certificate of exemption if the Department is
8 satisfied that the particular sale is tax exempt) which such
9 purchaser may submit to the agency with which, or State
10 officer with whom, he must title or register the tangible
11 personal property that is involved (if titling or
12 registration is required) in support of such purchaser's
13 application for an Illinois certificate or other evidence of
14 title or registration to such tangible personal property.
15 No retailer's failure or refusal to remit tax under this
16 Act precludes a user, who has paid the proper tax to the
17 retailer, from obtaining his certificate of title or other
18 evidence of title or registration (if titling or registration
19 is required) upon satisfying the Department that such user
20 has paid the proper tax (if tax is due) to the retailer. The
21 Department shall adopt appropriate rules to carry out the
22 mandate of this paragraph.
23 If the user who would otherwise pay tax to the retailer
24 wants the transaction reporting return filed and the payment
25 of tax or proof of exemption made to the Department before
26 the retailer is willing to take these actions and such user
27 has not paid the tax to the retailer, such user may certify
28 to the fact of such delay by the retailer, and may (upon the
29 Department being satisfied of the truth of such
30 certification) transmit the information required by the
31 transaction reporting return and the remittance for tax or
32 proof of exemption directly to the Department and obtain his
33 tax receipt or exemption determination, in which event the
34 transaction reporting return and tax remittance (if a tax
SB1458 Engrossed -30- LRB9011307KDbd
1 payment was required) shall be credited by the Department to
2 the proper retailer's account with the Department, but
3 without the 2.1% or 1.75% discount provided for in this
4 Section being allowed. When the user pays the tax directly
5 to the Department, he shall pay the tax in the same amount
6 and in the same form in which it would be remitted if the tax
7 had been remitted to the Department by the retailer.
8 Where a retailer collects the tax with respect to the
9 selling price of tangible personal property which he sells
10 and the purchaser thereafter returns such tangible personal
11 property and the retailer refunds the selling price thereof
12 to the purchaser, such retailer shall also refund, to the
13 purchaser, the tax so collected from the purchaser. When
14 filing his return for the period in which he refunds such tax
15 to the purchaser, the retailer may deduct the amount of the
16 tax so refunded by him to the purchaser from any other use
17 tax which such retailer may be required to pay or remit to
18 the Department, as shown by such return, if the amount of the
19 tax to be deducted was previously remitted to the Department
20 by such retailer. If the retailer has not previously
21 remitted the amount of such tax to the Department, he is
22 entitled to no deduction under this Act upon refunding such
23 tax to the purchaser.
24 Any retailer filing a return under this Section shall
25 also include (for the purpose of paying tax thereon) the
26 total tax covered by such return upon the selling price of
27 tangible personal property purchased by him at retail from a
28 retailer, but as to which the tax imposed by this Act was not
29 collected from the retailer filing such return, and such
30 retailer shall remit the amount of such tax to the Department
31 when filing such return.
32 If experience indicates such action to be practicable,
33 the Department may prescribe and furnish a combination or
34 joint return which will enable retailers, who are required to
SB1458 Engrossed -31- LRB9011307KDbd
1 file returns hereunder and also under the Retailers'
2 Occupation Tax Act, to furnish all the return information
3 required by both Acts on the one form.
4 Where the retailer has more than one business registered
5 with the Department under separate registration under this
6 Act, such retailer may not file each return that is due as a
7 single return covering all such registered businesses, but
8 shall file separate returns for each such registered
9 business.
10 Beginning January 1, 1990, each month the Department
11 shall pay into the State and Local Sales Tax Reform Fund, a
12 special fund in the State Treasury which is hereby created,
13 the net revenue realized for the preceding month from the 1%
14 tax on sales of food for human consumption which is to be
15 consumed off the premises where it is sold (other than
16 alcoholic beverages, soft drinks and food which has been
17 prepared for immediate consumption) and prescription and
18 nonprescription medicines, drugs, medical appliances and
19 insulin, urine testing materials, syringes and needles used
20 by diabetics.
21 Beginning January 1, 1990, each month the Department
22 shall pay into the County and Mass Transit District Fund 4%
23 of the net revenue realized for the preceding month from the
24 6.25% general rate on the selling price of tangible personal
25 property which is purchased outside Illinois at retail from a
26 retailer and which is titled or registered by an agency of
27 this State's government.
28 Beginning January 1, 1990, each month the Department
29 shall pay into the State and Local Sales Tax Reform Fund, a
30 special fund in the State Treasury, 20% of the net revenue
31 realized for the preceding month from the 6.25% general rate
32 on the selling price of tangible personal property, other
33 than tangible personal property which is purchased outside
34 Illinois at retail from a retailer and which is titled or
SB1458 Engrossed -32- LRB9011307KDbd
1 registered by an agency of this State's government.
2 Beginning November 1, 1998, and so long as the rate
3 remains at 1.25%, each month the Department shall pay into
4 the County and Mass Transit District Fund 20% of the net
5 revenue realized for the preceding month from the 1.25% rate
6 on the selling price of motor fuel and gasohol.
7 Beginning January 1, 1990, each month the Department
8 shall pay into the Local Government Tax Fund 16% of the net
9 revenue realized for the preceding month from the 6.25%
10 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 November 1, 1998, and so long as the rate
15 remains at 1.25%, each month the Department shall pay into
16 the Local Government Tax Fund 80% of the net revenue realized
17 for the preceding month from the 1.25% rate on the selling
18 price of motor fuel and gasohol.
19 Of the remainder of the moneys received by the Department
20 pursuant to this Act, (a) 1.75% thereof shall be paid into
21 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
22 and on and after July 1, 1989, 3.8% thereof shall be paid
23 into the Build Illinois Fund; provided, however, that if in
24 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
25 as the case may be, of the moneys received by the Department
26 and required to be paid into the Build Illinois Fund pursuant
27 to Section 3 of the Retailers' Occupation Tax Act, Section 9
28 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
29 Section 9 of the Service Occupation Tax Act, such Acts being
30 hereinafter called the "Tax Acts" and such aggregate of 2.2%
31 or 3.8%, as the case may be, of moneys being hereinafter
32 called the "Tax Act Amount", and (2) the amount transferred
33 to the Build Illinois Fund from the State and Local Sales Tax
34 Reform Fund shall be less than the Annual Specified Amount
SB1458 Engrossed -33- LRB9011307KDbd
1 (as defined in Section 3 of the Retailers' Occupation Tax
2 Act), an amount equal to the difference shall be immediately
3 paid into the Build Illinois Fund from other moneys received
4 by the Department pursuant to the Tax Acts; and further
5 provided, that if on the last business day of any month the
6 sum of (1) the Tax Act Amount required to be deposited into
7 the Build Illinois Bond Account in the Build Illinois Fund
8 during such month and (2) the amount transferred during such
9 month to the Build Illinois Fund from the State and Local
10 Sales Tax Reform Fund shall have been less than 1/12 of the
11 Annual Specified Amount, an amount equal to the difference
12 shall be immediately paid into the Build Illinois Fund from
13 other moneys received by the Department pursuant to the Tax
14 Acts; and, further provided, that in no event shall the
15 payments required under the preceding proviso result in
16 aggregate payments into the Build Illinois Fund pursuant to
17 this clause (b) for any fiscal year in excess of the greater
18 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
19 for such fiscal year; and, further provided, that the amounts
20 payable into the Build Illinois Fund under this clause (b)
21 shall be payable only until such time as the aggregate amount
22 on deposit under each trust indenture securing Bonds issued
23 and outstanding pursuant to the Build Illinois Bond Act is
24 sufficient, taking into account any future investment income,
25 to fully provide, in accordance with such indenture, for the
26 defeasance of or the payment of the principal of, premium, if
27 any, and interest on the Bonds secured by such indenture and
28 on any Bonds expected to be issued thereafter and all fees
29 and costs payable with respect thereto, all as certified by
30 the Director of the Bureau of the Budget. If on the last
31 business day of any month in which Bonds are outstanding
32 pursuant to the Build Illinois Bond Act, the aggregate of the
33 moneys deposited in the Build Illinois Bond Account in the
34 Build Illinois Fund in such month shall be less than the
SB1458 Engrossed -34- LRB9011307KDbd
1 amount required to be transferred in such month from the
2 Build Illinois Bond Account to the Build Illinois Bond
3 Retirement and Interest Fund pursuant to Section 13 of the
4 Build Illinois Bond Act, an amount equal to such deficiency
5 shall be immediately paid from other moneys received by the
6 Department pursuant to the Tax Acts to the Build Illinois
7 Fund; provided, however, that any amounts paid to the Build
8 Illinois Fund in any fiscal year pursuant to this sentence
9 shall be deemed to constitute payments pursuant to clause (b)
10 of the preceding sentence and shall reduce the amount
11 otherwise payable for such fiscal year pursuant to clause (b)
12 of the preceding sentence. The moneys received by the
13 Department pursuant to this Act and required to be deposited
14 into the Build Illinois Fund are subject to the pledge, claim
15 and charge set forth in Section 12 of the Build Illinois Bond
16 Act.
17 Subject to payment of amounts into the Build Illinois
18 Fund as provided in the preceding paragraph or in any
19 amendment thereto hereafter enacted, the following specified
20 monthly installment of the amount requested in the
21 certificate of the Chairman of the Metropolitan Pier and
22 Exposition Authority provided under Section 8.25f of the
23 State Finance Act, but not in excess of the sums designated
24 as "Total Deposit", shall be deposited in the aggregate from
25 collections under Section 9 of the Use Tax Act, Section 9 of
26 the Service Use Tax Act, Section 9 of the Service Occupation
27 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
28 into the McCormick Place Expansion Project Fund in the
29 specified fiscal years.
30 Fiscal Year Total Deposit
31 1993 $0
32 1994 53,000,000
33 1995 58,000,000
34 1996 61,000,000
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1 1997 64,000,000
2 1998 68,000,000
3 1999 71,000,000
4 2000 75,000,000
5 2001 80,000,000
6 2002 84,000,000
7 2003 89,000,000
8 2004 and 93,000,000
9 each fiscal year
10 thereafter that bonds
11 are outstanding under
12 Section 13.2 of the
13 Metropolitan Pier and
14 Exposition Authority
15 Act.
16 Beginning July 20, 1993 and in each month of each fiscal
17 year thereafter, one-eighth of the amount requested in the
18 certificate of the Chairman of the Metropolitan Pier and
19 Exposition Authority for that fiscal year, less the amount
20 deposited into the McCormick Place Expansion Project Fund by
21 the State Treasurer in the respective month under subsection
22 (g) of Section 13 of the Metropolitan Pier and Exposition
23 Authority Act, plus cumulative deficiencies in the deposits
24 required under this Section for previous months and years,
25 shall be deposited into the McCormick Place Expansion Project
26 Fund, until the full amount requested for the fiscal year,
27 but not in excess of the amount specified above as "Total
28 Deposit", has been deposited.
29 Subject to payment of amounts into the Build Illinois
30 Fund and the McCormick Place Expansion Project Fund pursuant
31 to the preceding paragraphs or in any amendment thereto
32 hereafter enacted, each month the Department shall pay into
33 the Local Government Distributive Fund .4% of the net revenue
34 realized for the preceding month from the 5% general rate, or
SB1458 Engrossed -36- LRB9011307KDbd
1 .4% of 80% of the net revenue realized for the preceding
2 month from the 6.25% general rate, as the case may be, on the
3 selling price of tangible personal property which amount
4 shall, subject to appropriation, be distributed as provided
5 in Section 2 of the State Revenue Sharing Act. No payments or
6 distributions pursuant to this paragraph shall be made if the
7 tax imposed by this Act on photoprocessing products is
8 declared unconstitutional, or if the proceeds from such tax
9 are unavailable for distribution because of litigation.
10 Subject to payment of amounts into the Build Illinois
11 Fund, the McCormick Place Expansion Project Fund, and the
12 Local Government Distributive Fund pursuant to the preceding
13 paragraphs or in any amendments thereto hereafter enacted,
14 beginning July 1, 1993, the Department shall each month pay
15 into the Illinois Tax Increment Fund 0.27% of 80% of the net
16 revenue realized for the preceding month from the 6.25%
17 general rate on the selling price of tangible personal
18 property.
19 Of the remainder of the moneys received by the Department
20 pursuant to this Act, 75% thereof shall be paid into the
21 State Treasury and 25% shall be reserved in a special account
22 and used only for the transfer to the Common School Fund as
23 part of the monthly transfer from the General Revenue Fund in
24 accordance with Section 8a of the State Finance Act.
25 As soon as possible after the first day of each month,
26 upon certification of the Department of Revenue, the
27 Comptroller shall order transferred and the Treasurer shall
28 transfer from the General Revenue Fund to the Motor Fuel Tax
29 Fund an amount equal to 1.7% of 80% of the net revenue
30 realized under this Act for the second preceding month;
31 except that this transfer shall not be made for the months
32 February through June of 1992.
33 Net revenue realized for a month shall be the revenue
34 collected by the State pursuant to this Act, less the amount
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1 paid out during that month as refunds to taxpayers for
2 overpayment of liability.
3 For greater simplicity of administration, manufacturers,
4 importers and wholesalers whose products are sold at retail
5 in Illinois by numerous retailers, and who wish to do so, may
6 assume the responsibility for accounting and paying to the
7 Department all tax accruing under this Act with respect to
8 such sales, if the retailers who are affected do not make
9 written objection to the Department to this arrangement.
10 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
11 90-491, eff. 1-1-99.)
12 Section 10. The Service Use Tax Act is amended by
13 changing Sections 3-10 and 9 as follows:
14 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
15 Sec. 3-10. Rate of tax. Unless otherwise provided in
16 this Section, the tax imposed by this Act is at the rate of
17 6.25% of the selling price of tangible personal property
18 transferred as an incident to the sale of service, but, for
19 the purpose of computing this tax, in no event shall the
20 selling price be less than the cost price of the property to
21 the serviceman.
22 With respect to motor fuel, as defined in Section 1.1 of
23 the Motor Fuel Tax Law, and gasohol, as defined in Section
24 3-40 of the Use Tax Act, the tax is imposed at the rate of
25 1.25%. If, however, the aggregate tax revenues from motor
26 fuel and gasohol under the Use Tax Act, the Service Use Tax
27 Act, the Service Occupation Tax Act, and the Retailers'
28 Occupation Tax Act during the period from October 1, 2001
29 through September 30, 2002 are not at least 15% more than the
30 aggregate tax revenues from motor fuel and gasohol under
31 those Acts during the period from October 1, 1998 through
32 September 30, 1999, then beginning January 1, 2003 the tax is
SB1458 Engrossed -38- LRB9011307KDbd
1 imposed on motor fuel and gasohol at the 6.25% general rate.
2 With respect to gasohol, as defined in the Use Tax Act,
3 the tax imposed by this Act applies to 70% of the selling
4 price of property transferred as an incident to the sale of
5 service on or after January 1, 1990, and before July 1, 1999,
6 and to 100% of the selling price thereafter, except that from
7 July 1, 1997 to July 1, 1999, the rate shall be 85% for
8 gasohol sold in this State during the 12 months beginning
9 July 1 following any calendar year for which the Department
10 has determined that the percentages in Section 10 of the
11 Gasohol Fuels Tax Abatement Act have not been met.
12 At the election of any registered serviceman made for
13 each fiscal year, sales of service in which the aggregate
14 annual cost price of tangible personal property transferred
15 as an incident to the sales of service is less than 35%, or
16 75% in the case of servicemen transferring prescription drugs
17 or servicemen engaged in graphic arts production, of the
18 aggregate annual total gross receipts from all sales of
19 service, the tax imposed by this Act shall be based on the
20 serviceman's cost price of the tangible personal property
21 transferred as an incident to the sale of those services.
22 The tax shall be imposed at the rate of 1% on food
23 prepared for immediate consumption and transferred incident
24 to a sale of service subject to this Act or the Service
25 Occupation Tax Act by an entity licensed under the Hospital
26 Licensing Act or the Nursing Home Care Act. The tax shall
27 also be imposed at the rate of 1% on food for human
28 consumption that is to be consumed off the premises where it
29 is sold (other than alcoholic beverages, soft drinks, and
30 food that has been prepared for immediate consumption and is
31 not otherwise included in this paragraph) and prescription
32 and nonprescription medicines, drugs, medical appliances,
33 modifications to a motor vehicle for the purpose of rendering
34 it usable by a disabled person, and insulin, urine testing
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1 materials, syringes, and needles used by diabetics, for human
2 use. For the purposes of this Section, the term "soft drinks"
3 means any complete, finished, ready-to-use, non-alcoholic
4 drink, whether carbonated or not, including but not limited
5 to soda water, cola, fruit juice, vegetable juice, carbonated
6 water, and all other preparations commonly known as soft
7 drinks of whatever kind or description that are contained in
8 any closed or sealed bottle, can, carton, or container,
9 regardless of size. "Soft drinks" does not include coffee,
10 tea, non-carbonated water, infant formula, milk or milk
11 products as defined in the Grade A Pasteurized Milk and Milk
12 Products Act, or drinks containing 50% or more natural fruit
13 or vegetable juice.
14 Notwithstanding any other provisions of this Act, "food
15 for human consumption that is to be consumed off the premises
16 where it is sold" includes all food sold through a vending
17 machine, except soft drinks and food products that are
18 dispensed hot from a vending machine, regardless of the
19 location of the vending machine.
20 If the property that is acquired from a serviceman is
21 acquired outside Illinois and used outside Illinois before
22 being brought to Illinois for use here and is taxable under
23 this Act, the "selling price" on which the tax is computed
24 shall be reduced by an amount that represents a reasonable
25 allowance for depreciation for the period of prior
26 out-of-state use.
27 (Source: P.A. 88-45; 89-359, eff. 8-17-95; 89-420, eff.
28 6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
29 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
30 Sec. 9. Each serviceman required or authorized to
31 collect the tax herein imposed shall pay to the Department
32 the amount of such tax (except as otherwise provided) at the
33 time when he is required to file his return for the period
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1 during which such tax was collected, less a discount of 2.1%
2 prior to January 1, 1990 and 1.75% on and after January 1,
3 1990, or $5 per calendar year, whichever is greater, which is
4 allowed to reimburse the serviceman for expenses incurred in
5 collecting the tax, keeping records, preparing and filing
6 returns, remitting the tax and supplying data to the
7 Department on request. A serviceman need not remit that part
8 of any tax collected by him to the extent that he is required
9 to pay and does pay the tax imposed by the Service Occupation
10 Tax Act with respect to his sale of service involving the
11 incidental transfer by him of the same property.
12 Except as provided hereinafter in this Section, on or
13 before the twentieth day of each calendar month, such
14 serviceman shall file a return for the preceding calendar
15 month in accordance with reasonable Rules and Regulations to
16 be promulgated by the Department. Such return shall be filed
17 on a form prescribed by the Department and shall contain such
18 information as the Department may reasonably require.
19 The Department may require returns to be filed on a
20 quarterly basis. If so required, a return for each calendar
21 quarter shall be filed on or before the twentieth day of the
22 calendar month following the end of such calendar quarter.
23 The taxpayer shall also file a return with the Department for
24 each of the first two months of each calendar quarter, on or
25 before the twentieth day of the following calendar month,
26 stating:
27 1. The name of the seller;
28 2. The address of the principal place of business
29 from which he engages in business as a serviceman in this
30 State;
31 3. The total amount of taxable receipts received by
32 him during the preceding calendar month, including
33 receipts from charge and time sales, but less all
34 deductions allowed by law;
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1 4. The amount of credit provided in Section 2d of
2 this Act;
3 5. The amount of tax due;
4 5-5. The signature of the taxpayer; and
5 6. Such other reasonable information as the
6 Department may require.
7 If a taxpayer fails to sign a return within 30 days after
8 the proper notice and demand for signature by the Department,
9 the return shall be considered valid and any amount shown to
10 be due on the return shall be deemed assessed.
11 Beginning October 1, 1993, a taxpayer who has an average
12 monthly tax liability of $150,000 or more shall make all
13 payments required by rules of the Department by electronic
14 funds transfer. Beginning October 1, 1994, a taxpayer who
15 has an average monthly tax liability of $100,000 or more
16 shall make all payments required by rules of the Department
17 by electronic funds transfer. Beginning October 1, 1995, a
18 taxpayer who has an average monthly tax liability of $50,000
19 or more shall make all payments required by rules of the
20 Department by electronic funds transfer. The term "average
21 monthly tax liability" means the sum of the taxpayer's
22 liabilities under this Act, and under all other State and
23 local occupation and use tax laws administered by the
24 Department, for the immediately preceding calendar year
25 divided by 12.
26 Before August 1 of each year beginning in 1993, the
27 Department shall notify all taxpayers required to make
28 payments by electronic funds transfer. All taxpayers required
29 to make payments by electronic funds transfer shall make
30 those payments for a minimum of one year beginning on October
31 1.
32 Any taxpayer not required to make payments by electronic
33 funds transfer may make payments by electronic funds transfer
34 with the permission of the Department.
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1 All taxpayers required to make payment by electronic
2 funds transfer and any taxpayers authorized to voluntarily
3 make payments by electronic funds transfer shall make those
4 payments in the manner authorized by the Department.
5 The Department shall adopt such rules as are necessary to
6 effectuate a program of electronic funds transfer and the
7 requirements of this Section.
8 If the serviceman is otherwise required to file a monthly
9 return and if the serviceman's average monthly tax liability
10 to the Department does not exceed $200, the Department may
11 authorize his returns to be filed on a quarter annual basis,
12 with the return for January, February and March of a given
13 year being due by April 20 of such year; with the return for
14 April, May and June of a given year being due by July 20 of
15 such year; with the return for July, August and September of
16 a given year being due by October 20 of such year, and with
17 the return for October, November and December of a given year
18 being due by January 20 of the following year.
19 If the serviceman is otherwise required to file a monthly
20 or quarterly return and if the serviceman's average monthly
21 tax liability to the Department does not exceed $50, the
22 Department may authorize his returns to be filed on an annual
23 basis, with the return for a given year being due by January
24 20 of the following year.
25 Such quarter annual and annual returns, as to form and
26 substance, shall be subject to the same requirements as
27 monthly returns.
28 Notwithstanding any other provision in this Act
29 concerning the time within which a serviceman may file his
30 return, in the case of any serviceman who ceases to engage in
31 a kind of business which makes him responsible for filing
32 returns under this Act, such serviceman shall file a final
33 return under this Act with the Department not more than 1
34 month after discontinuing such business.
SB1458 Engrossed -43- LRB9011307KDbd
1 Where a serviceman collects the tax with respect to the
2 selling price of property which he sells and the purchaser
3 thereafter returns such property and the serviceman refunds
4 the selling price thereof to the purchaser, such serviceman
5 shall also refund, to the purchaser, the tax so collected
6 from the purchaser. When filing his return for the period in
7 which he refunds such tax to the purchaser, the serviceman
8 may deduct the amount of the tax so refunded by him to the
9 purchaser from any other Service Use Tax, Service Occupation
10 Tax, retailers' occupation tax or use tax which such
11 serviceman may be required to pay or remit to the Department,
12 as shown by such return, provided that the amount of the tax
13 to be deducted shall previously have been remitted to the
14 Department by such serviceman. If the serviceman shall not
15 previously have remitted the amount of such tax to the
16 Department, he shall be entitled to no deduction hereunder
17 upon refunding such tax to the purchaser.
18 Any serviceman filing a return hereunder shall also
19 include the total tax upon the selling price of tangible
20 personal property purchased for use by him as an incident to
21 a sale of service, and such serviceman shall remit the amount
22 of such tax to the Department when filing such return.
23 If experience indicates such action to be practicable,
24 the Department may prescribe and furnish a combination or
25 joint return which will enable servicemen, who are required
26 to file returns hereunder and also under the Service
27 Occupation Tax Act, to furnish all the return information
28 required by both Acts on the one form.
29 Where the serviceman has more than one business
30 registered with the Department under separate registration
31 hereunder, such serviceman shall not file each return that is
32 due as a single return covering all such registered
33 businesses, but shall file separate returns for each such
34 registered business.
SB1458 Engrossed -44- LRB9011307KDbd
1 Beginning January 1, 1990, each month the Department
2 shall pay into the State and Local Tax Reform Fund, a special
3 fund in the State Treasury, the net revenue realized for the
4 preceding month from the 1% tax on sales of food for human
5 consumption which is to be consumed off the premises where it
6 is sold (other than alcoholic beverages, soft drinks and food
7 which has been prepared for immediate consumption) and
8 prescription and nonprescription medicines, drugs, medical
9 appliances and insulin, urine testing materials, syringes and
10 needles used by diabetics.
11 Beginning November 1, 1998, and so long as the rate
12 remains at 1.25%, each month the Department shall pay into
13 the County and Mass Transit District Fund 20% of the net
14 revenue realized for the preceding month from the 1.25% rate
15 on the selling price of motor fuel and gasohol.
16 Beginning January 1, 1990, each month the Department
17 shall pay into the State and Local Sales Tax Reform Fund 20%
18 of the net revenue realized for the preceding month from the
19 6.25% general rate on transfers of tangible personal
20 property, other than tangible personal property which is
21 purchased outside Illinois at retail from a retailer and
22 which is titled or registered by an agency of this State's
23 government.
24 Beginning November 1, 1998, and so long as the rate
25 remains at 1.25%, each month the Department shall pay into
26 the Local Government Tax Fund 80% of the net revenue realized
27 for the preceding month from the 1.25% rate on the selling
28 price of motor fuel and gasohol.
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%,
SB1458 Engrossed -45- LRB9011307KDbd
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,
SB1458 Engrossed -46- LRB9011307KDbd
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
SB1458 Engrossed -47- LRB9011307KDbd
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 Act.
25 Beginning July 20, 1993 and in each month of each fiscal
26 year thereafter, one-eighth of the amount requested in the
27 certificate of the Chairman of the Metropolitan Pier and
28 Exposition Authority for that fiscal year, less the amount
29 deposited into the McCormick Place Expansion Project Fund by
30 the State Treasurer in the respective month under subsection
31 (g) of Section 13 of the Metropolitan Pier and Exposition
32 Authority Act, plus cumulative deficiencies in the deposits
33 required under this Section for previous months and years,
34 shall be deposited into the McCormick Place Expansion Project
SB1458 Engrossed -48- LRB9011307KDbd
1 Fund, until the full amount requested for the fiscal year,
2 but not in excess of the amount specified above as "Total
3 Deposit", has been deposited.
4 Subject to payment of amounts into the Build Illinois
5 Fund and the McCormick Place Expansion Project Fund pursuant
6 to the preceding paragraphs or in any amendment thereto
7 hereafter enacted, each month the Department shall pay into
8 the Local Government Distributive Fund 0.4% of the net
9 revenue realized for the preceding month from the 5% general
10 rate or 0.4% of 80% of the net revenue realized for the
11 preceding month from the 6.25% general rate, as the case may
12 be, on the selling price of tangible personal property which
13 amount shall, subject to appropriation, be distributed as
14 provided in Section 2 of the State Revenue Sharing Act. No
15 payments or distributions pursuant to this paragraph shall be
16 made if the tax imposed by this Act on photo processing
17 products is declared unconstitutional, or if the proceeds
18 from such tax are unavailable for distribution because of
19 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 All remaining moneys received by the Department pursuant
30 to this Act shall be paid into the General Revenue Fund of
31 the State Treasury.
32 As soon as possible after the first day of each month,
33 upon certification of the Department of Revenue, the
34 Comptroller shall order transferred and the Treasurer shall
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1 transfer from the General Revenue Fund to the Motor Fuel Tax
2 Fund an amount equal to 1.7% of 80% of the net revenue
3 realized under this Act for the second preceding month;
4 except that this transfer shall not be made for the months
5 February through June, 1992.
6 Net revenue realized for a month shall be the revenue
7 collected by the State pursuant to this Act, less the amount
8 paid out during that month as refunds to taxpayers for
9 overpayment of liability.
10 (Source: P.A. 88-45; 88-116; 88-669, eff. 11-29-94; 89-379,
11 eff. 1-1-96.)
12 Section 15. The Service Occupation Tax Act is amended by
13 changing Sections 3-10 and 9 as follows:
14 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
15 Sec. 3-10. Rate of tax. Unless otherwise provided in
16 this Section, the tax imposed by this Act is at the rate of
17 6.25% of the "selling price", as defined in Section 2 of the
18 Service Use Tax Act, of the tangible personal property. For
19 the purpose of computing this tax, in no event shall the
20 "selling price" be less than the cost price to the serviceman
21 of the tangible personal property transferred. The selling
22 price of each item of tangible personal property transferred
23 as an incident of a sale of service may be shown as a
24 distinct and separate item on the serviceman's billing to the
25 service customer. If the selling price is not so shown, the
26 selling price of the tangible personal property is deemed to
27 be 50% of the serviceman's entire billing to the service
28 customer. When, however, a serviceman contracts to design,
29 develop, and produce special order machinery or equipment,
30 the tax imposed by this Act shall be based on the
31 serviceman's cost price of the tangible personal property
32 transferred incident to the completion of the contract.
SB1458 Engrossed -50- LRB9011307KDbd
1 With respect to motor fuel, as defined in Section 1.1 of
2 the Motor Fuel Tax Law, and gasohol, as defined in Section
3 3-40 of the Use Tax Act, the tax is imposed at the rate of
4 1.25%. If, however, the aggregate tax revenues from motor
5 fuel and gasohol under the Use Tax Act, the Service Use Tax
6 Act, the Service Occupation Tax Act, and the Retailers'
7 Occupation Tax Act during the period from October 1, 2001
8 through September 30, 2002 are not at least 15% more than the
9 aggregate tax revenues from motor fuel and gasohol under
10 those Acts during the period from October 1, 1998 through
11 September 30, 1999, then beginning January 1, 2003 the tax is
12 imposed on motor fuel and gasohol at the 6.25% general rate.
13 With respect to gasohol, as defined in the Use Tax Act,
14 the tax imposed by this Act shall apply to 70% of the cost
15 price of property transferred as an incident to the sale of
16 service on or after January 1, 1990, and before July 1, 1999,
17 and to 100% of the cost price thereafter, except that from
18 July 1, 1997 to July 1, 1999, the rate shall be 85% for
19 gasohol sold in this State during the 12 months beginning
20 July 1 following any calendar year for which the Department
21 has determined that the percentages in Section 10 of the
22 Gasohol Fuels Tax Abatement Act have not been met.
23 At the election of any registered serviceman made for
24 each fiscal year, sales of service in which the aggregate
25 annual cost price of tangible personal property transferred
26 as an incident to the sales of service is less than 35%, or
27 75% in the case of servicemen transferring prescription drugs
28 or servicemen engaged in graphic arts production, of the
29 aggregate annual total gross receipts from all sales of
30 service, the tax imposed by this Act shall be based on the
31 serviceman's cost price of the tangible personal property
32 transferred incident to the sale of those services.
33 The tax shall be imposed at the rate of 1% on food
34 prepared for immediate consumption and transferred incident
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1 to a sale of service subject to this Act or the Service
2 Occupation Tax Act by an entity licensed under the Hospital
3 Licensing Act or the Nursing Home Care Act. The tax shall
4 also be imposed at the rate of 1% on food for human
5 consumption that is to be consumed off the premises where it
6 is sold (other than alcoholic beverages, soft drinks, and
7 food that has been prepared for immediate consumption and is
8 not otherwise included in this paragraph) and prescription
9 and nonprescription medicines, drugs, medical appliances,
10 modifications to a motor vehicle for the purpose of rendering
11 it usable by a disabled person, and insulin, urine testing
12 materials, syringes, and needles used by diabetics, for human
13 use. For the purposes of this Section, the term "soft
14 drinks" means any complete, finished, ready-to-use,
15 non-alcoholic drink, whether carbonated or not, including but
16 not limited to soda water, cola, fruit juice, vegetable
17 juice, carbonated water, and all other preparations commonly
18 known as soft drinks of whatever kind or description that are
19 contained in any closed or sealed can, carton, or container,
20 regardless of size. "Soft drinks" does not include coffee,
21 tea, non-carbonated water, infant formula, milk or milk
22 products as defined in the Grade A Pasteurized Milk and Milk
23 Products Act, or drinks containing 50% or more natural fruit
24 or vegetable juice.
25 Notwithstanding any other provisions of this Act, "food
26 for human consumption that is to be consumed off the premises
27 where it is sold" includes all food sold through a vending
28 machine, except soft drinks and food products that are
29 dispensed hot from a vending machine, regardless of the
30 location of the vending machine.
31 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
32 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
33 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
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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 at the time when he is required to
4 file his return for the period during which such tax was
5 collectible, less a discount of 2.1% prior to January 1,
6 1990, and 1.75% on and after January 1, 1990, or $5 per
7 calendar year, whichever is greater, which is allowed to
8 reimburse the serviceman for expenses incurred in collecting
9 the tax, keeping records, preparing and filing returns,
10 remitting the tax and supplying data to the Department on
11 request.
12 Where such tangible personal property is sold under a
13 conditional sales contract, or under any other form of sale
14 wherein the payment of the principal sum, or a part thereof,
15 is extended beyond the close of the period for which the
16 return is filed, the serviceman, in collecting the tax may
17 collect, for each tax return period, only the tax applicable
18 to the part of the selling price actually received during
19 such tax return period.
20 Except as provided hereinafter in this Section, on or
21 before the twentieth day of each calendar month, such
22 serviceman shall file a return for the preceding calendar
23 month in accordance with reasonable rules and regulations to
24 be promulgated by the Department of Revenue. Such return
25 shall be filed on a form prescribed by the Department and
26 shall contain such information as the Department may
27 reasonably require.
28 The Department may require returns to be filed on a
29 quarterly basis. If so required, a return for each calendar
30 quarter shall be filed on or before the twentieth day of the
31 calendar month following the end of such calendar quarter.
32 The taxpayer shall also file a return with the Department for
33 each of the first two months of each calendar quarter, on or
34 before the twentieth day of the following calendar month,
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1 stating:
2 1. The name of the seller;
3 2. The address of the principal place of business
4 from which he engages in business as a serviceman in this
5 State;
6 3. The total amount of taxable receipts received by
7 him during the preceding calendar month, including
8 receipts from charge and time sales, but less all
9 deductions allowed by law;
10 4. The amount of credit provided in Section 2d of
11 this Act;
12 5. The amount of tax due;
13 5-5. The signature of the taxpayer; and
14 6. Such other reasonable information as the
15 Department may require.
16 If a taxpayer fails to sign a return within 30 days after
17 the proper notice and demand for signature by the Department,
18 the return shall be considered valid and any amount shown to
19 be due on the return shall be deemed assessed.
20 A serviceman may accept a Manufacturer's Purchase Credit
21 certification from a purchaser in satisfaction of Service Use
22 Tax as provided in Section 3-70 of the Service Use Tax Act if
23 the purchaser provides the appropriate documentation as
24 required by Section 3-70 of the Service Use Tax Act. A
25 Manufacturer's Purchase Credit certification, accepted by a
26 serviceman as provided in Section 3-70 of the Service Use Tax
27 Act, may be used by that serviceman to satisfy Service
28 Occupation Tax liability in the amount claimed in the
29 certification, not to exceed 6.25% of the receipts subject to
30 tax from a qualifying purchase.
31 If the serviceman's average monthly tax liability to the
32 Department does not exceed $200, the Department may authorize
33 his returns to be filed on a quarter annual basis, with the
34 return for January, February and March of a given year being
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1 due by April 20 of such year; with the return for April, May
2 and June of a given year being due by July 20 of such year;
3 with the return for July, August and September of a given
4 year being due by October 20 of such year, and with the
5 return for October, November and December of a given year
6 being due by January 20 of the following year.
7 If the serviceman's average monthly tax liability to the
8 Department does not exceed $50, the Department may authorize
9 his returns to be filed on an annual basis, with the return
10 for a given year being due by January 20 of the following
11 year.
12 Such quarter annual and annual returns, as to form and
13 substance, shall be subject to the same requirements as
14 monthly returns.
15 Notwithstanding any other provision in this Act
16 concerning the time within which a serviceman may file his
17 return, in the case of any serviceman who ceases to engage in
18 a kind of business which makes him responsible for filing
19 returns under this Act, such serviceman shall file a final
20 return under this Act with the Department not more than 1
21 month after discontinuing such business.
22 Beginning October 1, 1993, a taxpayer who has an average
23 monthly tax liability of $150,000 or more shall make all
24 payments required by rules of the Department by electronic
25 funds transfer. Beginning October 1, 1994, a taxpayer who
26 has an average monthly tax liability of $100,000 or more
27 shall make all payments required by rules of the Department
28 by electronic funds transfer. Beginning October 1, 1995, a
29 taxpayer who has an average monthly tax liability of $50,000
30 or more shall make all payments required by rules of the
31 Department by electronic funds transfer. The term "average
32 monthly tax liability" means the sum of the taxpayer's
33 liabilities under this Act, and under all other State and
34 local occupation and use tax laws administered by the
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1 Department, for the immediately preceding calendar year
2 divided by 12.
3 Before August 1 of each year beginning in 1993, the
4 Department shall notify all taxpayers required to make
5 payments by electronic funds transfer. All taxpayers
6 required to make payments by electronic funds transfer shall
7 make those payments for a minimum of one year beginning on
8 October 1.
9 Any taxpayer not required to make payments by electronic
10 funds transfer may make payments by electronic funds transfer
11 with the permission of the Department.
12 All taxpayers required to make payment by electronic
13 funds transfer and any taxpayers authorized to voluntarily
14 make payments by electronic funds transfer shall make those
15 payments in the manner authorized by the Department.
16 The Department shall adopt such rules as are necessary to
17 effectuate a program of electronic funds transfer and the
18 requirements of this Section.
19 Where a serviceman collects the tax with respect to the
20 selling price of tangible personal property which he sells
21 and the purchaser thereafter returns such tangible personal
22 property and the serviceman refunds the selling price thereof
23 to the purchaser, such serviceman shall also refund, to the
24 purchaser, the tax so collected from the purchaser. When
25 filing his return for the period in which he refunds such tax
26 to the purchaser, the serviceman may deduct the amount of the
27 tax so refunded by him to the purchaser from any other
28 Service Occupation Tax, Service Use Tax, Retailers'
29 Occupation Tax or Use Tax which such serviceman may be
30 required to pay or remit to the Department, as shown by such
31 return, provided that the amount of the tax to be deducted
32 shall previously have been remitted to the Department by such
33 serviceman. If the serviceman shall not previously have
34 remitted the amount of such tax to the Department, he shall
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1 be entitled to no deduction hereunder upon refunding such tax
2 to the purchaser.
3 If experience indicates such action to be practicable,
4 the Department may prescribe and furnish a combination or
5 joint return which will enable servicemen, who are required
6 to file returns hereunder and also under the Retailers'
7 Occupation Tax Act, the Use Tax Act or the Service Use Tax
8 Act, to furnish all the return information required by all
9 said Acts on the one form.
10 Where the serviceman has more than one business
11 registered with the Department under separate registrations
12 hereunder, such serviceman shall file separate returns for
13 each registered business.
14 Beginning January 1, 1990, each month the Department
15 shall pay into the Local Government Tax Fund the revenue
16 realized for the preceding month from the 1% tax on sales of
17 food for human consumption which is to be consumed off the
18 premises where it is sold (other than alcoholic beverages,
19 soft drinks and food which has been prepared for immediate
20 consumption) and prescription and nonprescription medicines,
21 drugs, medical appliances and insulin, urine testing
22 materials, syringes and needles used by diabetics.
23 Beginning January 1, 1990, each month the Department
24 shall pay into the County and Mass Transit District Fund 4%
25 of the revenue realized for the preceding month from the
26 6.25% general rate.
27 Beginning November 1, 1998, and so long as the rate
28 remains at 1.25%, each month the Department shall pay into
29 the County and Mass Transit District Fund 20% of the net
30 revenue realized for the preceding month from the 1.25% rate
31 on the selling price of motor fuel and gasohol.
32 Beginning January 1, 1990, each month the Department
33 shall pay into the Local Government Tax Fund 16% of the
34 revenue realized for the preceding month from the 6.25%
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1 general rate on transfers of tangible personal property.
2 Beginning November 1, 1998, and so long as the rate
3 remains at 1.25%, each month the Department shall pay into
4 the Local Government Tax Fund 80% of the net revenue realized
5 for the preceding month from the 1.25% rate on the selling
6 price of motor fuel and gasohol.
7 Of the remainder of the moneys received by the Department
8 pursuant to this Act, (a) 1.75% thereof shall be paid into
9 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
10 and on and after July 1, 1989, 3.8% thereof shall be paid
11 into the Build Illinois Fund; provided, however, that if in
12 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
13 as the case may be, of the moneys received by the Department
14 and required to be paid into the Build Illinois Fund pursuant
15 to Section 3 of the Retailers' Occupation Tax Act, Section 9
16 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
17 Section 9 of the Service Occupation Tax Act, such Acts being
18 hereinafter called the "Tax Acts" and such aggregate of 2.2%
19 or 3.8%, as the case may be, of moneys being hereinafter
20 called the "Tax Act Amount", and (2) the amount transferred
21 to the Build Illinois Fund from the State and Local Sales Tax
22 Reform Fund shall be less than the Annual Specified Amount
23 (as defined in Section 3 of the Retailers' Occupation Tax
24 Act), an amount equal to the difference shall be immediately
25 paid into the Build Illinois Fund from other moneys received
26 by the Department pursuant to the Tax Acts; and further
27 provided, that if on the last business day of any month the
28 sum of (1) the Tax Act Amount required to be deposited into
29 the Build Illinois Account in the Build Illinois Fund during
30 such month and (2) the amount transferred during such month
31 to the Build Illinois Fund from the State and Local Sales Tax
32 Reform Fund shall have been less than 1/12 of the Annual
33 Specified Amount, an amount equal to the difference shall be
34 immediately paid into the Build Illinois Fund from other
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1 moneys received by the Department pursuant to the Tax Acts;
2 and, further provided, that in no event shall the payments
3 required under the preceding proviso result in aggregate
4 payments into the Build Illinois Fund pursuant to this clause
5 (b) for any fiscal year in excess of the greater of (i) the
6 Tax Act Amount or (ii) the Annual Specified Amount for such
7 fiscal year; and, further provided, that the amounts payable
8 into the Build Illinois Fund under this clause (b) shall be
9 payable only until such time as the aggregate amount on
10 deposit under each trust indenture securing Bonds issued and
11 outstanding pursuant to the Build Illinois Bond Act is
12 sufficient, taking into account any future investment income,
13 to fully provide, in accordance with such indenture, for the
14 defeasance of or the payment of the principal of, premium, if
15 any, and interest on the Bonds secured by such indenture and
16 on any Bonds expected to be issued thereafter and all fees
17 and costs payable with respect thereto, all as certified by
18 the Director of the Bureau of the Budget. If on the last
19 business day of any month in which Bonds are outstanding
20 pursuant to the Build Illinois Bond Act, the aggregate of the
21 moneys deposited in the Build Illinois Bond Account in the
22 Build Illinois Fund in such month shall be less than the
23 amount required to be transferred in such month from the
24 Build Illinois Bond Account to the Build Illinois Bond
25 Retirement and Interest Fund pursuant to Section 13 of the
26 Build Illinois Bond Act, an amount equal to such deficiency
27 shall be immediately paid from other moneys received by the
28 Department pursuant to the Tax Acts to the Build Illinois
29 Fund; provided, however, that any amounts paid to the Build
30 Illinois Fund in any fiscal year pursuant to this sentence
31 shall be deemed to constitute payments pursuant to clause (b)
32 of the preceding sentence and shall reduce the amount
33 otherwise payable for such fiscal year pursuant to clause (b)
34 of the preceding sentence. The moneys received by the
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1 Department pursuant to this Act and required to be deposited
2 into the Build Illinois Fund are subject to the pledge, claim
3 and charge set forth in Section 12 of the Build Illinois Bond
4 Act.
5 Subject to payment of amounts into the Build Illinois
6 Fund as provided in the preceding paragraph or in any
7 amendment thereto hereafter enacted, the following specified
8 monthly installment of the amount requested in the
9 certificate of the Chairman of the Metropolitan Pier and
10 Exposition Authority provided under Section 8.25f of the
11 State Finance Act, but not in excess of the sums designated
12 as "Total Deposit", shall be deposited in the aggregate from
13 collections under Section 9 of the Use Tax Act, Section 9 of
14 the Service Use Tax Act, Section 9 of the Service Occupation
15 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
16 into the McCormick Place Expansion Project Fund in the
17 specified fiscal years.
18 Fiscal Year Total Deposit
19 1993 $0
20 1994 53,000,000
21 1995 58,000,000
22 1996 61,000,000
23 1997 64,000,000
24 1998 68,000,000
25 1999 71,000,000
26 2000 75,000,000
27 2001 80,000,000
28 2002 84,000,000
29 2003 89,000,000
30 2004 and 93,000,000
31 each fiscal year
32 thereafter that bonds
33 are outstanding under
34 Section 13.2 of the
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1 Metropolitan Pier and
2 Exposition Authority
3 Act.
4 Beginning July 20, 1993 and in each month of each fiscal
5 year thereafter, one-eighth of the amount requested in the
6 certificate of the Chairman of the Metropolitan Pier and
7 Exposition Authority for that fiscal year, less the amount
8 deposited into the McCormick Place Expansion Project Fund by
9 the State Treasurer in the respective month under subsection
10 (g) of Section 13 of the Metropolitan Pier and Exposition
11 Authority Act, plus cumulative deficiencies in the deposits
12 required under this Section for previous months and years,
13 shall be deposited into the McCormick Place Expansion Project
14 Fund, until the full amount requested for the fiscal year,
15 but not in excess of the amount specified above as "Total
16 Deposit", has been deposited.
17 Subject to payment of amounts into the Build Illinois
18 Fund and the McCormick Place Expansion Project Fund pursuant
19 to the preceding paragraphs or in any amendment thereto
20 hereafter enacted, each month the Department shall pay into
21 the Local Government Distributive Fund 0.4% of the net
22 revenue realized for the preceding month from the 5% general
23 rate or 0.4% of 80% of the net revenue realized for the
24 preceding month from the 6.25% general rate, as the case may
25 be, on the selling price of tangible personal property which
26 amount shall, subject to appropriation, be distributed as
27 provided in Section 2 of the State Revenue Sharing Act. No
28 payments or distributions pursuant to this paragraph shall be
29 made if the tax imposed by this Act on photoprocessing
30 products is declared unconstitutional, or if the proceeds
31 from such tax are unavailable for distribution because of
32 litigation.
33 Subject to payment of amounts into the Build Illinois
34 Fund, the McCormick Place Expansion Project Fund, and the
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1 Local Government Distributive Fund pursuant to the preceding
2 paragraphs or in any amendments thereto hereafter enacted,
3 beginning July 1, 1993, the Department shall each month pay
4 into the Illinois Tax Increment Fund 0.27% of 80% of the net
5 revenue realized for the preceding month from the 6.25%
6 general rate on the selling price of tangible personal
7 property.
8 Remaining moneys received by the Department pursuant to
9 this Act shall be paid into the General Revenue Fund of the
10 State Treasury.
11 The Department may, upon separate written notice to a
12 taxpayer, require the taxpayer to prepare and file with the
13 Department on a form prescribed by the Department within not
14 less than 60 days after receipt of the notice an annual
15 information return for the tax year specified in the notice.
16 Such annual return to the Department shall include a
17 statement of gross receipts as shown by the taxpayer's last
18 Federal income tax return. If the total receipts of the
19 business as reported in the Federal income tax return do not
20 agree with the gross receipts reported to the Department of
21 Revenue for the same period, the taxpayer shall attach to his
22 annual return a schedule showing a reconciliation of the 2
23 amounts and the reasons for the difference. The taxpayer's
24 annual return to the Department shall also disclose the cost
25 of goods sold by the taxpayer during the year covered by such
26 return, opening and closing inventories of such goods for
27 such year, cost of goods used from stock or taken from stock
28 and given away by the taxpayer during such year, pay roll
29 information of the taxpayer's business during such year and
30 any additional reasonable information which the Department
31 deems would be helpful in determining the accuracy of the
32 monthly, quarterly or annual returns filed by such taxpayer
33 as hereinbefore provided for in this Section.
34 If the annual information return required by this Section
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1 is not filed when and as required, the taxpayer shall be
2 liable as follows:
3 (i) Until January 1, 1994, the taxpayer shall be
4 liable for a penalty equal to 1/6 of 1% of the tax due
5 from such taxpayer under this Act during the period to be
6 covered by the annual return for each month or fraction
7 of a month until such return is filed as required, the
8 penalty to be assessed and collected in the same manner
9 as any other penalty provided for in this Act.
10 (ii) On and after January 1, 1994, the taxpayer
11 shall be liable for a penalty as described in Section 3-4
12 of the Uniform Penalty and Interest Act.
13 The chief executive officer, proprietor, owner or highest
14 ranking manager shall sign the annual return to certify the
15 accuracy of the information contained therein. Any person
16 who willfully signs the annual return containing false or
17 inaccurate information shall be guilty of perjury and
18 punished accordingly. The annual return form prescribed by
19 the Department shall include a warning that the person
20 signing the return may be liable for perjury.
21 The foregoing portion of this Section concerning the
22 filing of an annual information return shall not apply to a
23 serviceman who is not required to file an income tax return
24 with the United States Government.
25 As soon as possible after the first day of each month,
26 upon certification of the Department of Revenue, the
27 Comptroller shall order transferred and the Treasurer shall
28 transfer from the General Revenue Fund to the Motor Fuel Tax
29 Fund an amount equal to 1.7% of 80% of the net revenue
30 realized under this Act for the second preceding month;
31 except that this transfer shall not be made for the months
32 February through June, 1992.
33 Net revenue realized for a month shall be the revenue
34 collected by the State pursuant to this Act, less the amount
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1 paid out during that month as refunds to taxpayers for
2 overpayment of liability.
3 For greater simplicity of administration, it shall be
4 permissible for manufacturers, importers and wholesalers
5 whose products are sold by numerous servicemen in Illinois,
6 and who wish to do so, to assume the responsibility for
7 accounting and paying to the Department all tax accruing
8 under this Act with respect to such sales, if the servicemen
9 who are affected do not make written objection to the
10 Department to this arrangement.
11 (Source: P.A. 88-45; 88-116; 88-547, eff. 6-30-94; 88-669,
12 eff. 11-29-94; 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
13 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
14 Section 20. The Retailers' Occupation Tax Act is amended
15 by changing Sections 2-10, 2d, and 3 as follows:
16 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
17 Sec. 2-10. Rate of tax. Unless otherwise provided in
18 this Section, the tax imposed by this Act is at the rate of
19 6.25% of gross receipts from sales of tangible personal
20 property made in the course of business.
21 With respect to motor fuel, as defined in Section 1.1 of
22 the Motor Fuel Tax Law, and gasohol, as defined in Section
23 3-40 of the Use Tax Act, the tax is imposed at the rate of
24 1.25%. If, however, the aggregate tax revenues from motor
25 fuel and gasohol under the Use Tax Act, the Service Use Tax
26 Act, the Service Occupation Tax Act, and the Retailers'
27 Occupation Tax Act during the period from October 1, 2001
28 through September 30, 2002 are not at least 15% more than the
29 aggregate tax revenues from motor fuel and gasohol under
30 those Acts during the period from October 1, 1998 through
31 September 30, 1999, then beginning January 1, 2003 the tax is
32 imposed on motor fuel and gasohol at the 6.25% general rate.
SB1458 Engrossed -64- LRB9011307KDbd
1 With respect to gasohol, as defined in the Use Tax Act,
2 the tax imposed by this Act applies to 70% of the proceeds of
3 sales made on or after January 1, 1990, and before July 1,
4 1999, and to 100% of the proceeds of sales made thereafter,
5 except that from July 1, 1997 to July 1, 1999, the rate shall
6 be 85% for gasohol sold in this State during the 12 months
7 beginning July 1 following any calendar year for which the
8 Department has determined that the percentages in Section 10
9 of the Gasohol Fuels Tax Abatement Act have not been met.
10 With respect to food for human consumption that is to be
11 consumed off the premises where it is sold (other than
12 alcoholic beverages, soft drinks, and food that has been
13 prepared for immediate consumption) and prescription and
14 nonprescription medicines, drugs, medical appliances,
15 modifications to a motor vehicle for the purpose of rendering
16 it usable by a disabled person, and insulin, urine testing
17 materials, syringes, and needles used by diabetics, for human
18 use, the tax is imposed at the rate of 1%. For the purposes
19 of this Section, the term "soft drinks" means any complete,
20 finished, ready-to-use, non-alcoholic drink, whether
21 carbonated or not, including but not limited to soda water,
22 cola, fruit juice, vegetable juice, carbonated water, and all
23 other preparations commonly known as soft drinks of whatever
24 kind or description that are contained in any closed or
25 sealed bottle, can, carton, or container, regardless of size.
26 "Soft drinks" does not include coffee, tea, non-carbonated
27 water, infant formula, milk or milk products as defined in
28 the Grade A Pasteurized Milk and Milk Products Act, or drinks
29 containing 50% or more natural fruit or vegetable juice.
30 Notwithstanding any other provisions of this Act, "food
31 for human consumption that is to be consumed off the premises
32 where it is sold" includes all food sold through a vending
33 machine, except soft drinks and food products that are
34 dispensed hot from a vending machine, regardless of the
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1 location of the vending machine.
2 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
3 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
4 (35 ILCS 120/2d) (from Ch. 120, par. 441d)
5 Sec. 2d. Tax prepayment by motor fuel retailer. Any
6 person engaged in the business of selling motor fuel at
7 retail, as defined in the Motor Fuel Tax Law, and who is not
8 a licensed distributor or supplier, as defined in the Motor
9 Fuel Tax Law, shall prepay to his or her distributor,
10 supplier, or other reseller of motor fuel a portion of the
11 tax imposed by this Act if the distributor, supplier, or
12 other reseller of motor fuel is registered under Section 2a
13 or Section 2c of this Act. The prepayment requirement
14 provided for in this Section does not apply to liquid propane
15 gas.
16 The Retailers' Occupation Tax paid to the distributor,
17 supplier, or other reseller shall be an amount equal to 0.8
18 cents $0.04 per gallon of the motor fuel, except gasohol as
19 defined in Section 2-10 of this Act which shall be an amount
20 equal to 0.6 cents $0.03 per gallon, purchased from the
21 distributor, supplier, or other reseller.
22 Any person engaged in the business of selling motor fuel
23 at retail shall be entitled to a credit against tax due under
24 this Act in an amount equal to the tax paid to the
25 distributor, supplier, or other reseller.
26 Every distributor, supplier, or other reseller registered
27 as provided in Section 2a or Section 2c of this Act shall
28 remit the prepaid tax on all motor fuel that is due from any
29 person engaged in the business of selling at retail motor
30 fuel with the returns filed under Section 2f or Section 3 of
31 this Act, but the vendors discount provided in Section 3
32 shall not apply to the amount of prepaid tax that is
33 remitted. Any distributor or supplier who fails to properly
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1 collect and remit the tax shall be liable for the tax. For
2 purposes of this Section, the prepaid tax is due on invoiced
3 gallons sold during a month by the 20th day of the following
4 month.
5 (Source: P.A. 86-1475; 87-14.)
6 (35 ILCS 120/3) (from Ch. 120, par. 442)
7 (Text of Section before amendment by P.A. 90-491)
8 Sec. 3. Except as provided in this Section, on or before
9 the twentieth day of each calendar month, every person
10 engaged in the business of selling tangible personal property
11 at retail in this State during the preceding calendar month
12 shall file a return with the Department, stating:
13 1. The name of the seller;
14 2. His residence address and the address of his
15 principal place of business and the address of the
16 principal place of business (if that is a different
17 address) from which he engages in the business of selling
18 tangible personal property at retail in this State;
19 3. Total amount of receipts received by him during
20 the preceding calendar month or quarter, as the case may
21 be, from sales of tangible personal property, and from
22 services furnished, by him during such preceding calendar
23 month or quarter;
24 4. Total amount received by him during the
25 preceding calendar month or quarter on charge and time
26 sales of tangible personal property, and from services
27 furnished, by him prior to the month or quarter for which
28 the return is filed;
29 5. Deductions allowed by law;
30 6. Gross receipts which were received by him during
31 the preceding calendar month or quarter and upon the
32 basis of which the tax is imposed;
33 7. The amount of credit provided in Section 2d of
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1 this Act;
2 8. The amount of tax due;
3 9. The signature of the taxpayer; and
4 10. Such other reasonable information as the
5 Department may require.
6 If a taxpayer fails to sign a return within 30 days after
7 the proper notice and demand for signature by the Department,
8 the return shall be considered valid and any amount shown to
9 be due on the return shall be deemed assessed.
10 Each return shall be accompanied by the statement of
11 prepaid tax issued pursuant to Section 2e for which credit is
12 claimed.
13 A retailer may accept a Manufacturer's Purchase Credit
14 certification from a purchaser in satisfaction of Use Tax as
15 provided in Section 3-85 of the Use Tax Act if the purchaser
16 provides the appropriate documentation as required by Section
17 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
18 certification, accepted by a retailer as provided in Section
19 3-85 of the Use Tax Act, may be used by that retailer to
20 satisfy Retailers' Occupation Tax liability in the amount
21 claimed in the certification, not to exceed 6.25% of the
22 receipts subject to tax from a qualifying purchase.
23 The Department may require returns to be filed on a
24 quarterly basis. If so required, a return for each calendar
25 quarter shall be filed on or before the twentieth day of the
26 calendar month following the end of such calendar quarter.
27 The taxpayer shall also file a return with the Department for
28 each of the first two months of each calendar quarter, on or
29 before the twentieth day of the following calendar month,
30 stating:
31 1. The name of the seller;
32 2. The address of the principal place of business
33 from which he engages in the business of selling tangible
34 personal property at retail in this State;
SB1458 Engrossed -68- LRB9011307KDbd
1 3. The total amount of taxable receipts received by
2 him during the preceding calendar month from sales of
3 tangible personal property by him during such preceding
4 calendar month, including receipts from charge and time
5 sales, but less all deductions allowed by law;
6 4. The amount of credit provided in Section 2d of
7 this Act;
8 5. The amount of tax due; and
9 6. Such other reasonable information as the
10 Department may require.
11 If a total amount of less than $1 is payable, refundable
12 or creditable, such amount shall be disregarded if it is less
13 than 50 cents and shall be increased to $1 if it is 50 cents
14 or more.
15 Beginning October 1, 1993, a taxpayer who has an average
16 monthly tax liability of $150,000 or more shall make all
17 payments required by rules of the Department by electronic
18 funds transfer. Beginning October 1, 1994, a taxpayer who
19 has an average monthly tax liability of $100,000 or more
20 shall make all payments required by rules of the Department
21 by electronic funds transfer. Beginning October 1, 1995, a
22 taxpayer who has an average monthly tax liability of $50,000
23 or more shall make all payments required by rules of the
24 Department by electronic funds transfer. The term "average
25 monthly tax liability" shall be the sum of the taxpayer's
26 liabilities under this Act, and under all other State and
27 local occupation and use tax laws administered by the
28 Department, for the immediately preceding calendar year
29 divided by 12.
30 Before August 1 of each year beginning in 1993, the
31 Department shall notify all taxpayers required to make
32 payments by electronic funds transfer. All taxpayers
33 required to make payments by electronic funds transfer shall
34 make those payments for a minimum of one year beginning on
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1 October 1.
2 Any taxpayer not required to make payments by electronic
3 funds transfer may make payments by electronic funds transfer
4 with the permission of the Department.
5 All taxpayers required to make payment by electronic
6 funds transfer and any taxpayers authorized to voluntarily
7 make payments by electronic funds transfer shall make those
8 payments in the manner authorized by the Department.
9 The Department shall adopt such rules as are necessary to
10 effectuate a program of electronic funds transfer and the
11 requirements of this Section.
12 Any amount which is required to be shown or reported on
13 any return or other document under this Act shall, if such
14 amount is not a whole-dollar amount, be increased to the
15 nearest whole-dollar amount in any case where the fractional
16 part of a dollar is 50 cents or more, and decreased to the
17 nearest whole-dollar amount where the fractional part of a
18 dollar is less than 50 cents.
19 If the retailer is otherwise required to file a monthly
20 return and if the retailer's average monthly tax liability to
21 the Department does not exceed $200, the Department may
22 authorize his returns to be filed on a quarter annual basis,
23 with the return for January, February and March of a given
24 year being due by April 20 of such year; with the return for
25 April, May and June of a given year being due by July 20 of
26 such year; with the return for July, August and September of
27 a given year being due by October 20 of such year, and with
28 the return for October, November and December of a given year
29 being due by January 20 of the following year.
30 If the retailer is otherwise required to file a monthly
31 or quarterly return and if the retailer's average monthly tax
32 liability with the Department does not exceed $50, the
33 Department may authorize his returns to be filed on an annual
34 basis, with the return for a given year being due by January
SB1458 Engrossed -70- LRB9011307KDbd
1 20 of the following year.
2 Such quarter annual and annual returns, as to form and
3 substance, shall be subject to the same requirements as
4 monthly returns.
5 Notwithstanding any other provision in this Act
6 concerning the time within which a retailer may file his
7 return, in the case of any retailer who ceases to engage in a
8 kind of business which makes him responsible for filing
9 returns under this Act, such retailer shall file a final
10 return under this Act with the Department not more than one
11 month after discontinuing such business.
12 Where the same person has more than one business
13 registered with the Department under separate registrations
14 under this Act, such person may not file each return that is
15 due as a single return covering all such registered
16 businesses, but shall file separate returns for each such
17 registered business.
18 In addition, with respect to motor vehicles, watercraft,
19 aircraft, and trailers that are required to be registered
20 with an agency of this State, every retailer selling this
21 kind of tangible personal property shall file, with the
22 Department, upon a form to be prescribed and supplied by the
23 Department, a separate return for each such item of tangible
24 personal property which the retailer sells, except that
25 where, in the same transaction, a retailer of aircraft,
26 watercraft, motor vehicles or trailers transfers more than
27 one aircraft, watercraft, motor vehicle or trailer to another
28 aircraft, watercraft, motor vehicle retailer or trailer
29 retailer for the purpose of resale, that seller for resale
30 may report the transfer of all aircraft, watercraft, motor
31 vehicles or trailers involved in that transaction to the
32 Department on the same uniform invoice-transaction reporting
33 return form. For purposes of this Section, "watercraft"
34 means a Class 2, Class 3, or Class 4 watercraft as defined in
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1 Section 3-2 of the Boat Registration and Safety Act, a
2 personal watercraft, or any boat equipped with an inboard
3 motor.
4 Any retailer who sells only motor vehicles, watercraft,
5 aircraft, or trailers that are required to be registered with
6 an agency of this State, so that all retailers' occupation
7 tax liability is required to be reported, and is reported, on
8 such transaction reporting returns and who is not otherwise
9 required to file monthly or quarterly returns, need not file
10 monthly or quarterly returns. However, those retailers shall
11 be required to file returns on an annual basis.
12 The transaction reporting return, in the case of motor
13 vehicles or trailers that are required to be registered with
14 an agency of this State, shall be the same document as the
15 Uniform Invoice referred to in Section 5-402 of The Illinois
16 Vehicle Code and must show the name and address of the
17 seller; the name and address of the purchaser; the amount of
18 the selling price including the amount allowed by the
19 retailer for traded-in property, if any; the amount allowed
20 by the retailer for the traded-in tangible personal property,
21 if any, to the extent to which Section 1 of this Act allows
22 an exemption for the value of traded-in property; the balance
23 payable after deducting such trade-in allowance from the
24 total selling price; the amount of tax due from the retailer
25 with respect to such transaction; the amount of tax collected
26 from the purchaser by the retailer on such transaction (or
27 satisfactory evidence that such tax is not due in that
28 particular instance, if that is claimed to be the fact); the
29 place and date of the sale; a sufficient identification of
30 the property sold; such other information as is required in
31 Section 5-402 of The Illinois Vehicle Code, and such other
32 information as the Department may reasonably require.
33 The transaction reporting return in the case of
34 watercraft or aircraft must show the name and address of the
SB1458 Engrossed -72- LRB9011307KDbd
1 seller; the name and address of the purchaser; the amount of
2 the selling price including the amount allowed by the
3 retailer for traded-in property, if any; the amount allowed
4 by the retailer for the traded-in tangible personal property,
5 if any, to the extent to which Section 1 of this Act allows
6 an exemption for the value of traded-in property; the balance
7 payable after deducting such trade-in allowance from the
8 total selling price; the amount of tax due from the retailer
9 with respect to such transaction; the amount of tax collected
10 from the purchaser by the retailer on such transaction (or
11 satisfactory evidence that such tax is not due in that
12 particular instance, if that is claimed to be the fact); the
13 place and date of the sale, a sufficient identification of
14 the property sold, and such other information as the
15 Department may reasonably require.
16 Such transaction reporting return shall be filed not
17 later than 20 days after the day of delivery of the item that
18 is being sold, but may be filed by the retailer at any time
19 sooner than that if he chooses to do so. The transaction
20 reporting return and tax remittance or proof of exemption
21 from the Illinois use tax may be transmitted to the
22 Department by way of the State agency with which, or State
23 officer with whom the tangible personal property must be
24 titled or registered (if titling or registration is required)
25 if the Department and such agency or State officer determine
26 that this procedure will expedite the processing of
27 applications for title or registration.
28 With each such transaction reporting return, the retailer
29 shall remit the proper amount of tax due (or shall submit
30 satisfactory evidence that the sale is not taxable if that is
31 the case), to the Department or its agents, whereupon the
32 Department shall issue, in the purchaser's name, a use tax
33 receipt (or a certificate of exemption if the Department is
34 satisfied that the particular sale is tax exempt) which such
SB1458 Engrossed -73- LRB9011307KDbd
1 purchaser may submit to the agency with which, or State
2 officer with whom, he must title or register the tangible
3 personal property that is involved (if titling or
4 registration is required) in support of such purchaser's
5 application for an Illinois certificate or other evidence of
6 title or registration to such tangible personal property.
7 No retailer's failure or refusal to remit tax under this
8 Act precludes a user, who has paid the proper tax to the
9 retailer, from obtaining his certificate of title or other
10 evidence of title or registration (if titling or registration
11 is required) upon satisfying the Department that such user
12 has paid the proper tax (if tax is due) to the retailer. The
13 Department shall adopt appropriate rules to carry out the
14 mandate of this paragraph.
15 If the user who would otherwise pay tax to the retailer
16 wants the transaction reporting return filed and the payment
17 of the tax or proof of exemption made to the Department
18 before the retailer is willing to take these actions and such
19 user has not paid the tax to the retailer, such user may
20 certify to the fact of such delay by the retailer and may
21 (upon the Department being satisfied of the truth of such
22 certification) transmit the information required by the
23 transaction reporting return and the remittance for tax or
24 proof of exemption directly to the Department and obtain his
25 tax receipt or exemption determination, in which event the
26 transaction reporting return and tax remittance (if a tax
27 payment was required) shall be credited by the Department to
28 the proper retailer's account with the Department, but
29 without the 2.1% or 1.75% discount provided for in this
30 Section being allowed. When the user pays the tax directly
31 to the Department, he shall pay the tax in the same amount
32 and in the same form in which it would be remitted if the tax
33 had been remitted to the Department by the retailer.
34 Refunds made by the seller during the preceding return
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1 period to purchasers, on account of tangible personal
2 property returned to the seller, shall be allowed as a
3 deduction under subdivision 5 of his monthly or quarterly
4 return, as the case may be, in case the seller had
5 theretofore included the receipts from the sale of such
6 tangible personal property in a return filed by him and had
7 paid the tax imposed by this Act with respect to such
8 receipts.
9 Where the seller is a corporation, the return filed on
10 behalf of such corporation shall be signed by the president,
11 vice-president, secretary or treasurer or by the properly
12 accredited agent of such corporation.
13 Where the seller is a limited liability company, the
14 return filed on behalf of the limited liability company shall
15 be signed by a manager, member, or properly accredited agent
16 of the limited liability company.
17 Except as provided in this Section, the retailer filing
18 the return under this Section shall, at the time of filing
19 such return, pay to the Department the amount of tax imposed
20 by this Act less a discount of 2.1% prior to January 1, 1990
21 and 1.75% on and after January 1, 1990, or $5 per calendar
22 year, whichever is greater, which is allowed to reimburse the
23 retailer for the expenses incurred in keeping records,
24 preparing and filing returns, remitting the tax and supplying
25 data to the Department on request. Any prepayment made
26 pursuant to Section 2d of this Act shall be included in the
27 amount on which such 2.1% or 1.75% discount is computed. In
28 the case of retailers who report and pay the tax on a
29 transaction by transaction basis, as provided in this
30 Section, such discount shall be taken with each such tax
31 remittance instead of when such retailer files his periodic
32 return.
33 If the taxpayer's average monthly tax liability to the
34 Department under this Act, the Use Tax Act, the Service
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1 Occupation Tax Act, and the Service Use Tax Act, excluding
2 any liability for prepaid sales tax to be remitted in
3 accordance with Section 2d of this Act, was $10,000 or more
4 during the preceding 4 complete calendar quarters, he shall
5 file a return with the Department each month by the 20th day
6 of the month next following the month during which such tax
7 liability is incurred and shall make payments to the
8 Department on or before the 7th, 15th, 22nd and last day of
9 the month during which such liability is incurred. If the
10 month during which such tax liability is incurred began prior
11 to January 1, 1985, each payment shall be in an amount equal
12 to 1/4 of the taxpayer's actual liability for the month or an
13 amount set by the Department not to exceed 1/4 of the average
14 monthly liability of the taxpayer to the Department for the
15 preceding 4 complete calendar quarters (excluding the month
16 of highest liability and the month of lowest liability in
17 such 4 quarter period). If the month during which such tax
18 liability is incurred begins on or after January 1, 1985 and
19 prior to January 1, 1987, each payment shall be in an amount
20 equal to 22.5% of the taxpayer's actual liability for the
21 month or 27.5% of the taxpayer's liability for the same
22 calendar month of the preceding year. If the month during
23 which such tax liability is incurred begins on or after
24 January 1, 1987 and prior to January 1, 1988, each payment
25 shall be in an amount equal to 22.5% of the taxpayer's actual
26 liability for the month or 26.25% of the taxpayer's liability
27 for the same calendar month of the preceding year. If the
28 month during which such tax liability is incurred begins on
29 or after January 1, 1988, and prior to January 1, 1989, or
30 begins on or after January 1, 1996, each payment shall be in
31 an amount equal to 22.5% of the taxpayer's actual liability
32 for the month or 25% of the taxpayer's liability for the same
33 calendar month of the preceding year. If the month during
34 which such tax liability is incurred begins on or after
SB1458 Engrossed -76- LRB9011307KDbd
1 January 1, 1989, and prior to January 1, 1996, each payment
2 shall be in an amount equal to 22.5% of the taxpayer's actual
3 liability for the month or 25% of the taxpayer's liability
4 for the same calendar month of the preceding year or 100% of
5 the taxpayer's actual liability for the quarter monthly
6 reporting period. The amount of such quarter monthly
7 payments shall be credited against the final tax liability of
8 the taxpayer's return for that month. Once applicable, the
9 requirement of the making of quarter monthly payments to the
10 Department by taxpayers having an average monthly tax
11 liability of $10,000 or more as determined in the manner
12 provided above shall continue until such taxpayer's average
13 monthly liability to the Department during the preceding 4
14 complete calendar quarters (excluding the month of highest
15 liability and the month of lowest liability) is less than
16 $9,000, or until such taxpayer's average monthly liability to
17 the Department as computed for each calendar quarter of the 4
18 preceding complete calendar quarter period is less than
19 $10,000. However, if a taxpayer can show the Department that
20 a substantial change in the taxpayer's business has occurred
21 which causes the taxpayer to anticipate that his average
22 monthly tax liability for the reasonably foreseeable future
23 will fall below $10,000, then such taxpayer may petition the
24 Department for a change in such taxpayer's reporting status.
25 The Department shall change such taxpayer's reporting status
26 unless it finds that such change is seasonal in nature and
27 not likely to be long term. If any such quarter monthly
28 payment is not paid at the time or in the amount required by
29 this Section, then the taxpayer's 2.1% or 1.75% vendors'
30 discount shall be reduced by 2.1% or 1.75% of the difference
31 between the minimum amount due as a payment and the amount of
32 such quarter monthly payment actually and timely paid, and
33 the taxpayer shall be liable for penalties and interest on
34 such difference, except insofar as the taxpayer has
SB1458 Engrossed -77- LRB9011307KDbd
1 previously made payments for that month to the Department in
2 excess of the minimum payments previously due as provided in
3 this Section. The Department shall make reasonable rules and
4 regulations to govern the quarter monthly payment amount and
5 quarter monthly payment dates for taxpayers who file on other
6 than a calendar monthly basis.
7 Without regard to whether a taxpayer is required to make
8 quarter monthly payments as specified above, any taxpayer who
9 is required by Section 2d of this Act to collect and remit
10 prepaid taxes and has collected prepaid taxes which average
11 in excess of $25,000 per month during the preceding 2
12 complete calendar quarters, shall file a return with the
13 Department as required by Section 2f and shall make payments
14 to the Department on or before the 7th, 15th, 22nd and last
15 day of the month during which such liability is incurred. If
16 the month during which such tax liability is incurred began
17 prior to the effective date of this amendatory Act of 1985,
18 each payment shall be in an amount not less than 22.5% of the
19 taxpayer's actual liability under Section 2d. If the month
20 during which such tax liability is incurred begins on or
21 after January 1, 1986, each payment shall be in an amount
22 equal to 22.5% of the taxpayer's actual liability for the
23 month or 27.5% of the taxpayer's liability for the same
24 calendar month of the preceding calendar year. If the month
25 during which such tax liability is incurred begins on or
26 after January 1, 1987, each payment shall be in an amount
27 equal to 22.5% of the taxpayer's actual liability for the
28 month or 26.25% of the taxpayer's liability for the same
29 calendar month of the preceding year. The amount of such
30 quarter monthly payments shall be credited against the final
31 tax liability of the taxpayer's return for that month filed
32 under this Section or Section 2f, as the case may be. Once
33 applicable, the requirement of the making of quarter monthly
34 payments to the Department pursuant to this paragraph shall
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1 continue until such taxpayer's average monthly prepaid tax
2 collections during the preceding 2 complete calendar quarters
3 is $25,000 or less. If any such quarter monthly payment is
4 not paid at the time or in the amount required, the taxpayer
5 shall be liable for penalties and interest on such
6 difference, except insofar as the taxpayer has previously
7 made payments for that month in excess of the minimum
8 payments previously due.
9 If any payment provided for in this Section exceeds the
10 taxpayer's liabilities under this Act, the Use Tax Act, the
11 Service Occupation Tax Act and the Service Use Tax Act, as
12 shown on an original monthly return, the Department shall, if
13 requested by the taxpayer, issue to the taxpayer a credit
14 memorandum no later than 30 days after the date of payment.
15 The credit evidenced by such credit memorandum may be
16 assigned by the taxpayer to a similar taxpayer under this
17 Act, the Use Tax Act, the Service Occupation Tax Act or the
18 Service Use Tax Act, in accordance with reasonable rules and
19 regulations to be prescribed by the Department. If no such
20 request is made, the taxpayer may credit such excess payment
21 against tax liability subsequently to be remitted to the
22 Department under this Act, the Use Tax Act, the Service
23 Occupation Tax Act or the Service Use Tax Act, in accordance
24 with reasonable rules and regulations prescribed by the
25 Department. If the Department subsequently determined that
26 all or any part of the credit taken was not actually due to
27 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
28 shall be reduced by 2.1% or 1.75% of the difference between
29 the credit taken and that actually due, and that taxpayer
30 shall be liable for penalties and interest on such
31 difference.
32 If a retailer of motor fuel is entitled to a credit under
33 Section 2d of this Act which exceeds the taxpayer's liability
34 to the Department under this Act for the month which the
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1 taxpayer is filing a return, the Department shall issue the
2 taxpayer a credit memorandum for the excess.
3 Beginning January 1, 1990, each month the Department
4 shall pay into the Local Government Tax Fund, a special fund
5 in the State treasury which is hereby created, the net
6 revenue realized for the preceding month from the 1% tax on
7 sales of food for human consumption which is to be consumed
8 off the premises where it is sold (other than alcoholic
9 beverages, soft drinks and food which has been prepared for
10 immediate consumption) and prescription and nonprescription
11 medicines, drugs, medical appliances and insulin, urine
12 testing materials, syringes and needles used by diabetics.
13 Beginning January 1, 1990, each month the Department
14 shall pay into the County and Mass Transit District Fund, a
15 special fund in the State treasury which is hereby created,
16 4% of the net revenue realized for the preceding month from
17 the 6.25% general rate.
18 Beginning November 1, 1998, and so long as the rate
19 remains at 1.25%, each month the Department shall pay into
20 the County and Mass Transit District Fund 20% of the net
21 revenue realized for the preceding month from the 1.25% rate
22 on the selling price of motor fuel and gasohol.
23 Beginning January 1, 1990, each month the Department
24 shall pay into the Local Government Tax Fund 16% of the net
25 revenue realized for the preceding month from the 6.25%
26 general rate on the selling price of tangible personal
27 property.
28 Beginning November 1, 1998, and so long as the rate
29 remains at 1.25%, each month the Department shall pay into
30 the Local Government Tax Fund 80% of the net revenue realized
31 for the preceding month from the 1.25% rate on the selling
32 price of motor fuel and gasohol.
33 Of the remainder of the moneys received by the Department
34 pursuant to this Act, (a) 1.75% thereof shall be paid into
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1 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
2 and on and after July 1, 1989, 3.8% thereof shall be paid
3 into the Build Illinois Fund; provided, however, that if in
4 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
5 as the case may be, of the moneys received by the Department
6 and required to be paid into the Build Illinois Fund pursuant
7 to this Act, Section 9 of the Use Tax Act, Section 9 of the
8 Service Use Tax Act, and Section 9 of the Service Occupation
9 Tax Act, such Acts being hereinafter called the "Tax Acts"
10 and such aggregate of 2.2% or 3.8%, as the case may be, of
11 moneys being hereinafter called the "Tax Act Amount", and (2)
12 the amount transferred to the Build Illinois Fund from the
13 State and Local Sales Tax Reform Fund shall be less than the
14 Annual Specified Amount (as hereinafter defined), an amount
15 equal to the difference shall be immediately paid into the
16 Build Illinois Fund from other moneys received by the
17 Department pursuant to the Tax Acts; the "Annual Specified
18 Amount" means the amounts specified below for fiscal years
19 1986 through 1993:
20 Fiscal Year Annual Specified Amount
21 1986 $54,800,000
22 1987 $76,650,000
23 1988 $80,480,000
24 1989 $88,510,000
25 1990 $115,330,000
26 1991 $145,470,000
27 1992 $182,730,000
28 1993 $206,520,000;
29 and means the Certified Annual Debt Service Requirement (as
30 defined in Section 13 of the Build Illinois Bond Act) or the
31 Tax Act Amount, whichever is greater, for fiscal year 1994
32 and each fiscal year thereafter; and further provided, that
33 if on the last business day of any month the sum of (1) the
34 Tax Act Amount required to be deposited into the Build
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1 Illinois Bond Account in the Build Illinois Fund during such
2 month and (2) the amount transferred to the Build Illinois
3 Fund from the State and Local Sales Tax Reform Fund shall
4 have been less than 1/12 of the Annual Specified Amount, an
5 amount equal to the difference shall be immediately paid into
6 the Build Illinois Fund from other moneys received by the
7 Department pursuant to the Tax Acts; and, further provided,
8 that in no event shall the payments required under the
9 preceding proviso result in aggregate payments into the Build
10 Illinois Fund pursuant to this clause (b) for any fiscal year
11 in excess of the greater of (i) the Tax Act Amount or (ii)
12 the Annual Specified Amount for such fiscal year. The
13 amounts payable into the Build Illinois Fund under clause (b)
14 of the first sentence in this paragraph shall be payable only
15 until such time as the aggregate amount on deposit under each
16 trust indenture securing Bonds issued and outstanding
17 pursuant to the Build Illinois Bond Act is sufficient, taking
18 into account any future investment income, to fully provide,
19 in accordance with such indenture, for the defeasance of or
20 the payment of the principal of, premium, if any, and
21 interest on the Bonds secured by such indenture and on any
22 Bonds expected to be issued thereafter and all fees and costs
23 payable with respect thereto, all as certified by the
24 Director of the Bureau of the Budget. If on the last
25 business day of any month in which Bonds are outstanding
26 pursuant to the Build Illinois Bond Act, the aggregate of
27 moneys deposited in the Build Illinois Bond Account in the
28 Build Illinois Fund in such month shall be less than the
29 amount required to be transferred in such month from the
30 Build Illinois Bond Account to the Build Illinois Bond
31 Retirement and Interest Fund pursuant to Section 13 of the
32 Build Illinois Bond Act, an amount equal to such deficiency
33 shall be immediately paid from other moneys received by the
34 Department pursuant to the Tax Acts to the Build Illinois
SB1458 Engrossed -82- LRB9011307KDbd
1 Fund; provided, however, that any amounts paid to the Build
2 Illinois Fund in any fiscal year pursuant to this sentence
3 shall be deemed to constitute payments pursuant to clause (b)
4 of the first sentence of this paragraph and shall reduce the
5 amount otherwise payable for such fiscal year pursuant to
6 that clause (b). The moneys received by the Department
7 pursuant to this Act and required to be deposited into the
8 Build Illinois Fund are subject to the pledge, claim and
9 charge set forth in Section 12 of the Build Illinois Bond
10 Act.
11 Subject to payment of amounts into the Build Illinois
12 Fund as provided in the preceding paragraph or in any
13 amendment thereto hereafter enacted, the following specified
14 monthly installment of the amount requested in the
15 certificate of the Chairman of the Metropolitan Pier and
16 Exposition Authority provided under Section 8.25f of the
17 State Finance Act, but not in excess of sums designated as
18 "Total Deposit", shall be deposited in the aggregate from
19 collections under Section 9 of the Use Tax Act, Section 9 of
20 the Service Use Tax Act, Section 9 of the Service Occupation
21 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
22 into the McCormick Place Expansion Project Fund in the
23 specified fiscal years.
24 Fiscal Year Total Deposit
25 1993 $0
26 1994 53,000,000
27 1995 58,000,000
28 1996 61,000,000
29 1997 64,000,000
30 1998 68,000,000
31 1999 71,000,000
32 2000 75,000,000
33 2001 80,000,000
34 2002 84,000,000
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1 2003 89,000,000
2 2004 and 93,000,000
3 each fiscal year
4 thereafter that bonds
5 are outstanding under
6 Section 13.2 of the
7 Metropolitan Pier and
8 Exposition Authority
9 Act.
10 Beginning July 20, 1993 and in each month of each fiscal
11 year thereafter, one-eighth of the amount requested in the
12 certificate of the Chairman of the Metropolitan Pier and
13 Exposition Authority for that fiscal year, less the amount
14 deposited into the McCormick Place Expansion Project Fund by
15 the State Treasurer in the respective month under subsection
16 (g) of Section 13 of the Metropolitan Pier and Exposition
17 Authority Act, plus cumulative deficiencies in the deposits
18 required under this Section for previous months and years,
19 shall be deposited into the McCormick Place Expansion Project
20 Fund, until the full amount requested for the fiscal year,
21 but not in excess of the amount specified above as "Total
22 Deposit", has been deposited.
23 Subject to payment of amounts into the Build Illinois
24 Fund and the McCormick Place Expansion Project Fund pursuant
25 to the preceding paragraphs or in any amendment thereto
26 hereafter enacted, each month the Department shall pay into
27 the Local Government Distributive Fund 0.4% of the net
28 revenue realized for the preceding month from the 5% general
29 rate or 0.4% of 80% of the net revenue realized for the
30 preceding month from the 6.25% general rate, as the case may
31 be, on the selling price of tangible personal property which
32 amount shall, subject to appropriation, be distributed as
33 provided in Section 2 of the State Revenue Sharing Act. No
34 payments or distributions pursuant to this paragraph shall be
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1 made if the tax imposed by this Act on photoprocessing
2 products is declared unconstitutional, or if the proceeds
3 from such tax are unavailable for distribution because of
4 litigation.
5 Subject to payment of amounts into the Build Illinois
6 Fund, the McCormick Place Expansion Project to the preceding
7 paragraphs or in any amendments thereto hereafter enacted,
8 beginning July 1, 1993, the Department shall each month pay
9 into the Illinois Tax Increment Fund 0.27% of 80% of the net
10 revenue realized for the preceding month from the 6.25%
11 general rate on the selling price of tangible personal
12 property.
13 Of the remainder of the moneys received by the Department
14 pursuant to this Act, 75% thereof shall be paid into the
15 State Treasury and 25% shall be reserved in a special account
16 and used only for the transfer to the Common School Fund as
17 part of the monthly transfer from the General Revenue Fund in
18 accordance with Section 8a of the State Finance Act.
19 The Department may, upon separate written notice to a
20 taxpayer, require the taxpayer to prepare and file with the
21 Department on a form prescribed by the Department within not
22 less than 60 days after receipt of the notice an annual
23 information return for the tax year specified in the notice.
24 Such annual return to the Department shall include a
25 statement of gross receipts as shown by the retailer's last
26 Federal income tax return. If the total receipts of the
27 business as reported in the Federal income tax return do not
28 agree with the gross receipts reported to the Department of
29 Revenue for the same period, the retailer shall attach to his
30 annual return a schedule showing a reconciliation of the 2
31 amounts and the reasons for the difference. The retailer's
32 annual return to the Department shall also disclose the cost
33 of goods sold by the retailer during the year covered by such
34 return, opening and closing inventories of such goods for
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1 such year, costs of goods used from stock or taken from stock
2 and given away by the retailer during such year, payroll
3 information of the retailer's business during such year and
4 any additional reasonable information which the Department
5 deems would be helpful in determining the accuracy of the
6 monthly, quarterly or annual returns filed by such retailer
7 as provided for in this Section.
8 If the annual information return required by this Section
9 is not filed when and as required, the taxpayer shall be
10 liable as follows:
11 (i) Until January 1, 1994, the taxpayer shall be
12 liable for a penalty equal to 1/6 of 1% of the tax due
13 from such taxpayer under this Act during the period to be
14 covered by the annual return for each month or fraction
15 of a month until such return is filed as required, the
16 penalty to be assessed and collected in the same manner
17 as any other penalty provided for in this Act.
18 (ii) On and after January 1, 1994, the taxpayer
19 shall be liable for a penalty as described in Section 3-4
20 of the Uniform Penalty and Interest Act.
21 The chief executive officer, proprietor, owner or highest
22 ranking manager shall sign the annual return to certify the
23 accuracy of the information contained therein. Any person
24 who willfully signs the annual return containing false or
25 inaccurate information shall be guilty of perjury and
26 punished accordingly. The annual return form prescribed by
27 the Department shall include a warning that the person
28 signing the return may be liable for perjury.
29 The provisions of this Section concerning the filing of
30 an annual information return do not apply to a retailer who
31 is not required to file an income tax return with the United
32 States Government.
33 As soon as possible after the first day of each month,
34 upon certification of the Department of Revenue, the
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1 Comptroller shall order transferred and the Treasurer shall
2 transfer from the General Revenue Fund to the Motor Fuel Tax
3 Fund an amount equal to 1.7% of 80% of the net revenue
4 realized under this Act for the second preceding month;
5 except that this transfer shall not be made for the months
6 February through June, 1992.
7 Net revenue realized for a month shall be the revenue
8 collected by the State pursuant to this Act, less the amount
9 paid out during that month as refunds to taxpayers for
10 overpayment of liability.
11 For greater simplicity of administration, manufacturers,
12 importers and wholesalers whose products are sold at retail
13 in Illinois by numerous retailers, and who wish to do so, may
14 assume the responsibility for accounting and paying to the
15 Department all tax accruing under this Act with respect to
16 such sales, if the retailers who are affected do not make
17 written objection to the Department to this arrangement.
18 Any person who promotes, organizes, provides retail
19 selling space for concessionaires or other types of sellers
20 at the Illinois State Fair, DuQuoin State Fair, county fairs,
21 local fairs, art shows, flea markets and similar exhibitions
22 or events, including any transient merchant as defined by
23 Section 2 of the Transient Merchant Act of 1987, is required
24 to file a report with the Department providing the name of
25 the merchant's business, the name of the person or persons
26 engaged in merchant's business, the permanent address and
27 Illinois Retailers Occupation Tax Registration Number of the
28 merchant, the dates and location of the event and other
29 reasonable information that the Department may require. The
30 report must be filed not later than the 20th day of the month
31 next following the month during which the event with retail
32 sales was held. Any person who fails to file a report
33 required by this Section commits a business offense and is
34 subject to a fine not to exceed $250.
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1 Any person engaged in the business of selling tangible
2 personal property at retail as a concessionaire or other type
3 of seller at the Illinois State Fair, county fairs, art
4 shows, flea markets and similar exhibitions or events, or any
5 transient merchants, as defined by Section 2 of the Transient
6 Merchant Act of 1987, may be required to make a daily report
7 of the amount of such sales to the Department and to make a
8 daily payment of the full amount of tax due. The Department
9 shall impose this requirement when it finds that there is a
10 significant risk of loss of revenue to the State at such an
11 exhibition or event. Such a finding shall be based on
12 evidence that a substantial number of concessionaires or
13 other sellers who are not residents of Illinois will be
14 engaging in the business of selling tangible personal
15 property at retail at the exhibition or event, or other
16 evidence of a significant risk of loss of revenue to the
17 State. The Department shall notify concessionaires and other
18 sellers affected by the imposition of this requirement. In
19 the absence of notification by the Department, the
20 concessionaires and other sellers shall file their returns as
21 otherwise required in this Section.
22 (Source: P.A. 88-45; 88-116; 88-194; 88-480; 88-547, eff.
23 6-30-94; 88-660, eff. 9-16-94; 88-669, eff. 11-29-94; 88-670,
24 eff. 12-2-94; 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
25 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
26 (Text of Section after amendment by P.A. 90-491)
27 Sec. 3. Except as provided in this Section, on or before
28 the twentieth day of each calendar month, every person
29 engaged in the business of selling tangible personal property
30 at retail in this State during the preceding calendar month
31 shall file a return with the Department, stating:
32 1. The name of the seller;
33 2. His residence address and the address of his
34 principal place of business and the address of the
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1 principal place of business (if that is a different
2 address) from which he engages in the business of selling
3 tangible personal property at retail in this State;
4 3. Total amount of receipts received by him during
5 the preceding calendar month or quarter, as the case may
6 be, from sales of tangible personal property, and from
7 services furnished, by him during such preceding calendar
8 month or quarter;
9 4. Total amount received by him during the
10 preceding calendar month or quarter on charge and time
11 sales of tangible personal property, and from services
12 furnished, by him prior to the month or quarter for which
13 the return is filed;
14 5. Deductions allowed by law;
15 6. Gross receipts which were received by him during
16 the preceding calendar month or quarter and upon the
17 basis of which the tax is imposed;
18 7. The amount of credit provided in Section 2d of
19 this Act;
20 8. The amount of tax due;
21 9. The signature of the taxpayer; and
22 10. Such other reasonable information as the
23 Department may require.
24 If a taxpayer fails to sign a return within 30 days after
25 the proper notice and demand for signature by the Department,
26 the return shall be considered valid and any amount shown to
27 be due on the return shall be deemed assessed.
28 Each return shall be accompanied by the statement of
29 prepaid tax issued pursuant to Section 2e for which credit is
30 claimed.
31 A retailer may accept a Manufacturer's Purchase Credit
32 certification from a purchaser in satisfaction of Use Tax as
33 provided in Section 3-85 of the Use Tax Act if the purchaser
34 provides the appropriate documentation as required by Section
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1 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
2 certification, accepted by a retailer as provided in Section
3 3-85 of the Use Tax Act, may be used by that retailer to
4 satisfy Retailers' Occupation Tax liability in the amount
5 claimed in the certification, not to exceed 6.25% of the
6 receipts subject to tax from a qualifying purchase.
7 The Department may require returns to be filed on a
8 quarterly basis. If so required, a return for each calendar
9 quarter shall be filed on or before the twentieth day of the
10 calendar month following the end of such calendar quarter.
11 The taxpayer shall also file a return with the Department for
12 each of the first two months of each calendar quarter, on or
13 before the twentieth day of the following calendar month,
14 stating:
15 1. The name of the seller;
16 2. The address of the principal place of business
17 from which he engages in the business of selling tangible
18 personal property at retail in this State;
19 3. The total amount of taxable receipts received by
20 him during the preceding calendar month from sales of
21 tangible personal property by him during such preceding
22 calendar month, including receipts from charge and time
23 sales, but less all deductions allowed by law;
24 4. The amount of credit provided in Section 2d of
25 this Act;
26 5. The amount of tax due; and
27 6. Such other reasonable information as the
28 Department may require.
29 If a total amount of less than $1 is payable, refundable
30 or creditable, such amount shall be disregarded if it is less
31 than 50 cents and shall be increased to $1 if it is 50 cents
32 or more.
33 Beginning October 1, 1993, a taxpayer who has an average
34 monthly tax liability of $150,000 or more shall make all
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1 payments required by rules of the Department by electronic
2 funds transfer. Beginning October 1, 1994, a taxpayer who
3 has an average monthly tax liability of $100,000 or more
4 shall make all payments required by rules of the Department
5 by electronic funds transfer. Beginning October 1, 1995, a
6 taxpayer who has an average monthly tax liability of $50,000
7 or more shall make all payments required by rules of the
8 Department by electronic funds transfer. The term "average
9 monthly tax liability" shall be the sum of the taxpayer's
10 liabilities under this Act, and under all other State and
11 local occupation and use tax laws administered by the
12 Department, for the immediately preceding calendar year
13 divided by 12.
14 Before August 1 of each year beginning in 1993, the
15 Department shall notify all taxpayers required to make
16 payments by electronic funds transfer. All taxpayers
17 required to make payments by electronic funds transfer shall
18 make those payments for a minimum of one year beginning on
19 October 1.
20 Any taxpayer not required to make payments by electronic
21 funds transfer may make payments by electronic funds transfer
22 with the permission of the Department.
23 All taxpayers required to make payment by electronic
24 funds transfer and any taxpayers authorized to voluntarily
25 make payments by electronic funds transfer shall make those
26 payments in the manner authorized by the Department.
27 The Department shall adopt such rules as are necessary to
28 effectuate a program of electronic funds transfer and the
29 requirements of this Section.
30 Any amount which is required to be shown or reported on
31 any return or other document under this Act shall, if such
32 amount is not a whole-dollar amount, be increased to the
33 nearest whole-dollar amount in any case where the fractional
34 part of a dollar is 50 cents or more, and decreased to the
SB1458 Engrossed -91- LRB9011307KDbd
1 nearest whole-dollar amount where the fractional part of a
2 dollar is less than 50 cents.
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 with 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 Where the same person has more than one business
31 registered with the Department under separate registrations
32 under this Act, such person may not file each return that is
33 due as a single return covering all such registered
34 businesses, but shall file separate returns for each such
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1 registered business.
2 In addition, with respect to motor vehicles, watercraft,
3 aircraft, and trailers that are required to be registered
4 with an agency of this State, every retailer selling this
5 kind of tangible personal property shall file, with the
6 Department, upon a form to be prescribed and supplied by the
7 Department, a separate return for each such item of tangible
8 personal property which the retailer sells, except that
9 where, in the same transaction, a retailer of aircraft,
10 watercraft, motor vehicles or trailers transfers more than
11 one aircraft, watercraft, motor vehicle or trailer to another
12 aircraft, watercraft, motor vehicle retailer or trailer
13 retailer for the purpose of resale, that seller for resale
14 may report the transfer of all aircraft, watercraft, motor
15 vehicles or trailers involved in that transaction to the
16 Department on the same uniform invoice-transaction reporting
17 return form. For purposes of this Section, "watercraft"
18 means a Class 2, Class 3, or Class 4 watercraft as defined in
19 Section 3-2 of the Boat Registration and Safety Act, a
20 personal watercraft, or any boat equipped with an inboard
21 motor.
22 Any retailer who sells only motor vehicles, watercraft,
23 aircraft, or trailers that are required to be registered with
24 an agency of this State, so that all retailers' occupation
25 tax liability is required to be reported, and is reported, on
26 such transaction reporting returns and who is not otherwise
27 required to file monthly or quarterly returns, need not file
28 monthly or quarterly returns. However, those retailers shall
29 be required to file returns on an annual basis.
30 The transaction reporting return, in the case of motor
31 vehicles or trailers that are required to be registered with
32 an agency of this State, shall be the same document as the
33 Uniform Invoice referred to in Section 5-402 of The Illinois
34 Vehicle Code and must show the name and address of the
SB1458 Engrossed -93- LRB9011307KDbd
1 seller; the name and address of the purchaser; the amount of
2 the selling price including the amount allowed by the
3 retailer for traded-in property, if any; the amount allowed
4 by the retailer for the traded-in tangible personal property,
5 if any, to the extent to which Section 1 of this Act allows
6 an exemption for the value of traded-in property; the balance
7 payable after deducting such trade-in allowance from the
8 total selling price; the amount of tax due from the retailer
9 with respect to such transaction; the amount of tax collected
10 from the purchaser by the retailer on such transaction (or
11 satisfactory evidence that such tax is not due in that
12 particular instance, if that is claimed to be the fact); the
13 place and date of the sale; a sufficient identification of
14 the property sold; such other information as is required in
15 Section 5-402 of The Illinois Vehicle Code, and such other
16 information as the Department may reasonably require.
17 The transaction reporting return in the case of
18 watercraft or aircraft must show the name and address of the
19 seller; the name and address of the purchaser; the amount of
20 the selling price including the amount allowed by the
21 retailer for traded-in property, if any; the amount allowed
22 by the retailer for the traded-in tangible personal property,
23 if any, to the extent to which Section 1 of this Act allows
24 an exemption for the value of traded-in property; the balance
25 payable after deducting such trade-in allowance from the
26 total selling price; the amount of tax due from the retailer
27 with respect to such transaction; the amount of tax collected
28 from the purchaser by the retailer on such transaction (or
29 satisfactory evidence that such tax is not due in that
30 particular instance, if that is claimed to be the fact); the
31 place and date of the sale, a sufficient identification of
32 the property sold, and such other information as the
33 Department may reasonably require.
34 Such transaction reporting return shall be filed not
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1 later than 20 days after the day of delivery of the item that
2 is being sold, but may be filed by the retailer at any time
3 sooner than that if he chooses to do so. The transaction
4 reporting return and tax remittance or proof of exemption
5 from the Illinois use tax may be transmitted to the
6 Department by way of the State agency with which, or State
7 officer with whom the tangible personal property must be
8 titled or registered (if titling or registration is required)
9 if the Department and such agency or State officer determine
10 that this procedure will expedite the processing of
11 applications for title or registration.
12 With each such transaction reporting return, the retailer
13 shall remit the proper amount of tax due (or shall submit
14 satisfactory evidence that the sale is not taxable if that is
15 the case), to the Department or its agents, whereupon the
16 Department shall issue, in the purchaser's name, a use tax
17 receipt (or a certificate of exemption if the Department is
18 satisfied that the particular sale is tax exempt) which such
19 purchaser may submit to the agency with which, or State
20 officer with whom, he must title or register the tangible
21 personal property that is involved (if titling or
22 registration is required) in support of such purchaser's
23 application for an Illinois certificate or other evidence of
24 title or registration to such tangible personal property.
25 No retailer's failure or refusal to remit tax under this
26 Act precludes a user, who has paid the proper tax to the
27 retailer, from obtaining his certificate of title or other
28 evidence of title or registration (if titling or registration
29 is required) upon satisfying the Department that such user
30 has paid the proper tax (if tax is due) to the retailer. The
31 Department shall adopt appropriate rules to carry out the
32 mandate of this paragraph.
33 If the user who would otherwise pay tax to the retailer
34 wants the transaction reporting return filed and the payment
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1 of the tax or proof of exemption made to the Department
2 before the retailer is willing to take these actions and such
3 user has not paid the tax to the retailer, such user may
4 certify to the fact of such delay by the retailer and may
5 (upon the Department being satisfied of the truth of such
6 certification) transmit the information required by the
7 transaction reporting return and the remittance for tax or
8 proof of exemption directly to the Department and obtain his
9 tax receipt or exemption determination, in which event the
10 transaction reporting return and tax remittance (if a tax
11 payment was required) shall be credited by the Department to
12 the proper retailer's account with the Department, but
13 without the 2.1% or 1.75% discount provided for in this
14 Section being allowed. When the user pays the tax directly
15 to the Department, he shall pay the tax in the same amount
16 and in the same form in which it would be remitted if the tax
17 had been remitted to the Department by the retailer.
18 Refunds made by the seller during the preceding return
19 period to purchasers, on account of tangible personal
20 property returned to the seller, shall be allowed as a
21 deduction under subdivision 5 of his monthly or quarterly
22 return, as the case may be, in case the seller had
23 theretofore included the receipts from the sale of such
24 tangible personal property in a return filed by him and had
25 paid the tax imposed by this Act with respect to such
26 receipts.
27 Where the seller is a corporation, the return filed on
28 behalf of such corporation shall be signed by the president,
29 vice-president, secretary or treasurer or by the properly
30 accredited agent of such corporation.
31 Where the seller is a limited liability company, the
32 return filed on behalf of the limited liability company shall
33 be signed by a manager, member, or properly accredited agent
34 of the limited liability company.
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1 Except as provided in this Section, the retailer filing
2 the return under this Section shall, at the time of filing
3 such return, pay to the Department the amount of tax imposed
4 by this Act less a discount of 2.1% prior to January 1, 1990
5 and 1.75% on and after January 1, 1990, or $5 per calendar
6 year, whichever is greater, which is allowed to reimburse the
7 retailer for the expenses incurred in keeping records,
8 preparing and filing returns, remitting the tax and supplying
9 data to the Department on request. Any prepayment made
10 pursuant to Section 2d of this Act shall be included in the
11 amount on which such 2.1% or 1.75% discount is computed. In
12 the case of retailers who report and pay the tax on a
13 transaction by transaction basis, as provided in this
14 Section, such discount shall be taken with each such tax
15 remittance instead of when such retailer files his periodic
16 return.
17 If the taxpayer's average monthly tax liability to the
18 Department under this Act, the Use Tax Act, the Service
19 Occupation Tax Act, and the Service Use Tax Act, excluding
20 any liability for prepaid sales tax to be remitted in
21 accordance with Section 2d of this Act, was $10,000 or more
22 during the preceding 4 complete calendar quarters, he shall
23 file a return with the Department each month by the 20th day
24 of the month next following the month during which such tax
25 liability is incurred and shall make payments to the
26 Department on or before the 7th, 15th, 22nd and last day of
27 the month during which such liability is incurred. If the
28 month during which such tax liability is incurred began prior
29 to January 1, 1985, each payment shall be in an amount equal
30 to 1/4 of the taxpayer's actual liability for the month or an
31 amount set by the Department not to exceed 1/4 of the average
32 monthly liability of the taxpayer to the Department for the
33 preceding 4 complete calendar quarters (excluding the month
34 of highest liability and the month of lowest liability in
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1 such 4 quarter period). If the month during which such tax
2 liability is incurred begins on or after January 1, 1985 and
3 prior to January 1, 1987, each payment shall be in an amount
4 equal to 22.5% of the taxpayer's actual liability for the
5 month or 27.5% of the taxpayer's liability for the same
6 calendar month of the preceding year. If the month during
7 which such tax liability is incurred begins on or after
8 January 1, 1987 and prior to January 1, 1988, each payment
9 shall be in an amount equal to 22.5% of the taxpayer's actual
10 liability for the month or 26.25% of the taxpayer's liability
11 for the same calendar month of the preceding year. If the
12 month during which such tax liability is incurred begins on
13 or after January 1, 1988, and prior to January 1, 1989, or
14 begins on or after January 1, 1996, each payment shall be in
15 an amount equal to 22.5% of the taxpayer's actual liability
16 for the month or 25% of the taxpayer's liability for the same
17 calendar month of the preceding year. If the month during
18 which such tax liability is incurred begins on or after
19 January 1, 1989, and prior to January 1, 1996, each payment
20 shall be in an amount equal to 22.5% of the taxpayer's actual
21 liability for the month or 25% of the taxpayer's liability
22 for the same calendar month of the preceding year or 100% of
23 the taxpayer's actual liability for the quarter monthly
24 reporting period. The amount of such quarter monthly
25 payments shall be credited against the final tax liability of
26 the taxpayer's return for that month. Once applicable, the
27 requirement of the making of quarter monthly payments to the
28 Department by taxpayers having an average monthly tax
29 liability of $10,000 or more as determined in the manner
30 provided above shall continue until such taxpayer's average
31 monthly liability to the Department during the preceding 4
32 complete calendar quarters (excluding the month of highest
33 liability and the month of lowest liability) is less than
34 $9,000, or until such taxpayer's average monthly liability to
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1 the Department as computed for each calendar quarter of the 4
2 preceding complete calendar quarter period is less than
3 $10,000. However, if a taxpayer can show the Department that
4 a substantial change in the taxpayer's business has occurred
5 which causes the taxpayer to anticipate that his average
6 monthly tax liability for the reasonably foreseeable future
7 will fall below $10,000, then such taxpayer may petition the
8 Department for a change in such taxpayer's reporting status.
9 The Department shall change such taxpayer's reporting status
10 unless it finds that such change is seasonal in nature and
11 not likely to be long term. If any such quarter monthly
12 payment is not paid at the time or in the amount required by
13 this Section, then the taxpayer shall be liable for penalties
14 and interest on the difference between the minimum amount due
15 as a payment and the amount of such quarter monthly payment
16 actually and timely paid, except insofar as the taxpayer has
17 previously made payments for that month to the Department in
18 excess of the minimum payments previously due as provided in
19 this Section. The Department shall make reasonable rules and
20 regulations to govern the quarter monthly payment amount and
21 quarter monthly payment dates for taxpayers who file on other
22 than a calendar monthly basis.
23 Without regard to whether a taxpayer is required to make
24 quarter monthly payments as specified above, any taxpayer who
25 is required by Section 2d of this Act to collect and remit
26 prepaid taxes and has collected prepaid taxes which average
27 in excess of $25,000 per month during the preceding 2
28 complete calendar quarters, shall file a return with the
29 Department as required by Section 2f and shall make payments
30 to the Department on or before the 7th, 15th, 22nd and last
31 day of the month during which such liability is incurred. If
32 the month during which such tax liability is incurred began
33 prior to the effective date of this amendatory Act of 1985,
34 each payment shall be in an amount not less than 22.5% of the
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1 taxpayer's actual liability under Section 2d. If the month
2 during which such tax liability is incurred begins on or
3 after January 1, 1986, each payment shall be in an amount
4 equal to 22.5% of the taxpayer's actual liability for the
5 month or 27.5% of the taxpayer's liability for the same
6 calendar month of the preceding calendar year. If the month
7 during which such tax liability is incurred begins on or
8 after January 1, 1987, each payment shall be in an amount
9 equal to 22.5% of the taxpayer's actual liability for the
10 month or 26.25% of the taxpayer's liability for the same
11 calendar month of the preceding year. The amount of such
12 quarter monthly payments shall be credited against the final
13 tax liability of the taxpayer's return for that month filed
14 under this Section or Section 2f, as the case may be. Once
15 applicable, the requirement of the making of quarter monthly
16 payments to the Department pursuant to this paragraph shall
17 continue until such taxpayer's average monthly prepaid tax
18 collections during the preceding 2 complete calendar quarters
19 is $25,000 or less. If any such quarter monthly payment is
20 not paid at the time or in the amount required, the taxpayer
21 shall be liable for penalties and interest on such
22 difference, except insofar as the taxpayer has previously
23 made payments for that month in excess of the minimum
24 payments previously due.
25 If any payment provided for in this Section exceeds the
26 taxpayer's liabilities under this Act, the Use Tax Act, the
27 Service Occupation Tax Act and the Service Use Tax Act, as
28 shown on an original monthly return, the Department shall, if
29 requested by the taxpayer, issue to the taxpayer a credit
30 memorandum no later than 30 days after the date of payment.
31 The credit evidenced by such credit memorandum may be
32 assigned by the taxpayer to a similar taxpayer under this
33 Act, the Use Tax Act, the Service Occupation Tax Act or the
34 Service Use Tax Act, in accordance with reasonable rules and
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1 regulations to be prescribed by the Department. If no such
2 request is made, the taxpayer may credit such excess payment
3 against tax liability subsequently to be remitted to the
4 Department under this Act, the Use Tax Act, the Service
5 Occupation Tax Act or the Service Use Tax Act, in accordance
6 with reasonable rules and regulations prescribed by the
7 Department. If the Department subsequently determined that
8 all or any part of the credit taken was not actually due to
9 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
10 shall be reduced by 2.1% or 1.75% of the difference between
11 the credit taken and that actually due, and that taxpayer
12 shall be liable for penalties and interest on such
13 difference.
14 If a retailer of motor fuel is entitled to a credit under
15 Section 2d of this Act which exceeds the taxpayer's liability
16 to the Department under this Act for the month which the
17 taxpayer is filing a return, the Department shall issue the
18 taxpayer a credit memorandum for the excess.
19 Beginning January 1, 1990, each month the Department
20 shall pay into the Local Government Tax Fund, a special fund
21 in the State treasury which is hereby created, the net
22 revenue realized for the preceding month from the 1% tax on
23 sales of food for human consumption which is to be consumed
24 off the premises where it is sold (other than alcoholic
25 beverages, soft drinks and food which has been prepared for
26 immediate consumption) and prescription and nonprescription
27 medicines, drugs, medical appliances and insulin, urine
28 testing materials, syringes and needles used by diabetics.
29 Beginning January 1, 1990, each month the Department
30 shall pay into the County and Mass Transit District Fund, a
31 special fund in the State treasury which is hereby created,
32 4% of the net revenue realized for the preceding month from
33 the 6.25% general rate.
34 Beginning November 1, 1998, and so long as the rate
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1 remains at 1.25%, each month the Department shall pay into
2 the County and Mass Transit District Fund 20% of the net
3 revenue realized for the preceding month from the 1.25% rate
4 on the selling price of motor fuel and gasohol.
5 Beginning January 1, 1990, each month the Department
6 shall pay into the Local Government Tax Fund 16% 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 Beginning November 1, 1998, and so long as the rate
11 remains at 1.25%, each month the Department shall pay into
12 the Local Government Tax Fund 80% of the net revenue realized
13 for the preceding month from the 1.25% rate on the selling
14 price of motor fuel and gasohol.
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 this Act, Section 9 of the Use Tax Act, Section 9 of the
24 Service Use Tax Act, and Section 9 of the Service Occupation
25 Tax Act, such Acts being hereinafter called the "Tax Acts"
26 and such aggregate of 2.2% or 3.8%, as the case may be, of
27 moneys being hereinafter called the "Tax Act Amount", and (2)
28 the amount transferred to the Build Illinois Fund from the
29 State and Local Sales Tax Reform Fund shall be less than the
30 Annual Specified Amount (as hereinafter defined), an amount
31 equal to the difference shall be immediately paid into the
32 Build Illinois Fund from other moneys received by the
33 Department pursuant to the Tax Acts; the "Annual Specified
34 Amount" means the amounts specified below for fiscal years
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1 1986 through 1993:
2 Fiscal Year Annual Specified Amount
3 1986 $54,800,000
4 1987 $76,650,000
5 1988 $80,480,000
6 1989 $88,510,000
7 1990 $115,330,000
8 1991 $145,470,000
9 1992 $182,730,000
10 1993 $206,520,000;
11 and means the Certified Annual Debt Service Requirement (as
12 defined in Section 13 of the Build Illinois Bond Act) or the
13 Tax Act Amount, whichever is greater, for fiscal year 1994
14 and each fiscal year thereafter; and further provided, that
15 if on the last business day of any month the sum of (1) the
16 Tax Act Amount required to be deposited into the Build
17 Illinois Bond Account in the Build Illinois Fund during such
18 month and (2) the amount transferred to the Build Illinois
19 Fund from the State and Local Sales Tax Reform Fund shall
20 have been less than 1/12 of the Annual Specified Amount, an
21 amount equal to the difference shall be immediately paid into
22 the Build Illinois Fund from other moneys received by the
23 Department pursuant to the Tax Acts; and, further provided,
24 that in no event shall the payments required under the
25 preceding proviso result in aggregate payments into the Build
26 Illinois Fund pursuant to this clause (b) for any fiscal year
27 in excess of the greater of (i) the Tax Act Amount or (ii)
28 the Annual Specified Amount for such fiscal year. The
29 amounts payable into the Build Illinois Fund under clause (b)
30 of the first sentence in this paragraph shall be payable only
31 until such time as the aggregate amount on deposit under each
32 trust indenture securing Bonds issued and outstanding
33 pursuant to the Build Illinois Bond Act is sufficient, taking
34 into account any future investment income, to fully provide,
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1 in accordance with such indenture, for the defeasance of or
2 the payment of the principal of, premium, if any, and
3 interest on the Bonds secured by such indenture and on any
4 Bonds expected to be issued thereafter and all fees and costs
5 payable with respect thereto, all as certified by the
6 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
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 first sentence of this paragraph and shall reduce the
21 amount otherwise payable for such fiscal year pursuant to
22 that clause (b). The moneys received by the Department
23 pursuant to this Act and required to be deposited into the
24 Build Illinois Fund are subject to the pledge, claim and
25 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 sums designated as
34 "Total Deposit", shall be deposited in the aggregate from
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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,
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1 shall be deposited into the McCormick Place Expansion Project
2 Fund, until the full amount requested for the fiscal year,
3 but not in excess of the amount specified above as "Total
4 Deposit", has been deposited.
5 Subject to payment of amounts into the Build Illinois
6 Fund and the McCormick Place Expansion Project Fund pursuant
7 to the preceding paragraphs or in any amendment thereto
8 hereafter enacted, each month the Department shall pay into
9 the Local Government Distributive Fund 0.4% of the net
10 revenue realized for the preceding month from the 5% general
11 rate or 0.4% of 80% of the net revenue realized for the
12 preceding month from the 6.25% general rate, as the case may
13 be, on the selling price of tangible personal property which
14 amount shall, subject to appropriation, be distributed as
15 provided in Section 2 of the State Revenue Sharing Act. No
16 payments or distributions pursuant to this paragraph shall be
17 made if the tax imposed by this Act on photoprocessing
18 products is declared unconstitutional, or if the proceeds
19 from such tax are unavailable for distribution because of
20 litigation.
21 Subject to payment of amounts into the Build Illinois
22 Fund, the McCormick Place Expansion Project 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.
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1 The Department may, upon separate written notice to a
2 taxpayer, require the taxpayer to prepare and file with the
3 Department on a form prescribed by the Department within not
4 less than 60 days after receipt of the notice an annual
5 information return for the tax year specified in the notice.
6 Such annual return to the Department shall include a
7 statement of gross receipts as shown by the retailer's last
8 Federal income tax return. If the total receipts of the
9 business as reported in the Federal income tax return do not
10 agree with the gross receipts reported to the Department of
11 Revenue for the same period, the retailer shall attach to his
12 annual return a schedule showing a reconciliation of the 2
13 amounts and the reasons for the difference. The retailer's
14 annual return to the Department shall also disclose the cost
15 of goods sold by the retailer during the year covered by such
16 return, opening and closing inventories of such goods for
17 such year, costs of goods used from stock or taken from stock
18 and given away by the retailer during such year, payroll
19 information of the retailer's business during such year and
20 any additional reasonable information which the Department
21 deems would be helpful in determining the accuracy of the
22 monthly, quarterly or annual returns filed by such retailer
23 as provided for in this Section.
24 If the annual information return required by this Section
25 is not filed when and as required, the taxpayer shall be
26 liable as follows:
27 (i) Until January 1, 1994, the taxpayer shall be
28 liable for a penalty equal to 1/6 of 1% of the tax due
29 from such taxpayer under this Act during the period to be
30 covered by the annual return for each month or fraction
31 of a month until such return is filed as required, the
32 penalty to be assessed and collected in the same manner
33 as any other penalty provided for in this Act.
34 (ii) On and after January 1, 1994, the taxpayer
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1 shall be liable for a penalty as described in Section 3-4
2 of the Uniform Penalty and Interest Act.
3 The chief executive officer, proprietor, owner or highest
4 ranking manager shall sign the annual return to certify the
5 accuracy of the information contained therein. Any person
6 who willfully signs the annual return containing false or
7 inaccurate information shall be guilty of perjury and
8 punished accordingly. The annual return form prescribed by
9 the Department shall include a warning that the person
10 signing the return may be liable for perjury.
11 The provisions of this Section concerning the filing of
12 an annual information return do not apply to a retailer who
13 is not required to file an income tax return with the United
14 States Government.
15 As soon as possible after the first day of each month,
16 upon certification of the Department of Revenue, the
17 Comptroller shall order transferred and the Treasurer shall
18 transfer from the General Revenue Fund to the Motor Fuel Tax
19 Fund an amount equal to 1.7% of 80% of the net revenue
20 realized under this Act for the second preceding month;
21 except that this transfer shall not be made for the months
22 February through June, 1992.
23 Net revenue realized for a month shall be the revenue
24 collected by the State pursuant to this Act, less the amount
25 paid out during that month as refunds to taxpayers for
26 overpayment of liability.
27 For greater simplicity of administration, manufacturers,
28 importers and wholesalers whose products are sold at retail
29 in Illinois by numerous retailers, and who wish to do so, may
30 assume the responsibility for accounting and paying to the
31 Department all tax accruing under this Act with respect to
32 such sales, if the retailers who are affected do not make
33 written objection to the Department to this arrangement.
34 Any person who promotes, organizes, provides retail
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1 selling space for concessionaires or other types of sellers
2 at the Illinois State Fair, DuQuoin State Fair, county fairs,
3 local fairs, art shows, flea markets and similar exhibitions
4 or events, including any transient merchant as defined by
5 Section 2 of the Transient Merchant Act of 1987, is required
6 to file a report with the Department providing the name of
7 the merchant's business, the name of the person or persons
8 engaged in merchant's business, the permanent address and
9 Illinois Retailers Occupation Tax Registration Number of the
10 merchant, the dates and location of the event and other
11 reasonable information that the Department may require. The
12 report must be filed not later than the 20th day of the month
13 next following the month during which the event with retail
14 sales was held. Any person who fails to file a report
15 required by this Section commits a business offense and is
16 subject to a fine not to exceed $250.
17 Any person engaged in the business of selling tangible
18 personal property at retail as a concessionaire or other type
19 of seller at the Illinois State Fair, county fairs, art
20 shows, flea markets and similar exhibitions or events, or any
21 transient merchants, as defined by Section 2 of the Transient
22 Merchant Act of 1987, may be required to make a daily report
23 of the amount of such sales to the Department and to make a
24 daily payment of the full amount of tax due. The Department
25 shall impose this requirement when it finds that there is a
26 significant risk of loss of revenue to the State at such an
27 exhibition or event. Such a finding shall be based on
28 evidence that a substantial number of concessionaires or
29 other sellers who are not residents of Illinois will be
30 engaging in the business of selling tangible personal
31 property at retail at the exhibition or event, or other
32 evidence of a significant risk of loss of revenue to the
33 State. The Department shall notify concessionaires and other
34 sellers affected by the imposition of this requirement. In
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1 the absence of notification by the Department, the
2 concessionaires and other sellers shall file their returns as
3 otherwise required in this Section.
4 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
5 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff.
6 1-1-99.)
7 Section 25. The Counties Code is amended by changing
8 Sections 5-1006, 5-1006.5, 5-1007, and 5-1035.1 as follows:
9 (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
10 Sec. 5-1006. Home Rule County Retailers' Occupation Tax.
11 Any county that is a home rule unit may impose a tax upon all
12 persons engaged in the business of selling tangible personal
13 property, other than an item of tangible personal property
14 titled or registered with an agency of this State's
15 government, at retail in the county on the gross receipts
16 from such sales made in the course of their business. If
17 imposed, this tax shall only be imposed in 1/4% increments.
18 On and after September 1, 1991, this additional tax may not
19 be imposed on the sales of food for human consumption which
20 is to be consumed off the premises where it is sold (other
21 than alcoholic beverages, soft drinks and food which has been
22 prepared for immediate consumption) and prescription and
23 nonprescription medicines, drugs, medical appliances and
24 insulin, urine testing materials, syringes and needles used
25 by diabetics. The tax imposed by a home rule county pursuant
26 to this Section and all civil penalties that may be assessed
27 as an incident thereof shall be collected and enforced by the
28 State Department of Revenue. The certificate of registration
29 that is issued by the Department to a retailer under the
30 Retailers' Occupation Tax Act shall permit the retailer to
31 engage in a business that is taxable under any ordinance or
32 resolution enacted pursuant to this Section without
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1 registering separately with the Department under such
2 ordinance or resolution or under this Section. The
3 Department shall have full power to administer and enforce
4 this Section; to collect all taxes and penalties due
5 hereunder; to dispose of taxes and penalties so collected in
6 the manner hereinafter provided; and to determine all rights
7 to credit memoranda arising on account of the erroneous
8 payment of tax or penalty hereunder. In the administration
9 of, and compliance with, this Section, the Department and
10 persons who are subject to this Section shall have the same
11 rights, remedies, privileges, immunities, powers and duties,
12 and be subject to the same conditions, restrictions,
13 limitations, penalties and definitions of terms, and employ
14 the same modes of procedure, as are prescribed in Sections 1,
15 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to
16 all provisions therein other than the State rate of tax), 4,
17 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b,
18 6c, 7, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation
19 Tax Act and Section 3-7 of the Uniform Penalty and Interest
20 Act, as fully as if those provisions were set forth herein.
21 No tax may be imposed by a home rule county pursuant to
22 this Section unless the county also imposes a tax at the same
23 rate pursuant to Section 5-1007.
24 A home rule county that has not imposed a tax under this
25 Section on the sale of motor fuel or gasohol before the
26 effective date of this amendatory Act of 1998 shall not
27 impose such a tax on or after that date. A home rule county
28 that has imposed a tax under this Section on the sale of
29 motor fuel or gasohol before the effective date of this
30 amendatory Act of 1998 shall not increase the rate of the tax
31 on or after that date. This amendatory Act of 1998 is a
32 denial and limitation of home rule powers to tax under
33 subsection (g) of Section 6 of Article VII of the Illinois
34 Constitution.
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1 Persons subject to any tax imposed pursuant to the
2 authority granted in this Section may reimburse themselves
3 for their seller's tax liability hereunder by separately
4 stating such tax as an additional charge, which charge may be
5 stated in combination, in a single amount, with State tax
6 which sellers are required to collect under the Use Tax Act,
7 pursuant to such bracket schedules as the Department may
8 prescribe.
9 Whenever the Department determines that a refund should
10 be made under this Section to a claimant instead of issuing a
11 credit memorandum, the Department shall notify the State
12 Comptroller, who shall cause the order to be drawn for the
13 amount specified and to the person named in the notification
14 from the Department. The refund shall be paid by the State
15 Treasurer out of the home rule county retailers' occupation
16 tax fund.
17 The Department shall forthwith pay over to the State
18 Treasurer, ex officio, as trustee, all taxes and penalties
19 collected hereunder. On or before the 25th day of each
20 calendar month, the Department shall prepare and certify to
21 the Comptroller the disbursement of stated sums of money to
22 named counties, the counties to be those from which retailers
23 have paid taxes or penalties hereunder to the Department
24 during the second preceding calendar month. The amount to be
25 paid to each county shall be the amount (not including credit
26 memoranda) collected hereunder during the second preceding
27 calendar month by the Department plus an amount the
28 Department determines is necessary to offset any amounts that
29 were erroneously paid to a different taxing body, and not
30 including an amount equal to the amount of refunds made
31 during the second preceding calendar month by the Department
32 on behalf of such county, and not including any amount which
33 the Department determines is necessary to offset any amounts
34 which were payable to a different taxing body but were
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1 erroneously paid to the county. Within 10 days after receipt,
2 by the Comptroller, of the disbursement certification to the
3 counties provided for in this Section to be given to the
4 Comptroller by the Department, the Comptroller shall cause
5 the orders to be drawn for the respective amounts in
6 accordance with the directions contained in the
7 certification.
8 In addition to the disbursement required by the preceding
9 paragraph, an allocation shall be made in March of each year
10 to each county that received more than $500,000 in
11 disbursements under the preceding paragraph in the preceding
12 calendar year. The allocation shall be in an amount equal to
13 the average monthly distribution made to each such county
14 under the preceding paragraph during the preceding calendar
15 year (excluding the 2 months of highest receipts). The
16 distribution made in March of each year subsequent to the
17 year in which an allocation was made pursuant to this
18 paragraph and the preceding paragraph shall be reduced by the
19 amount allocated and disbursed under this paragraph in the
20 preceding calendar year. The Department shall prepare and
21 certify to the Comptroller for disbursement the allocations
22 made in accordance with this paragraph.
23 For the purpose of determining the local governmental
24 unit whose tax is applicable, a retail sale by a producer of
25 coal or other mineral mined in Illinois is a sale at retail
26 at the place where the coal or other mineral mined in
27 Illinois is extracted from the earth. This paragraph does
28 not apply to coal or other mineral when it is delivered or
29 shipped by the seller to the purchaser at a point outside
30 Illinois so that the sale is exempt under the United States
31 Constitution as a sale in interstate or foreign commerce.
32 Nothing in this Section shall be construed to authorize a
33 county to impose a tax upon the privilege of engaging in any
34 business which under the Constitution of the United States
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1 may not be made the subject of taxation by this State.
2 An ordinance or resolution imposing or discontinuing a
3 tax hereunder or effecting a change in the rate thereof shall
4 be adopted and a certified copy thereof filed with the
5 Department on or before the first day of June, whereupon the
6 Department shall proceed to administer and enforce this
7 Section as of the first day of September next following such
8 adoption and filing. Beginning January 1, 1992, an ordinance
9 or resolution imposing or discontinuing the tax hereunder or
10 effecting a change in the rate thereof shall be adopted and a
11 certified copy thereof filed with the Department on or before
12 the first day of July, whereupon the Department shall proceed
13 to administer and enforce this Section as of the first day of
14 October next following such adoption and filing. Beginning
15 January 1, 1993, an ordinance or resolution imposing or
16 discontinuing the tax hereunder or effecting a change in the
17 rate thereof shall be adopted and a certified copy thereof
18 filed with the Department on or before the first day of
19 October, whereupon the Department shall proceed to administer
20 and enforce this Section as of the first day of January next
21 following such adoption and filing.
22 When certifying the amount of a monthly disbursement to a
23 county under this Section, the Department shall increase or
24 decrease such amount by an amount necessary to offset any
25 misallocation of previous disbursements. The offset amount
26 shall be the amount erroneously disbursed within the previous
27 6 months from the time a misallocation is discovered.
28 This Section shall be known and may be cited as the "Home
29 Rule County Retailers' Occupation Tax Law".
30 (Source: P.A. 86-962; 86-1028; 86-1475; 87-205; 87-895.)
31 (55 ILCS 5/5-1006.5)
32 Sec. 5-1006.5. Special County Retailers' Occupation Tax
33 For Public Safety.
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1 (a) The county board of any county may impose a tax upon
2 all persons engaged in the business of selling tangible
3 personal property, other than personal property titled or
4 registered with an agency of this State's government, at
5 retail in the county on the gross receipts from the sales
6 made in the course of business to provide revenue to be used
7 exclusively for public safety purposes in that county, if a
8 proposition for the tax has been submitted to the electors of
9 that county and approved by a majority of those voting on the
10 question. If imposed, this tax shall be imposed only in
11 one-quarter percent increments. By resolution, the county
12 board may order the proposition to be submitted at any
13 election. The county clerk shall certify the question to the
14 proper election authority, who shall submit the proposition
15 at an election in accordance with the general election law.
16 The proposition shall be in substantially the following
17 form:
18 "Shall (name of county) be authorized to impose a
19 public safety tax at the rate of .... upon all persons
20 engaged in the business of selling tangible personal
21 property at retail in the county on gross receipts from
22 the sales made in the course of their business to be used
23 for crime prevention, detention, and other public safety
24 purposes?"
25 Votes shall be recorded as Yes or No. If a majority of the
26 electors voting on the proposition vote in favor of it, the
27 county may impose the tax.
28 This additional tax may not be imposed on the sales of
29 food for human consumption that is to be consumed off the
30 premises where it is sold (other than alcoholic beverages,
31 soft drinks, and food which has been prepared for immediate
32 consumption) and prescription and non-prescription medicines,
33 drugs, medical appliances and insulin, urine testing
34 materials, syringes, and needles used by diabetics. The tax
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1 imposed by a county under this Section and all civil
2 penalties that may be assessed as an incident of the tax
3 shall be collected and enforced by the Illinois Department of
4 Revenue. The certificate of registration that is issued by
5 the Department to a retailer under the Retailers' Occupation
6 Tax Act shall permit the retailer to engage in a business
7 that is taxable without registering separately with the
8 Department under an ordinance or resolution under this
9 Section. The Department has full power to administer and
10 enforce this Section, to collect all taxes and penalties due
11 under this Section, to dispose of taxes and penalties so
12 collected in the manner provided in this Section, and to
13 determine all rights to credit memoranda arising on account
14 of the erroneous payment of a tax or penalty under this
15 Section. In the administration of and compliance with this
16 Section, the Department and persons who are subject to this
17 Section shall (i) have the same rights, remedies, privileges,
18 immunities, powers, and duties, (ii) be subject to the same
19 conditions, restrictions, limitations, penalties, and
20 definitions of terms, and (iii) employ the same modes of
21 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
22 1f, 1i, 1j, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions
23 contained in those Sections other than the State rate of
24 tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except provisions
25 relating to transaction returns and quarter monthly
26 payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
27 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
28 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
29 Penalty and Interest Act as if those provisions were set
30 forth in this Section.
31 A county that has not imposed a tax under this subsection
32 on the sale of motor fuel or gasohol before the effective
33 date of this amendatory Act of 1998 shall not impose such a
34 tax on or after that date. A county that has imposed a tax
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1 under this subsection on the sale of motor fuel or gasohol
2 before the effective date of this amendatory Act of 1998
3 shall not increase the rate of the tax on or after that date.
4 Persons subject to any tax imposed under the authority
5 granted in this Section may reimburse themselves for their
6 sellers' tax liability by separately stating the tax as an
7 additional charge, which charge may be stated in combination,
8 in a single amount, with State tax which sellers are required
9 to collect under the Use Tax Act, pursuant to such bracketed
10 schedules as the Department may prescribe.
11 Whenever the Department determines that a refund should
12 be made under this Section to a claimant instead of issuing a
13 credit memorandum, the Department shall notify the State
14 Comptroller, who shall cause the order to be drawn for the
15 amount specified and to the person named in the notification
16 from the Department. The refund shall be paid by the State
17 Treasurer out of the County Public Safety Retailers'
18 Occupation Tax Fund.
19 (b) If a tax has been imposed under subsection (a), a
20 service occupation tax shall also be imposed at the same rate
21 upon all persons engaged, in the county, in the business of
22 making sales of service, who, as an incident to making those
23 sales of service, transfer tangible personal property within
24 the county as an incident to a sale of service. This tax may
25 not be imposed on sales of food for human consumption that is
26 to be consumed off the premises where it is sold (other than
27 alcoholic beverages, soft drinks, and food prepared for
28 immediate consumption) and prescription and non-prescription
29 medicines, drugs, medical appliances and insulin, urine
30 testing materials, syringes, and needles used by diabetics.
31 The tax imposed under this subsection and all civil penalties
32 that may be assessed as an incident thereof shall be
33 collected and enforced by the Department of Revenue. The
34 Department has full power to administer and enforce this
SB1458 Engrossed -117- LRB9011307KDbd
1 subsection; to collect all taxes and penalties due hereunder;
2 to dispose of taxes and penalties so collected in the manner
3 hereinafter provided; and to determine all rights to credit
4 memoranda arising on account of the erroneous payment of tax
5 or penalty hereunder. In the administration of, and
6 compliance with this subsection, the Department and persons
7 who are subject to this paragraph shall (i) have the same
8 rights, remedies, privileges, immunities, powers, and duties,
9 (ii) be subject to the same conditions, restrictions,
10 limitations, penalties, exclusions, exemptions, and
11 definitions of terms, and (iii) employ the same modes of
12 procedure as are prescribed in Sections 1a-1, 2 (except that
13 the reference to State in the definition of supplier
14 maintaining a place of business in this State shall mean the
15 county), 2a, 3 through 3-50 (in respect to all provisions
16 therein other than the State rate of tax), 4 (except that the
17 reference to the State shall be to the county), 5, 7, 8
18 (except that the jurisdiction to which the tax shall be a
19 debt to the extent indicated in that Section 8 shall be the
20 county), 9 (except as to the disposition of taxes and
21 penalties collected, and except that the returned merchandise
22 credit for this tax may not be taken against any State tax),
23 10, 11, 12 (except the reference therein to Section 2b of the
24 Retailers' Occupation Tax Act), 13 (except that any reference
25 to the State shall mean the county), the first paragraph of
26 Section 15, 16, 17, 18, 19 and 20 of the Service Occupation
27 Tax Act and Section 3-7 of the Uniform Penalty and Interest
28 Act, as fully as if those provisions were set forth herein.
29 A county that has not imposed a tax under this subsection
30 on the selling price of motor fuel or gasohol before the
31 effective date of this amendatory Act of 1998 shall not
32 impose such a tax on or after that date. A county that has
33 imposed a tax under this subsection on the selling price of
34 motor fuel or gasohol before the effective date of this
SB1458 Engrossed -118- LRB9011307KDbd
1 amendatory Act of 1998 shall not increase the rate of the tax
2 on or after that date.
3 Persons subject to any tax imposed under the authority
4 granted in this subsection may reimburse themselves for their
5 serviceman's tax liability by separately stating the tax as
6 an additional charge, which charge may be stated in
7 combination, in a single amount, with State tax that
8 servicemen are authorized to collect under the Service Use
9 Tax Act, in accordance with such bracket schedules as the
10 Department may prescribe.
11 Whenever the Department determines that a refund should
12 be made under this subsection to a claimant instead of
13 issuing a credit memorandum, the Department shall notify the
14 State Comptroller, who shall cause the warrant to be drawn
15 for the amount specified, and to the person named, in the
16 notification from the Department. The refund shall be paid
17 by the State Treasurer out of the County Public Safety
18 Retailers' Occupation Fund.
19 Nothing in this subsection shall be construed to
20 authorize the county to impose a tax upon the privilege of
21 engaging in any business which under the Constitution of the
22 United States may not be made the subject of taxation by the
23 State.
24 (c) The Department shall immediately pay over to the
25 State Treasurer, ex officio, as trustee, all taxes and
26 penalties collected under this Section to be deposited into
27 the County Public Safety Retailers' Occupation Tax Fund,
28 which shall be an unappropriated trust fund held outside of
29 the State treasury. On or before the 25th day of each
30 calendar month, the Department shall prepare and certify to
31 the Comptroller the disbursement of stated sums of money to
32 the counties from which retailers have paid taxes or
33 penalties to the Department during the second preceding
34 calendar month. The amount to be paid to each county shall
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1 be the amount (not including credit memoranda) collected
2 under this Section during the second preceding calendar month
3 by the Department plus an amount the Department determines is
4 necessary to offset any amounts that were erroneously paid to
5 a different taxing body, and not including (i) an amount
6 equal to the amount of refunds made during the second
7 preceding calendar month by the Department on behalf of the
8 county and (ii) any amount that the Department determines is
9 necessary to offset any amounts that were payable to a
10 different taxing body but were erroneously paid to the
11 county. Within 10 days after receipt by the Comptroller of
12 the disbursement certification to the counties provided for
13 in this Section to be given to the Comptroller by the
14 Department, the Comptroller shall cause the orders to be
15 drawn for the respective amounts in accordance with
16 directions contained in the certification.
17 In addition to the disbursement required by the preceding
18 paragraph, an allocation shall be made in March of each year
19 to each county that received more than $500,000 in
20 disbursements under the preceding paragraph in the preceding
21 calendar year. The allocation shall be in an amount equal to
22 the average monthly distribution made to each such county
23 under the preceding paragraph during the preceding calendar
24 year (excluding the 2 months of highest receipts). The
25 distribution made in March of each year subsequent to the
26 year in which an allocation was made pursuant to this
27 paragraph and the preceding paragraph shall be reduced by the
28 amount allocated and disbursed under this paragraph in the
29 preceding calendar year. The Department shall prepare and
30 certify to the Comptroller for disbursement the allocations
31 made in accordance with this paragraph.
32 (d) For the purpose of determining the local
33 governmental unit whose tax is applicable, a retail sale by a
34 producer of coal or another mineral mined in Illinois is a
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1 sale at retail at the place where the coal or other mineral
2 mined in Illinois is extracted from the earth. This
3 paragraph does not apply to coal or another mineral when it
4 is delivered or shipped by the seller to the purchaser at a
5 point outside Illinois so that the sale is exempt under the
6 United States Constitution as a sale in interstate or foreign
7 commerce.
8 (e) Nothing in this Section shall be construed to
9 authorize a county to impose a tax upon the privilege of
10 engaging in any business that under the Constitution of the
11 United States may not be made the subject of taxation by this
12 State.
13 (e-5) If a county imposes a tax under this Section, the
14 county board may, by ordinance, discontinue or lower the rate
15 of the tax. If the county board lowers the tax rate or
16 discontinues the tax, a referendum must be held in accordance
17 with subsection (a) of this Section in order to increase the
18 rate of the tax or to reimpose the discontinued tax.
19 (f) The results of any election authorizing a
20 proposition to impose a tax under this Section or effecting a
21 change in the rate of tax, or any ordinance lowering the rate
22 or discontinuing the tax, shall be certified by the county
23 clerk and filed with the Illinois Department of Revenue on or
24 before the first day of June. The Illinois Department of
25 Revenue shall then proceed to administer and enforce this
26 Section or to lower the rate or discontinue the tax, as the
27 case may be, as of the first day of January next following
28 the filing.
29 (g) When certifying the amount of a monthly disbursement
30 to a county under this Section, the Department shall increase
31 or decrease the amounts by an amount necessary to offset any
32 miscalculation of previous disbursements. The offset amount
33 shall be the amount erroneously disbursed within the previous
34 6 months from the time a miscalculation is discovered.
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1 (h) This Section may be cited as the "Special County
2 Occupation Tax For Public Safety Law".
3 (i) For purposes of this Section, "public safety"
4 includes but is not limited to fire fighting, police,
5 medical, ambulance, or other emergency services.
6 (j) This amendatory Act of 1998 is a denial and
7 limitation of home rule powers to tax under subsection (g) of
8 Section 6 of Article VII of the Illinois Constitution.
9 (Source: P.A. 89-107, eff. 1-1-96; 89-718, eff. 3-7-97;
10 90-190, eff. 7-24-97; 90-267, eff. 7-30-97; 90-552, eff.
11 12-12-97; 90-562, eff. 12-16-97; revised 12-30-97.)
12 (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
13 Sec. 5-1007. Home Rule County Service Occupation Tax. The
14 corporate authorities of a home rule county may impose a tax
15 upon all persons engaged, in such county, in the business of
16 making sales of service at the same rate of tax imposed
17 pursuant to Section 5-1006 of the selling price of all
18 tangible personal property transferred by such servicemen
19 either in the form of tangible personal property or in the
20 form of real estate as an incident to a sale of service. If
21 imposed, such tax shall only be imposed in 1/4% increments.
22 On and after September 1, 1991, this additional tax may not
23 be imposed on the sales of food for human consumption which
24 is to be consumed off the premises where it is sold (other
25 than alcoholic beverages, soft drinks and food which has been
26 prepared for immediate consumption) and prescription and
27 nonprescription medicines, drugs, medical appliances and
28 insulin, urine testing materials, syringes and needles used
29 by diabetics. The tax imposed by a home rule county pursuant
30 to this Section and all civil penalties that may be assessed
31 as an incident thereof shall be collected and enforced by the
32 State Department of Revenue. The certificate of registration
33 which is issued by the Department to a retailer under the
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1 Retailers' Occupation Tax Act or under the Service Occupation
2 Tax Act shall permit such registrant to engage in a business
3 which is taxable under any ordinance or resolution enacted
4 pursuant to this Section without registering separately with
5 the Department under such ordinance or resolution or under
6 this Section. The Department shall have full power to
7 administer and enforce this Section; to collect all taxes and
8 penalties due hereunder; to dispose of taxes and penalties so
9 collected in the manner hereinafter provided; and to
10 determine all rights to credit memoranda arising on account
11 of the erroneous payment of tax or penalty hereunder. In the
12 administration of, and compliance with, this Section the
13 Department and persons who are subject to this Section shall
14 have the same rights, remedies, privileges, immunities,
15 powers and duties, and be subject to the same conditions,
16 restrictions, limitations, penalties and definitions of
17 terms, and employ the same modes of procedure, as are
18 prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
19 respect to all provisions therein other than the State rate
20 of tax), 4 (except that the reference to the State shall be
21 to the taxing county), 5, 7, 8 (except that the jurisdiction
22 to which the tax shall be a debt to the extent indicated in
23 that Section 8 shall be the taxing county), 9 (except as to
24 the disposition of taxes and penalties collected, and except
25 that the returned merchandise credit for this county tax may
26 not be taken against any State tax), 10, 11, 12 (except the
27 reference therein to Section 2b of the Retailers' Occupation
28 Tax Act), 13 (except that any reference to the State shall
29 mean the taxing county), the first paragraph of Section 15,
30 16, 17, 18, 19 and 20 of the Service Occupation Tax Act and
31 Section 3-7 of the Uniform Penalty and Interest Act, as fully
32 as if those provisions were set forth herein.
33 No tax may be imposed by a home rule county pursuant to
34 this Section unless such county also imposes a tax at the
SB1458 Engrossed -123- LRB9011307KDbd
1 same rate pursuant to Section 5-1006.
2 A home rule county that has not imposed a tax under this
3 Section on the selling price of motor fuel or gasohol before
4 the effective date of this amendatory Act of 1998 shall not
5 impose such a tax on or after that date. A home rule county
6 that has imposed a tax under this Section on the sale of
7 motor fuel or gasohol before the effective date of this
8 amendatory Act of 1998 shall not increase the rate of the tax
9 on or after that date. This amendatory Act of 1998 is denial
10 and limitation of home rule powers to tax under subsection
11 (g) of Section 6 of Article VII of the Illinois Constitution.
12 Persons subject to any tax imposed pursuant to the
13 authority granted in this Section may reimburse themselves
14 for their serviceman's tax liability hereunder by separately
15 stating such tax as an additional charge, which charge may be
16 stated in combination, in a single amount, with State tax
17 which servicemen are authorized to collect under the Service
18 Use Tax Act, pursuant to such bracket schedules as the
19 Department may prescribe.
20 Whenever the Department determines that a refund should
21 be made under this Section to a claimant instead of issuing
22 credit memorandum, the Department shall notify the State
23 Comptroller, who shall cause the order to be drawn for the
24 amount specified, and to the person named, in such
25 notification from the Department. Such refund shall be paid
26 by the State Treasurer out of the home rule county retailers'
27 occupation tax fund.
28 The Department shall forthwith pay over to the State
29 Treasurer, ex-officio, as trustee, all taxes and penalties
30 collected hereunder. On or before the 25th day of each
31 calendar month, the Department shall prepare and certify to
32 the Comptroller the disbursement of stated sums of money to
33 named counties, the counties to be those from which suppliers
34 and servicemen have paid taxes or penalties hereunder to the
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1 Department during the second preceding calendar month. The
2 amount to be paid to each county shall be the amount (not
3 including credit memoranda) collected hereunder during the
4 second preceding calendar month by the Department, and not
5 including an amount equal to the amount of refunds made
6 during the second preceding calendar month by the Department
7 on behalf of such county. Within 10 days after receipt, by
8 the Comptroller, of the disbursement certification to the
9 counties provided for in this Section to be given to the
10 Comptroller by the Department, the Comptroller shall cause
11 the orders to be drawn for the respective amounts in
12 accordance with the directions contained in such
13 certification.
14 In addition to the disbursement required by the preceding
15 paragraph, an allocation shall be made in each year to each
16 county which received more than $500,000 in disbursements
17 under the preceding paragraph in the preceding calendar year.
18 The allocation shall be in an amount equal to the average
19 monthly distribution made to each such county under the
20 preceding paragraph during the preceding calendar year
21 (excluding the 2 months of highest receipts). The
22 distribution made in March of each year subsequent to the
23 year in which an allocation was made pursuant to this
24 paragraph and the preceding paragraph shall be reduced by the
25 amount allocated and disbursed under this paragraph in the
26 preceding calendar year. The Department shall prepare and
27 certify to the Comptroller for disbursement the allocations
28 made in accordance with this paragraph.
29 Nothing in this Section shall be construed to authorize a
30 county to impose a tax upon the privilege of engaging in any
31 business which under the Constitution of the United States
32 may not be made the subject of taxation by this State.
33 An ordinance or resolution imposing or discontinuing a
34 tax hereunder or effecting a change in the rate thereof shall
SB1458 Engrossed -125- LRB9011307KDbd
1 be adopted and a certified copy thereof filed with the
2 Department on or before the first day of June, whereupon the
3 Department shall proceed to administer and enforce this
4 Section as of the first day of September next following such
5 adoption and filing. Beginning January 1, 1992, an ordinance
6 or resolution imposing or discontinuing the tax hereunder or
7 effecting a change in the rate thereof shall be adopted and a
8 certified copy thereof filed with the Department on or before
9 the first day of July, whereupon the Department shall proceed
10 to administer and enforce this Section as of the first day of
11 October next following such adoption and filing. Beginning
12 January 1, 1993, an ordinance or resolution imposing or
13 discontinuing the tax hereunder or effecting a change in the
14 rate thereof shall be adopted and a certified copy thereof
15 filed with the Department on or before the first day of
16 October, whereupon the Department shall proceed to administer
17 and enforce this Section as of the first day of January next
18 following such adoption and filing.
19 This Section shall be known and may be cited as the "Home
20 Rule County Service Occupation Tax Law".
21 (Source: P.A. 86-962; 86-1028; 86-1475; 87-205; 87-895.)
22 (55 ILCS 5/5-1035.1) (from Ch. 34, par. 5-1035.1)
23 Sec. 5-1035.1. County Motor Fuel Tax Law. The county
24 board of the counties of DuPage, Kane and McHenry may, by an
25 ordinance or resolution adopted by an affirmative vote of a
26 majority of the members elected or appointed to the county
27 board, impose a tax upon all persons engaged in the county in
28 the business of selling motor fuel, as now or hereafter
29 defined in the Motor Fuel Tax Law, at retail for the
30 operation of motor vehicles upon public highways or for the
31 operation of recreational watercraft upon waterways. Kane
32 County may exempt diesel fuel from the tax imposed pursuant
33 to this Section. The tax may be imposed, in half-cent
SB1458 Engrossed -126- LRB9011307KDbd
1 increments, at a rate not exceeding 4 cents per gallon of
2 motor fuel sold at retail within the county for the purpose
3 of use or consumption and not for the purpose of resale. The
4 proceeds from the tax shall be used by the county solely for
5 the purpose of operating, constructing and improving public
6 highways and waterways, and acquiring real property and
7 right-of-ways for public highways and waterways within the
8 county imposing the tax.
9 A county that has not imposed a tax under this Section
10 before the effective date of this amendatory Act of 1998
11 shall not impose such a tax on or after that date. A county
12 that has imposed a tax under this Section before the
13 effective date of this amendatory Act of 1998 shall not
14 increase the rate of the tax on or after that date.
15 A tax imposed pursuant to this Section, and all civil
16 penalties that may be assessed as an incident thereof, shall
17 be administered, collected and enforced by the Illinois
18 Department of Revenue in the same manner as the tax imposed
19 under the Retailers' Occupation Tax Act, as now or hereafter
20 amended, insofar as may be practicable; except that in the
21 event of a conflict with the provisions of this Section, this
22 Section shall control. The Department of Revenue shall have
23 full power: to administer and enforce this Section; to
24 collect all taxes and penalties due hereunder; to dispose of
25 taxes and penalties so collected in the manner hereinafter
26 provided; and to determine all rights to credit memoranda
27 arising on account of the erroneous payment of tax or penalty
28 hereunder.
29 Whenever the Department determines that a refund shall be
30 made under this Section to a claimant instead of issuing a
31 credit memorandum, the Department shall notify the State
32 Comptroller, who shall cause the order to be drawn for the
33 amount specified, and to the person named, in the
34 notification from the Department. The refund shall be paid by
SB1458 Engrossed -127- LRB9011307KDbd
1 the State Treasurer out of the County Option Motor Fuel Tax
2 Fund.
3 The Department shall forthwith pay over to the State
4 Treasurer, ex-officio, as trustee, all taxes and penalties
5 collected hereunder, which shall be deposited into the County
6 Option Motor Fuel Tax Fund, a special fund in the State
7 Treasury which is hereby created. On or before the 25th day
8 of each calendar month, the Department shall prepare and
9 certify to the State Comptroller the disbursement of stated
10 sums of money to named counties for which taxpayers have paid
11 taxes or penalties hereunder to the Department during the
12 second preceding calendar month. The amount to be paid to
13 each county shall be the amount (not including credit
14 memoranda) collected hereunder from retailers within the
15 county during the second preceding calendar month by the
16 Department, but not including an amount equal to the amount
17 of refunds made during the second preceding calendar month by
18 the Department on behalf of the county; less the amount
19 expended during the second preceding month by the Department
20 pursuant to appropriation from the County Option Motor Fuel
21 Tax Fund for the administration and enforcement of this
22 Section, which appropriation shall not exceed $200,000 for
23 fiscal year 1990 and, for each year thereafter, shall not
24 exceed 2% of the amount deposited into the County Option
25 Motor Fuel Tax Fund during the preceding fiscal year.
26 Nothing in this Section shall be construed to authorize a
27 county to impose a tax upon the privilege of engaging in any
28 business which under the Constitution of the United States
29 may not be made the subject of taxation by this State.
30 An ordinance or resolution imposing a tax hereunder or
31 effecting a change in the rate thereof shall be effective on
32 the first day of the second calendar month next following the
33 month in which the ordinance or resolution is adopted and a
34 certified copy thereof is filed with the Department of
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1 Revenue, whereupon the Department of Revenue shall proceed
2 to administer and enforce this Section on behalf of the
3 county as of the effective date of the ordinance or
4 resolution. Upon a change in rate of a tax levied hereunder,
5 or upon the discontinuance of the tax, the county board of
6 the county shall, on or not later than 5 days after the
7 effective date of the ordinance or resolution discontinuing
8 the tax or effecting a change in rate, transmit to the
9 Department of Revenue a certified copy of the ordinance or
10 resolution effecting the change or discontinuance.
11 This Section shall be known and may be cited as the
12 County Motor Fuel Tax Law.
13 (Source: P.A. 86-1028; 87-289.)
14 Section 30. The Illinois Municipal Code is amended by
15 changing Sections 8-11-1, 8-11-1.1, 8-11-5, 8-11-6, and
16 8-11-16 as follows:
17 (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
18 Sec. 8-11-1. Home Rule Municipal Retailers' Occupation
19 Tax. The corporate authorities of a home rule municipality
20 may impose a tax upon all persons engaged in the business of
21 selling tangible personal property, other than an item of
22 tangible personal property titled or registered with an
23 agency of this State's government, at retail in the
24 municipality on the gross receipts from these sales made in
25 the course of such business. If imposed, the tax shall only
26 be imposed in 1/4% increments. On and after September 1,
27 1991, this additional tax may not be imposed on the sales of
28 food for human consumption that is to be consumed off the
29 premises where it is sold (other than alcoholic beverages,
30 soft drinks and food that has been prepared for immediate
31 consumption) and prescription and nonprescription medicines,
32 drugs, medical appliances and insulin, urine testing
SB1458 Engrossed -129- LRB9011307KDbd
1 materials, syringes and needles used by diabetics. The tax
2 imposed by a home rule municipality under this Section and
3 all civil penalties that may be assessed as an incident of
4 the tax shall be collected and enforced by the State
5 Department of Revenue. The certificate of registration that
6 is issued by the Department to a retailer under the
7 Retailers' Occupation Tax Act shall permit the retailer to
8 engage in a business that is taxable under any ordinance or
9 resolution enacted pursuant to this Section without
10 registering separately with the Department under such
11 ordinance or resolution or under this Section. The
12 Department shall have full power to administer and enforce
13 this Section; to collect all taxes and penalties due
14 hereunder; to dispose of taxes and penalties so collected in
15 the manner hereinafter provided; and to determine all rights
16 to credit memoranda arising on account of the erroneous
17 payment of tax or penalty hereunder. In the administration
18 of, and compliance with, this Section the Department and
19 persons who are subject to this Section shall have the same
20 rights, remedies, privileges, immunities, powers and duties,
21 and be subject to the same conditions, restrictions,
22 limitations, penalties and definitions of terms, and employ
23 the same modes of procedure, as are prescribed in Sections 1,
24 1a, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all
25 provisions therein other than the State rate of tax), 2c, 3
26 (except as to the disposition of taxes and penalties
27 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
28 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
29 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
30 Penalty and Interest Act, as fully as if those provisions
31 were set forth herein.
32 No tax may be imposed by a home rule municipality under
33 this Section unless the municipality also imposes a tax at
34 the same rate under Section 8-11-5 of this Act.
SB1458 Engrossed -130- LRB9011307KDbd
1 A home rule municipality that has not imposed a tax under
2 this Section on the sale of motor fuel or gasohol before the
3 effective date of this amendatory Act of 1998 shall not
4 impose such a tax on or after that date. A home rule
5 municipality that has imposed a tax under this Section on the
6 sale of motor fuel or gasohol before the effective date of
7 this amendatory Act of 1998 shall not increase the rate of
8 the tax on or after that date. This amendatory Act of 1998 is
9 a denial and limitation of home rule powers to tax under
10 subsection (g) of Section 6 of Article VII of the Illinois
11 Constitution.
12 Persons subject to any tax imposed under the authority
13 granted in this Section may reimburse themselves for their
14 seller's tax liability hereunder by separately stating that
15 tax as an additional charge, which charge may be stated in
16 combination, in a single amount, with State tax which sellers
17 are required to collect under the Use Tax Act, pursuant to
18 such bracket schedules as the Department may prescribe.
19 Whenever the Department determines that a refund should
20 be made under this Section to a claimant instead of issuing a
21 credit memorandum, the Department shall notify the State
22 Comptroller, who shall cause the order to be drawn for the
23 amount specified and to the person named in the notification
24 from the Department. The refund shall be paid by the State
25 Treasurer out of the home rule municipal retailers'
26 occupation tax fund.
27 The Department shall immediately pay over to the State
28 Treasurer, ex officio, as trustee, all taxes and penalties
29 collected hereunder. On or before the 25th day of each
30 calendar month, the Department shall prepare and certify to
31 the Comptroller the disbursement of stated sums of money to
32 named municipalities, the municipalities to be those from
33 which retailers have paid taxes or penalties hereunder to the
34 Department during the second preceding calendar month. The
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1 amount to be paid to each municipality shall be the amount
2 (not including credit memoranda) collected hereunder during
3 the second preceding calendar month by the Department plus an
4 amount the Department determines is necessary to offset any
5 amounts that were erroneously paid to a different taxing
6 body, and not including an amount equal to the amount of
7 refunds made during the second preceding calendar month by
8 the Department on behalf of such municipality, and not
9 including any amount that the Department determines is
10 necessary to offset any amounts that were payable to a
11 different taxing body but were erroneously paid to the
12 municipality. Within 10 days after receipt by the Comptroller
13 of the disbursement certification to the municipalities
14 provided for in this Section to be given to the Comptroller
15 by the Department, the Comptroller shall cause the orders to
16 be drawn for the respective amounts in accordance with the
17 directions contained in the certification.
18 In addition to the disbursement required by the preceding
19 paragraph and in order to mitigate delays caused by
20 distribution procedures, an allocation shall, if requested,
21 be made within 10 days after January 14, 1991, and in
22 November of 1991 and each year thereafter, to each
23 municipality that received more than $500,000 during the
24 preceding fiscal year, (July 1 through June 30) whether
25 collected by the municipality or disbursed by the Department
26 as required by this Section. Within 10 days after January 14,
27 1991, participating municipalities shall notify the
28 Department in writing of their intent to participate. In
29 addition, for the initial distribution, participating
30 municipalities shall certify to the Department the amounts
31 collected by the municipality for each month under its home
32 rule occupation and service occupation tax during the period
33 July 1, 1989 through June 30, 1990. The allocation within 10
34 days after January 14, 1991, shall be in an amount equal to
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1 the monthly average of these amounts, excluding the 2 months
2 of highest receipts. The monthly average for the period of
3 July 1, 1990 through June 30, 1991 will be determined as
4 follows: the amounts collected by the municipality under its
5 home rule occupation and service occupation tax during the
6 period of July 1, 1990 through September 30, 1990, plus
7 amounts collected by the Department and paid to such
8 municipality through June 30, 1991, excluding the 2 months of
9 highest receipts. The monthly average for each subsequent
10 period of July 1 through June 30 shall be an amount equal to
11 the monthly distribution made to each such municipality under
12 the preceding paragraph during this period, excluding the 2
13 months of highest receipts. The distribution made in
14 November 1991 and each year thereafter under this paragraph
15 and the preceding paragraph shall be reduced by the amount
16 allocated and disbursed under this paragraph in the preceding
17 period of July 1 through June 30. The Department shall
18 prepare and certify to the Comptroller for disbursement the
19 allocations made in accordance with this paragraph.
20 For the purpose of determining the local governmental
21 unit whose tax is applicable, a retail sale by a producer of
22 coal or other mineral mined in Illinois is a sale at retail
23 at the place where the coal or other mineral mined in
24 Illinois is extracted from the earth. This paragraph does
25 not apply to coal or other mineral when it is delivered or
26 shipped by the seller to the purchaser at a point outside
27 Illinois so that the sale is exempt under the United States
28 Constitution as a sale in interstate or foreign commerce.
29 Nothing in this Section shall be construed to authorize a
30 municipality to impose a tax upon the privilege of engaging
31 in any business which under the Constitution of the United
32 States may not be made the subject of taxation by this State.
33 An ordinance or resolution imposing or discontinuing a
34 tax hereunder or effecting a change in the rate thereof shall
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1 be adopted and a certified copy thereof filed with the
2 Department on or before the first day of June, whereupon the
3 Department shall proceed to administer and enforce this
4 Section as of the first day of September next following the
5 adoption and filing. Beginning January 1, 1992, an ordinance
6 or resolution imposing or discontinuing the tax hereunder or
7 effecting a change in the rate thereof shall be adopted and a
8 certified copy thereof filed with the Department on or before
9 the first day of July, whereupon the Department shall proceed
10 to administer and enforce this Section as of the first day of
11 October next following such adoption and filing. Beginning
12 January 1, 1993, an ordinance or resolution imposing or
13 discontinuing the tax hereunder or effecting a change in the
14 rate thereof shall be adopted and a certified copy thereof
15 filed with the Department on or before the first day of
16 October, whereupon the Department shall proceed to administer
17 and enforce this Section as of the first day of January next
18 following the adoption and filing. However, a municipality
19 located in a county with a population in excess of 3,000,000
20 that elected to become a home rule unit at the general
21 primary election in 1994 may adopt an ordinance or resolution
22 imposing the tax under this Section and file a certified copy
23 of the ordinance or resolution with the Department on or
24 before July 1, 1994. The Department shall then proceed to
25 administer and enforce this Section as of October 1, 1994.
26 When certifying the amount of a monthly disbursement to a
27 municipality under this Section, the Department shall
28 increase or decrease the amount by an amount necessary to
29 offset any misallocation of previous disbursements. The
30 offset amount shall be the amount erroneously disbursed
31 within the previous 6 months from the time a misallocation is
32 discovered.
33 Any unobligated balance remaining in the Municipal
34 Retailers' Occupation Tax Fund on December 31, 1989, which
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1 fund was abolished by Public Act 85-1135, and all receipts of
2 municipal tax as a result of audits of liability periods
3 prior to January 1, 1990, shall be paid into the Local
4 Government Tax Fund for distribution as provided by this
5 Section prior to the enactment of Public Act 85-1135. All
6 receipts of municipal tax as a result of an assessment not
7 arising from an audit, for liability periods prior to January
8 1, 1990, shall be paid into the Local Government Tax Fund for
9 distribution before July 1, 1990, as provided by this Section
10 prior to the enactment of Public Act 85-1135; and on and
11 after July 1, 1990, all such receipts shall be distributed as
12 provided in Section 6z-18 of the State Finance Act.
13 As used in this Section, "municipal" and "municipality"
14 means a city, village or incorporated town, including an
15 incorporated town that has superseded a civil township.
16 This Section shall be known and may be cited as the Home
17 Rule Municipal Retailers' Occupation Tax Act.
18 (Source: P.A. 87-205; 87-435; 87-895; 88-603, eff. 9-1-94.)
19 (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
20 Sec. 8-11-1.1. Non-home rule municipality use and
21 occupation taxes.
22 (a) The corporate authorities of a non-home rule
23 municipality with a population greater than 130,000 but less
24 than 2,000,000 may, upon approval of the electors of the
25 municipality pursuant to subsection (b) of this Section,
26 impose by ordinance or resolution the 1/2 of 1% tax
27 authorized in Sections 8-11-1.3, 8-11-1.4 and 8-11-1.5 of
28 this Act.
29 A municipality that has not imposed a tax on motor fuel
30 or gasohol authorized in Sections 8-11-1.3, 8-11-1.4, and
31 8-11-1.5 before the effective date of this amendatory Act of
32 1998 shall not impose such a tax on or after that date. A
33 municipality that has imposed a tax on motor fuel or gasohol
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1 authorized in Sections 8-11-1.3, 8-11-1.4, and 8-11-1.5
2 before the effective date of this amendatory Act of 1998
3 shall not increase the rate of the tax on or after that date.
4 (b) The corporate authorities of the municipality may by
5 ordinance or resolution call for the submission to the
6 electors of the municipality the question of whether the
7 municipality shall impose such tax. Such question shall be
8 certified by the municipal clerk to the election authority in
9 accordance with Section 28-5 of the Election Code and shall
10 be in a form in accordance with Section 16-7 of the Election
11 Code.
12 If a majority of the electors in the municipality voting
13 upon the question vote in the affirmative, such tax shall be
14 imposed.
15 An ordinance or resolution imposing the 1/2 of 1% tax
16 hereunder or discontinuing the same shall be adopted and a
17 certified copy thereof, together with a certification that
18 the ordinance or resolution received referendum approval in
19 the case of the imposition of such tax, filed with the
20 Department of Revenue, on or before the first day of June,
21 whereupon the Department shall proceed to administer and
22 enforce the additional tax or to discontinue the tax, as the
23 case may be, as of the first day of September next following
24 such adoption and filing. Beginning January 1, 1992, an
25 ordinance or resolution imposing or discontinuing the tax
26 hereunder shall be adopted and a certified copy thereof filed
27 with the Department on or before the first day of July,
28 whereupon the Department shall proceed to administer and
29 enforce this Section as of the first day of October next
30 following such adoption and filing. Beginning January 1,
31 1993, an ordinance or resolution imposing or discontinuing
32 the tax hereunder shall be adopted and a certified copy
33 thereof filed with the Department on or before the first day
34 of October, whereupon the Department shall proceed to
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1 administer and enforce this Section as of the first day of
2 January next following such adoption and filing.
3 (Source: P.A. 86-928; 87-205.)
4 (65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
5 Sec. 8-11-5. Home Rule Municipal Service Occupation Tax.
6 The corporate authorities of a home rule municipality may
7 impose a tax upon all persons engaged, in such municipality,
8 in the business of making sales of service at the same rate
9 of tax imposed pursuant to Section 8-11-1, of the selling
10 price of all tangible personal property transferred by such
11 servicemen either in the form of tangible personal property
12 or in the form of real estate as an incident to a sale of
13 service. If imposed, such tax shall only be imposed in 1/4%
14 increments. On and after September 1, 1991, this additional
15 tax may not be imposed on the sales of food for human
16 consumption which is to be consumed off the premises where it
17 is sold (other than alcoholic beverages, soft drinks and food
18 which has been prepared for immediate consumption) and
19 prescription and nonprescription medicines, drugs, medical
20 appliances and insulin, urine testing materials, syringes and
21 needles used by diabetics. The tax imposed by a home rule
22 municipality pursuant to this Section and all civil penalties
23 that may be assessed as an incident thereof shall be
24 collected and enforced by the State Department of Revenue.
25 The certificate of registration which is issued by the
26 Department to a retailer under the Retailers' Occupation Tax
27 Act or under the Service Occupation Tax Act shall permit such
28 registrant to engage in a business which is taxable under any
29 ordinance or resolution enacted pursuant to this Section
30 without registering separately with the Department under such
31 ordinance or resolution or under this Section. The
32 Department shall have full power to administer and enforce
33 this Section; to collect all taxes and penalties due
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1 hereunder; to dispose of taxes and penalties so collected in
2 the manner hereinafter provided, and to determine all rights
3 to credit memoranda arising on account of the erroneous
4 payment of tax or penalty hereunder. In the administration
5 of, and compliance with, this Section the Department and
6 persons who are subject to this Section shall have the same
7 rights, remedies, privileges, immunities, powers and duties,
8 and be subject to the same conditions, restrictions,
9 limitations, penalties and definitions of terms, and employ
10 the same modes of procedure, as are prescribed in Sections
11 1a-1, 2, 2a, 3 through 3-50 (in respect to all provisions
12 therein other than the State rate of tax), 4 (except that the
13 reference to the State shall be to the taxing municipality),
14 5, 7, 8 (except that the jurisdiction to which the tax shall
15 be a debt to the extent indicated in that Section 8 shall be
16 the taxing municipality), 9 (except as to the disposition of
17 taxes and penalties collected, and except that the returned
18 merchandise credit for this municipal tax may not be taken
19 against any State tax), 10, 11, 12 (except the reference
20 therein to Section 2b of the Retailers' Occupation Tax Act),
21 13 (except that any reference to the State shall mean the
22 taxing municipality), the first paragraph of Section 15, 16,
23 17 (except that credit memoranda issued hereunder may not be
24 used to discharge any State tax liability), 18, 19 and 20 of
25 the Service Occupation Tax Act and Section 3-7 of the Uniform
26 Penalty and Interest Act, as fully as if those provisions
27 were set forth herein.
28 No tax may be imposed by a home rule municipality
29 pursuant to this Section unless such municipality also
30 imposes a tax at the same rate pursuant to Section 8-11-1 of
31 this Act.
32 A home rule municipality that has not imposed a tax under
33 this Section on the selling price of motor fuel or gasohol
34 before the effective date of this amendatory Act of 1998
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1 shall not impose such a tax on or after that date. A home
2 rule municipality that has imposed a tax under this Section
3 on the selling price of motor fuel or gasohol before the
4 effective date of this amendatory Act of 1998 shall not
5 increase the rate of the tax on or after that date. This
6 amendatory Act of 1998 is a denial and limitation of home
7 rule powers to tax under subsection (g) of Section 6 of
8 Article VII of the Illinois Constitution.
9 Persons subject to any tax imposed pursuant to the
10 authority granted in this Section may reimburse themselves
11 for their serviceman's tax liability hereunder by separately
12 stating such tax as an additional charge, which charge may be
13 stated in combination, in a single amount, with State tax
14 which servicemen are authorized to collect under the Service
15 Use Tax Act, pursuant to such bracket schedules as the
16 Department may prescribe.
17 Whenever the Department determines that a refund should
18 be made under this Section to a claimant instead of issuing
19 credit memorandum, the Department shall notify the State
20 Comptroller, who shall cause the order to be drawn for the
21 amount specified, and to the person named, in such
22 notification from the Department. Such refund shall be paid
23 by the State Treasurer out of the home rule municipal
24 retailers' occupation tax fund.
25 The Department shall forthwith pay over to the State
26 Treasurer, ex-officio, as trustee, all taxes and penalties
27 collected hereunder. On or before the 25th day of each
28 calendar month, the Department shall prepare and certify to
29 the Comptroller the disbursement of stated sums of money to
30 named municipalities, the municipalities to be those from
31 which suppliers and servicemen have paid taxes or penalties
32 hereunder to the Department during the second preceding
33 calendar month. The amount to be paid to each municipality
34 shall be the amount (not including credit memoranda)
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1 collected hereunder during the second preceding calendar
2 month by the Department, and not including an amount equal to
3 the amount of refunds made during the second preceding
4 calendar month by the Department on behalf of such
5 municipality. Within 10 days after receipt, by the
6 Comptroller, of the disbursement certification to the
7 municipalities, provided for in this Section to be given to
8 the Comptroller by the Department, the Comptroller shall
9 cause the orders to be drawn for the respective amounts in
10 accordance with the directions contained in such
11 certification.
12 In addition to the disbursement required by the preceding
13 paragraph and in order to mitigate delays caused by
14 distribution procedures, an allocation shall, if requested,
15 be made within 10 days after January 14, 1991, and in
16 November of 1991 and each year thereafter, to each
17 municipality that received more than $500,000 during the
18 preceding fiscal year, (July 1 through June 30) whether
19 collected by the municipality or disbursed by the Department
20 as required by this Section. Within 10 days after January 14,
21 1991, participating municipalities shall notify the
22 Department in writing of their intent to participate. In
23 addition, for the initial distribution, participating
24 municipalities shall certify to the Department the amounts
25 collected by the municipality for each month under its home
26 rule occupation and service occupation tax during the period
27 July 1, 1989 through June 30, 1990. The allocation within 10
28 days after January 14, 1991, shall be in an amount equal to
29 the monthly average of these amounts, excluding the 2 months
30 of highest receipts. Monthly average for the period of July
31 1, 1990 through June 30, 1991 will be determined as follows:
32 the amounts collected by the municipality under its home rule
33 occupation and service occupation tax during the period of
34 July 1, 1990 through September 30, 1990, plus amounts
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1 collected by the Department and paid to such municipality
2 through June 30, 1991, excluding the 2 months of highest
3 receipts. The monthly average for each subsequent period of
4 July 1 through June 30 shall be an amount equal to the
5 monthly distribution made to each such municipality under the
6 preceding paragraph during this period, excluding the 2
7 months of highest receipts. The distribution made in
8 November 1991 and each year thereafter under this paragraph
9 and the preceding paragraph shall be reduced by the amount
10 allocated and disbursed under this paragraph in the preceding
11 period of July 1 through June 30. The Department shall
12 prepare and certify to the Comptroller for disbursement the
13 allocations made in accordance with this paragraph.
14 Nothing in this Section shall be construed to authorize a
15 municipality to impose a tax upon the privilege of engaging
16 in any business which under the constitution of the United
17 States may not be made the subject of taxation by this State.
18 An ordinance or resolution imposing or discontinuing a
19 tax hereunder or effecting a change in the rate thereof shall
20 be adopted and a certified copy thereof filed with the
21 Department on or before the first day of June, whereupon the
22 Department shall proceed to administer and enforce this
23 Section as of the first day of September next following such
24 adoption and filing. Beginning January 1, 1992, an ordinance
25 or resolution imposing or discontinuing the tax hereunder or
26 effecting a change in the rate thereof shall be adopted and a
27 certified copy thereof filed with the Department on or before
28 the first day of July, whereupon the Department shall proceed
29 to administer and enforce this Section as of the first day of
30 October next following such adoption and filing. Beginning
31 January 1, 1993, an ordinance or resolution imposing or
32 discontinuing the tax hereunder or effecting a change in the
33 rate thereof shall be adopted and a certified copy thereof
34 filed with the Department on or before the first day of
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1 October, whereupon the Department shall proceed to administer
2 and enforce this Section as of the first day of January next
3 following such adoption and filing. However, a municipality
4 located in a county with a population in excess of 3,000,000
5 that elected to become a home rule unit at the general
6 primary election in 1994 may adopt an ordinance or resolution
7 imposing the tax under this Section and file a certified copy
8 of the ordinance or resolution with the Department on or
9 before July 1, 1994. The Department shall then proceed to
10 administer and enforce this Section as of October 1, 1994.
11 Any unobligated balance remaining in the Municipal
12 Retailers' Occupation Tax Fund on December 31, 1989, which
13 fund was abolished by Public Act 85-1135, and all receipts of
14 municipal tax as a result of audits of liability periods
15 prior to January 1, 1990, shall be paid into the Local
16 Government Tax Fund, for distribution as provided by this
17 Section prior to the enactment of Public Act 85-1135. All
18 receipts of municipal tax as a result of an assessment not
19 arising from an audit, for liability periods prior to January
20 1, 1990, shall be paid into the Local Government Tax Fund for
21 distribution before July 1, 1990, as provided by this Section
22 prior to the enactment of Public Act 85-1135, and on and
23 after July 1, 1990, all such receipts shall be distributed as
24 provided in Section 6z-18 of the State Finance Act.
25 As used in this Section, "municipal" and "municipality"
26 means a city, village or incorporated town, including an
27 incorporated town which has superseded a civil township.
28 This Section shall be known and may be cited as the Home
29 Rule Municipal Service Occupation Tax Act.
30 (Source: P.A. 87-205; 87-435; 87-895; 88-603, eff. 9-1-94.)
31 (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
32 Sec. 8-11-6. Home Rule Municipal Use Tax.
33 (a) The corporate authorities of a home rule municipality
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1 may impose a tax upon the privilege of using, in such
2 municipality, any item of tangible personal property which is
3 purchased at retail from a retailer, and which is titled or
4 registered at a location within the corporate limits of such
5 home rule municipality with an agency of this State's
6 government, at a rate which is an increment of 1/4% and based
7 on the selling price of such tangible personal property, as
8 "selling price" is defined in the Use Tax Act. In home rule
9 municipalities with less than 2,000,000 inhabitants, the tax
10 shall be collected by the municipality imposing the tax from
11 persons whose Illinois address for titling or registration
12 purposes is given as being in such municipality.
13 (b) In home rule municipalities with 2,000,000 or more
14 inhabitants, the corporate authorities of the municipality
15 may additionally impose a tax beginning July 1, 1991 upon the
16 privilege of using in the municipality, any item of tangible
17 personal property, other than tangible personal property
18 titled or registered with an agency of the State's
19 government, that is purchased at retail from a retailer
20 located outside the corporate limits of the municipality, at
21 a rate that is an increment of 1/4% not to exceed 1% and
22 based on the selling price of the tangible personal property,
23 as "selling price" is defined in the Use Tax Act. Such tax
24 shall be collected from the purchaser by the municipality
25 imposing such tax.
26 To prevent multiple home rule taxation, the use in a home
27 rule municipality of tangible personal property that is
28 acquired outside the municipality and caused to be brought
29 into the municipality by a person who has already paid a home
30 rule municipal tax in another municipality in respect to the
31 sale, purchase, or use of that property, shall be exempt to
32 the extent of the amount of the tax properly due and paid in
33 the other home rule municipality.
34 (b-5) A home rule municipality that has not imposed a
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1 tax under this Section on the use of motor fuel or gasohol
2 before the effective date of this amendatory Act of 1998
3 shall not impose such a tax on or after that date. A home
4 rule municipality that has imposed a tax under this Section
5 on the use of motor fuel or gasohol before the effective date
6 of this amendatory Act of 1998 shall not increase the rate of
7 the tax on or after that date. This amendatory Act of 1998 is
8 a denial and limitation of home rule powers to tax under
9 subsection (g) of Section 6 of Article VII of the Illinois
10 Constitution.
11 (c) If a municipality having 2,000,000 or more
12 inhabitants imposes the tax authorized by subsection (a),
13 then the tax shall be collected by the Illinois Department of
14 Revenue when the property is purchased at retail from a
15 retailer in the county in which the home rule municipality
16 imposing the tax is located, and in all contiguous counties.
17 The tax shall be remitted to the State, or an exemption
18 determination must be obtained from the Department before the
19 title or certificate of registration for the property may be
20 issued. The tax or proof of exemption may be transmitted to
21 the Department by way of the State agency with which, or
22 State officer with whom, the tangible personal property must
23 be titled or registered if the Department and that agency or
24 State officer determine that this procedure will expedite the
25 processing of applications for title or registration.
26 The Department shall have full power to administer and
27 enforce this Section to collect all taxes, penalties and
28 interest due hereunder, to dispose of taxes, penalties and
29 interest so collected in the manner hereinafter provided, and
30 determine all rights to credit memoranda or refunds arising
31 on account of the erroneous payment of tax, penalty or
32 interest hereunder. In the administration of and compliance
33 with this Section the Department and persons who are subject
34 to this Section shall have the same rights, remedies,
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1 privileges, immunities, powers and duties, and be subject to
2 the same conditions, restrictions, limitations, penalties and
3 definitions of terms, and employ the same modes of procedure
4 as are prescribed in Sections 2 (except the definition of
5 "retailer maintaining a place of business in this State"), 3
6 (except provisions pertaining to the State rate of tax, and
7 except provisions concerning collection or refunding of the
8 tax by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22
9 of the Use Tax Act, which are not inconsistent with this
10 Section, as fully as if provisions contained in those
11 Sections of the Use Tax Act were set forth herein.
12 Whenever the Department determines that a refund shall be
13 made under this Section to a claimant instead of issuing a
14 credit memorandum, the Department shall notify the State
15 Comptroller, who shall cause the order to be drawn for the
16 amount specified, and to the person named, in such
17 notification from the Department. Such refund shall be paid
18 by the State Treasurer out of the home rule municipal
19 retailers' occupation tax fund.
20 The Department shall forthwith pay over to the State
21 Treasurer, ex officio, as trustee, all taxes, penalties and
22 interest collected hereunder. On or before the 25th day of
23 each calendar month, the Department shall prepare and certify
24 to the State Comptroller the disbursement of stated sums of
25 money to named municipalities, the municipality in each
26 instance to be that municipality from which the Department
27 during the second preceding calendar month, collected
28 municipal use tax from any person whose Illinois address for
29 titling or registration purposes is given as being in such
30 municipality. The amount to be paid to each municipality
31 shall be the amount (not including credit memoranda)
32 collected hereunder during the second preceding calendar
33 month by the Department, and not including an amount equal to
34 the amount of refunds made during the second preceding
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1 calendar month by the Department on behalf of such
2 municipality, less the amount expended during the second
3 preceding month by the Department to be paid from the
4 appropriation to the Department from the Home Rule Municipal
5 Retailers' Occupation Tax Trust Fund. The appropriation to
6 cover the costs incurred by the Department in administering
7 and enforcing this Section shall not exceed 2% of the amount
8 estimated to be deposited into the Home Rule Municipal
9 Retailers' Occupation Tax Trust Fund during the fiscal year
10 for which the appropriation is made. Within 10 days after
11 receipt by the State Comptroller of the disbursement
12 certification to the municipalities provided for in this
13 Section to be given to the State Comptroller by the
14 Department, the State Comptroller shall cause the orders to
15 be drawn for the respective amounts in accordance with the
16 directions contained in that certification.
17 Any ordinance imposing or discontinuing any tax to be
18 collected and enforced by the Department under this Section
19 shall be adopted and a certified copy thereof filed with the
20 Department on or before October 1, whereupon the Department
21 of Revenue shall proceed to administer and enforce this
22 Section on behalf of the municipalities as of January 1 next
23 following such adoption and filing.
24 Nothing in this subsection (c) shall prevent a home rule
25 municipality from collecting the tax pursuant to subsection
26 (a) in any situation where such tax is not collected by the
27 Department of Revenue under this subsection (c).
28 (d) Any unobligated balance remaining in the Municipal
29 Retailers' Occupation Tax Fund on December 31, 1989, which
30 fund was abolished by Public Act 85-1135, and all receipts of
31 municipal tax as a result of audits of liability periods
32 prior to January 1, 1990, shall be paid into the Local
33 Government Tax Fund, for distribution as provided by this
34 Section prior to the enactment of Public Act 85-1135. All
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1 receipts of municipal tax as a result of an assessment not
2 arising from an audit, for liability periods prior to January
3 1, 1990, shall be paid into the Local Government Tax Fund for
4 distribution before July 1, 1990, as provided by this Section
5 prior to the enactment of Public Act 85-1135, and on and
6 after July 1, 1990, all such receipts shall be distributed as
7 provided in Section 6z-18 of the State Finance Act.
8 (e) As used in this Section, "Municipal" and
9 "Municipality" means a city, village or incorporated town,
10 including an incorporated town which has superseded a civil
11 township.
12 (f) This Section shall be known and may be cited as the
13 "Home Rule Municipal Use Tax Act".
14 (Source: P.A. 90-562, eff. 12-16-97.)
15 (65 ILCS 5/8-11-15) (from Ch. 24, par. 8-11-15)
16 Sec. 8-11-15. Municipal motor fuel tax.
17 (a) The corporate authorities of a municipality of over
18 100,000 inhabitants may, upon approval of the electors of the
19 municipality pursuant to subsection (b), impose a tax of one
20 cent per gallon on motor fuel sold at retail within such
21 municipality. A tax imposed pursuant to this Section shall be
22 paid in addition to any other taxes on such motor fuel.
23 A municipality that has not imposed a tax under this
24 Section before the effective date of this amendatory Act of
25 1998 shall not impose such a tax on or after that date. A
26 municipality that has imposed a tax under this Section before
27 the effective date of this amendatory Act of 1998 shall not
28 increase the rate of the tax on or after that date. This
29 amendatory Act of 1998 is a denial and limitation of home
30 rule powers to tax under subsection (g) of Section 6 of
31 Article VII of the Illinois Constitution.
32 (b) The corporate authorities of the municipality may by
33 resolution call for the submission to the electors of the
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1 municipality of the question of whether the municipality
2 shall impose such tax. Such question shall be certified by
3 the municipal clerk to the election authority in accordance
4 with Section 28-5 of The Election Code. The question shall be
5 in substantially the following form:
6 -------------------------------------------------------------
7 Shall the city (village or
8 incorporated town) of ....... YES
9 impose a tax of one cent per -----------------------------
10 gallon on motor fuel sold at NO
11 retail within its boundaries?
12 -------------------------------------------------------------
13 If a majority of the electors in the municipality voting
14 upon the question vote in the affirmative, such tax shall be
15 imposed.
16 (c) The purchaser of the motor fuel shall be liable for
17 payment of a tax imposed pursuant to this Section. This
18 Section shall not be construed to impose a tax on the
19 occupation of persons engaged in the sale of motor fuel.
20 If a municipality imposes a tax on motor fuel pursuant to
21 this Section, it shall be the duty of any person engaged in
22 the retail sale of motor fuel within such municipality to
23 collect such tax from the purchaser at the same time he
24 collects the purchase price of the motor fuel and to pay over
25 such tax to the municipality as prescribed by the ordinance
26 of the municipality imposing such tax.
27 (d) For purposes of this Section, "motor fuel" shall
28 have the same meaning as provided in the "Motor Fuel Tax
29 Law".
30 (Source: P.A. 84-1099.)
31 Section 35. The Civic Center Code is amended by changing
32 Section 245-12 as follows:
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1 (70 ILCS 200/245-12)
2 Sec. 245-12. Use and occupation taxes.
3 (a) The Authority may adopt a resolution that authorizes
4 a referendum on the question of whether the Authority shall
5 be authorized to impose a retailers' occupation tax, a
6 service occupation tax, and a use tax in one-quarter percent
7 increments at a rate not to exceed 1%. The Authority shall
8 certify the question to the proper election authorities who
9 shall submit the question to the voters of the metropolitan
10 area at the next regularly scheduled election in accordance
11 with the general election law. The question shall be in
12 substantially the following form:
13 "Shall the Salem Civic Center Authority be authorized to
14 impose a retailers' occupation tax, a service occupation
15 tax, and a use tax at the rate of (rate) for the sole
16 purpose of obtaining funds for the support, construction,
17 maintenance, or financing of a facility of the
18 Authority?"
19 Votes shall be recorded as "yes" or "no". If a majority
20 of all votes cast on the proposition are in favor of the
21 proposition, the Authority is authorized to impose the tax.
22 (b) The Authority shall impose the retailers' occupation
23 tax upon all persons engaged in the business of selling
24 tangible personal property at retail in the metropolitan
25 area, at the rate approved by referendum, on the gross
26 receipts from the sales made in the course of such business
27 within the metropolitan area. The tax imposed under this
28 Section and all civil penalties that may be assessed as an
29 incident thereof shall be collected and enforced by the
30 Department of Revenue. The Department has full power to
31 administer and enforce this Section; to collect all taxes and
32 penalties so collected in the manner provided in this
33 Section; and to determine all rights to credit memoranda
34 arising on account of the erroneous payment of tax or penalty
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1 hereunder. In the administration of, and compliance with,
2 this Section, the Department and persons who are subject to
3 this Section shall (i) have the same rights, remedies,
4 privileges, immunities, powers and duties, (ii) be subject to
5 the same conditions, restrictions, limitations, penalties,
6 exclusions, exemptions, and definitions of terms, and (iii)
7 employ the same modes of procedure as are prescribed in
8 Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2,
9 2-5, 2-5.5, 2-10 (in respect to all provisions therein other
10 than the State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3
11 (except as to the disposition of taxes and penalties
12 collected and provisions related to quarter monthly
13 payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l,
14 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
15 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
16 Penalty and Interest Act, as fully as if those provisions
17 were set forth in this subsection.
18 If the Authority has not imposed a tax under this
19 subsection on the sale of motor fuel or gasohol before the
20 effective date of this amendatory Act of 1998, then the
21 Authority shall not impose such a tax on or after that date.
22 If the Authority has imposed a tax under this subsection on
23 the sale of motor fuel or gasohol before the effective date
24 of this amendatory Act of 1998, then the Authority shall not
25 increase the rate of the tax on or after that date.
26 Persons subject to any tax imposed under this subsection
27 may reimburse themselves for their seller's tax liability by
28 separately stating the tax as an additional charge, which
29 charge may be stated in combination, in a single amount, with
30 State taxes that sellers are required to collect, in
31 accordance with such bracket schedules as the Department may
32 prescribe.
33 Whenever the Department determines that a refund should
34 be made under this subsection to a claimant instead of
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1 issuing a credit memorandum, the Department shall notify the
2 State Comptroller, who shall cause the warrant to be drawn
3 for the amount specified, and to the person named, in the
4 notification from the Department. The refund shall be paid
5 by the State Treasurer out of the tax fund referenced under
6 paragraph (g) of this Section.
7 If a tax is imposed under this subsection (b), a tax
8 shall also be imposed at the same rate under subsections (c)
9 and (d) of this Section.
10 For the purpose of determining whether a tax authorized
11 under this Section is applicable, a retail sale, by a
12 producer of coal or other mineral mined in Illinois, is a
13 sale at retail at the place where the coal or other mineral
14 mined in Illinois is extracted from the earth. This
15 paragraph does not apply to coal or other mineral when it is
16 delivered or shipped by the seller to the purchaser at a
17 point outside Illinois so that the sale is exempt under the
18 Federal Constitution as a sale in interstate or foreign
19 commerce.
20 Nothing in this Section shall be construed to authorize
21 the Authority to impose a tax upon the privilege of engaging
22 in any business which under the Constitution of the United
23 States may not be made the subject of taxation by this State.
24 (c) If a tax has been imposed under subsection (b), a
25 service occupation tax shall also be imposed at the same rate
26 upon all persons engaged, in the metropolitan area, in the
27 business of making sales of service, who, as an incident to
28 making those sales of service, transfer tangible personal
29 property within the metropolitan area as an incident to a
30 sale of service. The tax imposed under this subsection and
31 all civil penalties that may be assessed as an incident
32 thereof shall be collected and enforced by the Department of
33 Revenue. The Department has full power to administer and
34 enforce this paragraph; to collect all taxes and penalties
SB1458 Engrossed -151- LRB9011307KDbd
1 due hereunder; to dispose of taxes and penalties so collected
2 in the manner hereinafter provided; and to determine all
3 rights to credit memoranda arising on account of the
4 erroneous payment of tax or penalty hereunder. In the
5 administration of, and compliance with this paragraph, the
6 Department and persons who are subject to this paragraph
7 shall (i) have the same rights, remedies, privileges,
8 immunities, powers, and duties, (ii) be subject to the same
9 conditions, restrictions, limitations, penalties, exclusions,
10 exemptions, and definitions of terms, and (iii) employ the
11 same modes of procedure as are prescribed in Sections 2
12 (except that the reference to State in the definition of
13 supplier maintaining a place of business in this State shall
14 mean the metropolitan area), 2a, 2b, 3 through 3-55 (in
15 respect to all provisions therein other than the State rate
16 of tax), 4 (except that the reference to the State shall be
17 to the Authority), 5, 7, 8 (except that the jurisdiction to
18 which the tax shall be a debt to the extent indicated in that
19 Section 8 shall be the Authority), 9 (except as to the
20 disposition of taxes and penalties collected, and except that
21 the returned merchandise credit for this tax may not be taken
22 against any State tax), 11, 12 (except the reference therein
23 to Section 2b of the Retailers' Occupation Tax Act), 13
24 (except that any reference to the State shall mean the
25 Authority), 15, 16, 17, 18, 19 and 20 of the Service
26 Occupation Tax Act and Section 3-7 of the Uniform Penalty and
27 Interest Act, as fully as if those provisions were set forth
28 herein.
29 If the Authority has not imposed a tax under this
30 subsection on the selling price of motor fuel or gasohol
31 before the effective date of this amendatory Act of 1998,
32 then the Authority shall not impose such a tax on or after
33 that date. If the Authority has imposed a tax under this
34 subsection on the selling price of motor fuel or gasohol
SB1458 Engrossed -152- LRB9011307KDbd
1 before the effective date of this amendatory Act of 1998,
2 then the Authority shall not increase the rate of the tax on
3 or after that date.
4 Persons subject to any tax imposed under the authority
5 granted in this subsection may reimburse themselves for their
6 serviceman's tax liability by separately stating the tax as
7 an additional charge, which charge may be stated in
8 combination, in a single amount, with State tax that
9 servicemen are authorized to collect under the Service Use
10 Tax Act, in accordance with such bracket schedules as the
11 Department may prescribe.
12 Whenever the Department determines that a refund should
13 be made under this subsection to a claimant instead of
14 issuing a credit memorandum, the Department shall notify the
15 State Comptroller, who shall cause the warrant to be drawn
16 for the amount specified, and to the person named, in the
17 notification from the Department. The refund shall be paid
18 by the State Treasurer out of the tax fund referenced under
19 paragraph (g) of this Section.
20 Nothing in this paragraph shall be construed to authorize
21 the Authority to impose a tax upon the privilege of engaging
22 in any business which under the Constitution of the United
23 States may not be made the subject of taxation by the State.
24 (d) If a tax has been imposed under subsection (b), a
25 use tax shall also be imposed at the same rate upon the
26 privilege of using, in the metropolitan area, any item of
27 tangible personal property that is purchased outside the
28 metropolitan area at retail from a retailer, and that is
29 titled or registered at a location within the metropolitan
30 area with an agency of this State's government. "Selling
31 price" is defined as in the Use Tax Act. The tax shall be
32 collected from persons whose Illinois address for titling or
33 registration purposes is given as being in the metropolitan
34 area. The tax shall be collected by the Department of
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1 Revenue for the Authority. The tax must be paid to the State,
2 or an exemption determination must be obtained from the
3 Department of Revenue, before the title or certificate of
4 registration for the property may be issued. The tax or
5 proof of exemption may be transmitted to the Department by
6 way of the State agency with which, or the State officer with
7 whom, the tangible personal property must be titled or
8 registered if the Department and the State agency or State
9 officer determine that this procedure will expedite the
10 processing of applications for title or registration.
11 The Department has full power to administer and enforce
12 this paragraph; to collect all taxes, penalties and interest
13 due hereunder; to dispose of taxes, penalties and interest so
14 collected in the manner hereinafter provided; and to
15 determine all rights to credit memoranda or refunds arising
16 on account of the erroneous payment of tax, penalty or
17 interest hereunder. In the administration of, and compliance
18 with, this subsection, the Department and persons who are
19 subject to this paragraph shall (i) have the same rights,
20 remedies, privileges, immunities, powers, and duties, (ii) be
21 subject to the same conditions, restrictions, limitations,
22 penalties, exclusions, exemptions, and definitions of terms,
23 and (iii) employ the same modes of procedure as are
24 prescribed in Sections 2 (except the definition of "retailer
25 maintaining a place of business in this State"), 3, 3-5,
26 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a, 4, 6, 7, 8 (except
27 that the jurisdiction to which the tax shall be a debt to the
28 extent indicated in that Section 8 shall be the Authority), 9
29 (except provisions relating to quarter monthly payments), 10,
30 11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22 of the Use
31 Tax Act and Section 3-7 of the Uniform Penalty and Interest
32 Act, that are not inconsistent with this paragraph, as fully
33 as if those provisions were set forth herein.
34 If the Authority has not imposed a tax under this
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1 subsection on the use of motor fuel or gasohol before the
2 effective date of this amendatory Act of 1998, then the
3 Authority shall not impose such a tax on or after that date.
4 If the Authority has imposed a tax under this subsection on
5 the use of motor fuel or gasohol before the effective date of
6 this amendatory Act of 1998, then the Authority shall not
7 increase the rate of the tax on or after that date.
8 Whenever the Department determines that a refund should
9 be made under this subsection to a claimant instead of
10 issuing a credit memorandum, the Department shall notify the
11 State Comptroller, who shall cause the order to be drawn for
12 the amount specified, and to the person named, in the
13 notification from the Department. The refund shall be paid by
14 the State Treasurer out of the tax fund referenced under
15 paragraph (g) of this Section.
16 (e) A certificate of registration issued by the State
17 Department of Revenue to a retailer under the Retailers'
18 Occupation Tax Act or under the Service Occupation Tax Act
19 shall permit the registrant to engage in a business that is
20 taxed under the tax imposed under paragraphs (b), (c), or (d)
21 of this Section and no additional registration shall be
22 required. A certificate issued under the Use Tax Act or the
23 Service Use Tax Act shall be applicable with regard to any
24 tax imposed under paragraph (c) of this Section.
25 (f) The results of any election authorizing a
26 proposition to impose a tax under this Section or effecting a
27 change in the rate of tax shall be certified by the proper
28 election authorities and filed with the Illinois Department
29 on or before the first day of April. In addition, an
30 ordinance imposing, discontinuing, or effecting a change in
31 the rate of tax under this Section shall be adopted and a
32 certified copy thereof filed with the Department on or before
33 the first day of April. After proper receipt of such
34 certifications, the Department shall proceed to administer
SB1458 Engrossed -155- LRB9011307KDbd
1 and enforce this Section as of the first day of July next
2 following such adoption and filing.
3 (g) The Department of Revenue shall, upon collecting any
4 taxes and penalties as provided in this Section, pay the
5 taxes and penalties over to the State Treasurer as trustee
6 for the Authority. The taxes and penalties shall be held in a
7 trust fund outside the State Treasury. On or before the 25th
8 day of each calendar month, the Department of Revenue shall
9 prepare and certify to the Comptroller of the State of
10 Illinois the amount to be paid to the Authority, which shall
11 be the balance in the fund, less any amount determined by the
12 Department to be necessary for the payment of refunds. Within
13 10 days after receipt by the Comptroller of the certification
14 of the amount to be paid to the Authority, the Comptroller
15 shall cause an order to be drawn for payment for the amount
16 in accordance with the directions contained in the
17 certification. Amounts received from the tax imposed under
18 this Section shall be used only for the support,
19 construction, maintenance, or financing of a facility of the
20 Authority.
21 (h) When certifying the amount of a monthly disbursement
22 to the Authority under this Section, the Department shall
23 increase or decrease the amounts by an amount necessary to
24 offset any miscalculation of previous disbursements. The
25 offset amount shall be the amount erroneously disbursed
26 within the previous 6 months from the time a miscalculation
27 is discovered.
28 (i) This Section may be cited as the Salem Civic Center
29 Use and Occupation Tax Law.
30 (Source: P.A. 90-328, eff. 1-1-98.)
31 Section 40. The Local Mass Transit District Act is
32 amended by changing Section 5.01 as follows:
SB1458 Engrossed -156- LRB9011307KDbd
1 (70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)
2 Sec. 5.01. Metro East Mass Transit District; use and
3 occupation taxes.
4 (a) The Board of Trustees of any Metro East Mass Transit
5 District may, by ordinance adopted with the concurrence of
6 two-thirds of the then trustees, impose throughout the
7 District any or all of the taxes and fees provided in this
8 Section. All taxes and fees imposed under this Section shall
9 be used only for public mass transportation systems, and the
10 amount used to provide mass transit service to unserved areas
11 of the District shall be in the same proportion to the total
12 proceeds as the number of persons residing in the unserved
13 areas is to the total population of the District. Except as
14 otherwise provided in this Act, taxes imposed under this
15 Section and civil penalties imposed incident thereto shall be
16 collected and enforced by the State Department of Revenue.
17 The Department shall have the power to administer and enforce
18 the taxes and to determine all rights for refunds for
19 erroneous payments of the taxes.
20 (b) The Board may impose a Metro East Mass Transit
21 District Retailers' Occupation Tax upon all persons engaged
22 in the business of selling tangible personal property at
23 retail in the district at a rate of 1/4 of 1%, or as
24 authorized under subsection (d-5) of this Section, of the
25 gross receipts from the sales made in the course of such
26 business within the district. The tax imposed under this
27 Section and all civil penalties that may be assessed as an
28 incident thereof shall be collected and enforced by the State
29 Department of Revenue. The Department shall have full power
30 to administer and enforce this Section; to collect all taxes
31 and penalties so collected in the manner hereinafter
32 provided; and to determine all rights to credit memoranda
33 arising on account of the erroneous payment of tax or penalty
34 hereunder. In the administration of, and compliance with,
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1 this Section, the Department and persons who are subject to
2 this Section shall have the same rights, remedies,
3 privileges, immunities, powers and duties, and be subject to
4 the same conditions, restrictions, limitations, penalties,
5 exclusions, exemptions and definitions of terms and employ
6 the same modes of procedure, as are prescribed in Sections 1,
7 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect
8 to all provisions therein other than the State rate of tax),
9 2c, 3 (except as to the disposition of taxes and penalties
10 collected), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
11 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the
12 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
13 Penalty and Interest Act, as fully as if those provisions
14 were set forth herein.
15 If the Board has not imposed a tax under this subsection
16 on the sale of motor fuel or gasohol before the effective
17 date of this amendatory Act of 1998, then the Board shall not
18 impose such a tax on or after that date. If the Board has
19 imposed a tax under this subsection on the sale of motor fuel
20 or gasohol before the effective date of this amendatory Act
21 of 1998, then the Board shall not increase the rate of the
22 tax on or after that date.
23 Persons subject to any tax imposed under the Section may
24 reimburse themselves for their seller's tax liability
25 hereunder by separately stating the tax as an additional
26 charge, which charge may be stated in combination, in a
27 single amount, with State taxes that sellers are required to
28 collect under the Use Tax Act, in accordance with such
29 bracket schedules as the Department may prescribe.
30 Whenever the Department determines that a refund should
31 be made under this Section to a claimant instead of issuing a
32 credit memorandum, the Department shall notify the State
33 Comptroller, who shall cause the warrant to be drawn for the
34 amount specified, and to the person named, in the
SB1458 Engrossed -158- LRB9011307KDbd
1 notification from the Department. The refund shall be paid
2 by the State Treasurer out of the Metro East Mass Transit
3 District tax fund established under paragraph (g) of this
4 Section.
5 If a tax is imposed under this subsection (b), a tax
6 shall also be imposed under subsections (c) and (d) of this
7 Section.
8 For the purpose of determining whether a tax authorized
9 under this Section is applicable, a retail sale, by a
10 producer of coal or other mineral mined in Illinois, is a
11 sale at retail at the place where the coal or other mineral
12 mined in Illinois is extracted from the earth. This
13 paragraph does not apply to coal or other mineral when it is
14 delivered or shipped by the seller to the purchaser at a
15 point outside Illinois so that the sale is exempt under the
16 Federal Constitution as a sale in interstate or foreign
17 commerce.
18 Nothing in this Section shall be construed to authorize
19 the Metro East Mass Transit District to impose a tax upon the
20 privilege of engaging in any business which under the
21 Constitution of the United States may not be made the subject
22 of taxation by this State.
23 (c) If a tax has been imposed under subsection (b), a
24 Metro East Mass Transit District Service Occupation Tax shall
25 also be imposed upon all persons engaged, in the district, in
26 the business of making sales of service, who, as an incident
27 to making those sales of service, transfer tangible personal
28 property within the District, either in the form of tangible
29 personal property or in the form of real estate as an
30 incident to a sale of service. The tax rate shall be 1/4%, or
31 as authorized under subsection (d-5) of this Section, of the
32 selling price of tangible personal property so transferred
33 within the district. The tax imposed under this paragraph
34 and all civil penalties that may be assessed as an incident
SB1458 Engrossed -159- LRB9011307KDbd
1 thereof shall be collected and enforced by the State
2 Department of Revenue. The Department shall have full power
3 to administer and enforce this paragraph; to collect all
4 taxes and penalties due hereunder; to dispose of taxes and
5 penalties so collected in the manner hereinafter provided;
6 and to determine all rights to credit memoranda arising on
7 account of the erroneous payment of tax or penalty hereunder.
8 In the administration of, and compliance with this paragraph,
9 the Department and persons who are subject to this paragraph
10 shall have the same rights, remedies, privileges, immunities,
11 powers and duties, and be subject to the same conditions,
12 restrictions, limitations, penalties, exclusions, exemptions
13 and definitions of terms and employ the same modes of
14 procedure as are prescribed in Sections 1a-1, 2 (except that
15 the reference to State in the definition of supplier
16 maintaining a place of business in this State shall mean the
17 Authority), 2a, 3 through 3-50 (in respect to all provisions
18 therein other than the State rate of tax), 4 (except that the
19 reference to the State shall be to the Authority), 5, 7, 8
20 (except that the jurisdiction to which the tax shall be a
21 debt to the extent indicated in that Section 8 shall be the
22 District), 9 (except as to the disposition of taxes and
23 penalties collected, and except that the returned merchandise
24 credit for this tax may not be taken against any State tax),
25 10, 11, 12 (except the reference therein to Section 2b of the
26 Retailers' Occupation Tax Act), 13 (except that any reference
27 to the State shall mean the District), the first paragraph of
28 Section 15, 16, 17, 18, 19 and 20 of the Service Occupation
29 Tax Act and Section 3-7 of the Uniform Penalty and Interest
30 Act, as fully as if those provisions were set forth herein.
31 If the Board has not imposed a tax under this subsection
32 on the selling price of motor fuel or gasohol before the
33 effective date of this amendatory Act of 1998, then the Board
34 shall not impose such a tax on or after that date. If the
SB1458 Engrossed -160- LRB9011307KDbd
1 Board has imposed a tax under this subsection on the selling
2 price of motor fuel or gasohol before the effective date of
3 this amendatory Act of 1998, then the Board shall not
4 increase the rate of the tax on or after that date.
5 Persons subject to any tax imposed under the authority
6 granted in this paragraph may reimburse themselves for their
7 serviceman's tax liability hereunder by separately stating
8 the tax as an additional charge, which charge may be stated
9 in combination, in a single amount, with State tax that
10 servicemen are authorized to collect under the Service Use
11 Tax Act, in accordance with such bracket schedules as the
12 Department may prescribe.
13 Whenever the Department determines that a refund should
14 be made under this paragraph to a claimant instead of issuing
15 a credit memorandum, the Department shall notify the State
16 Comptroller, who shall cause the warrant to be drawn for the
17 amount specified, and to the person named, in the
18 notification from the Department. The refund shall be paid
19 by the State Treasurer out of the Metro East Mass Transit
20 District tax fund established under paragraph (g) of this
21 Section.
22 Nothing in this paragraph shall be construed to authorize
23 the District to impose a tax upon the privilege of engaging
24 in any business which under the Constitution of the United
25 States may not be made the subject of taxation by the State.
26 (d) If a tax has been imposed under subsection (b), a
27 Metro East Mass Transit District Use Tax shall also be
28 imposed upon the privilege of using, in the district, any
29 item of tangible personal property that is purchased outside
30 the district at retail from a retailer, and that is titled or
31 registered with an agency of this State's government, at a
32 rate of 1/4%, or as authorized under subsection (d-5) of this
33 Section, of the selling price of the tangible personal
34 property within the District, as "selling price" is defined
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1 in the Use Tax Act. The tax shall be collected from persons
2 whose Illinois address for titling or registration purposes
3 is given as being in the District. The tax shall be
4 collected by the Department of Revenue for the Metro East
5 Mass Transit District. The tax must be paid to the State, or
6 an exemption determination must be obtained from the
7 Department of Revenue, before the title or certificate of
8 registration for the property may be issued. The tax or
9 proof of exemption may be transmitted to the Department by
10 way of the State agency with which, or the State officer with
11 whom, the tangible personal property must be titled or
12 registered if the Department and the State agency or State
13 officer determine that this procedure will expedite the
14 processing of applications for title or registration.
15 The Department shall have full power to administer and
16 enforce this paragraph; to collect all taxes, penalties and
17 interest due hereunder; to dispose of taxes, penalties and
18 interest so collected in the manner hereinafter provided; and
19 to determine all rights to credit memoranda or refunds
20 arising on account of the erroneous payment of tax, penalty
21 or interest hereunder. In the administration of, and
22 compliance with, this paragraph, the Department and persons
23 who are subject to this paragraph shall have the same rights,
24 remedies, privileges, immunities, powers and duties, and be
25 subject to the same conditions, restrictions, limitations,
26 penalties, exclusions, exemptions and definitions of terms
27 and employ the same modes of procedure, as are prescribed in
28 Sections 2 (except the definition of "retailer maintaining a
29 place of business in this State"), 3 through 3-80 (except
30 provisions pertaining to the State rate of tax, and except
31 provisions concerning collection or refunding of the tax by
32 retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
33 pertaining to claims by retailers and except the last
34 paragraph concerning refunds), 20, 21 and 22 of the Use Tax
SB1458 Engrossed -162- LRB9011307KDbd
1 Act and Section 3-7 of the Uniform Penalty and Interest Act,
2 that are not inconsistent with this paragraph, as fully as if
3 those provisions were set forth herein.
4 If the Board has not imposed a tax under this subsection
5 on the use of motor fuel or gasohol before the effective date
6 of this amendatory Act of 1998, then the Board shall not
7 impose such a tax on or after that date. If the Board has
8 imposed a tax under this subsection on the use of motor fuel
9 or gasohol before the effective date of this amendatory Act
10 of 1998, then the Board shall not increase the rate of the
11 tax on or after that date.
12 Whenever the Department determines that a refund should
13 be made under this paragraph to a claimant instead of issuing
14 a credit memorandum, the Department shall notify the State
15 Comptroller, who shall cause the order to be drawn for the
16 amount specified, and to the person named, in the
17 notification from the Department. The refund shall be paid by
18 the State Treasurer out of the Metro East Mass Transit
19 District tax fund established under paragraph (g) of this
20 Section.
21 (d-5) The county board of any county participating in
22 the Metro East Mass Transit District may authorize, by
23 ordinance, a referendum on the question of whether the tax
24 rates for the Metro East Mass Transit District Retailers'
25 Occupation Tax, the Metro East Mass Transit District Service
26 Occupation Tax, and the Metro East Mass Transit District Use
27 Tax for the District should be increased from 0.25% to 0.75%.
28 Upon adopting the ordinance, the county board shall certify
29 the proposition to the proper election officials who shall
30 submit the proposition to the voters of the District at the
31 next election, in accordance with the general election law.
32 The proposition shall be in substantially the following
33 form:
34 Shall the tax rates for the Metro East Mass Transit
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1 District Retailers' Occupation Tax, the Metro East Mass
2 Transit District Service Occupation Tax, and the Metro
3 East Mass Transit District Use Tax be increased from
4 0.25% to 0.75%?
5 The votes shall be recorded as "YES" or "NO". If a
6 majority of all votes cast on the proposition are for the
7 increase in the tax rates, the Metro East Mass Transit
8 District shall begin imposing the increased rates in the
9 District, and the Department of Revenue shall begin
10 collecting the increased amounts, as provided under this
11 Section. An ordinance imposing or discontinuing a tax
12 hereunder or effecting a change in the rate thereof shall be
13 adopted and a certified copy thereof filed with the
14 Department on or before the first day of October, whereupon
15 the Department shall proceed to administer and enforce this
16 Section as of the first day of January next following the
17 adoption and filing.
18 If the voters have approved a referendum under this
19 subsection, before November 1, 1994, to increase the tax rate
20 under this subsection, the Metro East Mass Transit District
21 Board of Trustees may adopt by a majority vote an ordinance
22 at any time before January 1, 1995 that excludes from the
23 rate increase tangible personal property that is titled or
24 registered with an agency of this State's government. The
25 ordinance excluding titled or registered tangible personal
26 property from the rate increase must be filed with the
27 Department at least 15 days before its effective date. At any
28 time after adopting an ordinance excluding from the rate
29 increase tangible personal property that is titled or
30 registered with an agency of this State's government, the
31 Metro East Mass Transit District Board of Trustees may adopt
32 an ordinance applying the rate increase to that tangible
33 personal property. The ordinance shall be adopted, and a
34 certified copy of that ordinance shall be filed with the
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1 Department, on or before October 1, whereupon the Department
2 shall proceed to administer and enforce the rate increase
3 against tangible personal property titled or registered with
4 an agency of this State's government as of the following
5 January 1. After December 31, 1995, any reimposed rate
6 increase in effect under this subsection shall no longer
7 apply to tangible personal property titled or registered with
8 an agency of this State's government. Beginning January 1,
9 1996, the Board of Trustees of any Metro East Mass Transit
10 District may never reimpose a previously excluded tax rate
11 increase on tangible personal property titled or registered
12 with an agency of this State's government.
13 (d-6) If the Board of Trustees of any Metro East Mass
14 Transit District has imposed a rate increase under subsection
15 (d-5) and filed an ordinance with the Department of Revenue
16 excluding titled property from the higher rate, then that
17 Board may, by ordinance adopted with the concurrence of
18 two-thirds of the then trustees, impose throughout the
19 District a fee. The fee on the excluded property shall not
20 exceed $20 per retail transaction or an amount equal to the
21 amount of tax excluded, whichever is less, on tangible
22 personal property that is titled or registered with an agency
23 of this State's government. The Board of Trustees of any
24 Metro East Mass Transit District shall have full power to
25 administer and enforce this subsection and to determine all
26 rights to credit memoranda or refunds arising on account of
27 the erroneous payment of the fee hereunder. The Board shall
28 proceed to administer and enforce this subsection as of the
29 first day of the second month following the adoption of the
30 ordinance.
31 (d-7) If a fee has been imposed under subsection (d-6),
32 a fee shall also be imposed upon the privilege of using, in
33 the district, any item of tangible personal property that is
34 titled or registered with any agency of this State's
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1 government, in an amount equal to the amount of the fee
2 imposed under subsection (d-6). The Board of Trustees of any
3 Metro East Mass Transit District shall have full power to
4 administer and enforce this subsection and to determine all
5 rights to credit memoranda or refunds arising on account of
6 the erroneous payment of the fee hereunder. The Board shall
7 proceed to administer and enforce this subsection
8 concurrently with the administration of the fee imposed under
9 subsection (d-6).
10 (d-8) No item of titled property shall be subject to
11 both the higher rate approved by referendum, as authorized
12 under subsection (d-5), and any fee imposed under subsection
13 (d-6) or (d-7).
14 (d-9) If fees have been imposed under subsections (d-6)
15 and (d-7), the Board shall forward a copy of the ordinance
16 adopting such fees, which shall include all zip codes in
17 whole or in part within the boundaries of the district, to
18 the Secretary of State within thirty days. By the 25th of
19 each month, the Secretary of State shall subsequently provide
20 the Board with a list of identifiable retail transactions
21 subject to the .25% rate occurring within the zip codes which
22 are in whole or in part within the boundaries of the district
23 and a list of title applications for addresses within the
24 boundaries of the district for the previous month.
25 (d-10) In the event that a retailer fails to pay
26 applicable fees within 30 days of the date of the
27 transaction, a penalty shall be assessed at the rate of 25%
28 of the amount of fees. Interest on both late fees and
29 penalties shall be assessed at the rate of 1% per month. All
30 fees, penalties, and attorney fees shall constitute a lien on
31 the personal and real property of the retailer. The Board of
32 Trustees of any Metro East Transit District shall have full
33 power to administer and enforce this subsection.
34 (e) A certificate of registration issued by the State
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1 Department of Revenue to a retailer under the Retailers'
2 Occupation Tax Act or under the Service Occupation Tax Act
3 shall permit the registrant to engage in a business that is
4 taxed under the tax imposed under paragraphs (b), (c) or (d)
5 of this Section and no additional registration shall be
6 required under the tax. A certificate issued under the Use
7 Tax Act or the Service Use Tax Act shall be applicable with
8 regard to any tax imposed under paragraph (c) of this
9 Section.
10 (f) The Board may impose a replacement vehicle tax of
11 $50 on any passenger car, as defined in Section 1-157 of the
12 Illinois Vehicle Code, purchased within the district area by
13 or on behalf of an insurance company to replace a passenger
14 car of an insured person in settlement of a total loss claim.
15 The tax imposed may not become effective before the first day
16 of the month following the passage of the ordinance imposing
17 the tax and receipt of a certified copy of the ordinance by
18 the Department of Revenue. The Department of Revenue shall
19 collect the tax for the district in accordance with Sections
20 3-2002 and 3-2003 of the Illinois Vehicle Code.
21 The Department shall immediately pay over to the State
22 Treasurer, ex officio, as trustee, all taxes collected
23 hereunder. On or before the 25th day of each calendar month,
24 the Department shall prepare and certify to the Comptroller
25 the disbursement of stated sums of money to named districts,
26 the districts to be those from which retailers have paid
27 taxes or penalties hereunder to the Department during the
28 second preceding calendar month. The amount to be paid to
29 each district shall be the amount collected hereunder during
30 the second preceding calendar month by the Department, less
31 any amount determined by the Department to be necessary for
32 the payment of refunds. Within 10 days after receipt by the
33 Comptroller of the disbursement certification to the
34 districts, provided for in this Section to be given to the
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1 Comptroller by the Department, the Comptroller shall cause
2 the orders to be drawn for the respective amounts in
3 accordance with the directions contained in the
4 certification.
5 (g) Any ordinance imposing or discontinuing any tax
6 under this Section shall be adopted and a certified copy
7 thereof filed with the Department on or before June 1,
8 whereupon the Department of Revenue shall proceed to
9 administer and enforce this Section on behalf of the Metro
10 East Mass Transit District as of September 1 next following
11 such adoption and filing. Beginning January 1, 1992, an
12 ordinance or resolution imposing or discontinuing the tax
13 hereunder shall be adopted and a certified copy thereof filed
14 with the Department on or before the first day of July,
15 whereupon the Department shall proceed to administer and
16 enforce this Section as of the first day of October next
17 following such adoption and filing. Beginning January 1,
18 1993, except as provided in subsection (d-5) of this Section,
19 an ordinance or resolution imposing or discontinuing the tax
20 hereunder shall be adopted and a certified copy thereof filed
21 with the Department on or before the first day of October,
22 whereupon the Department shall proceed to administer and
23 enforce this Section as of the first day of January next
24 following such adoption and filing.
25 (h) The State Department of Revenue shall, upon
26 collecting any taxes as provided in this Section, pay the
27 taxes over to the State Treasurer as trustee for the
28 District. The taxes shall be held in a trust fund outside the
29 State Treasury. On or before the 25th day of each calendar
30 month, the State Department of Revenue shall prepare and
31 certify to the Comptroller of the State of Illinois the
32 amount to be paid to the District, which shall be the then
33 balance in the fund, less any amount determined by the
34 Department to be necessary for the payment of refunds. Within
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1 10 days after receipt by the Comptroller of the certification
2 of the amount to be paid to the District, the Comptroller
3 shall cause an order to be drawn for payment for the amount
4 in accordance with the direction in the certification.
5 (Source: P.A. 88-115; 88-672, eff. 12-14-94; 89-436, eff.
6 1-1-96; 89-705, eff. 1-31-97.)
7 Section 45. The Regional Transportation Authority Act is
8 amended by changing Section 4.03 as follows:
9 (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
10 Sec. 4.03. Taxes.
11 (a) In order to carry out any of the powers or purposes
12 of the Authority, the Board may by ordinance adopted with the
13 concurrence of 9 of the then Directors, impose throughout the
14 metropolitan region any or all of the taxes provided in this
15 Section. Except as otherwise provided in this Act, taxes
16 imposed under this Section and civil penalties imposed
17 incident thereto shall be collected and enforced by the State
18 Department of Revenue. The Department shall have the power to
19 administer and enforce the taxes and to determine all rights
20 for refunds for erroneous payments of the taxes.
21 (b) The Board may impose a public transportation tax
22 upon all persons engaged in the metropolitan region in the
23 business of selling at retail motor fuel for operation of
24 motor vehicles upon public highways. The tax shall be at a
25 rate not to exceed 5% of the gross receipts from the sales of
26 motor fuel in the course of the business. As used in this
27 Act, the term "motor fuel" shall have the same meaning as in
28 the Motor Fuel Tax Act. The Board may provide for details of
29 the tax. The provisions of any tax shall conform, as closely
30 as may be practicable, to the provisions of the Municipal
31 Retailers Occupation Tax Act, including without limitation,
32 conformity to penalties with respect to the tax imposed and
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1 as to the powers of the State Department of Revenue to
2 promulgate and enforce rules and regulations relating to the
3 administration and enforcement of the provisions of the tax
4 imposed, except that reference in the Act to any municipality
5 shall refer to the Authority and the tax shall be imposed
6 only with regard to receipts from sales of motor fuel in the
7 metropolitan region, at rates as limited by this Section.
8 If the Board has not imposed a tax under this subsection
9 before the effective date of this amendatory Act of 1998,
10 then the Board shall not impose such a tax on or after that
11 date. If the Board has imposed a tax under this subsection
12 before the effective date of this amendatory Act of 1998,
13 then the Board shall not increase the rate of the tax on or
14 after that date.
15 (c) In connection with the tax imposed under paragraph
16 (b) of this Section the Board may impose a tax upon the
17 privilege of using in the metropolitan region motor fuel for
18 the operation of a motor vehicle upon public highways, the
19 tax to be at a rate not in excess of the rate of tax imposed
20 under paragraph (b) of this Section. The Board may provide
21 for details of the tax.
22 If the Board has not imposed a tax under this subsection
23 before the effective date of this amendatory Act of 1998,
24 then the Board shall not impose such a tax on or after that
25 date. If the Board has imposed a tax under this subsection
26 before the effective date of this amendatory Act of 1998,
27 then the Board shall not increase the rate of the tax on or
28 after that date.
29 (d) The Board may impose a motor vehicle parking tax
30 upon the privilege of parking motor vehicles at off-street
31 parking facilities in the metropolitan region at which a fee
32 is charged, and may provide for reasonable classifications in
33 and exemptions to the tax, for administration and enforcement
34 thereof and for civil penalties and refunds thereunder and
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1 may provide criminal penalties thereunder, the maximum
2 penalties not to exceed the maximum criminal penalties
3 provided in the Retailers' Occupation Tax Act. The Authority
4 may collect and enforce the tax itself or by contract with
5 any unit of local government. The State Department of
6 Revenue shall have no responsibility for the collection and
7 enforcement unless the Department agrees with the Authority
8 to undertake the collection and enforcement. As used in this
9 paragraph, the term "parking facility" means a parking area
10 or structure having parking spaces for more than 2 vehicles
11 at which motor vehicles are permitted to park in return for
12 an hourly, daily, or other periodic fee, whether publicly or
13 privately owned, but does not include parking spaces on a
14 public street, the use of which is regulated by parking
15 meters.
16 (e) The Board may impose a Regional Transportation
17 Authority Retailers' Occupation Tax upon all persons engaged
18 in the business of selling tangible personal property at
19 retail in the metropolitan region. In Cook County the tax
20 rate shall be 1% of the gross receipts from sales of food for
21 human consumption that is to be consumed off the premises
22 where it is sold (other than alcoholic beverages, soft drinks
23 and food that has been prepared for immediate consumption)
24 and prescription and nonprescription medicines, drugs,
25 medical appliances and insulin, urine testing materials,
26 syringes and needles used by diabetics, and 3/4% of the gross
27 receipts from other taxable sales made in the course of that
28 business. In DuPage, Kane, Lake, McHenry, and Will Counties,
29 the tax rate shall be 1/4% of the gross receipts from all
30 taxable sales made in the course of that business. The tax
31 imposed under this Section and all civil penalties that may
32 be assessed as an incident thereof shall be collected and
33 enforced by the State Department of Revenue. The Department
34 shall have full power to administer and enforce this Section;
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1 to collect all taxes and penalties so collected in the manner
2 hereinafter provided; and to determine all rights to credit
3 memoranda arising on account of the erroneous payment of tax
4 or penalty hereunder. In the administration of, and
5 compliance with this Section, the Department and persons who
6 are subject to this Section shall have the same rights,
7 remedies, privileges, immunities, powers and duties, and be
8 subject to the same conditions, restrictions, limitations,
9 penalties, exclusions, exemptions and definitions of terms,
10 and employ the same modes of procedure, as are prescribed in
11 Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
12 (in respect to all provisions therein other than the State
13 rate of tax), 2c, 3 (except as to the disposition of taxes
14 and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
15 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13
16 of the Retailers' Occupation Tax Act and Section 3-7 of the
17 Uniform Penalty and Interest Act, as fully as if those
18 provisions were set forth herein.
19 If the Board has not imposed a tax under this subsection
20 on the sale of motor fuel or gasohol before the effective
21 date of this amendatory Act of 1998, then the Board shall not
22 impose such a tax on or after that date. If the Board has
23 imposed a tax under this subsection on the sale of motor fuel
24 or gasohol before the effective date of this amendatory Act
25 of 1998, then the Board shall not increase the rate of the
26 tax on or after that date.
27 Persons subject to any tax imposed under the authority
28 granted in this Section may reimburse themselves for their
29 seller's tax liability hereunder by separately stating the
30 tax as an additional charge, which charge may be stated in
31 combination in a single amount with State taxes that sellers
32 are required to collect under the Use Tax Act, under any
33 bracket schedules the Department may prescribe.
34 Whenever the Department determines that a refund should
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1 be made under this Section to a claimant instead of issuing a
2 credit memorandum, the Department shall notify the State
3 Comptroller, who shall cause the warrant to be drawn for the
4 amount specified, and to the person named, in the
5 notification from the Department. The refund shall be paid
6 by the State Treasurer out of the Regional Transportation
7 Authority tax fund established under paragraph (n) of this
8 Section.
9 If a tax is imposed under this subsection (e), a tax
10 shall also be imposed under subsections (f) and (g) of this
11 Section.
12 For the purpose of determining whether a tax authorized
13 under this Section is applicable, a retail sale by a producer
14 of coal or other mineral mined in Illinois, is a sale at
15 retail at the place where the coal or other mineral mined in
16 Illinois is extracted from the earth. This paragraph does not
17 apply to coal or other mineral when it is delivered or
18 shipped by the seller to the purchaser at a point outside
19 Illinois so that the sale is exempt under the Federal
20 Constitution as a sale in interstate or foreign commerce.
21 Nothing in this Section shall be construed to authorize
22 the Regional Transportation Authority to impose a tax upon
23 the privilege of engaging in any business that under the
24 Constitution of the United States may not be made the subject
25 of taxation by this State.
26 (f) If a tax has been imposed under paragraph (e), a tax
27 shall also be imposed upon all persons engaged, in the
28 metropolitan region in the business of making sales of
29 service, who as an incident to making the sales of service,
30 transfer tangible personal property within the metropolitan
31 region, either in the form of tangible personal property or
32 in the form of real estate as an incident to a sale of
33 service. In Cook County, the tax rate shall be: (1) 1% of
34 the serviceman's cost price of food prepared for immediate
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1 consumption and transferred incident to a sale of service
2 subject to the service occupation tax by an entity licensed
3 under the Hospital Licensing Act or the Nursing Home Care Act
4 that is located in the metropolitan region; (2) 1% of the
5 selling price of food for human consumption that is to be
6 consumed off the premises where it is sold (other than
7 alcoholic beverages, soft drinks and food that has been
8 prepared for immediate consumption) and prescription and
9 nonprescription medicines, drugs, medical appliances and
10 insulin, urine testing materials, syringes and needles used
11 by diabetics; and (3) 3/4% of the selling price from other
12 taxable sales of tangible personal property transferred. In
13 DuPage, Kane, Lake, McHenry and Will Counties the rate shall
14 be 1/4% of the selling price of all tangible personal
15 property transferred.
16 The tax imposed under this paragraph and all civil
17 penalties that may be assessed as an incident thereof shall
18 be collected and enforced by the State Department of Revenue.
19 The Department shall have full power to administer and
20 enforce this paragraph; to collect all taxes and penalties
21 due hereunder; to dispose of taxes and penalties collected in
22 the manner hereinafter provided; and to determine all rights
23 to credit memoranda arising on account of the erroneous
24 payment of tax or penalty hereunder. In the administration
25 of and compliance with this paragraph, the Department and
26 persons who are subject to this paragraph shall have the same
27 rights, remedies, privileges, immunities, powers and duties,
28 and be subject to the same conditions, restrictions,
29 limitations, penalties, exclusions, exemptions and
30 definitions of terms, and employ the same modes of procedure,
31 as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
32 respect to all provisions therein other than the State rate
33 of tax), 4 (except that the reference to the State shall be
34 to the Authority), 5, 7, 8 (except that the jurisdiction to
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1 which the tax shall be a debt to the extent indicated in that
2 Section 8 shall be the Authority), 9 (except as to the
3 disposition of taxes and penalties collected, and except that
4 the returned merchandise credit for this tax may not be taken
5 against any State tax), 10, 11, 12 (except the reference
6 therein to Section 2b of the Retailers' Occupation Tax Act),
7 13 (except that any reference to the State shall mean the
8 Authority), the first paragraph of Section 15, 16, 17, 18, 19
9 and 20 of the Service Occupation Tax Act and Section 3-7 of
10 the Uniform Penalty and Interest Act, as fully as if those
11 provisions were set forth herein.
12 If the Board has not imposed a tax under this subsection
13 on the selling price of motor fuel or gasohol before the
14 effective date of this amendatory Act of 1998, then the Board
15 shall not impose such a tax on or after that date. If the
16 Board has imposed a tax under this subsection on the selling
17 price of motor fuel or gasohol before the effective date of
18 this amendatory Act of 1998, then the Board shall not
19 increase the rate of the tax on or after that date.
20 Persons subject to any tax imposed under the authority
21 granted in this paragraph may reimburse themselves for their
22 serviceman's tax liability hereunder by separately stating
23 the tax as an additional charge, that charge may be stated in
24 combination in a single amount with State tax that servicemen
25 are authorized to collect under the Service Use Tax Act,
26 under any bracket schedules the Department may prescribe.
27 Whenever the Department determines that a refund should
28 be made under this paragraph to a claimant instead of issuing
29 a credit memorandum, the Department shall notify the State
30 Comptroller, who shall cause the warrant to be drawn for the
31 amount specified, and to the person named in the notification
32 from the Department. The refund shall be paid by the State
33 Treasurer out of the Regional Transportation Authority tax
34 fund established under paragraph (n) of this Section.
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1 Nothing in this paragraph shall be construed to authorize
2 the Authority to impose a tax upon the privilege of engaging
3 in any business that under the Constitution of the United
4 States may not be made the subject of taxation by the State.
5 (g) If a tax has been imposed under paragraph (e), a tax
6 shall also be imposed upon the privilege of using in the
7 metropolitan region, any item of tangible personal property
8 that is purchased outside the metropolitan region at retail
9 from a retailer, and that is titled or registered with an
10 agency of this State's government. In Cook County the tax
11 rate shall be 3/4% of the selling price of the tangible
12 personal property, as "selling price" is defined in the Use
13 Tax Act. In DuPage, Kane, Lake, McHenry and Will counties
14 the tax rate shall be 1/4% of the selling price of the
15 tangible personal property, as "selling price" is defined in
16 the Use Tax Act. The tax shall be collected from persons
17 whose Illinois address for titling or registration purposes
18 is given as being in the metropolitan region. The tax shall
19 be collected by the Department of Revenue for the Regional
20 Transportation Authority. The tax must be paid to the State,
21 or an exemption determination must be obtained from the
22 Department of Revenue, before the title or certificate of
23 registration for the property may be issued. The tax or proof
24 of exemption may be transmitted to the Department by way of
25 the State agency with which, or the State officer with whom,
26 the tangible personal property must be titled or registered
27 if the Department and the State agency or State officer
28 determine that this procedure will expedite the processing of
29 applications for title or registration.
30 The Department shall have full power to administer and
31 enforce this paragraph; to collect all taxes, penalties and
32 interest due hereunder; to dispose of taxes, penalties and
33 interest collected in the manner hereinafter provided; and to
34 determine all rights to credit memoranda or refunds arising
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1 on account of the erroneous payment of tax, penalty or
2 interest hereunder. In the administration of and compliance
3 with this paragraph, the Department and persons who are
4 subject to this paragraph shall have the same rights,
5 remedies, privileges, immunities, powers and duties, and be
6 subject to the same conditions, restrictions, limitations,
7 penalties, exclusions, exemptions and definitions of terms
8 and employ the same modes of procedure, as are prescribed in
9 Sections 2 (except the definition of "retailer maintaining a
10 place of business in this State"), 3 through 3-80 (except
11 provisions pertaining to the State rate of tax, and except
12 provisions concerning collection or refunding of the tax by
13 retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
14 pertaining to claims by retailers and except the last
15 paragraph concerning refunds), 20, 21 and 22 of the Use Tax
16 Act, and are not inconsistent with this paragraph, as fully
17 as if those provisions were set forth herein.
18 If the Board has not imposed a tax under this subsection
19 on the use of motor fuel or gasohol before the effective date
20 of this amendatory Act of 1998, then the Board shall not
21 impose such a tax on or after that date. If the Board has
22 imposed a tax under this subsection on the use of motor fuel
23 or gasohol before the effective date of this amendatory Act
24 of 1998, then the Board shall not increase the rate of the
25 tax on or after that date.
26 Whenever the Department determines that a refund should
27 be made under this paragraph to a claimant instead of issuing
28 a credit memorandum, the Department shall notify the State
29 Comptroller, who shall cause the order to be drawn for the
30 amount specified, and to the person named in the notification
31 from the Department. The refund shall be paid by the State
32 Treasurer out of the Regional Transportation Authority tax
33 fund established under paragraph (n) of this Section.
34 (h) The Authority may impose a replacement vehicle tax
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1 of $50 on any passenger car as defined in Section 1-157 of
2 the Illinois Vehicle Code purchased within the metropolitan
3 region by or on behalf of an insurance company to replace a
4 passenger car of an insured person in settlement of a total
5 loss claim. The tax imposed may not become effective before
6 the first day of the month following the passage of the
7 ordinance imposing the tax and receipt of a certified copy of
8 the ordinance by the Department of Revenue. The Department
9 of Revenue shall collect the tax for the Authority in
10 accordance with Sections 3-2002 and 3-2003 of the Illinois
11 Vehicle Code.
12 The Department shall immediately pay over to the State
13 Treasurer, ex officio, as trustee, all taxes collected
14 hereunder. On or before the 25th day of each calendar month,
15 the Department shall prepare and certify to the Comptroller
16 the disbursement of stated sums of money to the Authority.
17 The amount to be paid to the Authority shall be the amount
18 collected hereunder during the second preceding calendar
19 month by the Department, less any amount determined by the
20 Department to be necessary for the payment of refunds.
21 Within 10 days after receipt by the Comptroller of the
22 disbursement certification to the Authority provided for in
23 this Section to be given to the Comptroller by the
24 Department, the Comptroller shall cause the orders to be
25 drawn for that amount in accordance with the directions
26 contained in the certification.
27 (i) The Board may not impose any other taxes except as
28 it may from time to time be authorized by law to impose.
29 (j) A certificate of registration issued by the State
30 Department of Revenue to a retailer under the Retailers'
31 Occupation Tax Act or under the Service Occupation Tax Act
32 shall permit the registrant to engage in a business that is
33 taxed under the tax imposed under paragraphs (b), (e), (f) or
34 (g) of this Section and no additional registration shall be
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1 required under the tax. A certificate issued under the Use
2 Tax Act or the Service Use Tax Act shall be applicable with
3 regard to any tax imposed under paragraph (c) of this
4 Section.
5 (k) The provisions of any tax imposed under paragraph
6 (c) of this Section shall conform as closely as may be
7 practicable to the provisions of the Use Tax Act, including
8 without limitation conformity as to penalties with respect to
9 the tax imposed and as to the powers of the State Department
10 of Revenue to promulgate and enforce rules and regulations
11 relating to the administration and enforcement of the
12 provisions of the tax imposed. The taxes shall be imposed
13 only on use within the metropolitan region and at rates as
14 provided in the paragraph.
15 (l) The Board in imposing any tax as provided in
16 paragraphs (b) and (c) of this Section, shall, after seeking
17 the advice of the State Department of Revenue, provide means
18 for retailers, users or purchasers of motor fuel for purposes
19 other than those with regard to which the taxes may be
20 imposed as provided in those paragraphs to receive refunds of
21 taxes improperly paid, which provisions may be at variance
22 with the refund provisions as applicable under the Municipal
23 Retailers Occupation Tax Act. The State Department of
24 Revenue may provide for certificates of registration for
25 users or purchasers of motor fuel for purposes other than
26 those with regard to which taxes may be imposed as provided
27 in paragraphs (b) and (c) of this Section to facilitate the
28 reporting and nontaxability of the exempt sales or uses.
29 (m) Any ordinance imposing or discontinuing any tax
30 under this Section shall be adopted and a certified copy
31 thereof filed with the Department on or before June 1,
32 whereupon the Department of Revenue shall proceed to
33 administer and enforce this Section on behalf of the Regional
34 Transportation Authority as of September 1 next following
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1 such adoption and filing. Beginning January 1, 1992, an
2 ordinance or resolution imposing or discontinuing the tax
3 hereunder shall be adopted and a certified copy thereof filed
4 with the Department on or before the first day of July,
5 whereupon the Department shall proceed to administer and
6 enforce this Section as of the first day of October next
7 following such adoption and filing. Beginning January 1,
8 1993, an ordinance or resolution imposing or discontinuing
9 the tax hereunder shall be adopted and a certified copy
10 thereof filed with the Department on or before the first day
11 of October, whereupon the Department shall proceed to
12 administer and enforce this Section as of the first day of
13 January next following such adoption and filing.
14 (n) The State Department of Revenue shall, upon
15 collecting any taxes as provided in this Section, pay the
16 taxes over to the State Treasurer as trustee for the
17 Authority. The taxes shall be held in a trust fund outside
18 the State Treasury. On or before the 25th day of each
19 calendar month, the State Department of Revenue shall prepare
20 and certify to the Comptroller of the State of Illinois the
21 amount to be paid to the Authority, which shall be the then
22 balance in the fund, less any amount determined by the
23 Department to be necessary for the payment of refunds. The
24 State Department of Revenue shall also certify to the
25 Authority the amount of taxes collected in each County other
26 than Cook County in the metropolitan region less the amount
27 necessary for the payment of refunds to taxpayers in the
28 County. With regard to the County of Cook, the certification
29 shall specify the amount of taxes collected within the City
30 of Chicago less the amount necessary for the payment of
31 refunds to taxpayers in the City of Chicago and the amount
32 collected in that portion of Cook County outside of Chicago
33 less the amount necessary for the payment of refunds to
34 taxpayers in that portion of Cook County outside of Chicago.
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1 Within 10 days after receipt by the Comptroller of the
2 certification of the amount to be paid to the Authority, the
3 Comptroller shall cause an order to be drawn for the payment
4 for the amount in accordance with the direction in the
5 certification.
6 In addition to the disbursement required by the preceding
7 paragraph, an allocation shall be made in July 1991 and each
8 year thereafter to the Regional Transportation Authority.
9 The allocation shall be made in an amount equal to the
10 average monthly distribution during the preceding calendar
11 year (excluding the 2 months of lowest receipts) and the
12 allocation shall include the amount of average monthly
13 distribution from the Regional Transportation Authority
14 Occupation and Use Tax Replacement Fund. The distribution
15 made in July 1992 and each year thereafter under this
16 paragraph and the preceding paragraph shall be reduced by the
17 amount allocated and disbursed under this paragraph in the
18 preceding calendar year. The Department of Revenue shall
19 prepare and certify to the Comptroller for disbursement the
20 allocations made in accordance with this paragraph.
21 (o) Failure to adopt a budget ordinance or otherwise to
22 comply with Section 4.01 of this Act or to adopt a Five-year
23 Program or otherwise to comply with paragraph (b) of Section
24 2.01 of this Act shall not affect the validity of any tax
25 imposed by the Authority otherwise in conformity with law.
26 (p) At no time shall a public transportation tax or
27 motor vehicle parking tax authorized under paragraphs (b),
28 (c) and (d) of this Section be in effect at the same time as
29 any retailers' occupation, use or service occupation tax
30 authorized under paragraphs (e), (f) and (g) of this Section
31 is in effect.
32 Any taxes imposed under the authority provided in
33 paragraphs (b), (c) and (d) shall remain in effect only until
34 the time as any tax authorized by paragraphs (e), (f) or (g)
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1 of this Section are imposed and becomes effective. Once any
2 tax authorized by paragraphs (e), (f) or (g) is imposed the
3 Board may not reimpose taxes as authorized in paragraphs (b),
4 (c) and (d) of the Section unless any tax authorized by
5 paragraphs (e), (f) or (g) of this Section becomes
6 ineffective by means other than an ordinance of the Board.
7 (q) Any existing rights, remedies and obligations
8 (including enforcement by the Regional Transportation
9 Authority) arising under any tax imposed under paragraphs
10 (b), (c) or (d) of this Section shall not be affected by the
11 imposition of a tax under paragraphs (e), (f) or (g) of this
12 Section.
13 (Source: P.A. 86-928; 86-1475; 86-1481; 87-205; 87-435;
14 87-876; 87-895.)
15 Section 50. The Water Commission Act of 1985 is amended
16 by changing Section 4 as follows:
17 (70 ILCS 3720/4) (from Ch. 111 2/3, par. 254)
18 Sec. 4. Taxes.
19 (a) The board of commissioners of any county water
20 commission may, by ordinance, impose throughout the territory
21 of the commission any or all of the taxes provided in this
22 Section for its corporate purposes. However, no county water
23 commission may impose any such tax unless the commission
24 certifies the proposition of imposing the tax to the proper
25 election officials, who shall submit the proposition to the
26 voters residing in the territory at an election in accordance
27 with the general election law, and the proposition has been
28 approved by a majority of those voting on the proposition.
29 The proposition shall be in the form provided in Section
30 5 or shall be substantially in the following form:
31 -------------------------------------------------------------
32 Shall the (insert corporate
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1 name of county water commission) YES
2 impose (state type of tax or ------------------------
3 taxes to be imposed) at the NO
4 rate of 1/4%?
5 -------------------------------------------------------------
6 Taxes imposed under this Section and civil penalties
7 imposed incident thereto shall be collected and enforced by
8 the State Department of Revenue. The Department shall have
9 the power to administer and enforce the taxes and to
10 determine all rights for refunds for erroneous payments of
11 the taxes.
12 (b) The board of commissioners may impose a County Water
13 Commission Retailers' Occupation Tax upon all persons engaged
14 in the business of selling tangible personal property at
15 retail in the territory of the commission at a rate of 1/4%
16 of the gross receipts from the sales made in the course of
17 such business within the territory. The tax imposed under
18 this paragraph and all civil penalties that may be assessed
19 as an incident thereof shall be collected and enforced by the
20 State Department of Revenue. The Department shall have full
21 power to administer and enforce this paragraph; to collect
22 all taxes and penalties due hereunder; to dispose of taxes
23 and penalties so collected in the manner hereinafter
24 provided; and to determine all rights to credit memoranda
25 arising on account of the erroneous payment of tax or penalty
26 hereunder. In the administration of, and compliance with,
27 this paragraph, the Department and persons who are subject to
28 this paragraph shall have the same rights, remedies,
29 privileges, immunities, powers and duties, and be subject to
30 the same conditions, restrictions, limitations, penalties,
31 exclusions, exemptions and definitions of terms, and employ
32 the same modes of procedure, as are prescribed in Sections 1,
33 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect
34 to all provisions therein other than the State rate of tax
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1 except that food for human consumption that is to be consumed
2 off the premises where it is sold (other than alcoholic
3 beverages, soft drinks, and food that has been prepared for
4 immediate consumption) and prescription and nonprescription
5 medicine, drugs, medical appliances and insulin, urine
6 testing materials, syringes, and needles used by diabetics,
7 for human use, shall not be subject to tax hereunder), 2c, 3
8 (except as to the disposition of taxes and penalties
9 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
10 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
11 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
12 Penalty and Interest Act, as fully as if those provisions
13 were set forth herein.
14 If the board of commissioners has not imposed a tax under
15 this subsection on the sale of motor fuel or gasohol before
16 the effective date of this amendatory Act of 1998, then the
17 board shall not impose such a tax on or after that date. If
18 the board of commissioners has imposed a tax under this
19 subsection on the sale of motor fuel or gasohol before the
20 effective date of this amendatory Act of 1998, then the board
21 shall not increase the rate of the tax on or after that date.
22 Persons subject to any tax imposed under the authority
23 granted in this paragraph may reimburse themselves for their
24 seller's tax liability hereunder by separately stating the
25 tax as an additional charge, which charge may be stated in
26 combination, in a single amount, with State taxes that
27 sellers are required to collect under the Use Tax Act and
28 under subsection (e) of Section 4.03 of the Regional
29 Transportation Authority Act, in accordance with such bracket
30 schedules as the Department may prescribe.
31 Whenever the Department determines that a refund should
32 be made under this paragraph to a claimant instead of issuing
33 a credit memorandum, the Department shall notify the State
34 Comptroller, who shall cause the warrant to be drawn for the
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1 amount specified, and to the person named, in the
2 notification from the Department. The refund shall be paid
3 by the State Treasurer out of a county water commission tax
4 fund established under paragraph (g) of this Section.
5 For the purpose of determining whether a tax authorized
6 under this paragraph is applicable, a retail sale by a
7 producer of coal or other mineral mined in Illinois is a sale
8 at retail at the place where the coal or other mineral mined
9 in Illinois is extracted from the earth. This paragraph does
10 not apply to coal or other mineral when it is delivered or
11 shipped by the seller to the purchaser at a point outside
12 Illinois so that the sale is exempt under the Federal
13 Constitution as a sale in interstate or foreign commerce.
14 If a tax is imposed under this subsection (b) a tax shall
15 also be imposed under subsections (c) and (d) of this
16 Section.
17 Nothing in this paragraph shall be construed to authorize
18 a county water commission to impose a tax upon the privilege
19 of engaging in any business which under the Constitution of
20 the United States may not be made the subject of taxation by
21 this State.
22 (c) If a tax has been imposed under subsection (b), a
23 tax shall also be imposed upon all persons engaged, in the
24 territory of the commission, in the business of making sales
25 of service, who, as an incident to making the sales of
26 service, transfer tangible personal property within the
27 territory. The tax rate shall be 1/4% of the selling price of
28 tangible personal property so transferred within the
29 territory. The tax imposed under this paragraph and all
30 civil penalties that may be assessed as an incident thereof
31 shall be collected and enforced by the State Department of
32 Revenue. The Department shall have full power to administer
33 and enforce this paragraph; to collect all taxes and
34 penalties due hereunder; to dispose of taxes and penalties so
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1 collected in the manner hereinafter provided; and to
2 determine all rights to credit memoranda arising on account
3 of the erroneous payment of tax or penalty hereunder. In the
4 administration of, and compliance with, this paragraph, the
5 Department and persons who are subject to this paragraph
6 shall have the same rights, remedies, privileges, immunities,
7 powers and duties, and be subject to the same conditions,
8 restrictions, limitations, penalties, exclusions, exemptions
9 and definitions of terms, and employ the same modes of
10 procedure, as are prescribed in Sections 1a-1, 2 (except that
11 the reference to State in the definition of supplier
12 maintaining a place of business in this State shall mean the
13 territory of the commission), 2a, 3 through 3-50 (in respect
14 to all provisions therein other than the State rate of tax
15 except that food for human consumption that is to be consumed
16 off the premises where it is sold (other than alcoholic
17 beverages, soft drinks, and food that has been prepared for
18 immediate consumption) and prescription and nonprescription
19 medicines, drugs, medical appliances and insulin, urine
20 testing materials, syringes, and needles used by diabetics,
21 for human use, shall not be subject to tax hereunder), 4
22 (except that the reference to the State shall be to the
23 territory of the commission), 5, 7, 8 (except that the
24 jurisdiction to which the tax shall be a debt to the extent
25 indicated in that Section 8 shall be the commission), 9
26 (except as to the disposition of taxes and penalties
27 collected and except that the returned merchandise credit for
28 this tax may not be taken against any State tax), 10, 11, 12
29 (except the reference therein to Section 2b of the Retailers'
30 Occupation Tax Act), 13 (except that any reference to the
31 State shall mean the territory of the commission), the first
32 paragraph of Section 15, 15.5, 16, 17, 18, 19 and 20 of the
33 Service Occupation Tax Act as fully as if those provisions
34 were set forth herein.
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1 If the board of commissioners has not imposed a tax under
2 this subsection on the selling price of motor fuel or gasohol
3 before the effective date of this amendatory Act of 1998,
4 then the board shall not impose such a tax on or after that
5 date. If the board of commissioners has imposed a tax under
6 this subsection on the selling price of motor fuel or gasohol
7 before the effective date of this amendatory Act of 1998,
8 then the board shall not increase the rate of the tax on or
9 after that date.
10 Persons subject to any tax imposed under the authority
11 granted in this paragraph may reimburse themselves for their
12 serviceman's tax liability hereunder by separately stating
13 the tax as an additional charge, which charge may be stated
14 in combination, in a single amount, with State tax that
15 servicemen are authorized to collect under the Service Use
16 Tax Act, and any tax for which servicemen may be liable under
17 subsection (f) of Sec. 4.03 of the Regional Transportation
18 Authority Act, in accordance with such bracket schedules as
19 the Department may prescribe.
20 Whenever the Department determines that a refund should
21 be made under this paragraph to a claimant instead of issuing
22 a credit memorandum, the Department shall notify the State
23 Comptroller, who shall cause the warrant to be drawn for the
24 amount specified, and to the person named, in the
25 notification from the Department. The refund shall be paid
26 by the State Treasurer out of a county water commission tax
27 fund established under paragraph (g) of this Section.
28 Nothing in this paragraph shall be construed to authorize
29 a county water commission to impose a tax upon the privilege
30 of engaging in any business which under the Constitution of
31 the United States may not be made the subject of taxation by
32 the State.
33 (d) If a tax has been imposed under subsection (b), a
34 tax shall also imposed upon the privilege of using, in the
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1 territory of the commission, any item of tangible personal
2 property that is purchased outside the territory at retail
3 from a retailer, and that is titled or registered with an
4 agency of this State's government, at a rate of 1/4% of the
5 selling price of the tangible personal property within the
6 territory, as "selling price" is defined in the Use Tax Act.
7 The tax shall be collected from persons whose Illinois
8 address for titling or registration purposes is given as
9 being in the territory. The tax shall be collected by the
10 Department of Revenue for a county water commission. The tax
11 must be paid to the State, or an exemption determination must
12 be obtained from the Department of Revenue, before the title
13 or certificate of registration for the property may be
14 issued. The tax or proof of exemption may be transmitted to
15 the Department by way of the State agency with which, or the
16 State officer with whom, the tangible personal property must
17 be titled or registered if the Department and the State
18 agency or State officer determine that this procedure will
19 expedite the processing of applications for title or
20 registration.
21 The Department shall have full power to administer and
22 enforce this paragraph; to collect all taxes, penalties and
23 interest due hereunder; to dispose of taxes, penalties and
24 interest so collected in the manner hereinafter provided; and
25 to determine all rights to credit memoranda or refunds
26 arising on account of the erroneous payment of tax, penalty
27 or interest hereunder. In the administration of, and
28 compliance with this paragraph, the Department and persons
29 who are subject to this paragraph shall have the same rights,
30 remedies, privileges, immunities, powers and duties, and be
31 subject to the same conditions, restrictions, limitations,
32 penalties, exclusions, exemptions and definitions of terms
33 and employ the same modes of procedure, as are prescribed in
34 Sections 2 (except the definition of "retailer maintaining a
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1 place of business in this State"), 3 through 3-80 (except
2 provisions pertaining to the State rate of tax, and except
3 provisions concerning collection or refunding of the tax by
4 retailers, and except that food for human consumption that is
5 to be consumed off the premises where it is sold (other than
6 alcoholic beverages, soft drinks, and food that has been
7 prepared for immediate consumption) and prescription and
8 nonprescription medicines, drugs, medical appliances and
9 insulin, urine testing materials, syringes, and needles used
10 by diabetics, for human use, shall not be subject to tax
11 hereunder), 4, 11, 12, 12a, 14, 15, 19 (except the portions
12 pertaining to claims by retailers and except the last
13 paragraph concerning refunds), 20, 21 and 22 of the Use Tax
14 Act and Section 3-7 of the Uniform Penalty and Interest Act
15 that are not inconsistent with this paragraph, as fully as if
16 those provisions were set forth herein.
17 If the board of commissioners has not imposed a tax under
18 this subsection on the use of motor fuel or gasohol before
19 the effective date of this amendatory Act of 1998, then the
20 board shall not impose such a tax on or after that date. If
21 the board of commissioners has imposed a tax under this
22 subsection on the use of motor fuel or gasohol before the
23 effective date of this amendatory Act of 1998, then the board
24 shall not increase the rate of the tax on or after that date.
25 Whenever the Department determines that a refund should
26 be made under this paragraph to a claimant instead of issuing
27 a credit memorandum, the Department shall notify the State
28 Comptroller, who shall cause the order to be drawn for the
29 amount specified, and to the person named, in the
30 notification from the Department. The refund shall be paid
31 by the State Treasurer out of a county water commission tax
32 fund established under paragraph (g) of this Section.
33 (e) A certificate of registration issued by the State
34 Department of Revenue to a retailer under the Retailers'
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1 Occupation Tax Act or under the Service Occupation Tax Act
2 shall permit the registrant to engage in a business that is
3 taxed under the tax imposed under paragraphs (b), (c) or (d)
4 of this Section and no additional registration shall be
5 required under the tax. A certificate issued under the Use
6 Tax Act or the Service Use Tax Act shall be applicable with
7 regard to any tax imposed under paragraph (c) of this
8 Section.
9 (f) Any ordinance imposing or discontinuing any tax
10 under this Section shall be adopted and a certified copy
11 thereof filed with the Department on or before June 1,
12 whereupon the Department of Revenue shall proceed to
13 administer and enforce this Section on behalf of the county
14 water commission as of September 1 next following the
15 adoption and filing. Beginning January 1, 1992, an ordinance
16 or resolution imposing or discontinuing the tax hereunder
17 shall be adopted and a certified copy thereof filed with the
18 Department on or before the first day of July, whereupon the
19 Department shall proceed to administer and enforce this
20 Section as of the first day of October next following such
21 adoption and filing. Beginning January 1, 1993, an ordinance
22 or resolution imposing or discontinuing the tax hereunder
23 shall be adopted and a certified copy thereof filed with the
24 Department on or before the first day of October, whereupon
25 the Department shall proceed to administer and enforce this
26 Section as of the first day of January next following such
27 adoption and filing.
28 (g) The State Department of Revenue shall, upon
29 collecting any taxes as provided in this Section, pay the
30 taxes over to the State Treasurer as trustee for the
31 commission. The taxes shall be held in a trust fund outside
32 the State Treasury. On or before the 25th day of each
33 calendar month, the State Department of Revenue shall prepare
34 and certify to the Comptroller of the State of Illinois the
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1 amount to be paid to the commission, which shall be the then
2 balance in the fund, less any amount determined by the
3 Department to be necessary for the payment of refunds. Within
4 10 days after receipt by the Comptroller of the certification
5 of the amount to be paid to the commission, the Comptroller
6 shall cause an order to be drawn for the payment for the
7 amount in accordance with the direction in the certification.
8 (Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
9 Section 95. No acceleration or delay. Where this Act
10 makes changes in a statute that is represented in this Act by
11 text that is not yet or no longer in effect (for example, a
12 Section represented by multiple versions), the use of that
13 text does not accelerate or delay the taking effect of (i)
14 the changes made by this Act or (ii) provisions derived from
15 any other Public Act.
16 Section 99. Effective date. This Act takes effect upon
17 becoming law, except that Sections 5 through 20 take effect
18 October 1, 1998.