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91_SB1118
LRB9102874PTpkA
1 AN ACT concerning taxation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Income Tax Act is amended by
5 changing Sections 203, 207, 502, 601.1, 905, and 911 and
6 adding Section 405 as follows:
7 (35 ILCS 5/203) (from Ch. 120, par. 2-203)
8 Sec. 203. Base income defined.
9 (a) Individuals.
10 (1) In general. In the case of an individual, base
11 income means an amount equal to the taxpayer's adjusted
12 gross income for the taxable year as modified by
13 paragraph (2).
14 (2) Modifications. The adjusted gross income
15 referred to in paragraph (1) shall be modified by adding
16 thereto the sum of the following amounts:
17 (A) An amount equal to all amounts paid or
18 accrued to the taxpayer as interest or dividends
19 during the taxable year to the extent excluded from
20 gross income in the computation of adjusted gross
21 income, except stock dividends of qualified public
22 utilities described in Section 305(e) of the
23 Internal Revenue Code;
24 (B) An amount equal to the amount of tax
25 imposed by this Act to the extent deducted from
26 gross income in the computation of adjusted gross
27 income for the taxable year;
28 (C) An amount equal to the amount received
29 during the taxable year as a recovery or refund of
30 real property taxes paid with respect to the
31 taxpayer's principal residence under the Revenue Act
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1 of 1939 and for which a deduction was previously
2 taken under subparagraph (L) of this paragraph (2)
3 prior to July 1, 1991, the retrospective application
4 date of Article 4 of Public Act 87-17. In the case
5 of multi-unit or multi-use structures and farm
6 dwellings, the taxes on the taxpayer's principal
7 residence shall be that portion of the total taxes
8 for the entire property which is attributable to
9 such principal residence;
10 (D) An amount equal to the amount of the
11 capital gain deduction allowable under the Internal
12 Revenue Code, to the extent deducted from gross
13 income in the computation of adjusted gross income;
14 (D-5) An amount, to the extent not included in
15 adjusted gross income, equal to the amount of money
16 withdrawn by the taxpayer in the taxable year from a
17 medical care savings account and the interest earned
18 on the account in the taxable year of a withdrawal
19 pursuant to subsection (b) of Section 20 of the
20 Medical Care Savings Account Act; and
21 (D-10) For taxable years ending after December
22 31, 1997, an amount equal to any eligible
23 remediation costs that the individual deducted in
24 computing adjusted gross income and for which the
25 individual claims a credit under subsection (l) of
26 Section 201;
27 and by deducting from the total so obtained the sum of
28 the following amounts:
29 (E) Any amount included in such total in
30 respect of any compensation (including but not
31 limited to any compensation paid or accrued to a
32 serviceman while a prisoner of war or missing in
33 action) paid to a resident by reason of being on
34 active duty in the Armed Forces of the United States
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1 and in respect of any compensation paid or accrued
2 to a resident who as a governmental employee was a
3 prisoner of war or missing in action, and in respect
4 of any compensation paid to a resident in 1971 or
5 thereafter for annual training performed pursuant to
6 Sections 502 and 503, Title 32, United States Code
7 as a member of the Illinois National Guard;
8 (F) An amount equal to all amounts included in
9 such total pursuant to the provisions of Sections
10 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
11 408 of the Internal Revenue Code, or included in
12 such total as distributions under the provisions of
13 any retirement or disability plan for employees of
14 any governmental agency or unit, or retirement
15 payments to retired partners, which payments are
16 excluded in computing net earnings from self
17 employment by Section 1402 of the Internal Revenue
18 Code and regulations adopted pursuant thereto;
19 (G) The valuation limitation amount;
20 (H) An amount equal to the amount of any tax
21 imposed by this Act which was refunded to the
22 taxpayer and included in such total for the taxable
23 year;
24 (I) An amount equal to all amounts included in
25 such total pursuant to the provisions of Section 111
26 of the Internal Revenue Code as a recovery of items
27 previously deducted from adjusted gross income in
28 the computation of taxable income;
29 (J) An amount equal to those dividends
30 included in such total which were paid by a
31 corporation which conducts business operations in an
32 Enterprise Zone or zones created under the Illinois
33 Enterprise Zone Act, and conducts substantially all
34 of its operations in an Enterprise Zone or zones;
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1 (K) An amount equal to those dividends
2 included in such total that were paid by a
3 corporation that conducts business operations in a
4 federally designated Foreign Trade Zone or Sub-Zone
5 and that is designated a High Impact Business
6 located in Illinois; provided that dividends
7 eligible for the deduction provided in subparagraph
8 (J) of paragraph (2) of this subsection shall not be
9 eligible for the deduction provided under this
10 subparagraph (K);
11 (L) For taxable years ending after December
12 31, 1983, an amount equal to all social security
13 benefits and railroad retirement benefits included
14 in such total pursuant to Sections 72(r) and 86 of
15 the Internal Revenue Code;
16 (M) With the exception of any amounts
17 subtracted under subparagraph (N), an amount equal
18 to the sum of all amounts disallowed as deductions
19 by (i) Section Sections 171(a)(2) of the Internal
20 Revenue Code and (ii) for taxable years beginning on
21 or after January 1, 2000, Sections 17 (a) (2), 265,
22 280C, and 832(b)(5)(B)(i), and 265(2) of the
23 Internal Revenue Code of 1954, as now or hereafter
24 amended, and all amounts of expenses allocable to
25 interest and disallowed as deductions by Section
26 265(1) of the Internal Revenue Code of 1954, as now
27 or hereafter amended; the provisions of this
28 subparagraph are exempt from the provisions of
29 Section 250;
30 (N) An amount equal to all amounts included in
31 such total which are exempt from taxation by this
32 State either by reason of its statutes or
33 Constitution or by reason of the Constitution,
34 treaties or statutes of the United States; provided
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1 that, in the case of any statute of this State that
2 exempts income derived from bonds or other
3 obligations from the tax imposed under this Act, the
4 amount exempted shall be the interest net of bond
5 premium amortization;
6 (O) An amount equal to any contribution made
7 to a job training project established pursuant to
8 the Tax Increment Allocation Redevelopment Act;
9 (P) An amount equal to the amount of the
10 deduction used to compute the federal income tax
11 credit for restoration of substantial amounts held
12 under claim of right for the taxable year pursuant
13 to Section 1341 of the Internal Revenue Code of
14 1986;
15 (Q) An amount equal to any amounts included in
16 such total, received by the taxpayer as an
17 acceleration in the payment of life, endowment or
18 annuity benefits in advance of the time they would
19 otherwise be payable as an indemnity for a terminal
20 illness;
21 (R) An amount equal to the amount of any
22 federal or State bonus paid to veterans of the
23 Persian Gulf War;
24 (S) An amount, to the extent included in
25 adjusted gross income, equal to the amount of a
26 contribution made in the taxable year on behalf of
27 the taxpayer to a medical care savings account
28 established under the Medical Care Savings Account
29 Act to the extent the contribution is accepted by
30 the account administrator as provided in that Act;
31 (T) An amount, to the extent included in
32 adjusted gross income, equal to the amount of
33 interest earned in the taxable year on a medical
34 care savings account established under the Medical
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1 Care Savings Account Act on behalf of the taxpayer,
2 other than interest added pursuant to item (D-5) of
3 this paragraph (2);
4 (U) For one taxable year beginning on or after
5 January 1, 1994, an amount equal to the total amount
6 of tax imposed and paid under subsections (a) and
7 (b) of Section 201 of this Act on grant amounts
8 received by the taxpayer under the Nursing Home
9 Grant Assistance Act during the taxpayer's taxable
10 years 1992 and 1993;
11 (V) Beginning with tax years ending on or
12 after December 31, 1995 and ending with tax years
13 ending on or before December 31, 1999, an amount
14 equal to the amount paid by a taxpayer who is a
15 self-employed taxpayer, a partner of a partnership,
16 or a shareholder in a Subchapter S corporation for
17 health insurance or long-term care insurance for
18 that taxpayer or that taxpayer's spouse or
19 dependents, to the extent that the amount paid for
20 that health insurance or long-term care insurance
21 may be deducted under Section 213 of the Internal
22 Revenue Code of 1986, has not been deducted on the
23 federal income tax return of the taxpayer, and does
24 not exceed the taxable income attributable to that
25 taxpayer's income, self-employment income, or
26 Subchapter S corporation income; except that no
27 deduction shall be allowed under this item (V) if
28 the taxpayer is eligible to participate in any
29 health insurance or long-term care insurance plan of
30 an employer of the taxpayer or the taxpayer's
31 spouse. The amount of the health insurance and
32 long-term care insurance subtracted under this item
33 (V) shall be determined by multiplying total health
34 insurance and long-term care insurance premiums paid
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1 by the taxpayer times a number that represents the
2 fractional percentage of eligible medical expenses
3 under Section 213 of the Internal Revenue Code of
4 1986 not actually deducted on the taxpayer's federal
5 income tax return; and
6 (W) For taxable years beginning on or after
7 January 1, 1998, all amounts included in the
8 taxpayer's federal gross income in the taxable year
9 from amounts converted from a regular IRA to a Roth
10 IRA. This paragraph is exempt from the provisions of
11 Section 250.
12 (b) Corporations.
13 (1) In general. In the case of a corporation, base
14 income means an amount equal to the taxpayer's taxable
15 income for the taxable year as modified by paragraph (2).
16 (2) Modifications. The taxable income referred to
17 in paragraph (1) shall be modified by adding thereto the
18 sum of the following amounts:
19 (A) An amount equal to all amounts paid or
20 accrued to the taxpayer as interest and all
21 distributions received from regulated investment
22 companies during the taxable year to the extent
23 excluded from gross income in the computation of
24 taxable income;
25 (B) An amount equal to the amount of tax
26 imposed by this Act to the extent deducted from
27 gross income in the computation of taxable income
28 for the taxable year;
29 (C) In the case of a regulated investment
30 company, an amount equal to the excess of (i) the
31 net long-term capital gain for the taxable year,
32 over (ii) the amount of the capital gain dividends
33 designated as such in accordance with Section
34 852(b)(3)(C) of the Internal Revenue Code and any
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1 amount designated under Section 852(b)(3)(D) of the
2 Internal Revenue Code, attributable to the taxable
3 year. (this amendatory Act of 1995 (Public Act
4 89-89) is declarative of existing law and is not a
5 new enactment);.
6 (D) The amount of any net operating loss
7 deduction taken in arriving at taxable income, other
8 than a net operating loss carried forward from a
9 taxable year ending prior to December 31, 1986; and
10 (E) For taxable years in which a net operating
11 loss carryback or carryforward from a taxable year
12 ending prior to December 31, 1986 is an element of
13 taxable income under paragraph (1) of subsection (e)
14 or subparagraph (E) of paragraph (2) of subsection
15 (e), the amount by which addition modifications
16 other than those provided by this subparagraph (E)
17 exceeded subtraction modifications in such earlier
18 taxable year, with the following limitations applied
19 in the order that they are listed:
20 (i) the addition modification relating to
21 the net operating loss carried back or forward
22 to the taxable year from any taxable year
23 ending prior to December 31, 1986 shall be
24 reduced by the amount of addition modification
25 under this subparagraph (E) which related to
26 that net operating loss and which was taken
27 into account in calculating the base income of
28 an earlier taxable year, and
29 (ii) the addition modification relating
30 to the net operating loss carried back or
31 forward to the taxable year from any taxable
32 year ending prior to December 31, 1986 shall
33 not exceed the amount of such carryback or
34 carryforward;
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1 For taxable years in which there is a net
2 operating loss carryback or carryforward from more
3 than one other taxable year ending prior to December
4 31, 1986, the addition modification provided in this
5 subparagraph (E) shall be the sum of the amounts
6 computed independently under the preceding
7 provisions of this subparagraph (E) for each such
8 taxable year;, and
9 (E-5) For taxable years ending after December
10 31, 1997, an amount equal to any eligible
11 remediation costs that the corporation deducted in
12 computing adjusted gross income and for which the
13 corporation claims a credit under subsection (l) of
14 Section 201;
15 and by deducting from the total so obtained the sum of
16 the following amounts:
17 (F) An amount equal to the amount of any tax
18 imposed by this Act which was refunded to the
19 taxpayer and included in such total for the taxable
20 year;
21 (G) An amount equal to any amount included in
22 such total under Section 78 of the Internal Revenue
23 Code;
24 (H) In the case of a regulated investment
25 company, an amount equal to the amount of exempt
26 interest dividends as defined in subsection (b) (5)
27 of Section 852 of the Internal Revenue Code, paid to
28 shareholders for the taxable year;
29 (I) With the exception of any amounts
30 subtracted under subparagraph (J), an amount equal
31 to the sum of all amounts disallowed as deductions
32 by (i) Section Sections 171(a)(2) of the Internal
33 Revenue Code and (ii) for taxable years beginning on
34 or after January 1, 2000, Sections 171(a)(2), 265,
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1 280C, and 832(b)(5)(B)(i),and 265(a)(2) and (iii)
2 amounts disallowed as interest expense by Section
3 291(a)(3) of the Internal Revenue Code, as now or
4 hereafter amended, and all amounts of expenses
5 allocable to interest and disallowed as deductions
6 by Section 265(a)(1) of the Internal Revenue Code,
7 as now or hereafter amended; the provisions of this
8 subparagraph are exempt from the provisions of
9 Section 250;
10 (J) An amount equal to all amounts included in
11 such total which are exempt from taxation by this
12 State either by reason of its statutes or
13 Constitution or by reason of the Constitution,
14 treaties or statutes of the United States; provided
15 that, in the case of any statute of this State that
16 exempts income derived from bonds or other
17 obligations from the tax imposed under this Act, the
18 amount exempted shall be the interest net of bond
19 premium amortization;
20 (K) An amount equal to those dividends
21 included in such total which were paid by a
22 corporation which conducts business operations in an
23 Enterprise Zone or zones created under the Illinois
24 Enterprise Zone Act and conducts substantially all
25 of its operations in an Enterprise Zone or zones;
26 (L) An amount equal to those dividends
27 included in such total that were paid by a
28 corporation that conducts business operations in a
29 federally designated Foreign Trade Zone or Sub-Zone
30 and that is designated a High Impact Business
31 located in Illinois; provided that dividends
32 eligible for the deduction provided in subparagraph
33 (K) of paragraph 2 of this subsection shall not be
34 eligible for the deduction provided under this
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1 subparagraph (L);
2 (M) For any taxpayer that is a financial
3 organization within the meaning of Section 304(c) of
4 this Act, an amount included in such total as
5 interest income from a loan or loans made by such
6 taxpayer to a borrower, to the extent that such a
7 loan is secured by property which is eligible for
8 the Enterprise Zone Investment Credit. To determine
9 the portion of a loan or loans that is secured by
10 property eligible for a Section 201(h) investment
11 credit to the borrower, the entire principal amount
12 of the loan or loans between the taxpayer and the
13 borrower should be divided into the basis of the
14 Section 201(h) investment credit property which
15 secures the loan or loans, using for this purpose
16 the original basis of such property on the date that
17 it was placed in service in the Enterprise Zone.
18 The subtraction modification available to taxpayer
19 in any year under this subsection shall be that
20 portion of the total interest paid by the borrower
21 with respect to such loan attributable to the
22 eligible property as calculated under the previous
23 sentence;
24 (M-1) For any taxpayer that is a financial
25 organization within the meaning of Section 304(c) of
26 this Act, an amount included in such total as
27 interest income from a loan or loans made by such
28 taxpayer to a borrower, to the extent that such a
29 loan is secured by property which is eligible for
30 the High Impact Business Investment Credit. To
31 determine the portion of a loan or loans that is
32 secured by property eligible for a Section 201(i)
33 investment credit to the borrower, the entire
34 principal amount of the loan or loans between the
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1 taxpayer and the borrower should be divided into the
2 basis of the Section 201(i) investment credit
3 property which secures the loan or loans, using for
4 this purpose the original basis of such property on
5 the date that it was placed in service in a
6 federally designated Foreign Trade Zone or Sub-Zone
7 located in Illinois. No taxpayer that is eligible
8 for the deduction provided in subparagraph (M) of
9 paragraph (2) of this subsection shall be eligible
10 for the deduction provided under this subparagraph
11 (M-1). The subtraction modification available to
12 taxpayers in any year under this subsection shall be
13 that portion of the total interest paid by the
14 borrower with respect to such loan attributable to
15 the eligible property as calculated under the
16 previous sentence;
17 (N) Two times any contribution made during the
18 taxable year to a designated zone organization to
19 the extent that the contribution (i) qualifies as a
20 charitable contribution under subsection (c) of
21 Section 170 of the Internal Revenue Code and (ii)
22 must, by its terms, be used for a project approved
23 by the Department of Commerce and Community Affairs
24 under Section 11 of the Illinois Enterprise Zone
25 Act;
26 (O) An amount equal to: (i) 85% for taxable
27 years ending on or before December 31, 1992, or, a
28 percentage equal to the percentage allowable under
29 Section 243(a)(1) of the Internal Revenue Code of
30 1986 for taxable years ending after December 31,
31 1992, of the amount by which dividends included in
32 taxable income and received from a corporation that
33 is not created or organized under the laws of the
34 United States or any state or political subdivision
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1 thereof, including, for taxable years ending on or
2 after December 31, 1988, dividends received or
3 deemed received or paid or deemed paid under
4 Sections 951 through 964 of the Internal Revenue
5 Code, exceed the amount of the modification provided
6 under subparagraph (G) of paragraph (2) of this
7 subsection (b) which is related to such dividends;
8 plus (ii) 100% of the amount by which dividends,
9 included in taxable income and received, including,
10 for taxable years ending on or after December 31,
11 1988, dividends received or deemed received or paid
12 or deemed paid under Sections 951 through 964 of the
13 Internal Revenue Code, from any such corporation
14 specified in clause (i) that would but for the
15 provisions of Section 1504 (b) (3) of the Internal
16 Revenue Code be treated as a member of the
17 affiliated group which includes the dividend
18 recipient, exceed the amount of the modification
19 provided under subparagraph (G) of paragraph (2) of
20 this subsection (b) which is related to such
21 dividends;
22 (P) An amount equal to any contribution made
23 to a job training project established pursuant to
24 the Tax Increment Allocation Redevelopment Act; and
25 (Q) An amount equal to the amount of the
26 deduction used to compute the federal income tax
27 credit for restoration of substantial amounts held
28 under claim of right for the taxable year pursuant
29 to Section 1341 of the Internal Revenue Code of
30 1986.
31 (3) Special rule. For purposes of paragraph (2)
32 (A), "gross income" in the case of a life insurance
33 company, for tax years ending on and after December 31,
34 1994, shall mean the gross investment income for the
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1 taxable year.
2 (c) Trusts and estates.
3 (1) In general. In the case of a trust or estate,
4 base income means an amount equal to the taxpayer's
5 taxable income for the taxable year as modified by
6 paragraph (2).
7 (2) Modifications. Subject to the provisions of
8 paragraph (3), the taxable income referred to in
9 paragraph (1) shall be modified by adding thereto the sum
10 of the following amounts:
11 (A) An amount equal to all amounts paid or
12 accrued to the taxpayer as interest or dividends
13 during the taxable year to the extent excluded from
14 gross income in the computation of taxable income;
15 (B) In the case of (i) an estate, $600; (ii) a
16 trust which, under its governing instrument, is
17 required to distribute all of its income currently,
18 $300; and (iii) any other trust, $100, but in each
19 such case, only to the extent such amount was
20 deducted in the computation of taxable income;
21 (C) An amount equal to the amount of tax
22 imposed by this Act to the extent deducted from
23 gross income in the computation of taxable income
24 for the taxable year;
25 (D) The amount of any net operating loss
26 deduction taken in arriving at taxable income, other
27 than a net operating loss carried forward from a
28 taxable year ending prior to December 31, 1986;
29 (E) For taxable years in which a net operating
30 loss carryback or carryforward from a taxable year
31 ending prior to December 31, 1986 is an element of
32 taxable income under paragraph (1) of subsection (e)
33 or subparagraph (E) of paragraph (2) of subsection
34 (e), the amount by which addition modifications
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1 other than those provided by this subparagraph (E)
2 exceeded subtraction modifications in such taxable
3 year, with the following limitations applied in the
4 order that they are listed:
5 (i) the addition modification relating to
6 the net operating loss carried back or forward
7 to the taxable year from any taxable year
8 ending prior to December 31, 1986 shall be
9 reduced by the amount of addition modification
10 under this subparagraph (E) which related to
11 that net operating loss and which was taken
12 into account in calculating the base income of
13 an earlier taxable year, and
14 (ii) the addition modification relating
15 to the net operating loss carried back or
16 forward to the taxable year from any taxable
17 year ending prior to December 31, 1986 shall
18 not exceed the amount of such carryback or
19 carryforward;
20 For taxable years in which there is a net
21 operating loss carryback or carryforward from more
22 than one other taxable year ending prior to December
23 31, 1986, the addition modification provided in this
24 subparagraph (E) shall be the sum of the amounts
25 computed independently under the preceding
26 provisions of this subparagraph (E) for each such
27 taxable year;
28 (F) For taxable years ending on or after
29 January 1, 1989, an amount equal to the tax deducted
30 pursuant to Section 164 of the Internal Revenue Code
31 if the trust or estate is claiming the same tax for
32 purposes of the Illinois foreign tax credit under
33 Section 601 of this Act;
34 (G) An amount equal to the amount of the
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1 capital gain deduction allowable under the Internal
2 Revenue Code, to the extent deducted from gross
3 income in the computation of taxable income; and
4 (G-5) For taxable years ending after December
5 31, 1997, an amount equal to any eligible
6 remediation costs that the trust or estate deducted
7 in computing adjusted gross income and for which the
8 trust or estate claims a credit under subsection (l)
9 of Section 201;
10 and by deducting from the total so obtained the sum of
11 the following amounts:
12 (H) An amount equal to all amounts included in
13 such total pursuant to the provisions of Sections
14 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and
15 408 of the Internal Revenue Code or included in such
16 total as distributions under the provisions of any
17 retirement or disability plan for employees of any
18 governmental agency or unit, or retirement payments
19 to retired partners, which payments are excluded in
20 computing net earnings from self employment by
21 Section 1402 of the Internal Revenue Code and
22 regulations adopted pursuant thereto;
23 (I) The valuation limitation amount;
24 (J) An amount equal to the amount of any tax
25 imposed by this Act which was refunded to the
26 taxpayer and included in such total for the taxable
27 year;
28 (K) An amount equal to all amounts included in
29 taxable income as modified by subparagraphs (A),
30 (B), (C), (D), (E), (F) and (G) which are exempt
31 from taxation by this State either by reason of its
32 statutes or Constitution or by reason of the
33 Constitution, treaties or statutes of the United
34 States; provided that, in the case of any statute of
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1 this State that exempts income derived from bonds or
2 other obligations from the tax imposed under this
3 Act, the amount exempted shall be the interest net
4 of bond premium amortization;
5 (L) With the exception of any amounts
6 subtracted under subparagraph (K), an amount equal
7 to the sum of all amounts disallowed as deductions
8 by (i) Section Sections 171(a)(2) of the Internal
9 Revenue Code and (ii) for taxable years beginning on
10 or after January 1, 2000, Sections 171 (a) (2), 265,
11 280C, and 832(b)(5)(B)(i) and 265(a)(2) of the
12 Internal Revenue Code, as now or hereafter amended,
13 and all amounts of expenses allocable to interest
14 and disallowed as deductions by Section 265(1) of
15 the Internal Revenue Code of 1954, as now or
16 hereafter amended; the provisions of this
17 subparagraph are exempt from the provisions of
18 Section 250;
19 (M) An amount equal to those dividends
20 included in such total which were paid by a
21 corporation which conducts business operations in an
22 Enterprise Zone or zones created under the Illinois
23 Enterprise Zone Act and conducts substantially all
24 of its operations in an Enterprise Zone or Zones;
25 (N) An amount equal to any contribution made
26 to a job training project established pursuant to
27 the Tax Increment Allocation Redevelopment Act;
28 (O) An amount equal to those dividends
29 included in such total that were paid by a
30 corporation that conducts business operations in a
31 federally designated Foreign Trade Zone or Sub-Zone
32 and that is designated a High Impact Business
33 located in Illinois; provided that dividends
34 eligible for the deduction provided in subparagraph
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1 (M) of paragraph (2) of this subsection shall not be
2 eligible for the deduction provided under this
3 subparagraph (O); and
4 (P) An amount equal to the amount of the
5 deduction used to compute the federal income tax
6 credit for restoration of substantial amounts held
7 under claim of right for the taxable year pursuant
8 to Section 1341 of the Internal Revenue Code of
9 1986.
10 (3) Limitation. The amount of any modification
11 otherwise required under this subsection shall, under
12 regulations prescribed by the Department, be adjusted by
13 any amounts included therein which were properly paid,
14 credited, or required to be distributed, or permanently
15 set aside for charitable purposes pursuant to Internal
16 Revenue Code Section 642(c) during the taxable year.
17 (d) Partnerships.
18 (1) In general. In the case of a partnership, base
19 income means an amount equal to the taxpayer's taxable
20 income for the taxable year as modified by paragraph (2).
21 (2) Modifications. The taxable income referred to
22 in paragraph (1) shall be modified by adding thereto the
23 sum of the following amounts:
24 (A) An amount equal to all amounts paid or
25 accrued to the taxpayer as interest or dividends
26 during the taxable year to the extent excluded from
27 gross income in the computation of taxable income;
28 (B) An amount equal to the amount of tax
29 imposed by this Act to the extent deducted from
30 gross income for the taxable year; and
31 (C) The amount of deductions allowed to the
32 partnership pursuant to Section 707 (c) of the
33 Internal Revenue Code in calculating its taxable
34 income; and
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1 (D) An amount equal to the amount of the
2 capital gain deduction allowable under the Internal
3 Revenue Code, to the extent deducted from gross
4 income in the computation of taxable income;
5 and by deducting from the total so obtained the following
6 amounts:
7 (E) The valuation limitation amount;
8 (F) An amount equal to the amount of any tax
9 imposed by this Act which was refunded to the
10 taxpayer and included in such total for the taxable
11 year;
12 (G) An amount equal to all amounts included in
13 taxable income as modified by subparagraphs (A),
14 (B), (C) and (D) which are exempt from taxation by
15 this State either by reason of its statutes or
16 Constitution or by reason of the Constitution,
17 treaties or statutes of the United States; provided
18 that, in the case of any statute of this State that
19 exempts income derived from bonds or other
20 obligations from the tax imposed under this Act, the
21 amount exempted shall be the interest net of bond
22 premium amortization;
23 (H) Any income of the partnership which
24 constitutes personal service income as defined in
25 Section 1348 (b) (1) of the Internal Revenue Code
26 (as in effect December 31, 1981) or a reasonable
27 allowance for compensation paid or accrued for
28 services rendered by partners to the partnership,
29 whichever is greater;
30 (I) An amount equal to all amounts of income
31 distributable to an entity subject to the Personal
32 Property Tax Replacement Income Tax imposed by
33 subsections (c) and (d) of Section 201 of this Act
34 including amounts distributable to organizations
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1 exempt from federal income tax by reason of Section
2 501(a) of the Internal Revenue Code;
3 (J) With the exception of any amounts
4 subtracted under subparagraph (G), an amount equal
5 to the sum of all amounts disallowed as deductions
6 by (i) Section Sections 171(a)(2) of the Internal
7 Revenue Code and (ii) for taxable years beginning on
8 or after January 1, 2000, Sections 171 (a) (2), 265,
9 280C, and 832(b)(5)(B)(i), and 265(2) of the
10 Internal Revenue Code of 1954, as now or hereafter
11 amended, and all amounts of expenses allocable to
12 interest and disallowed as deductions by Section
13 265(1) of the Internal Revenue Code, as now or
14 hereafter amended; the provisions of this
15 subparagraph are exempt from the provisions of
16 Section 250;
17 (K) An amount equal to those dividends
18 included in such total which were paid by a
19 corporation which conducts business operations in an
20 Enterprise Zone or zones created under the Illinois
21 Enterprise Zone Act, enacted by the 82nd General
22 Assembly, and which does not conduct such operations
23 other than in an Enterprise Zone or Zones;
24 (L) An amount equal to any contribution made
25 to a job training project established pursuant to
26 the Real Property Tax Increment Allocation
27 Redevelopment Act;
28 (M) An amount equal to those dividends
29 included in such total that were paid by a
30 corporation that conducts business operations in a
31 federally designated Foreign Trade Zone or Sub-Zone
32 and that is designated a High Impact Business
33 located in Illinois; provided that dividends
34 eligible for the deduction provided in subparagraph
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1 (K) of paragraph (2) of this subsection shall not be
2 eligible for the deduction provided under this
3 subparagraph (M); and
4 (N) An amount equal to the amount of the
5 deduction used to compute the federal income tax
6 credit for restoration of substantial amounts held
7 under claim of right for the taxable year pursuant
8 to Section 1341 of the Internal Revenue Code of
9 1986.
10 (e) Gross income; adjusted gross income; taxable income.
11 (1) In general. Subject to the provisions of
12 paragraph (2) and subsection (b) (3), for purposes of
13 this Section and Section 803(e), a taxpayer's gross
14 income, adjusted gross income, or taxable income for the
15 taxable year shall mean the amount of gross income,
16 adjusted gross income or taxable income properly
17 reportable for federal income tax purposes for the
18 taxable year under the provisions of the Internal Revenue
19 Code. Taxable income may be less than zero. However, for
20 taxable years ending on or after December 31, 1986, net
21 operating loss carryforwards from taxable years ending
22 prior to December 31, 1986, may not exceed the sum of
23 federal taxable income for the taxable year before net
24 operating loss deduction, plus the excess of addition
25 modifications over subtraction modifications for the
26 taxable year. For taxable years ending prior to December
27 31, 1986, taxable income may never be an amount in excess
28 of the net operating loss for the taxable year as defined
29 in subsections (c) and (d) of Section 172 of the Internal
30 Revenue Code, provided that when taxable income of a
31 corporation (other than a Subchapter S corporation),
32 trust, or estate is less than zero and addition
33 modifications, other than those provided by subparagraph
34 (E) of paragraph (2) of subsection (b) for corporations
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1 or subparagraph (E) of paragraph (2) of subsection (c)
2 for trusts and estates, exceed subtraction modifications,
3 an addition modification must be made under those
4 subparagraphs for any other taxable year to which the
5 taxable income less than zero (net operating loss) is
6 applied under Section 172 of the Internal Revenue Code or
7 under subparagraph (E) of paragraph (2) of this
8 subsection (e) applied in conjunction with Section 172 of
9 the Internal Revenue Code.
10 (2) Special rule. For purposes of paragraph (1) of
11 this subsection, the taxable income properly reportable
12 for federal income tax purposes shall mean:
13 (A) Certain life insurance companies. In the
14 case of a life insurance company subject to the tax
15 imposed by Section 801 of the Internal Revenue Code,
16 life insurance company taxable income, plus the
17 amount of distribution from pre-1984 policyholder
18 surplus accounts as calculated under Section 815a of
19 the Internal Revenue Code;
20 (B) Certain other insurance companies. In the
21 case of mutual insurance companies subject to the
22 tax imposed by Section 831 of the Internal Revenue
23 Code, insurance company taxable income;
24 (C) Regulated investment companies. In the
25 case of a regulated investment company subject to
26 the tax imposed by Section 852 of the Internal
27 Revenue Code, investment company taxable income;
28 (D) Real estate investment trusts. In the
29 case of a real estate investment trust subject to
30 the tax imposed by Section 857 of the Internal
31 Revenue Code, real estate investment trust taxable
32 income;
33 (E) Consolidated corporations. In the case of
34 a corporation which is a member of an affiliated
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1 group of corporations filing a consolidated income
2 tax return for the taxable year for federal income
3 tax purposes, taxable income determined as if such
4 corporation had filed a separate return for federal
5 income tax purposes for the taxable year and each
6 preceding taxable year for which it was a member of
7 an affiliated group. For purposes of this
8 subparagraph, the taxpayer's separate taxable income
9 shall be determined as if the election provided by
10 Section 243(b) (2) of the Internal Revenue Code had
11 been in effect for all such years;
12 (F) Cooperatives. In the case of a
13 cooperative corporation or association, the taxable
14 income of such organization determined in accordance
15 with the provisions of Section 1381 through 1388 of
16 the Internal Revenue Code;
17 (G) Subchapter S corporations. In the case
18 of: (i) a Subchapter S corporation for which there
19 is in effect an election for the taxable year under
20 Section 1362 of the Internal Revenue Code, the
21 taxable income of such corporation determined in
22 accordance with Section 1363(b) of the Internal
23 Revenue Code, except that taxable income shall take
24 into account those items which are required by
25 Section 1363(b)(1) of the Internal Revenue Code to
26 be separately stated; and (ii) a Subchapter S
27 corporation for which there is in effect a federal
28 election to opt out of the provisions of the
29 Subchapter S Revision Act of 1982 and have applied
30 instead the prior federal Subchapter S rules as in
31 effect on July 1, 1982, the taxable income of such
32 corporation determined in accordance with the
33 federal Subchapter S rules as in effect on July 1,
34 1982; and
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1 (H) Partnerships. In the case of a
2 partnership, taxable income determined in accordance
3 with Section 703 of the Internal Revenue Code,
4 except that taxable income shall take into account
5 those items which are required by Section 703(a)(1)
6 to be separately stated but which would be taken
7 into account by an individual in calculating his
8 taxable income.
9 (f) Valuation limitation amount.
10 (1) In general. The valuation limitation amount
11 referred to in subsections (a) (2) (G), (c) (2) (I) and
12 (d)(2) (E) is an amount equal to:
13 (A) The sum of the pre-August 1, 1969
14 appreciation amounts (to the extent consisting of
15 gain reportable under the provisions of Section 1245
16 or 1250 of the Internal Revenue Code) for all
17 property in respect of which such gain was reported
18 for the taxable year; plus
19 (B) The lesser of (i) the sum of the
20 pre-August 1, 1969 appreciation amounts (to the
21 extent consisting of capital gain) for all property
22 in respect of which such gain was reported for
23 federal income tax purposes for the taxable year, or
24 (ii) the net capital gain for the taxable year,
25 reduced in either case by any amount of such gain
26 included in the amount determined under subsection
27 (a) (2) (F) or (c) (2) (H).
28 (2) Pre-August 1, 1969 appreciation amount.
29 (A) If the fair market value of property
30 referred to in paragraph (1) was readily
31 ascertainable on August 1, 1969, the pre-August 1,
32 1969 appreciation amount for such property is the
33 lesser of (i) the excess of such fair market value
34 over the taxpayer's basis (for determining gain) for
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1 such property on that date (determined under the
2 Internal Revenue Code as in effect on that date), or
3 (ii) the total gain realized and reportable for
4 federal income tax purposes in respect of the sale,
5 exchange or other disposition of such property.
6 (B) If the fair market value of property
7 referred to in paragraph (1) was not readily
8 ascertainable on August 1, 1969, the pre-August 1,
9 1969 appreciation amount for such property is that
10 amount which bears the same ratio to the total gain
11 reported in respect of the property for federal
12 income tax purposes for the taxable year, as the
13 number of full calendar months in that part of the
14 taxpayer's holding period for the property ending
15 July 31, 1969 bears to the number of full calendar
16 months in the taxpayer's entire holding period for
17 the property.
18 (C) The Department shall prescribe such
19 regulations as may be necessary to carry out the
20 purposes of this paragraph.
21 (g) Double deductions. Unless specifically provided
22 otherwise, nothing in this Section shall permit the same item
23 to be deducted more than once.
24 (h) Legislative intention. Except as expressly provided
25 by this Section there shall be no modifications or
26 limitations on the amounts of income, gain, loss or deduction
27 taken into account in determining gross income, adjusted
28 gross income or taxable income for federal income tax
29 purposes for the taxable year, or in the amount of such items
30 entering into the computation of base income and net income
31 under this Act for such taxable year, whether in respect of
32 property values as of August 1, 1969 or otherwise.
33 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
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1 89-418, eff. 11-15-95; 89-460, eff. 5-24-96; 89-626, eff.
2 8-9-96; 90-491, eff. 1-1-98; 90-717, eff. 8-7-98; 90-770,
3 eff. 8-14-98; revised 9-21-98.)
4 (35 ILCS 5/207) (from Ch. 120, par. 2-207)
5 Sec. 207. Net Losses.
6 (a) If after applying all of the modifications provided
7 for in paragraph (2) of Section 203(b), paragraph (2) of
8 Section 203(c) and paragraph (2) of Section 203(d) and the
9 allocation and apportionment provisions of Article 3 of this
10 Act, the taxpayer's net income results in a loss;
11 (1) for any taxable year ending prior to December
12 31, 1999 , such loss shall be allowed as a carryover or
13 carryback deduction in the manner allowed under Section
14 172 of the Internal Revenue Code; and
15 (2) for any taxable year ending on or after
16 December 31, 1999, such loss shall be allowed as a
17 carryback to each of the 2 taxable years preceding the
18 taxable year of such loss and shall be a net operating
19 carryover to each of the 20 taxable years following the
20 taxable year of such loss.
21 (A) The taxpayer may elect to relinquish the
22 entire carryback period with respect to such loss.
23 Such election shall be made in the form and manner
24 prescribed by the Department and shall be made by
25 the due date (including extensions of time) for
26 filing the taxpayer's return for the taxable year in
27 which such loss is incurred, and such election, once
28 made, shall be irrevocable.
29 (B) The entire amount of such loss shall be
30 carried to the earliest taxable year to which such
31 loss may be carried. The amount of such loss which
32 shall be carried to each of the other taxable years
33 shall be the excess, if any, of the amount of such
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1 loss over the sum of the deductions for carryback or
2 carryover of such loss allowable for each of the
3 prior taxable years to which such loss may be
4 carried.
5 (b) Any loss determined under subsection (a) of this
6 Section must be carried back or carried forward in the same
7 manner for purposes of subsections (a) and (b) of Section 201
8 of this Act as for purposes of subsections (c) and (d) of
9 Section 201 of this Act.
10 (Source: P.A. 85-731.)
11 (35 ILCS 5/405 new)
12 Sec. 405. Carryovers in certain acquisitions.
13 (a) In the case of the acquisition of assets of a
14 corporation by another corporation described in Section
15 381(a) of the Internal Revenue Code, the acquiring
16 corporation shall succeed to and take into account, as of the
17 close of the day of distribution or transfer, all Article 2
18 credits and net losses under Section 207 of the corporation
19 from which the assets where acquired, without limitation
20 under Section 382 of the Internal Revenue Code or the
21 separate return limitation year regulations promulgated under
22 Section 1502 of the Internal Revenue Code.
23 (b) In the case of the acquisition of assets of a
24 partnership by another partnership in a transaction in which
25 the acquiring partnership is considered to be a continuation
26 of the partnership from which the assets were acquired under
27 the provisions of Section 708 of the Internal Revenue Code
28 and any regulations promulgated under that Section, the
29 acquiring partnership shall succeed to and take into account,
30 as of the close of the day of distribution or transfer, all
31 Article 2 credits and net losses under Section 207 of the
32 partnership from which the assets were acquired.
33 (c) The provisions of this amendatory Act of the 91st
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1 General Assembly shall apply to all acquisitions occurring in
2 taxable years ending on or after December 31, 1986; provided
3 that if a taxpayer's Illinois income tax liability for any
4 taxable year, as assessed under Section 903 prior to January
5 1, 1999, was computed without taking into account all of the
6 Article 2 credits and net losses under Section 207 as allowed
7 by this Section:
8 (1) no refund shall be payable to the taxpayer for
9 that taxable year as the result of allowing any portion
10 of the Article 2 credits or net losses under Section 207
11 that were not taken into account in computing the tax
12 assessed prior to January 1, 1999;
13 (2) any deficiency which has not been paid may be
14 reduced (but not below zero) by the allowance of some or
15 all of the Article 2 credits or net losses under Section
16 207 that were not taken into account in computing the tax
17 assessed prior to January 1, 1999; and
18 (3) in the case of any Article 2 credit or net loss
19 under Section 207 that, pursuant to this subsection (c),
20 could not be taken into account either in computing the
21 tax assessed prior to January 1, 1999 for a taxable year
22 or in reducing a deficiency for that taxable year under
23 paragraph (2) of subsection (c), the allowance of such
24 credit or loss in any other taxable year shall not be
25 denied on the grounds that such credit or loss should
26 properly have been claimed in that taxable year under
27 subsection (a) or (b).
28 (35 ILCS 5/502) (from Ch. 120, par. 5-502)
29 Sec. 502. Returns and notices.
30 (a) In general. A return with respect to the taxes
31 imposed by this Act shall be made by every person for any
32 taxable year:
33 (1) For which such person is liable for a tax
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1 imposed by this Act, or
2 (2) In the case of a resident or in the case of a
3 corporation which is qualified to do business in this
4 State, for which such person is required to make a
5 federal income tax return, regardless of whether such
6 person is liable for a tax imposed by this Act. However,
7 this paragraph shall not require a resident to make a
8 return if such person has an Illinois base income of the
9 basic amount in Section 204(b) or less and is either
10 claimed as a dependent on another person's tax return
11 under the Internal Revenue Code of 1986, or is claimed as
12 a dependent on another person's tax return under this
13 Act.
14 (b) Fiduciaries and receivers.
15 (1) Decedents. If an individual is deceased, any
16 return or notice required of such individual under this
17 Act shall be made by his executor, administrator, or
18 other person charged with the property of such decedent.
19 (2) Individuals under a disability. If an
20 individual is unable to make a return or notice required
21 under this Act, the return or notice required of such
22 individual shall be made by his duly authorized agent,
23 guardian, fiduciary or other person charged with the care
24 of the person or property of such individual.
25 (3) Estates and trusts. Returns or notices required
26 of an estate or a trust shall be made by the fiduciary
27 thereof.
28 (4) Receivers, trustees and assignees for
29 corporations. In a case where a receiver, trustee in
30 bankruptcy, or assignee, by order of a court of competent
31 jurisdiction, by operation of law, or otherwise, has
32 possession of or holds title to all or substantially all
33 the property or business of a corporation, whether or not
34 such property or business is being operated, such
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1 receiver, trustee, or assignee shall make the returns and
2 notices required of such corporation in the same manner
3 and form as corporations are required to make such
4 returns and notices.
5 (c) Joint returns by husband and wife.
6 (1) Except as provided in paragraph (3), if a
7 husband and wife file a joint federal income tax return
8 for a taxable year they shall file a joint return under
9 this Act for such taxable year and their liabilities
10 shall be joint and several, but if the federal income tax
11 liability of either spouse is determined on a separate
12 federal income tax return, they shall file separate
13 returns under this Act.
14 (2) If neither spouse is required to file a federal
15 income tax return and either or both are required to file
16 a return under this Act, they may elect to file separate
17 or joint returns and pursuant to such election their
18 liabilities shall be separate or joint and several.
19 (3) If either husband or wife is a resident and the
20 other is a nonresident, they shall file separate returns
21 in this State on such forms as may be required by the
22 Department in which event their tax liabilities shall be
23 separate; but they may elect to determine their joint net
24 income and file a joint return as if both were residents
25 and in such case, their liabilities shall be joint and
26 several.
27 (4) Innocent spouses.
28 (A) However, for tax liabilities arising and
29 paid prior to the effective date of this amendatory
30 Act of the 91st General Assembly, an innocent spouse
31 shall be relieved of liability for tax (including
32 interest and penalties) for any taxable year for
33 which a joint return has been made, upon submission
34 of proof that the Internal Revenue Service has made
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1 a determination under Section 6013(e) of the
2 Internal Revenue Code, for the same taxable year,
3 which determination relieved the spouse from
4 liability for federal income taxes. If there is no
5 federal income tax liability at issue for the same
6 taxable year, the Department shall rely on the
7 provisions of Section 6013(e) to determine whether
8 the person requesting innocent spouse abatement of
9 tax, penalty, and interest is entitled to that
10 relief.
11 (B) For tax liabilities arising after the
12 effective date of this amendatory Act of the 91st
13 General Assembly or which arose prior to that
14 effective date, but remain unpaid as of the
15 effective date, if an individual who filed a joint
16 return for any taxable year has made an election
17 under this paragraph, the individual's liability for
18 any tax shown on the joint return shall not exceed
19 the individual's separate return amount and the
20 individual's liability for any deficiency assessed
21 for that taxable year shall not exceed the portion
22 of the deficiency properly allocable to the
23 individual. For purposes of this paragraph:
24 (i) An election properly made pursuant to
25 Section 6015 of the Internal Revenue Code shall
26 constitute an election under this paragraph,
27 provided that the election shall not be
28 effective until the individual has notified the
29 Department of the election in the form and
30 manner prescribed by the Department.
31 (ii) If no election has been made under
32 Section 6015, the individual may make an
33 election under this paragraph in the form and
34 manner prescribed by the Department, provided
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1 that no election may be made if the Department
2 finds that assets were transferred between
3 individuals filing a joint return as part of a
4 scheme by such individuals to avoid payment of
5 Illinois income tax and the election shall not
6 eliminate the individual's liability for any
7 portion of a deficiency attributable to an
8 error on the return of which the individual had
9 actual knowledge as of the date of filing.
10 (iii) In determining the separate return
11 amount or portion of any deficiency
12 attributable to an individual, the Department
13 shall follow the provisions in Section 6015(b)
14 and (c) of the Internal Revenue Code.
15 (iv) In determining the validity of an
16 individual's election under subparagraph (ii)
17 and in determining an electing individual's
18 separate return amount or portion of any
19 deficiency under subparagraph (iii), any
20 determination made by the Secretary of the
21 Treasury under Section 6015(a) of the Internal
22 Revenue Code regarding criteria for eligibility
23 or under Section 6015(b) or (c) of the Internal
24 Revenue Code regarding the allocation of any
25 item of income, deduction, payment, or credit
26 between an individual making the federal
27 election and that individual's spouse shall be
28 conclusively presumed to be correct. With
29 respect to any item that is not the subject of
30 a determination by the Secretary of the
31 Treasury, in any proceeding involving this
32 subsection, the individual making the election
33 shall have the burden of proof with respect to
34 any item except that the Department shall have
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1 the burden of proof with respect to items in
2 subdivision (ii).
3 (v) Any election made by an individual
4 under this subsection shall apply to all years
5 for which that individual and the spouse named
6 in the election have filed a joint return.
7 (vi) After receiving a notice that the
8 federal election has been made or after
9 receiving an election under subdivision (ii),
10 the Department shall take no collection action
11 against the electing individual for any
12 liability arising from a joint return covered
13 by the election until the Department has
14 notified the electing individual in writing
15 that the election is invalid or of the portion
16 of the liability the Department has allocated
17 to the electing individual. Within 60 days
18 (150 days if the individual is outside the
19 United States) after the issuance of such
20 notification, the individual may file a written
21 protest of the denial of the election or of the
22 Department's determination of the liability
23 allocated to him or her and shall be granted a
24 hearing within the Department under the
25 provisions of Section 908. If a protest is
26 filed, the Department shall take no collection
27 action against the electing individual until
28 the decision regarding the protest has become
29 final under subsection (d) of Section 908 or,
30 if administrative review of the Department's
31 decision is requested under Section 1201, until
32 the decision of the court becomes final.
33 (d) Partnerships. Every partnership having any base
34 income allocable to this State in accordance with section
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1 305(c) shall retain information concerning all items of
2 income, gain, loss and deduction; the names and addresses of
3 all of the partners, or names and addresses of members of a
4 limited liability company, or other persons who would be
5 entitled to share in the base income of the partnership if
6 distributed; the amount of the distributive share of each;
7 and such other pertinent information as the Department may by
8 forms or regulations prescribe. The partnership shall make
9 that information available to the Department when requested
10 by the Department.
11 (e) For taxable years ending on or after December 31,
12 1985, and before December 31, 1993, taxpayers that are
13 corporations (other than Subchapter S corporations) having
14 the same taxable year and that are members of the same
15 unitary business group may elect to be treated as one
16 taxpayer for purposes of any original return, amended return
17 which includes the same taxpayers of the unitary group which
18 joined in the election to file the original return,
19 extension, claim for refund, assessment, collection and
20 payment and determination of the group's tax liability under
21 this Act. This subsection (e) does not permit the election to
22 be made for some, but not all, of the purposes enumerated
23 above. For taxable years ending on or after December 31,
24 1987, corporate members (other than Subchapter S
25 corporations) of the same unitary business group making this
26 subsection (e) election are not required to have the same
27 taxable year.
28 For taxable years ending on or after December 31, 1993,
29 taxpayers that are corporations (other than Subchapter S
30 corporations) and that are members of the same unitary
31 business group shall be treated as one taxpayer for purposes
32 of any original return, amended return which includes the
33 same taxpayers of the unitary group which joined in filing
34 the original return, extension, claim for refund, assessment,
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1 collection and payment and determination of the group's tax
2 liability under this Act.
3 (f) The Department may promulgate regulations to permit
4 nonresident individual partners of the same partnership,
5 nonresident Subchapter S corporation shareholders of the same
6 Subchapter S corporation, and nonresident individuals
7 transacting an insurance business in Illinois under a Lloyds
8 plan of operation, and nonresident individual members of the
9 same limited liability company that is treated as a
10 partnership under Section 1501 (a)(16) of this Act, to file
11 composite individual income tax returns reflecting the
12 composite income of such individuals allocable to Illinois
13 and to make composite individual income tax payments. The
14 Department may by regulation also permit such composite
15 returns to include the income tax owed by Illinois residents
16 attributable to their income from partnerships, Subchapter S
17 corporations, insurance businesses organized under a Lloyds
18 plan of operation, or limited liability companies that are
19 treated as partnership under Section 1501 (a)(16) of this
20 Act, in which case such Illinois residents will be permitted
21 to claim credits on their individual returns for their shares
22 of the composite tax payments. This subsection (f) applies
23 to taxable years ending on or after December 31, 1987.
24 (g) The Department may adopt rules to authorize the
25 electronic filing of any return required to be filed under
26 this Section.
27 (Source: P.A. 90-613, eff. 7-9-98.)
28 (35 ILCS 5/601.1) (Ch. 120, par. 6-601.1)
29 Sec. 601.1. (a) Beginning on October 1, 1993, a taxpayer
30 who has an average monthly tax liability of $150,000 or more
31 under Article 7 of this Act shall make all payments required
32 by rules of the Department by electronic funds transfer.
33 Beginning October 1, 1993, a taxpayer who has an average
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1 quarterly estimated tax payment obligation of $450,000 or
2 more under Article 8 of this Act shall make all payments
3 required by rules of the Department by electronic funds
4 transfer. Beginning on October 1, 1994, a taxpayer who has
5 an average monthly tax liability of $100,000 or more under
6 Article 7 of this Act shall make all payments required by
7 rules of the Department by electronic funds transfer.
8 Beginning October 1, 1994, a taxpayer who has an average
9 quarterly estimated tax payment obligation of $300,000 or
10 more under Article 8 of this Act shall make all payments
11 required by rules of the Department by electronic funds
12 transfer. Beginning on October 1, 1995, a taxpayer who has
13 an average monthly tax liability of $50,000 or more under
14 Article 7 of this Act shall make all payments required by
15 rules of the Department by electronic funds transfer.
16 Beginning October 1, 1995, a taxpayer who has an average
17 quarterly estimated tax payment obligation of $150,000 or
18 more under Article 8 of this Act shall make all payments
19 required by rules of the Department by electronic funds
20 transfer. Beginning on October 1, 2000, and for all liability
21 periods thereafter, a taxpayer who has an average annual tax
22 liability of $50,000 or more under Article 7 of this Act
23 shall make all payments required by rules of the Department
24 by electronic funds transfer. Beginning October 1, 2000, a
25 taxpayer who has an average quarterly estimated tax payment
26 obligation of $12,500 or more under Article 8 of this Act
27 shall make all payments required by rules of the Department
28 by electronic funds transfer.
29 (b) Any taxpayer who is not required to make payments by
30 electronic funds transfer may make payments by electronic
31 funds transfer with the permission of the Department.
32 (c) All taxpayers required to make payments by
33 electronic funds transfer and any taxpayers who wish to
34 voluntarily make payments by electronic funds transfer shall
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1 make those payments in the manner authorized by the
2 Department.
3 (d) The Department shall notify all taxpayers required
4 to make payments by electronic funds transfer. All
5 taxpayers notified by the Department shall make payments by
6 electronic funds transfer for a minimum of one year beginning
7 on October 1. In determining the threshold amounts under
8 subsection (a), the Department shall calculate the averages
9 as follows:
10 (1) the total liability under Article 7 for the
11 preceding tax year (and, prior to October 1, 2000,
12 divided by 12); or
13 (2) for purposes of estimated payments under
14 Article 8, the total tax obligation of the taxpayer for
15 the previous tax year divided by 4.
16 (e) The Department shall adopt such rules as are
17 necessary to effectuate a program of electronic funds
18 transfer and the requirements of this Section.
19 (Source: P.A. 87-1132; 87-1246.)
20 (35 ILCS 5/905) (from Ch. 120, par. 9-905)
21 Sec. 905. Limitations on Notices of Deficiency.
22 (a) In general. Except as otherwise provided in this
23 Act:
24 (1) A notice of deficiency shall be issued not
25 later than 3 years after the date the return was filed,
26 and
27 (2) No deficiency shall be assessed or collected
28 with respect to the year for which the return was filed
29 unless such notice is issued within such period.
30 (b) Omission of more than 25% of income. If the taxpayer
31 omits from base income an amount properly includible therein
32 which is in excess of 25% of the amount of base income stated
33 in the return, a notice of deficiency may be issued not later
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1 than 6 years after the return was filed. For purposes of this
2 paragraph, there shall not be taken into account any amount
3 which is omitted in the return if such amount is disclosed in
4 the return, or in a statement attached to the return, in a
5 manner adequate to apprise the Department of the nature and
6 the amount of such item.
7 (c) No return or fraudulent return. If no return is
8 filed or a false and fraudulent return is filed with intent
9 to evade the tax imposed by this Act, a notice of deficiency
10 may be issued at any time.
11 (d) Failure to report federal change. If a taxpayer
12 fails to notify the Department in any case where notification
13 is required by Section 304(c) or 506(b), or fails to report a
14 change or correction which is treated in the same manner as
15 if it were a deficiency for federal income tax purposes, a
16 notice of deficiency may be issued (i) at any time or (ii) on
17 or after the effective date of this amendatory Act of the
18 91st General Assembly, at any time for the taxable year for
19 which the notification is required or for any taxable year to
20 which the taxpayer may carry an Article 2 credit, or a
21 Section 207 loss, earned, incurred, or used in the year for
22 which the notification is required; provided, however, that
23 the amount of any proposed assessment set forth in the notice
24 shall be limited to the amount of any deficiency resulting
25 under this Act from the recomputation of the taxpayer's net
26 income, Article 2 credits, or Section 207 loss earned,
27 incurred, or used in the taxable year for which the
28 notification is required after giving effect to the item or
29 items required to be reported.
30 (e) Report of federal change.
31 (1) Before the effective date of this amendatory
32 Act of the 91st General Assembly, in any case where
33 notification of an alteration is given as required by
34 Section 506(b), a notice of deficiency may be issued at
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1 any time within 2 years after the date such notification
2 is given, provided, however, that the amount of any
3 proposed assessment set forth in such notice shall be
4 limited to the amount of any deficiency resulting under
5 this Act from recomputation of the taxpayer's net income,
6 net loss, or Article 2 credits for the taxable year after
7 giving effect to the item or items reflected in the
8 reported alteration.
9 (2) On and after the effective date of this
10 amendatory Act of the 91st General Assembly, in any case
11 where notification of an alteration is given as required
12 by Section 506(b), a notice of deficiency may be issued
13 at any time within 2 years after the date such
14 notification is given for the taxable year for which the
15 notification is given or for any taxable year to which
16 the taxpayer may carry an Article 2 credit, or a Section
17 207 loss, earned, incurred, or used in the year for which
18 the notification is given, provided, however, that the
19 amount of any proposed assessment set forth in such
20 notice shall be limited to the amount of any deficiency
21 resulting under this Act from recomputation of the
22 taxpayer's net income, Article 2 credits, or Section 207
23 loss earned, incurred, or used in the taxable year for
24 which the notification is given after giving effect to
25 the item or items reflected in the reported alteration.
26 (f) Extension by agreement. Where, before the expiration
27 of the time prescribed in this section for the issuance of a
28 notice of deficiency, both the Department and the taxpayer
29 shall have consented in writing to its issuance after such
30 time, such notice may be issued at any time prior to the
31 expiration of the period agreed upon. The period so agreed
32 upon may be extended by subsequent agreements in writing made
33 before the expiration of the period previously agreed upon.
34 (g) Erroneous refunds. In any case in which there has
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1 been an erroneous refund of tax payable under this Act, a
2 notice of deficiency may be issued at any time within 2 years
3 from the making of such refund, or within 5 years from the
4 making of such refund if it appears that any part of the
5 refund was induced by fraud or the misrepresentation of a
6 material fact, provided, however, that the amount of any
7 proposed assessment set forth in such notice shall be limited
8 to the amount of such erroneous refund.
9 Beginning July 1, 1993, in any case in which there has
10 been a refund of tax payable under this Act attributable to a
11 net loss carryback as provided for in Section 207, and that
12 refund is subsequently determined to be an erroneous refund
13 due to a reduction in the amount of the net loss which was
14 originally carried back, a notice of deficiency for the
15 erroneous refund amount may be issued at any time during the
16 same time period in which a notice of deficiency can be
17 issued on the loss year creating the carryback amount and
18 subsequent erroneous refund. The amount of any proposed
19 assessment set forth in the notice shall be limited to the
20 amount of such erroneous refund.
21 (h) Time return deemed filed. For purposes of this
22 Section a tax return filed before the last day prescribed by
23 law (including any extension thereof) shall be deemed to have
24 been filed on such last day.
25 (i) Request for prompt determination of liability. For
26 purposes of Subsection (a)(1), in the case of a tax return
27 required under this Act in respect of a decedent, or by his
28 estate during the period of administration, or by a
29 corporation, the period referred to in such Subsection shall
30 be 18 months after a written request for prompt determination
31 of liability is filed with the Department (at such time and
32 in such form and manner as the Department shall by
33 regulations prescribe) by the executor, administrator, or
34 other fiduciary representing the estate of such decedent, or
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1 by such corporation, but not more than 3 years after the date
2 the return was filed. This Subsection shall not apply in the
3 case of a corporation unless:
4 (1) (A) Such written request notifies the
5 Department that the corporation contemplates dissolution
6 at or before the expiration of such 18-month period, (B)
7 the dissolution is begun in good faith before the
8 expiration of such 18-month period, and (C) the
9 dissolution is completed;
10 (2) (A) Such written request notifies the
11 Department that a dissolution has in good faith been
12 begun, and (B) the dissolution is completed; or
13 (3) A dissolution has been completed at the time
14 such written request is made.
15 (j) Withholding tax. In the case of returns required
16 under Article 7 of this Act (with respect to any amounts
17 withheld as tax or any amounts required to have been withheld
18 as tax) a notice of deficiency shall be issued not later than
19 3 years after the 15th day of the 4th month following the
20 close of the calendar year in which such withholding was
21 required.
22 (k) Penalties for failure to make information reports.
23 A notice of deficiency for the penalties provided by
24 Subsection 1405.1(c) of this Act may not be issued more than
25 3 years after the due date of the reports with respect to
26 which the penalties are asserted.
27 (l) Penalty for failure to file withholding returns. A
28 notice of deficiency for penalties provided by Section 1004
29 of this Act for taxpayer's failure to file withholding
30 returns may not be issued more than three years after the
31 15th day of the 4th month following the close of the calendar
32 year in which the withholding giving rise to taxpayer's
33 obligation to file those returns occurred.
34 (m) Transferee liability. A notice of deficiency may be
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1 issued to a transferee relative to a liability asserted under
2 Section 1405 during time periods defined as follows:
3 1) Initial Transferee. In the case of the
4 liability of an initial transferee, up to 2 years after
5 the expiration of the period of limitation for assessment
6 against the transferor, except that if a court proceeding
7 for review of the assessment against the transferor has
8 begun, then up to 2 years after the return of the
9 certified copy of the judgment in the court proceeding.
10 2) Transferee of Transferee. In the case of the
11 liability of a transferee, up to 2 years after the
12 expiration of the period of limitation for assessment
13 against the preceding transferee, but not more than 3
14 years after the expiration of the period of limitation
15 for assessment against the initial transferor; except
16 that if, before the expiration of the period of
17 limitation for the assessment of the liability of the
18 transferee, a court proceeding for the collection of the
19 tax or liability in respect thereof has been begun
20 against the initial transferor or the last preceding
21 transferee, as the case may be, then the period of
22 limitation for assessment of the liability of the
23 transferee shall expire 2 years after the return of the
24 certified copy of the judgment in the court proceeding.
25 (Source: P.A. 90-491, eff. 1-1-98.)
26 (35 ILCS 5/911) (from Ch. 120, par. 9-911)
27 Sec. 911. Limitations on Claims for Refund.
28 (a) In general. Except as otherwise provided in this
29 Act:
30 (1) A claim for refund shall be filed not later
31 than 3 years after the date the return was filed (in the
32 case of returns required under Article 7 of this Act
33 respecting any amounts withheld as tax, not later than 3
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1 years after the 15th day of the 4th month following the
2 close of the calendar year in which such withholding was
3 made), or one year after the date the tax was paid,
4 whichever is the later; and
5 (2) No credit or refund shall be allowed or made
6 with respect to the year for which the claim was filed
7 unless such claim is filed within such period.
8 (b) Federal changes.
9 (1) In general. In any case where notification of
10 an alteration is required by Section 506 (b), a claim for
11 refund may be filed within 2 years after the date on
12 which such notification was due (regardless of whether
13 such notice was given), but the amount recoverable
14 pursuant to a claim filed under this Section shall be
15 limited to the amount of any overpayment resulting under
16 this Act from recomputation of the taxpayer's net income,
17 net loss, or Article 2 credits for the taxable year after
18 giving effect to the item or items reflected in the
19 alteration required to be reported.
20 (2) Tentative carryback adjustments paid before
21 January 1, 1974. If, as the result of the payment before
22 January 1, 1974 of a federal tentative carryback
23 adjustment, a notification of an alteration is required
24 under Section 506 (b), a claim for refund may be filed at
25 any time before January 1, 1976, but the amount
26 recoverable pursuant to a claim filed under this Section
27 shall be limited to the amount of any overpayment
28 resulting under this Act from recomputation of the
29 taxpayer's base income for the taxable year after giving
30 effect to the federal alteration resulting from the
31 tentative carryback adjustment irrespective of any
32 limitation imposed in paragraph (l) of this subsection.
33 (c) Extension by agreement. Where, before the
34 expiration of the time prescribed in this section for the
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1 filing of a claim for refund, both the Department and the
2 claimant shall have consented in writing to its filing after
3 such time, such claim may be filed at any time prior to the
4 expiration of the period agreed upon. The period so agreed
5 upon may be extended by subsequent agreements in writing made
6 before the expiration of the period previously agreed upon.
7 (d) Limit on amount of credit or refund.
8 (1) Limit where claim filed within 3-year period.
9 If the claim was filed by the claimant during the 3-year
10 period prescribed in subsection (a), the amount of the
11 credit or refund shall not exceed the portion of the tax
12 paid within the period, immediately preceding the filing
13 of the claim, equal to 3 years plus the period of any
14 extension of time for filing the return.
15 (2) Limit where claim not filed within 3-year
16 period. If the claim was not filed within such 3-year
17 period, the amount of the credit or refund shall not
18 exceed the portion of the tax paid during the one year
19 immediately preceding the filing of the claim.
20 (e) Time return deemed filed. For purposes of this
21 section a tax return filed before the last day prescribed by
22 law for the filing of such return (including any extensions
23 thereof) shall be deemed to have been filed on such last day.
24 (f) No claim for refund based on the taxpayer's taking a
25 credit for estimated tax payments as provided by Section 601
26 (b) (2) or for any amount paid by a taxpayer pursuant to
27 Section 602(a) or for any amount of credit for tax withheld
28 pursuant to Section 701 may be filed more than 3 years after
29 the due date, as provided by Section 505, of the return which
30 was required to be filed relative to the taxable year for
31 which the payments were made or for which the tax was
32 withheld. The changes in this subsection (f) made by this
33 amendatory Act of 1987 shall apply to all taxable years
34 ending on or after December 31, 1969.
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1 (g) Special Period of Limitation with Respect to Net
2 Loss Carrybacks. If the claim for refund relates to an
3 overpayment attributable to a net loss carryback as provided
4 by Section 207, in lieu of the 3 year period of limitation
5 prescribed in subsection (a), the period shall be that period
6 which ends 3 years after the time prescribed by law for
7 filing the return (including extensions thereof) for the
8 taxable year of the net loss which results in such carryback
9 (or, on and after the effective date of this amendatory Act
10 of the 91st General Assembly, with respect to a change in the
11 carryover of an Article 2 credit to a taxable year resulting
12 from the carryback of a Section 207 loss incurred in a
13 taxable year beginning on or after January 1, 2000, the
14 period shall be that period that ends 3 years after the time
15 prescribed by law for filing the return (including extensions
16 of that time) for that subsequent taxable year), or the
17 period prescribed in subsection (c) in respect of such
18 taxable year, whichever expires later. In the case of such a
19 claim, the amount of the refund may exceed the portion of the
20 tax paid within the period provided in subsection (d) to the
21 extent of the amount of the overpayment attributable to such
22 carryback. On and after the effective date of this amendatory
23 Act of the 91st General Assembly, if the claim for refund
24 relates to an overpayment attributable to the carryover of an
25 Article 2 credit, or of a Section 207 loss, earned, incurred
26 (in a taxable year beginning on or after January 1, 2000), or
27 used in a year for which a notification of a change affecting
28 federal taxable income must be filed under subsection (b) of
29 Section 506, the claim may be filed within the period
30 prescribed in paragraph (1) of subsection (b) in respect of
31 the year for which the notification is required. In the case
32 of such a claim, the amount of the refund may exceed the
33 portion of the tax paid within the period provided in
34 subsection (d) to the extent of the amount of the overpayment
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1 attributable to the recomputation of the taxpayer's Article 2
2 credits, or Section 207 loss, earned, incurred, or used in
3 the taxable year for which the notification is given.
4 (Source: P.A. 90-491, eff. 1-1-98.)
5 Section 10. The Use Tax Act is amended by changing
6 Sections 9 and 10 as follows:
7 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
8 Sec. 9. Except as to motor vehicles, watercraft,
9 aircraft, and trailers that are required to be registered
10 with an agency of this State, each retailer required or
11 authorized to collect the tax imposed by this Act shall pay
12 to the Department the amount of such tax (except as otherwise
13 provided) at the time when he is required to file his return
14 for the period during which such tax was collected, less a
15 discount of 2.1% prior to January 1, 1990, and 1.75% on and
16 after January 1, 1990, or $5 per calendar year, whichever is
17 greater, which is allowed to reimburse the retailer for
18 expenses incurred in collecting the tax, keeping records,
19 preparing and filing returns, remitting the tax and supplying
20 data to the Department on request. In the case of retailers
21 who report and pay the tax on a transaction by transaction
22 basis, as provided in this Section, such discount shall be
23 taken with each such tax remittance instead of when such
24 retailer files his periodic return. A retailer need not
25 remit that part of any tax collected by him to the extent
26 that he is required to remit and does remit the tax imposed
27 by the Retailers' Occupation Tax Act, with respect to the
28 sale of the same property.
29 Where such tangible personal property is sold under a
30 conditional sales contract, or under any other form of sale
31 wherein the payment of the principal sum, or a part thereof,
32 is extended beyond the close of the period for which the
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1 return is filed, the retailer, in collecting the tax (except
2 as to motor vehicles, watercraft, aircraft, and trailers that
3 are required to be registered with an agency of this State),
4 may collect for each tax return period, only the tax
5 applicable to that part of the selling price actually
6 received during such tax return period.
7 Except as provided in this Section, on or before the
8 twentieth day of each calendar month, such retailer shall
9 file a return for the preceding calendar month. Such return
10 shall be filed on forms prescribed by the Department and
11 shall furnish such information as the Department may
12 reasonably require.
13 The Department may require returns to be filed on a
14 quarterly basis. If so required, a return for each calendar
15 quarter shall be filed on or before the twentieth day of the
16 calendar month following the end of such calendar quarter.
17 The taxpayer shall also file a return with the Department for
18 each of the first two months of each calendar quarter, on or
19 before the twentieth day of the following calendar month,
20 stating:
21 1. The name of the seller;
22 2. The address of the principal place of business
23 from which he engages in the business of selling tangible
24 personal property at retail in this State;
25 3. The total amount of taxable receipts received by
26 him during the preceding calendar month from sales of
27 tangible personal property by him during such preceding
28 calendar month, including receipts from charge and time
29 sales, but less all deductions allowed by law;
30 4. The amount of credit provided in Section 2d of
31 this Act;
32 5. The amount of tax due;
33 5-5. The signature of the taxpayer; and
34 6. Such other reasonable information as the
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1 Department may require.
2 If a taxpayer fails to sign a return within 30 days after
3 the proper notice and demand for signature by the Department,
4 the return shall be considered valid and any amount shown to
5 be due on the return shall be deemed assessed.
6 Beginning October 1, 1993, a taxpayer who has an average
7 monthly tax liability of $150,000 or more shall make all
8 payments required by rules of the Department by electronic
9 funds transfer. Beginning October 1, 1994, a taxpayer who has
10 an average monthly tax liability of $100,000 or more shall
11 make all payments required by rules of the Department by
12 electronic funds transfer. Beginning October 1, 1995, a
13 taxpayer who has an average monthly tax liability of $50,000
14 or more shall make all payments required by rules of the
15 Department by electronic funds transfer. Beginning October 1,
16 2000, a taxpayer who has an annual tax liability of $50,000
17 or more shall make all payments required by rules of the
18 Department by electronic funds transfer. The term "annual
19 tax liability" shall be the sum of the taxpayer's liabilities
20 under this Act, and under all other State and local
21 occupation and use tax laws administered by the Department,
22 for the immediately preceding calendar year. The term
23 "average monthly tax liability" means the sum of the
24 taxpayer's liabilities under this Act, and under all other
25 State and local occupation and use tax laws administered by
26 the Department, for the immediately preceding calendar year
27 divided by 12.
28 Before August 1 of each year beginning in 1993, the
29 Department shall notify all taxpayers required to make
30 payments by electronic funds transfer. All taxpayers required
31 to make payments by electronic funds transfer shall make
32 those payments for a minimum of one year beginning on October
33 1.
34 Any taxpayer not required to make payments by electronic
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1 funds transfer may make payments by electronic funds transfer
2 with the permission of the Department.
3 All taxpayers required to make payment by electronic
4 funds transfer and any taxpayers authorized to voluntarily
5 make payments by electronic funds transfer shall make those
6 payments in the manner authorized by the Department.
7 The Department shall adopt such rules as are necessary to
8 effectuate a program of electronic funds transfer and the
9 requirements of this Section.
10 Before October 1, 2000, if the taxpayer's average monthly
11 tax liability to the Department under this Act, the
12 Retailers' Occupation Tax Act, the Service Occupation Tax
13 Act, the Service Use Tax Act was $10,000 or more during the
14 preceding 4 complete calendar quarters, he shall file a
15 return with the Department each month by the 20th day of the
16 month next following the month during which such tax
17 liability is incurred and shall make payments to the
18 Department on or before the 7th, 15th, 22nd and last day of
19 the month during which such liability is incurred. On and
20 after October 1, 2000, if the taxpayer's average monthly tax
21 liability to the Department under this Act, the Retailers'
22 Occupation Tax Act, the Service Occupation Tax Act, and the
23 Service Use Tax Act was $25,000 or more during the preceding
24 4 complete calendar quarters, he shall file a return with the
25 Department each month by the 20th day of the month next
26 following the month during which such tax liability is
27 incurred and shall make payment to the Department on or
28 before the 7th, 15th, 22nd and last day or the month during
29 which such liability is incurred. If the month during which
30 such tax liability is incurred began prior to January 1,
31 1985, each payment shall be in an amount equal to 1/4 of the
32 taxpayer's actual liability for the month or an amount set by
33 the Department not to exceed 1/4 of the average monthly
34 liability of the taxpayer to the Department for the preceding
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1 4 complete calendar quarters (excluding the month of highest
2 liability and the month of lowest liability in such 4 quarter
3 period). If the month during which such tax liability is
4 incurred begins on or after January 1, 1985, and prior to
5 January 1, 1987, each payment shall be in an amount equal to
6 22.5% of the taxpayer's actual liability for the month or
7 27.5% of the taxpayer's liability for the same calendar month
8 of the preceding year. If the month during which such tax
9 liability is incurred begins on or after January 1, 1987, and
10 prior to January 1, 1988, each payment shall be in an amount
11 equal to 22.5% of the taxpayer's actual liability for the
12 month or 26.25% of the taxpayer's liability for the same
13 calendar month of the preceding year. If the month during
14 which such tax liability is incurred begins on or after
15 January 1, 1988, and prior to January 1, 1989, or begins on
16 or after January 1, 1996, each payment shall be in an amount
17 equal to 22.5% of the taxpayer's actual liability for the
18 month or 25% of the taxpayer's liability for the same
19 calendar month of the preceding year. If the month during
20 which such tax liability is incurred begins on or after
21 January 1, 1989, and prior to January 1, 1996, each payment
22 shall be in an amount equal to 22.5% of the taxpayer's actual
23 liability for the month or 25% of the taxpayer's liability
24 for the same calendar month of the preceding year or 100% of
25 the taxpayer's actual liability for the quarter monthly
26 reporting period. The amount of such quarter monthly
27 payments shall be credited against the final tax liability of
28 the taxpayer's return for that month. Before October 1,
29 2000, once applicable, the requirement of the making of
30 quarter monthly payments to the Department shall continue
31 until such taxpayer's average monthly liability to the
32 Department during the preceding 4 complete calendar quarters
33 (excluding the month of highest liability and the month of
34 lowest liability) is less than $9,000, or until such
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1 taxpayer's average monthly liability to the Department as
2 computed for each calendar quarter of the 4 preceding
3 complete calendar quarter period is less than $10,000.
4 However, if a taxpayer can show the Department that a
5 substantial change in the taxpayer's business has occurred
6 which causes the taxpayer to anticipate that his average
7 monthly tax liability for the reasonably foreseeable future
8 will fall below the $10,000 threshold stated above, then such
9 taxpayer may petition the Department for change in such
10 taxpayer's reporting status. On and after October 1, 2000,
11 once applicable, the requirement of the making of quarter
12 monthly payments to the Department shall continue until such
13 taxpayer's average monthly liability to the Department during
14 the preceding 4 complete calendar quarters (excluding the
15 month of highest liability and the month of lowest liability)
16 is less than $24,000 or until such taxpayer's average monthly
17 liability to the Department as computed for each calendar
18 quarter of the 4 preceding complete calendar quarter period
19 is less than $25,000. However, if a taxpayer can show the
20 Department that a substantial change in the taxpayer's
21 business has occurred which causes the taxpayer to anticipate
22 that his average monthly tax liability for the reasonably
23 foreseeable future will fall below the $25,000 threshold
24 stated above, then such taxpayer may petition the Department
25 for a change in such taxpayer's reporting status. The
26 Department shall change such taxpayer's reporting status
27 unless it finds that such change is seasonal in nature and
28 not likely to be long term. If any such quarter monthly
29 payment is not paid at the time or in the amount required by
30 this Section, then the taxpayer shall be liable for penalties
31 and interest on the difference between the minimum amount due
32 and the amount of such quarter monthly payment actually and
33 timely paid, except insofar as the taxpayer has previously
34 made payments for that month to the Department in excess of
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1 the minimum payments previously due as provided in this
2 Section. The Department shall make reasonable rules and
3 regulations to govern the quarter monthly payment amount and
4 quarter monthly payment dates for taxpayers who file on other
5 than a calendar monthly basis.
6 If any such payment provided for in this Section exceeds
7 the taxpayer's liabilities under this Act, the Retailers'
8 Occupation Tax Act, the Service Occupation Tax Act and the
9 Service Use Tax Act, as shown by an original monthly return,
10 the Department shall issue to the taxpayer a credit
11 memorandum no later than 30 days after the date of payment,
12 which memorandum may be submitted by the taxpayer to the
13 Department in payment of tax liability subsequently to be
14 remitted by the taxpayer to the Department or be assigned by
15 the taxpayer to a similar taxpayer under this Act, the
16 Retailers' Occupation Tax Act, the Service Occupation Tax Act
17 or the Service Use Tax Act, in accordance with reasonable
18 rules and regulations to be prescribed by the Department,
19 except that if such excess payment is shown on an original
20 monthly return and is made after December 31, 1986, no credit
21 memorandum shall be issued, unless requested by the taxpayer.
22 If no such request is made, the taxpayer may credit such
23 excess payment against tax liability subsequently to be
24 remitted by the taxpayer to the Department under this Act,
25 the Retailers' Occupation Tax Act, the Service Occupation Tax
26 Act or the Service Use Tax Act, in accordance with reasonable
27 rules and regulations prescribed by the Department. If the
28 Department subsequently determines that all or any part of
29 the credit taken was not actually due to the taxpayer, the
30 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
31 by 2.1% or 1.75% of the difference between the credit taken
32 and that actually due, and the taxpayer shall be liable for
33 penalties and interest on such difference.
34 If the retailer is otherwise required to file a monthly
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1 return and if the retailer's average monthly tax liability to
2 the Department does not exceed $200, the Department may
3 authorize his returns to be filed on a quarter annual basis,
4 with the return for January, February, and March of a given
5 year being due by April 20 of such year; with the return for
6 April, May and June of a given year being due by July 20 of
7 such year; with the return for July, August and September of
8 a given year being due by October 20 of such year, and with
9 the return for October, November and December of a given year
10 being due by January 20 of the following year.
11 If the retailer is otherwise required to file a monthly
12 or quarterly return and if the retailer's average monthly tax
13 liability to the Department does not exceed $50, the
14 Department may authorize his returns to be filed on an annual
15 basis, with the return for a given year being due by January
16 20 of the following year.
17 Such quarter annual and annual returns, as to form and
18 substance, shall be subject to the same requirements as
19 monthly returns.
20 Notwithstanding any other provision in this Act
21 concerning the time within which a retailer may file his
22 return, in the case of any retailer who ceases to engage in a
23 kind of business which makes him responsible for filing
24 returns under this Act, such retailer shall file a final
25 return under this Act with the Department not more than one
26 month after discontinuing such business.
27 In addition, with respect to motor vehicles, watercraft,
28 aircraft, and trailers that are required to be registered
29 with an agency of this State, every retailer selling this
30 kind of tangible personal property shall file, with the
31 Department, upon a form to be prescribed and supplied by the
32 Department, a separate return for each such item of tangible
33 personal property which the retailer sells, except that
34 where, in the same transaction, a retailer of aircraft,
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1 watercraft, motor vehicles or trailers transfers more than
2 one aircraft, watercraft, motor vehicle or trailer to another
3 aircraft, watercraft, motor vehicle or trailer retailer for
4 the purpose of resale, that seller for resale may report the
5 transfer of all the aircraft, watercraft, motor vehicles or
6 trailers involved in that transaction to the Department on
7 the same uniform invoice-transaction reporting return form.
8 For purposes of this Section, "watercraft" means a Class 2,
9 Class 3, or Class 4 watercraft as defined in Section 3-2 of
10 the Boat Registration and Safety Act, a personal watercraft,
11 or any boat equipped with an inboard motor.
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 2 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 and aircraft must show the name and address of the
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1 seller; the name and address of the purchaser; the amount of
2 the selling price including the amount allowed by the
3 retailer for traded-in property, if any; the amount allowed
4 by the retailer for the traded-in tangible personal property,
5 if any, to the extent to which Section 2 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 date of delivery of the item
18 that is being sold, but may be filed by the retailer at any
19 time sooner than that if he chooses to do so. The
20 transaction reporting return and tax remittance or proof of
21 exemption from the tax that is imposed by this Act may be
22 transmitted to the Department by way of the State agency with
23 which, or State officer with whom, the tangible personal
24 property must be titled or registered (if titling or
25 registration is required) if the Department and such agency
26 or State officer determine that this procedure will expedite
27 the processing of 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 tax
33 receipt (or a certificate of exemption if the Department is
34 satisfied that the particular sale is tax exempt) which such
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1 purchaser may submit to the agency with which, or State
2 officer with whom, he must title or register the tangible
3 personal property that is involved (if titling or
4 registration is required) in support of such purchaser's
5 application for an Illinois certificate or other evidence of
6 title or registration to such tangible personal property.
7 No retailer's failure or refusal to remit tax under this
8 Act precludes a user, who has paid the proper tax to the
9 retailer, from obtaining his certificate of title or other
10 evidence of title or registration (if titling or registration
11 is required) upon satisfying the Department that such user
12 has paid the proper tax (if tax is due) to the retailer. The
13 Department shall adopt appropriate rules to carry out the
14 mandate of this paragraph.
15 If the user who would otherwise pay tax to the retailer
16 wants the transaction reporting return filed and the payment
17 of tax or proof of exemption made to the Department before
18 the retailer is willing to take these actions and such user
19 has not paid the tax to the retailer, such user may certify
20 to the fact of such delay by the retailer, and may (upon the
21 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 Where a retailer collects the tax with respect to the
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1 selling price of tangible personal property which he sells
2 and the purchaser thereafter returns such tangible personal
3 property and the retailer refunds the selling price thereof
4 to the purchaser, such retailer shall also refund, to the
5 purchaser, the tax so collected from the purchaser. When
6 filing his return for the period in which he refunds such tax
7 to the purchaser, the retailer may deduct the amount of the
8 tax so refunded by him to the purchaser from any other use
9 tax which such retailer may be required to pay or remit to
10 the Department, as shown by such return, if the amount of the
11 tax to be deducted was previously remitted to the Department
12 by such retailer. If the retailer has not previously
13 remitted the amount of such tax to the Department, he is
14 entitled to no deduction under this Act upon refunding such
15 tax to the purchaser.
16 Any retailer filing a return under this Section shall
17 also include (for the purpose of paying tax thereon) the
18 total tax covered by such return upon the selling price of
19 tangible personal property purchased by him at retail from a
20 retailer, but as to which the tax imposed by this Act was not
21 collected from the retailer filing such return, and such
22 retailer shall remit the amount of such tax to the Department
23 when filing such return.
24 If experience indicates such action to be practicable,
25 the Department may prescribe and furnish a combination or
26 joint return which will enable retailers, who are required to
27 file returns hereunder and also under the Retailers'
28 Occupation Tax Act, to furnish all the return information
29 required by both Acts on the one form.
30 Where the retailer has more than one business registered
31 with the Department under separate registration under this
32 Act, such retailer may not file each return that is due as a
33 single return covering all such registered businesses, but
34 shall file separate returns for each such registered
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1 business.
2 Beginning January 1, 1990, each month the Department
3 shall pay into the State and Local Sales Tax Reform Fund, a
4 special fund in the State Treasury which is hereby created,
5 the net revenue realized for the preceding month from the 1%
6 tax on sales of food for human consumption which is to be
7 consumed off the premises where it is sold (other than
8 alcoholic beverages, soft drinks and food which has been
9 prepared for immediate consumption) and prescription and
10 nonprescription medicines, drugs, medical appliances and
11 insulin, urine testing materials, syringes and needles used
12 by diabetics.
13 Beginning January 1, 1990, each month the Department
14 shall pay into the County and Mass Transit District Fund 4%
15 of the net revenue realized for the preceding month from the
16 6.25% general rate on the selling price of tangible personal
17 property which is purchased outside Illinois at retail from a
18 retailer and which is titled or registered by an agency of
19 this State's government.
20 Beginning January 1, 1990, each month the Department
21 shall pay into the State and Local Sales Tax Reform Fund, a
22 special fund in the State Treasury, 20% of the net revenue
23 realized for the preceding month from the 6.25% general rate
24 on the selling price of tangible personal property, other
25 than tangible personal property which is purchased outside
26 Illinois at retail from a retailer and which is titled or
27 registered by an agency of this State's government.
28 Beginning January 1, 1990, each month the Department
29 shall pay into the Local Government Tax Fund 16% of the net
30 revenue realized for the preceding month from the 6.25%
31 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 Of the remainder of the moneys received by the Department
2 pursuant to this Act, (a) 1.75% thereof shall be paid into
3 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
4 and on and after July 1, 1989, 3.8% thereof shall be paid
5 into the Build Illinois Fund; provided, however, that if in
6 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
7 as the case may be, of the moneys received by the Department
8 and required to be paid into the Build Illinois Fund pursuant
9 to Section 3 of the Retailers' Occupation Tax Act, Section 9
10 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
11 Section 9 of the Service Occupation Tax Act, such Acts being
12 hereinafter called the "Tax Acts" and such aggregate of 2.2%
13 or 3.8%, as the case may be, of moneys being hereinafter
14 called the "Tax Act Amount", and (2) the amount transferred
15 to the Build Illinois Fund from the State and Local Sales Tax
16 Reform Fund shall be less than the Annual Specified Amount
17 (as defined in Section 3 of the Retailers' Occupation Tax
18 Act), an amount equal to the difference shall be immediately
19 paid into the Build Illinois Fund from other moneys received
20 by the Department pursuant to the Tax Acts; and further
21 provided, that if on the last business day of any month the
22 sum of (1) the Tax Act Amount required to be deposited into
23 the Build Illinois Bond Account in the Build Illinois Fund
24 during such month and (2) the amount transferred during such
25 month to the Build Illinois Fund from the State and Local
26 Sales Tax Reform Fund shall have been less than 1/12 of the
27 Annual Specified Amount, an amount equal to the difference
28 shall be immediately paid into the Build Illinois Fund from
29 other moneys received by the Department pursuant to the Tax
30 Acts; and, further provided, that in no event shall the
31 payments required under the preceding proviso result in
32 aggregate payments into the Build Illinois Fund pursuant to
33 this clause (b) for any fiscal year in excess of the greater
34 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
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1 for such fiscal year; and, further provided, that the amounts
2 payable into the Build Illinois Fund under this clause (b)
3 shall be payable only until such time as the aggregate amount
4 on deposit under each trust indenture securing Bonds issued
5 and outstanding pursuant to the Build Illinois Bond Act is
6 sufficient, taking into account any future investment income,
7 to fully provide, in accordance with such indenture, for the
8 defeasance of or the payment of the principal of, premium, if
9 any, and interest on the Bonds secured by such indenture and
10 on any Bonds expected to be issued thereafter and all fees
11 and costs payable with respect thereto, all as certified by
12 the Director of the Bureau of the Budget. If on the last
13 business day of any month in which Bonds are outstanding
14 pursuant to the Build Illinois Bond Act, the aggregate of the
15 moneys deposited in the Build Illinois Bond Account in the
16 Build Illinois Fund in such month shall be less than the
17 amount required to be transferred in such month from the
18 Build Illinois Bond Account to the Build Illinois Bond
19 Retirement and Interest Fund pursuant to Section 13 of the
20 Build Illinois Bond Act, an amount equal to such deficiency
21 shall be immediately paid from other moneys received by the
22 Department pursuant to the Tax Acts to the Build Illinois
23 Fund; provided, however, that any amounts paid to the Build
24 Illinois Fund in any fiscal year pursuant to this sentence
25 shall be deemed to constitute payments pursuant to clause (b)
26 of the preceding sentence and shall reduce the amount
27 otherwise payable for such fiscal year pursuant to clause (b)
28 of the preceding sentence. The moneys received by the
29 Department pursuant to this Act and required to be deposited
30 into the Build Illinois Fund are subject to the pledge, claim
31 and charge set forth in Section 12 of the Build Illinois Bond
32 Act.
33 Subject to payment of amounts into the Build Illinois
34 Fund as provided in the preceding paragraph or in any
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1 amendment thereto hereafter enacted, the following specified
2 monthly installment of the amount requested in the
3 certificate of the Chairman of the Metropolitan Pier and
4 Exposition Authority provided under Section 8.25f of the
5 State Finance Act, but not in excess of the sums designated
6 as "Total Deposit", shall be deposited in the aggregate from
7 collections under Section 9 of the Use Tax Act, Section 9 of
8 the Service Use Tax Act, Section 9 of the Service Occupation
9 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
10 into the McCormick Place Expansion Project Fund in the
11 specified fiscal years.
12 Fiscal Year Total Deposit
13 1993 $0
14 1994 53,000,000
15 1995 58,000,000
16 1996 61,000,000
17 1997 64,000,000
18 1998 68,000,000
19 1999 71,000,000
20 2000 75,000,000
21 2001 80,000,000
22 2002 84,000,000
23 2003 89,000,000
24 2004 93,000,000
25 2005 97,000,000
26 2006 102,000,000
27 2007 and 106,000,000
28 each fiscal year
29 thereafter that bonds
30 are outstanding under
31 Section 13.2 of the
32 Metropolitan Pier and
33 Exposition Authority
34 Act, but not after fiscal year 2029.
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1 Beginning July 20, 1993 and in each month of each fiscal
2 year thereafter, one-eighth of the amount requested in the
3 certificate of the Chairman of the Metropolitan Pier and
4 Exposition Authority for that fiscal year, less the amount
5 deposited into the McCormick Place Expansion Project Fund by
6 the State Treasurer in the respective month under subsection
7 (g) of Section 13 of the Metropolitan Pier and Exposition
8 Authority Act, plus cumulative deficiencies in the deposits
9 required under this Section for previous months and years,
10 shall be deposited into the McCormick Place Expansion Project
11 Fund, until the full amount requested for the fiscal year,
12 but not in excess of the amount specified above as "Total
13 Deposit", has been deposited.
14 Subject to payment of amounts into the Build Illinois
15 Fund and the McCormick Place Expansion Project Fund pursuant
16 to the preceding paragraphs or in any amendment thereto
17 hereafter enacted, each month the Department shall pay into
18 the Local Government Distributive Fund .4% of the net revenue
19 realized for the preceding month from the 5% general rate, or
20 .4% of 80% of the net revenue realized for the preceding
21 month from the 6.25% general rate, as the case may be, on the
22 selling price of tangible personal property which amount
23 shall, subject to appropriation, be distributed as provided
24 in Section 2 of the State Revenue Sharing Act. No payments or
25 distributions pursuant to this paragraph shall be made if the
26 tax imposed by this Act on photoprocessing products is
27 declared unconstitutional, or if the proceeds from such tax
28 are unavailable for distribution because of litigation.
29 Subject to payment of amounts into the Build Illinois
30 Fund, the McCormick Place Expansion Project Fund, and the
31 Local Government Distributive Fund pursuant to the preceding
32 paragraphs or in any amendments thereto hereafter enacted,
33 beginning July 1, 1993, the Department shall each month pay
34 into the Illinois Tax Increment Fund 0.27% of 80% of the net
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1 revenue realized for the preceding month from the 6.25%
2 general rate on the selling price of tangible personal
3 property.
4 Of the remainder of the moneys received by the Department
5 pursuant to this Act, 75% thereof shall be paid into the
6 State Treasury and 25% shall be reserved in a special account
7 and used only for the transfer to the Common School Fund as
8 part of the monthly transfer from the General Revenue Fund in
9 accordance with Section 8a of the State Finance Act.
10 As soon as possible after the first day of each month,
11 upon certification of the Department of Revenue, the
12 Comptroller shall order transferred and the Treasurer shall
13 transfer from the General Revenue Fund to the Motor Fuel Tax
14 Fund an amount equal to 1.7% of 80% of the net revenue
15 realized under this Act for the second preceding month;
16 except that this transfer shall not be made for the months
17 February through June of 1992.
18 Net revenue realized for a month shall be the revenue
19 collected by the State pursuant to this Act, less the amount
20 paid out during that month as refunds to taxpayers for
21 overpayment of liability.
22 For greater simplicity of administration, manufacturers,
23 importers and wholesalers whose products are sold at retail
24 in Illinois by numerous retailers, and who wish to do so, may
25 assume the responsibility for accounting and paying to the
26 Department all tax accruing under this Act with respect to
27 such sales, if the retailers who are affected do not make
28 written objection to the Department to this arrangement.
29 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
30 90-491, eff. 1-1-99; 90-612, eff. 7-8-98.)
31 (35 ILCS 105/10) (from Ch. 120, par. 439.10)
32 Sec. 10. Except as to motor vehicles and aircraft, when
33 tangible personal property is purchased from a retailer for
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1 use in this State by a purchaser who did not pay the tax
2 imposed by this Act to the retailer, and who does not file
3 returns with the Department as a retailer under Section 9 of
4 this Act, such purchaser (by the last day of the month
5 following the calendar month in which such purchaser makes
6 any payment upon the selling price of such property) shall,
7 except as provided in this Section, file a return with the
8 Department and pay the tax upon that portion of the selling
9 price so paid by the purchaser during the preceding calendar
10 month. When tangible personal property, including but not
11 limited to motor vehicles and aircraft, is purchased by a
12 lessor, under a lease for one year or longer, executed or in
13 effect at the time of purchase to an interstate carrier for
14 hire, who did not pay the tax imposed by this Act to the
15 retailer, such lessor (by the last day of the month following
16 the calendar month in which such property reverts to the use
17 of such lessor) shall file a return with the Department and
18 pay the tax upon the fair market value of such property on
19 the date of such reversion. However, in determining the fair
20 market value at the time of reversion, the fair market value
21 of such property shall not exceed the original purchase price
22 of the property that was paid by the lessor at the time of
23 purchase. Such return shall be filed on a form prescribed
24 by the Department and shall contain such information as the
25 Department may reasonably require. Such return and payment
26 from the purchaser shall be submitted to the Department
27 sooner than the last day of the month after the month in
28 which the purchase is made to the extent that that may be
29 necessary in order to secure the title to a motor vehicle or
30 the certificate of registration for an aircraft. However,
31 except as to motor vehicles and aircraft, if the purchaser's
32 annual use tax liability does not exceed $600, the purchaser
33 may file the return on an annual basis on or before April
34 15th of the year following the year use tax liability was
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1 incurred.
2 In addition with respect to motor vehicles and aircraft,
3 a purchaser of such tangible personal property for use in
4 this State, who purchases such tangible personal property
5 from an out-of-state retailer, shall file with the
6 Department, upon a form to be prescribed and supplied by the
7 Department, a return for each such item of tangible personal
8 property purchased. Such return in the case of motor
9 vehicles and aircraft must show the name and address of the
10 seller, the name, address of purchaser, the amount of the
11 selling price including the amount allowed by the retailer
12 for traded in property, if any; the amount allowed by the
13 retailer for the traded-in tangible personal property, if
14 any, to the extent to which Section 2 of this Act allows an
15 exemption for the value of traded-in property; the balance
16 payable after deducting such trade-in allowance from the
17 total selling price; the amount of tax due from the purchaser
18 with respect to such transaction; the amount of tax collected
19 from the purchaser by the retailer on such transaction (or
20 satisfactory evidence that such tax is not due in that
21 particular instance if that is claimed to be the fact); the
22 place and date of the sale, a sufficient identification of
23 the property sold, and such other information as the
24 Department may reasonably require.
25 Such return shall be filed not later than 30 days after
26 such motor vehicle or aircraft is brought into this State for
27 use.
28 The return and tax remittance or proof of exemption from
29 the tax that is imposed by this Act may be transmitted to the
30 Department by way of the State agency with which, or State
31 officer with whom, the tangible personal property must be
32 titled or registered (if titling or registration is required)
33 if the Department and such agency or State officer determine
34 that this procedure will expedite the processing of
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1 applications for title or registration.
2 With each such return, the purchaser shall remit the
3 proper amount of tax due (or shall submit satisfactory
4 evidence that the sale is not taxable if that is the case),
5 to the Department or its agents, whereupon the Department
6 shall issue, in the purchaser's name, a tax receipt (or a
7 certificate of exemption if the Department is satisfied that
8 the particular sale is tax exempt) which such purchaser may
9 submit to the agency with which, or State officer with whom,
10 he must title or register the tangible personal property that
11 is involved (if titling or registration is required) in
12 support of such purchaser's application for an Illinois
13 certificate or other evidence of title or registration to
14 such tangible personal property.
15 When a purchaser pays a tax imposed by this Act directly
16 to the Department, the Department (upon request therefor from
17 such purchaser) shall issue an appropriate receipt to such
18 purchaser showing that he has paid such tax to the
19 Department. Such receipt shall be sufficient to relieve the
20 purchaser from further liability for the tax to which such
21 receipt may refer.
22 A user who is liable to pay use tax directly to the
23 Department only occasionally and not on a frequently
24 recurring basis, and who is not required to file returns with
25 the Department as a retailer under Section 9 of this Act, or
26 under the "Retailers' Occupation Tax Act", or as a registrant
27 with the Department under the "Service Occupation Tax Act" or
28 the "Service Use Tax Act", need not register with the
29 Department. However, if such a user has a frequently
30 recurring direct use tax liability to pay to the Department,
31 such user shall be required to register with the Department
32 on forms prescribed by the Department and to obtain and
33 display a certificate of registration from the Department.
34 In that event, all of the provisions of Section 9 of this Act
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1 concerning the filing of regular monthly, quarterly or annual
2 tax returns and all of the provisions of Section 2a of the
3 "Retailers' Occupation Tax Act" concerning the requirements
4 for registrants to post bond or other security with the
5 Department, as the provisions of such sections now exist or
6 may hereafter be amended, shall apply to such users to the
7 same extent as if such provisions were included herein.
8 (Source: P.A. 87-876.)
9 Section 15. The Service Use Tax Act is amended by
10 changing Sections 3-10 and 9 as follows:
11 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
12 Sec. 3-10. Rate of tax. Unless otherwise provided in
13 this Section, the tax imposed by this Act is at the rate of
14 6.25% of the selling price of tangible personal property
15 transferred as an incident to the sale of service, but, for
16 the purpose of computing this tax, in no event shall the
17 selling price be less than the cost price of the property to
18 the serviceman.
19 With respect to gasohol, as defined in the Use Tax Act,
20 the tax imposed by this Act applies to 70% of the selling
21 price of property transferred as an incident to the sale of
22 service on or after January 1, 1990, and before July 1, 2003,
23 and to 100% of the selling price thereafter.
24 At the election of any registered serviceman made for
25 each fiscal year, sales of service in which the aggregate
26 annual cost price of tangible personal property transferred
27 as an incident to the sales of service is less than 35%, or
28 75% in the case of servicemen transferring prescription drugs
29 or servicemen engaged in graphic arts production, of the
30 aggregate annual total gross receipts from all sales of
31 service, the tax imposed by this Act shall be based on the
32 serviceman's cost price of the tangible personal property
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1 transferred as an incident to the sale of those services.
2 The tax shall be imposed at the rate of 1% on food
3 prepared for immediate consumption and transferred incident
4 to a sale of service subject to this Act or the Service
5 Occupation Tax Act by an entity licensed under the Hospital
6 Licensing Act, or the Nursing Home Care Act, or the Child
7 Care Act of 1969. The tax shall also be imposed at the rate
8 of 1% on food for human consumption that is to be consumed
9 off the premises where it is sold (other than alcoholic
10 beverages, soft drinks, and food that has been prepared for
11 immediate consumption and is not otherwise included in this
12 paragraph) and prescription and nonprescription medicines,
13 drugs, medical appliances, modifications to a motor vehicle
14 for the purpose of rendering it usable by a disabled person,
15 and insulin, urine testing materials, syringes, and needles
16 used by diabetics, for human use. For the purposes of this
17 Section, the term "soft drinks" means any complete, finished,
18 ready-to-use, non-alcoholic drink, whether carbonated or not,
19 including but not limited to soda water, cola, fruit juice,
20 vegetable juice, carbonated water, and all other preparations
21 commonly known as soft drinks of whatever kind or description
22 that are contained in any closed or sealed bottle, can,
23 carton, or container, regardless of size. "Soft drinks" does
24 not include coffee, tea, non-carbonated water, infant
25 formula, milk or milk products as defined in the Grade A
26 Pasteurized Milk and Milk Products Act, or drinks containing
27 50% or more natural fruit or vegetable juice.
28 Notwithstanding any other provisions of this Act, "food
29 for human consumption that is to be consumed off the premises
30 where it is sold" includes all food sold through a vending
31 machine, except soft drinks and food products that are
32 dispensed hot from a vending machine, regardless of the
33 location of the vending machine.
34 If the property that is acquired from a serviceman is
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1 acquired outside Illinois and used outside Illinois before
2 being brought to Illinois for use here and is taxable under
3 this Act, the "selling price" on which the tax is computed
4 shall be reduced by an amount that represents a reasonable
5 allowance for depreciation for the period of prior
6 out-of-state use.
7 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
8 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
9 6-30-98; 90-606, eff. 6-30-98.)
10 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
11 Sec. 9. Each serviceman required or authorized to
12 collect the tax herein imposed shall pay to the Department
13 the amount of such tax (except as otherwise provided) at the
14 time when he is required to file his return for the period
15 during which such tax was collected, less a discount of 2.1%
16 prior to January 1, 1990 and 1.75% on and after January 1,
17 1990, or $5 per calendar year, whichever is greater, which is
18 allowed to reimburse the serviceman for expenses incurred in
19 collecting the tax, keeping records, preparing and filing
20 returns, remitting the tax and supplying data to the
21 Department on request. A serviceman need not remit that part
22 of any tax collected by him to the extent that he is required
23 to pay and does pay the tax imposed by the Service Occupation
24 Tax Act with respect to his sale of service involving the
25 incidental transfer by him of the same property.
26 Except as provided hereinafter in this Section, on or
27 before the twentieth day of each calendar month, such
28 serviceman shall file a return for the preceding calendar
29 month in accordance with reasonable Rules and Regulations to
30 be promulgated by the Department. Such return shall be filed
31 on a form prescribed by the Department and shall contain such
32 information as the Department may reasonably require.
33 The Department may require returns to be filed on a
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1 quarterly basis. If so required, a return for each calendar
2 quarter shall be filed on or before the twentieth day of the
3 calendar month following the end of such calendar quarter.
4 The taxpayer shall also file a return with the Department for
5 each of the first two months of each calendar quarter, on or
6 before the twentieth day of the following calendar month,
7 stating:
8 1. The name of the seller;
9 2. The address of the principal place of business
10 from which he engages in business as a serviceman in this
11 State;
12 3. The total amount of taxable receipts received by
13 him during the preceding calendar month, including
14 receipts from charge and time sales, but less all
15 deductions allowed by law;
16 4. The amount of credit provided in Section 2d of
17 this Act;
18 5. The amount of tax due;
19 5-5. The signature of the taxpayer; and
20 6. Such other reasonable information as the
21 Department may require.
22 If a taxpayer fails to sign a return within 30 days after
23 the proper notice and demand for signature by the Department,
24 the return shall be considered valid and any amount shown to
25 be due on the return shall be deemed assessed.
26 Beginning October 1, 1993, a taxpayer who has an average
27 monthly tax liability of $150,000 or more shall make all
28 payments required by rules of the Department by electronic
29 funds transfer. Beginning October 1, 1994, a taxpayer who
30 has an average monthly tax liability of $100,000 or more
31 shall make all payments required by rules of the Department
32 by electronic funds transfer. Beginning October 1, 1995, a
33 taxpayer who has an average monthly tax liability of $50,000
34 or more shall make all payments required by rules of the
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1 Department by electronic funds transfer. Beginning October 1,
2 2000, a taxpayer who has an annual tax liability of $50,000
3 or more shall make all payments required by rules of the
4 Department by electronic funds transfer. The term "annual
5 tax liability" shall be the sum of the taxpayer's liabilities
6 under this Act, and under all other State and local
7 occupation and use tax laws administered by the Department,
8 for the immediately preceding calendar year. The term
9 "average monthly tax liability" means the sum of the
10 taxpayer's liabilities under this Act, and under all other
11 State and local occupation and use tax laws administered by
12 the 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 required
17 to make payments by electronic funds transfer shall make
18 those payments for a minimum of one year beginning on October
19 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 If the serviceman is otherwise required to file a monthly
31 return and if the serviceman's average monthly tax liability
32 to the Department does not exceed $200, the Department may
33 authorize his returns to be filed on a quarter annual basis,
34 with the return for January, February and March of a given
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1 year being due by April 20 of such year; with the return for
2 April, May and June of a given year being due by July 20 of
3 such year; with the return for July, August and September of
4 a given year being due by October 20 of such year, and with
5 the return for October, November and December of a given year
6 being due by January 20 of the following year.
7 If the serviceman is otherwise required to file a monthly
8 or quarterly return and if the serviceman's average monthly
9 tax liability to the Department does not exceed $50, the
10 Department may authorize his returns to be filed on an annual
11 basis, with the return for a given year being due by January
12 20 of the following year.
13 Such quarter annual and annual returns, as to form and
14 substance, shall be subject to the same requirements as
15 monthly returns.
16 Notwithstanding any other provision in this Act
17 concerning the time within which a serviceman may file his
18 return, in the case of any serviceman who ceases to engage in
19 a kind of business which makes him responsible for filing
20 returns under this Act, such serviceman shall file a final
21 return under this Act with the Department not more than 1
22 month after discontinuing such business.
23 Where a serviceman collects the tax with respect to the
24 selling price of property which he sells and the purchaser
25 thereafter returns such property and the serviceman refunds
26 the selling price thereof to the purchaser, such serviceman
27 shall also refund, to the purchaser, the tax so collected
28 from the purchaser. When filing his return for the period in
29 which he refunds such tax to the purchaser, the serviceman
30 may deduct the amount of the tax so refunded by him to the
31 purchaser from any other Service Use Tax, Service Occupation
32 Tax, retailers' occupation tax or use tax which such
33 serviceman may be required to pay or remit to the Department,
34 as shown by such return, provided that the amount of the tax
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1 to be deducted shall previously have been remitted to the
2 Department by such serviceman. If the serviceman shall not
3 previously have remitted the amount of such tax to the
4 Department, he shall be entitled to no deduction hereunder
5 upon refunding such tax to the purchaser.
6 Any serviceman filing a return hereunder shall also
7 include the total tax upon the selling price of tangible
8 personal property purchased for use by him as an incident to
9 a sale of service, and such serviceman shall remit the amount
10 of such tax to the Department when filing such return.
11 If experience indicates such action to be practicable,
12 the Department may prescribe and furnish a combination or
13 joint return which will enable servicemen, who are required
14 to file returns hereunder and also under the Service
15 Occupation Tax Act, to furnish all the return information
16 required by both Acts on the one form.
17 Where the serviceman has more than one business
18 registered with the Department under separate registration
19 hereunder, such serviceman shall not file each return that is
20 due as a single return covering all such registered
21 businesses, but shall file separate returns for each such
22 registered business.
23 Beginning January 1, 1990, each month the Department
24 shall pay into the State and Local Tax Reform Fund, a special
25 fund in the State Treasury, the net revenue realized for the
26 preceding month from the 1% tax on sales of food for human
27 consumption which is to be consumed off the premises where it
28 is sold (other than alcoholic beverages, soft drinks and food
29 which has been prepared for immediate consumption) and
30 prescription and nonprescription medicines, drugs, medical
31 appliances and insulin, urine testing materials, syringes and
32 needles used by diabetics.
33 Beginning January 1, 1990, each month the Department
34 shall pay into the State and Local Sales Tax Reform Fund 20%
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1 of the net revenue realized for the preceding month from the
2 6.25% general rate on transfers of tangible personal
3 property, other than tangible personal property which is
4 purchased outside Illinois at retail from a retailer and
5 which is titled or registered by an agency of this State's
6 government.
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 Bond Account in the Build Illinois Fund
30 during such month and (2) the amount transferred during such
31 month to the Build Illinois Fund from the State and Local
32 Sales Tax Reform Fund shall have been less than 1/12 of the
33 Annual Specified Amount, an amount equal to the difference
34 shall be immediately paid into the Build Illinois Fund from
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1 other moneys received by the Department pursuant to the Tax
2 Acts; and, further provided, that in no event shall the
3 payments required under the preceding proviso result in
4 aggregate payments into the Build Illinois Fund pursuant to
5 this clause (b) for any fiscal year in excess of the greater
6 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
7 for such fiscal year; and, further provided, that the amounts
8 payable into the Build Illinois Fund under this clause (b)
9 shall be payable only until such time as the aggregate amount
10 on deposit under each trust indenture securing Bonds issued
11 and 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 93,000,000
31 2005 97,000,000
32 2006 102,000,000
33 2007 and 106,000,000
34 each fiscal year
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1 thereafter that bonds
2 are outstanding under
3 Section 13.2 of the
4 Metropolitan Pier and
5 Exposition Authority Act,
6 but not after fiscal year 2029.
7 Beginning July 20, 1993 and in each month of each fiscal
8 year thereafter, one-eighth of the amount requested in the
9 certificate of the Chairman of the Metropolitan Pier and
10 Exposition Authority for that fiscal year, less the amount
11 deposited into the McCormick Place Expansion Project Fund by
12 the State Treasurer in the respective month under subsection
13 (g) of Section 13 of the Metropolitan Pier and Exposition
14 Authority Act, plus cumulative deficiencies in the deposits
15 required under this Section for previous months and years,
16 shall be deposited into the McCormick Place Expansion Project
17 Fund, until the full amount requested for the fiscal year,
18 but not in excess of the amount specified above as "Total
19 Deposit", has been deposited.
20 Subject to payment of amounts into the Build Illinois
21 Fund and the McCormick Place Expansion Project Fund pursuant
22 to the preceding paragraphs or in any amendment thereto
23 hereafter enacted, each month the Department shall pay into
24 the Local Government Distributive Fund 0.4% of the net
25 revenue realized for the preceding month from the 5% general
26 rate or 0.4% of 80% of the net revenue realized for the
27 preceding month from the 6.25% general rate, as the case may
28 be, on the selling price of tangible personal property which
29 amount shall, subject to appropriation, be distributed as
30 provided in Section 2 of the State Revenue Sharing Act. No
31 payments or distributions pursuant to this paragraph shall be
32 made if the tax imposed by this Act on photo processing
33 products is declared unconstitutional, or if the proceeds
34 from such tax are unavailable for distribution because of
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1 litigation.
2 Subject to payment of amounts into the Build Illinois
3 Fund, the McCormick Place Expansion Project Fund, and the
4 Local Government Distributive Fund pursuant to the preceding
5 paragraphs or in any amendments thereto hereafter enacted,
6 beginning July 1, 1993, the Department shall each month pay
7 into the Illinois Tax Increment Fund 0.27% of 80% of the net
8 revenue realized for the preceding month from the 6.25%
9 general rate on the selling price of tangible personal
10 property.
11 All remaining moneys received by the Department pursuant
12 to this Act shall be paid into the General Revenue Fund of
13 the State Treasury.
14 As soon as possible after the first day of each month,
15 upon certification of the Department of Revenue, the
16 Comptroller shall order transferred and the Treasurer shall
17 transfer from the General Revenue Fund to the Motor Fuel Tax
18 Fund an amount equal to 1.7% of 80% of the net revenue
19 realized under this Act for the second preceding month;
20 except that this transfer shall not be made for the months
21 February through June, 1992.
22 Net revenue realized for a month shall be the revenue
23 collected by the State pursuant to this Act, less the amount
24 paid out during that month as refunds to taxpayers for
25 overpayment of liability.
26 (Source: P.A. 89-379, eff. 1-1-96; 90-612, eff. 7-8-98.)
27 Section 20. The Service Occupation Tax Act is amended by
28 changing Sections 3-10 and 9 as follows:
29 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
30 Sec. 3-10. Rate of tax. Unless otherwise provided in
31 this Section, the tax imposed by this Act is at the rate of
32 6.25% of the "selling price", as defined in Section 2 of the
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1 Service Use Tax Act, of the tangible personal property. For
2 the purpose of computing this tax, in no event shall the
3 "selling price" be less than the cost price to the serviceman
4 of the tangible personal property transferred. The selling
5 price of each item of tangible personal property transferred
6 as an incident of a sale of service may be shown as a
7 distinct and separate item on the serviceman's billing to the
8 service customer. If the selling price is not so shown, the
9 selling price of the tangible personal property is deemed to
10 be 50% of the serviceman's entire billing to the service
11 customer. When, however, a serviceman contracts to design,
12 develop, and produce special order machinery or equipment,
13 the tax imposed by this Act shall be based on the
14 serviceman's cost price of the tangible personal property
15 transferred incident to the completion of the contract.
16 With respect to gasohol, as defined in the Use Tax Act,
17 the tax imposed by this Act shall apply to 70% of the cost
18 price of property transferred as an incident to the sale of
19 service on or after January 1, 1990, and before July 1, 2003,
20 and to 100% of the cost price thereafter.
21 At the election of any registered serviceman made for
22 each fiscal year, sales of service in which the aggregate
23 annual cost price of tangible personal property transferred
24 as an incident to the sales of service is less than 35%, or
25 75% in the case of servicemen transferring prescription drugs
26 or servicemen engaged in graphic arts production, of the
27 aggregate annual total gross receipts from all sales of
28 service, the tax imposed by this Act shall be based on the
29 serviceman's cost price of the tangible personal property
30 transferred incident to the sale of those services.
31 The tax shall be imposed at the rate of 1% on food
32 prepared for immediate consumption and transferred incident
33 to a sale of service subject to this Act or the Service
34 Occupation Tax Act by an entity licensed under the Hospital
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1 Licensing Act, or the Nursing Home Care Act, or the Child
2 Care Act of 1969. The tax shall also be imposed at the rate
3 of 1% on food for human consumption that is to be consumed
4 off the premises where it is sold (other than alcoholic
5 beverages, soft drinks, and food that has been prepared for
6 immediate consumption and is not otherwise included in this
7 paragraph) and prescription and nonprescription medicines,
8 drugs, medical appliances, modifications to a motor vehicle
9 for the purpose of rendering it usable by a disabled person,
10 and insulin, urine testing materials, syringes, and needles
11 used by diabetics, for human use. For the purposes of this
12 Section, the term "soft drinks" means any complete, finished,
13 ready-to-use, non-alcoholic drink, whether carbonated or not,
14 including but not limited to soda water, cola, fruit juice,
15 vegetable juice, carbonated water, and all other preparations
16 commonly known as soft drinks of whatever kind or description
17 that are contained in any closed or sealed can, carton, or
18 container, regardless of size. "Soft drinks" does not
19 include coffee, tea, non-carbonated water, infant formula,
20 milk or milk products as defined in the Grade A Pasteurized
21 Milk and Milk Products Act, or drinks containing 50% or more
22 natural fruit or vegetable juice.
23 Notwithstanding any other provisions of this Act, "food
24 for human consumption that is to be consumed off the premises
25 where it is sold" includes all food sold through a vending
26 machine, except soft drinks and food products that are
27 dispensed hot from a vending machine, regardless of the
28 location of the vending machine.
29 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
30 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
31 6-30-98; 90-606, eff. 6-30-98.)
32 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
33 Sec. 9. Each serviceman required or authorized to
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1 collect the tax herein imposed shall pay to the Department
2 the amount of such tax at the time when he is required to
3 file his return for the period during which such tax was
4 collectible, less a discount of 2.1% prior to January 1,
5 1990, and 1.75% on and after January 1, 1990, or $5 per
6 calendar year, whichever is greater, which is allowed to
7 reimburse the serviceman for expenses incurred in collecting
8 the tax, keeping records, preparing and filing returns,
9 remitting the tax and supplying data to the Department on
10 request.
11 Where such tangible personal property is sold under a
12 conditional sales contract, or under any other form of sale
13 wherein the payment of the principal sum, or a part thereof,
14 is extended beyond the close of the period for which the
15 return is filed, the serviceman, in collecting the tax may
16 collect, for each tax return period, only the tax applicable
17 to the part of the selling price actually received during
18 such tax return period.
19 Except as provided hereinafter in this Section, on or
20 before the twentieth day of each calendar month, such
21 serviceman shall file a return for the preceding calendar
22 month in accordance with reasonable rules and regulations to
23 be promulgated by the Department of Revenue. Such return
24 shall be filed on a form prescribed by the Department and
25 shall contain such information as the Department may
26 reasonably require.
27 The Department may require returns to be filed on a
28 quarterly basis. If so required, a return for each calendar
29 quarter shall be filed on or before the twentieth day of the
30 calendar month following the end of such calendar quarter.
31 The taxpayer shall also file a return with the Department for
32 each of the first two months of each calendar quarter, on or
33 before the twentieth day of the following calendar month,
34 stating:
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1 1. The name of the seller;
2 2. The address of the principal place of business
3 from which he engages in business as a serviceman in this
4 State;
5 3. The total amount of taxable receipts received by
6 him during the preceding calendar month, including
7 receipts from charge and time sales, but less all
8 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 A serviceman may accept a Manufacturer's Purchase Credit
20 certification from a purchaser in satisfaction of Service Use
21 Tax as provided in Section 3-70 of the Service Use Tax Act if
22 the purchaser provides the appropriate documentation as
23 required by Section 3-70 of the Service Use Tax Act. A
24 Manufacturer's Purchase Credit certification, accepted by a
25 serviceman as provided in Section 3-70 of the Service Use Tax
26 Act, may be used by that serviceman to satisfy Service
27 Occupation Tax liability in the amount claimed in the
28 certification, not to exceed 6.25% of the receipts subject to
29 tax from a qualifying purchase.
30 If the serviceman's average monthly tax liability to the
31 Department does not exceed $200, the Department may authorize
32 his returns to be filed on a quarter annual basis, with the
33 return for January, February and March of a given year being
34 due by April 20 of such year; with the return for April, May
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1 and June of a given year being due by July 20 of such year;
2 with the return for July, August and September of a given
3 year being due by October 20 of such year, and with the
4 return for October, November and December of a given year
5 being due by January 20 of the following year.
6 If the serviceman's average monthly tax liability to the
7 Department does not exceed $50, the Department may authorize
8 his returns to be filed on an annual basis, with the return
9 for a given year being due by January 20 of the following
10 year.
11 Such quarter annual and annual returns, as to form and
12 substance, shall be subject to the same requirements as
13 monthly returns.
14 Notwithstanding any other provision in this Act
15 concerning the time within which a serviceman may file his
16 return, in the case of any serviceman who ceases to engage in
17 a kind of business which makes him responsible for filing
18 returns under this Act, such serviceman shall file a final
19 return under this Act with the Department not more than 1
20 month after discontinuing such business.
21 Beginning October 1, 1993, a taxpayer who has an average
22 monthly tax liability of $150,000 or more shall make all
23 payments required by rules of the Department by electronic
24 funds transfer. Beginning October 1, 1994, a taxpayer who
25 has an average monthly tax liability of $100,000 or more
26 shall make all payments required by rules of the Department
27 by electronic funds transfer. Beginning October 1, 1995, a
28 taxpayer who has an average monthly tax liability of $50,000
29 or more shall make all payments required by rules of the
30 Department by electronic funds transfer. Beginning October
31 1, 2000, a taxpayer who has an annual tax liability of
32 $50,000 or more shall make all payments required by rules of
33 the Department by electronic funds transfer. The term
34 "annual tax liability" shall be the sum of the taxpayer's
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1 liabilities under this Act, and under all other State and
2 local occupation and use tax laws administered by the
3 Department, for the immediately preceding calendar year. The
4 term "average monthly tax liability" means the sum of the
5 taxpayer's liabilities under this Act, and under all other
6 State and local occupation and use tax laws administered by
7 the Department, for the immediately preceding calendar year
8 divided by 12.
9 Before August 1 of each year beginning in 1993, the
10 Department shall notify all taxpayers required to make
11 payments by electronic funds transfer. All taxpayers
12 required to make payments by electronic funds transfer shall
13 make those payments for a minimum of one year beginning on
14 October 1.
15 Any taxpayer not required to make payments by electronic
16 funds transfer may make payments by electronic funds transfer
17 with the permission of the Department.
18 All taxpayers required to make payment by electronic
19 funds transfer and any taxpayers authorized to voluntarily
20 make payments by electronic funds transfer shall make those
21 payments in the manner authorized by the Department.
22 The Department shall adopt such rules as are necessary to
23 effectuate a program of electronic funds transfer and the
24 requirements of this Section.
25 Where a serviceman collects the tax with respect to the
26 selling price of tangible personal property which he sells
27 and the purchaser thereafter returns such tangible personal
28 property and the serviceman refunds the selling price thereof
29 to the purchaser, such serviceman shall also refund, to the
30 purchaser, the tax so collected from the purchaser. When
31 filing his return for the period in which he refunds such tax
32 to the purchaser, the serviceman may deduct the amount of the
33 tax so refunded by him to the purchaser from any other
34 Service Occupation Tax, Service Use Tax, Retailers'
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1 Occupation Tax or Use Tax which such serviceman may be
2 required to pay or remit to the Department, as shown by such
3 return, provided that the amount of the tax to be deducted
4 shall previously have been remitted to the Department by such
5 serviceman. If the serviceman shall not previously have
6 remitted the amount of such tax to the Department, he shall
7 be entitled to no deduction hereunder upon refunding such tax
8 to the purchaser.
9 If experience indicates such action to be practicable,
10 the Department may prescribe and furnish a combination or
11 joint return which will enable servicemen, who are required
12 to file returns hereunder and also under the Retailers'
13 Occupation Tax Act, the Use Tax Act or the Service Use Tax
14 Act, to furnish all the return information required by all
15 said Acts on the one form.
16 Where the serviceman has more than one business
17 registered with the Department under separate registrations
18 hereunder, such serviceman shall file separate returns for
19 each registered business.
20 Beginning January 1, 1990, each month the Department
21 shall pay into the Local Government Tax Fund the revenue
22 realized for the preceding month from the 1% tax on sales of
23 food for human consumption which is to be consumed off the
24 premises where it is sold (other than alcoholic beverages,
25 soft drinks and food which has been prepared for immediate
26 consumption) and prescription and nonprescription medicines,
27 drugs, medical appliances and insulin, urine testing
28 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 4%
31 of the revenue realized for the preceding month from the
32 6.25% general rate.
33 Beginning January 1, 1990, each month the Department
34 shall pay into the Local Government Tax Fund 16% of the
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1 revenue realized for the preceding month from the 6.25%
2 general rate on transfers of tangible personal property.
3 Of the remainder of the moneys received by the Department
4 pursuant to this Act, (a) 1.75% thereof shall be paid into
5 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
6 and on and after July 1, 1989, 3.8% thereof shall be paid
7 into the Build Illinois Fund; provided, however, that if in
8 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
9 as the case may be, of the moneys received by the Department
10 and required to be paid into the Build Illinois Fund pursuant
11 to Section 3 of the Retailers' Occupation Tax Act, Section 9
12 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
13 Section 9 of the Service Occupation Tax Act, such Acts being
14 hereinafter called the "Tax Acts" and such aggregate of 2.2%
15 or 3.8%, as the case may be, of moneys being hereinafter
16 called the "Tax Act Amount", and (2) the amount transferred
17 to the Build Illinois Fund from the State and Local Sales Tax
18 Reform Fund shall be less than the Annual Specified Amount
19 (as defined in Section 3 of the Retailers' Occupation Tax
20 Act), an amount equal to the difference shall be immediately
21 paid into the Build Illinois Fund from other moneys received
22 by the Department pursuant to the Tax Acts; and further
23 provided, that if on the last business day of any month the
24 sum of (1) the Tax Act Amount required to be deposited into
25 the Build Illinois Account in the Build Illinois Fund during
26 such month and (2) the amount transferred during such month
27 to the Build Illinois Fund from the State and Local Sales Tax
28 Reform Fund shall have been less than 1/12 of the Annual
29 Specified Amount, an amount equal to the difference shall be
30 immediately paid into the Build Illinois Fund from other
31 moneys received by the Department pursuant to the Tax Acts;
32 and, further provided, that in no event shall the payments
33 required under the preceding proviso result in aggregate
34 payments into the Build Illinois Fund pursuant to this clause
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1 (b) for any fiscal year in excess of the greater of (i) the
2 Tax Act Amount or (ii) the Annual Specified Amount for such
3 fiscal year; and, further provided, that the amounts payable
4 into the Build Illinois Fund under this clause (b) shall be
5 payable only until such time as the aggregate amount on
6 deposit under each trust indenture securing Bonds issued and
7 outstanding pursuant to the Build Illinois Bond Act is
8 sufficient, taking into account any future investment income,
9 to fully provide, in accordance with such indenture, for the
10 defeasance of or the payment of the principal of, premium, if
11 any, and interest on the Bonds secured by such indenture and
12 on any Bonds expected to be issued thereafter and all fees
13 and costs payable with respect thereto, all as certified by
14 the Director of the Bureau of the Budget. If on the last
15 business day of any month in which Bonds are outstanding
16 pursuant to the Build Illinois Bond Act, the aggregate of the
17 moneys deposited in the Build Illinois Bond Account in the
18 Build Illinois Fund in such month shall be less than the
19 amount required to be transferred in such month from the
20 Build Illinois Bond Account to the Build Illinois Bond
21 Retirement and Interest Fund pursuant to Section 13 of the
22 Build Illinois Bond Act, an amount equal to such deficiency
23 shall be immediately paid from other moneys received by the
24 Department pursuant to the Tax Acts to the Build Illinois
25 Fund; provided, however, that any amounts paid to the Build
26 Illinois Fund in any fiscal year pursuant to this sentence
27 shall be deemed to constitute payments pursuant to clause (b)
28 of the preceding sentence and shall reduce the amount
29 otherwise payable for such fiscal year pursuant to clause (b)
30 of the preceding sentence. The moneys received by the
31 Department pursuant to this Act and required to be deposited
32 into the Build Illinois Fund are subject to the pledge, claim
33 and charge set forth in Section 12 of the Build Illinois Bond
34 Act.
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1 Subject to payment of amounts into the Build Illinois
2 Fund as provided in the preceding paragraph or in any
3 amendment thereto hereafter enacted, the following specified
4 monthly installment of the amount requested in the
5 certificate of the Chairman of the Metropolitan Pier and
6 Exposition Authority provided under Section 8.25f of the
7 State Finance Act, but not in excess of the sums designated
8 as "Total Deposit", shall be deposited in the aggregate from
9 collections under Section 9 of the Use Tax Act, Section 9 of
10 the Service Use Tax Act, Section 9 of the Service Occupation
11 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
12 into the McCormick Place Expansion Project Fund in the
13 specified fiscal years.
14 Fiscal Year Total Deposit
15 1993 $0
16 1994 53,000,000
17 1995 58,000,000
18 1996 61,000,000
19 1997 64,000,000
20 1998 68,000,000
21 1999 71,000,000
22 2000 75,000,000
23 2001 80,000,000
24 2002 84,000,000
25 2003 89,000,000
26 2004 93,000,000
27 2005 97,000,000
28 2006 102,000,000
29 2007 and 106,000,000
30 each fiscal year
31 thereafter that bonds
32 are outstanding under
33 Section 13.2 of the
34 Metropolitan Pier and
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1 Exposition Authority
2 Act, but not after fiscal year 2029.
3 Beginning July 20, 1993 and in each month of each fiscal
4 year thereafter, one-eighth of the amount requested in the
5 certificate of the Chairman of the Metropolitan Pier and
6 Exposition Authority for that fiscal year, less the amount
7 deposited into the McCormick Place Expansion Project Fund by
8 the State Treasurer in the respective month under subsection
9 (g) of Section 13 of the Metropolitan Pier and Exposition
10 Authority Act, plus cumulative deficiencies in the deposits
11 required under this Section for previous months and years,
12 shall be deposited into the McCormick Place Expansion Project
13 Fund, until the full amount requested for the fiscal year,
14 but not in excess of the amount specified above as "Total
15 Deposit", has been deposited.
16 Subject to payment of amounts into the Build Illinois
17 Fund and the McCormick Place Expansion Project Fund pursuant
18 to the preceding paragraphs or in any amendment thereto
19 hereafter enacted, each month the Department shall pay into
20 the Local Government Distributive Fund 0.4% of the net
21 revenue realized for the preceding month from the 5% general
22 rate or 0.4% of 80% of the net revenue realized for the
23 preceding month from the 6.25% general rate, as the case may
24 be, on the selling price of tangible personal property which
25 amount shall, subject to appropriation, be distributed as
26 provided in Section 2 of the State Revenue Sharing Act. No
27 payments or distributions pursuant to this paragraph shall be
28 made if the tax imposed by this Act on photoprocessing
29 products is declared unconstitutional, or if the proceeds
30 from such tax are unavailable for distribution because of
31 litigation.
32 Subject to payment of amounts into the Build Illinois
33 Fund, the McCormick Place Expansion Project Fund, and the
34 Local Government Distributive Fund pursuant to the preceding
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1 paragraphs or in any amendments thereto hereafter enacted,
2 beginning July 1, 1993, the Department shall each month pay
3 into the Illinois Tax Increment Fund 0.27% of 80% of the net
4 revenue realized for the preceding month from the 6.25%
5 general rate on the selling price of tangible personal
6 property.
7 Remaining moneys received by the Department pursuant to
8 this Act shall be paid into the General Revenue Fund of the
9 State Treasury.
10 The Department may, upon separate written notice to a
11 taxpayer, require the taxpayer to prepare and file with the
12 Department on a form prescribed by the Department within not
13 less than 60 days after receipt of the notice an annual
14 information return for the tax year specified in the notice.
15 Such annual return to the Department shall include a
16 statement of gross receipts as shown by the taxpayer's last
17 Federal income tax return. If the total receipts of the
18 business as reported in the Federal income tax return do not
19 agree with the gross receipts reported to the Department of
20 Revenue for the same period, the taxpayer shall attach to his
21 annual return a schedule showing a reconciliation of the 2
22 amounts and the reasons for the difference. The taxpayer's
23 annual return to the Department shall also disclose the cost
24 of goods sold by the taxpayer during the year covered by such
25 return, opening and closing inventories of such goods for
26 such year, cost of goods used from stock or taken from stock
27 and given away by the taxpayer during such year, pay roll
28 information of the taxpayer's business during such year and
29 any additional reasonable information which the Department
30 deems would be helpful in determining the accuracy of the
31 monthly, quarterly or annual returns filed by such taxpayer
32 as hereinbefore provided for in this Section.
33 If the annual information return required by this Section
34 is not filed when and as required, the taxpayer shall be
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1 liable as follows:
2 (i) Until January 1, 1994, the taxpayer shall be
3 liable for a penalty equal to 1/6 of 1% of the tax due
4 from such taxpayer under this Act during the period to be
5 covered by the annual return for each month or fraction
6 of a month until such return is filed as required, the
7 penalty to be assessed and collected in the same manner
8 as any other penalty provided for in this Act.
9 (ii) On and after January 1, 1994, the taxpayer
10 shall be liable for a penalty as described in Section 3-4
11 of the Uniform Penalty and Interest Act.
12 The chief executive officer, proprietor, owner or highest
13 ranking manager shall sign the annual return to certify the
14 accuracy of the information contained therein. Any person
15 who willfully signs the annual return containing false or
16 inaccurate information shall be guilty of perjury and
17 punished accordingly. The annual return form prescribed by
18 the Department shall include a warning that the person
19 signing the return may be liable for perjury.
20 The foregoing portion of this Section concerning the
21 filing of an annual information return shall not apply to a
22 serviceman who is not required to file an income tax return
23 with the United States Government.
24 As soon as possible after the first day of each month,
25 upon certification of the Department of Revenue, the
26 Comptroller shall order transferred and the Treasurer shall
27 transfer from the General Revenue Fund to the Motor Fuel Tax
28 Fund an amount equal to 1.7% of 80% of the net revenue
29 realized under this Act for the second preceding month;
30 except that this transfer shall not be made for the months
31 February through June, 1992.
32 Net revenue realized for a month shall be the revenue
33 collected by the State pursuant to this Act, less the amount
34 paid out during that month as refunds to taxpayers for
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1 overpayment of liability.
2 For greater simplicity of administration, it shall be
3 permissible for manufacturers, importers and wholesalers
4 whose products are sold by numerous servicemen in Illinois,
5 and who wish to do so, to assume the responsibility for
6 accounting and paying to the Department all tax accruing
7 under this Act with respect to such sales, if the servicemen
8 who are affected do not make written objection to the
9 Department to this arrangement.
10 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
11 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-612, eff.
12 7-8-98.)
13 Section 25. The Retailers' Occupation Tax Act is amended
14 by changing Section 3 as follows:
15 (35 ILCS 120/3) (from Ch. 120, par. 442)
16 Sec. 3. Except as provided in this Section, on or before
17 the twentieth day of each calendar month, every person
18 engaged in the business of selling tangible personal property
19 at retail in this State during the preceding calendar month
20 shall file a return with the Department, stating:
21 1. The name of the seller;
22 2. His residence address and the address of his
23 principal place of business and the address of the
24 principal place of business (if that is a different
25 address) from which he engages in the business of selling
26 tangible personal property at retail in this State;
27 3. Total amount of receipts received by him during
28 the preceding calendar month or quarter, as the case may
29 be, from sales of tangible personal property, and from
30 services furnished, by him during such preceding calendar
31 month or quarter;
32 4. Total amount received by him during the
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1 preceding calendar month or quarter on charge and time
2 sales of tangible personal property, and from services
3 furnished, by him prior to the month or quarter for which
4 the return is filed;
5 5. Deductions allowed by law;
6 6. Gross receipts which were received by him during
7 the preceding calendar month or quarter and upon the
8 basis of which the tax is imposed;
9 7. The amount of credit provided in Section 2d of
10 this Act;
11 8. The amount of tax due;
12 9. The signature of the taxpayer; and
13 10. Such other reasonable information as the
14 Department may require.
15 If a taxpayer fails to sign a return within 30 days after
16 the proper notice and demand for signature by the Department,
17 the return shall be considered valid and any amount shown to
18 be due on the return shall be deemed assessed.
19 Each return shall be accompanied by the statement of
20 prepaid tax issued pursuant to Section 2e for which credit is
21 claimed.
22 A retailer may accept a Manufacturer's Purchase Credit
23 certification from a purchaser in satisfaction of Use Tax as
24 provided in Section 3-85 of the Use Tax Act if the purchaser
25 provides the appropriate documentation as required by Section
26 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
27 certification, accepted by a retailer as provided in Section
28 3-85 of the Use Tax Act, may be used by that retailer to
29 satisfy Retailers' Occupation Tax liability in the amount
30 claimed in the certification, not to exceed 6.25% of the
31 receipts subject to tax from a qualifying purchase.
32 The Department may require returns to be filed on a
33 quarterly basis. If so required, a return for each calendar
34 quarter shall be filed on or before the twentieth day of the
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1 calendar month following the end of such calendar quarter.
2 The taxpayer shall also file a return with the Department for
3 each of the first two months of each calendar quarter, on or
4 before the twentieth day of the following calendar month,
5 stating:
6 1. The name of the seller;
7 2. The address of the principal place of business
8 from which he engages in the business of selling tangible
9 personal property at retail in this State;
10 3. The total amount of taxable receipts received by
11 him during the preceding calendar month from sales of
12 tangible personal property by him during such preceding
13 calendar month, including receipts from charge and time
14 sales, but less all deductions allowed by law;
15 4. The amount of credit provided in Section 2d of
16 this Act;
17 5. The amount of tax due; and
18 6. Such other reasonable information as the
19 Department may require.
20 If a total amount of less than $1 is payable, refundable
21 or creditable, such amount shall be disregarded if it is less
22 than 50 cents and shall be increased to $1 if it is 50 cents
23 or more.
24 Beginning October 1, 1993, a taxpayer who has an average
25 monthly tax liability of $150,000 or more shall make all
26 payments required by rules of the Department by electronic
27 funds transfer. Beginning October 1, 1994, a taxpayer who
28 has an average monthly tax liability of $100,000 or more
29 shall make all payments required by rules of the Department
30 by electronic funds transfer. Beginning October 1, 1995, a
31 taxpayer who has an average monthly tax liability of $50,000
32 or more shall make all payments required by rules of the
33 Department by electronic funds transfer. Beginning October
34 1, 2000, a taxpayer who has an annual tax liability of
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1 $50,000 or more shall make all payments required by rules of
2 the Department by electronic funds transfer. The term
3 "annual tax liability" shall be the sum of the taxpayer's
4 liabilities under this Act, and under all other State and
5 local occupation and use tax laws administered by the
6 Department, for the immediately preceding calendar year. The
7 term "average monthly tax liability" shall be the sum of the
8 taxpayer's liabilities under this Act, and under all other
9 State and local occupation and use tax laws administered by
10 the Department, for the immediately preceding calendar year
11 divided by 12.
12 Before August 1 of each year beginning in 1993, the
13 Department shall notify all taxpayers required to make
14 payments by electronic funds transfer. All taxpayers
15 required to make payments by electronic funds transfer shall
16 make those payments for a minimum of one year beginning on
17 October 1.
18 Any taxpayer not required to make payments by electronic
19 funds transfer may make payments by electronic funds transfer
20 with the permission of the Department.
21 All taxpayers required to make payment by electronic
22 funds transfer and any taxpayers authorized to voluntarily
23 make payments by electronic funds transfer shall make those
24 payments in the manner authorized by the Department.
25 The Department shall adopt such rules as are necessary to
26 effectuate a program of electronic funds transfer and the
27 requirements of this Section.
28 Any amount which is required to be shown or reported on
29 any return or other document under this Act shall, if such
30 amount is not a whole-dollar amount, be increased to the
31 nearest whole-dollar amount in any case where the fractional
32 part of a dollar is 50 cents or more, and decreased to the
33 nearest whole-dollar amount where the fractional part of a
34 dollar is less than 50 cents.
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1 If the retailer is otherwise required to file a monthly
2 return and if the retailer's average monthly tax liability to
3 the Department does not exceed $200, the Department may
4 authorize his returns to be filed on a quarter annual basis,
5 with the return for January, February and March of a given
6 year being due by April 20 of such year; with the return for
7 April, May and June of a given year being due by July 20 of
8 such year; with the return for July, August and September of
9 a given year being due by October 20 of such year, and with
10 the return for October, November and December of a given year
11 being due by January 20 of the following year.
12 If the retailer is otherwise required to file a monthly
13 or quarterly return and if the retailer's average monthly tax
14 liability with the Department does not exceed $50, the
15 Department may authorize his returns to be filed on an annual
16 basis, with the return for a given year being due by January
17 20 of the following year.
18 Such quarter annual and annual returns, as to form and
19 substance, shall be subject to the same requirements as
20 monthly returns.
21 Notwithstanding any other provision in this Act
22 concerning the time within which a retailer may file his
23 return, in the case of any retailer who ceases to engage in a
24 kind of business which makes him responsible for filing
25 returns under this Act, such retailer shall file a final
26 return under this Act with the Department not more than one
27 month after discontinuing such business.
28 Where the same person has more than one business
29 registered with the Department under separate registrations
30 under this Act, such person may not file each return that is
31 due as a single return covering all such registered
32 businesses, but shall file separate returns for each such
33 registered business.
34 In addition, with respect to motor vehicles, watercraft,
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1 aircraft, and trailers that are required to be registered
2 with an agency of this State, every retailer selling this
3 kind of tangible personal property shall file, with the
4 Department, upon a form to be prescribed and supplied by the
5 Department, a separate return for each such item of tangible
6 personal property which the retailer sells, except that
7 where, in the same transaction, a retailer of aircraft,
8 watercraft, motor vehicles or trailers transfers more than
9 one aircraft, watercraft, motor vehicle or trailer to another
10 aircraft, watercraft, motor vehicle retailer or trailer
11 retailer for the purpose of resale, that seller for resale
12 may report the transfer of all aircraft, watercraft, motor
13 vehicles or trailers involved in that transaction to the
14 Department on the same uniform invoice-transaction reporting
15 return form. For purposes of this Section, "watercraft"
16 means a Class 2, Class 3, or Class 4 watercraft as defined in
17 Section 3-2 of the Boat Registration and Safety Act, a
18 personal watercraft, or any boat equipped with an inboard
19 motor.
20 Any retailer who sells only motor vehicles, watercraft,
21 aircraft, or trailers that are required to be registered with
22 an agency of this State, so that all retailers' occupation
23 tax liability is required to be reported, and is reported, on
24 such transaction reporting returns and who is not otherwise
25 required to file monthly or quarterly returns, need not file
26 monthly or quarterly returns. However, those retailers shall
27 be required to file returns on an annual basis.
28 The transaction reporting return, in the case of motor
29 vehicles or trailers that are required to be registered with
30 an agency of this State, shall be the same document as the
31 Uniform Invoice referred to in Section 5-402 of The Illinois
32 Vehicle Code and must show the name and address of the
33 seller; the name and address of the purchaser; the amount of
34 the selling price including the amount allowed by the
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1 retailer for traded-in property, if any; the amount allowed
2 by the retailer for the traded-in tangible personal property,
3 if any, to the extent to which Section 1 of this Act allows
4 an exemption for the value of traded-in property; the balance
5 payable after deducting such trade-in allowance from the
6 total selling price; the amount of tax due from the retailer
7 with respect to such transaction; the amount of tax collected
8 from the purchaser by the retailer on such transaction (or
9 satisfactory evidence that such tax is not due in that
10 particular instance, if that is claimed to be the fact); the
11 place and date of the sale; a sufficient identification of
12 the property sold; such other information as is required in
13 Section 5-402 of The Illinois Vehicle Code, and such other
14 information as the Department may reasonably require.
15 The transaction reporting return in the case of
16 watercraft or aircraft 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, and such other information as the
31 Department may reasonably require.
32 Such transaction reporting return shall be filed not
33 later than 20 days after the day of delivery of the item that
34 is being sold, but may be filed by the retailer at any time
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1 sooner than that if he chooses to do so. The transaction
2 reporting return and tax remittance or proof of exemption
3 from the Illinois use tax may be transmitted to the
4 Department by way of the State agency with which, or State
5 officer with whom the tangible personal property must be
6 titled or registered (if titling or registration is required)
7 if the Department and such agency or State officer determine
8 that this procedure will expedite the processing of
9 applications for title or registration.
10 With each such transaction reporting return, the retailer
11 shall remit the proper amount of tax due (or shall submit
12 satisfactory evidence that the sale is not taxable if that is
13 the case), to the Department or its agents, whereupon the
14 Department shall issue, in the purchaser's name, a use tax
15 receipt (or a certificate of exemption if the Department is
16 satisfied that the particular sale is tax exempt) which such
17 purchaser may submit to the agency with which, or State
18 officer with whom, he must title or register the tangible
19 personal property that is involved (if titling or
20 registration is required) in support of such purchaser's
21 application for an Illinois certificate or other evidence of
22 title or registration to such tangible personal property.
23 No retailer's failure or refusal to remit tax under this
24 Act precludes a user, who has paid the proper tax to the
25 retailer, from obtaining his certificate of title or other
26 evidence of title or registration (if titling or registration
27 is required) upon satisfying the Department that such user
28 has paid the proper tax (if tax is due) to the retailer. The
29 Department shall adopt appropriate rules to carry out the
30 mandate of this paragraph.
31 If the user who would otherwise pay tax to the retailer
32 wants the transaction reporting return filed and the payment
33 of the tax or proof of exemption made to the Department
34 before the retailer is willing to take these actions and such
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1 user has not paid the tax to the retailer, such user may
2 certify to the fact of such delay by the retailer and may
3 (upon the Department being satisfied of the truth of such
4 certification) transmit the information required by the
5 transaction reporting return and the remittance for tax or
6 proof of exemption directly to the Department and obtain his
7 tax receipt or exemption determination, in which event the
8 transaction reporting return and tax remittance (if a tax
9 payment was required) shall be credited by the Department to
10 the proper retailer's account with the Department, but
11 without the 2.1% or 1.75% discount provided for in this
12 Section being allowed. When the user pays the tax directly
13 to the Department, he shall pay the tax in the same amount
14 and in the same form in which it would be remitted if the tax
15 had been remitted to the Department by the retailer.
16 Refunds made by the seller during the preceding return
17 period to purchasers, on account of tangible personal
18 property returned to the seller, shall be allowed as a
19 deduction under subdivision 5 of his monthly or quarterly
20 return, as the case may be, in case the seller had
21 theretofore included the receipts from the sale of such
22 tangible personal property in a return filed by him and had
23 paid the tax imposed by this Act with respect to such
24 receipts.
25 Where the seller is a corporation, the return filed on
26 behalf of such corporation shall be signed by the president,
27 vice-president, secretary or treasurer or by the properly
28 accredited agent of such corporation.
29 Where the seller is a limited liability company, the
30 return filed on behalf of the limited liability company shall
31 be signed by a manager, member, or properly accredited agent
32 of the limited liability company.
33 Except as provided in this Section, the retailer filing
34 the return under this Section shall, at the time of filing
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1 such return, pay to the Department the amount of tax imposed
2 by this Act less a discount of 2.1% prior to January 1, 1990
3 and 1.75% on and after January 1, 1990, or $5 per calendar
4 year, whichever is greater, which is allowed to reimburse the
5 retailer for the expenses incurred in keeping records,
6 preparing and filing returns, remitting the tax and supplying
7 data to the Department on request. Any prepayment made
8 pursuant to Section 2d of this Act shall be included in the
9 amount on which such 2.1% or 1.75% discount is computed. In
10 the case of retailers who report and pay the tax on a
11 transaction by transaction basis, as provided in this
12 Section, such discount shall be taken with each such tax
13 remittance instead of when such retailer files his periodic
14 return.
15 Before October 1, 2000, if the taxpayer's average monthly
16 tax liability to the Department under this Act, the Use Tax
17 Act, the Service Occupation Tax Act, and the Service Use Tax
18 Act, excluding any liability for prepaid sales tax to be
19 remitted in accordance with Section 2d of this Act, was
20 $10,000 or more during the preceding 4 complete calendar
21 quarters, he shall file a return with the Department each
22 month by the 20th day of the month next following the month
23 during which such tax liability is incurred and shall make
24 payments to the Department on or before the 7th, 15th, 22nd
25 and last day of the month during which such liability is
26 incurred. On and after October 1, 2000, if the taxpayer's
27 average monthly tax liability to the Department under this
28 Act, the Use Tax Act, the Service Occupation Tax Act, and the
29 Service Use Tax Act, excluding any liability for prepaid
30 sales tax to be remitted in accordance with Section 2d of
31 this Act, was $25,000 or more during the preceding 4 complete
32 calendar quarters, he shall file a return with the Department
33 each month by the 20th day of the month next following the
34 month during which such tax liability is incurred and shall
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1 make payment to the Department on or before the 7th, 15th,
2 22nd and last day of the month during which such liability is
3 incurred. If the month during which such tax liability is
4 incurred began prior to January 1, 1985, each payment shall
5 be in an amount equal to 1/4 of the taxpayer's actual
6 liability for the month or an amount set by the Department
7 not to exceed 1/4 of the average monthly liability of the
8 taxpayer to the Department for the preceding 4 complete
9 calendar quarters (excluding the month of highest liability
10 and the month of lowest liability in such 4 quarter period).
11 If the month during which such tax liability is incurred
12 begins on or after January 1, 1985 and prior to January 1,
13 1987, each payment shall be in an amount equal to 22.5% of
14 the taxpayer's actual liability for the month or 27.5% of the
15 taxpayer's liability for the same calendar month of the
16 preceding year. If the month during which such tax liability
17 is incurred begins on or after January 1, 1987 and prior to
18 January 1, 1988, each payment shall be in an amount equal to
19 22.5% of the taxpayer's actual liability for the month or
20 26.25% of the taxpayer's liability for the same calendar
21 month of the preceding year. If the month during which such
22 tax liability is incurred begins on or after January 1, 1988,
23 and prior to January 1, 1989, or begins on or after January
24 1, 1996, each payment shall be in an amount equal to 22.5% of
25 the taxpayer's actual liability for the month or 25% of the
26 taxpayer's liability for the same calendar month of the
27 preceding year. If the month during which such tax liability
28 is incurred begins on or after January 1, 1989, and prior to
29 January 1, 1996, each payment shall be in an amount equal to
30 22.5% of the taxpayer's actual liability for the month or 25%
31 of the taxpayer's liability for the same calendar month of
32 the preceding year or 100% of the taxpayer's actual liability
33 for the quarter monthly reporting period. The amount of such
34 quarter monthly payments shall be credited against the final
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1 tax liability of the taxpayer's return for that month.
2 Before October 1, 2000, once applicable, the requirement of
3 the making of quarter monthly payments to the Department by
4 taxpayers having an average monthly tax liability of $10,000
5 or more as determined in the manner provided above shall
6 continue until such taxpayer's average monthly liability to
7 the Department during the preceding 4 complete calendar
8 quarters (excluding the month of highest liability and the
9 month of lowest liability) is less than $9,000, or until such
10 taxpayer's average monthly liability to the Department as
11 computed for each calendar quarter of the 4 preceding
12 complete calendar quarter period is less than $10,000.
13 However, if a taxpayer can show the Department that a
14 substantial change in the taxpayer's business has occurred
15 which causes the taxpayer to anticipate that his average
16 monthly tax liability for the reasonably foreseeable future
17 will fall below the $10,000 threshold stated above, then such
18 taxpayer may petition the Department for a change in such
19 taxpayer's reporting status. On and after October 1, 2000,
20 once applicable, the requirement of the making of quarter
21 monthly payments to the Department by taxpayers having an
22 average monthly tax liability of $25,000 or more as
23 determined in the manner provided above shall continue until
24 such taxpayer's average monthly liability to the Department
25 during the preceding 4 complete calendar quarters (excluding
26 the month of highest liability and the month of lowest
27 liability) is less than $24,000 or until such taxpayer's
28 average monthly liability to the Department as computed for
29 each calendar quarter of the 4 preceding complete calendar
30 quarter period is less than $25,000. However, if a taxpayer
31 can show the Department that a substantial change in the
32 taxpayer's business has occurred which causes the taxpayer to
33 anticipate that his average monthly tax liability for the
34 reasonably foreseeable future will fall below the $25,000
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1 threshold stated above, then such taxpayer may petition the
2 Department for a change in such taxpayer's reporting status.
3 The Department shall change such taxpayer's reporting status
4 unless it finds that such change is seasonal in nature and
5 not likely to be long term. If any such quarter monthly
6 payment is not paid at the time or in the amount required by
7 this Section, then the taxpayer shall be liable for penalties
8 and interest on the difference between the minimum amount due
9 as a payment and the amount of such quarter monthly payment
10 actually and timely paid, except insofar as the taxpayer has
11 previously made payments for that month to the Department in
12 excess of the minimum payments previously due as provided in
13 this Section. The Department shall make reasonable rules and
14 regulations to govern the quarter monthly payment amount and
15 quarter monthly payment dates for taxpayers who file on other
16 than a calendar monthly basis.
17 Without regard to whether a taxpayer is required to make
18 quarter monthly payments as specified above, any taxpayer who
19 is required by Section 2d of this Act to collect and remit
20 prepaid taxes and has collected prepaid taxes which average
21 in excess of $25,000 per month during the preceding 2
22 complete calendar quarters, shall file a return with the
23 Department as required by Section 2f and shall make payments
24 to the Department on or before the 7th, 15th, 22nd and last
25 day of the month during which such liability is incurred. If
26 the month during which such tax liability is incurred began
27 prior to the effective date of this amendatory Act of 1985,
28 each payment shall be in an amount not less than 22.5% of the
29 taxpayer's actual liability under Section 2d. If the month
30 during which such tax liability is incurred begins on or
31 after January 1, 1986, each payment shall be in an amount
32 equal to 22.5% of the taxpayer's actual liability for the
33 month or 27.5% of the taxpayer's liability for the same
34 calendar month of the preceding calendar year. If the month
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1 during which such tax liability is incurred begins on or
2 after January 1, 1987, each payment shall be in an amount
3 equal to 22.5% of the taxpayer's actual liability for the
4 month or 26.25% of the taxpayer's liability for the same
5 calendar month of the preceding year. The amount of such
6 quarter monthly payments shall be credited against the final
7 tax liability of the taxpayer's return for that month filed
8 under this Section or Section 2f, as the case may be. Once
9 applicable, the requirement of the making of quarter monthly
10 payments to the Department pursuant to this paragraph shall
11 continue until such taxpayer's average monthly prepaid tax
12 collections during the preceding 2 complete calendar quarters
13 is $25,000 or less. If any such quarter monthly payment is
14 not paid at the time or in the amount required, the taxpayer
15 shall be liable for penalties and interest on such
16 difference, except insofar as the taxpayer has previously
17 made payments for that month in excess of the minimum
18 payments previously due.
19 If any payment provided for in this Section exceeds the
20 taxpayer's liabilities under this Act, the Use Tax Act, the
21 Service Occupation Tax Act and the Service Use Tax Act, as
22 shown on an original monthly return, the Department shall, if
23 requested by the taxpayer, issue to the taxpayer a credit
24 memorandum no later than 30 days after the date of payment.
25 The credit evidenced by such credit memorandum may be
26 assigned by the taxpayer to a similar taxpayer under this
27 Act, the Use Tax Act, the Service Occupation Tax Act or the
28 Service Use Tax Act, in accordance with reasonable rules and
29 regulations to be prescribed by the Department. If no such
30 request is made, the taxpayer may credit such excess payment
31 against tax liability subsequently to be remitted to the
32 Department under this Act, the Use Tax Act, the Service
33 Occupation Tax Act or the Service Use Tax Act, in accordance
34 with reasonable rules and regulations prescribed by the
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1 Department. If the Department subsequently determined that
2 all or any part of the credit taken was not actually due to
3 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
4 shall be reduced by 2.1% or 1.75% of the difference between
5 the credit taken and that actually due, and that taxpayer
6 shall be liable for penalties and interest on such
7 difference.
8 If a retailer of motor fuel is entitled to a credit under
9 Section 2d of this Act which exceeds the taxpayer's liability
10 to the Department under this Act for the month which the
11 taxpayer is filing a return, the Department shall issue the
12 taxpayer a credit memorandum for the excess.
13 Beginning January 1, 1990, each month the Department
14 shall pay into the Local Government Tax Fund, a special fund
15 in the State treasury which is hereby created, the net
16 revenue realized for the preceding month from the 1% tax on
17 sales of food for human consumption which is to be consumed
18 off the premises where it is sold (other than alcoholic
19 beverages, soft drinks and food which has been prepared for
20 immediate consumption) and prescription and nonprescription
21 medicines, drugs, medical appliances and insulin, urine
22 testing 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, a
25 special fund in the State treasury which is hereby created,
26 4% of the net revenue realized for the preceding month from
27 the 6.25% general rate.
28 Beginning January 1, 1990, each month the Department
29 shall pay into the Local Government Tax Fund 16% of the net
30 revenue realized for the preceding month from the 6.25%
31 general rate on the selling price of tangible personal
32 property.
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
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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 93,000,000
3 2005 97,000,000
4 2006 102,000,000
5 2007 and 106,000,000
6 each fiscal year
7 thereafter that bonds
8 are outstanding under
9 Section 13.2 of the
10 Metropolitan Pier and
11 Exposition Authority
12 Act, but not after fiscal year 2029.
13 Beginning July 20, 1993 and in each month of each fiscal
14 year thereafter, one-eighth of the amount requested in the
15 certificate of the Chairman of the Metropolitan Pier and
16 Exposition Authority for that fiscal year, less the amount
17 deposited into the McCormick Place Expansion Project Fund by
18 the State Treasurer in the respective month under subsection
19 (g) of Section 13 of the Metropolitan Pier and Exposition
20 Authority Act, plus cumulative deficiencies in the deposits
21 required under this Section for previous months and years,
22 shall be deposited into the McCormick Place Expansion Project
23 Fund, until the full amount requested for the fiscal year,
24 but not in excess of the amount specified above as "Total
25 Deposit", has been deposited.
26 Subject to payment of amounts into the Build Illinois
27 Fund and the McCormick Place Expansion Project Fund pursuant
28 to the preceding paragraphs or in any amendment thereto
29 hereafter enacted, each month the Department shall pay into
30 the Local Government Distributive Fund 0.4% of the net
31 revenue realized for the preceding month from the 5% general
32 rate or 0.4% of 80% of the net revenue realized for the
33 preceding month from the 6.25% general rate, as the case may
34 be, on the selling price of tangible personal property which
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1 amount shall, subject to appropriation, be distributed as
2 provided in Section 2 of the State Revenue Sharing Act. No
3 payments or distributions pursuant to this paragraph shall be
4 made if the tax imposed by this Act on photoprocessing
5 products is declared unconstitutional, or if the proceeds
6 from such tax are unavailable for distribution because of
7 litigation.
8 Subject to payment of amounts into the Build Illinois
9 Fund, the McCormick Place Expansion Project to the preceding
10 paragraphs or in any amendments thereto hereafter enacted,
11 beginning July 1, 1993, the Department shall each month pay
12 into the Illinois Tax Increment Fund 0.27% of 80% of the net
13 revenue realized for the preceding month from the 6.25%
14 general rate on the selling price of tangible personal
15 property.
16 Of the remainder of the moneys received by the Department
17 pursuant to this Act, 75% thereof shall be paid into the
18 State Treasury and 25% shall be reserved in a special account
19 and used only for the transfer to the Common School Fund as
20 part of the monthly transfer from the General Revenue Fund in
21 accordance with Section 8a of the State Finance Act.
22 The Department may, upon separate written notice to a
23 taxpayer, require the taxpayer to prepare and file with the
24 Department on a form prescribed by the Department within not
25 less than 60 days after receipt of the notice an annual
26 information return for the tax year specified in the notice.
27 Such annual return to the Department shall include a
28 statement of gross receipts as shown by the retailer's last
29 Federal income tax return. If the total receipts of the
30 business as reported in the Federal income tax return do not
31 agree with the gross receipts reported to the Department of
32 Revenue for the same period, the retailer shall attach to his
33 annual return a schedule showing a reconciliation of the 2
34 amounts and the reasons for the difference. The retailer's
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1 annual return to the Department shall also disclose the cost
2 of goods sold by the retailer during the year covered by such
3 return, opening and closing inventories of such goods for
4 such year, costs of goods used from stock or taken from stock
5 and given away by the retailer during such year, payroll
6 information of the retailer's business during such year and
7 any additional reasonable information which the Department
8 deems would be helpful in determining the accuracy of the
9 monthly, quarterly or annual returns filed by such retailer
10 as provided for in this Section.
11 If the annual information return required by this Section
12 is not filed when and as required, the taxpayer shall be
13 liable as follows:
14 (i) Until January 1, 1994, the taxpayer shall be
15 liable for a penalty equal to 1/6 of 1% of the tax due
16 from such taxpayer under this Act during the period to be
17 covered by the annual return for each month or fraction
18 of a month until such return is filed as required, the
19 penalty to be assessed and collected in the same manner
20 as any other penalty provided for in this Act.
21 (ii) On and after January 1, 1994, the taxpayer
22 shall be liable for a penalty as described in Section 3-4
23 of the Uniform Penalty and Interest Act.
24 The chief executive officer, proprietor, owner or highest
25 ranking manager shall sign the annual return to certify the
26 accuracy of the information contained therein. Any person
27 who willfully signs the annual return containing false or
28 inaccurate information shall be guilty of perjury and
29 punished accordingly. The annual return form prescribed by
30 the Department shall include a warning that the person
31 signing the return may be liable for perjury.
32 The provisions of this Section concerning the filing of
33 an annual information return do not apply to a retailer who
34 is not required to file an income tax return with the United
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1 States Government.
2 As soon as possible after the first day of each month,
3 upon certification of the Department of Revenue, the
4 Comptroller shall order transferred and the Treasurer shall
5 transfer from the General Revenue Fund to the Motor Fuel Tax
6 Fund an amount equal to 1.7% of 80% of the net revenue
7 realized under this Act for the second preceding month;
8 except that this transfer shall not be made for the months
9 February through June, 1992.
10 Net revenue realized for a month shall be the revenue
11 collected by the State pursuant to this Act, less the amount
12 paid out during that month as refunds to taxpayers for
13 overpayment of liability.
14 For greater simplicity of administration, manufacturers,
15 importers and wholesalers whose products are sold at retail
16 in Illinois by numerous retailers, and who wish to do so, may
17 assume the responsibility for accounting and paying to the
18 Department all tax accruing under this Act with respect to
19 such sales, if the retailers who are affected do not make
20 written objection to the Department to this arrangement.
21 Any person who promotes, organizes, provides retail
22 selling space for concessionaires or other types of sellers
23 at the Illinois State Fair, DuQuoin State Fair, county fairs,
24 local fairs, art shows, flea markets and similar exhibitions
25 or events, including any transient merchant as defined by
26 Section 2 of the Transient Merchant Act of 1987, is required
27 to file a report with the Department providing the name of
28 the merchant's business, the name of the person or persons
29 engaged in merchant's business, the permanent address and
30 Illinois Retailers Occupation Tax Registration Number of the
31 merchant, the dates and location of the event and other
32 reasonable information that the Department may require. The
33 report must be filed not later than the 20th day of the month
34 next following the month during which the event with retail
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1 sales was held. Any person who fails to file a report
2 required by this Section commits a business offense and is
3 subject to a fine not to exceed $250.
4 Any person engaged in the business of selling tangible
5 personal property at retail as a concessionaire or other type
6 of seller at the Illinois State Fair, county fairs, art
7 shows, flea markets and similar exhibitions or events, or any
8 transient merchants, as defined by Section 2 of the Transient
9 Merchant Act of 1987, may be required to make a daily report
10 of the amount of such sales to the Department and to make a
11 daily payment of the full amount of tax due. The Department
12 shall impose this requirement when it finds that there is a
13 significant risk of loss of revenue to the State at such an
14 exhibition or event. Such a finding shall be based on
15 evidence that a substantial number of concessionaires or
16 other sellers who are not residents of Illinois will be
17 engaging in the business of selling tangible personal
18 property at retail at the exhibition or event, or other
19 evidence of a significant risk of loss of revenue to the
20 State. The Department shall notify concessionaires and other
21 sellers affected by the imposition of this requirement. In
22 the absence of notification by the Department, the
23 concessionaires and other sellers shall file their returns as
24 otherwise required in this Section.
25 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
26 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff.
27 1-1-99; 90-612, eff. 7-8-98.)
28 Section 30. The Telecommunications Excise Tax Act is
29 amended by changing Section 6 as follows:
30 (35 ILCS 630/6) (from Ch. 120, par. 2006)
31 Sec. 6. Except as provided hereinafter in this Section,
32 on or before the 15th day of each month each retailer
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1 maintaining a place of business in this State shall make a
2 return to the Department for the preceding calendar month,
3 stating:
4 1. His name;
5 2. The address of his principal place of business,
6 and the address of the principal place of business (if
7 that is a different address) from which he engages in the
8 business of transmitting telecommunications;
9 3. Total amount of gross charges billed by him
10 during the preceding calendar month for providing
11 telecommunications during such calendar month;
12 4. Total amount received by him during the
13 preceding calendar month on credit extended;
14 5. Deductions allowed by law;
15 6. Gross charges which were billed by him during
16 the preceding calendar month and upon the basis of which
17 the tax is imposed;
18 7. Amount of tax (computed upon Item 6);
19 8. Such other reasonable information as the
20 Department may require.
21 Any taxpayer required to make payments under this Section
22 may make the payments by electronic funds transfer. The
23 Department shall adopt rules necessary to effectuate a
24 program of electronic funds transfer.
25 If the retailer's average monthly tax billings due to the
26 Department do not exceed $200 $100, the Department may
27 authorize his returns to be filed on a quarter annual basis,
28 with the return for January, February and March of a given
29 year being due by April 15 of such year; with the return for
30 April, May and June of a given year being due by July 15 of
31 such year; with the return for July, August and September of
32 a given year being due by October 15 of such year; and with
33 the return of October, November and December of a given year
34 being due by January 15 of the following year.
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1 If the retailer is otherwise required to file a monthly
2 or quarterly return and if the retailer's average monthly tax
3 billings due to the Department do not exceed $50, the
4 Department may authorize his or her return to be filed on an
5 annual basis, with the return for a given year being due by
6 January 15th of the following year.
7 Notwithstanding any other provision of this Article
8 containing the time within which a retailer may file his
9 return, in the case of any retailer who ceases to engage in a
10 kind of business which makes him responsible for filing
11 returns under this Article, such retailer shall file a final
12 return under this Article with the Department not more than
13 one month after discontinuing such business.
14 In making such return, the retailer shall determine the
15 value of any consideration other than money received by him
16 and he shall include such value in his return. Such
17 determination shall be subject to review and revision by the
18 Department in the manner hereinafter provided for the
19 correction of returns.
20 Each retailer whose average monthly liability to the
21 Department under this Article was $10,000 or more during the
22 preceding calendar year, excluding the month of highest
23 liability and the month of lowest liability in such calendar
24 year, and who is not operated by a unit of local government,
25 shall make estimated payments to the Department on or before
26 the 7th, 15th, 22nd and last day of the month during which
27 tax collection liability to the Department is incurred in an
28 amount not less than the lower of either 22.5% of the
29 retailer's actual tax collections for the month or 25% of the
30 retailer's actual tax collections for the same calendar month
31 of the preceding year. The amount of such quarter monthly
32 payments shall be credited against the final liability of the
33 retailer's return for that month. Any outstanding credit,
34 approved by the Department, arising from the retailer's
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1 overpayment of its final liability for any month may be
2 applied to reduce the amount of any subsequent quarter
3 monthly payment or credited against the final liability of
4 the retailer's return for any subsequent month. If any
5 quarter monthly payment is not paid at the time or in the
6 amount required by this Section, the retailer shall be liable
7 for penalty and interest on the difference between the
8 minimum amount due as a payment and the amount of such
9 payment actually and timely paid, except insofar as the
10 retailer has previously made payments for that month to the
11 Department in excess of the minimum payments previously due.
12 If the Director finds that the information required for
13 the making of an accurate return cannot reasonably be
14 compiled by a retailer within 15 days after the close of the
15 calendar month for which a return is to be made, he may grant
16 an extension of time for the filing of such return for a
17 period of not to exceed 31 calendar days. The granting of
18 such an extension may be conditioned upon the deposit by the
19 retailer with the Department of an amount of money not
20 exceeding the amount estimated by the Director to be due with
21 the return so extended. All such deposits, including any
22 heretofore made with the Department, shall be credited
23 against the retailer's liabilities under this Article. If
24 any such deposit exceeds the retailer's present and probable
25 future liabilities under this Article, the Department shall
26 issue to the retailer a credit memorandum, which may be
27 assigned by the retailer to a similar retailer under this
28 Article, in accordance with reasonable rules and regulations
29 to be prescribed by the Department.
30 The retailer making the return herein provided for shall,
31 at the time of making such return, pay to the Department the
32 amount of tax herein imposed. On and after the effective date
33 of this Article of 1985, $1,000,000 of the moneys received by
34 the Department of Revenue pursuant to this Article shall be
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1 paid each month into the Common School Fund and the remainder
2 into the General Revenue Fund. On and after February 1, 1998,
3 however, of the moneys received by the Department of Revenue
4 pursuant to the additional taxes imposed by this amendatory
5 Act of 1997 one-half shall be deposited into the School
6 Infrastructure Fund and one-half shall be deposited into the
7 Common School Fund.
8 (Source: P.A. 90-16, eff. 6-16-97; 90-548, eff. 12-4-97.)
9 Section 99. Effective date. This Act takes effect upon
10 becoming law.
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1 INDEX
2 Statutes amended in order of appearance
3 35 ILCS 5/203 from Ch. 120, par. 2-203
4 35 ILCS 5/207 from Ch. 120, par. 2-207
5 35 ILCS 5/405 new
6 35 ILCS 5/502 from Ch. 120, par. 5-502
7 35 ILCS 5/601.1 Ch. 120, par. 6-601.1
8 35 ILCS 5/905 from Ch. 120, par. 9-905
9 35 ILCS 5/911 from Ch. 120, par. 9-911
10 35 ILCS 105/9 from Ch. 120, par. 439.9
11 35 ILCS 105/10 from Ch. 120, par. 439.10
12 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
13 35 ILCS 110/9 from Ch. 120, par. 439.39
14 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
15 35 ILCS 115/9 from Ch. 120, par. 439.109
16 35 ILCS 120/3 from Ch. 120, par. 442
17 35 ILCS 630/6 from Ch. 120, par. 2006