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91_SB1453ham001
LRB9111084SMdvam04
1 AMENDMENT TO SENATE BILL 1453
2 AMENDMENT NO. . Amend Senate Bill 1453 by replacing
3 the title with the following:
4 "AN ACT concerning taxation."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Department of Revenue Law of the Civil
8 Administrative Code of Illinois is amended by adding Section
9 2505-710 as follows:
10 (20 ILCS 2505/2505-710 new)
11 Sec. 2505-710. Occupation and Use Tax Reporting and
12 Simplification Committee and report. The Department is
13 authorized and empowered to convene an Occupation and Use Tax
14 Reporting and Simplification Committee for the purpose of
15 reviewing proposed methods for simplifying Illinois
16 occupation and use tax reporting requirements. The Committee
17 shall consist of the Director or such person or persons as he
18 or she may designate, 3 representatives of the business
19 community appointed by the Director, and 3 representatives of
20 local government appointed by the Director. The Committee so
21 assembled shall study methods for simplifying occupation and
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1 use tax reporting requirements in general and, in particular,
2 shall review the feasibility of reducing the number of
3 occupation and use tax returns required to be filed each
4 taxable year. The Committee shall submit a report of its
5 findings to the General Assembly on or before January 1,
6 2001.
7 Section 10. The Use Tax Act is amended by changing
8 Sections 3-5, 9, 10, and 22 as follows:
9 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
10 Sec. 3-5. Exemptions. Use of the following tangible
11 personal property is exempt from the tax imposed by this Act:
12 (1) Personal property purchased from a corporation,
13 society, association, foundation, institution, or
14 organization, other than a limited liability company, that is
15 organized and operated as a not-for-profit service enterprise
16 for the benefit of persons 65 years of age or older if the
17 personal property was not purchased by the enterprise for the
18 purpose of resale by the enterprise.
19 (2) Personal property purchased by a not-for-profit
20 Illinois county fair association for use in conducting,
21 operating, or promoting the county fair.
22 (3) Personal property purchased by a not-for-profit arts
23 or cultural organization that establishes, by proof required
24 by the Department by rule, that it has received an exemption
25 under Section 501(c)(3) of the Internal Revenue Code and that
26 is organized and operated for the presentation or support of
27 arts or cultural programming, activities, or services. These
28 organizations include, but are not limited to, music and
29 dramatic arts organizations such as symphony orchestras and
30 theatrical groups, arts and cultural service organizations,
31 local arts councils, visual arts organizations, and media
32 arts organizations.
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1 (4) Personal property purchased by a governmental body,
2 by a corporation, society, association, foundation, or
3 institution organized and operated exclusively for
4 charitable, religious, or educational purposes, or by a
5 not-for-profit corporation, society, association, foundation,
6 institution, or organization that has no compensated officers
7 or employees and that is organized and operated primarily for
8 the recreation of persons 55 years of age or older. A limited
9 liability company may qualify for the exemption under this
10 paragraph only if the limited liability company is organized
11 and operated exclusively for educational purposes. On and
12 after July 1, 1987, however, no entity otherwise eligible for
13 this exemption shall make tax-free purchases unless it has an
14 active exemption identification number issued by the
15 Department.
16 (5) A passenger car that is a replacement vehicle to the
17 extent that the purchase price of the car is subject to the
18 Replacement Vehicle Tax.
19 (6) Graphic arts machinery and equipment, including
20 repair and replacement parts, both new and used, and
21 including that manufactured on special order, certified by
22 the purchaser to be used primarily for graphic arts
23 production, and including machinery and equipment purchased
24 for lease.
25 (7) Farm chemicals.
26 (8) Legal tender, currency, medallions, or gold or
27 silver coinage issued by the State of Illinois, the
28 government of the United States of America, or the government
29 of any foreign country, and bullion.
30 (9) Personal property purchased from a teacher-sponsored
31 student organization affiliated with an elementary or
32 secondary school located in Illinois.
33 (10) A motor vehicle of the first division, a motor
34 vehicle of the second division that is a self-contained motor
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1 vehicle designed or permanently converted to provide living
2 quarters for recreational, camping, or travel use, with
3 direct walk through to the living quarters from the driver's
4 seat, or a motor vehicle of the second division that is of
5 the van configuration designed for the transportation of not
6 less than 7 nor more than 16 passengers, as defined in
7 Section 1-146 of the Illinois Vehicle Code, that is used for
8 automobile renting, as defined in the Automobile Renting
9 Occupation and Use Tax Act.
10 (11) Farm machinery and equipment, both new and used,
11 including that manufactured on special order, certified by
12 the purchaser to be used primarily for production agriculture
13 or State or federal agricultural programs, including
14 individual replacement parts for the machinery and equipment,
15 including machinery and equipment purchased for lease, and
16 including implements of husbandry defined in Section 1-130 of
17 the Illinois Vehicle Code, farm machinery and agricultural
18 chemical and fertilizer spreaders, and nurse wagons required
19 to be registered under Section 3-809 of the Illinois Vehicle
20 Code, but excluding other motor vehicles required to be
21 registered under the Illinois Vehicle Code. Horticultural
22 polyhouses or hoop houses used for propagating, growing, or
23 overwintering plants shall be considered farm machinery and
24 equipment under this item (11). Agricultural chemical tender
25 tanks and dry boxes shall include units sold separately from
26 a motor vehicle required to be licensed and units sold
27 mounted on a motor vehicle required to be licensed if the
28 selling price of the tender is separately stated.
29 Farm machinery and equipment shall include precision
30 farming equipment that is installed or purchased to be
31 installed on farm machinery and equipment including, but not
32 limited to, tractors, harvesters, sprayers, planters,
33 seeders, or spreaders. Precision farming equipment includes,
34 but is not limited to, soil testing sensors, computers,
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1 monitors, software, global positioning and mapping systems,
2 and other such equipment.
3 Farm machinery and equipment also includes computers,
4 sensors, software, and related equipment used primarily in
5 the computer-assisted operation of production agriculture
6 facilities, equipment, and activities such as, but not
7 limited to, the collection, monitoring, and correlation of
8 animal and crop data for the purpose of formulating animal
9 diets and agricultural chemicals. This item (11) is exempt
10 from the provisions of Section 3-90.
11 (12) Fuel and petroleum products sold to or used by an
12 air common carrier, certified by the carrier to be used for
13 consumption, shipment, or storage in the conduct of its
14 business as an air common carrier, for a flight destined for
15 or returning from a location or locations outside the United
16 States without regard to previous or subsequent domestic
17 stopovers.
18 (13) Proceeds of mandatory service charges separately
19 stated on customers' bills for the purchase and consumption
20 of food and beverages purchased at retail from a retailer, to
21 the extent that the proceeds of the service charge are in
22 fact turned over as tips or as a substitute for tips to the
23 employees who participate directly in preparing, serving,
24 hosting or cleaning up the food or beverage function with
25 respect to which the service charge is imposed.
26 (14) Oil field exploration, drilling, and production
27 equipment, including (i) rigs and parts of rigs, rotary rigs,
28 cable tool rigs, and workover rigs, (ii) pipe and tubular
29 goods, including casing and drill strings, (iii) pumps and
30 pump-jack units, (iv) storage tanks and flow lines, (v) any
31 individual replacement part for oil field exploration,
32 drilling, and production equipment, and (vi) machinery and
33 equipment purchased for lease; but excluding motor vehicles
34 required to be registered under the Illinois Vehicle Code.
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1 (15) Photoprocessing machinery and equipment, including
2 repair and replacement parts, both new and used, including
3 that manufactured on special order, certified by the
4 purchaser to be used primarily for photoprocessing, and
5 including photoprocessing machinery and equipment purchased
6 for lease.
7 (16) Coal exploration, mining, offhighway hauling,
8 processing, maintenance, and reclamation equipment, including
9 replacement parts and equipment, and including equipment
10 purchased for lease, but excluding motor vehicles required to
11 be registered under the Illinois Vehicle Code.
12 (17) Distillation machinery and equipment, sold as a
13 unit or kit, assembled or installed by the retailer,
14 certified by the user to be used only for the production of
15 ethyl alcohol that will be used for consumption as motor fuel
16 or as a component of motor fuel for the personal use of the
17 user, and not subject to sale or resale.
18 (18) Manufacturing and assembling machinery and
19 equipment used primarily in the process of manufacturing or
20 assembling tangible personal property for wholesale or retail
21 sale or lease, whether that sale or lease is made directly by
22 the manufacturer or by some other person, whether the
23 materials used in the process are owned by the manufacturer
24 or some other person, or whether that sale or lease is made
25 apart from or as an incident to the seller's engaging in the
26 service occupation of producing machines, tools, dies, jigs,
27 patterns, gauges, or other similar items of no commercial
28 value on special order for a particular purchaser.
29 (19) Personal property delivered to a purchaser or
30 purchaser's donee inside Illinois when the purchase order for
31 that personal property was received by a florist located
32 outside Illinois who has a florist located inside Illinois
33 deliver the personal property.
34 (20) Semen used for artificial insemination of livestock
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1 for direct agricultural production.
2 (21) Horses, or interests in horses, registered with and
3 meeting the requirements of any of the Arabian Horse Club
4 Registry of America, Appaloosa Horse Club, American Quarter
5 Horse Association, United States Trotting Association, or
6 Jockey Club, as appropriate, used for purposes of breeding or
7 racing for prizes.
8 (22) Computers and communications equipment utilized for
9 any hospital purpose and equipment used in the diagnosis,
10 analysis, or treatment of hospital patients purchased by a
11 lessor who leases the equipment, under a lease of one year or
12 longer executed or in effect at the time the lessor would
13 otherwise be subject to the tax imposed by this Act, to a
14 hospital that has been issued an active tax exemption
15 identification number by the Department under Section 1g of
16 the Retailers' Occupation Tax Act. If the equipment is
17 leased in a manner that does not qualify for this exemption
18 or is used in any other non-exempt manner, the lessor shall
19 be liable for the tax imposed under this Act or the Service
20 Use Tax Act, as the case may be, based on the fair market
21 value of the property at the time the non-qualifying use
22 occurs. No lessor shall collect or attempt to collect an
23 amount (however designated) that purports to reimburse that
24 lessor for the tax imposed by this Act or the Service Use Tax
25 Act, as the case may be, if the tax has not been paid by the
26 lessor. If a lessor improperly collects any such amount from
27 the lessee, the lessee shall have a legal right to claim a
28 refund of that amount from the lessor. If, however, that
29 amount is not refunded to the lessee for any reason, the
30 lessor is liable to pay that amount to the Department.
31 (23) Personal property purchased by a lessor who leases
32 the property, under a lease of one year or longer executed
33 or in effect at the time the lessor would otherwise be
34 subject to the tax imposed by this Act, to a governmental
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1 body that has been issued an active sales tax exemption
2 identification number by the Department under Section 1g of
3 the Retailers' Occupation Tax Act. If the property is leased
4 in a manner that does not qualify for this exemption or used
5 in any other non-exempt manner, the lessor shall be liable
6 for the tax imposed under this Act or the Service Use Tax
7 Act, as the case may be, based on the fair market value of
8 the property at the time the non-qualifying use occurs. No
9 lessor shall collect or attempt to collect an amount (however
10 designated) that purports to reimburse that lessor for the
11 tax imposed by this Act or the Service Use Tax Act, as the
12 case may be, if the tax has not been paid by the lessor. If
13 a lessor improperly collects any such amount from the lessee,
14 the lessee shall have a legal right to claim a refund of that
15 amount from the lessor. If, however, that amount is not
16 refunded to the lessee for any reason, the lessor is liable
17 to pay that amount to the Department.
18 (24) Beginning with taxable years ending on or after
19 December 31, 1995 and ending with taxable years ending on or
20 before December 31, 2004, personal property that is donated
21 for disaster relief to be used in a State or federally
22 declared disaster area in Illinois or bordering Illinois by a
23 manufacturer or retailer that is registered in this State to
24 a corporation, society, association, foundation, or
25 institution that has been issued a sales tax exemption
26 identification number by the Department that assists victims
27 of the disaster who reside within the declared disaster area.
28 (25) Beginning with taxable years ending on or after
29 December 31, 1995 and ending with taxable years ending on or
30 before December 31, 2004, personal property that is used in
31 the performance of infrastructure repairs in this State,
32 including but not limited to municipal roads and streets,
33 access roads, bridges, sidewalks, waste disposal systems,
34 water and sewer line extensions, water distribution and
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1 purification facilities, storm water drainage and retention
2 facilities, and sewage treatment facilities, resulting from a
3 State or federally declared disaster in Illinois or bordering
4 Illinois when such repairs are initiated on facilities
5 located in the declared disaster area within 6 months after
6 the disaster.
7 (26) Beginning July 1, 1999, game or game birds
8 purchased at a "game breeding and hunting preserve area" or
9 an "exotic game hunting area" as those terms are used in the
10 Wildlife Code or at a hunting enclosure approved through
11 rules adopted by the Department of Natural Resources. This
12 paragraph is exempt from the provisions of Section 3-90.
13 (27) (26) A motor vehicle, as that term is defined in
14 Section 1-146 of the Illinois Vehicle Code, that is donated
15 to a corporation, limited liability company, society,
16 association, foundation, or institution that is determined by
17 the Department to be organized and operated exclusively for
18 educational purposes. For purposes of this exemption, "a
19 corporation, limited liability company, society, association,
20 foundation, or institution organized and operated exclusively
21 for educational purposes" means all tax-supported public
22 schools, private schools that offer systematic instruction in
23 useful branches of learning by methods common to public
24 schools and that compare favorably in their scope and
25 intensity with the course of study presented in tax-supported
26 schools, and vocational or technical schools or institutes
27 organized and operated exclusively to provide a course of
28 study of not less than 6 weeks duration and designed to
29 prepare individuals to follow a trade or to pursue a manual,
30 technical, mechanical, industrial, business, or commercial
31 occupation.
32 (28) (27) Beginning January 1, 2000, personal property,
33 including food, purchased through fundraising events for the
34 benefit of a public or private elementary or secondary
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1 school, a group of those schools, or one or more school
2 districts if the events are sponsored by an entity recognized
3 by the school district that consists primarily of volunteers
4 and includes parents and teachers of the school children.
5 This paragraph does not apply to fundraising events (i) for
6 the benefit of private home instruction or (ii) for which the
7 fundraising entity purchases the personal property sold at
8 the events from another individual or entity that sold the
9 property for the purpose of resale by the fundraising entity
10 and that profits from the sale to the fundraising entity.
11 This paragraph is exempt from the provisions of Section 3-90.
12 (29) (26) Beginning January 1, 2000, new or used
13 automatic vending machines that prepare and serve hot food
14 and beverages, including coffee, soup, and other items, and
15 replacement parts for these machines. This paragraph is
16 exempt from the provisions of Section 3-90.
17 (30) Food for human consumption that is to be consumed
18 off the premises where it is sold (other than alcoholic
19 beverages, soft drinks, and food that 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 for human use, when purchased for use by a person receiving
24 medical assistance under Article 5 of the Illinois Public Aid
25 Code who resides in a licensed long-term care facility, as
26 defined in the Nursing Home Care Act.
27 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
28 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
29 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
30 eff. 8-20-99; revised 9-29-99.)
31 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
32 Sec. 9. Except as to motor vehicles, watercraft,
33 aircraft, and trailers that are required to be registered
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1 with an agency of this State, each retailer required or
2 authorized to collect the tax imposed by this Act shall pay
3 to the Department the amount of such tax (except as otherwise
4 provided) at the time when he is required to file his return
5 for the period during which such tax was collected, less a
6 discount of 2.1% prior to January 1, 1990, and 1.75% on and
7 after January 1, 1990, or $5 per calendar year, whichever is
8 greater, which is allowed to reimburse the retailer for
9 expenses incurred in collecting the tax, keeping records,
10 preparing and filing returns, remitting the tax and supplying
11 data to the Department on request. In the case of retailers
12 who report and pay the tax on a transaction by transaction
13 basis, as provided in this Section, such discount shall be
14 taken with each such tax remittance instead of when such
15 retailer files his periodic return. A retailer need not
16 remit that part of any tax collected by him to the extent
17 that he is required to remit and does remit the tax imposed
18 by the Retailers' Occupation Tax Act, with respect to the
19 sale of the same property.
20 Where such tangible personal property is sold under a
21 conditional sales contract, or under any other form of sale
22 wherein the payment of the principal sum, or a part thereof,
23 is extended beyond the close of the period for which the
24 return is filed, the retailer, in collecting the tax (except
25 as to motor vehicles, watercraft, aircraft, and trailers that
26 are required to be registered with an agency of this State),
27 may collect for each tax return period, only the tax
28 applicable to that part of the selling price actually
29 received during such tax return period.
30 Except as provided in this Section, on or before the
31 twentieth day of each calendar month, such retailer shall
32 file a return for the preceding calendar month. Such return
33 shall be filed on forms prescribed by the Department and
34 shall furnish such information as the Department may
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1 reasonably require.
2 The Department may require returns to be filed on a
3 quarterly basis. If so required, a return for each calendar
4 quarter shall be filed on or before the twentieth day of the
5 calendar month following the end of such calendar quarter.
6 The taxpayer shall also file a return with the Department for
7 each of the first two months of each calendar quarter, on or
8 before the twentieth day of the following calendar month,
9 stating:
10 1. The name of the seller;
11 2. The address of the principal place of business
12 from which he engages in the business of selling tangible
13 personal property at retail in this State;
14 3. The total amount of taxable receipts received by
15 him during the preceding calendar month from sales of
16 tangible personal property by him during such preceding
17 calendar month, including receipts from charge and time
18 sales, but less all deductions allowed by law;
19 4. The amount of credit provided in Section 2d of
20 this Act;
21 5. The amount of tax due;
22 5-5. The signature of the taxpayer; and
23 6. Such other reasonable information as the
24 Department may require.
25 If a taxpayer fails to sign a return within 30 days after
26 the proper notice and demand for signature by the Department,
27 the return shall be considered valid and any amount shown to
28 be due on the return shall be deemed assessed.
29 Beginning October 1, 1993, a taxpayer who has an average
30 monthly tax liability of $150,000 or more shall make all
31 payments required by rules of the Department by electronic
32 funds transfer. Beginning October 1, 1994, a taxpayer who has
33 an average monthly tax liability of $100,000 or more shall
34 make all payments required by rules of the Department by
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1 electronic funds transfer. Beginning October 1, 1995, a
2 taxpayer who has an average monthly tax liability of $50,000
3 or more shall make all payments required by rules of the
4 Department by electronic funds transfer. Beginning October 1,
5 2000, a taxpayer who has an annual tax liability of $200,000
6 or more shall make all payments required by rules of the
7 Department by electronic funds transfer. The term "annual
8 tax liability" shall be the sum of the taxpayer's liabilities
9 under this Act, and under all other State and local
10 occupation and use tax laws administered by the Department,
11 for the immediately preceding calendar year. The term
12 "average monthly tax liability" means the sum of the
13 taxpayer's liabilities under this Act, and under all other
14 State and local occupation and use tax laws administered by
15 the Department, for the immediately preceding calendar year
16 divided by 12.
17 Before August 1 of each year beginning in 1993, the
18 Department shall notify all taxpayers required to make
19 payments by electronic funds transfer. All taxpayers required
20 to make payments by electronic funds transfer shall make
21 those payments for a minimum of one year beginning on October
22 1.
23 Any taxpayer not required to make payments by electronic
24 funds transfer may make payments by electronic funds transfer
25 with the permission of the Department.
26 All taxpayers required to make payment by electronic
27 funds transfer and any taxpayers authorized to voluntarily
28 make payments by electronic funds transfer shall make those
29 payments in the manner authorized by the Department.
30 The Department shall adopt such rules as are necessary to
31 effectuate a program of electronic funds transfer and the
32 requirements of this Section.
33 Before October 1, 2000, if the taxpayer's average monthly
34 tax liability to the Department under this Act, the
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1 Retailers' Occupation Tax Act, the Service Occupation Tax
2 Act, the Service Use Tax Act was $10,000 or more during the
3 preceding 4 complete calendar quarters, he shall file a
4 return with the Department each month by the 20th day of the
5 month next following the month during which such tax
6 liability is incurred and shall make payments to the
7 Department on or before the 7th, 15th, 22nd and last day of
8 the month during which such liability is incurred. On and
9 after October 1, 2000, if the taxpayer's average monthly tax
10 liability to the Department under this Act, the Retailers'
11 Occupation Tax Act, the Service Occupation Tax Act, and the
12 Service Use Tax Act was $20,000 or more during the preceding
13 4 complete calendar quarters, he shall file a return with the
14 Department each month by the 20th day of the month next
15 following the month during which such tax liability is
16 incurred and shall make payment to the Department on or
17 before the 7th, 15th, 22nd and last day of or the month
18 during which such liability is incurred. If the month during
19 which such tax liability is incurred began prior to January
20 1, 1985, each payment shall be in an amount equal to 1/4 of
21 the taxpayer's actual liability for the month or an amount
22 set by the Department not to exceed 1/4 of the average
23 monthly liability of the taxpayer to the Department for the
24 preceding 4 complete calendar quarters (excluding the month
25 of highest liability and the month of lowest liability in
26 such 4 quarter period). If the month during which such tax
27 liability is incurred begins on or after January 1, 1985, and
28 prior to January 1, 1987, each payment shall be in an amount
29 equal to 22.5% of the taxpayer's actual liability for the
30 month or 27.5% of the taxpayer's liability for the same
31 calendar month of the preceding year. If the month during
32 which such tax liability is incurred begins on or after
33 January 1, 1987, and prior to January 1, 1988, each payment
34 shall be in an amount equal to 22.5% of the taxpayer's actual
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1 liability for the month or 26.25% of the taxpayer's liability
2 for the same calendar month of the preceding year. If the
3 month during which such tax liability is incurred begins on
4 or after January 1, 1988, and prior to January 1, 1989, or
5 begins on or after January 1, 1996, each payment shall be in
6 an amount equal to 22.5% of the taxpayer's actual liability
7 for the month or 25% of the taxpayer's liability for the same
8 calendar month of the preceding year. If the month during
9 which such tax liability is incurred begins on or after
10 January 1, 1989, and prior to January 1, 1996, each payment
11 shall be in an amount equal to 22.5% of the taxpayer's actual
12 liability for the month or 25% of the taxpayer's liability
13 for the same calendar month of the preceding year or 100% of
14 the taxpayer's actual liability for the quarter monthly
15 reporting period. The amount of such quarter monthly
16 payments shall be credited against the final tax liability of
17 the taxpayer's return for that month. Before October 1,
18 2000, once applicable, the requirement of the making of
19 quarter monthly payments to the Department shall continue
20 until such taxpayer's average monthly liability to the
21 Department during the preceding 4 complete calendar quarters
22 (excluding the month of highest liability and the month of
23 lowest liability) is less than $9,000, or until such
24 taxpayer's average monthly liability to the Department as
25 computed for each calendar quarter of the 4 preceding
26 complete calendar quarter period is less than $10,000.
27 However, if a taxpayer can show the Department that a
28 substantial change in the taxpayer's business has occurred
29 which causes the taxpayer to anticipate that his average
30 monthly tax liability for the reasonably foreseeable future
31 will fall below the $10,000 threshold stated above, then such
32 taxpayer may petition the Department for change in such
33 taxpayer's reporting status. On and after October 1, 2000,
34 once applicable, the requirement of the making of quarter
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1 monthly payments to the Department shall continue until such
2 taxpayer's average monthly liability to the Department during
3 the preceding 4 complete calendar quarters (excluding the
4 month of highest liability and the month of lowest liability)
5 is less than $19,000 or until such taxpayer's average monthly
6 liability to the Department as computed for each calendar
7 quarter of the 4 preceding complete calendar quarter period
8 is less than $20,000. However, if a taxpayer can show the
9 Department that a substantial change in the taxpayer's
10 business has occurred which causes the taxpayer to anticipate
11 that his average monthly tax liability for the reasonably
12 foreseeable future will fall below the $20,000 threshold
13 stated above, then such taxpayer may petition the Department
14 for a change in such taxpayer's reporting status. The
15 Department shall change such taxpayer's reporting status
16 unless it finds that such change is seasonal in nature and
17 not likely to be long term. If any such quarter monthly
18 payment is not paid at the time or in the amount required by
19 this Section, then the taxpayer shall be liable for penalties
20 and interest on the difference between the minimum amount due
21 and the amount of such quarter monthly payment actually and
22 timely paid, except insofar as the taxpayer has previously
23 made payments for that month to the Department in excess of
24 the minimum payments previously due as provided in this
25 Section. The Department shall make reasonable rules and
26 regulations to govern the quarter monthly payment amount and
27 quarter monthly payment dates for taxpayers who file on other
28 than a calendar monthly basis.
29 If any such payment provided for in this Section exceeds
30 the taxpayer's liabilities under this Act, the Retailers'
31 Occupation Tax Act, the Service Occupation Tax Act and the
32 Service Use Tax Act, as shown by an original monthly return,
33 the Department shall issue to the taxpayer a credit
34 memorandum no later than 30 days after the date of payment,
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1 which memorandum may be submitted by the taxpayer to the
2 Department in payment of tax liability subsequently to be
3 remitted by the taxpayer to the Department or be assigned by
4 the taxpayer to a similar taxpayer under this Act, the
5 Retailers' Occupation Tax Act, the Service Occupation Tax Act
6 or the Service Use Tax Act, in accordance with reasonable
7 rules and regulations to be prescribed by the Department,
8 except that if such excess payment is shown on an original
9 monthly return and is made after December 31, 1986, no credit
10 memorandum shall be issued, unless requested by the taxpayer.
11 If no such request is made, the taxpayer may credit such
12 excess payment against tax liability subsequently to be
13 remitted by the taxpayer to the Department under this Act,
14 the Retailers' Occupation Tax Act, the Service Occupation Tax
15 Act or the Service Use Tax Act, in accordance with reasonable
16 rules and regulations prescribed by the Department. If the
17 Department subsequently determines that all or any part of
18 the credit taken was not actually due to the taxpayer, the
19 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
20 by 2.1% or 1.75% of the difference between the credit taken
21 and that actually due, and the taxpayer shall be liable for
22 penalties and interest on such difference.
23 If the retailer is otherwise required to file a monthly
24 return and if the retailer's average monthly tax liability to
25 the Department does not exceed $200, the Department may
26 authorize his returns to be filed on a quarter annual basis,
27 with the return for January, February, and March of a given
28 year being due by April 20 of such year; with the return for
29 April, May and June of a given year being due by July 20 of
30 such year; with the return for July, August and September of
31 a given year being due by October 20 of such year, and with
32 the return for October, November and December of a given year
33 being due by January 20 of the following year.
34 If the retailer is otherwise required to file a monthly
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1 or quarterly return and if the retailer's average monthly tax
2 liability to the Department does not exceed $50, the
3 Department may authorize his returns to be filed on an annual
4 basis, with the return for a given year being due by January
5 20 of the following year.
6 Such quarter annual and annual returns, as to form and
7 substance, shall be subject to the same requirements as
8 monthly returns.
9 Notwithstanding any other provision in this Act
10 concerning the time within which a retailer may file his
11 return, in the case of any retailer who ceases to engage in a
12 kind of business which makes him responsible for filing
13 returns under this Act, such retailer shall file a final
14 return under this Act with the Department not more than one
15 month after discontinuing such business.
16 In addition, with respect to motor vehicles, watercraft,
17 aircraft, and trailers that are required to be registered
18 with an agency of this State, every retailer selling this
19 kind of tangible personal property shall file, with the
20 Department, upon a form to be prescribed and supplied by the
21 Department, a separate return for each such item of tangible
22 personal property which the retailer sells, except that if
23 where, in the same transaction, (i) a retailer of aircraft,
24 watercraft, motor vehicles or trailers transfers more than
25 one aircraft, watercraft, motor vehicle or trailer to another
26 aircraft, watercraft, motor vehicle or trailer retailer for
27 the purpose of resale or (ii) a retailer of aircraft,
28 watercraft, motor vehicles, or trailers transfers more than
29 one aircraft, watercraft, motor vehicle, or trailer to a
30 purchaser for use as a qualifying rolling stock as provided
31 in Section 3-55 of this Act, then that seller for resale may
32 report the transfer of all the aircraft, watercraft, motor
33 vehicles or trailers involved in that transaction to the
34 Department on the same uniform invoice-transaction reporting
-19- LRB9111084SMdvam04
1 return form. For purposes of this Section, "watercraft"
2 means a Class 2, Class 3, or Class 4 watercraft as defined in
3 Section 3-2 of the Boat Registration and Safety Act, a
4 personal watercraft, or any boat equipped with an inboard
5 motor.
6 The transaction reporting return in the case of motor
7 vehicles or trailers that are required to be registered with
8 an agency of this State, shall be the same document as the
9 Uniform Invoice referred to in Section 5-402 of the Illinois
10 Vehicle Code and must show the name and address of the
11 seller; the name and address of the purchaser; the amount of
12 the selling price including the amount allowed by the
13 retailer for traded-in property, if any; the amount allowed
14 by the retailer for the traded-in tangible personal property,
15 if any, to the extent to which Section 2 of this Act allows
16 an exemption for the value of traded-in property; the balance
17 payable after deducting such trade-in allowance from the
18 total selling price; the amount of tax due from the retailer
19 with respect to such transaction; the amount of tax collected
20 from the purchaser by the retailer on such transaction (or
21 satisfactory evidence that such tax is not due in that
22 particular instance, if that is claimed to be the fact); the
23 place and date of the sale; a sufficient identification of
24 the property sold; such other information as is required in
25 Section 5-402 of the Illinois Vehicle Code, and such other
26 information as the Department may reasonably require.
27 The transaction reporting return in the case of
28 watercraft and aircraft must show the name and address of the
29 seller; the name and address of the purchaser; the amount of
30 the selling price including the amount allowed by the
31 retailer for traded-in property, if any; the amount allowed
32 by the retailer for the traded-in tangible personal property,
33 if any, to the extent to which Section 2 of this Act allows
34 an exemption for the value of traded-in property; the balance
-20- LRB9111084SMdvam04
1 payable after deducting such trade-in allowance from the
2 total selling price; the amount of tax due from the retailer
3 with respect to such transaction; the amount of tax collected
4 from the purchaser by the retailer on such transaction (or
5 satisfactory evidence that such tax is not due in that
6 particular instance, if that is claimed to be the fact); the
7 place and date of the sale, a sufficient identification of
8 the property sold, and such other information as the
9 Department may reasonably require.
10 Such transaction reporting return shall be filed not
11 later than 20 days after the date of delivery of the item
12 that is being sold, but may be filed by the retailer at any
13 time sooner than that if he chooses to do so. The
14 transaction reporting return and tax remittance or proof of
15 exemption from the tax that is imposed by this Act may be
16 transmitted to the Department by way of the State agency with
17 which, or State officer with whom, the tangible personal
18 property must be titled or registered (if titling or
19 registration is required) if the Department and such agency
20 or State officer determine that this procedure will expedite
21 the processing of applications for title or registration.
22 With each such transaction reporting return, the retailer
23 shall remit the proper amount of tax due (or shall submit
24 satisfactory evidence that the sale is not taxable if that is
25 the case), to the Department or its agents, whereupon the
26 Department shall issue, in the purchaser's name, a tax
27 receipt (or a certificate of exemption if the Department is
28 satisfied that the particular sale is tax exempt) which such
29 purchaser may submit to the agency with which, or State
30 officer with whom, he must title or register the tangible
31 personal property that is involved (if titling or
32 registration is required) in support of such purchaser's
33 application for an Illinois certificate or other evidence of
34 title or registration to such tangible personal property.
-21- LRB9111084SMdvam04
1 No retailer's failure or refusal to remit tax under this
2 Act precludes a user, who has paid the proper tax to the
3 retailer, from obtaining his certificate of title or other
4 evidence of title or registration (if titling or registration
5 is required) upon satisfying the Department that such user
6 has paid the proper tax (if tax is due) to the retailer. The
7 Department shall adopt appropriate rules to carry out the
8 mandate of this paragraph.
9 If the user who would otherwise pay tax to the retailer
10 wants the transaction reporting return filed and the payment
11 of tax or proof of exemption made to the Department before
12 the retailer is willing to take these actions and such user
13 has not paid the tax to the retailer, such user may certify
14 to the fact of such delay by the retailer, and may (upon the
15 Department being satisfied of the truth of such
16 certification) transmit the information required by the
17 transaction reporting return and the remittance for tax or
18 proof of exemption directly to the Department and obtain his
19 tax receipt or exemption determination, in which event the
20 transaction reporting return and tax remittance (if a tax
21 payment was required) shall be credited by the Department to
22 the proper retailer's account with the Department, but
23 without the 2.1% or 1.75% discount provided for in this
24 Section being allowed. When the user pays the tax directly
25 to the Department, he shall pay the tax in the same amount
26 and in the same form in which it would be remitted if the tax
27 had been remitted to the Department by the retailer.
28 Where a retailer collects the tax with respect to the
29 selling price of tangible personal property which he sells
30 and the purchaser thereafter returns such tangible personal
31 property and the retailer refunds the selling price thereof
32 to the purchaser, such retailer shall also refund, to the
33 purchaser, the tax so collected from the purchaser. When
34 filing his return for the period in which he refunds such tax
-22- LRB9111084SMdvam04
1 to the purchaser, the retailer may deduct the amount of the
2 tax so refunded by him to the purchaser from any other use
3 tax which such retailer may be required to pay or remit to
4 the Department, as shown by such return, if the amount of the
5 tax to be deducted was previously remitted to the Department
6 by such retailer. If the retailer has not previously
7 remitted the amount of such tax to the Department, he is
8 entitled to no deduction under this Act upon refunding such
9 tax to the purchaser.
10 Any retailer filing a return under this Section shall
11 also include (for the purpose of paying tax thereon) the
12 total tax covered by such return upon the selling price of
13 tangible personal property purchased by him at retail from a
14 retailer, but as to which the tax imposed by this Act was not
15 collected from the retailer filing such return, and such
16 retailer shall remit the amount of such tax to the Department
17 when filing such return.
18 If experience indicates such action to be practicable,
19 the Department may prescribe and furnish a combination or
20 joint return which will enable retailers, who are required to
21 file returns hereunder and also under the Retailers'
22 Occupation Tax Act, to furnish all the return information
23 required by both Acts on the one form.
24 Where the retailer has more than one business registered
25 with the Department under separate registration under this
26 Act, such retailer may not file each return that is due as a
27 single return covering all such registered businesses, but
28 shall file separate returns for each such registered
29 business.
30 Beginning January 1, 1990, each month the Department
31 shall pay into the State and Local Sales Tax Reform Fund, a
32 special fund in the State Treasury which is hereby created,
33 the net revenue realized for the preceding month from the 1%
34 tax on sales of food for human consumption which is to be
-23- LRB9111084SMdvam04
1 consumed off the premises where it is sold (other than
2 alcoholic beverages, soft drinks and food which has been
3 prepared for immediate consumption) and prescription and
4 nonprescription medicines, drugs, medical appliances and
5 insulin, urine testing materials, syringes and needles used
6 by diabetics.
7 Beginning January 1, 1990, each month the Department
8 shall pay into the County and Mass Transit District Fund 4%
9 of the net revenue realized for the preceding month from the
10 6.25% general rate on the selling price of tangible personal
11 property which is purchased outside Illinois at retail from a
12 retailer and which is titled or registered by an agency of
13 this State's government.
14 Beginning January 1, 1990, each month the Department
15 shall pay into the State and Local Sales Tax Reform Fund, a
16 special fund in the State Treasury, 20% of the net revenue
17 realized for the preceding month from the 6.25% general rate
18 on the selling price of tangible personal property, other
19 than tangible personal property which is purchased outside
20 Illinois at retail from a retailer and which is titled or
21 registered by an agency of this State's government.
22 Beginning January 1, 1990, each month the Department
23 shall pay into the Local Government Tax Fund 16% of the net
24 revenue realized for the preceding month from the 6.25%
25 general rate on the selling price of tangible personal
26 property which is purchased outside Illinois at retail from a
27 retailer and which is titled or registered by an agency of
28 this State's government.
29 Of the remainder of the moneys received by the Department
30 pursuant to this Act, (a) 1.75% thereof shall be paid into
31 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
32 and on and after July 1, 1989, 3.8% thereof shall be paid
33 into the Build Illinois Fund; provided, however, that if in
34 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
-24- LRB9111084SMdvam04
1 as the case may be, of the moneys received by the Department
2 and required to be paid into the Build Illinois Fund pursuant
3 to Section 3 of the Retailers' Occupation Tax Act, Section 9
4 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
5 Section 9 of the Service Occupation Tax Act, such Acts being
6 hereinafter called the "Tax Acts" and such aggregate of 2.2%
7 or 3.8%, as the case may be, of moneys being hereinafter
8 called the "Tax Act Amount", and (2) the amount transferred
9 to the Build Illinois Fund from the State and Local Sales Tax
10 Reform Fund shall be less than the Annual Specified Amount
11 (as defined in Section 3 of the Retailers' Occupation Tax
12 Act), an amount equal to the difference shall be immediately
13 paid into the Build Illinois Fund from other moneys received
14 by the Department pursuant to the Tax Acts; and further
15 provided, that if on the last business day of any month the
16 sum of (1) the Tax Act Amount required to be deposited into
17 the Build Illinois Bond Account in the Build Illinois Fund
18 during such month and (2) the amount transferred during such
19 month to the Build Illinois Fund from the State and Local
20 Sales Tax Reform Fund shall have been less than 1/12 of the
21 Annual Specified Amount, an amount equal to the difference
22 shall be immediately paid into the Build Illinois Fund from
23 other moneys received by the Department pursuant to the Tax
24 Acts; and, further provided, that in no event shall the
25 payments required under the preceding proviso result in
26 aggregate payments into the Build Illinois Fund pursuant to
27 this clause (b) for any fiscal year in excess of the greater
28 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
29 for such fiscal year; and, further provided, that the amounts
30 payable into the Build Illinois Fund under this clause (b)
31 shall be payable only until such time as the aggregate amount
32 on deposit under each trust indenture securing Bonds issued
33 and outstanding pursuant to the Build Illinois Bond Act is
34 sufficient, taking into account any future investment income,
-25- LRB9111084SMdvam04
1 to fully provide, in accordance with such indenture, for the
2 defeasance of or the payment of the principal of, premium, if
3 any, and interest on the Bonds secured by such indenture and
4 on any Bonds expected to be issued thereafter and all fees
5 and costs payable with respect thereto, all as certified by
6 the Director of the Bureau of the Budget. If on the last
7 business day of any month in which Bonds are outstanding
8 pursuant to the Build Illinois Bond Act, the aggregate of the
9 moneys deposited in the Build Illinois Bond Account in the
10 Build Illinois Fund in such month shall be less than the
11 amount required to be transferred in such month from the
12 Build Illinois Bond Account to the Build Illinois Bond
13 Retirement and Interest Fund pursuant to Section 13 of the
14 Build Illinois Bond Act, an amount equal to such deficiency
15 shall be immediately paid from other moneys received by the
16 Department pursuant to the Tax Acts to the Build Illinois
17 Fund; provided, however, that any amounts paid to the Build
18 Illinois Fund in any fiscal year pursuant to this sentence
19 shall be deemed to constitute payments pursuant to clause (b)
20 of the preceding sentence and shall reduce the amount
21 otherwise payable for such fiscal year pursuant to clause (b)
22 of the preceding sentence. The moneys received by the
23 Department pursuant to this Act and required to be deposited
24 into the Build Illinois Fund are subject to the pledge, claim
25 and charge set forth in Section 12 of the Build Illinois Bond
26 Act.
27 Subject to payment of amounts into the Build Illinois
28 Fund as provided in the preceding paragraph or in any
29 amendment thereto hereafter enacted, the following specified
30 monthly installment of the amount requested in the
31 certificate of the Chairman of the Metropolitan Pier and
32 Exposition Authority provided under Section 8.25f of the
33 State Finance Act, but not in excess of the sums designated
34 as "Total Deposit", shall be deposited in the aggregate from
-26- LRB9111084SMdvam04
1 collections under Section 9 of the Use Tax Act, Section 9 of
2 the Service Use Tax Act, Section 9 of the Service Occupation
3 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
4 into the McCormick Place Expansion Project Fund in the
5 specified fiscal years.
6 Fiscal Year Total Deposit
7 1993 $0
8 1994 53,000,000
9 1995 58,000,000
10 1996 61,000,000
11 1997 64,000,000
12 1998 68,000,000
13 1999 71,000,000
14 2000 75,000,000
15 2001 80,000,000
16 2002 84,000,000
17 2003 89,000,000
18 2004 93,000,000
19 2005 97,000,000
20 2006 102,000,000
21 2007 108,000,000
22 2008 115,000,000
23 2009 120,000,000
24 2010 126,000,000
25 2011 132,000,000
26 2012 138,000,000
27 2013 and 145,000,000
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.
-27- LRB9111084SMdvam04
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
-28- LRB9111084SMdvam04
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 Beginning April 1, 2000, this transfer is no longer required
17 and shall not be made.
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. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98;
30 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff.
31 7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)
32 (35 ILCS 105/10) (from Ch. 120, par. 439.10)
33 Sec. 10. Except as to motor vehicles, and aircraft,
-29- LRB9111084SMdvam04
1 watercraft, and trailers, when tangible personal property is
2 purchased from a retailer for use in this State by a
3 purchaser who did not pay the tax imposed by this Act to the
4 retailer, and who does not file returns with the Department
5 as a retailer under Section 9 of this Act, such purchaser (by
6 the last day of the month following the calendar month in
7 which such purchaser makes any payment upon the selling price
8 of such property) shall, except as provided in this Section,
9 file a return with the Department and pay the tax upon that
10 portion of the selling price so paid by the purchaser during
11 the preceding calendar month. When tangible personal
12 property, including but not limited to motor vehicles and
13 aircraft, is purchased by a lessor, under a lease for one
14 year or longer, executed or in effect at the time of purchase
15 to an interstate carrier for hire, who did not pay the tax
16 imposed by this Act to the retailer, such lessor (by the last
17 day of the month following the calendar month in which such
18 property reverts to the use of such lessor) shall file a
19 return with the Department and pay the tax upon the fair
20 market value of such property on the date of such reversion.
21 However, in determining the fair market value at the time of
22 reversion, the fair market value of such property shall not
23 exceed the original purchase price of the property that was
24 paid by the lessor at the time of purchase. Such return shall
25 be filed on a form prescribed by the Department and shall
26 contain such information as the Department may reasonably
27 require. Such return and payment from the purchaser shall be
28 submitted to the Department sooner than the last day of the
29 month after the month in which the purchase is made to the
30 extent that that may be necessary in order to secure the
31 title to a motor vehicle or the certificate of registration
32 for an aircraft. However, except as to motor vehicles and
33 aircraft, if the purchaser's annual use tax liability does
34 not exceed $600, the purchaser may file the return on an
-30- LRB9111084SMdvam04
1 annual basis on or before April 15th of the year following
2 the year use tax liability was incurred.
3 In addition with respect to motor vehicles, and aircraft,
4 watercraft, and trailers, a purchaser of such tangible
5 personal property for use in this State, who purchases such
6 tangible personal property from an out-of-state retailer,
7 shall file with the Department, upon a form to be prescribed
8 and supplied by the Department, a return for each such item
9 of tangible personal property purchased, except that if, in
10 the same transaction, (i) a purchaser of motor vehicles,
11 aircraft, watercraft, or trailers who is a retailer of motor
12 vehicles, aircraft, watercraft, or trailers purchases more
13 than one motor vehicle, aircraft, watercraft, or trailer for
14 the purpose of resale or (ii) a purchaser of motor vehicles,
15 aircraft, watercraft, or trailers purchases more than one
16 motor vehicle, aircraft, watercraft, or trailer for use as
17 qualifying rolling stock as provided in Section 3-55 of this
18 Act, then the purchaser may report the purchase of all motor
19 vehicles, aircraft, watercraft, or trailers involved in that
20 transaction to the Department on a single return prescribed
21 by the Department. Such return in the case of motor vehicles
22 and aircraft must show the name and address of the seller,
23 the name, address of purchaser, the amount of the selling
24 price including the amount allowed by the retailer for traded
25 in property, if any; the amount allowed by the retailer for
26 the traded-in tangible personal property, if any, to the
27 extent to which Section 2 of this Act allows an exemption for
28 the value of traded-in property; the balance payable after
29 deducting such trade-in allowance from the total selling
30 price; the amount of tax due from the purchaser with respect
31 to such transaction; the amount of tax collected from the
32 purchaser by the retailer on such transaction (or
33 satisfactory evidence that such tax is not due in that
34 particular instance if that is claimed to be the fact); the
-31- LRB9111084SMdvam04
1 place and date of the sale, a sufficient identification of
2 the property sold, and such other information as the
3 Department may reasonably require.
4 Such return shall be filed not later than 30 days after
5 such motor vehicle or aircraft is brought into this State for
6 use.
7 For purposes of this Section, "watercraft" means a Class
8 2, Class 3, or Class 4 watercraft as defined in Section 3-2
9 of the Boat Registration and Safety Act, a personal
10 watercraft, or any boat equipped with an inboard motor.
11 The return and tax remittance or proof of exemption from
12 the tax that is imposed by this Act may be transmitted to the
13 Department by way of the State agency with which, or State
14 officer with whom, the tangible personal property must be
15 titled or registered (if titling or registration is required)
16 if the Department and such agency or State officer determine
17 that this procedure will expedite the processing of
18 applications for title or registration.
19 With each such return, the purchaser shall remit the
20 proper amount of tax due (or shall submit satisfactory
21 evidence that the sale is not taxable if that is the case),
22 to the Department or its agents, whereupon the Department
23 shall issue, in the purchaser's name, a tax receipt (or a
24 certificate of exemption if the Department is satisfied that
25 the particular sale is tax exempt) which such purchaser may
26 submit to the agency with which, or State officer with whom,
27 he must title or register the tangible personal property that
28 is involved (if titling or registration is required) in
29 support of such purchaser's application for an Illinois
30 certificate or other evidence of title or registration to
31 such tangible personal property.
32 When a purchaser pays a tax imposed by this Act directly
33 to the Department, the Department (upon request therefor from
34 such purchaser) shall issue an appropriate receipt to such
-32- LRB9111084SMdvam04
1 purchaser showing that he has paid such tax to the
2 Department. Such receipt shall be sufficient to relieve the
3 purchaser from further liability for the tax to which such
4 receipt may refer.
5 A user who is liable to pay use tax directly to the
6 Department only occasionally and not on a frequently
7 recurring basis, and who is not required to file returns with
8 the Department as a retailer under Section 9 of this Act, or
9 under the "Retailers' Occupation Tax Act", or as a registrant
10 with the Department under the "Service Occupation Tax Act" or
11 the "Service Use Tax Act", need not register with the
12 Department. However, if such a user has a frequently
13 recurring direct use tax liability to pay to the Department,
14 such user shall be required to register with the Department
15 on forms prescribed by the Department and to obtain and
16 display a certificate of registration from the Department.
17 In that event, all of the provisions of Section 9 of this Act
18 concerning the filing of regular monthly, quarterly or annual
19 tax returns and all of the provisions of Section 2a of the
20 "Retailers' Occupation Tax Act" concerning the requirements
21 for registrants to post bond or other security with the
22 Department, as the provisions of such sections now exist or
23 may hereafter be amended, shall apply to such users to the
24 same extent as if such provisions were included herein.
25 (Source: P.A. 91-541, eff. 8-13-99.)
26 (35 ILCS 105/22) (from Ch. 120, par. 439.22)
27 Sec. 22. If it is determined that the Department should
28 issue a credit or refund under this Act, the Department may
29 first apply the amount thereof against any amount of tax or
30 penalty or interest due hereunder, or under the "Retailers'
31 Occupation Tax Act", the "Service Occupation Tax Act", the
32 "Service Use Tax Act", any local occupation or use tax
33 administered by the Department the "Municipal Retailers'
-33- LRB9111084SMdvam04
1 Occupation Tax Act", the "Municipal Use Tax Act", the
2 "Municipal Service Occupation Tax Act", the "County
3 Retailers' Occupation Tax Act", the "County Supplementary
4 Retailers' Occupation Tax Act", the "County Service
5 Occupation Tax Act", the "County Supplementary Service
6 Occupation Tax Act", the "County Use Tax Act", the "County
7 Supplementary Use Tax Act", Section 4 of the "Water
8 Commission Act of 1985", subsections (b), (c) and (d) of
9 Section 5.01 of the "Local Mass Transit District Act", or
10 subsections (e), (f) and (g) of Section 4.03 of the "Regional
11 Transportation Authority Act", from the person entitled to
12 such credit or refund. For this purpose, if proceedings are
13 pending to determine whether or not any tax or penalty or
14 interest is due under this Act or under the "Retailers'
15 Occupation Tax Act", the "Service Occupation Tax Act", the
16 "Service Use Tax Act", any local occupation or use tax
17 administered by the Department the "Municipal Retailers'
18 Occupation Tax Act", the "Municipal Use Tax Act", the
19 "Municipal Service Occupation Tax Act", the "County
20 Retailers' Occupation Tax Act", the "County Supplementary
21 Retailers' Occupation Tax Act", the "County Service
22 Occupation Tax Act", the "County Supplementary Service
23 Occupation Tax Act", the "County Use Tax Act", the "County
24 Supplementary Use Tax Act", Section 4 of the "Water
25 Commission Act of 1985", subsections (b), (c) and (d) of
26 Section 5.01 of the "Local Mass Transit District Act", or
27 subsections (e), (f) and (g) of Section 4.03 of the "Regional
28 Transportation Authority Act", from such person, the
29 Department may withhold issuance of the credit or refund
30 pending the final disposition of such proceedings and may
31 apply such credit or refund against any amount found to be
32 due to the Department as a result of such proceedings. The
33 balance, if any, of the credit or refund shall be issued to
34 the person entitled thereto.
-34- LRB9111084SMdvam04
1 Any credit memorandum issued hereunder may be used by the
2 authorized holder thereof to pay any tax or penalty or
3 interest due or to become due under this Act or under the
4 "Retailers' Occupation Tax Act", the "Service Occupation Tax
5 Act", the "Service Use Tax Act", any local occupation or use
6 tax administered by the Department the "Municipal Retailers'
7 Occupation Tax Act", the "Municipal Use Tax Act", the
8 "Municipal Service Occupation Tax Act", the "County
9 Retailers' Occupation Tax Act", the "County Supplementary
10 Retailers' Occupation Tax Act", the "County Service
11 Occupation Tax Act", the "County Supplementary Service
12 Occupation Tax Act", the "County Use Tax Act", the "County
13 Supplementary Use Tax Act", Section 4 of the "Water
14 Commission Act of 1985", subsections (b), (c) and (d) of
15 Section 5.01 of the "Local Mass Transit District Act", or
16 subsections (e), (f) and (g) of Section 4.03 of the "Regional
17 Transportation Authority Act", from such holder. Subject to
18 reasonable rules of the Department, a credit memorandum
19 issued hereunder may be assigned by the holder thereof to any
20 other person for use in paying tax or penalty or interest
21 which may be due or become due under this Act or under the
22 "Retailers' Occupation Tax Act", the "Service Occupation Tax
23 Act" or the "Service Use Tax Act", from the assignee.
24 In any case in which there has been an erroneous refund
25 of tax payable under this Act, a notice of tax liability may
26 be issued at any time within 3 years from the making of that
27 refund, or within 5 years from the making of that refund if
28 it appears that any part of the refund was induced by fraud
29 or the misrepresentation of a material fact. The amount of
30 any proposed assessment set forth in the notice shall be
31 limited to the amount of the erroneous refund.
32 (Source: P.A. 87-876.)
33 Section 15. The Service Use Tax Act is amended by
-35- LRB9111084SMdvam04
1 changing Section 20 as follows:
2 (35 ILCS 110/20) (from Ch. 120, par. 439.50)
3 Sec. 20. If it is determined that the Department should
4 issue a credit or refund hereunder, the Department may first
5 apply the amount thereof against any amount of tax or penalty
6 or interest due hereunder, or under the Service Occupation
7 Tax Act, the Retailers' Occupation Tax Act, the Use Tax Act,
8 any local occupation or use tax administered by the
9 Department the Municipal Retailers' Occupation Tax Act, the
10 Municipal Use Tax Act, the Municipal Service Occupation Tax
11 Act, the County Retailers' Occupation Tax Act, the County
12 Supplementary Retailers' Occupation Tax Act, the County
13 Service Occupation Tax Act, the County Supplementary Service
14 Occupation Tax Act, the County Use Tax Act, the County
15 Supplementary Use Tax Act, Section 4 of the Water Commission
16 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
17 the Local Mass Transit District Act, or subsections (e), (f)
18 and (g) of Section 4.03 of the Regional Transportation
19 Authority Act, from the person entitled to such credit or
20 refund. For this purpose, if proceedings are pending to
21 determine whether or not any tax or penalty or interest is
22 due hereunder, or under the Service Occupation Tax Act, the
23 Retailers' Occupation Tax Act, the Use Tax Act, any local
24 occupation or use tax administered by the Department the
25 Municipal Retailers' Occupation Tax Act, the Municipal Use
26 Tax Act, the Municipal Service Occupation Tax Act, the County
27 Retailers' Occupation Tax Act, the County Supplementary
28 Retailers' Occupation Tax Act, the County Service Occupation
29 Tax Act, the County Supplementary Service Occupation Tax Act,
30 the County Use Tax Act, the County Supplementary Use Tax Act,
31 Section 4 of the Water Commission Act of 1985, subsections
32 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
33 District Act, or subsections (e), (f) and (g) of Section 4.03
-36- LRB9111084SMdvam04
1 of the Regional Transportation Authority Act, from such
2 person, the Department may withhold issuance of the credit or
3 refund pending the final disposition of such proceedings and
4 may apply such credit or refund against any amount found to
5 be due to the Department as a result of such proceedings. The
6 balance, if any, of the credit or refund shall be issued to
7 the person entitled thereto.
8 Any credit memorandum issued hereunder may be used by the
9 authorized holder thereof to pay any tax or penalty or
10 interest due or to become due under this Act, the Service
11 Occupation Tax Act, the Retailers' Occupation Tax Act, the
12 Use Tax Act, any local occupation or use tax administered by
13 the Department the Municipal Retailers' Occupation Tax Act,
14 the Municipal Use Tax Act, the Municipal Service Occupation
15 Tax Act, the County Retailers' Occupation Tax Act, the County
16 Supplementary Retailers' Occupation Tax Act, the County
17 Service Occupation Tax Act, the County Supplementary Service
18 Occupation Tax Act, the County Use Tax Act, the County
19 Supplementary Use Tax Act, Section 4 of the Water Commission
20 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
21 the Local Mass Transit District Act, or subsections (e), (f)
22 and (g) of Section 4.03 of the Regional Transportation
23 Authority Act, from such holder. Subject to reasonable rules
24 of the Department, a credit memorandum issued hereunder may
25 be assigned by the holder thereof to any other person for use
26 in paying tax or penalty or interest which may be due or
27 become due under this Act, the Service Occupation Tax Act,
28 the Retailers' Occupation Tax Act, the Use Tax Act, any local
29 occupation or use tax administered by the Department the
30 Municipal Retailers' Occupation Tax Act, the Municipal Use
31 Tax Act, the Municipal Service Occupation Tax Act, the County
32 Retailers' Occupation Tax Act, the County Supplementary
33 Retailers' Occupation Tax Act, the County Service Occupation
34 Tax Act, the County Supplementary Service Occupation Tax Act,
-37- LRB9111084SMdvam04
1 the County Use Tax Act, the County Supplementary Use Tax Act,
2 Section 4 of the Water Commission Act of 1985, subsections
3 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
4 District Act, or subsections (e), (f) and (g) of Section 4.03
5 of the Regional Transportation Authority Act, from the
6 assignee.
7 In any case which there has been an erroneous refund of
8 tax payable under this Act, a notice of tax liability may be
9 issued at any time within 3 years from the making of that
10 refund, or within 5 years from the making of that refund if
11 it appears that any part of the refund was induced by fraud
12 or the misrepresentation of a material fact. The amount of
13 any proposed assessment set forth in the notice shall be
14 limited to the amount of the erroneous refund.
15 (Source: P.A. 87-876.)
16 Section 20. The Service Occupation Tax Act is amended by
17 changing Section 20 as follows:
18 (35 ILCS 115/20) (from Ch. 120, par. 439.120)
19 Sec. 20. If it is determined that the Department should
20 issue a credit or refund hereunder, the Department may first
21 apply the amount thereof against any amount of tax or penalty
22 or interest due hereunder, or under the Service Use Tax Act,
23 the Retailers' Occupation Tax Act, the Use Tax Act, any local
24 occupation or use tax administered by the Department the
25 Municipal Retailers' Occupation Tax Act, the Municipal Use
26 Tax Act, the Municipal Service Occupation Tax Act, the County
27 Retailers' Occupation Tax Act, the County Supplementary
28 Retailers' Occupation Tax Act, the County Service Occupation
29 Tax Act, the County Supplementary Service Occupation Tax Act,
30 the County Use Tax Act, the County Supplementary Use Tax Act,
31 Section 4 of the Water Commission Act of 1985, subsections
32 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
-38- LRB9111084SMdvam04
1 District Act, or subsections (e), (f) and (g) of Section 4.03
2 of the Regional Transportation Authority Act, from the person
3 entitled to such credit or refund. For this purpose, if
4 proceedings are pending to determine whether or not any tax
5 or penalty or interest is due hereunder, or under the Service
6 Use Tax Act, the Retailers' Occupation Tax Act, the Use Tax
7 Act, any local occupation or use tax administered by the
8 Department the Municipal Retailers' Occupation Tax Act, the
9 Municipal Use Tax Act, the Municipal Service Occupation Tax
10 Act, the County Retailers' Occupation Tax Act, the County
11 Supplementary Retailers' Occupation Tax Act, the County
12 Service Occupation Tax Act, the County Supplementary Service
13 Occupation Tax Act, the County Use Tax Act, the County
14 Supplementary Use Tax Act, Section 4 of the Water Commission
15 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
16 the Local Mass Transit District Act, or subsections (e), (f)
17 and (g) of Section 4.03 of the Regional Transportation
18 Authority Act, from such person, the Department may withhold
19 issuance of the credit or refund pending the final
20 disposition of such proceedings and may apply such credit or
21 refund against any amount found to be due to the Department
22 as a result of such proceedings. The balance, if any, of the
23 credit or refund shall be issued to the person entitled
24 thereto.
25 Any credit memorandum issued hereunder may be used by the
26 authorized holder thereof to pay any tax or penalty or
27 interest due or to become due under this Act, or under the
28 Service Use Tax Act, the Retailers' Occupation Tax Act, the
29 Use Tax Act, any local occupation or use tax administered by
30 the Department the Municipal Retailers' Occupation Tax Act,
31 the Municipal Use Tax Act, the Municipal Service Occupation
32 Tax Act, the County Retailers' Occupation Tax Act, the County
33 Supplementary Retailers' Occupation Tax Act, the County
34 Service Occupation Tax Act, the County Supplementary Service
-39- LRB9111084SMdvam04
1 Occupation Tax Act, the County Use Tax Act, the County
2 Supplementary Use Tax Act, Section 4 of the Water Commission
3 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
4 the Local Mass Transit District Act, or subsections (e), (f)
5 and (g) of Section 4.03 of the Regional Transportation
6 Authority Act, from such holder. Subject to reasonable rules
7 of the Department, a credit memorandum issued hereunder may
8 be assigned by the holder thereof to any other person for use
9 in paying tax or penalty or interest which may be due or
10 become due under this Act, the Service Use Tax Act, the
11 Retailers' Occupation Tax Act, the Use Tax Act, any local
12 occupation or use tax administered by the Department the
13 Municipal Retailers' Occupation Tax Act, the Municipal Use
14 Tax Act, the Municipal Service Occupation Tax Act, the County
15 Retailers' Occupation Tax Act, the County Supplementary
16 Retailers' Occupation Tax Act, the County Service Occupation
17 Tax Act, the County Supplementary Service Occupation Tax Act,
18 the County Use Tax Act, the County Supplementary Use Tax Act,
19 Section 4 of the Water Commission Act of 1985, subsections
20 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
21 District Act, or subsections (e), (f) and (g) of Section 4.03
22 of the Regional Transportation Authority Act, from the
23 assignee.
24 In any case in which there has been an erroneous refund
25 of tax payable under this Act, a notice of tax liability may
26 be issued at any time within 3 years from the making of that
27 refund, or within 5 years from the making of that refund if
28 it appears that any part of the refund was induced by fraud
29 or the misrepresentation of a material fact. The amount of
30 any proposed assessment set forth in the notice shall be
31 limited to the amount of the erroneous refund.
32 (Source: P.A. 87-876.)
33 Section 25. The Retailers' Occupation Tax Act is amended
-40- LRB9111084SMdvam04
1 by changing Sections 3 and 6 as follows:
2 (35 ILCS 120/3) (from Ch. 120, par. 442)
3 Sec. 3. Except as provided in this Section, on or before
4 the twentieth day of each calendar month, every person
5 engaged in the business of selling tangible personal property
6 at retail in this State during the preceding calendar month
7 shall file a return with the Department, stating:
8 1. The name of the seller;
9 2. His residence address and the address of his
10 principal place of business and the address of the
11 principal place of business (if that is a different
12 address) from which he engages in the business of selling
13 tangible personal property at retail in this State;
14 3. Total amount of receipts received by him during
15 the preceding calendar month or quarter, as the case may
16 be, from sales of tangible personal property, and from
17 services furnished, by him during such preceding calendar
18 month or quarter;
19 4. Total amount received by him during the
20 preceding calendar month or quarter on charge and time
21 sales of tangible personal property, and from services
22 furnished, by him prior to the month or quarter for which
23 the return is filed;
24 5. Deductions allowed by law;
25 6. Gross receipts which were received by him during
26 the preceding calendar month or quarter and upon the
27 basis of which the tax is imposed;
28 7. The amount of credit provided in Section 2d of
29 this Act;
30 8. The amount of tax due;
31 9. The signature of the taxpayer; and
32 10. Such other reasonable information as the
33 Department may require.
-41- LRB9111084SMdvam04
1 If a taxpayer fails to sign a return within 30 days after
2 the proper notice and demand for signature by the Department,
3 the return shall be considered valid and any amount shown to
4 be due on the return shall be deemed assessed.
5 Each return shall be accompanied by the statement of
6 prepaid tax issued pursuant to Section 2e for which credit is
7 claimed.
8 A retailer may accept a Manufacturer's Purchase Credit
9 certification from a purchaser in satisfaction of Use Tax as
10 provided in Section 3-85 of the Use Tax Act if the purchaser
11 provides the appropriate documentation as required by Section
12 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
13 certification, accepted by a retailer as provided in Section
14 3-85 of the Use Tax Act, may be used by that retailer to
15 satisfy Retailers' Occupation Tax liability in the amount
16 claimed in the certification, not to exceed 6.25% of the
17 receipts subject to tax from a qualifying purchase.
18 The Department may require returns to be filed on a
19 quarterly basis. If so required, a return for each calendar
20 quarter shall be filed on or before the twentieth day of the
21 calendar month following the end of such calendar quarter.
22 The taxpayer shall also file a return with the Department for
23 each of the first two months of each calendar quarter, on or
24 before the twentieth day of the following calendar month,
25 stating:
26 1. The name of the seller;
27 2. The address of the principal place of business
28 from which he engages in the business of selling tangible
29 personal property at retail in this State;
30 3. The total amount of taxable receipts received by
31 him during the preceding calendar month from sales of
32 tangible personal property by him during such preceding
33 calendar month, including receipts from charge and time
34 sales, but less all deductions allowed by law;
-42- LRB9111084SMdvam04
1 4. The amount of credit provided in Section 2d of
2 this Act;
3 5. The amount of tax due; and
4 6. Such other reasonable information as the
5 Department may require.
6 If a total amount of less than $1 is payable, refundable
7 or creditable, such amount shall be disregarded if it is less
8 than 50 cents and shall be increased to $1 if it is 50 cents
9 or more.
10 Beginning October 1, 1993, a taxpayer who has an average
11 monthly tax liability of $150,000 or more shall make all
12 payments required by rules of the Department by electronic
13 funds transfer. Beginning October 1, 1994, a taxpayer who
14 has an average monthly tax liability of $100,000 or more
15 shall make all payments required by rules of the Department
16 by electronic funds transfer. Beginning October 1, 1995, a
17 taxpayer who has an average monthly tax liability of $50,000
18 or more shall make all payments required by rules of the
19 Department by electronic funds transfer. Beginning October
20 1, 2000, a taxpayer who has an annual tax liability of
21 $200,000 or more shall make all payments required by rules of
22 the Department by electronic funds transfer. The term
23 "annual tax liability" shall be the sum of the taxpayer's
24 liabilities under this Act, and under all other State and
25 local occupation and use tax laws administered by the
26 Department, for the immediately preceding calendar year. The
27 term "average monthly tax liability" shall be the sum of the
28 taxpayer's liabilities under this Act, and under all other
29 State and local occupation and use tax laws administered by
30 the Department, for the immediately preceding calendar year
31 divided by 12.
32 Before August 1 of each year beginning in 1993, the
33 Department shall notify all taxpayers required to make
34 payments by electronic funds transfer. All taxpayers
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1 required to make payments by electronic funds transfer shall
2 make those payments for a minimum of one year beginning on
3 October 1.
4 Any taxpayer not required to make payments by electronic
5 funds transfer may make payments by electronic funds transfer
6 with the permission of the Department.
7 All taxpayers required to make payment by electronic
8 funds transfer and any taxpayers authorized to voluntarily
9 make payments by electronic funds transfer shall make those
10 payments in the manner authorized by the Department.
11 The Department shall adopt such rules as are necessary to
12 effectuate a program of electronic funds transfer and the
13 requirements of this Section.
14 Any amount which is required to be shown or reported on
15 any return or other document under this Act shall, if such
16 amount is not a whole-dollar amount, be increased to the
17 nearest whole-dollar amount in any case where the fractional
18 part of a dollar is 50 cents or more, and decreased to the
19 nearest whole-dollar amount where the fractional part of a
20 dollar is less than 50 cents.
21 If the retailer is otherwise required to file a monthly
22 return and if the retailer's average monthly tax liability to
23 the Department does not exceed $200, the Department may
24 authorize his returns to be filed on a quarter annual basis,
25 with the return for January, February and March of a given
26 year being due by April 20 of such year; with the return for
27 April, May and June of a given year being due by July 20 of
28 such year; with the return for July, August and September of
29 a given year being due by October 20 of such year, and with
30 the return for October, November and December of a given year
31 being due by January 20 of the following year.
32 If the retailer is otherwise required to file a monthly
33 or quarterly return and if the retailer's average monthly tax
34 liability with the Department does not exceed $50, the
-44- LRB9111084SMdvam04
1 Department may authorize his returns to be filed on an annual
2 basis, with the return for a given year being due by January
3 20 of the following year.
4 Such quarter annual and annual returns, as to form and
5 substance, shall be subject to the same requirements as
6 monthly returns.
7 Notwithstanding any other provision in this Act
8 concerning 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 Act, such retailer shall file a final
12 return under this Act with the Department not more than one
13 month after discontinuing such business.
14 Where the same person has more than one business
15 registered with the Department under separate registrations
16 under this Act, such person may not file each return that is
17 due as a single return covering all such registered
18 businesses, but shall file separate returns for each such
19 registered business.
20 In addition, with respect to motor vehicles, watercraft,
21 aircraft, and trailers that are required to be registered
22 with an agency of this State, every retailer selling this
23 kind of tangible personal property shall file, with the
24 Department, upon a form to be prescribed and supplied by the
25 Department, a separate return for each such item of tangible
26 personal property which the retailer sells, except that if
27 where, in the same transaction, (i) a retailer of aircraft,
28 watercraft, motor vehicles or trailers transfers more than
29 one aircraft, watercraft, motor vehicle or trailer to another
30 aircraft, watercraft, motor vehicle retailer or trailer
31 retailer for the purpose of resale or (ii) a retailer of
32 aircraft, watercraft, motor vehicles, or trailers transfers
33 more than one aircraft, watercraft, motor vehicle, or trailer
34 to a purchaser for use as a qualifying rolling stock as
-45- LRB9111084SMdvam04
1 provided in Section 2-5 of this Act, then that seller for
2 resale may report the transfer of all aircraft, watercraft,
3 motor vehicles or trailers involved in that transaction to
4 the Department on the same uniform invoice-transaction
5 reporting return form. For purposes of this Section,
6 "watercraft" means a Class 2, Class 3, or Class 4 watercraft
7 as defined in Section 3-2 of the Boat Registration and Safety
8 Act, a personal watercraft, or any boat equipped with an
9 inboard motor.
10 Any retailer who sells only motor vehicles, watercraft,
11 aircraft, or trailers that are required to be registered with
12 an agency of this State, so that all retailers' occupation
13 tax liability is required to be reported, and is reported, on
14 such transaction reporting returns and who is not otherwise
15 required to file monthly or quarterly returns, need not file
16 monthly or quarterly returns. However, those retailers shall
17 be required to file returns on an annual basis.
18 The transaction reporting return, in the case of motor
19 vehicles or trailers that are required to be registered with
20 an agency of this State, shall be the same document as the
21 Uniform Invoice referred to in Section 5-402 of The Illinois
22 Vehicle Code and must show the name and address of the
23 seller; the name and address of the purchaser; the amount of
24 the selling price including the amount allowed by the
25 retailer for traded-in property, if any; the amount allowed
26 by the retailer for the traded-in tangible personal property,
27 if any, to the extent to which Section 1 of this Act allows
28 an exemption for the value of traded-in property; the balance
29 payable after deducting such trade-in allowance from the
30 total selling price; the amount of tax due from the retailer
31 with respect to such transaction; the amount of tax collected
32 from the purchaser by the retailer on such transaction (or
33 satisfactory evidence that such tax is not due in that
34 particular instance, if that is claimed to be the fact); the
-46- LRB9111084SMdvam04
1 place and date of the sale; a sufficient identification of
2 the property sold; such other information as is required in
3 Section 5-402 of The Illinois Vehicle Code, and such other
4 information as the Department may reasonably require.
5 The transaction reporting return in the case of
6 watercraft or aircraft must show the name and address of the
7 seller; the name and address of the purchaser; the amount of
8 the selling price including the amount allowed by the
9 retailer for traded-in property, if any; the amount allowed
10 by the retailer for the traded-in tangible personal property,
11 if any, to the extent to which Section 1 of this Act allows
12 an exemption for the value of traded-in property; the balance
13 payable after deducting such trade-in allowance from the
14 total selling price; the amount of tax due from the retailer
15 with respect to such transaction; the amount of tax collected
16 from the purchaser by the retailer on such transaction (or
17 satisfactory evidence that such tax is not due in that
18 particular instance, if that is claimed to be the fact); the
19 place and date of the sale, a sufficient identification of
20 the property sold, and such other information as the
21 Department may reasonably require.
22 Such transaction reporting return shall be filed not
23 later than 20 days after the day of delivery of the item that
24 is being sold, but may be filed by the retailer at any time
25 sooner than that if he chooses to do so. The transaction
26 reporting return and tax remittance or proof of exemption
27 from the Illinois use tax may be transmitted to the
28 Department by way of the State agency with which, or State
29 officer with whom the tangible personal property must be
30 titled or registered (if titling or registration is required)
31 if the Department and such agency or State officer determine
32 that this procedure will expedite the processing of
33 applications for title or registration.
34 With each such transaction reporting return, the retailer
-47- LRB9111084SMdvam04
1 shall remit the proper amount of tax due (or shall submit
2 satisfactory evidence that the sale is not taxable if that is
3 the case), to the Department or its agents, whereupon the
4 Department shall issue, in the purchaser's name, a use tax
5 receipt (or a certificate of exemption if the Department is
6 satisfied that the particular sale is tax exempt) which such
7 purchaser may submit to the agency with which, or State
8 officer with whom, he must title or register the tangible
9 personal property that is involved (if titling or
10 registration is required) in support of such purchaser's
11 application for an Illinois certificate or other evidence of
12 title or registration to such tangible personal property.
13 No retailer's failure or refusal to remit tax under this
14 Act precludes a user, who has paid the proper tax to the
15 retailer, from obtaining his certificate of title or other
16 evidence of title or registration (if titling or registration
17 is required) upon satisfying the Department that such user
18 has paid the proper tax (if tax is due) to the retailer. The
19 Department shall adopt appropriate rules to carry out the
20 mandate of this paragraph.
21 If the user who would otherwise pay tax to the retailer
22 wants the transaction reporting return filed and the payment
23 of the tax or proof of exemption made to the Department
24 before the retailer is willing to take these actions and such
25 user has not paid the tax to the retailer, such user may
26 certify to the fact of such delay by the retailer and may
27 (upon the Department being satisfied of the truth of such
28 certification) transmit the information required by the
29 transaction reporting return and the remittance for tax or
30 proof of exemption directly to the Department and obtain his
31 tax receipt or exemption determination, in which event the
32 transaction reporting return and tax remittance (if a tax
33 payment was required) shall be credited by the Department to
34 the proper retailer's account with the Department, but
-48- LRB9111084SMdvam04
1 without the 2.1% or 1.75% discount provided for in this
2 Section being allowed. When the user pays the tax directly
3 to the Department, he shall pay the tax in the same amount
4 and in the same form in which it would be remitted if the tax
5 had been remitted to the Department by the retailer.
6 Refunds made by the seller during the preceding return
7 period to purchasers, on account of tangible personal
8 property returned to the seller, shall be allowed as a
9 deduction under subdivision 5 of his monthly or quarterly
10 return, as the case may be, in case the seller had
11 theretofore included the receipts from the sale of such
12 tangible personal property in a return filed by him and had
13 paid the tax imposed by this Act with respect to such
14 receipts.
15 Where the seller is a corporation, the return filed on
16 behalf of such corporation shall be signed by the president,
17 vice-president, secretary or treasurer or by the properly
18 accredited agent of such corporation.
19 Where the seller is a limited liability company, the
20 return filed on behalf of the limited liability company shall
21 be signed by a manager, member, or properly accredited agent
22 of the limited liability company.
23 Except as provided in this Section, the retailer filing
24 the return under this Section shall, at the time of filing
25 such return, pay to the Department the amount of tax imposed
26 by this Act less a discount of 2.1% prior to January 1, 1990
27 and 1.75% on and after January 1, 1990, or $5 per calendar
28 year, whichever is greater, which is allowed to reimburse the
29 retailer for the expenses incurred in keeping records,
30 preparing and filing returns, remitting the tax and supplying
31 data to the Department on request. Any prepayment made
32 pursuant to Section 2d of this Act shall be included in the
33 amount on which such 2.1% or 1.75% discount is computed. In
34 the case of retailers who report and pay the tax on a
-49- LRB9111084SMdvam04
1 transaction by transaction basis, as provided in this
2 Section, such discount shall be taken with each such tax
3 remittance instead of when such retailer files his periodic
4 return.
5 Before October 1, 2000, if the taxpayer's average monthly
6 tax liability to the Department under this Act, the Use Tax
7 Act, the Service Occupation Tax Act, and the Service Use Tax
8 Act, excluding any liability for prepaid sales tax to be
9 remitted in accordance with Section 2d of this Act, was
10 $10,000 or more during the preceding 4 complete calendar
11 quarters, he shall file a return with the Department each
12 month by the 20th day of the month next following the month
13 during which such tax liability is incurred and shall make
14 payments to the Department on or before the 7th, 15th, 22nd
15 and last day of the month during which such liability is
16 incurred. On and after October 1, 2000, if the taxpayer's
17 average monthly tax liability to the Department under this
18 Act, the Use Tax Act, the Service Occupation Tax Act, and the
19 Service Use Tax Act, excluding any liability for prepaid
20 sales tax to be remitted in accordance with Section 2d of
21 this Act, was $20,000 or more during the preceding 4 complete
22 calendar quarters, he shall file a return with the Department
23 each month by the 20th day of the month next following the
24 month during which such tax liability is incurred and shall
25 make payment to the Department on or before the 7th, 15th,
26 22nd and last day of the month during which such liability is
27 incurred. If the month during which such tax liability is
28 incurred began prior to January 1, 1985, each payment shall
29 be in an amount equal to 1/4 of the taxpayer's actual
30 liability for the month or an amount set by the Department
31 not to exceed 1/4 of the average monthly liability of the
32 taxpayer to the Department for the preceding 4 complete
33 calendar quarters (excluding the month of highest liability
34 and the month of lowest liability in such 4 quarter period).
-50- LRB9111084SMdvam04
1 If the month during which such tax liability is incurred
2 begins on or after January 1, 1985 and prior to January 1,
3 1987, each payment shall be in an amount equal to 22.5% of
4 the taxpayer's actual liability for the month or 27.5% of the
5 taxpayer's liability for the same calendar month of the
6 preceding year. If the month during which such tax liability
7 is incurred begins on or after January 1, 1987 and prior to
8 January 1, 1988, each payment shall be in an amount equal to
9 22.5% of the taxpayer's actual liability for the month or
10 26.25% of the taxpayer's liability for the same calendar
11 month of the preceding year. If the month during which such
12 tax liability is incurred begins on or after January 1, 1988,
13 and prior to January 1, 1989, or begins on or after January
14 1, 1996, each payment shall be in an amount equal to 22.5% of
15 the taxpayer's actual liability for the month or 25% of the
16 taxpayer's liability for the same calendar month of the
17 preceding year. If the month during which such tax liability
18 is incurred begins on or after January 1, 1989, and prior to
19 January 1, 1996, each payment shall be in an amount equal to
20 22.5% of the taxpayer's actual liability for the month or 25%
21 of the taxpayer's liability for the same calendar month of
22 the preceding year or 100% of the taxpayer's actual liability
23 for the quarter monthly reporting period. The amount of such
24 quarter monthly payments shall be credited against the final
25 tax liability of the taxpayer's return for that month.
26 Before October 1, 2000, once applicable, the requirement of
27 the making of quarter monthly payments to the Department by
28 taxpayers having an average monthly tax liability of $10,000
29 or more as determined in the manner provided above shall
30 continue until such taxpayer's average monthly liability to
31 the Department during the preceding 4 complete calendar
32 quarters (excluding the month of highest liability and the
33 month of lowest liability) is less than $9,000, or until such
34 taxpayer's average monthly liability to the Department as
-51- LRB9111084SMdvam04
1 computed for each calendar quarter of the 4 preceding
2 complete calendar quarter period is less than $10,000.
3 However, if a taxpayer can show the Department that a
4 substantial change in the taxpayer's business has occurred
5 which causes the taxpayer to anticipate that his average
6 monthly tax liability for the reasonably foreseeable future
7 will fall below the $10,000 threshold stated above, then such
8 taxpayer may petition the Department for a change in such
9 taxpayer's reporting status. On and after October 1, 2000,
10 once applicable, the requirement of the making of quarter
11 monthly payments to the Department by taxpayers having an
12 average monthly tax liability of $20,000 or more as
13 determined in the manner provided above shall continue until
14 such taxpayer's average monthly liability to the Department
15 during the preceding 4 complete calendar quarters (excluding
16 the month of highest liability and the month of lowest
17 liability) is less than $19,000 or until such taxpayer's
18 average monthly liability to the Department as computed for
19 each calendar quarter of the 4 preceding complete calendar
20 quarter period is less than $20,000. However, if a taxpayer
21 can show the Department that a substantial change in the
22 taxpayer's business has occurred which causes the taxpayer to
23 anticipate that his average monthly tax liability for the
24 reasonably foreseeable future will fall below the $20,000
25 threshold stated above, then such taxpayer may petition the
26 Department for a change in such taxpayer's reporting status.
27 The Department shall change such taxpayer's reporting status
28 unless it finds that such change is seasonal in nature and
29 not likely to be long term. If any such quarter monthly
30 payment is not paid at the time or in the amount required by
31 this Section, then the taxpayer shall be liable for penalties
32 and interest on the difference between the minimum amount due
33 as a payment and the amount of such quarter monthly payment
34 actually and timely paid, except insofar as the taxpayer has
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1 previously made payments for that month to the Department in
2 excess of the minimum payments previously due as provided in
3 this Section. The Department shall make reasonable rules and
4 regulations to govern the quarter monthly payment amount and
5 quarter monthly payment dates for taxpayers who file on other
6 than a calendar monthly basis.
7 Without regard to whether a taxpayer is required to make
8 quarter monthly payments as specified above, any taxpayer who
9 is required by Section 2d of this Act to collect and remit
10 prepaid taxes and has collected prepaid taxes which average
11 in excess of $25,000 per month during the preceding 2
12 complete calendar quarters, shall file a return with the
13 Department as required by Section 2f and shall make payments
14 to the Department on or before the 7th, 15th, 22nd and last
15 day of the month during which such liability is incurred. If
16 the month during which such tax liability is incurred began
17 prior to the effective date of this amendatory Act of 1985,
18 each payment shall be in an amount not less than 22.5% of the
19 taxpayer's actual liability under Section 2d. If the month
20 during which such tax liability is incurred begins on or
21 after January 1, 1986, each payment shall be in an amount
22 equal to 22.5% of the taxpayer's actual liability for the
23 month or 27.5% of the taxpayer's liability for the same
24 calendar month of the preceding calendar year. If the month
25 during which such tax liability is incurred begins on or
26 after January 1, 1987, each payment shall be in an amount
27 equal to 22.5% of the taxpayer's actual liability for the
28 month or 26.25% of the taxpayer's liability for the same
29 calendar month of the preceding year. The amount of such
30 quarter monthly payments shall be credited against the final
31 tax liability of the taxpayer's return for that month filed
32 under this Section or Section 2f, as the case may be. Once
33 applicable, the requirement of the making of quarter monthly
34 payments to the Department pursuant to this paragraph shall
-53- LRB9111084SMdvam04
1 continue until such taxpayer's average monthly prepaid tax
2 collections during the preceding 2 complete calendar quarters
3 is $25,000 or less. If any such quarter monthly payment is
4 not paid at the time or in the amount required, the taxpayer
5 shall be liable for penalties and interest on such
6 difference, except insofar as the taxpayer has previously
7 made payments for that month in excess of the minimum
8 payments previously due.
9 If any payment provided for in this Section exceeds the
10 taxpayer's liabilities under this Act, the Use Tax Act, the
11 Service Occupation Tax Act and the Service Use Tax Act, as
12 shown on an original monthly return, the Department shall, if
13 requested by the taxpayer, issue to the taxpayer a credit
14 memorandum no later than 30 days after the date of payment.
15 The credit evidenced by such credit memorandum may be
16 assigned by the taxpayer to a similar taxpayer under this
17 Act, the Use Tax Act, the Service Occupation Tax Act or the
18 Service Use Tax Act, in accordance with reasonable rules and
19 regulations to be prescribed by the Department. If no such
20 request is made, the taxpayer may credit such excess payment
21 against tax liability subsequently to be remitted to the
22 Department under this Act, the Use Tax Act, the Service
23 Occupation Tax Act or the Service Use Tax Act, in accordance
24 with reasonable rules and regulations prescribed by the
25 Department. If the Department subsequently determined that
26 all or any part of the credit taken was not actually due to
27 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
28 shall be reduced by 2.1% or 1.75% of the difference between
29 the credit taken and that actually due, and that taxpayer
30 shall be liable for penalties and interest on such
31 difference.
32 If a retailer of motor fuel is entitled to a credit under
33 Section 2d of this Act which exceeds the taxpayer's liability
34 to the Department under this Act for the month which the
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1 taxpayer is filing a return, the Department shall issue the
2 taxpayer a credit memorandum for the excess.
3 Beginning January 1, 1990, each month the Department
4 shall pay into the Local Government Tax Fund, a special fund
5 in the State treasury which is hereby created, the net
6 revenue realized for the preceding month from the 1% tax on
7 sales of food for human consumption which is to be consumed
8 off the premises where it is sold (other than alcoholic
9 beverages, soft drinks and food which has been prepared for
10 immediate consumption) and prescription and nonprescription
11 medicines, drugs, medical appliances and insulin, urine
12 testing materials, syringes and needles used by diabetics.
13 Beginning January 1, 1990, each month the Department
14 shall pay into the County and Mass Transit District Fund, a
15 special fund in the State treasury which is hereby created,
16 4% of the net revenue realized for the preceding month from
17 the 6.25% general rate.
18 Beginning January 1, 1990, each month the Department
19 shall pay into the Local Government Tax Fund 16% of the net
20 revenue realized for the preceding month from the 6.25%
21 general rate on the selling price of tangible personal
22 property.
23 Of the remainder of the moneys received by the Department
24 pursuant to this Act, (a) 1.75% thereof shall be paid into
25 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
26 and on and after July 1, 1989, 3.8% thereof shall be paid
27 into the Build Illinois Fund; provided, however, that if in
28 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
29 as the case may be, of the moneys received by the Department
30 and required to be paid into the Build Illinois Fund pursuant
31 to this Act, Section 9 of the Use Tax Act, Section 9 of the
32 Service Use Tax Act, and Section 9 of the Service Occupation
33 Tax Act, such Acts being hereinafter called the "Tax Acts"
34 and such aggregate of 2.2% or 3.8%, as the case may be, of
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1 moneys being hereinafter called the "Tax Act Amount", and (2)
2 the amount transferred to the Build Illinois Fund from the
3 State and Local Sales Tax Reform Fund shall be less than the
4 Annual Specified Amount (as hereinafter defined), an amount
5 equal to the difference shall be immediately paid into the
6 Build Illinois Fund from other moneys received by the
7 Department pursuant to the Tax Acts; the "Annual Specified
8 Amount" means the amounts specified below for fiscal years
9 1986 through 1993:
10 Fiscal Year Annual Specified Amount
11 1986 $54,800,000
12 1987 $76,650,000
13 1988 $80,480,000
14 1989 $88,510,000
15 1990 $115,330,000
16 1991 $145,470,000
17 1992 $182,730,000
18 1993 $206,520,000;
19 and means the Certified Annual Debt Service Requirement (as
20 defined in Section 13 of the Build Illinois Bond Act) or the
21 Tax Act Amount, whichever is greater, for fiscal year 1994
22 and each fiscal year thereafter; and further provided, that
23 if on the last business day of any month the sum of (1) the
24 Tax Act Amount required to be deposited into the Build
25 Illinois Bond Account in the Build Illinois Fund during such
26 month and (2) the amount transferred to the Build Illinois
27 Fund from the State and Local Sales Tax Reform Fund shall
28 have been less than 1/12 of the Annual Specified Amount, an
29 amount equal to the difference shall be immediately paid into
30 the Build Illinois Fund from other moneys received by the
31 Department pursuant to the Tax Acts; and, further provided,
32 that in no event shall the payments required under the
33 preceding proviso result in aggregate payments into the Build
34 Illinois Fund pursuant to this clause (b) for any fiscal year
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1 in excess of the greater of (i) the Tax Act Amount or (ii)
2 the Annual Specified Amount for such fiscal year. The
3 amounts payable into the Build Illinois Fund under clause (b)
4 of the first sentence in this paragraph shall be payable only
5 until such time as the aggregate amount on deposit under each
6 trust indenture securing Bonds issued and outstanding
7 pursuant to the Build Illinois Bond Act is sufficient, taking
8 into account any future investment income, to fully provide,
9 in accordance with such indenture, for the defeasance of or
10 the payment of the principal of, premium, if any, and
11 interest on the Bonds secured by such indenture and on any
12 Bonds expected to be issued thereafter and all fees and costs
13 payable with respect thereto, all as certified by the
14 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
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 first sentence of this paragraph and shall reduce the
29 amount otherwise payable for such fiscal year pursuant to
30 that clause (b). The moneys received by the Department
31 pursuant to this Act and required to be deposited into the
32 Build Illinois Fund are subject to the pledge, claim and
33 charge set forth in Section 12 of the Build Illinois Bond
34 Act.
-57- LRB9111084SMdvam04
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 sums designated as
8 "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 108,000,000
30 2008 115,000,000
31 2009 120,000,000
32 2010 126,000,000
33 2011 132,000,000
34 2012 138,000,000
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1 2013 and 145,000,000
2 each fiscal year
3 thereafter that bonds
4 are outstanding under
5 Section 13.2 of the
6 Metropolitan Pier and
7 Exposition Authority
8 Act, but not after fiscal year 2029.
9 Beginning July 20, 1993 and in each month of each fiscal
10 year thereafter, one-eighth of the amount requested in the
11 certificate of the Chairman of the Metropolitan Pier and
12 Exposition Authority for that fiscal year, less the amount
13 deposited into the McCormick Place Expansion Project Fund by
14 the State Treasurer in the respective month under subsection
15 (g) of Section 13 of the Metropolitan Pier and Exposition
16 Authority Act, plus cumulative deficiencies in the deposits
17 required under this Section for previous months and years,
18 shall be deposited into the McCormick Place Expansion Project
19 Fund, until the full amount requested for the fiscal year,
20 but not in excess of the amount specified above as "Total
21 Deposit", has been deposited.
22 Subject to payment of amounts into the Build Illinois
23 Fund and the McCormick Place Expansion Project Fund pursuant
24 to the preceding paragraphs or in any amendment thereto
25 hereafter enacted, each month the Department shall pay into
26 the Local Government Distributive Fund 0.4% of the net
27 revenue realized for the preceding month from the 5% general
28 rate or 0.4% of 80% of the net revenue realized for the
29 preceding month from the 6.25% general rate, as the case may
30 be, on the selling price of tangible personal property which
31 amount shall, subject to appropriation, be distributed as
32 provided in Section 2 of the State Revenue Sharing Act. No
33 payments or distributions pursuant to this paragraph shall be
34 made if the tax imposed by this Act on photoprocessing
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1 products is declared unconstitutional, or if the proceeds
2 from such tax are unavailable for distribution because of
3 litigation.
4 Subject to payment of amounts into the Build Illinois
5 Fund, the McCormick Place Expansion Project to the preceding
6 paragraphs or in any amendments thereto hereafter enacted,
7 beginning July 1, 1993, the Department shall each month pay
8 into the Illinois Tax Increment Fund 0.27% of 80% of the net
9 revenue realized for the preceding month from the 6.25%
10 general rate on the selling price of tangible personal
11 property.
12 Of the remainder of the moneys received by the Department
13 pursuant to this Act, 75% thereof shall be paid into the
14 State Treasury and 25% shall be reserved in a special account
15 and used only for the transfer to the Common School Fund as
16 part of the monthly transfer from the General Revenue Fund in
17 accordance with Section 8a of the State Finance Act.
18 The Department may, upon separate written notice to a
19 taxpayer, require the taxpayer to prepare and file with the
20 Department on a form prescribed by the Department within not
21 less than 60 days after receipt of the notice an annual
22 information return for the tax year specified in the notice.
23 Such annual return to the Department shall include a
24 statement of gross receipts as shown by the retailer's last
25 Federal income tax return. If the total receipts of the
26 business as reported in the Federal income tax return do not
27 agree with the gross receipts reported to the Department of
28 Revenue for the same period, the retailer shall attach to his
29 annual return a schedule showing a reconciliation of the 2
30 amounts and the reasons for the difference. The retailer's
31 annual return to the Department shall also disclose the cost
32 of goods sold by the retailer during the year covered by such
33 return, opening and closing inventories of such goods for
34 such year, costs of goods used from stock or taken from stock
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1 and given away by the retailer during such year, payroll
2 information of the retailer's business during such year and
3 any additional reasonable information which the Department
4 deems would be helpful in determining the accuracy of the
5 monthly, quarterly or annual returns filed by such retailer
6 as provided for in this Section.
7 If the annual information return required by this Section
8 is not filed when and as required, the taxpayer shall be
9 liable as follows:
10 (i) Until January 1, 1994, the taxpayer shall be
11 liable for a penalty equal to 1/6 of 1% of the tax due
12 from such taxpayer under this Act during the period to be
13 covered by the annual return for each month or fraction
14 of a month until such return is filed as required, the
15 penalty to be assessed and collected in the same manner
16 as any other penalty provided for in this Act.
17 (ii) On and after January 1, 1994, the taxpayer
18 shall be liable for a penalty as described in Section 3-4
19 of the Uniform Penalty and Interest Act.
20 The chief executive officer, proprietor, owner or highest
21 ranking manager shall sign the annual return to certify the
22 accuracy of the information contained therein. Any person
23 who willfully signs the annual return containing false or
24 inaccurate information shall be guilty of perjury and
25 punished accordingly. The annual return form prescribed by
26 the Department shall include a warning that the person
27 signing the return may be liable for perjury.
28 The provisions of this Section concerning the filing of
29 an annual information return do not apply to a retailer who
30 is not required to file an income tax return with the United
31 States Government.
32 As soon as possible after the first day of each month,
33 upon certification of the Department of Revenue, the
34 Comptroller shall order transferred and the Treasurer shall
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1 transfer from the General Revenue Fund to the Motor Fuel Tax
2 Fund an amount equal to 1.7% of 80% of the net revenue
3 realized under this Act for the second preceding month.
4 Beginning April 1, 2000, this transfer is no longer required
5 and shall not be made.
6 Net revenue realized for a month shall be the revenue
7 collected by the State pursuant to this Act, less the amount
8 paid out during that month as refunds to taxpayers for
9 overpayment of liability.
10 For greater simplicity of administration, manufacturers,
11 importers and wholesalers whose products are sold at retail
12 in Illinois by numerous retailers, and who wish to do so, may
13 assume the responsibility for accounting and paying to the
14 Department all tax accruing under this Act with respect to
15 such sales, if the retailers who are affected do not make
16 written objection to the Department to this arrangement.
17 Any person who promotes, organizes, provides retail
18 selling space for concessionaires or other types of sellers
19 at the Illinois State Fair, DuQuoin State Fair, county fairs,
20 local fairs, art shows, flea markets and similar exhibitions
21 or events, including any transient merchant as defined by
22 Section 2 of the Transient Merchant Act of 1987, is required
23 to file a report with the Department providing the name of
24 the merchant's business, the name of the person or persons
25 engaged in merchant's business, the permanent address and
26 Illinois Retailers Occupation Tax Registration Number of the
27 merchant, the dates and location of the event and other
28 reasonable information that the Department may require. The
29 report must be filed not later than the 20th day of the month
30 next following the month during which the event with retail
31 sales was held. Any person who fails to file a report
32 required by this Section commits a business offense and is
33 subject to a fine not to exceed $250.
34 Any person engaged in the business of selling tangible
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1 personal property at retail as a concessionaire or other type
2 of seller at the Illinois State Fair, county fairs, art
3 shows, flea markets and similar exhibitions or events, or any
4 transient merchants, as defined by Section 2 of the Transient
5 Merchant Act of 1987, may be required to make a daily report
6 of the amount of such sales to the Department and to make a
7 daily payment of the full amount of tax due. The Department
8 shall impose this requirement when it finds that there is a
9 significant risk of loss of revenue to the State at such an
10 exhibition or event. Such a finding shall be based on
11 evidence that a substantial number of concessionaires or
12 other sellers who are not residents of Illinois will be
13 engaging in the business of selling tangible personal
14 property at retail at the exhibition or event, or other
15 evidence of a significant risk of loss of revenue to the
16 State. The Department shall notify concessionaires and other
17 sellers affected by the imposition of this requirement. In
18 the absence of notification by the Department, the
19 concessionaires and other sellers shall file their returns as
20 otherwise required in this Section.
21 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98;
22 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff.
23 7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)
24 (35 ILCS 120/6) (from Ch. 120, par. 445)
25 Sec. 6. Credit memorandum or refund. If it appears, after
26 claim therefor filed with the Department, that an amount of
27 tax or penalty or interest has been paid which was not due
28 under this Act, whether as the result of a mistake of fact or
29 an error of law, except as hereinafter provided, then the
30 Department shall issue a credit memorandum or refund to the
31 person who made the erroneous payment or, if that person died
32 or became a person under legal disability, to his or her
33 legal representative, as such. For purposes of this Section,
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1 the tax is deemed to be erroneously paid by a retailer when
2 the manufacturer of a motor vehicle sold by the retailer
3 accepts the return of that automobile and refunds to the
4 purchaser the selling price of that vehicle as provided in
5 the New Vehicle Buyer Protection Act. When a motor vehicle is
6 returned for a refund of the purchase price under the New
7 Vehicle Buyer Protection Act, the Department shall issue a
8 credit memorandum or a refund for the amount of tax paid by
9 the retailer under this Act attributable to the initial sale
10 of that vehicle. Claims submitted by the retailer are subject
11 to the same restrictions and procedures provided for in this
12 Act. If it is determined that the Department should issue a
13 credit memorandum or refund, the Department may first apply
14 the amount thereof against any tax or penalty or interest due
15 or to become due under this Act or under the Use Tax Act, the
16 Service Occupation Tax Act, the Service Use Tax Act, any
17 local occupation or use tax administered by the Department
18 the Municipal Retailers' Occupation Tax Act, the Municipal
19 Use Tax Act, the Municipal Service Occupation Tax Act, the
20 County Retailers' Occupation Tax Act, the County
21 Supplementary Retailers' Occupation Tax Act, the County
22 Service Occupation Tax Act, the County Supplementary Service
23 Occupation Tax Act, the County Use Tax Act, the County
24 Supplementary Use Tax Act, Section 4 of the Water Commission
25 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
26 the Local Mass Transit District Act, or subsections (e), (f)
27 and (g) of Section 4.03 of the Regional Transportation
28 Authority Act, from the person who made the erroneous
29 payment. If no tax or penalty or interest is due and no
30 proceeding is pending to determine whether such person is
31 indebted to the Department for tax or penalty or interest,
32 the credit memorandum or refund shall be issued to the
33 claimant; or (in the case of a credit memorandum) the credit
34 memorandum may be assigned and set over by the lawful holder
-64- LRB9111084SMdvam04
1 thereof, subject to reasonable rules of the Department, to
2 any other person who is subject to this Act, the Use Tax Act,
3 the Service Occupation Tax Act, the Service Use Tax Act, any
4 local occupation or use tax administered by the Department
5 the Municipal Retailers' Occupation Tax Act, the Municipal
6 Use Tax Act, the Municipal Service Occupation Tax Act, the
7 County Retailers' Occupation Tax Act, the County
8 Supplementary Retailers' Occupation Tax Act, the County
9 Service Occupation Tax Act, the County Supplementary Service
10 Occupation Tax Act, the County Use Tax Act, the County
11 Supplementary Use Tax Act, Section 4 of the Water Commission
12 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
13 the Local Mass Transit District Act, or subsections (e), (f)
14 and (g) of Section 4.03 of the Regional Transportation
15 Authority Act, and the amount thereof applied by the
16 Department against any tax or penalty or interest due or to
17 become due under this Act or under the Use Tax Act, the
18 Service Occupation Tax Act, the Service Use Tax Act, any
19 local occupation or use tax administered by the Department
20 the Municipal Retailers' Occupation Tax Act, the Municipal
21 Use Tax Act, the Municipal Service Occupation Tax Act, the
22 County Retailers' Occupation Tax Act, the County
23 Supplementary Retailers' Occupation Tax Act, the County
24 Service Occupation Tax Act, the County Supplementary Service
25 Occupation Tax Act, the County Use Tax Act, the County
26 Supplementary Use Tax Act, Section 4 of the Water Commission
27 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
28 the Local Mass Transit District Act, or subsections (e), (f)
29 and (g) of Section 4.03 of the Regional Transportation
30 Authority Act, from such assignee. However, as to any claim
31 for credit or refund filed with the Department on and after
32 each January 1 and July 1 no amount of tax or penalty or
33 interest erroneously paid (either in total or partial
34 liquidation of a tax or penalty or amount of interest under
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1 this Act) more than 3 years prior to such January 1 and July
2 1, respectively, shall be credited or refunded, except that
3 if both the Department and the taxpayer have agreed to an
4 extension of time to issue a notice of tax liability as
5 provided in Section 4 of this Act, such claim may be filed at
6 any time prior to the expiration of the period agreed upon.
7 No claim may be allowed for any amount paid to the
8 Department, whether paid voluntarily or involuntarily, if
9 paid in total or partial liquidation of an assessment which
10 had become final before the claim for credit or refund to
11 recover the amount so paid is filed with the Department, or
12 if paid in total or partial liquidation of a judgment or
13 order of court. No credit may be allowed or refund made for
14 any amount paid by or collected from any claimant unless it
15 appears (a) that the claimant bore the burden of such amount
16 and has not been relieved thereof nor reimbursed therefor and
17 has not shifted such burden directly or indirectly through
18 inclusion of such amount in the price of the tangible
19 personal property sold by him or her or in any manner
20 whatsoever; and that no understanding or agreement, written
21 or oral, exists whereby he or she or his or her legal
22 representative may be relieved of the burden of such amount,
23 be reimbursed therefor or may shift the burden thereof; or
24 (b) that he or she or his or her legal representative has
25 repaid unconditionally such amount to his or her vendee (1)
26 who bore the burden thereof and has not shifted such burden
27 directly or indirectly, in any manner whatsoever; (2) who, if
28 he or she has shifted such burden, has repaid unconditionally
29 such amount to his own vendee; and (3) who is not entitled to
30 receive any reimbursement therefor from any other source than
31 from his or her vendor, nor to be relieved of such burden in
32 any manner whatsoever. No credit may be allowed or refund
33 made for any amount paid by or collected from any claimant
34 unless it appears that the claimant has unconditionally
-66- LRB9111084SMdvam04
1 repaid, to the purchaser, any amount collected from the
2 purchaser and retained by the claimant with respect to the
3 same transaction under the Use Tax Act.
4 Any credit or refund that is allowed under this Section
5 shall bear interest at the rate and in the manner specified
6 in the Uniform Penalty and Interest Act.
7 In case the Department determines that the claimant is
8 entitled to a refund, such refund shall be made only from
9 such appropriation as may be available for that purpose. If
10 it appears unlikely that the amount appropriated would permit
11 everyone having a claim allowed during the period covered by
12 such appropriation to elect to receive a cash refund, the
13 Department, by rule or regulation, shall provide for the
14 payment of refunds in hardship cases and shall define what
15 types of cases qualify as hardship cases.
16 If a retailer who has failed to pay retailers' occupation
17 tax on gross receipts from retail sales is required by the
18 Department to pay such tax, such retailer, without filing any
19 formal claim with the Department, shall be allowed to take
20 credit against such retailers' occupation tax liability to
21 the extent, if any, to which such retailer has paid an amount
22 equivalent to retailers' occupation tax or has paid use tax
23 in error to his or her vendor or vendors of the same tangible
24 personal property which such retailer bought for resale and
25 did not first use before selling it, and no penalty or
26 interest shall be charged to such retailer on the amount of
27 such credit. However, when such credit is allowed to the
28 retailer by the Department, the vendor is precluded from
29 refunding any of that tax to the retailer and filing a claim
30 for credit or refund with respect thereto with the
31 Department. The provisions of this amendatory Act shall be
32 applied retroactively, regardless of the date of the
33 transaction.
34 (Source: P.A. 89-359, eff. 8-17-95.)
-67- LRB9111084SMdvam04
1 Section 30. The Cigarette Tax Act is amended by changing
2 Sections 4 and 6 as follows:
3 (35 ILCS 130/4) (from Ch. 120, par. 453.4)
4 Sec. 4. Distributor's license. No person may engage in
5 business as a distributor of cigarettes in this State within
6 the meaning of the first 2 definitions of distributor in
7 Section 1 of this Act without first having obtained a license
8 therefor from the Department. Application for license shall
9 be made to the Department in form as furnished and prescribed
10 by the Department. Each applicant for a license under this
11 Section shall furnish to the Department on the form signed
12 and verified by the applicant the following information:
13 (a) The name and address of the applicant;
14 (b) The address of the location at which the applicant
15 proposes to engage in business as a distributor of cigarettes
16 in this State;
17 (c) Such other additional information as the Department
18 may lawfully require by its rules and regulations.
19 The annual license fee payable to the Department for each
20 distributor's license shall be $250. The purpose of such
21 annual license fee is to defray the cost, to the Department,
22 of coding, serializing or coding and serializing cigarette
23 tax stamps. Each applicant for license shall pay such fee to
24 the Department at the time of submitting his application for
25 license to the Department.
26 Every applicant who is required to procure a
27 distributor's license shall file with his application a joint
28 and several bond. Such bond shall be executed to the
29 Department of Revenue, with good and sufficient surety or
30 sureties residing or licensed to do business within the State
31 of Illinois, in the amount of $2,500, conditioned upon the
32 true and faithful compliance by the licensee with all of the
33 provisions of this Act. Such bond, or a reissue thereof, or a
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1 substitute therefor, shall be kept in effect during the
2 entire period covered by the license. A separate application
3 for license shall be made, a separate annual license fee
4 paid, and a separate bond filed, for each place of business
5 at which a person who is required to procure a distributor's
6 license under this Section proposes to engage in business as
7 a distributor in Illinois under this Act.
8 The following are ineligible to receive a distributor's
9 license under this Act:
10 (1) a person who is not of good character and reputation
11 in the community in which he resides;
12 (2) a person who has been convicted of a felony under
13 any Federal or State law, if the Department, after
14 investigation and a hearing, if requested by the applicant,
15 determines that such person has not been sufficiently
16 rehabilitated to warrant the public trust;
17 (3) a corporation, if any officer, manager or director
18 thereof, or any stockholder or stockholders owning in the
19 aggregate more than 5% of the stock of such corporation,
20 would not be eligible to receive a license under this Act for
21 any reason.
22 The Department, upon receipt of an application, license
23 fee and bond in proper form, from a person who is eligible to
24 receive a distributor's license under this Act, shall issue
25 to such applicant a license in form as prescribed by the
26 Department, which license shall permit the applicant to which
27 it is issued to engage in business as a distributor at the
28 place shown in his application. All licenses issued by the
29 Department under this Act shall be valid for not to exceed
30 one year after issuance unless sooner revoked, canceled or
31 suspended as provided in this Act. No license issued under
32 this Act is transferable or assignable. Such license shall be
33 conspicuously displayed in the place of business conducted by
34 the licensee in Illinois under such license.
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1 Any person aggrieved by any decision of the Department
2 under this Section may, within 20 days after notice of the
3 decision, protest and request a hearing. Upon receiving a
4 request for a hearing, the Department shall give notice to
5 the person requesting the hearing of the time and place fixed
6 for the hearing and shall hold a hearing in conformity with
7 the provisions of this Act and then issue its final
8 administrative decision in the matter to that person. In the
9 absence of a protest and request for a hearing within 20
10 days, the Department's decision shall become final without
11 any further determination being made or notice given.
12 (Source: P.A. 78-255.)
13 (35 ILCS 130/6) (from Ch. 120, par. 453.6)
14 Sec. 6. Revocation, cancellation, or suspension of
15 license. The Department may, after notice and hearing as
16 provided for by this Act, revoke, cancel or suspend the
17 license of any distributor for the violation of any provision
18 of this Act, or for noncompliance with any provision herein
19 contained, or for any noncompliance with any lawful rule or
20 regulation promulgated by the Department under Section 8 of
21 this Act, or because the licensee is determined to be
22 ineligible for a distributor's license for any one or more of
23 the reasons provided for in Section 4 of this Act. However,
24 no such license shall be revoked, cancelled or suspended,
25 except after a hearing by the Department with notice to the
26 distributor, as aforesaid, and affording such distributor a
27 reasonable opportunity to appear and defend, and any
28 distributor aggrieved by any decision of the Department with
29 respect thereto may have the determination of the Department
30 judicially reviewed, as herein provided. Notice of such
31 hearing shall be in writing and shall contain a statement of
32 the charges preferred against the distributor.
33 Any distributor aggrieved by any decision of the
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1 Department under this Section may, within 20 days after
2 notice of the decision, protest and request a hearing. Upon
3 receiving a request for a hearing, the Department shall give
4 notice in writing to the distributor requesting the hearing
5 that contains a statement of the charges preferred against
6 the distributor and that states the time and place fixed for
7 the hearing. The Department shall hold the hearing in
8 conformity with the provisions of this Act and then issue its
9 final administrative decision in the matter to the
10 distributor. In the absence of a protest and request for a
11 hearing within 20 days, the Department's decision shall
12 become final without any further determination being made or
13 notice given.
14 No license so revoked, as aforesaid, shall be reissued to
15 any such distributor within a period of 6 months after the
16 date of the final determination of such revocation. No such
17 license shall be reissued at all so long as the person who
18 would receive the license is ineligible to receive a
19 distributor's license under this Act for any one or more of
20 the reasons provided for in Section 4 of this Act.
21 The Department upon complaint filed in the circuit court
22 may by injunction restrain any person who fails, or refuses,
23 to comply with any of the provisions of this Act from acting
24 as a distributor of cigarettes in this State.
25 (Source: P.A. 79-1365; 79-1366.)
26 Section 35. The Cigarette Use Tax Act is amended by
27 changing Sections 4 and 6 as follows:
28 (35 ILCS 135/4) (from Ch. 120, par. 453.34)
29 Sec. 4. Distributor's license. A distributor maintaining
30 a place of business in this State, if required to procure a
31 license or allowed to obtain a permit as a distributor under
32 the Cigarette Tax Act, need not obtain an additional license
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1 or permit under this Act, but shall be deemed to be
2 sufficiently licensed or registered by virtue of his being
3 licensed or registered under the Cigarette Tax Act.
4 Every distributor maintaining a place of business in this
5 State, if not required to procure a license or allowed to
6 obtain a permit as a distributor under the Cigarette Tax Act,
7 shall make a verified application to the Department (upon a
8 form prescribed and furnished by the Department) for a
9 license to act as a distributor under this Act. In completing
10 such application, the applicant shall furnish such
11 information as the Department may reasonably require.
12 The annual license fee payable to the Department for each
13 distributor's license shall be $250. The purpose of such
14 annual license fee is to defray the cost, to the Department,
15 of coding, serializing or coding and serializing cigarette
16 tax stamps. The applicant for license shall pay such fee to
17 the Department at the time of submitting the application for
18 license to the Department.
19 Such applicant shall file, with his application, a joint
20 and several bond. Such bond shall be executed to the
21 Department of Revenue, with good and sufficient surety or
22 sureties residing or licensed to do business within the State
23 of Illinois, in the amount of $2,500, conditioned upon the
24 true and faithful compliance by the licensee with all of the
25 provisions of this Act. Such bond, or a reissue thereof, or a
26 substitute therefor, shall be kept in effect during the
27 entire period covered by the license. A separate application
28 for license shall be made, a separate annual license fee
29 paid, and a separate bond filed, for each place of business
30 at or from which the applicant proposes to act as a
31 distributor under this Act and for which the applicant is not
32 required to procure a license or allowed to obtain a permit
33 as a distributor under the Cigarette Tax Act.
34 The following are ineligible to receive a distributor's
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1 license under this Act:
2 (1) a person who is not of good character and reputation
3 in the community in which he resides;
4 (2) a person who has been convicted of a felony under
5 any Federal or State law, if the Department, after
6 investigation and a hearing, if requested by the applicant,
7 determines that such person has not been sufficiently
8 rehabilitated to warrant the public trust;
9 (3) a corporation, if any officer, manager or director
10 thereof, or any stockholder or stockholders owning in the
11 aggregate more than 5% of the stock of such corporation,
12 would not be eligible to receive a license hereunder for any
13 reason.
14 Upon approval of such application and bond and payment of
15 the required annual license fee, the Department shall issue a
16 license to the applicant. Such license shall permit the
17 applicant to engage in business as a distributor at or from
18 the place shown in his application. All licenses issued by
19 the Department under this Act shall be valid for not to
20 exceed one year after issuance unless sooner revoked,
21 canceled or suspended as in this Act provided. No license
22 issued under this Act is transferable or assignable. Such
23 license shall be conspicuously displayed at the place of
24 business for which it is issued.
25 Any person aggrieved by any decision of the Department
26 under this Section may, within 20 days after notice of the
27 decision, protest and request a hearing. Upon receiving a
28 request for a hearing, the Department shall give notice to
29 the person requesting the hearing of the time and place fixed
30 for the hearing and shall hold a hearing in conformity with
31 the provisions of this Act and then issue its final
32 administrative decision in the matter to that person. In the
33 absence of a protest and request for a hearing within 20
34 days, the Department's decision shall become final without
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1 any further determination being made or notice given.
2 (Source: P.A. 78-255.)
3 (35 ILCS 135/6) (from Ch. 120, par. 453.36)
4 Sec. 6. Revocation, cancellation, or suspension of
5 license. The Department may, after notice and hearing as
6 provided for by this Act, revoke, cancel or suspend the
7 license of any distributor for the violation of any provision
8 of this Act, or for non-compliance with any provision herein
9 contained, or for any non-compliance with any lawful rule or
10 regulation promulgated by the Department under Section 21 of
11 this Act, or because the licensee is determined to be
12 ineligible for a distributor's license for any one or more of
13 the reasons provided for in Section 4 of this Act. However,
14 no such license shall be revoked, canceled or suspended,
15 except after a hearing by the Department with notice to the
16 distributor, as aforesaid, and affording such distributor a
17 reasonable opportunity to appear and defend, and any
18 distributor aggrieved by any decision of the Department with
19 respect thereto may have the determination of the Department
20 judicially reviewed, as herein provided. Notice of such
21 hearing shall be in writing and shall contain a statement of
22 the charges preferred against the distributor.
23 Any distributor aggrieved by any decision of the
24 Department under this Section may, within 20 days after
25 notice of the decision, protest and request a hearing. Upon
26 receiving a request for a hearing, the Department shall give
27 notice in writing to the distributor requesting the hearing
28 that contains a statement of the charges preferred against
29 the distributor and that states the time and place fixed for
30 the hearing. The Department shall hold the hearing in
31 conformity with the provisions of this Act and then issue its
32 final administrative decision in the matter to the
33 distributor. In the absence of a protest and request for a
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1 hearing within 20 days, the Department's decision shall
2 become final without any further determination being made or
3 notice given.
4 No license so revoked, shall be reissued to any such
5 distributor within a period of 6 months after the date of the
6 final determination of such revocation. No such license
7 shall be reissued at all so long as the person who would
8 receive the license is ineligible to receive a distributor's
9 license under this Act for any one or more of the reasons
10 provided for in Section 4 of this Act.
11 The Department upon complaint filed in the circuit court
12 may by injunction restrain any person who fails, or refuses,
13 to comply with this Act from acting as a distributor of
14 cigarettes in this State.
15 (Source: P.A. 79-1365; 79-1366.)
16 Section 40. The Public Utilities Act is amended by
17 changing Section 8-403.1 as follows:
18 (220 ILCS 5/8-403.1) (from Ch. 111 2/3, par. 8-403.1)
19 Sec. 8-403.1. Electricity purchased from qualified solid
20 waste energy facility; tax credit; distributions for economic
21 development.
22 (a) It is hereby declared to be the policy of this State
23 to encourage the development of alternate energy production
24 facilities in order to conserve our energy resources and to
25 provide for their most efficient use.
26 (b) For the purpose of this Section and Section 9-215.1,
27 "qualified solid waste energy facility" means a facility
28 determined by the Illinois Commerce Commission to qualify as
29 such under the Local Solid Waste Disposal Act, to use methane
30 gas generated from landfills as its primary fuel, and to
31 possess characteristics that would enable it to qualify as a
32 cogeneration or small power production facility under federal
-75- LRB9111084SMdvam04
1 law.
2 (c) In furtherance of the policy declared in this
3 Section, the Illinois Commerce Commission shall require
4 electric utilities to enter into long-term contracts to
5 purchase electricity from qualified solid waste energy
6 facilities located in the electric utility's service area,
7 for a period beginning on the date that the facility begins
8 generating electricity and having a duration of not less than
9 10 years in the case of facilities fueled by
10 landfill-generated methane, or 20 years in the case of
11 facilities fueled by methane generated from a landfill owned
12 by a forest preserve district. The purchase rate contained
13 in such contracts shall be equal to the average amount per
14 kilowatt-hour paid from time to time by the unit or units of
15 local government in which the electricity generating
16 facilities are located, excluding amounts paid for street
17 lighting and pumping service.
18 (d) Whenever a public utility is required to purchase
19 electricity pursuant to subsection (c) above, it shall be
20 entitled to credits in respect of its obligations to remit to
21 the State taxes it has collected under the Electricity Excise
22 Tax Law equal to the amounts, if any, by which payments for
23 such electricity exceed (i) the then current rate at which
24 the utility must purchase the output of qualified facilities
25 pursuant to the federal Public Utility Regulatory Policies
26 Act of 1978, less (ii) any costs, expenses, losses, damages
27 or other amounts incurred by the utility, or for which it
28 becomes liable, arising out of its failure to obtain such
29 electricity from such other sources. The amount of any such
30 credit shall, in the first instance, be determined by the
31 utility, which shall make a monthly report of such credits to
32 the Illinois Commerce Commission and, on its monthly tax
33 return, to the Illinois Department of Revenue. Under no
34 circumstances shall a utility be required to purchase
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1 electricity from a qualified solid waste energy facility at
2 the rate prescribed in subsection (c) of this Section if such
3 purchase would result in estimated tax credits that exceed,
4 on a monthly basis, the utility's estimated obligation to
5 remit to the State taxes it has collected under the
6 Electricity Excise Tax Law. The owner or operator shall
7 negotiate facility operating conditions with the purchasing
8 utility in accordance with that utility's posted standard
9 terms and conditions for small power producers. If the
10 Department of Revenue disputes the amount of any such credit,
11 such dispute shall be decided by the Illinois Commerce
12 Commission. Whenever a qualified solid waste energy facility
13 has paid or otherwise satisfied in full the capital costs or
14 indebtedness incurred in developing and implementing the
15 qualified facility, the qualified facility shall reimburse
16 the Public Utility Fund and the General Revenue Fund in the
17 State treasury for the actual reduction in payments to those
18 Funds caused by this subsection (d) in a manner to be
19 determined by the Illinois Commerce Commission and based on
20 the manner in which revenues for those Funds were reduced.
21 (e) The Illinois Commerce Commission shall not require
22 an electric utility to purchase electricity from any
23 qualified solid waste energy facility which is owned or
24 operated by an entity that is primarily engaged in the
25 business of producing or selling electricity, gas, or useful
26 thermal energy from a source other than one or more qualified
27 solid waste energy facilities.
28 (f) This Section does not require an electric utility to
29 construct additional facilities unless those facilities are
30 paid for by the owner or operator of the affected qualified
31 solid waste energy facility.
32 (g) The Illinois Commerce Commission shall require that:
33 (1) electric utilities use the electricity purchased from a
34 qualified solid waste energy facility to displace electricity
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1 generated from nuclear power or coal mined and purchased
2 outside the boundaries of the State of Illinois before
3 displacing electricity generated from coal mined and
4 purchased within the State of Illinois, to the extent
5 possible, and (2) electric utilities report annually to the
6 Commission on the extent of such displacements.
7 (h) Nothing in this Section is intended to cause an
8 electric utility that is required to purchase power hereunder
9 to incur any economic loss as a result of its purchase. All
10 amounts paid for power which a utility is required to
11 purchase pursuant to subparagraph (c) shall be deemed to be
12 costs prudently incurred for purposes of computing charges
13 under rates authorized by Section 9-220 of this Act. Tax
14 credits provided for herein shall be reflected in charges
15 made pursuant to rates so authorized to the extent such
16 credits are based upon a cost which is also reflected in such
17 charges.
18 (i) Beginning in February 1999 and through January 2009,
19 each qualified solid waste energy facility that sells
20 electricity to an electric utility at the purchase rate
21 described in subsection (c) shall file with the Department of
22 Revenue State Treasurer on or before the 15th of each month a
23 form, prescribed by the Department of Revenue State
24 Treasurer, that states the number of kilowatt hours of
25 electricity for which payment was received at that purchase
26 rate from electric utilities in Illinois during the
27 immediately preceding month. This form shall be accompanied
28 by a payment from the qualified solid waste energy facility
29 in an amount equal to six-tenths of a mill ($0.0006) per
30 kilowatt hour of electricity stated on the form. Payments
31 received by the Department of Revenue State Treasurer shall
32 be deposited into the Municipal Economic Development Fund, a
33 trust fund created outside the State treasury. The State
34 Treasurer may invest the moneys in the Fund in any investment
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1 authorized by the Public Funds Investment Act, and investment
2 income shall be deposited into and become part of the Fund.
3 Moneys in the Fund shall be used by the State Treasurer as
4 provided in subsection (j). The obligation of a qualified
5 solid waste energy facility to make payments into the
6 Municipal Economic Development Fund shall terminate upon
7 either: (1) expiration or termination of a facility's
8 contract to sell electricity to an electric utility at the
9 purchase rate described in subsection (c); or (2) entry of an
10 enforceable, final, and non-appealable order by a court of
11 competent jurisdiction that Public Act 89-448 is invalid.
12 Payments by a qualified solid waste energy facility into the
13 Municipal Economic Development Fund do not relieve the
14 qualified solid waste energy facility of its obligation to
15 reimburse the Public Utility Fund and the General Revenue
16 Fund for the actual reduction in payments to those Funds as a
17 result of credits received by electric utilities under
18 subsection (d).
19 (j) The State Treasurer, without appropriation, must
20 make distributions immediately after January 15, April 15,
21 July 15, and October 15 of each year, up to maximum aggregate
22 distributions of $500,000 for the distributions made in the 4
23 quarters beginning with the April distribution and ending
24 with the January distribution, from the Municipal Economic
25 Development Fund to each city, village, or incorporated town
26 that has within its boundaries an incinerator that: (1) uses
27 municipal waste as its primary fuel to generate electricity;
28 (2) was determined by the Illinois Commerce Commission to
29 qualify as a qualified solid waste energy facility prior to
30 the effective date of Public Act 89-448; and (3) commenced
31 operation prior to January 1, 1998. Total distributions in
32 the aggregate to all qualified cities, villages, and
33 incorporated towns in the 4 quarters beginning with the April
34 distribution and ending with the January distribution shall
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1 not exceed $500,000. The amount of each distribution shall
2 be determined pro rata based on the population of the city,
3 village, or incorporated town compared to the total
4 population of all cities, villages, and incorporated towns
5 eligible to receive a distribution. Distributions received
6 by a city, village, or incorporated town must be held in a
7 separate account and may be used only to promote and enhance
8 industrial, commercial, residential, service, transportation,
9 and recreational activities and facilities within its
10 boundaries, thereby enhancing the employment opportunities,
11 public health and general welfare, and economic development
12 within the community, including administrative expenditures
13 exclusively to further these activities. These funds,
14 however, shall not be used by the city, village, or
15 incorporated town, directly or indirectly, to purchase,
16 lease, operate, or in any way subsidize the operation of any
17 incinerator, and these funds shall not be paid, directly or
18 indirectly, by the city, village, or incorporated town to the
19 owner, operator, lessee, shareholder, or bondholder of any
20 incinerator. Moreover, these funds shall not be used to pay
21 attorneys fees in any litigation relating to the validity of
22 Public Act 89-448. Nothing in this Section prevents a city,
23 village, or incorporated town from using other corporate
24 funds for any legitimate purpose. For purposes of this
25 subsection, the term "municipal waste" has the meaning
26 ascribed to it in Section 3.21 of the Environmental
27 Protection Act.
28 (k) If maximum aggregate distributions of $500,000 under
29 subsection (j) have been made after the January distribution
30 from the Municipal Economic Development Fund, then the
31 balance in the Fund shall be refunded to the qualified solid
32 waste energy facilities that made payments that were
33 deposited into the Fund during the previous 12-month period.
34 The refunds shall be prorated based upon the facility's
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1 payments in relation to total payments for that 12-month
2 period.
3 (l) Beginning January 1, 2000, and each January 1
4 thereafter, each city, village, or incorporated town that
5 received distributions from the Municipal Economic
6 Development Fund, continued to hold any of those
7 distributions, or made expenditures from those distributions
8 during the immediately preceding year shall submit to a
9 financial and compliance and program audit of those
10 distributions performed by the Auditor General at no cost to
11 the city, village, or incorporated town that received the
12 distributions. The audit should be completed by June 30 or
13 as soon thereafter as possible. The audit shall be submitted
14 to the State Treasurer and those officers enumerated in
15 Section 3-14 of the Illinois State Auditing Act. If the
16 Auditor General finds that distributions have been expended
17 in violation of this Section, the Auditor General shall refer
18 the matter to the Attorney General. The Attorney General may
19 recover, in a civil action, 3 times the amount of any
20 distributions illegally expended. For purposes of this
21 subsection, the terms "financial audit," "compliance audit",
22 and "program audit" have the meanings ascribed to them in
23 Sections 1-13 and 1-15 of the Illinois State Auditing Act.
24 (Source: P.A. 89-448, eff. 3-14-96; 90-813, eff. 1-29-99.)
25 Section 99. Effective date. This Act takes effect
26 January 1, 2001, except that this Section and Section 5 take
27 effect upon becoming law.".