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92_HB0520 LRB9204584SMdv 1 AN ACT concerning taxes. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5 Automobile Leasing Occupation and Use Tax Act. 6 Section 5. Definitions. As used in this Act: 7 "Automobile" means any motor vehicle of the first 8 division, a motor vehicle of the second division which is a 9 self-contained motor vehicle designed or permanently 10 converted to provide living quarters for recreational, 11 camping or travel use, with direct walk through access to the 12 living quarters from the driver's seat, or a motor vehicle of 13 the second division which is of the van configuration 14 designed for the transportation of not less than 7 nor more 15 than 16 passengers, as defined in Section 1-146 of the 16 Illinois Vehicle Code. 17 "Department" means the Department of Revenue. 18 "Person" means any natural individual, firm, partnership, 19 association, joint stock company, joint venture, public or 20 private corporation, or a receiver, executor, trustee, 21 conservator, or other representatives appointed by order of 22 any court. 23 "Leasing" means any transfer of the possession or right 24 to possession of an automobile to a user for a valuable 25 consideration for a period of more than 1 year. 26 "Lessor" means any person, firm, corporation, or 27 association engaged in the business of leasing automobiles to 28 users. For this purpose, the objective of making a profit is 29 not necessary to make the leasing activity a business. 30 "Lessee" means any user to whom the possession, or the 31 right to possession, of an automobile is transferred for a -2- LRB9204584SMdv 1 valuable consideration for a period more than one year which 2 is paid by such lessee or by someone else. 3 "Gross receipts" means the total leasing price for the 4 lease of an automobile. In the case of lease transactions in 5 which the consideration is paid to the lessor on an 6 installment basis, the amounts of such payments shall be 7 included by the lessor in gross receipts only as and when 8 payments are received by the lessor. 9 "Leasing price" means the consideration for leasing an 10 automobile valued in money, whether received in money or 11 otherwise, including cash, credits, property and services, 12 and shall be determined without any deduction on account of 13 the cost of the property leased, the cost of materials used, 14 labor or service cost or any other expense whatsoever, but 15 does not include charges that are added by lessors on account 16 of the lessor's tax liability under this Act, or on account 17 of the lessor's duty to collect, from the lessee, the tax 18 that is imposed by Section 20 of this Act. The phrase 19 "leasing price" does not include the residual value of the 20 automobile or any separately stated charge on the lessee's 21 bill for insurance. 22 "Maintaining a place of business in this State" means 23 having or maintaining within this State, directly or by a 24 subsidiary, an office, repair facilities, distribution house, 25 sales house, warehouse, or other place of business, or any 26 agent, or other representative, operating within this State, 27 irrespective of whether the place of business or agent or 28 other representative is located here permanently or 29 temporarily. 30 "Residual value" means the estimated value of the vehicle 31 at the end of the scheduled lease term, used by the lessor in 32 determining the base lease payment, as established by the 33 lessor at the time the lessor and lessee enter into the 34 lease. -3- LRB9204584SMdv 1 Section 10. Imposition of occupation tax. A tax is 2 imposed upon persons engaged in this State in the business of 3 leasing automobiles in Illinois at the rate of 5% of the 4 gross receipts received from such business. The tax herein 5 imposed does not apply to the leasing of automobiles to any 6 governmental body, nor to any corporation, society, 7 association, foundation or institution organized and operated 8 exclusively for charitable, religious or educational 9 purposes, nor to any not for profit corporation, society, 10 association, foundation, institution or organization which 11 has no compensated officers or employees and which is 12 organized and operated primarily for the recreation of 13 persons 55 years of age or older. Beginning July 1, 2001 14 through June 30, 2002, each month the Department shall pay 15 into the Tax Compliance and Administration Fund 3% of the 16 revenue realized from the tax imposed by this Section, and 17 the remaining such revenue shall be paid as provided for in 18 Section 3 of the Retailers' Occupation Tax Act. Beginning 19 July 1, 2002 and each month thereafter, the Department shall 20 pay into the Tax Compliance and Administration Fund 1% of the 21 revenue realized from the tax imposed by this Section, and 22 the remaining such revenue shall be paid as provided for in 23 Section 3 of the Retailers' Occupation Tax Act. 24 The Department shall have full power to administer and 25 enforce this Section, to collect all taxes and penalties due 26 hereunder, to dispose of taxes and penalties so collected in 27 the manner hereinafter provided, and to determine all rights 28 to credit memoranda, arising on account of the erroneous 29 payment of tax or penalty hereunder. In the administration 30 of, and compliance with, this Section, the Department and 31 persons who are subject to this Section shall have the same 32 rights, remedies, privileges, immunities, powers and duties, 33 and be subject to the same conditions, restrictions, 34 limitation, penalties and definitions of terms, and employ -4- LRB9204584SMdv 1 the same modes of procedure, as are prescribed in Sections 1, 2 1a, 2 through 2-65 (in respect to all provisions therein 3 other than the State rate of tax), 2a, 2b, 2c, 3 (except 4 provisions relating to transaction returns and quarter 5 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12 and 13 of the 7 Retailers' Occupation Tax Act and Section 3-7 of the Uniform 8 Penalty and Interest Act as fully as if those provisions were 9 set forth herein. For purposes of this Section, references 10 in such incorporated Sections of the Retailers' Occupation 11 Tax Act to retailers, sellers or persons engaged in the 12 business of selling tangible personal property means persons 13 engaged in the leasing of automobiles under leases subject to 14 this Act. 15 Section 15. Registration. Every person engaged in this 16 State in the business of leasing automobiles shall apply to 17 the Department (upon a form prescribed and furnished by the 18 Department) for a certificate of registration under this Act. 19 The certificate of registration that is issued by the 20 Department to a retailer under the Retailers' Occupation Tax 21 Act shall permit such lessor to engage in a business that is 22 taxable under this Section without registering separately 23 with the Department. 24 Section 20. Imposition of use tax. A tax is imposed upon 25 the privilege of using in this State, an automobile which is 26 leased from a lessor. Such tax is at the rate of 5% of the 27 leasing price of such automobile paid to the lessor under any 28 lease agreement. The tax herein imposed shall not apply to 29 any governmental body, nor to any corporation, society, 30 association, foundation or institution, organized and 31 operated exclusively for charitable, religious or educational 32 purposes, nor to any not for profit corporation, society, -5- LRB9204584SMdv 1 association, foundation, institution or organization which 2 has no compensated officers or employees and which is 3 organized and operated primarily for the recreation of 4 persons 55 years of age or older, when using tangible 5 personal property as a lessee. Beginning July 1, 2001 6 through June 30, 2002, each month the Department shall pay 7 into the Tax Compliance and Administration Fund 3% of the 8 revenue realized from the tax imposed by this Section, and 9 the remaining such revenue shall be paid as provided for in 10 Section 9 of the Use Tax Act. Beginning July 1, 2002 and 11 each month thereafter, the Department shall pay into the Tax 12 Compliance and Administration Fund 1% of the revenue realized 13 from the tax imposed by this Section, and the remaining such 14 revenue shall be paid as provided for in Section 9 of the Use 15 Tax Act. 16 The Department shall have full power to administer and 17 enforce this Section; to collect all taxes, penalties and 18 interest due hereunder; to dispose of taxes, penalties and 19 interest so collected in the manner hereinafter provided, and 20 to determine all rights to credit memoranda or refunds 21 arising on account of the erroneous payment of tax, penalty 22 or interest hereunder. In the administration of, and 23 compliance with, this Section, the Department and persons who 24 are subject to this Section shall have the same rights, 25 remedies, privileges, immunities, powers and duties, and be 26 subject to the same conditions, restrictions, limitations, 27 penalties and definitions of terms, and employ the same modes 28 of procedure, as are prescribed in Sections 2, 3 through 29 3-80, 4, 6, 7, 8, 9 (except provisions relating to 30 transaction returns and quarter monthly payments), 10, 11, 31 12, 12a, 12b, 13, 14, 15, 19, 20, 21 and 22 of the Use Tax 32 Act, and are not inconsistent with this Section, as fully as 33 if those provisions were set forth herein. For purposes of 34 this Section, references in such incorporated Sections of the -6- LRB9204584SMdv 1 Use Tax Act to users or purchasers means lessees of 2 automobiles under leases subject to this Act. 3 Section 25. Use tax collected. The use tax imposed by 4 Section 20 shall be collected from the lessee and remitted to 5 the Department by a lessor maintaining a place of business in 6 this State or who titles or registers an automobile with an 7 agency of this State's government that is used for leasing in 8 this State. 9 The use tax imposed by Section 20 and not paid to a 10 lessor pursuant to the preceding paragraph of this Section 11 shall be paid to the Department directly by any person using 12 such automobile within this State. 13 Lessors shall collect the tax from lessees by adding the 14 tax to the leasing price of the automobile, when leased for 15 use, in the manner prescribed by the Department. The 16 Department shall have the power to adopt and promulgate 17 reasonable rules and regulations for the adding of such tax 18 by lessors to leasing prices by prescribing bracket systems 19 for the purpose of enabling such lessors to add and collect, 20 as far as practicable, the amount of such tax. 21 The tax imposed by this Section shall, when collected, be 22 stated as a distinct item on the customer's bill, separate 23 and apart from the leasing price of the automobile. 24 Section 30. Severability clause. If any clause, 25 sentence, Section, provision or part thereof of this Act or 26 the application thereof to any person or circumstance shall 27 be adjudged to be unconstitutional, the remainder of this Act 28 or its application to persons or circumstances other than 29 those to which it is held invalid, shall not be affected 30 thereby. In particular, if any provision which exempts or 31 has the effect of exempting some class of users or some kind 32 of use from the tax imposed by this Act should be held to -7- LRB9204584SMdv 1 constitute or to result in an invalid classification or to be 2 unconstitutional for some other reason, such provision shall 3 be deemed to be severable with the remainder of this Act 4 without said provision being held constitutional. 5 Section 80. The State Finance Act is amended by changing 6 Sections 6z-18 and 6z-20 as follows: 7 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18) 8 Sec. 6z-18. A portion of the money paid into the Local 9 Government Tax Fund from sales of food for human consumption 10 which is to be consumed off the premises where it is sold 11 (other than alcoholic beverages, soft drinks and food which 12 has been prepared for immediate consumption) and prescription 13 and nonprescription medicines, drugs, medical appliances and 14 insulin, urine testing materials, syringes and needles used 15 by diabetics, which occurred in municipalities, shall be 16 distributed to each municipality based upon the sales which 17 occurred in that municipality. The remainder shall be 18 distributed to each county based upon the sales which 19 occurred in the unincorporated area of that county. 20 A portion of the money paid into the Local Government Tax 21 Fund from the 6.25% general use tax rate on the selling price 22 of tangible personal property which is purchased outside 23 Illinois at retail from a retailer and which is titled or 24 registered by any agency of this State's government shall be 25 distributed to municipalities as provided in this paragraph. 26 Each municipality shall receive the amount attributable to 27 sales for which Illinois addresses for titling or 28 registration purposes are given as being in such 29 municipality. The remainder of the money paid into the Local 30 Government Tax Fund from such sales shall be distributed to 31 counties. Each county shall receive the amount attributable 32 to sales for which Illinois addresses for titling or -8- LRB9204584SMdv 1 registration purposes are given as being located in the 2 unincorporated area of such county. 3 A portion of the money paid into the Local Government Tax 4 Fund from the 1.25% rate imposed under the Use Tax Act upon 5 the selling price of any motor vehicle that is purchased 6 outside of Illinois at retail by a lessor for purposes of 7 leasing under a lease subject to the Automobile Leasing 8 Occupation and Use Tax Act which is titled or registered by 9 any agency of this State's government shall be distributed as 10 provided in this paragraph, less 3% for the first 12 monthly 11 distributions and 1% for each monthly distribution 12 thereafter, which sum shall be paid into the Tax Compliance 13 and Administration Fund. Each municipality shall receive the 14 amount attributable to sales for which Illinois addresses for 15 titling or registration purposes are given as being in such 16 municipality. The remainder of the money paid into the Local 17 Government Tax Fund from such sales shall be distributed to 18 counties. Each county shall receive the amount attributable 19 to sales for which Illinois addresses for titling or 20 registration purposes are given as being located in the 21 unincorporated area of such county. 22 A portion of the money paid into the Local Government Tax 23 Fund from the 6.25% general rate (and, beginning July 1, 2000 24 and through December 31, 2000, the 1.25% rate on motor fuel 25 and gasohol) on sales subject to taxation under the 26 Retailers' Occupation Tax Act and the Service Occupation Tax 27 Act, which occurred in municipalities, shall be distributed 28 to each municipality, based upon the sales which occurred in 29 that municipality. The remainder shall be distributed to each 30 county, based upon the sales which occurred in the 31 unincorporated area of such county. 32 A portion of the money paid into the Local Government Tax 33 Fund from the 1.25% rate imposed by the Retailers' Occupation 34 Tax Act upon the sale of any motor vehicle that is sold at -9- LRB9204584SMdv 1 retail to a lessor for purposes of leasing under a lease 2 subject to the Automobile Leasing Occupation and Use Tax Act 3 shall be distributed as provided in this paragraph, less 3% 4 for the first 12 monthly distributions and 1% for each 5 monthly distribution thereafter, which sum shall be paid into 6 the Tax Compliance and Administration Fund. The funds shall 7 be distributed to each municipality, based upon the sales 8 which occurred in that municipality. The remainder shall be 9 distributed to each county, based upon the sales which 10 occurred in the unincorporated area of such county. 11 For the purpose of determining allocation to the local 12 government unit, a retail sale by a producer of coal or other 13 mineral mined in Illinois is a sale at retail at the place 14 where the coal or other mineral mined in Illinois is 15 extracted from the earth. This paragraph does not apply to 16 coal or other mineral when it is delivered or shipped by the 17 seller to the purchaser at a point outside Illinois so that 18 the sale is exempt under the United States Constitution as a 19 sale in interstate or foreign commerce. 20 Whenever the Department determines that a refund of money 21 paid into the Local Government Tax Fund should be made to a 22 claimant instead of issuing a credit memorandum, the 23 Department shall notify the State Comptroller, who shall 24 cause the order to be drawn for the amount specified, and to 25 the person named, in such notification from the Department. 26 Such refund shall be paid by the State Treasurer out of the 27 Local Government Tax Fund. 28 On or before the 25th day of each calendar month, the 29 Department shall prepare and certify to the Comptroller the 30 disbursement of stated sums of money to named municipalities 31 and counties, the municipalities and counties to be those 32 entitled to distribution of taxes or penalties paid to the 33 Department during the second preceding calendar month. The 34 amount to be paid to each municipality or county shall be the -10- LRB9204584SMdv 1 amount (not including credit memoranda) collected during the 2 second preceding calendar month by the Department and paid 3 into the Local Government Tax Fund, plus an amount the 4 Department determines is necessary to offset any amounts 5 which were erroneously paid to a different taxing body, and 6 not including an amount equal to the amount of refunds made 7 during the second preceding calendar month by the Department, 8 and not including any amount which the Department determines 9 is necessary to offset any amounts which are payable to a 10 different taxing body but were erroneously paid to the 11 municipality or county. Within 10 days after receipt, by the 12 Comptroller, of the disbursement certification to the 13 municipalities and counties, provided for in this Section to 14 be given to the Comptroller by the Department, the 15 Comptroller shall cause the orders to be drawn for the 16 respective amounts in accordance with the directions 17 contained in such certification. 18 When certifying the amount of monthly disbursement to a 19 municipality or county under this Section, the Department 20 shall increase or decrease that amount by an amount necessary 21 to offset any misallocation of previous disbursements. The 22 offset amount shall be the amount erroneously disbursed 23 within the 6 months preceding the time a misallocation is 24 discovered. 25 The provisions directing the distributions from the 26 special fund in the State Treasury provided for in this 27 Section shall constitute an irrevocable and continuing 28 appropriation of all amounts as provided herein. The State 29 Treasurer and State Comptroller are hereby authorized to make 30 distributions as provided in this Section. 31 In construing any development, redevelopment, annexation, 32 preannexation or other lawful agreement in effect prior to 33 September 1, 1990, which describes or refers to receipts from 34 a county or municipal retailers' occupation tax, use tax or -11- LRB9204584SMdv 1 service occupation tax which now cannot be imposed, such 2 description or reference shall be deemed to include the 3 replacement revenue for such abolished taxes, distributed 4 from the Local Government Tax Fund. 5 (Source: P.A. 90-491, eff. 1-1-98; 91-51, eff. 6-30-99; 6 91-872, eff. 7-1-00.) 7 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20) 8 Sec. 6z-20. Of the money received from the 6.25% general 9 rate (and, beginning July 1, 2000 and through December 31, 10 2000, the 1.25% rate on motor fuel and gasohol) on sales 11 subject to taxation under the Retailers' Occupation Tax Act 12 and Service Occupation Tax Act and paid into the County and 13 Mass Transit District Fund, distribution to the Regional 14 Transportation Authority tax fund, created pursuant to 15 Section 4.03 of the Regional Transportation Authority Act, 16 for deposit therein shall be made based upon the retail sales 17 occurring in a county having more than 3,000,000 inhabitants. 18 The remainder shall be distributed to each county having 19 3,000,000 or fewer inhabitants based upon the retail sales 20 occurring in each such county. 21 Of the money received from the 1.25% rate imposed by the 22 Retailers' Occupation Tax Act upon the sale of any motor 23 vehicle that is sold at retail to a lessor for purposes of 24 leasing under a lease subject to the Automobile Leasing 25 Occupation and Use Tax Act, and paid into the County and Mass 26 Transit District Fund shall be distributed as provided in 27 this paragraph, less 3% for the first 12 monthly 28 distributions and 1% for each monthly distribution 29 thereafter, which sum shall be paid into the Tax Compliance 30 and Administration Fund. Distribution to the Regional 31 Transportation Authority Tax Fund, created pursuant to 32 Section 4.03 of the Regional Transportation Authority Act, 33 for deposit therein shall be made based upon the retail sales -12- LRB9204584SMdv 1 occurring in a county having more than 3,000,000 inhabitants. 2 The remainder shall be distributed to each county having 3 3,000,000 or fewer inhabitants based upon the retail sales 4 occurring in each such county. 5 For the purpose of determining allocation to the local 6 government unit, a retail sale by a producer of coal or other 7 mineral mined in Illinois is a sale at retail at the place 8 where the coal or other mineral mined in Illinois is 9 extracted from the earth. This paragraph does not apply to 10 coal or other mineral when it is delivered or shipped by the 11 seller to the purchaser at a point outside Illinois so that 12 the sale is exempt under the United States Constitution as a 13 sale in interstate or foreign commerce. 14 Of the money received from the 6.25% general use tax rate 15 on tangible personal property which is purchased outside 16 Illinois at retail from a retailer and which is titled or 17 registered by any agency of this State's government and paid 18 into the County and Mass Transit District Fund, the amount 19 for which Illinois addresses for titling or registration 20 purposes are given as being in each county having more than 21 3,000,000 inhabitants shall be distributed into the Regional 22 Transportation Authority tax fund, created pursuant to 23 Section 4.03 of the Regional Transportation Authority Act. 24 The remainder of the money paid from such sales shall be 25 distributed to each county based on sales for which Illinois 26 addresses for titling or registration purposes are given as 27 being located in the county. Any money paid into the 28 Regional Transportation Authority Occupation and Use Tax 29 Replacement Fund from the County and Mass Transit District 30 Fund prior to January 14, 1991, which has not been paid to 31 the Authority prior to that date, shall be transferred to the 32 Regional Transportation Authority tax fund. 33 Of the money received from the 1.25% rate imposed under 34 the Use Tax Act upon the selling price of any motor vehicle -13- LRB9204584SMdv 1 that is purchased outside of Illinois at retail by a lessor 2 for purposes of leasing under a lease subject to the 3 Automobile Leasing Occupation and Use Tax Act which is titled 4 or registered by any agency of this State's government and is 5 paid into the County and Mass Transit District Fund, shall be 6 distributed as provided in this paragraph, less 3% for the 7 first 12 monthly distributions and 1% for each monthly 8 distribution thereafter, which sum shall be paid into the Tax 9 Compliance and Administration Fund. The amount for which 10 Illinois addresses for titling or registration purposes are 11 given as being in each county having more than 3,000,000 12 inhabitants shall be distributed into the Regional 13 Transportation Authority Tax Fund, created pursuant to 14 Section 4.03 of the Regional Transportation Authority Act. 15 The remainder of the moneys paid from such sales shall be 16 distributed to each county based on sales for which Illinois 17 addresses for titling or registration purposes are given as 18 being located in that county. 19 Whenever the Department determines that a refund of money 20 paid into the County and Mass Transit District Fund should be 21 made to a claimant instead of issuing a credit memorandum, 22 the Department shall notify the State Comptroller, who shall 23 cause the order to be drawn for the amount specified, and to 24 the person named, in such notification from the Department. 25 Such refund shall be paid by the State Treasurer out of the 26 County and Mass Transit District Fund. 27 On or before the 25th day of each calendar month, the 28 Department shall prepare and certify to the Comptroller the 29 disbursement of stated sums of money to the Regional 30 Transportation Authority and to named counties, the counties 31 to be those entitled to distribution, as hereinabove 32 provided, of taxes or penalties paid to the Department during 33 the second preceding calendar month. The amount to be paid 34 to the Regional Transportation Authority and each county -14- LRB9204584SMdv 1 having 3,000,000 or fewer inhabitants shall be the amount 2 (not including credit memoranda) collected during the second 3 preceding calendar month by the Department and paid into the 4 County and Mass Transit District Fund, plus an amount the 5 Department determines is necessary to offset any amounts 6 which were erroneously paid to a different taxing body, and 7 not including an amount equal to the amount of refunds made 8 during the second preceding calendar month by the Department, 9 and not including any amount which the Department determines 10 is necessary to offset any amounts which were payable to a 11 different taxing body but were erroneously paid to the 12 Regional Transportation Authority or county. Within 10 days 13 after receipt, by the Comptroller, of the disbursement 14 certification to the Regional Transportation Authority and 15 counties, provided for in this Section to be given to the 16 Comptroller by the Department, the Comptroller shall cause 17 the orders to be drawn for the respective amounts in 18 accordance with the directions contained in such 19 certification. 20 When certifying the amount of a monthly disbursement to 21 the Regional Transportation Authority or to a county under 22 this Section, the Department shall increase or decrease that 23 amount by an amount necessary to offset any misallocation of 24 previous disbursements. The offset amount shall be the 25 amount erroneously disbursed within the 6 months preceding 26 the time a misallocation is discovered. 27 The provisions directing the distributions from the 28 special fund in the State Treasury provided for in this 29 Section and from the Regional Transportation Authority tax 30 fund created by Section 4.03 of the Regional Transportation 31 Authority Act shall constitute an irrevocable and continuing 32 appropriation of all amounts as provided herein. The State 33 Treasurer and State Comptroller are hereby authorized to make 34 distributions as provided in this Section. -15- LRB9204584SMdv 1 In construing any development, redevelopment, annexation, 2 preannexation or other lawful agreement in effect prior to 3 September 1, 1990, which describes or refers to receipts from 4 a county or municipal retailers' occupation tax, use tax or 5 service occupation tax which now cannot be imposed, such 6 description or reference shall be deemed to include the 7 replacement revenue for such abolished taxes, distributed 8 from the County and Mass Transit District Fund or Local 9 Government Distributive Fund, as the case may be. 10 (Source: P.A. 90-491, eff. 1-1-98; 91-872, eff. 7-1-00.) 11 Section 85. The Use Tax Act is amended by changing 12 Sections 1a, 3-10, and 9 as follows: 13 (35 ILCS 105/1a) (from Ch. 120, par. 439.1a) 14 Sec. 1a. A person who is engaged in the business of 15 leasing or renting motor vehicles to others and who, in 16 connection with such business sells any used motor vehicle to 17 a purchaser for his use and not for the purpose of resale, is 18 a retailer engaged in the business of selling tangible 19 personal property at retail under this Act to the extent of 20 the value of the vehicle sold. For the purpose of this 21 Section, "motor vehicle" means any motor vehicle of the first 22 division, a motor vehicle of the second division which is a 23 self-contained motor vehicle designed or permanently 24 converted to provide living quarters for recreational, 25 camping or travel use, with direct walk through access to the 26 living quarters from the driver's seat, or a motor vehicle of 27 a second division which is of the van configuration designed 28 for the transportation of not less than 7 nor more than 16 29 passengers, as defined in Section 1-146 of the Illinois 30 Vehicle Code.For the purpose of this Section, "motor31vehicle" has the meaning prescribed in Section 1-157 of The32Illinois Vehicle Code, as now or hereafter amended. (Nothing-16- LRB9204584SMdv 1provided herein shall affect liability incurred under this2Act because of the use of such motor vehicles as a lessor.)3 (Source: P.A. 80-598.) 4 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10) 5 Sec. 3-10. Rate of tax. Unless otherwise provided in 6 this Section, the tax imposed by this Act is at the rate of 7 6.25% of either the selling price or the fair market value, 8 if any, of the tangible personal property. In all cases 9 where property functionally used or consumed is the same as 10 the property that was purchased at retail, then the tax is 11 imposed on the selling price of the property. In all cases 12 where property functionally used or consumed is a by-product 13 or waste product that has been refined, manufactured, or 14 produced from property purchased at retail, then the tax is 15 imposed on the lower of the fair market value, if any, of the 16 specific property so used in this State or on the selling 17 price of the property purchased at retail. For purposes of 18 this Section "fair market value" means the price at which 19 property would change hands between a willing buyer and a 20 willing seller, neither being under any compulsion to buy or 21 sell and both having reasonable knowledge of the relevant 22 facts. The fair market value shall be established by Illinois 23 sales by the taxpayer of the same property as that 24 functionally used or consumed, or if there are no such sales 25 by the taxpayer, then comparable sales or purchases of 26 property of like kind and character in Illinois. 27 Beginning on July 1, 2000 and through December 31, 2000, 28 with respect to motor fuel, as defined in Section 1.1 of the 29 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 30 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 31 With respect to gasohol, the tax imposed by this Act 32 applies to 70% of the proceeds of sales made on or after 33 January 1, 1990, and before July 1, 2003, and to 100% of the -17- LRB9204584SMdv 1 proceeds of sales made thereafter. 2 With respect to food for human consumption that is to be 3 consumed off the premises where it is sold (other than 4 alcoholic beverages, soft drinks, and food that has been 5 prepared for immediate consumption) and prescription and 6 nonprescription medicines, drugs, medical appliances, 7 modifications to a motor vehicle for the purpose of rendering 8 it usable by a disabled person, and insulin, urine testing 9 materials, syringes, and needles used by diabetics, for human 10 use, the tax is imposed at the rate of 1%. For the purposes 11 of this Section, the term "soft drinks" means any complete, 12 finished, ready-to-use, non-alcoholic drink, whether 13 carbonated or not, including but not limited to soda water, 14 cola, fruit juice, vegetable juice, carbonated water, and all 15 other preparations commonly known as soft drinks of whatever 16 kind or description that are contained in any closed or 17 sealed bottle, can, carton, or container, regardless of size. 18 "Soft drinks" does not include coffee, tea, non-carbonated 19 water, infant formula, milk or milk products as defined in 20 the Grade A Pasteurized Milk and Milk Products Act, or drinks 21 containing 50% or more natural fruit or vegetable juice. 22 Notwithstanding any other provisions of this Act, "food 23 for human consumption that is to be consumed off the premises 24 where it is sold" includes all food sold through a vending 25 machine, except soft drinks and food products that are 26 dispensed hot from a vending machine, regardless of the 27 location of the vending machine. 28 With respect to any motor vehicle (as the term "motor 29 vehicle" is defined in Section 1a of this Act) that is 30 purchased by a lessor for purposes of leasing under a lease 31 subject to the Automobile Leasing Occupation and Use Tax Act, 32 the tax is imposed at the rate of 1.25%. 33 With respect to any motor vehicle (as the term "motor 34 vehicle" is defined in Section 1a of this Act) that has been -18- LRB9204584SMdv 1 leased by a lessor to a lessee under a lease that is subject 2 to the Automobile Leasing Occupation and Use Tax Act, and is 3 subsequently purchased by the lessee of such vehicle, the tax 4 is imposed at the rate of 5%. 5 If the property that is purchased at retail from a 6 retailer is acquired outside Illinois and used outside 7 Illinois before being brought to Illinois for use here and is 8 taxable under this Act, the "selling price" on which the tax 9 is computed shall be reduced by an amount that represents a 10 reasonable allowance for depreciation for the period of prior 11 out-of-state use. 12 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 13 91-51, eff. 6-30-99; 91-872, eff. 7-1-00.) 14 (35 ILCS 105/9) (from Ch. 120, par. 439.9) 15 Sec. 9. Except as to motor vehicles, watercraft, 16 aircraft, and trailers that are required to be registered 17 with an agency of this State, each retailer required or 18 authorized to collect the tax imposed by this Act shall pay 19 to the Department the amount of such tax (except as otherwise 20 provided) at the time when he is required to file his return 21 for the period during which such tax was collected, less a 22 discount of 2.1% prior to January 1, 1990, and 1.75% on and 23 after January 1, 1990, or $5 per calendar year, whichever is 24 greater, which is allowed to reimburse the retailer for 25 expenses incurred in collecting the tax, keeping records, 26 preparing and filing returns, remitting the tax and supplying 27 data to the Department on request. In the case of retailers 28 who report and pay the tax on a transaction by transaction 29 basis, as provided in this Section, such discount shall be 30 taken with each such tax remittance instead of when such 31 retailer files his periodic return. A retailer need not 32 remit that part of any tax collected by him to the extent 33 that he is required to remit and does remit the tax imposed -19- LRB9204584SMdv 1 by the Retailers' Occupation Tax Act, with respect to the 2 sale of the same property. 3 Where such tangible personal property is sold under a 4 conditional sales contract, or under any other form of sale 5 wherein the payment of the principal sum, or a part thereof, 6 is extended beyond the close of the period for which the 7 return is filed, the retailer, in collecting the tax (except 8 as to motor vehicles, watercraft, aircraft, and trailers that 9 are required to be registered with an agency of this State), 10 may collect for each tax return period, only the tax 11 applicable to that part of the selling price actually 12 received during such tax return period. 13 Except as provided in this Section, on or before the 14 twentieth day of each calendar month, such retailer shall 15 file a return for the preceding calendar month. Such return 16 shall be filed on forms prescribed by the Department and 17 shall furnish such information as the Department may 18 reasonably require. 19 The Department may require returns to be filed on a 20 quarterly basis. If so required, a return for each calendar 21 quarter shall be filed on or before the twentieth day of the 22 calendar month following the end of such calendar quarter. 23 The taxpayer shall also file a return with the Department for 24 each of the first two months of each calendar quarter, on or 25 before the twentieth day of the following calendar month, 26 stating: 27 1. The name of the seller; 28 2. The address of the principal place of business 29 from which he engages in the business of selling tangible 30 personal property at retail in this State; 31 3. The total amount of taxable receipts received by 32 him during the preceding calendar month from sales of 33 tangible personal property by him during such preceding 34 calendar month, including receipts from charge and time -20- LRB9204584SMdv 1 sales, but less all deductions allowed by law; 2 4. The amount of credit provided in Section 2d of 3 this Act; 4 5. The amount of tax due; 5 5-5. The signature of the taxpayer; and 6 6. Such other reasonable information as the 7 Department may require. 8 If a taxpayer fails to sign a return within 30 days after 9 the proper notice and demand for signature by the Department, 10 the return shall be considered valid and any amount shown to 11 be due on the return shall be deemed assessed. 12 Beginning October 1, 1993, a taxpayer who has an average 13 monthly tax liability of $150,000 or more shall make all 14 payments required by rules of the Department by electronic 15 funds transfer. Beginning October 1, 1994, a taxpayer who has 16 an average monthly tax liability of $100,000 or more shall 17 make all payments required by rules of the Department by 18 electronic funds transfer. Beginning October 1, 1995, a 19 taxpayer who has an average monthly tax liability of $50,000 20 or more shall make all payments required by rules of the 21 Department by electronic funds transfer. Beginning October 1, 22 2000, a taxpayer who has an annual tax liability of $200,000 23 or more shall make all payments required by rules of the 24 Department by electronic funds transfer. The term "annual 25 tax liability" shall be the sum of the taxpayer's liabilities 26 under this Act, and under all other State and local 27 occupation and use tax laws administered by the Department, 28 for the immediately preceding calendar year. The term 29 "average monthly tax liability" means the sum of the 30 taxpayer's liabilities under this Act, and under all other 31 State and local occupation and use tax laws administered by 32 the Department, for the immediately preceding calendar year 33 divided by 12. 34 Before August 1 of each year beginning in 1993, the -21- LRB9204584SMdv 1 Department shall notify all taxpayers required to make 2 payments by electronic funds transfer. All taxpayers required 3 to make payments by electronic funds transfer shall make 4 those payments for a minimum of one year beginning on October 5 1. 6 Any taxpayer not required to make payments by electronic 7 funds transfer may make payments by electronic funds transfer 8 with the permission of the Department. 9 All taxpayers required to make payment by electronic 10 funds transfer and any taxpayers authorized to voluntarily 11 make payments by electronic funds transfer shall make those 12 payments in the manner authorized by the Department. 13 The Department shall adopt such rules as are necessary to 14 effectuate a program of electronic funds transfer and the 15 requirements of this Section. 16 Before October 1, 2000, if the taxpayer's average monthly 17 tax liability to the Department under this Act, the 18 Retailers' Occupation Tax Act, the Service Occupation Tax 19 Act, the Service Use Tax Act was $10,000 or more during the 20 preceding 4 complete calendar quarters, he shall file a 21 return with the Department each month by the 20th day of the 22 month next following the month during which such tax 23 liability is incurred and shall make payments to the 24 Department on or before the 7th, 15th, 22nd and last day of 25 the month during which such liability is incurred. On and 26 after October 1, 2000, if the taxpayer's average monthly tax 27 liability to the Department under this Act, the Retailers' 28 Occupation Tax Act, the Service Occupation Tax Act, and the 29 Service Use Tax Act was $20,000 or more during the preceding 30 4 complete calendar quarters, he shall file a return with the 31 Department each month by the 20th day of the month next 32 following the month during which such tax liability is 33 incurred and shall make payment to the Department on or 34 before the 7th, 15th, 22nd and last day of the month during -22- LRB9204584SMdv 1 which such liability is incurred. If the month during which 2 such tax liability is incurred began prior to January 1, 3 1985, each payment shall be in an amount equal to 1/4 of the 4 taxpayer's actual liability for the month or an amount set by 5 the Department not to exceed 1/4 of the average monthly 6 liability of the taxpayer to the Department for the preceding 7 4 complete calendar quarters (excluding the month of highest 8 liability and the month of lowest liability in such 4 quarter 9 period). If the month during which such tax liability is 10 incurred begins on or after January 1, 1985, and prior to 11 January 1, 1987, each payment shall be in an amount equal to 12 22.5% of the taxpayer's actual liability for the month or 13 27.5% of the taxpayer's liability for the same calendar month 14 of the preceding year. If the month during which such tax 15 liability is incurred begins on or after January 1, 1987, and 16 prior to January 1, 1988, each payment shall be in an amount 17 equal to 22.5% of the taxpayer's actual liability for the 18 month or 26.25% of the taxpayer's liability for the same 19 calendar month of the preceding year. If the month during 20 which such tax liability is incurred begins on or after 21 January 1, 1988, and prior to January 1, 1989, or begins on 22 or after January 1, 1996, each payment shall be in an amount 23 equal to 22.5% of the taxpayer's actual liability for the 24 month or 25% of the taxpayer's liability for the same 25 calendar month of the preceding year. If the month during 26 which such tax liability is incurred begins on or after 27 January 1, 1989, and prior to January 1, 1996, each payment 28 shall be in an amount equal to 22.5% of the taxpayer's actual 29 liability for the month or 25% of the taxpayer's liability 30 for the same calendar month of the preceding year or 100% of 31 the taxpayer's actual liability for the quarter monthly 32 reporting period. The amount of such quarter monthly 33 payments shall be credited against the final tax liability of 34 the taxpayer's return for that month. Before October 1, -23- LRB9204584SMdv 1 2000, once applicable, the requirement of the making of 2 quarter monthly payments to the Department shall continue 3 until such taxpayer's average monthly liability to the 4 Department during the preceding 4 complete calendar quarters 5 (excluding the month of highest liability and the month of 6 lowest liability) is less than $9,000, or until such 7 taxpayer's average monthly liability to the Department as 8 computed for each calendar quarter of the 4 preceding 9 complete calendar quarter period is less than $10,000. 10 However, if a taxpayer can show the Department that a 11 substantial change in the taxpayer's business has occurred 12 which causes the taxpayer to anticipate that his average 13 monthly tax liability for the reasonably foreseeable future 14 will fall below the $10,000 threshold stated above, then such 15 taxpayer may petition the Department for change in such 16 taxpayer's reporting status. On and after October 1, 2000, 17 once applicable, the requirement of the making of quarter 18 monthly payments to the Department shall continue until such 19 taxpayer's average monthly liability to the Department during 20 the preceding 4 complete calendar quarters (excluding the 21 month of highest liability and the month of lowest liability) 22 is less than $19,000 or until such taxpayer's average monthly 23 liability to the Department as computed for each calendar 24 quarter of the 4 preceding complete calendar quarter period 25 is less than $20,000. However, if a taxpayer can show the 26 Department that a substantial change in the taxpayer's 27 business has occurred which causes the taxpayer to anticipate 28 that his average monthly tax liability for the reasonably 29 foreseeable future will fall below the $20,000 threshold 30 stated above, then such taxpayer may petition the Department 31 for a change in such taxpayer's reporting status. The 32 Department shall change such taxpayer's reporting status 33 unless it finds that such change is seasonal in nature and 34 not likely to be long term. If any such quarter monthly -24- LRB9204584SMdv 1 payment is not paid at the time or in the amount required by 2 this Section, then the taxpayer shall be liable for penalties 3 and interest on the difference between the minimum amount due 4 and the amount of such quarter monthly payment actually and 5 timely paid, except insofar as the taxpayer has previously 6 made payments for that month to the Department in excess of 7 the minimum payments previously due as provided in this 8 Section. The Department shall make reasonable rules and 9 regulations to govern the quarter monthly payment amount and 10 quarter monthly payment dates for taxpayers who file on other 11 than a calendar monthly basis. 12 If any such payment provided for in this Section exceeds 13 the taxpayer's liabilities under this Act, the Retailers' 14 Occupation Tax Act, the Service Occupation Tax Act and the 15 Service Use Tax Act, as shown by an original monthly return, 16 the Department shall issue to the taxpayer a credit 17 memorandum no later than 30 days after the date of payment, 18 which memorandum may be submitted by the taxpayer to the 19 Department in payment of tax liability subsequently to be 20 remitted by the taxpayer to the Department or be assigned by 21 the taxpayer to a similar taxpayer under this Act, the 22 Retailers' Occupation Tax Act, the Service Occupation Tax Act 23 or the Service Use Tax Act, in accordance with reasonable 24 rules and regulations to be prescribed by the Department, 25 except that if such excess payment is shown on an original 26 monthly return and is made after December 31, 1986, no credit 27 memorandum shall be issued, unless requested by the taxpayer. 28 If no such request is made, the taxpayer may credit such 29 excess payment against tax liability subsequently to be 30 remitted by the taxpayer to the Department under this Act, 31 the Retailers' Occupation Tax Act, the Service Occupation Tax 32 Act or the Service Use Tax Act, in accordance with reasonable 33 rules and regulations prescribed by the Department. If the 34 Department subsequently determines that all or any part of -25- LRB9204584SMdv 1 the credit taken was not actually due to the taxpayer, the 2 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced 3 by 2.1% or 1.75% of the difference between the credit taken 4 and that actually due, and the taxpayer shall be liable for 5 penalties and interest on such difference. 6 If the retailer is otherwise required to file a monthly 7 return and if the retailer's average monthly tax liability to 8 the Department does not exceed $200, the Department may 9 authorize his returns to be filed on a quarter annual basis, 10 with the return for January, February, and March of a given 11 year being due by April 20 of such year; with the return for 12 April, May and June of a given year being due by July 20 of 13 such year; with the return for July, August and September of 14 a given year being due by October 20 of such year, and with 15 the return for October, November and December of a given year 16 being due by January 20 of the following year. 17 If the retailer is otherwise required to file a monthly 18 or quarterly return and if the retailer's average monthly tax 19 liability to the Department does not exceed $50, the 20 Department may authorize his returns to be filed on an annual 21 basis, with the return for a given year being due by January 22 20 of the following year. 23 Such quarter annual and annual returns, as to form and 24 substance, shall be subject to the same requirements as 25 monthly returns. 26 Notwithstanding any other provision in this Act 27 concerning the time within which a retailer may file his 28 return, in the case of any retailer who ceases to engage in a 29 kind of business which makes him responsible for filing 30 returns under this Act, such retailer shall file a final 31 return under this Act with the Department not more than one 32 month after discontinuing such business. 33 In addition, with respect to motor vehicles, watercraft, 34 aircraft, and trailers that are required to be registered -26- LRB9204584SMdv 1 with an agency of this State, every retailer selling this 2 kind of tangible personal property shall file, with the 3 Department, upon a form to be prescribed and supplied by the 4 Department, a separate return for each such item of tangible 5 personal property which the retailer sells, except that if, 6 in the same transaction, (i) a retailer of aircraft, 7 watercraft, motor vehicles or trailers transfers more than 8 one aircraft, watercraft, motor vehicle or trailer to another 9 aircraft, watercraft, motor vehicle or trailer retailer for 10 the purpose of resale or (ii) a retailer of aircraft, 11 watercraft, motor vehicles, or trailers transfers more than 12 one aircraft, watercraft, motor vehicle, or trailer to a 13 purchaser for use as a qualifying rolling stock as provided 14 in Section 3-55 of this Act, then that seller may report the 15 transfer of all the aircraft, watercraft, motor vehicles or 16 trailers involved in that transaction to the Department on 17 the same uniform invoice-transaction reporting return form. 18 For purposes of this Section, "watercraft" means a Class 2, 19 Class 3, or Class 4 watercraft as defined in Section 3-2 of 20 the Boat Registration and Safety Act, a personal watercraft, 21 or any boat equipped with an inboard motor. 22 The transaction reporting return in the case of motor 23 vehicles or trailers that are required to be registered with 24 an agency of this State, shall be the same document as the 25 Uniform Invoice referred to in Section 5-402 of the Illinois 26 Vehicle Code and must show the name and address of the 27 seller; the name and address of the purchaser; the amount of 28 the selling price including the amount allowed by the 29 retailer for traded-in property, if any; the amount allowed 30 by the retailer for the traded-in tangible personal property, 31 if any, to the extent to which Section 2 of this Act allows 32 an exemption for the value of traded-in property; the balance 33 payable after deducting such trade-in allowance from the 34 total selling price; the amount of tax due from the retailer -27- LRB9204584SMdv 1 with respect to such transaction; the amount of tax collected 2 from the purchaser by the retailer on such transaction (or 3 satisfactory evidence that such tax is not due in that 4 particular instance, if that is claimed to be the fact); the 5 place and date of the sale; a sufficient identification of 6 the property sold; such other information as is required in 7 Section 5-402 of the Illinois Vehicle Code, and such other 8 information as the Department may reasonably require. 9 The transaction reporting return in the case of 10 watercraft and aircraft 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, and such other information as the 25 Department may reasonably require. 26 Such transaction reporting return shall be filed not 27 later than 20 days after the date of delivery of the item 28 that is being sold, but may be filed by the retailer at any 29 time sooner than that if he chooses to do so. The 30 transaction reporting return and tax remittance or proof of 31 exemption from the tax that is imposed by this Act may be 32 transmitted to the Department by way of the State agency with 33 which, or State officer with whom, the tangible personal 34 property must be titled or registered (if titling or -28- LRB9204584SMdv 1 registration is required) if the Department and such agency 2 or State officer determine that this procedure will expedite 3 the processing of applications for title or registration. 4 With each such transaction reporting return, the retailer 5 shall remit the proper amount of tax due (or shall submit 6 satisfactory evidence that the sale is not taxable if that is 7 the case), to the Department or its agents, whereupon the 8 Department shall issue, in the purchaser's name, a tax 9 receipt (or a certificate of exemption if the Department is 10 satisfied that the particular sale is tax exempt) which such 11 purchaser may submit to the agency with which, or State 12 officer with whom, he must title or register the tangible 13 personal property that is involved (if titling or 14 registration is required) in support of such purchaser's 15 application for an Illinois certificate or other evidence of 16 title or registration to such tangible personal property. 17 No retailer's failure or refusal to remit tax under this 18 Act precludes a user, who has paid the proper tax to the 19 retailer, from obtaining his certificate of title or other 20 evidence of title or registration (if titling or registration 21 is required) upon satisfying the Department that such user 22 has paid the proper tax (if tax is due) to the retailer. The 23 Department shall adopt appropriate rules to carry out the 24 mandate of this paragraph. 25 If the user who would otherwise pay tax to the retailer 26 wants the transaction reporting return filed and the payment 27 of tax or proof of exemption made to the Department before 28 the retailer is willing to take these actions and such user 29 has not paid the tax to the retailer, such user may certify 30 to the fact of such delay by the retailer, and may (upon the 31 Department being satisfied of the truth of such 32 certification) transmit the information required by the 33 transaction reporting return and the remittance for tax or 34 proof of exemption directly to the Department and obtain his -29- LRB9204584SMdv 1 tax receipt or exemption determination, in which event the 2 transaction reporting return and tax remittance (if a tax 3 payment was required) shall be credited by the Department to 4 the proper retailer's account with the Department, but 5 without the 2.1% or 1.75% discount provided for in this 6 Section being allowed. When the user pays the tax directly 7 to the Department, he shall pay the tax in the same amount 8 and in the same form in which it would be remitted if the tax 9 had been remitted to the Department by the retailer. 10 Where a retailer collects the tax with respect to the 11 selling price of tangible personal property which he sells 12 and the purchaser thereafter returns such tangible personal 13 property and the retailer refunds the selling price thereof 14 to the purchaser, such retailer shall also refund, to the 15 purchaser, the tax so collected from the purchaser. When 16 filing his return for the period in which he refunds such tax 17 to the purchaser, the retailer may deduct the amount of the 18 tax so refunded by him to the purchaser from any other use 19 tax which such retailer may be required to pay or remit to 20 the Department, as shown by such return, if the amount of the 21 tax to be deducted was previously remitted to the Department 22 by such retailer. If the retailer has not previously 23 remitted the amount of such tax to the Department, he is 24 entitled to no deduction under this Act upon refunding such 25 tax to the purchaser. 26 Any retailer filing a return under this Section shall 27 also include (for the purpose of paying tax thereon) the 28 total tax covered by such return upon the selling price of 29 tangible personal property purchased by him at retail from a 30 retailer, but as to which the tax imposed by this Act was not 31 collected from the retailer filing such return, and such 32 retailer shall remit the amount of such tax to the Department 33 when filing such return. 34 If experience indicates such action to be practicable, -30- LRB9204584SMdv 1 the Department may prescribe and furnish a combination or 2 joint return which will enable retailers, who are required to 3 file returns hereunder and also under the Retailers' 4 Occupation Tax Act, to furnish all the return information 5 required by both Acts on the one form. 6 Where the retailer has more than one business registered 7 with the Department under separate registration under this 8 Act, such retailer may not file each return that is due as a 9 single return covering all such registered businesses, but 10 shall file separate returns for each such registered 11 business. 12 Beginning January 1, 1990, each month the Department 13 shall pay into the State and Local Sales Tax Reform Fund, a 14 special fund in the State Treasury which is hereby created, 15 the net revenue realized for the preceding month from the 1% 16 tax on sales of food for human consumption which is to be 17 consumed off the premises where it is sold (other than 18 alcoholic beverages, soft drinks and food which has been 19 prepared for immediate consumption) and prescription and 20 nonprescription medicines, drugs, medical appliances and 21 insulin, urine testing materials, syringes and needles used 22 by diabetics. 23 Beginning January 1, 1990, each month the Department 24 shall pay into the County and Mass Transit District Fund 4% 25 of the net revenue realized for the preceding month from the 26 6.25% general rate on the selling price of tangible personal 27 property which is purchased outside Illinois at retail from a 28 retailer and which is titled or registered by an agency of 29 this State's government. 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, 20% of the net revenue 33 realized for the preceding month from the 6.25% general rate 34 on the selling price of tangible personal property, other -31- LRB9204584SMdv 1 than tangible personal property which is purchased outside 2 Illinois at retail from a retailer and which is titled or 3 registered by an agency of this State's government. 4 Beginning August 1, 2000, each month the Department shall 5 pay into the State and Local Sales Tax Reform Fund 100% of 6 the net revenue realized for the preceding month from the 7 1.25% rate on the selling price of motor fuel and gasohol. 8 Each month the Department shall pay into the County and 9 Mass Transit District Fund 20% the net revenue realized for 10 the preceding month from the 1.25% rate imposed upon the 11 selling price of any motor vehicle that is purchased outside 12 Illinois at retail by a lessor for purposes of leasing under 13 a lease subject to the Automobile Leasing Occupation and Use 14 Tax Act and which is titled or registered by an agency of 15 this State's government. 16 Beginning January 1, 1990, each month the Department 17 shall pay into the Local Government Tax Fund 16% of the net 18 revenue realized for the preceding month from the 6.25% 19 general rate on the selling price of tangible personal 20 property which is purchased outside Illinois at retail from a 21 retailer and which is titled or registered by an agency of 22 this State's government. 23 Each month the Department shall pay into the Local 24 Government Tax Fund 80% of the net revenue realized for the 25 preceding month from the 1.25% rate imposed upon the selling 26 price of any motor vehicle that is purchased outside Illinois 27 at retail by a lessor for purposes of leasing under a lease 28 subject to the Automobile Leasing Occupation and Use Tax Act 29 and which is titled or registered by an agency of this 30 State's government. 31 Of the remainder of the moneys received by the Department 32 pursuant to this Act, and including all moneys received by 33 the Department under Section 20 of the Automobile Leasing 34 Occupation and Use Tax Act and including all of the moneys -32- LRB9204584SMdv 1 received pursuant to the 5% rate imposed upon the selling 2 price of any motor vehicle that is purchased from lessors by 3 lessees of such vehicles in connection with a lease that was 4 subject to the Automobile Leasing Occupation and Use Tax Act 5Of the remainder of the moneys received by the Department6pursuant to this Act,(a) 1.75% thereof shall be paid into 7 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 8 and on and after July 1, 1989, 3.8% thereof shall be paid 9 into the Build Illinois Fund; provided, however, that if in 10 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 11 as the case may be, of the moneys received by the Department 12 and required to be paid into the Build Illinois Fund pursuant 13 to Section 3 of the Retailers' Occupation Tax Act, Section 9 14 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 15 Section 9 of the Service Occupation Tax Act, such Acts being 16 hereinafter called the "Tax Acts" and such aggregate of 2.2% 17 or 3.8%, as the case may be, of moneys being hereinafter 18 called the "Tax Act Amount", and (2) the amount transferred 19 to the Build Illinois Fund from the State and Local Sales Tax 20 Reform Fund shall be less than the Annual Specified Amount 21 (as defined in Section 3 of the Retailers' Occupation Tax 22 Act), an amount equal to the difference shall be immediately 23 paid into the Build Illinois Fund from other moneys received 24 by the Department pursuant to the Tax Acts; and further 25 provided, that if on the last business day of any month the 26 sum of (1) the Tax Act Amount required to be deposited into 27 the Build Illinois Bond Account in the Build Illinois Fund 28 during such month and (2) the amount transferred during such 29 month to the Build Illinois Fund from the State and Local 30 Sales Tax Reform Fund shall have been less than 1/12 of the 31 Annual Specified Amount, an amount equal to the difference 32 shall be immediately paid into the Build Illinois Fund from 33 other moneys received by the Department pursuant to the Tax 34 Acts; and, further provided, that in no event shall the -33- LRB9204584SMdv 1 payments required under the preceding proviso result in 2 aggregate payments into the Build Illinois Fund pursuant to 3 this clause (b) for any fiscal year in excess of the greater 4 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 5 for such fiscal year; and, further provided, that the amounts 6 payable into the Build Illinois Fund under this clause (b) 7 shall be payable only until such time as the aggregate amount 8 on deposit under each trust indenture securing Bonds issued 9 and outstanding pursuant to the Build Illinois Bond Act is 10 sufficient, taking into account any future investment income, 11 to fully provide, in accordance with such indenture, for the 12 defeasance of or the payment of the principal of, premium, if 13 any, and interest on the Bonds secured by such indenture and 14 on any Bonds expected to be issued thereafter and all fees 15 and costs payable with respect thereto, all as certified by 16 the Director of the Bureau of the Budget. If on the last 17 business day of any month in which Bonds are outstanding 18 pursuant to the Build Illinois Bond Act, the aggregate of the 19 moneys deposited in the Build Illinois Bond Account in the 20 Build Illinois Fund in such month shall be less than the 21 amount required to be transferred in such month from the 22 Build Illinois Bond Account to the Build Illinois Bond 23 Retirement and Interest Fund pursuant to Section 13 of the 24 Build Illinois Bond Act, an amount equal to such deficiency 25 shall be immediately paid from other moneys received by the 26 Department pursuant to the Tax Acts to the Build Illinois 27 Fund; provided, however, that any amounts paid to the Build 28 Illinois Fund in any fiscal year pursuant to this sentence 29 shall be deemed to constitute payments pursuant to clause (b) 30 of the preceding sentence and shall reduce the amount 31 otherwise payable for such fiscal year pursuant to clause (b) 32 of the preceding sentence. The moneys received by the 33 Department pursuant to this Act and required to be deposited 34 into the Build Illinois Fund are subject to the pledge, claim -34- LRB9204584SMdv 1 and charge set forth in Section 12 of the Build Illinois Bond 2 Act. 3 Subject to payment of amounts into the Build Illinois 4 Fund as provided in the preceding paragraph or in any 5 amendment thereto hereafter enacted, the following specified 6 monthly installment of the amount requested in the 7 certificate of the Chairman of the Metropolitan Pier and 8 Exposition Authority provided under Section 8.25f of the 9 State Finance Act, but not in excess of the sums designated 10 as "Total Deposit", shall be deposited in the aggregate from 11 collections under Section 9 of the Use Tax Act, Section 9 of 12 the Service Use Tax Act, Section 9 of the Service Occupation 13 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 14 into the McCormick Place Expansion Project Fund in the 15 specified fiscal years. 16 Fiscal Year Total Deposit 17 1993 $0 18 1994 53,000,000 19 1995 58,000,000 20 1996 61,000,000 21 1997 64,000,000 22 1998 68,000,000 23 1999 71,000,000 24 2000 75,000,000 25 2001 80,000,000 26 2002 84,000,000 27 2003 89,000,000 28 2004 93,000,000 29 2005 97,000,000 30 2006 102,000,000 31 2007 108,000,000 32 2008 115,000,000 33 2009 120,000,000 34 2010 126,000,000 -35- LRB9204584SMdv 1 2011 132,000,000 2 2012 138,000,000 3 2013 and 145,000,000 4 each fiscal year 5 thereafter that bonds 6 are outstanding under 7 Section 13.2 of the 8 Metropolitan Pier and 9 Exposition Authority 10 Act, but not after fiscal year 2029. 11 Beginning July 20, 1993 and in each month of each fiscal 12 year thereafter, one-eighth of the amount requested in the 13 certificate of the Chairman of the Metropolitan Pier and 14 Exposition Authority for that fiscal year, less the amount 15 deposited into the McCormick Place Expansion Project Fund by 16 the State Treasurer in the respective month under subsection 17 (g) of Section 13 of the Metropolitan Pier and Exposition 18 Authority Act, plus cumulative deficiencies in the deposits 19 required under this Section for previous months and years, 20 shall be deposited into the McCormick Place Expansion Project 21 Fund, until the full amount requested for the fiscal year, 22 but not in excess of the amount specified above as "Total 23 Deposit", has been deposited. 24 Subject to payment of amounts into the Build Illinois 25 Fund and the McCormick Place Expansion Project Fund pursuant 26 to the preceding paragraphs or in any amendment thereto 27 hereafter enacted, each month the Department shall pay into 28 the Local Government Distributive Fund .4% of the net revenue 29 realized for the preceding month from the 5% general rate, or 30 .4% of 80% of the net revenue realized for the preceding 31 month from the 6.25% general rate, as the case may be, on the 32 selling price of tangible personal property which amount 33 shall, subject to appropriation, be distributed as provided 34 in Section 2 of the State Revenue Sharing Act. No payments or -36- LRB9204584SMdv 1 distributions pursuant to this paragraph shall be made if the 2 tax imposed by this Act on photoprocessing products is 3 declared unconstitutional, or if the proceeds from such tax 4 are unavailable for distribution because of litigation. 5 Subject to payment of amounts into the Build Illinois 6 Fund, the McCormick Place Expansion Project Fund, and the 7 Local Government Distributive Fund pursuant to the preceding 8 paragraphs or in any amendments thereto hereafter enacted, 9 beginning July 1, 1993, the Department shall each month pay 10 into the Illinois Tax Increment Fund 0.27% of 80% of the net 11 revenue realized for the preceding month from the 6.25% 12 general rate on the selling price of tangible personal 13 property. 14 Of the remainder of the moneys received by the Department 15 pursuant to this Act, 75% thereof shall be paid into the 16 State Treasury and 25% shall be reserved in a special account 17 and used only for the transfer to the Common School Fund as 18 part of the monthly transfer from the General Revenue Fund in 19 accordance with Section 8a of the State Finance Act. 20 As soon as possible after the first day of each month, 21 upon certification of the Department of Revenue, the 22 Comptroller shall order transferred and the Treasurer shall 23 transfer from the General Revenue Fund to the Motor Fuel Tax 24 Fund an amount equal to 1.7% of 80% of the net revenue 25 realized under this Act for the second preceding month. 26 Beginning April 1, 2000, this transfer is no longer required 27 and shall not be made. 28 Net revenue realized for a month shall be the revenue 29 collected by the State pursuant to this Act, less the amount 30 paid out during that month as refunds to taxpayers for 31 overpayment of liability. 32 For greater simplicity of administration, manufacturers, 33 importers and wholesalers whose products are sold at retail 34 in Illinois by numerous retailers, and who wish to do so, may -37- LRB9204584SMdv 1 assume the responsibility for accounting and paying to the 2 Department all tax accruing under this Act with respect to 3 such sales, if the retailers who are affected do not make 4 written objection to the Department to this arrangement. 5 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98; 6 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff. 7 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00; 91-901, 8 eff. 1-1-01; revised 8-30-00.) 9 Section 90. The Retailers' Occupation Tax Act is amended 10 by changing Sections 1c, 2-10, and 3 as follows: 11 (35 ILCS 120/1c) (from Ch. 120, par. 440c) 12 Sec. 1c. A person who is engaged in the business of 13 leasing or renting motor vehicles to others and who, in 14 connection with such business sells any used motor vehicle to 15 a purchaser for his use and not for the purpose of resale, is 16 a retailer engaged in the business of selling tangible 17 personal property at retail under this Act to the extent of 18 the value of the vehicle sold. For the purpose of this 19 Section, "motor vehicle" means any motor vehicle of the first 20 division, a motor vehicle of the second division which is a 21 self-contained motor vehicle designed or permanently 22 converted to provide living quarters for recreational, 23 camping or travel use, with direct walk through access to the 24 living quarters from the driver's seat, or a motor vehicle of 25 a second division which is of the van configuration designed 26 for the transportation of not less than 7 nor more than 16 27 passengers, as defined in Section 1-146 of the Illinois 28 Vehicle Code.For the purpose of this Section "motor vehicle"29has the meaning prescribed in Section 1-157 of The Illinois30Vehicle Code, as now or hereafter amended. (Nothing provided31herein shall affect liability incurred under this Act because32of the sale at retail of such motor vehicles to a lessor.)-38- LRB9204584SMdv 1 (Source: P.A. 80-598.) 2 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10) 3 Sec. 2-10. Rate of tax. Unless otherwise provided in 4 this Section, the tax imposed by this Act is at the rate of 5 6.25% of gross receipts from sales of tangible personal 6 property made in the course of business. 7 Beginning on July 1, 2000 and through December 31, 2000, 8 with respect to motor fuel, as defined in Section 1.1 of the 9 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 10 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 11 Within 14 days after the effective date of this 12 amendatory Act of the 91st General Assembly, each retailer of 13 motor fuel and gasohol shall cause the following notice to be 14 posted in a prominently visible place on each retail 15 dispensing device that is used to dispense motor fuel or 16 gasohol in the State of Illinois: "As of July 1, 2000, the 17 State of Illinois has eliminated the State's share of sales 18 tax on motor fuel and gasohol through December 31, 2000. The 19 price on this pump should reflect the elimination of the 20 tax." The notice shall be printed in bold print on a sign 21 that is no smaller than 4 inches by 8 inches. The sign shall 22 be clearly visible to customers. Any retailer who fails to 23 post or maintain a required sign through December 31, 2000 is 24 guilty of a petty offense for which the fine shall be $500 25 per day per each retail premises where a violation occurs. 26 With respect to gasohol, as defined in the Use Tax Act, 27 the tax imposed by this Act applies to 70% of the proceeds of 28 sales made on or after January 1, 1990, and before July 1, 29 2003, and to 100% of the proceeds of sales made thereafter. 30 With respect to food for human consumption that is to be 31 consumed off the premises where it is sold (other than 32 alcoholic beverages, soft drinks, and food that has been 33 prepared for immediate consumption) and prescription and -39- LRB9204584SMdv 1 nonprescription medicines, drugs, medical appliances, 2 modifications to a motor vehicle for the purpose of rendering 3 it usable by a disabled person, and insulin, urine testing 4 materials, syringes, and needles used by diabetics, for human 5 use, the tax is imposed at the rate of 1%. For the purposes 6 of this Section, the term "soft drinks" means any complete, 7 finished, ready-to-use, non-alcoholic drink, whether 8 carbonated or not, including but not limited to soda water, 9 cola, fruit juice, vegetable juice, carbonated water, and all 10 other preparations commonly known as soft drinks of whatever 11 kind or description that are contained in any closed or 12 sealed bottle, can, carton, or container, regardless of size. 13 "Soft drinks" does not include coffee, tea, non-carbonated 14 water, infant formula, milk or milk products as defined in 15 the Grade A Pasteurized Milk and Milk Products Act, or drinks 16 containing 50% or more natural fruit or vegetable juice. 17 Notwithstanding any other provisions of this Act, "food 18 for human consumption that is to be consumed off the premises 19 where it is sold" includes all food sold through a vending 20 machine, except soft drinks and food products that are 21 dispensed hot from a vending machine, regardless of the 22 location of the vending machine. 23 With respect to any motor vehicle (as the term "motor 24 vehicle" is defined in Section 1c of this Act) that is sold 25 to a lessor for purposes of leasing under a lease subject to 26 the Automobile Leasing Occupation and Use Tax Act, the tax is 27 imposed at the rate of 1.25%. 28 With respect to any motor vehicle (as the term "motor 29 vehicle" is defined in Section 1c of this Act) that has been 30 leased by a lessor to a lessee under a lease that is subject 31 to the Automobile Leasing Occupation and Use Tax Act, and is 32 subsequently sold to the lessee of such vehicle, the tax is 33 imposed at the rate of 5%. 34 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; -40- LRB9204584SMdv 1 91-51, eff. 6-30-99; 91-872, eff. 7-1-00.) 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- LRB9204584SMdv 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- LRB9204584SMdv 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 -43- LRB9204584SMdv 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- LRB9204584SMdv 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 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- LRB9204584SMdv 1 provided in Section 2-5 of this Act, then that seller may 2 report the transfer of all aircraft, watercraft, motor 3 vehicles or trailers involved in that transaction to the 4 Department on the same uniform invoice-transaction reporting 5 return form. For purposes of this Section, "watercraft" 6 means a Class 2, Class 3, or Class 4 watercraft as defined in 7 Section 3-2 of the Boat Registration and Safety Act, a 8 personal watercraft, or any boat equipped with an inboard 9 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- LRB9204584SMdv 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- LRB9204584SMdv 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- LRB9204584SMdv 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- LRB9204584SMdv 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- LRB9204584SMdv 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- LRB9204584SMdv 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 -52- LRB9204584SMdv 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- LRB9204584SMdv 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 -54- LRB9204584SMdv 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 August 1, 2000, each month the Department shall 19 pay into the County and Mass Transit District Fund 20% of the 20 net revenue realized for the preceding month from the 1.25% 21 rate on the selling price of motor fuel and gasohol. 22 Each month the Department shall pay into the County and 23 Mass Transit District Fund 20% of the net revenue realized 24 for the preceding month from the 1.25% rate imposed upon the 25 sale of any motor vehicle that is sold at retail to a lessor 26 for purposes of leasing under a lease subject to the 27 Automobile Leasing Occupation and Use Tax Act. 28 Beginning January 1, 1990, each month the Department 29 shall pay into the Local Government Tax Fund 16% of the net 30 revenue realized for the preceding month from the 6.25% 31 general rate on the selling price of tangible personal 32 property. 33 Beginning August 1, 2000, each month the Department shall 34 pay into the Local Government Tax Fund 80% of the net revenue -55- LRB9204584SMdv 1 realized for the preceding month from the 1.25% rate on the 2 selling price of motor fuel and gasohol. 3 Each month the Department shall pay into the Local 4 Government Tax Fund 80% of the net revenue realized for the 5 preceding month from the 1.25% rate imposed upon the sale of 6 any motor vehicle that is sold at retail to a lessor for 7 purposes of leasing under a lease subject to the Automobile 8 Leasing Occupation and Use Tax Act. 9 Of the remainder of the moneys received by the Department 10 pursuant to this Act, and including all moneys received by 11 the Department pursuant to Section 10 of the Automobile 12 Leasing Occupation and Use Tax Act, and including all of the 13 moneys received pursuant to the 5% rate imposed upon sales of 14 motor vehicles by lessors to the lessees of such vehicles in 15 connection with a lease that was subject to the Automobile 16 Leasing Occupation and Use Tax ActOf the remainder of the17moneys received by the Department pursuant to this Act,(a) 18 1.75% thereof shall be paid into the Build Illinois Fund and 19 (b) prior to July 1, 1989, 2.2% and on and after July 1, 20 1989, 3.8% thereof shall be paid into the Build Illinois 21 Fund; provided, however, that if in any fiscal year the sum 22 of (1) the aggregate of 2.2% or 3.8%, as the case may be, of 23 the moneys received by the Department and required to be paid 24 into the Build Illinois Fund pursuant to this Act, Section 9 25 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 26 Section 9 of the Service Occupation Tax Act, such Acts being 27 hereinafter called the "Tax Acts" and such aggregate of 2.2% 28 or 3.8%, as the case may be, of moneys being hereinafter 29 called the "Tax Act Amount", and (2) the amount transferred 30 to the Build Illinois Fund from the State and Local Sales Tax 31 Reform Fund shall be less than the Annual Specified Amount 32 (as hereinafter defined), an amount equal to the difference 33 shall be immediately paid into the Build Illinois Fund from 34 other moneys received by the Department pursuant to the Tax -56- LRB9204584SMdv 1 Acts; the "Annual Specified Amount" means the amounts 2 specified below for fiscal years 1986 through 1993: 3 Fiscal Year Annual Specified Amount 4 1986 $54,800,000 5 1987 $76,650,000 6 1988 $80,480,000 7 1989 $88,510,000 8 1990 $115,330,000 9 1991 $145,470,000 10 1992 $182,730,000 11 1993 $206,520,000; 12 and means the Certified Annual Debt Service Requirement (as 13 defined in Section 13 of the Build Illinois Bond Act) or the 14 Tax Act Amount, whichever is greater, for fiscal year 1994 15 and each fiscal year thereafter; and further provided, that 16 if on the last business day of any month the sum of (1) the 17 Tax Act Amount required to be deposited into the Build 18 Illinois Bond Account in the Build Illinois Fund during such 19 month and (2) the amount transferred to the Build Illinois 20 Fund from the State and Local Sales Tax Reform Fund shall 21 have been less than 1/12 of the Annual Specified Amount, an 22 amount equal to the difference shall be immediately paid into 23 the Build Illinois Fund from other moneys received by the 24 Department pursuant to the Tax Acts; and, further provided, 25 that in no event shall the payments required under the 26 preceding proviso result in aggregate payments into the Build 27 Illinois Fund pursuant to this clause (b) for any fiscal year 28 in excess of the greater of (i) the Tax Act Amount or (ii) 29 the Annual Specified Amount for such fiscal year. The 30 amounts payable into the Build Illinois Fund under clause (b) 31 of the first sentence in this paragraph shall be payable only 32 until such time as the aggregate amount on deposit under each 33 trust indenture securing Bonds issued and outstanding 34 pursuant to the Build Illinois Bond Act is sufficient, taking -57- LRB9204584SMdv 1 into account any future investment income, to fully provide, 2 in accordance with such indenture, for the defeasance of or 3 the payment of the principal of, premium, if any, and 4 interest on the Bonds secured by such indenture and on any 5 Bonds expected to be issued thereafter and all fees and costs 6 payable with respect thereto, all as certified by the 7 Director of the Bureau of the Budget. If on the last 8 business day of any month in which Bonds are outstanding 9 pursuant to the Build Illinois Bond Act, the aggregate of 10 moneys deposited in the Build Illinois Bond Account in the 11 Build Illinois Fund in such month shall be less than the 12 amount required to be transferred in such month from the 13 Build Illinois Bond Account to the Build Illinois Bond 14 Retirement and Interest Fund pursuant to Section 13 of the 15 Build Illinois Bond Act, an amount equal to such deficiency 16 shall be immediately paid from other moneys received by the 17 Department pursuant to the Tax Acts to the Build Illinois 18 Fund; provided, however, that any amounts paid to the Build 19 Illinois Fund in any fiscal year pursuant to this sentence 20 shall be deemed to constitute payments pursuant to clause (b) 21 of the first sentence of this paragraph and shall reduce the 22 amount otherwise payable for such fiscal year pursuant to 23 that clause (b). The moneys received by the Department 24 pursuant to this Act and required to be deposited into the 25 Build Illinois Fund are subject to the pledge, claim and 26 charge set forth in Section 12 of the Build Illinois Bond 27 Act. 28 Subject to payment of amounts into the Build Illinois 29 Fund as provided in the preceding paragraph or in any 30 amendment thereto hereafter enacted, the following specified 31 monthly installment of the amount requested in the 32 certificate of the Chairman of the Metropolitan Pier and 33 Exposition Authority provided under Section 8.25f of the 34 State Finance Act, but not in excess of sums designated as -58- LRB9204584SMdv 1 "Total Deposit", shall be deposited in the aggregate from 2 collections under Section 9 of the Use Tax Act, Section 9 of 3 the Service Use Tax Act, Section 9 of the Service Occupation 4 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 5 into the McCormick Place Expansion Project Fund in the 6 specified fiscal years. 7 Fiscal Year Total Deposit 8 1993 $0 9 1994 53,000,000 10 1995 58,000,000 11 1996 61,000,000 12 1997 64,000,000 13 1998 68,000,000 14 1999 71,000,000 15 2000 75,000,000 16 2001 80,000,000 17 2002 84,000,000 18 2003 89,000,000 19 2004 93,000,000 20 2005 97,000,000 21 2006 102,000,000 22 2007 108,000,000 23 2008 115,000,000 24 2009 120,000,000 25 2010 126,000,000 26 2011 132,000,000 27 2012 138,000,000 28 2013 and 145,000,000 29 each fiscal year 30 thereafter that bonds 31 are outstanding under 32 Section 13.2 of the 33 Metropolitan Pier and 34 Exposition Authority -59- LRB9204584SMdv 1 Act, but not after fiscal year 2029. 2 Beginning July 20, 1993 and in each month of each fiscal 3 year thereafter, one-eighth of the amount requested in the 4 certificate of the Chairman of the Metropolitan Pier and 5 Exposition Authority for that fiscal year, less the amount 6 deposited into the McCormick Place Expansion Project Fund by 7 the State Treasurer in the respective month under subsection 8 (g) of Section 13 of the Metropolitan Pier and Exposition 9 Authority Act, plus cumulative deficiencies in the deposits 10 required under this Section for previous months and years, 11 shall be deposited into the McCormick Place Expansion Project 12 Fund, until the full amount requested for the fiscal year, 13 but not in excess of the amount specified above as "Total 14 Deposit", has been deposited. 15 Subject to payment of amounts into the Build Illinois 16 Fund and the McCormick Place Expansion Project Fund pursuant 17 to the preceding paragraphs or in any amendment thereto 18 hereafter enacted, each month the Department shall pay into 19 the Local Government Distributive Fund 0.4% of the net 20 revenue realized for the preceding month from the 5% general 21 rate or 0.4% of 80% of the net revenue realized for the 22 preceding month from the 6.25% general rate, as the case may 23 be, on the selling price of tangible personal property which 24 amount shall, subject to appropriation, be distributed as 25 provided in Section 2 of the State Revenue Sharing Act. No 26 payments or distributions pursuant to this paragraph shall be 27 made if the tax imposed by this Act on photoprocessing 28 products is declared unconstitutional, or if the proceeds 29 from such tax are unavailable for distribution because of 30 litigation. 31 Subject to payment of amounts into the Build Illinois 32 Fund, the McCormick Place Expansion Project Fund, and the 33 Local Government Distributive Fund pursuant to the preceding 34 paragraphs or in any amendments thereto hereafter enacted, -60- LRB9204584SMdv 1 beginning July 1, 1993, the Department shall each month pay 2 into the Illinois Tax Increment Fund 0.27% of 80% of the net 3 revenue realized for the preceding month from the 6.25% 4 general rate on the selling price of tangible personal 5 property. 6 Of the remainder of the moneys received by the Department 7 pursuant to this Act, 75% thereof shall be paid into the 8 State Treasury and 25% shall be reserved in a special account 9 and used only for the transfer to the Common School Fund as 10 part of the monthly transfer from the General Revenue Fund in 11 accordance with Section 8a of the State Finance Act. 12 The Department may, upon separate written notice to a 13 taxpayer, require the taxpayer to prepare and file with the 14 Department on a form prescribed by the Department within not 15 less than 60 days after receipt of the notice an annual 16 information return for the tax year specified in the notice. 17 Such annual return to the Department shall include a 18 statement of gross receipts as shown by the retailer's last 19 Federal income tax return. If the total receipts of the 20 business as reported in the Federal income tax return do not 21 agree with the gross receipts reported to the Department of 22 Revenue for the same period, the retailer shall attach to his 23 annual return a schedule showing a reconciliation of the 2 24 amounts and the reasons for the difference. The retailer's 25 annual return to the Department shall also disclose the cost 26 of goods sold by the retailer during the year covered by such 27 return, opening and closing inventories of such goods for 28 such year, costs of goods used from stock or taken from stock 29 and given away by the retailer during such year, payroll 30 information of the retailer's business during such year and 31 any additional reasonable information which the Department 32 deems would be helpful in determining the accuracy of the 33 monthly, quarterly or annual returns filed by such retailer 34 as provided for in this Section. -61- LRB9204584SMdv 1 If the annual information return required by this Section 2 is not filed when and as required, the taxpayer shall be 3 liable as follows: 4 (i) Until January 1, 1994, the taxpayer shall be 5 liable for a penalty equal to 1/6 of 1% of the tax due 6 from such taxpayer under this Act during the period to be 7 covered by the annual return for each month or fraction 8 of a month until such return is filed as required, the 9 penalty to be assessed and collected in the same manner 10 as any other penalty provided for in this Act. 11 (ii) On and after January 1, 1994, the taxpayer 12 shall be liable for a penalty as described in Section 3-4 13 of the Uniform Penalty and Interest Act. 14 The chief executive officer, proprietor, owner or highest 15 ranking manager shall sign the annual return to certify the 16 accuracy of the information contained therein. Any person 17 who willfully signs the annual return containing false or 18 inaccurate information shall be guilty of perjury and 19 punished accordingly. The annual return form prescribed by 20 the Department shall include a warning that the person 21 signing the return may be liable for perjury. 22 The provisions of this Section concerning the filing of 23 an annual information return do not apply to a retailer who 24 is not required to file an income tax return with the United 25 States Government. 26 As soon as possible after the first day of each month, 27 upon certification of the Department of Revenue, the 28 Comptroller shall order transferred and the Treasurer shall 29 transfer from the General Revenue Fund to the Motor Fuel Tax 30 Fund an amount equal to 1.7% of 80% of the net revenue 31 realized under this Act for the second preceding month. 32 Beginning April 1, 2000, this transfer is no longer required 33 and shall not be made. 34 Net revenue realized for a month shall be the revenue -62- LRB9204584SMdv 1 collected by the State pursuant to this Act, less the amount 2 paid out during that month as refunds to taxpayers for 3 overpayment of liability. 4 For greater simplicity of administration, manufacturers, 5 importers and wholesalers whose products are sold at retail 6 in Illinois by numerous retailers, and who wish to do so, may 7 assume the responsibility for accounting and paying to the 8 Department all tax accruing under this Act with respect to 9 such sales, if the retailers who are affected do not make 10 written objection to the Department to this arrangement. 11 Any person who promotes, organizes, provides retail 12 selling space for concessionaires or other types of sellers 13 at the Illinois State Fair, DuQuoin State Fair, county fairs, 14 local fairs, art shows, flea markets and similar exhibitions 15 or events, including any transient merchant as defined by 16 Section 2 of the Transient Merchant Act of 1987, is required 17 to file a report with the Department providing the name of 18 the merchant's business, the name of the person or persons 19 engaged in merchant's business, the permanent address and 20 Illinois Retailers Occupation Tax Registration Number of the 21 merchant, the dates and location of the event and other 22 reasonable information that the Department may require. The 23 report must be filed not later than the 20th day of the month 24 next following the month during which the event with retail 25 sales was held. Any person who fails to file a report 26 required by this Section commits a business offense and is 27 subject to a fine not to exceed $250. 28 Any person engaged in the business of selling tangible 29 personal property at retail as a concessionaire or other type 30 of seller at the Illinois State Fair, county fairs, art 31 shows, flea markets and similar exhibitions or events, or any 32 transient merchants, as defined by Section 2 of the Transient 33 Merchant Act of 1987, may be required to make a daily report 34 of the amount of such sales to the Department and to make a -63- LRB9204584SMdv 1 daily payment of the full amount of tax due. The Department 2 shall impose this requirement when it finds that there is a 3 significant risk of loss of revenue to the State at such an 4 exhibition or event. Such a finding shall be based on 5 evidence that a substantial number of concessionaires or 6 other sellers who are not residents of Illinois will be 7 engaging in the business of selling tangible personal 8 property at retail at the exhibition or event, or other 9 evidence of a significant risk of loss of revenue to the 10 State. The Department shall notify concessionaires and other 11 sellers affected by the imposition of this requirement. In 12 the absence of notification by the Department, the 13 concessionaires and other sellers shall file their returns as 14 otherwise required in this Section. 15 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98; 16 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff. 17 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00; 91-901, 18 eff. 1-1-01; revised 1-15-01.) 19 Section 99. Effective date. This Act takes effect on 20 July 1, 2001.