State of Illinois
92nd General Assembly
Legislation

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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,  "motor
31    vehicle"  has  the meaning prescribed in Section 1-157 of The
32    Illinois Vehicle Code, as now or hereafter amended.  (Nothing
 
                            -16-               LRB9204584SMdv
 1    provided herein shall affect liability  incurred  under  this
 2    Act 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
 5    Of the remainder of the moneys  received  by  the  Department
 6    pursuant  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"
29    has the meaning prescribed in Section 1-157 of  The  Illinois
30    Vehicle Code, as now or hereafter amended.  (Nothing provided
31    herein shall affect liability incurred under this Act because
32    of 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 Act Of the remainder of the
17    moneys 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.

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