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92_SB0148 LRB9202158SMdv 1 AN ACT in relation to taxation. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The State Finance Act is amended by changing 5 Sections 6z-18 and 6z-20 as follows: 6 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18) 7 Sec. 6z-18. A portion of the money paid into the Local 8 Government Tax Fund from sales of food for human consumption 9 which is to be consumed off the premises where it is sold 10 (other than alcoholic beverages, soft drinks and food which 11 has been prepared for immediate consumption) and prescription 12 and nonprescription medicines, drugs, medical appliances and 13 insulin, urine testing materials, syringes and needles used 14 by diabetics, which occurred in municipalities, shall be 15 distributed to each municipality based upon the sales which 16 occurred in that municipality. The remainder shall be 17 distributed to each county based upon the sales which 18 occurred in the unincorporated area of that county. 19 A portion of the money paid into the Local Government Tax 20 Fund from the 6.25% general use tax rate on the selling price 21 of tangible personal property which is purchased outside 22 Illinois at retail from a retailer and which is titled or 23 registered by any agency of this State's government shall be 24 distributed to municipalities as provided in this paragraph. 25 Each municipality shall receive the amount attributable to 26 sales for which Illinois addresses for titling or 27 registration purposes are given as being in such 28 municipality. The remainder of the money paid into the Local 29 Government Tax Fund from such sales shall be distributed to 30 counties. Each county shall receive the amount attributable 31 to sales for which Illinois addresses for titling or -2- LRB9202158SMdv 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 6.25% general rate (and, beginning July 1, 2000 5 and through December 31, 2000, the 1.25% rate on motor fuel 6 and gasohol, and, beginning August 1 and through August 8 of 7 2001 and each year thereafter, the 1.25% rate on "school 8 supplies" as defined in Section 2-10 of the Retailers' 9 Occupation Tax Act) on sales subject to taxation under the 10 Retailers' Occupation Tax Act and the Service Occupation Tax 11 Act, which occurred in municipalities, shall be distributed 12 to each municipality, based upon the sales which occurred in 13 that municipality. The remainder shall be distributed to each 14 county, based upon the sales which occurred in the 15 unincorporated area of such county. 16 For the purpose of determining allocation to the local 17 government unit, a retail sale by a producer of coal or other 18 mineral mined in Illinois is a sale at retail at the place 19 where the coal or other mineral mined in Illinois is 20 extracted from the earth. This paragraph does not apply to 21 coal or other mineral when it is delivered or shipped by the 22 seller to the purchaser at a point outside Illinois so that 23 the sale is exempt under the United States Constitution as a 24 sale in interstate or foreign commerce. 25 Whenever the Department determines that a refund of money 26 paid into the Local Government Tax Fund should be made to a 27 claimant instead of issuing a credit memorandum, the 28 Department shall notify the State Comptroller, who shall 29 cause the order to be drawn for the amount specified, and to 30 the person named, in such notification from the Department. 31 Such refund shall be paid by the State Treasurer out of the 32 Local Government Tax Fund. 33 On or before the 25th day of each calendar month, the 34 Department shall prepare and certify to the Comptroller the -3- LRB9202158SMdv 1 disbursement of stated sums of money to named municipalities 2 and counties, the municipalities and counties to be those 3 entitled to distribution of taxes or penalties paid to the 4 Department during the second preceding calendar month. The 5 amount to be paid to each municipality or county shall be the 6 amount (not including credit memoranda) collected during the 7 second preceding calendar month by the Department and paid 8 into the Local Government Tax Fund, plus an amount the 9 Department determines is necessary to offset any amounts 10 which were erroneously paid to a different taxing body, and 11 not including an amount equal to the amount of refunds made 12 during the second preceding calendar month by the Department, 13 and not including any amount which the Department determines 14 is necessary to offset any amounts which are payable to a 15 different taxing body but were erroneously paid to the 16 municipality or county. Within 10 days after receipt, by the 17 Comptroller, of the disbursement certification to the 18 municipalities and counties, provided for in this Section to 19 be given to the Comptroller by the Department, the 20 Comptroller shall cause the orders to be drawn for the 21 respective amounts in accordance with the directions 22 contained in such certification. 23 When certifying the amount of monthly disbursement to a 24 municipality or county under this Section, the Department 25 shall increase or decrease that amount by an amount necessary 26 to offset any misallocation of previous disbursements. The 27 offset amount shall be the amount erroneously disbursed 28 within the 6 months preceding the time a misallocation is 29 discovered. 30 The provisions directing the distributions from the 31 special fund in the State Treasury provided for in this 32 Section shall constitute an irrevocable and continuing 33 appropriation of all amounts as provided herein. The State 34 Treasurer and State Comptroller are hereby authorized to make -4- LRB9202158SMdv 1 distributions as provided in this Section. 2 In construing any development, redevelopment, annexation, 3 preannexation or other lawful agreement in effect prior to 4 September 1, 1990, which describes or refers to receipts from 5 a county or municipal retailers' occupation tax, use tax or 6 service occupation tax which now cannot be imposed, such 7 description or reference shall be deemed to include the 8 replacement revenue for such abolished taxes, distributed 9 from the Local Government Tax Fund. 10 (Source: P.A. 90-491, eff. 1-1-98; 91-51, eff. 6-30-99; 11 91-872, eff. 7-1-00.) 12 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20) 13 Sec. 6z-20. Of the money received from the 6.25% general 14 rate (and, beginning July 1, 2000 and through December 31, 15 2000, the 1.25% rate on motor fuel and gasohol, and, 16 beginning August 1 and through August 8 of 2001 and each year 17 thereafter, the 1.25% rate on "school supplies" as defined in 18 Section 2-10 of the Retailers' Occupation Tax Act) on sales 19 subject to taxation under the Retailers' Occupation Tax Act 20 and Service Occupation Tax Act and paid into the County and 21 Mass Transit District Fund, distribution to the Regional 22 Transportation Authority tax fund, created pursuant to 23 Section 4.03 of the Regional Transportation Authority Act, 24 for deposit therein shall be made based upon the retail sales 25 occurring in a county having more than 3,000,000 inhabitants. 26 The remainder shall be distributed to each county having 27 3,000,000 or fewer inhabitants based upon the retail sales 28 occurring in each such county. 29 For the purpose of determining allocation to the local 30 government unit, a retail sale by a producer of coal or other 31 mineral mined in Illinois is a sale at retail at the place 32 where the coal or other mineral mined in Illinois is 33 extracted from the earth. This paragraph does not apply to -5- LRB9202158SMdv 1 coal or other mineral when it is delivered or shipped by the 2 seller to the purchaser at a point outside Illinois so that 3 the sale is exempt under the United States Constitution as a 4 sale in interstate or foreign commerce. 5 Of the money received from the 6.25% general use tax rate 6 on tangible personal property which is purchased outside 7 Illinois at retail from a retailer and which is titled or 8 registered by any agency of this State's government and paid 9 into the County and Mass Transit District Fund, the amount 10 for which Illinois addresses for titling or registration 11 purposes are given as being in each county having more than 12 3,000,000 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 money 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 the county. Any money paid into the 19 Regional Transportation Authority Occupation and Use Tax 20 Replacement Fund from the County and Mass Transit District 21 Fund prior to January 14, 1991, which has not been paid to 22 the Authority prior to that date, shall be transferred to the 23 Regional Transportation Authority tax fund. 24 Whenever the Department determines that a refund of money 25 paid into the County and Mass Transit District Fund should be 26 made to a claimant instead of issuing a credit memorandum, 27 the Department shall notify the State Comptroller, who shall 28 cause the order to be drawn for the amount specified, and to 29 the person named, in such notification from the Department. 30 Such refund shall be paid by the State Treasurer out of the 31 County and Mass Transit District Fund. 32 On or before the 25th day of each calendar month, the 33 Department shall prepare and certify to the Comptroller the 34 disbursement of stated sums of money to the Regional -6- LRB9202158SMdv 1 Transportation Authority and to named counties, the counties 2 to be those entitled to distribution, as hereinabove 3 provided, of taxes or penalties paid to the Department during 4 the second preceding calendar month. The amount to be paid 5 to the Regional Transportation Authority and each county 6 having 3,000,000 or fewer inhabitants shall be the amount 7 (not including credit memoranda) collected during the second 8 preceding calendar month by the Department and paid into the 9 County and Mass Transit District Fund, plus an amount the 10 Department determines is necessary to offset any amounts 11 which were erroneously paid to a different taxing body, and 12 not including an amount equal to the amount of refunds made 13 during the second preceding calendar month by the Department, 14 and not including any amount which the Department determines 15 is necessary to offset any amounts which were payable to a 16 different taxing body but were erroneously paid to the 17 Regional Transportation Authority or county. Within 10 days 18 after receipt, by the Comptroller, of the disbursement 19 certification to the Regional Transportation Authority and 20 counties, provided for in this Section to be given to the 21 Comptroller by the Department, the Comptroller shall cause 22 the orders to be drawn for the respective amounts in 23 accordance with the directions contained in such 24 certification. 25 When certifying the amount of a monthly disbursement to 26 the Regional Transportation Authority or to a county under 27 this Section, the Department shall increase or decrease that 28 amount by an amount necessary to offset any misallocation of 29 previous disbursements. The offset amount shall be the 30 amount erroneously disbursed within the 6 months preceding 31 the time a misallocation is discovered. 32 The provisions directing the distributions from the 33 special fund in the State Treasury provided for in this 34 Section and from the Regional Transportation Authority tax -7- LRB9202158SMdv 1 fund created by Section 4.03 of the Regional Transportation 2 Authority Act shall constitute an irrevocable and continuing 3 appropriation of all amounts as provided herein. The State 4 Treasurer and State Comptroller are hereby authorized to make 5 distributions as provided in this Section. 6 In construing any development, redevelopment, annexation, 7 preannexation or other lawful agreement in effect prior to 8 September 1, 1990, which describes or refers to receipts from 9 a county or municipal retailers' occupation tax, use tax or 10 service occupation tax which now cannot be imposed, such 11 description or reference shall be deemed to include the 12 replacement revenue for such abolished taxes, distributed 13 from the County and Mass Transit District Fund or Local 14 Government Distributive Fund, as the case may be. 15 (Source: P.A. 90-491, eff. 1-1-98; 91-872, eff. 7-1-00.) 16 Section 10. The Use Tax Act is amended by changing 17 Sections 3-10 and 9 as follows: 18 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10) 19 Sec. 3-10. Rate of tax. Unless otherwise provided in 20 this Section, the tax imposed by this Act is at the rate of 21 6.25% of either the selling price or the fair market value, 22 if any, of the tangible personal property. In all cases 23 where property functionally used or consumed is the same as 24 the property that was purchased at retail, then the tax is 25 imposed on the selling price of the property. In all cases 26 where property functionally used or consumed is a by-product 27 or waste product that has been refined, manufactured, or 28 produced from property purchased at retail, then the tax is 29 imposed on the lower of the fair market value, if any, of the 30 specific property so used in this State or on the selling 31 price of the property purchased at retail. For purposes of 32 this Section "fair market value" means the price at which -8- LRB9202158SMdv 1 property would change hands between a willing buyer and a 2 willing seller, neither being under any compulsion to buy or 3 sell and both having reasonable knowledge of the relevant 4 facts. The fair market value shall be established by Illinois 5 sales by the taxpayer of the same property as that 6 functionally used or consumed, or if there are no such sales 7 by the taxpayer, then comparable sales or purchases of 8 property of like kind and character in Illinois. 9 Beginning on July 1, 2000 and through December 31, 2000, 10 with respect to motor fuel, as defined in Section 1.1 of the 11 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 12 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 13 Beginning on August 1 and through August 8 of 2001 and 14 each year thereafter, with respect to "school supplies" as 15 defined in Section 2-10 of the Retailers' Occupation Tax Act, 16 the tax is imposed at the rate of 1.25%. The changes made by 17 this amendatory Act of the 92nd General Assembly are exempt 18 from the provisions of Section 3-90. 19 With respect to gasohol, the tax imposed by this Act 20 applies to 70% of the proceeds of sales made on or after 21 January 1, 1990, and before July 1, 2003, and to 100% of the 22 proceeds of sales made thereafter. 23 With respect to food for human consumption that is to be 24 consumed off the premises where it is sold (other than 25 alcoholic beverages, soft drinks, and food that has been 26 prepared for immediate consumption) and prescription and 27 nonprescription medicines, drugs, medical appliances, 28 modifications to a motor vehicle for the purpose of rendering 29 it usable by a disabled person, and insulin, urine testing 30 materials, syringes, and needles used by diabetics, for human 31 use, the tax is imposed at the rate of 1%. For the purposes 32 of this Section, the term "soft drinks" means any complete, 33 finished, ready-to-use, non-alcoholic drink, whether 34 carbonated or not, including but not limited to soda water, -9- LRB9202158SMdv 1 cola, fruit juice, vegetable juice, carbonated water, and all 2 other preparations commonly known as soft drinks of whatever 3 kind or description that are contained in any closed or 4 sealed bottle, can, carton, or container, regardless of size. 5 "Soft drinks" does not include coffee, tea, non-carbonated 6 water, infant formula, milk or milk products as defined in 7 the Grade A Pasteurized Milk and Milk Products Act, or drinks 8 containing 50% or more natural fruit or vegetable juice. 9 Notwithstanding any other provisions of this Act, "food 10 for human consumption that is to be consumed off the premises 11 where it is sold" includes all food sold through a vending 12 machine, except soft drinks and food products that are 13 dispensed hot from a vending machine, regardless of the 14 location of the vending machine. 15 If the property that is purchased at retail from a 16 retailer is acquired outside Illinois and used outside 17 Illinois before being brought to Illinois for use here and is 18 taxable under this Act, the "selling price" on which the tax 19 is computed shall be reduced by an amount that represents a 20 reasonable allowance for depreciation for the period of prior 21 out-of-state use. 22 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 23 91-51, eff. 6-30-99; 91-872, eff. 7-1-00.) 24 (35 ILCS 105/9) (from Ch. 120, par. 439.9) 25 Sec. 9. Except as to motor vehicles, watercraft, 26 aircraft, and trailers that are required to be registered 27 with an agency of this State, each retailer required or 28 authorized to collect the tax imposed by this Act shall pay 29 to the Department the amount of such tax (except as otherwise 30 provided) at the time when he is required to file his return 31 for the period during which such tax was collected, less a 32 discount of 2.1% prior to January 1, 1990, and 1.75% on and 33 after January 1, 1990, or $5 per calendar year, whichever is -10- LRB9202158SMdv 1 greater, which is allowed to reimburse the retailer for 2 expenses incurred in collecting the tax, keeping records, 3 preparing and filing returns, remitting the tax and supplying 4 data to the Department on request. In the case of retailers 5 who report and pay the tax on a transaction by transaction 6 basis, as provided in this Section, such discount shall be 7 taken with each such tax remittance instead of when such 8 retailer files his periodic return. A retailer need not 9 remit that part of any tax collected by him to the extent 10 that he is required to remit and does remit the tax imposed 11 by the Retailers' Occupation Tax Act, with respect to the 12 sale of the same property. 13 Where such tangible personal property is sold under a 14 conditional sales contract, or under any other form of sale 15 wherein the payment of the principal sum, or a part thereof, 16 is extended beyond the close of the period for which the 17 return is filed, the retailer, in collecting the tax (except 18 as to motor vehicles, watercraft, aircraft, and trailers that 19 are required to be registered with an agency of this State), 20 may collect for each tax return period, only the tax 21 applicable to that part of the selling price actually 22 received during such tax return period. 23 Except as provided in this Section, on or before the 24 twentieth day of each calendar month, such retailer shall 25 file a return for the preceding calendar month. Such return 26 shall be filed on forms prescribed by the Department and 27 shall furnish such information as the Department may 28 reasonably require. 29 The Department may require returns to be filed on a 30 quarterly basis. If so required, a return for each calendar 31 quarter shall be filed on or before the twentieth day of the 32 calendar month following the end of such calendar quarter. 33 The taxpayer shall also file a return with the Department for 34 each of the first two months of each calendar quarter, on or -11- LRB9202158SMdv 1 before the twentieth day of the following calendar month, 2 stating: 3 1. The name of the seller; 4 2. The address of the principal place of business 5 from which he engages in the business of selling tangible 6 personal property at retail in this State; 7 3. The total amount of taxable receipts received by 8 him during the preceding calendar month from sales of 9 tangible personal property by him during such preceding 10 calendar month, including receipts from charge and time 11 sales, but less all deductions allowed by law; 12 4. The amount of credit provided in Section 2d of 13 this Act; 14 5. The amount of tax due; 15 5-5. The signature of the taxpayer; and 16 6. Such other reasonable information as the 17 Department may require. 18 If a taxpayer fails to sign a return within 30 days after 19 the proper notice and demand for signature by the Department, 20 the return shall be considered valid and any amount shown to 21 be due on the return shall be deemed assessed. 22 Beginning October 1, 1993, a taxpayer who has an average 23 monthly tax liability of $150,000 or more shall make all 24 payments required by rules of the Department by electronic 25 funds transfer. Beginning October 1, 1994, a taxpayer who has 26 an average monthly tax liability of $100,000 or more shall 27 make all payments required by rules of the Department by 28 electronic funds transfer. Beginning October 1, 1995, a 29 taxpayer who has an average monthly tax liability of $50,000 30 or more shall make all payments required by rules of the 31 Department by electronic funds transfer. Beginning October 1, 32 2000, a taxpayer who has an annual tax liability of $200,000 33 or more shall make all payments required by rules of the 34 Department by electronic funds transfer. The term "annual -12- LRB9202158SMdv 1 tax liability" shall be the sum of the taxpayer's liabilities 2 under this Act, and under all other State and local 3 occupation and use tax laws administered by the Department, 4 for the immediately preceding calendar year. The term 5 "average monthly tax liability" means the sum of the 6 taxpayer's liabilities under this Act, and under all other 7 State and local occupation and use tax laws administered by 8 the Department, for the immediately preceding calendar year 9 divided by 12. 10 Before August 1 of each year beginning in 1993, the 11 Department shall notify all taxpayers required to make 12 payments by electronic funds transfer. All taxpayers required 13 to make payments by electronic funds transfer shall make 14 those payments for a minimum of one year beginning on October 15 1. 16 Any taxpayer not required to make payments by electronic 17 funds transfer may make payments by electronic funds transfer 18 with the permission of the Department. 19 All taxpayers required to make payment by electronic 20 funds transfer and any taxpayers authorized to voluntarily 21 make payments by electronic funds transfer shall make those 22 payments in the manner authorized by the Department. 23 The Department shall adopt such rules as are necessary to 24 effectuate a program of electronic funds transfer and the 25 requirements of this Section. 26 Before October 1, 2000, if the taxpayer's average monthly 27 tax liability to the Department under this Act, the 28 Retailers' Occupation Tax Act, the Service Occupation Tax 29 Act, the Service Use Tax Act was $10,000 or more during the 30 preceding 4 complete calendar quarters, he shall file a 31 return with the Department each month by the 20th day of the 32 month next following the month during which such tax 33 liability is incurred and shall make payments to the 34 Department on or before the 7th, 15th, 22nd and last day of -13- LRB9202158SMdv 1 the month during which such liability is incurred. On and 2 after October 1, 2000, if the taxpayer's average monthly tax 3 liability to the Department under this Act, the Retailers' 4 Occupation Tax Act, the Service Occupation Tax Act, and the 5 Service Use Tax Act was $20,000 or more during the preceding 6 4 complete calendar quarters, he shall file a return with the 7 Department each month by the 20th day of the month next 8 following the month during which such tax liability is 9 incurred and shall make payment to the Department on or 10 before the 7th, 15th, 22nd and last day of the month during 11 which such liability is incurred. If the month during which 12 such tax liability is incurred began prior to January 1, 13 1985, each payment shall be in an amount equal to 1/4 of the 14 taxpayer's actual liability for the month or an amount set by 15 the Department not to exceed 1/4 of the average monthly 16 liability of the taxpayer to the Department for the preceding 17 4 complete calendar quarters (excluding the month of highest 18 liability and the month of lowest liability in such 4 quarter 19 period). If the month during which such tax liability is 20 incurred begins on or after January 1, 1985, and prior to 21 January 1, 1987, each payment shall be in an amount equal to 22 22.5% of the taxpayer's actual liability for the month or 23 27.5% of the taxpayer's liability for the same calendar month 24 of the preceding year. If the month during which such tax 25 liability is incurred begins on or after January 1, 1987, and 26 prior to January 1, 1988, 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. If the month during 30 which such tax liability is incurred begins on or after 31 January 1, 1988, and prior to January 1, 1989, or begins on 32 or after January 1, 1996, each payment shall be in an amount 33 equal to 22.5% of the taxpayer's actual liability for the 34 month or 25% of the taxpayer's liability for the same -14- LRB9202158SMdv 1 calendar month of the preceding year. If the month during 2 which such tax liability is incurred begins on or after 3 January 1, 1989, and prior to January 1, 1996, each payment 4 shall be in an amount equal to 22.5% of the taxpayer's actual 5 liability for the month or 25% of the taxpayer's liability 6 for the same calendar month of the preceding year or 100% of 7 the taxpayer's actual liability for the quarter monthly 8 reporting period. The amount of such quarter monthly 9 payments shall be credited against the final tax liability of 10 the taxpayer's return for that month. Before October 1, 11 2000, once applicable, the requirement of the making of 12 quarter monthly payments to the Department shall continue 13 until such taxpayer's average monthly liability to the 14 Department during the preceding 4 complete calendar quarters 15 (excluding the month of highest liability and the month of 16 lowest liability) is less than $9,000, or until such 17 taxpayer's average monthly liability to the Department as 18 computed for each calendar quarter of the 4 preceding 19 complete calendar quarter period is less than $10,000. 20 However, if a taxpayer can show the Department that a 21 substantial change in the taxpayer's business has occurred 22 which causes the taxpayer to anticipate that his average 23 monthly tax liability for the reasonably foreseeable future 24 will fall below the $10,000 threshold stated above, then such 25 taxpayer may petition the Department for change in such 26 taxpayer's reporting status. On and after October 1, 2000, 27 once applicable, the requirement of the making of quarter 28 monthly payments to the Department shall continue until such 29 taxpayer's average monthly liability to the Department during 30 the preceding 4 complete calendar quarters (excluding the 31 month of highest liability and the month of lowest liability) 32 is less than $19,000 or until such taxpayer's average monthly 33 liability to the Department as computed for each calendar 34 quarter of the 4 preceding complete calendar quarter period -15- LRB9202158SMdv 1 is less than $20,000. However, if a taxpayer can show the 2 Department that a substantial change in the taxpayer's 3 business has occurred which causes the taxpayer to anticipate 4 that his average monthly tax liability for the reasonably 5 foreseeable future will fall below the $20,000 threshold 6 stated above, then such taxpayer may petition the Department 7 for a change in such taxpayer's reporting status. The 8 Department shall change such taxpayer's reporting status 9 unless it finds that such change is seasonal in nature and 10 not likely to be long term. If any such quarter monthly 11 payment is not paid at the time or in the amount required by 12 this Section, then the taxpayer shall be liable for penalties 13 and interest on the difference between the minimum amount due 14 and the amount of such quarter monthly payment actually and 15 timely paid, except insofar as the taxpayer has previously 16 made payments for that month to the Department in excess of 17 the minimum payments previously due as provided in this 18 Section. The Department shall make reasonable rules and 19 regulations to govern the quarter monthly payment amount and 20 quarter monthly payment dates for taxpayers who file on other 21 than a calendar monthly basis. 22 If any such payment provided for in this Section exceeds 23 the taxpayer's liabilities under this Act, the Retailers' 24 Occupation Tax Act, the Service Occupation Tax Act and the 25 Service Use Tax Act, as shown by an original monthly return, 26 the Department shall issue to the taxpayer a credit 27 memorandum no later than 30 days after the date of payment, 28 which memorandum may be submitted by the taxpayer to the 29 Department in payment of tax liability subsequently to be 30 remitted by the taxpayer to the Department or be assigned by 31 the taxpayer to a similar taxpayer under this Act, the 32 Retailers' Occupation Tax Act, the Service Occupation Tax Act 33 or the Service Use Tax Act, in accordance with reasonable 34 rules and regulations to be prescribed by the Department, -16- LRB9202158SMdv 1 except that if such excess payment is shown on an original 2 monthly return and is made after December 31, 1986, no credit 3 memorandum shall be issued, unless requested by the taxpayer. 4 If no such request is made, the taxpayer may credit such 5 excess payment against tax liability subsequently to be 6 remitted by the taxpayer to the Department under this Act, 7 the Retailers' Occupation Tax Act, the Service Occupation Tax 8 Act or the Service Use Tax Act, in accordance with reasonable 9 rules and regulations prescribed by the Department. If the 10 Department subsequently determines that all or any part of 11 the credit taken was not actually due to the taxpayer, the 12 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced 13 by 2.1% or 1.75% of the difference between the credit taken 14 and that actually due, and the taxpayer shall be liable for 15 penalties and interest on such difference. 16 If the retailer is otherwise required to file a monthly 17 return and if the retailer's average monthly tax liability to 18 the Department does not exceed $200, the Department may 19 authorize his returns to be filed on a quarter annual basis, 20 with the return for January, February, and March of a given 21 year being due by April 20 of such year; with the return for 22 April, May and June of a given year being due by July 20 of 23 such year; with the return for July, August and September of 24 a given year being due by October 20 of such year, and with 25 the return for October, November and December of a given year 26 being due by January 20 of the following year. 27 If the retailer is otherwise required to file a monthly 28 or quarterly return and if the retailer's average monthly tax 29 liability to the Department does not exceed $50, the 30 Department may authorize his returns to be filed on an annual 31 basis, with the return for a given year being due by January 32 20 of the following year. 33 Such quarter annual and annual returns, as to form and 34 substance, shall be subject to the same requirements as -17- LRB9202158SMdv 1 monthly returns. 2 Notwithstanding any other provision in this Act 3 concerning the time within which a retailer may file his 4 return, in the case of any retailer who ceases to engage in a 5 kind of business which makes him responsible for filing 6 returns under this Act, such retailer shall file a final 7 return under this Act with the Department not more than one 8 month after discontinuing such business. 9 In addition, with respect to motor vehicles, watercraft, 10 aircraft, and trailers that are required to be registered 11 with an agency of this State, every retailer selling this 12 kind of tangible personal property shall file, with the 13 Department, upon a form to be prescribed and supplied by the 14 Department, a separate return for each such item of tangible 15 personal property which the retailer sells, except that if, 16 in the same transaction, (i) a retailer of aircraft, 17 watercraft, motor vehicles or trailers transfers more than 18 one aircraft, watercraft, motor vehicle or trailer to another 19 aircraft, watercraft, motor vehicle or trailer retailer for 20 the purpose of resale or (ii) a retailer of aircraft, 21 watercraft, motor vehicles, or trailers transfers more than 22 one aircraft, watercraft, motor vehicle, or trailer to a 23 purchaser for use as a qualifying rolling stock as provided 24 in Section 3-55 of this Act, then that seller may report the 25 transfer of all the aircraft, watercraft, motor vehicles or 26 trailers involved in that transaction to the Department on 27 the same uniform invoice-transaction reporting return form. 28 For purposes of this Section, "watercraft" means a Class 2, 29 Class 3, or Class 4 watercraft as defined in Section 3-2 of 30 the Boat Registration and Safety Act, a personal watercraft, 31 or any boat equipped with an inboard motor. 32 The transaction reporting return in the case of motor 33 vehicles or trailers that are required to be registered with 34 an agency of this State, shall be the same document as the -18- LRB9202158SMdv 1 Uniform Invoice referred to in Section 5-402 of the Illinois 2 Vehicle Code and must show the name and address of the 3 seller; the name and address of the purchaser; the amount of 4 the selling price including the amount allowed by the 5 retailer for traded-in property, if any; the amount allowed 6 by the retailer for the traded-in tangible personal property, 7 if any, to the extent to which Section 2 of this Act allows 8 an exemption for the value of traded-in property; the balance 9 payable after deducting such trade-in allowance from the 10 total selling price; the amount of tax due from the retailer 11 with respect to such transaction; the amount of tax collected 12 from the purchaser by the retailer on such transaction (or 13 satisfactory evidence that such tax is not due in that 14 particular instance, if that is claimed to be the fact); the 15 place and date of the sale; a sufficient identification of 16 the property sold; such other information as is required in 17 Section 5-402 of the Illinois Vehicle Code, and such other 18 information as the Department may reasonably require. 19 The transaction reporting return in the case of 20 watercraft and aircraft must show the name and address of the 21 seller; the name and address of the purchaser; the amount of 22 the selling price including the amount allowed by the 23 retailer for traded-in property, if any; the amount allowed 24 by the retailer for the traded-in tangible personal property, 25 if any, to the extent to which Section 2 of this Act allows 26 an exemption for the value of traded-in property; the balance 27 payable after deducting such trade-in allowance from the 28 total selling price; the amount of tax due from the retailer 29 with respect to such transaction; the amount of tax collected 30 from the purchaser by the retailer on such transaction (or 31 satisfactory evidence that such tax is not due in that 32 particular instance, if that is claimed to be the fact); the 33 place and date of the sale, a sufficient identification of 34 the property sold, and such other information as the -19- LRB9202158SMdv 1 Department may reasonably require. 2 Such transaction reporting return shall be filed not 3 later than 20 days after the date of delivery of the item 4 that is being sold, but may be filed by the retailer at any 5 time sooner than that if he chooses to do so. The 6 transaction reporting return and tax remittance or proof of 7 exemption from the tax that is imposed by this Act may be 8 transmitted to the Department by way of the State agency with 9 which, or State officer with whom, the tangible personal 10 property must be titled or registered (if titling or 11 registration is required) if the Department and such agency 12 or State officer determine that this procedure will expedite 13 the processing of applications for title or registration. 14 With each such transaction reporting return, the retailer 15 shall remit the proper amount of tax due (or shall submit 16 satisfactory evidence that the sale is not taxable if that is 17 the case), to the Department or its agents, whereupon the 18 Department shall issue, in the purchaser's name, a tax 19 receipt (or a certificate of exemption if the Department is 20 satisfied that the particular sale is tax exempt) which such 21 purchaser may submit to the agency with which, or State 22 officer with whom, he must title or register the tangible 23 personal property that is involved (if titling or 24 registration is required) in support of such purchaser's 25 application for an Illinois certificate or other evidence of 26 title or registration to such tangible personal property. 27 No retailer's failure or refusal to remit tax under this 28 Act precludes a user, who has paid the proper tax to the 29 retailer, from obtaining his certificate of title or other 30 evidence of title or registration (if titling or registration 31 is required) upon satisfying the Department that such user 32 has paid the proper tax (if tax is due) to the retailer. The 33 Department shall adopt appropriate rules to carry out the 34 mandate of this paragraph. -20- LRB9202158SMdv 1 If the user who would otherwise pay tax to the retailer 2 wants the transaction reporting return filed and the payment 3 of tax or proof of exemption made to the Department before 4 the retailer is willing to take these actions and such user 5 has not paid the tax to the retailer, such user may certify 6 to the fact of such delay by the retailer, and may (upon the 7 Department being satisfied of the truth of such 8 certification) transmit the information required by the 9 transaction reporting return and the remittance for tax or 10 proof of exemption directly to the Department and obtain his 11 tax receipt or exemption determination, in which event the 12 transaction reporting return and tax remittance (if a tax 13 payment was required) shall be credited by the Department to 14 the proper retailer's account with the Department, but 15 without the 2.1% or 1.75% discount provided for in this 16 Section being allowed. When the user pays the tax directly 17 to the Department, he shall pay the tax in the same amount 18 and in the same form in which it would be remitted if the tax 19 had been remitted to the Department by the retailer. 20 Where a retailer collects the tax with respect to the 21 selling price of tangible personal property which he sells 22 and the purchaser thereafter returns such tangible personal 23 property and the retailer refunds the selling price thereof 24 to the purchaser, such retailer shall also refund, to the 25 purchaser, the tax so collected from the purchaser. When 26 filing his return for the period in which he refunds such tax 27 to the purchaser, the retailer may deduct the amount of the 28 tax so refunded by him to the purchaser from any other use 29 tax which such retailer may be required to pay or remit to 30 the Department, as shown by such return, if the amount of the 31 tax to be deducted was previously remitted to the Department 32 by such retailer. If the retailer has not previously 33 remitted the amount of such tax to the Department, he is 34 entitled to no deduction under this Act upon refunding such -21- LRB9202158SMdv 1 tax to the purchaser. 2 Any retailer filing a return under this Section shall 3 also include (for the purpose of paying tax thereon) the 4 total tax covered by such return upon the selling price of 5 tangible personal property purchased by him at retail from a 6 retailer, but as to which the tax imposed by this Act was not 7 collected from the retailer filing such return, and such 8 retailer shall remit the amount of such tax to the Department 9 when filing such return. 10 If experience indicates such action to be practicable, 11 the Department may prescribe and furnish a combination or 12 joint return which will enable retailers, who are required to 13 file returns hereunder and also under the Retailers' 14 Occupation Tax Act, to furnish all the return information 15 required by both Acts on the one form. 16 Where the retailer has more than one business registered 17 with the Department under separate registration under this 18 Act, such retailer may not file each return that is due as a 19 single return covering all such registered businesses, but 20 shall file separate returns for each such registered 21 business. 22 Beginning January 1, 1990, each month the Department 23 shall pay into the State and Local Sales Tax Reform Fund, a 24 special fund in the State Treasury which is hereby created, 25 the net revenue realized for the preceding month from the 1% 26 tax on sales of food for human consumption which is to be 27 consumed off the premises where it is sold (other than 28 alcoholic beverages, soft drinks and food which has been 29 prepared for immediate consumption) and prescription and 30 nonprescription medicines, drugs, medical appliances and 31 insulin, urine testing materials, syringes and needles used 32 by diabetics. 33 Beginning January 1, 1990, each month the Department 34 shall pay into the County and Mass Transit District Fund 4% -22- LRB9202158SMdv 1 of the net revenue realized for the preceding month from the 2 6.25% general rate on the selling price of tangible personal 3 property which is purchased outside Illinois at retail from a 4 retailer and which is titled or registered by an agency of 5 this State's government. 6 Beginning January 1, 1990, each month the Department 7 shall pay into the State and Local Sales Tax Reform Fund, a 8 special fund in the State Treasury, 20% of the net revenue 9 realized for the preceding month from the 6.25% general rate 10 on the selling price of tangible personal property, other 11 than tangible personal property which is purchased outside 12 Illinois at retail from a retailer and which is titled or 13 registered by an agency of this State's government. 14 Beginning August 1, 2000, each month the Department shall 15 pay into the State and Local Sales Tax Reform Fund 100% of 16 the net revenue realized for the preceding month from the 17 1.25% rate on the selling price of motor fuel and gasohol. 18 Each September the Department shall pay into the State 19 and Local Sales Tax Reform Fund 100% of the net revenue 20 realized for the preceding month from the 1.25% rate on 21 "school supplies" as defined in Section 2-10 of the 22 Retailers' Occupation Tax Act. 23 Beginning January 1, 1990, each month the Department 24 shall pay into the Local Government Tax Fund 16% of the net 25 revenue realized for the preceding month from the 6.25% 26 general rate on the selling price of tangible personal 27 property 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 Of the remainder of the moneys received by the Department 31 pursuant to this Act, (a) 1.75% thereof shall be paid into 32 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 33 and on and after July 1, 1989, 3.8% thereof shall be paid 34 into the Build Illinois Fund; provided, however, that if in -23- LRB9202158SMdv 1 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 2 as the case may be, of the moneys received by the Department 3 and required to be paid into the Build Illinois Fund pursuant 4 to Section 3 of the Retailers' Occupation Tax Act, Section 9 5 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 6 Section 9 of the Service Occupation Tax Act, such Acts being 7 hereinafter called the "Tax Acts" and such aggregate of 2.2% 8 or 3.8%, as the case may be, of moneys being hereinafter 9 called the "Tax Act Amount", and (2) the amount transferred 10 to the Build Illinois Fund from the State and Local Sales Tax 11 Reform Fund shall be less than the Annual Specified Amount 12 (as defined in Section 3 of the Retailers' Occupation Tax 13 Act), an amount equal to the difference shall be immediately 14 paid into the Build Illinois Fund from other moneys received 15 by the Department pursuant to the Tax Acts; and further 16 provided, that if on the last business day of any month the 17 sum of (1) the Tax Act Amount required to be deposited into 18 the Build Illinois Bond Account in the Build Illinois Fund 19 during such month and (2) the amount transferred during such 20 month to the Build Illinois Fund from the State and Local 21 Sales Tax Reform Fund shall have been less than 1/12 of the 22 Annual Specified Amount, an amount equal to the difference 23 shall be immediately paid into the Build Illinois Fund from 24 other moneys received by the Department pursuant to the Tax 25 Acts; and, further provided, that in no event shall the 26 payments required under the preceding proviso result in 27 aggregate payments into the Build Illinois Fund pursuant to 28 this clause (b) for any fiscal year in excess of the greater 29 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 30 for such fiscal year; and, further provided, that the amounts 31 payable into the Build Illinois Fund under this clause (b) 32 shall be payable only until such time as the aggregate amount 33 on deposit under each trust indenture securing Bonds issued 34 and outstanding pursuant to the Build Illinois Bond Act is -24- LRB9202158SMdv 1 sufficient, taking into account any future investment income, 2 to fully provide, in accordance with such indenture, for the 3 defeasance of or the payment of the principal of, premium, if 4 any, and interest on the Bonds secured by such indenture and 5 on any Bonds expected to be issued thereafter and all fees 6 and costs payable with respect thereto, all as certified by 7 the 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 the 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 preceding sentence and shall reduce the amount 22 otherwise payable for such fiscal year pursuant to clause (b) 23 of the preceding sentence. The moneys received by the 24 Department pursuant to this Act and required to be deposited 25 into the Build Illinois Fund are subject to the pledge, claim 26 and 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 the sums designated -25- LRB9202158SMdv 1 as "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 -26- LRB9202158SMdv 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 .4% of the net revenue 20 realized for the preceding month from the 5% general rate, or 21 .4% of 80% of the net revenue realized for the preceding 22 month from the 6.25% general rate, as the case may be, on the 23 selling price of tangible personal property which amount 24 shall, subject to appropriation, be distributed as provided 25 in Section 2 of the State Revenue Sharing Act. No payments or 26 distributions pursuant to this paragraph shall be made if the 27 tax imposed by this Act on photoprocessing products is 28 declared unconstitutional, or if the proceeds from such tax 29 are unavailable for distribution because of litigation. 30 Subject to payment of amounts into the Build Illinois 31 Fund, the McCormick Place Expansion Project Fund, and the 32 Local Government Distributive Fund pursuant to the preceding 33 paragraphs or in any amendments thereto hereafter enacted, 34 beginning July 1, 1993, the Department shall each month pay -27- LRB9202158SMdv 1 into the Illinois Tax Increment Fund 0.27% of 80% of the net 2 revenue realized for the preceding month from the 6.25% 3 general rate on the selling price of tangible personal 4 property. 5 Of the remainder of the moneys received by the Department 6 pursuant to this Act, 75% thereof shall be paid into the 7 State Treasury and 25% shall be reserved in a special account 8 and used only for the transfer to the Common School Fund as 9 part of the monthly transfer from the General Revenue Fund in 10 accordance with Section 8a of the State Finance Act. 11 As soon as possible after the first day of each month, 12 upon certification of the Department of Revenue, the 13 Comptroller shall order transferred and the Treasurer shall 14 transfer from the General Revenue Fund to the Motor Fuel Tax 15 Fund an amount equal to 1.7% of 80% of the net revenue 16 realized under this Act for the second preceding month. 17 Beginning April 1, 2000, this transfer is no longer required 18 and shall not be made. 19 Net revenue realized for a month shall be the revenue 20 collected by the State pursuant to this Act, less the amount 21 paid out during that month as refunds to taxpayers for 22 overpayment of liability. 23 For greater simplicity of administration, manufacturers, 24 importers and wholesalers whose products are sold at retail 25 in Illinois by numerous retailers, and who wish to do so, may 26 assume the responsibility for accounting and paying to the 27 Department all tax accruing under this Act with respect to 28 such sales, if the retailers who are affected do not make 29 written objection to the Department to this arrangement. 30 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98; 31 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff. 32 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00; 91-901, 33 eff. 1-1-01; revised 8-30-00.) -28- LRB9202158SMdv 1 Section 15. The Service Use Tax Act is amended by 2 changing Sections 3-10 and 9 as follows: 3 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10) 4 Sec. 3-10. Rate of tax. Unless otherwise provided in 5 this Section, the tax imposed by this Act is at the rate of 6 6.25% of the selling price of tangible personal property 7 transferred as an incident to the sale of service, but, for 8 the purpose of computing this tax, in no event shall the 9 selling price be less than the cost price of the property to 10 the serviceman. 11 Beginning on July 1, 2000 and through December 31, 2000, 12 with respect to motor fuel, as defined in Section 1.1 of the 13 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 14 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 15 With respect to gasohol, as defined in the Use Tax Act, 16 the tax imposed by this Act applies to 70% of the selling 17 price of property transferred as an incident to the sale of 18 service on or after January 1, 1990, and before July 1, 2003, 19 and to 100% of the selling price thereafter. 20 Beginning on August 1 and through August 8 of 2001 and 21 each year thereafter, with respect to "school supplies" as 22 defined in Section 2-10 of the Retailers' Occupation Tax Act, 23 the tax is imposed at the rate of 1.25%. The changes made by 24 this amendatory Act of the 92nd General Assembly are exempt 25 from the provisions of Section 3-75. 26 At the election of any registered serviceman made for 27 each fiscal year, sales of service in which the aggregate 28 annual cost price of tangible personal property transferred 29 as an incident to the sales of service is less than 35%, or 30 75% in the case of servicemen transferring prescription drugs 31 or servicemen engaged in graphic arts production, of the 32 aggregate annual total gross receipts from all sales of 33 service, the tax imposed by this Act shall be based on the -29- LRB9202158SMdv 1 serviceman's cost price of the tangible personal property 2 transferred as an incident to the sale of those services. 3 The tax shall be imposed at the rate of 1% on food 4 prepared for immediate consumption and transferred incident 5 to a sale of service subject to this Act or the Service 6 Occupation Tax Act by an entity licensed under the Hospital 7 Licensing Act, the Nursing Home Care Act, or the Child Care 8 Act of 1969. The tax shall also be imposed at the rate of 1% 9 on food for human consumption that is to be consumed off the 10 premises where it is sold (other than alcoholic beverages, 11 soft drinks, and food that has been prepared for immediate 12 consumption and is not otherwise included in this paragraph) 13 and prescription and nonprescription medicines, drugs, 14 medical appliances, modifications to a motor vehicle for the 15 purpose of rendering it usable by a disabled person, and 16 insulin, urine testing materials, syringes, and needles used 17 by diabetics, for human use. For the purposes of this 18 Section, the term "soft drinks" means any complete, finished, 19 ready-to-use, non-alcoholic drink, whether carbonated or not, 20 including but not limited to soda water, cola, fruit juice, 21 vegetable juice, carbonated water, and all other preparations 22 commonly known as soft drinks of whatever kind or description 23 that are contained in any closed or sealed bottle, can, 24 carton, or container, regardless of size. "Soft drinks" does 25 not include coffee, tea, non-carbonated water, infant 26 formula, milk or milk products as defined in the Grade A 27 Pasteurized Milk and Milk Products Act, or drinks containing 28 50% or more natural fruit or vegetable juice. 29 Notwithstanding any other provisions of this Act, "food 30 for human consumption that is to be consumed off the premises 31 where it is sold" includes all food sold through a vending 32 machine, except soft drinks and food products that are 33 dispensed hot from a vending machine, regardless of the 34 location of the vending machine. -30- LRB9202158SMdv 1 If the property that is acquired from a serviceman is 2 acquired outside Illinois and used outside Illinois before 3 being brought to Illinois for use here and is taxable under 4 this Act, the "selling price" on which the tax is computed 5 shall be reduced by an amount that represents a reasonable 6 allowance for depreciation for the period of prior 7 out-of-state use. 8 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 9 91-51, eff. 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 10 7-1-00.) 11 (35 ILCS 110/9) (from Ch. 120, par. 439.39) 12 Sec. 9. Each serviceman required or authorized to 13 collect the tax herein imposed shall pay to the Department 14 the amount of such tax (except as otherwise provided) at the 15 time when he is required to file his return for the period 16 during which such tax was collected, less a discount of 2.1% 17 prior to January 1, 1990 and 1.75% on and after January 1, 18 1990, or $5 per calendar year, whichever is greater, which is 19 allowed to reimburse the serviceman for expenses incurred in 20 collecting the tax, keeping records, preparing and filing 21 returns, remitting the tax and supplying data to the 22 Department on request. A serviceman need not remit that part 23 of any tax collected by him to the extent that he is required 24 to pay and does pay the tax imposed by the Service Occupation 25 Tax Act with respect to his sale of service involving the 26 incidental transfer by him of the same property. 27 Except as provided hereinafter in this Section, on or 28 before the twentieth day of each calendar month, such 29 serviceman shall file a return for the preceding calendar 30 month in accordance with reasonable Rules and Regulations to 31 be promulgated by the Department. Such return shall be filed 32 on a form prescribed by the Department and shall contain such 33 information as the Department may reasonably require. -31- LRB9202158SMdv 1 The Department may require returns to be filed on a 2 quarterly basis. If so required, a return for each calendar 3 quarter shall be filed on or before the twentieth day of the 4 calendar month following the end of such calendar quarter. 5 The taxpayer shall also file a return with the Department for 6 each of the first two months of each calendar quarter, on or 7 before the twentieth day of the following calendar month, 8 stating: 9 1. The name of the seller; 10 2. The address of the principal place of business 11 from which he engages in business as a serviceman in this 12 State; 13 3. The total amount of taxable receipts received by 14 him during the preceding calendar month, including 15 receipts from charge and time sales, but less all 16 deductions allowed by law; 17 4. The amount of credit provided in Section 2d of 18 this Act; 19 5. The amount of tax due; 20 5-5. The signature of the taxpayer; and 21 6. Such other reasonable information as the 22 Department may require. 23 If a taxpayer fails to sign a return within 30 days after 24 the proper notice and demand for signature by the Department, 25 the return shall be considered valid and any amount shown to 26 be due on the return shall be deemed assessed. 27 Beginning October 1, 1993, a taxpayer who has an average 28 monthly tax liability of $150,000 or more shall make all 29 payments required by rules of the Department by electronic 30 funds transfer. Beginning October 1, 1994, a taxpayer who 31 has an average monthly tax liability of $100,000 or more 32 shall make all payments required by rules of the Department 33 by electronic funds transfer. Beginning October 1, 1995, a 34 taxpayer who has an average monthly tax liability of $50,000 -32- LRB9202158SMdv 1 or more shall make all payments required by rules of the 2 Department by electronic funds transfer. Beginning October 1, 3 2000, a taxpayer who has an annual tax liability of $200,000 4 or more shall make all payments required by rules of the 5 Department by electronic funds transfer. The term "annual 6 tax liability" shall be the sum of the taxpayer's liabilities 7 under this Act, and under all other State and local 8 occupation and use tax laws administered by the Department, 9 for the immediately preceding calendar year. The term 10 "average monthly tax liability" means the sum of the 11 taxpayer's liabilities under this Act, and under all other 12 State and local occupation and use tax laws administered by 13 the Department, for the immediately preceding calendar year 14 divided by 12. 15 Before August 1 of each year beginning in 1993, the 16 Department shall notify all taxpayers required to make 17 payments by electronic funds transfer. All taxpayers required 18 to make payments by electronic funds transfer shall make 19 those payments for a minimum of one year beginning on October 20 1. 21 Any taxpayer not required to make payments by electronic 22 funds transfer may make payments by electronic funds transfer 23 with the permission of the Department. 24 All taxpayers required to make payment by electronic 25 funds transfer and any taxpayers authorized to voluntarily 26 make payments by electronic funds transfer shall make those 27 payments in the manner authorized by the Department. 28 The Department shall adopt such rules as are necessary to 29 effectuate a program of electronic funds transfer and the 30 requirements of this Section. 31 If the serviceman is otherwise required to file a monthly 32 return and if the serviceman's average monthly tax liability 33 to the Department does not exceed $200, the Department may 34 authorize his returns to be filed on a quarter annual basis, -33- LRB9202158SMdv 1 with the return for January, February and March of a given 2 year being due by April 20 of such year; with the return for 3 April, May and June of a given year being due by July 20 of 4 such year; with the return for July, August and September of 5 a given year being due by October 20 of such year, and with 6 the return for October, November and December of a given year 7 being due by January 20 of the following year. 8 If the serviceman is otherwise required to file a monthly 9 or quarterly return and if the serviceman's average monthly 10 tax liability to the Department does not exceed $50, the 11 Department may authorize his returns to be filed on an annual 12 basis, with the return for a given year being due by January 13 20 of the following year. 14 Such quarter annual and annual returns, as to form and 15 substance, shall be subject to the same requirements as 16 monthly returns. 17 Notwithstanding any other provision in this Act 18 concerning the time within which a serviceman may file his 19 return, in the case of any serviceman who ceases to engage in 20 a kind of business which makes him responsible for filing 21 returns under this Act, such serviceman shall file a final 22 return under this Act with the Department not more than 1 23 month after discontinuing such business. 24 Where a serviceman collects the tax with respect to the 25 selling price of property which he sells and the purchaser 26 thereafter returns such property and the serviceman refunds 27 the selling price thereof to the purchaser, such serviceman 28 shall also refund, to the purchaser, the tax so collected 29 from the purchaser. When filing his return for the period in 30 which he refunds such tax to the purchaser, the serviceman 31 may deduct the amount of the tax so refunded by him to the 32 purchaser from any other Service Use Tax, Service Occupation 33 Tax, retailers' occupation tax or use tax which such 34 serviceman may be required to pay or remit to the Department, -34- LRB9202158SMdv 1 as shown by such return, provided that the amount of the tax 2 to be deducted shall previously have been remitted to the 3 Department by such serviceman. If the serviceman shall not 4 previously have remitted the amount of such tax to the 5 Department, he shall be entitled to no deduction hereunder 6 upon refunding such tax to the purchaser. 7 Any serviceman filing a return hereunder shall also 8 include the total tax upon the selling price of tangible 9 personal property purchased for use by him as an incident to 10 a sale of service, and such serviceman shall remit the amount 11 of such tax to the Department when filing such return. 12 If experience indicates such action to be practicable, 13 the Department may prescribe and furnish a combination or 14 joint return which will enable servicemen, who are required 15 to file returns hereunder and also under the Service 16 Occupation Tax Act, to furnish all the return information 17 required by both Acts on the one form. 18 Where the serviceman has more than one business 19 registered with the Department under separate registration 20 hereunder, such serviceman shall not file each return that is 21 due as a single return covering all such registered 22 businesses, but shall file separate returns for each such 23 registered business. 24 Beginning January 1, 1990, each month the Department 25 shall pay into the State and Local Tax Reform Fund, a special 26 fund in the State Treasury, the net revenue realized for the 27 preceding month from the 1% tax on sales of food for human 28 consumption which is to be consumed off the premises where it 29 is sold (other than alcoholic beverages, soft drinks and food 30 which has been prepared for immediate consumption) and 31 prescription and nonprescription medicines, drugs, medical 32 appliances and insulin, urine testing materials, syringes and 33 needles used by diabetics. 34 Beginning January 1, 1990, each month the Department -35- LRB9202158SMdv 1 shall pay into the State and Local Sales Tax Reform Fund 20% 2 of the net revenue realized for the preceding month from the 3 6.25% general rate on transfers of tangible personal 4 property, other than tangible personal property which is 5 purchased outside Illinois at retail from a retailer and 6 which is titled or registered by an agency of this State's 7 government. 8 Beginning August 1, 2000, each month the Department shall 9 pay into the State and Local Sales Tax Reform Fund 100% of 10 the net revenue realized for the preceding month from the 11 1.25% rate on the selling price of motor fuel and gasohol. 12 Each September the Department shall pay into the State 13 and Local Sales Tax Reform Fund 100% of the net revenue 14 realized for the preceding month from the 1.25% rate on 15 "school supplies" as defined in Section 2-10 of the 16 Retailers' Occupation Tax Act. 17 Of the remainder of the moneys received by the Department 18 pursuant to this Act, (a) 1.75% thereof shall be paid into 19 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 20 and on and after July 1, 1989, 3.8% thereof shall be paid 21 into the Build Illinois Fund; provided, however, that if in 22 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 23 as the case may be, of the moneys received by the Department 24 and required to be paid into the Build Illinois Fund pursuant 25 to Section 3 of the Retailers' Occupation Tax Act, Section 9 26 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 27 Section 9 of the Service Occupation Tax Act, such Acts being 28 hereinafter called the "Tax Acts" and such aggregate of 2.2% 29 or 3.8%, as the case may be, of moneys being hereinafter 30 called the "Tax Act Amount", and (2) the amount transferred 31 to the Build Illinois Fund from the State and Local Sales Tax 32 Reform Fund shall be less than the Annual Specified Amount 33 (as defined in Section 3 of the Retailers' Occupation Tax 34 Act), an amount equal to the difference shall be immediately -36- LRB9202158SMdv 1 paid into the Build Illinois Fund from other moneys received 2 by the Department pursuant to the Tax Acts; and further 3 provided, that if on the last business day of any month the 4 sum of (1) the Tax Act Amount required to be deposited into 5 the Build Illinois Bond Account in the Build Illinois Fund 6 during such month and (2) the amount transferred during such 7 month to the Build Illinois Fund from the State and Local 8 Sales Tax Reform Fund shall have been less than 1/12 of the 9 Annual Specified Amount, an amount equal to the difference 10 shall be immediately paid into the Build Illinois Fund from 11 other moneys received by the Department pursuant to the Tax 12 Acts; and, further provided, that in no event shall the 13 payments required under the preceding proviso result in 14 aggregate payments into the Build Illinois Fund pursuant to 15 this clause (b) for any fiscal year in excess of the greater 16 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 17 for such fiscal year; and, further provided, that the amounts 18 payable into the Build Illinois Fund under this clause (b) 19 shall be payable only until such time as the aggregate amount 20 on deposit under each trust indenture securing Bonds issued 21 and outstanding pursuant to the Build Illinois Bond Act is 22 sufficient, taking into account any future investment income, 23 to fully provide, in accordance with such indenture, for the 24 defeasance of or the payment of the principal of, premium, if 25 any, and interest on the Bonds secured by such indenture and 26 on any Bonds expected to be issued thereafter and all fees 27 and costs payable with respect thereto, all as certified by 28 the Director of the Bureau of the Budget. If on the last 29 business day of any month in which Bonds are outstanding 30 pursuant to the Build Illinois Bond Act, the aggregate of the 31 moneys deposited in the Build Illinois Bond Account in the 32 Build Illinois Fund in such month shall be less than the 33 amount required to be transferred in such month from the 34 Build Illinois Bond Account to the Build Illinois Bond -37- LRB9202158SMdv 1 Retirement and Interest Fund pursuant to Section 13 of the 2 Build Illinois Bond Act, an amount equal to such deficiency 3 shall be immediately paid from other moneys received by the 4 Department pursuant to the Tax Acts to the Build Illinois 5 Fund; provided, however, that any amounts paid to the Build 6 Illinois Fund in any fiscal year pursuant to this sentence 7 shall be deemed to constitute payments pursuant to clause (b) 8 of the preceding sentence and shall reduce the amount 9 otherwise payable for such fiscal year pursuant to clause (b) 10 of the preceding sentence. The moneys received by the 11 Department pursuant to this Act and required to be deposited 12 into the Build Illinois Fund are subject to the pledge, claim 13 and charge set forth in Section 12 of the Build Illinois Bond 14 Act. 15 Subject to payment of amounts into the Build Illinois 16 Fund as provided in the preceding paragraph or in any 17 amendment thereto hereafter enacted, the following specified 18 monthly installment of the amount requested in the 19 certificate of the Chairman of the Metropolitan Pier and 20 Exposition Authority provided under Section 8.25f of the 21 State Finance Act, but not in excess of the sums designated 22 as "Total Deposit", shall be deposited in the aggregate from 23 collections under Section 9 of the Use Tax Act, Section 9 of 24 the Service Use Tax Act, Section 9 of the Service Occupation 25 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 26 into the McCormick Place Expansion Project Fund in the 27 specified fiscal years. 28 Fiscal Year Total Deposit 29 1993 $0 30 1994 53,000,000 31 1995 58,000,000 32 1996 61,000,000 33 1997 64,000,000 34 1998 68,000,000 -38- LRB9202158SMdv 1 1999 71,000,000 2 2000 75,000,000 3 2001 80,000,000 4 2002 84,000,000 5 2003 89,000,000 6 2004 93,000,000 7 2005 97,000,000 8 2006 102,000,000 9 2007 108,000,000 10 2008 115,000,000 11 2009 120,000,000 12 2010 126,000,000 13 2011 132,000,000 14 2012 138,000,000 15 2013 and 145,000,000 16 each fiscal year 17 thereafter that bonds 18 are outstanding under 19 Section 13.2 of the 20 Metropolitan Pier and 21 Exposition Authority Act, 22 but not after fiscal year 2029. 23 Beginning July 20, 1993 and in each month of each fiscal 24 year thereafter, one-eighth of the amount requested in the 25 certificate of the Chairman of the Metropolitan Pier and 26 Exposition Authority for that fiscal year, less the amount 27 deposited into the McCormick Place Expansion Project Fund by 28 the State Treasurer in the respective month under subsection 29 (g) of Section 13 of the Metropolitan Pier and Exposition 30 Authority Act, plus cumulative deficiencies in the deposits 31 required under this Section for previous months and years, 32 shall be deposited into the McCormick Place Expansion Project 33 Fund, until the full amount requested for the fiscal year, 34 but not in excess of the amount specified above as "Total -39- LRB9202158SMdv 1 Deposit", has been deposited. 2 Subject to payment of amounts into the Build Illinois 3 Fund and the McCormick Place Expansion Project Fund pursuant 4 to the preceding paragraphs or in any amendment thereto 5 hereafter enacted, each month the Department shall pay into 6 the Local Government Distributive Fund 0.4% of the net 7 revenue realized for the preceding month from the 5% general 8 rate or 0.4% of 80% of the net revenue realized for the 9 preceding month from the 6.25% general rate, as the case may 10 be, on the selling price of tangible personal property which 11 amount shall, subject to appropriation, be distributed as 12 provided in Section 2 of the State Revenue Sharing Act. No 13 payments or distributions pursuant to this paragraph shall be 14 made if the tax imposed by this Act on photo processing 15 products is declared unconstitutional, or if the proceeds 16 from such tax are unavailable for distribution because of 17 litigation. 18 Subject to payment of amounts into the Build Illinois 19 Fund, the McCormick Place Expansion Project Fund, and the 20 Local Government Distributive Fund pursuant to the preceding 21 paragraphs or in any amendments thereto hereafter enacted, 22 beginning July 1, 1993, the Department shall each month pay 23 into the Illinois Tax Increment Fund 0.27% of 80% of the net 24 revenue realized for the preceding month from the 6.25% 25 general rate on the selling price of tangible personal 26 property. 27 All remaining moneys received by the Department pursuant 28 to this Act shall be paid into the General Revenue Fund of 29 the State Treasury. 30 As soon as possible after the first day of each month, 31 upon certification of the Department of Revenue, the 32 Comptroller shall order transferred and the Treasurer shall 33 transfer from the General Revenue Fund to the Motor Fuel Tax 34 Fund an amount equal to 1.7% of 80% of the net revenue -40- LRB9202158SMdv 1 realized under this Act for the second preceding month. 2 Beginning April 1, 2000, this transfer is no longer required 3 and shall not be made. 4 Net revenue realized for a month shall be the revenue 5 collected by the State pursuant to this Act, less the amount 6 paid out during that month as refunds to taxpayers for 7 overpayment of liability. 8 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51, 9 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 10 91-872, eff. 7-1-00.) 11 Section 20. The Service Occupation Tax Act is amended by 12 changing Sections 3-10 and 9 as follows: 13 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10) 14 Sec. 3-10. Rate of tax. Unless otherwise provided in 15 this Section, the tax imposed by this Act is at the rate of 16 6.25% of the "selling price", as defined in Section 2 of the 17 Service Use Tax Act, of the tangible personal property. For 18 the purpose of computing this tax, in no event shall the 19 "selling price" be less than the cost price to the serviceman 20 of the tangible personal property transferred. The selling 21 price of each item of tangible personal property transferred 22 as an incident of a sale of service may be shown as a 23 distinct and separate item on the serviceman's billing to the 24 service customer. If the selling price is not so shown, the 25 selling price of the tangible personal property is deemed to 26 be 50% of the serviceman's entire billing to the service 27 customer. When, however, a serviceman contracts to design, 28 develop, and produce special order machinery or equipment, 29 the tax imposed by this Act shall be based on the 30 serviceman's cost price of the tangible personal property 31 transferred incident to the completion of the contract. 32 Beginning on July 1, 2000 and through December 31, 2000, -41- LRB9202158SMdv 1 with respect to motor fuel, as defined in Section 1.1 of the 2 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 3 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 4 With respect to gasohol, as defined in the Use Tax Act, 5 the tax imposed by this Act shall apply to 70% of the cost 6 price of property transferred as an incident to the sale of 7 service on or after January 1, 1990, and before July 1, 2003, 8 and to 100% of the cost price thereafter. 9 Beginning on August 1 and through August 8 of 2001 and 10 each year thereafter, with respect to "school supplies" as 11 defined in Section 2-10 of the Retailers' Occupation Tax Act, 12 the tax is imposed at the rate of 1.25%. The changes made by 13 this amendatory Act of the 92nd General Assembly are exempt 14 from the provisions of Section 3-55. 15 At the election of any registered serviceman made for 16 each fiscal year, sales of service in which the aggregate 17 annual cost price of tangible personal property transferred 18 as an incident to the sales of service is less than 35%, or 19 75% in the case of servicemen transferring prescription drugs 20 or servicemen engaged in graphic arts production, of the 21 aggregate annual total gross receipts from all sales of 22 service, the tax imposed by this Act shall be based on the 23 serviceman's cost price of the tangible personal property 24 transferred incident to the sale of those services. 25 The tax shall be imposed at the rate of 1% on food 26 prepared for immediate consumption and transferred incident 27 to a sale of service subject to this Act or the Service 28 Occupation Tax Act by an entity licensed under the Hospital 29 Licensing Act, the Nursing Home Care Act, or the Child Care 30 Act of 1969. The tax shall also be imposed at the rate of 1% 31 on food for human consumption that is to be consumed off the 32 premises where it is sold (other than alcoholic beverages, 33 soft drinks, and food that has been prepared for immediate 34 consumption and is not otherwise included in this paragraph) -42- LRB9202158SMdv 1 and prescription and nonprescription medicines, drugs, 2 medical appliances, modifications to a motor vehicle for the 3 purpose of rendering it usable by a disabled person, and 4 insulin, urine testing materials, syringes, and needles used 5 by diabetics, for human use. For the purposes of this 6 Section, the term "soft drinks" means any complete, finished, 7 ready-to-use, non-alcoholic drink, whether carbonated or not, 8 including but not limited to soda water, cola, fruit juice, 9 vegetable juice, carbonated water, and all other preparations 10 commonly known as soft drinks of whatever kind or description 11 that are contained in any closed or sealed can, carton, or 12 container, regardless of size. "Soft drinks" does not 13 include coffee, tea, non-carbonated water, infant formula, 14 milk or milk products as defined in the Grade A Pasteurized 15 Milk and Milk Products Act, or drinks containing 50% or more 16 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 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 24 91-51, 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00.) 25 (35 ILCS 115/9) (from Ch. 120, par. 439.109) 26 Sec. 9. Each serviceman required or authorized to 27 collect the tax herein imposed shall pay to the Department 28 the amount of such tax at the time when he is required to 29 file his return for the period during which such tax was 30 collectible, less a discount of 2.1% prior to January 1, 31 1990, and 1.75% on and after January 1, 1990, or $5 per 32 calendar year, whichever is greater, which is allowed to 33 reimburse the serviceman for expenses incurred in collecting -43- LRB9202158SMdv 1 the tax, keeping records, preparing and filing returns, 2 remitting the tax and supplying data to the Department on 3 request. 4 Where such tangible personal property is sold under a 5 conditional sales contract, or under any other form of sale 6 wherein the payment of the principal sum, or a part thereof, 7 is extended beyond the close of the period for which the 8 return is filed, the serviceman, in collecting the tax may 9 collect, for each tax return period, only the tax applicable 10 to the part of the selling price actually received during 11 such tax return period. 12 Except as provided hereinafter in this Section, on or 13 before the twentieth day of each calendar month, such 14 serviceman shall file a return for the preceding calendar 15 month in accordance with reasonable rules and regulations to 16 be promulgated by the Department of Revenue. Such return 17 shall be filed on a form prescribed by the Department and 18 shall contain such information as the Department may 19 reasonably require. 20 The Department may require returns to be filed on a 21 quarterly basis. If so required, a return for each calendar 22 quarter shall be filed on or before the twentieth day of the 23 calendar month following the end of such calendar quarter. 24 The taxpayer shall also file a return with the Department for 25 each of the first two months of each calendar quarter, on or 26 before the twentieth day of the following calendar month, 27 stating: 28 1. The name of the seller; 29 2. The address of the principal place of business 30 from which he engages in business as a serviceman in this 31 State; 32 3. The total amount of taxable receipts received by 33 him during the preceding calendar month, including 34 receipts from charge and time sales, but less all -44- LRB9202158SMdv 1 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 A serviceman may accept a Manufacturer's Purchase Credit 13 certification from a purchaser in satisfaction of Service Use 14 Tax as provided in Section 3-70 of the Service Use Tax Act if 15 the purchaser provides the appropriate documentation as 16 required by Section 3-70 of the Service Use Tax Act. A 17 Manufacturer's Purchase Credit certification, accepted by a 18 serviceman as provided in Section 3-70 of the Service Use Tax 19 Act, may be used by that serviceman to satisfy Service 20 Occupation Tax liability in the amount claimed in the 21 certification, not to exceed 6.25% of the receipts subject to 22 tax from a qualifying purchase. 23 If the serviceman's average monthly tax liability to the 24 Department does not exceed $200, the Department may authorize 25 his returns to be filed on a quarter annual basis, with the 26 return for January, February and March of a given year being 27 due by April 20 of such year; with the return for April, May 28 and June of a given year being due by July 20 of such year; 29 with the return for July, August and September of a given 30 year being due by October 20 of such year, and with the 31 return for October, November and December of a given year 32 being due by January 20 of the following year. 33 If the serviceman's average monthly tax liability to the 34 Department does not exceed $50, the Department may authorize -45- LRB9202158SMdv 1 his returns to be filed on an annual basis, with the return 2 for a given year being due by January 20 of the following 3 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 serviceman may file his 9 return, in the case of any serviceman who ceases to engage in 10 a kind of business which makes him responsible for filing 11 returns under this Act, such serviceman shall file a final 12 return under this Act with the Department not more than 1 13 month after discontinuing such business. 14 Beginning October 1, 1993, a taxpayer who has an average 15 monthly tax liability of $150,000 or more shall make all 16 payments required by rules of the Department by electronic 17 funds transfer. Beginning October 1, 1994, a taxpayer who 18 has an average monthly tax liability of $100,000 or more 19 shall make all payments required by rules of the Department 20 by electronic funds transfer. Beginning October 1, 1995, a 21 taxpayer who has an average monthly tax liability of $50,000 22 or more shall make all payments required by rules of the 23 Department by electronic funds transfer. Beginning October 24 1, 2000, a taxpayer who has an annual tax liability of 25 $200,000 or more shall make all payments required by rules of 26 the Department by electronic funds transfer. The term 27 "annual tax liability" shall be the sum of the taxpayer's 28 liabilities under this Act, and under all other State and 29 local occupation and use tax laws administered by the 30 Department, for the immediately preceding calendar year. The 31 term "average monthly tax liability" means the sum of the 32 taxpayer's liabilities under this Act, and under all other 33 State and local occupation and use tax laws administered by 34 the Department, for the immediately preceding calendar year -46- LRB9202158SMdv 1 divided by 12. 2 Before August 1 of each year beginning in 1993, the 3 Department shall notify all taxpayers required to make 4 payments by electronic funds transfer. All taxpayers 5 required to make payments by electronic funds transfer shall 6 make those payments for a minimum of one year beginning on 7 October 1. 8 Any taxpayer not required to make payments by electronic 9 funds transfer may make payments by electronic funds transfer 10 with the permission of the Department. 11 All taxpayers required to make payment by electronic 12 funds transfer and any taxpayers authorized to voluntarily 13 make payments by electronic funds transfer shall make those 14 payments in the manner authorized by the Department. 15 The Department shall adopt such rules as are necessary to 16 effectuate a program of electronic funds transfer and the 17 requirements of this Section. 18 Where a serviceman collects the tax with respect to the 19 selling price of tangible personal property which he sells 20 and the purchaser thereafter returns such tangible personal 21 property and the serviceman refunds the selling price thereof 22 to the purchaser, such serviceman shall also refund, to the 23 purchaser, the tax so collected from the purchaser. When 24 filing his return for the period in which he refunds such tax 25 to the purchaser, the serviceman may deduct the amount of the 26 tax so refunded by him to the purchaser from any other 27 Service Occupation Tax, Service Use Tax, Retailers' 28 Occupation Tax or Use Tax which such serviceman may be 29 required to pay or remit to the Department, as shown by such 30 return, provided that the amount of the tax to be deducted 31 shall previously have been remitted to the Department by such 32 serviceman. If the serviceman shall not previously have 33 remitted the amount of such tax to the Department, he shall 34 be entitled to no deduction hereunder upon refunding such tax -47- LRB9202158SMdv 1 to the purchaser. 2 If experience indicates such action to be practicable, 3 the Department may prescribe and furnish a combination or 4 joint return which will enable servicemen, who are required 5 to file returns hereunder and also under the Retailers' 6 Occupation Tax Act, the Use Tax Act or the Service Use Tax 7 Act, to furnish all the return information required by all 8 said Acts on the one form. 9 Where the serviceman has more than one business 10 registered with the Department under separate registrations 11 hereunder, such serviceman shall file separate returns for 12 each registered business. 13 Beginning January 1, 1990, each month the Department 14 shall pay into the Local Government Tax Fund the revenue 15 realized for the preceding month from the 1% tax on sales of 16 food for human consumption which is to be consumed off the 17 premises where it is sold (other than alcoholic beverages, 18 soft drinks and food which has been prepared for immediate 19 consumption) and prescription and nonprescription medicines, 20 drugs, medical appliances and insulin, urine testing 21 materials, syringes and needles used by diabetics. 22 Beginning January 1, 1990, each month the Department 23 shall pay into the County and Mass Transit District Fund 4% 24 of the revenue realized for the preceding month from the 25 6.25% general rate. 26 Beginning August 1, 2000, each month the Department shall 27 pay into the County and Mass Transit District Fund 20% of the 28 net revenue realized for the preceding month from the 1.25% 29 rate on the selling price of motor fuel and gasohol. 30 Each September the Department shall pay into the County 31 and Mass Transit District Fund 20% of the net revenue 32 realized for the preceding month from the 1.25% rate on 33 "school supplies" as defined in Section 2-10 of the 34 Retailers' Occupation Tax Act. -48- LRB9202158SMdv 1 Beginning January 1, 1990, each month the Department 2 shall pay into the Local Government Tax Fund 16% of the 3 revenue realized for the preceding month from the 6.25% 4 general rate on transfers of tangible personal property. 5 Beginning August 1, 2000, each month the Department shall 6 pay into the Local Government Tax Fund 80% of the net revenue 7 realized for the preceding month from the 1.25% rate on the 8 selling price of motor fuel and gasohol. 9 Each September the Department shall pay into the Local 10 Government Tax Fund 80% of the net revenue realized for the 11 preceding month from the 1.25% rate on "school supplies" as 12 defined in Section 2-10 of the Retailers' Occupation Tax Act. 13 Of the remainder of the moneys received by the Department 14 pursuant to this Act, (a) 1.75% thereof shall be paid into 15 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 16 and on and after July 1, 1989, 3.8% thereof shall be paid 17 into the Build Illinois Fund; provided, however, that if in 18 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 19 as the case may be, of the moneys received by the Department 20 and required to be paid into the Build Illinois Fund pursuant 21 to Section 3 of the Retailers' Occupation Tax Act, Section 9 22 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 23 Section 9 of the Service Occupation Tax Act, such Acts being 24 hereinafter called the "Tax Acts" and such aggregate of 2.2% 25 or 3.8%, as the case may be, of moneys being hereinafter 26 called the "Tax Act Amount", and (2) the amount transferred 27 to the Build Illinois Fund from the State and Local Sales Tax 28 Reform Fund shall be less than the Annual Specified Amount 29 (as defined in Section 3 of the Retailers' Occupation Tax 30 Act), an amount equal to the difference shall be immediately 31 paid into the Build Illinois Fund from other moneys received 32 by the Department pursuant to the Tax Acts; and further 33 provided, that if on the last business day of any month the 34 sum of (1) the Tax Act Amount required to be deposited into -49- LRB9202158SMdv 1 the Build Illinois Account in the Build Illinois Fund during 2 such month and (2) the amount transferred during such month 3 to the Build Illinois Fund from the State and Local Sales Tax 4 Reform Fund shall have been less than 1/12 of the Annual 5 Specified Amount, an amount equal to the difference shall be 6 immediately paid into the Build Illinois Fund from other 7 moneys received by the Department pursuant to the Tax Acts; 8 and, further provided, that in no event shall the payments 9 required under the preceding proviso result in aggregate 10 payments into the Build Illinois Fund pursuant to this clause 11 (b) for any fiscal year in excess of the greater of (i) the 12 Tax Act Amount or (ii) the Annual Specified Amount for such 13 fiscal year; and, further provided, that the amounts payable 14 into the Build Illinois Fund under this clause (b) shall be 15 payable only until such time as the aggregate amount on 16 deposit under each trust indenture securing Bonds issued and 17 outstanding pursuant to the Build Illinois Bond Act is 18 sufficient, taking into account any future investment income, 19 to fully provide, in accordance with such indenture, for the 20 defeasance of or the payment of the principal of, premium, if 21 any, and interest on the Bonds secured by such indenture and 22 on any Bonds expected to be issued thereafter and all fees 23 and costs payable with respect thereto, all as certified by 24 the Director of the Bureau of the Budget. If on the last 25 business day of any month in which Bonds are outstanding 26 pursuant to the Build Illinois Bond Act, the aggregate of the 27 moneys deposited in the Build Illinois Bond Account in the 28 Build Illinois Fund in such month shall be less than the 29 amount required to be transferred in such month from the 30 Build Illinois Bond Account to the Build Illinois Bond 31 Retirement and Interest Fund pursuant to Section 13 of the 32 Build Illinois Bond Act, an amount equal to such deficiency 33 shall be immediately paid from other moneys received by the 34 Department pursuant to the Tax Acts to the Build Illinois -50- LRB9202158SMdv 1 Fund; provided, however, that any amounts paid to the Build 2 Illinois Fund in any fiscal year pursuant to this sentence 3 shall be deemed to constitute payments pursuant to clause (b) 4 of the preceding sentence and shall reduce the amount 5 otherwise payable for such fiscal year pursuant to clause (b) 6 of the preceding sentence. The moneys received by the 7 Department pursuant to this Act and required to be deposited 8 into the Build Illinois Fund are subject to the pledge, claim 9 and charge set forth in Section 12 of the Build Illinois Bond 10 Act. 11 Subject to payment of amounts into the Build Illinois 12 Fund as provided in the preceding paragraph or in any 13 amendment thereto hereafter enacted, the following specified 14 monthly installment of the amount requested in the 15 certificate of the Chairman of the Metropolitan Pier and 16 Exposition Authority provided under Section 8.25f of the 17 State Finance Act, but not in excess of the sums designated 18 as "Total Deposit", shall be deposited in the aggregate from 19 collections under Section 9 of the Use Tax Act, Section 9 of 20 the Service Use Tax Act, Section 9 of the Service Occupation 21 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 22 into the McCormick Place Expansion Project Fund in the 23 specified fiscal years. 24 Fiscal Year Total Deposit 25 1993 $0 26 1994 53,000,000 27 1995 58,000,000 28 1996 61,000,000 29 1997 64,000,000 30 1998 68,000,000 31 1999 71,000,000 32 2000 75,000,000 33 2001 80,000,000 34 2002 84,000,000 -51- LRB9202158SMdv 1 2003 89,000,000 2 2004 93,000,000 3 2005 97,000,000 4 2006 102,000,000 5 2007 108,000,000 6 2008 115,000,000 7 2009 120,000,000 8 2010 126,000,000 9 2011 132,000,000 10 2012 138,000,000 11 2013 and 145,000,000 12 each fiscal year 13 thereafter that bonds 14 are outstanding under 15 Section 13.2 of the 16 Metropolitan Pier and 17 Exposition Authority 18 Act, but not after fiscal year 2029. 19 Beginning July 20, 1993 and in each month of each fiscal 20 year thereafter, one-eighth of the amount requested in the 21 certificate of the Chairman of the Metropolitan Pier and 22 Exposition Authority for that fiscal year, less the amount 23 deposited into the McCormick Place Expansion Project Fund by 24 the State Treasurer in the respective month under subsection 25 (g) of Section 13 of the Metropolitan Pier and Exposition 26 Authority Act, plus cumulative deficiencies in the deposits 27 required under this Section for previous months and years, 28 shall be deposited into the McCormick Place Expansion Project 29 Fund, until the full amount requested for the fiscal year, 30 but not in excess of the amount specified above as "Total 31 Deposit", has been deposited. 32 Subject to payment of amounts into the Build Illinois 33 Fund and the McCormick Place Expansion Project Fund pursuant 34 to the preceding paragraphs or in any amendment thereto -52- LRB9202158SMdv 1 hereafter enacted, each month the Department shall pay into 2 the Local Government Distributive Fund 0.4% of the net 3 revenue realized for the preceding month from the 5% general 4 rate or 0.4% of 80% of the net revenue realized for the 5 preceding month from the 6.25% general rate, as the case may 6 be, on the selling price of tangible personal property which 7 amount shall, subject to appropriation, be distributed as 8 provided in Section 2 of the State Revenue Sharing Act. No 9 payments or distributions pursuant to this paragraph shall be 10 made if the tax imposed by this Act on photoprocessing 11 products is declared unconstitutional, or if the proceeds 12 from such tax are unavailable for distribution because of 13 litigation. 14 Subject to payment of amounts into the Build Illinois 15 Fund, the McCormick Place Expansion Project Fund, and the 16 Local Government Distributive Fund pursuant to the preceding 17 paragraphs or in any amendments thereto hereafter enacted, 18 beginning July 1, 1993, the Department shall each month pay 19 into the Illinois Tax Increment Fund 0.27% of 80% of the net 20 revenue realized for the preceding month from the 6.25% 21 general rate on the selling price of tangible personal 22 property. 23 Remaining moneys received by the Department pursuant to 24 this Act shall be paid into the General Revenue Fund of the 25 State Treasury. 26 The Department may, upon separate written notice to a 27 taxpayer, require the taxpayer to prepare and file with the 28 Department on a form prescribed by the Department within not 29 less than 60 days after receipt of the notice an annual 30 information return for the tax year specified in the notice. 31 Such annual return to the Department shall include a 32 statement of gross receipts as shown by the taxpayer's last 33 Federal income tax return. If the total receipts of the 34 business as reported in the Federal income tax return do not -53- LRB9202158SMdv 1 agree with the gross receipts reported to the Department of 2 Revenue for the same period, the taxpayer shall attach to his 3 annual return a schedule showing a reconciliation of the 2 4 amounts and the reasons for the difference. The taxpayer's 5 annual return to the Department shall also disclose the cost 6 of goods sold by the taxpayer during the year covered by such 7 return, opening and closing inventories of such goods for 8 such year, cost of goods used from stock or taken from stock 9 and given away by the taxpayer during such year, pay roll 10 information of the taxpayer's business during such year and 11 any additional reasonable information which the Department 12 deems would be helpful in determining the accuracy of the 13 monthly, quarterly or annual returns filed by such taxpayer 14 as hereinbefore provided for in this Section. 15 If the annual information return required by this Section 16 is not filed when and as required, the taxpayer shall be 17 liable as follows: 18 (i) Until January 1, 1994, the taxpayer shall be 19 liable for a penalty equal to 1/6 of 1% of the tax due 20 from such taxpayer under this Act during the period to be 21 covered by the annual return for each month or fraction 22 of a month until such return is filed as required, the 23 penalty to be assessed and collected in the same manner 24 as any other penalty provided for in this Act. 25 (ii) On and after January 1, 1994, the taxpayer 26 shall be liable for a penalty as described in Section 3-4 27 of the Uniform Penalty and Interest Act. 28 The chief executive officer, proprietor, owner or highest 29 ranking manager shall sign the annual return to certify the 30 accuracy of the information contained therein. Any person 31 who willfully signs the annual return containing false or 32 inaccurate information shall be guilty of perjury and 33 punished accordingly. The annual return form prescribed by 34 the Department shall include a warning that the person -54- LRB9202158SMdv 1 signing the return may be liable for perjury. 2 The foregoing portion of this Section concerning the 3 filing of an annual information return shall not apply to a 4 serviceman who is not required to file an income tax return 5 with the United States Government. 6 As soon as possible after the first day of each month, 7 upon certification of the Department of Revenue, the 8 Comptroller shall order transferred and the Treasurer shall 9 transfer from the General Revenue Fund to the Motor Fuel Tax 10 Fund an amount equal to 1.7% of 80% of the net revenue 11 realized under this Act for the second preceding month. 12 Beginning April 1, 2000, this transfer is no longer required 13 and shall not be made. 14 Net revenue realized for a month shall be the revenue 15 collected by the State pursuant to this Act, less the amount 16 paid out during that month as refunds to taxpayers for 17 overpayment of liability. 18 For greater simplicity of administration, it shall be 19 permissible for manufacturers, importers and wholesalers 20 whose products are sold by numerous servicemen in Illinois, 21 and who wish to do so, to assume the responsibility for 22 accounting and paying to the Department all tax accruing 23 under this Act with respect to such sales, if the servicemen 24 who are affected do not make written objection to the 25 Department to this arrangement. 26 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51, 27 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 28 91-872, eff. 7-1-00.) 29 Section 25. The Retailers' Occupation Tax Act is amended 30 by changing Sections 2-10 and 3 as follows: 31 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10) 32 Sec. 2-10. Rate of tax. Unless otherwise provided in -55- LRB9202158SMdv 1 this Section, the tax imposed by this Act is at the rate of 2 6.25% of gross receipts from sales of tangible personal 3 property made in the course of business. 4 Beginning on July 1, 2000 and through December 31, 2000, 5 with respect to motor fuel, as defined in Section 1.1 of the 6 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 7 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 8 Within 14 days after the effective date of this 9 amendatory Act of the 91st General Assembly, each retailer of 10 motor fuel and gasohol shall cause the following notice to be 11 posted in a prominently visible place on each retail 12 dispensing device that is used to dispense motor fuel or 13 gasohol in the State of Illinois: "As of July 1, 2000, the 14 State of Illinois has eliminated the State's share of sales 15 tax on motor fuel and gasohol through December 31, 2000. The 16 price on this pump should reflect the elimination of the 17 tax." The notice shall be printed in bold print on a sign 18 that is no smaller than 4 inches by 8 inches. The sign shall 19 be clearly visible to customers. Any retailer who fails to 20 post or maintain a required sign through December 31, 2000 is 21 guilty of a petty offense for which the fine shall be $500 22 per day per each retail premises where a violation occurs. 23 With respect to gasohol, as defined in the Use Tax Act, 24 the tax imposed by this Act applies to 70% of the proceeds of 25 sales made on or after January 1, 1990, and before July 1, 26 2003, and to 100% of the proceeds of sales made thereafter. 27 Beginning on August 1 and through August 8 of 2001 and 28 each year thereafter, with respect to "school supplies", the 29 tax is imposed at the rate of 1.25%. "School supplies" means 30 (i) clothing having a selling price of $100 or less, (ii) 31 wallets having a selling price of $100 or less, (iii) bags 32 having a selling price of $100 or less, (iv) supplies used by 33 students for school purposes, except calculators, having a 34 selling price of $10 or less, and (v) calculators having a -56- LRB9202158SMdv 1 selling price of $100 or less. For purposes of "school 2 supplies": "clothing" means any article of wearing apparel, 3 including all footwear, except skis, swim fins, roller 4 blades, and skates, intended to be worn on or about the human 5 body, but does not include watches, watchbands, jewelry, 6 umbrellas, or handkerchiefs; "bags" includes handbags, 7 backpacks, and fanny packs, but does not include briefcases, 8 suitcases, and other garment bags; and "supplies used by 9 students for school purposes" means pens, pencils, erasers, 10 crayons, notebooks, notebook filler paper, legal pads, 11 composition books, poster paper, scissors, cellophane tape, 12 glue or paste, rulers, protractors, compasses, and 13 calculators. "School supplies" that are normally sold as a 14 unit must continue to be sold in that manner and cannot be 15 priced separately and sold as individual items in order to be 16 subject to the tax holiday. Any discount, coupon, or other 17 credit offered either by the retailer or by a vendor of the 18 retailer to reduce the final price to the customer shall be 19 taken into account in determining the selling price of 20 "school supplies" for purposes of this tax holiday. "School 21 supplies" do not include sales within a theme park or 22 entertainment complex, or within a public lodging 23 establishment. The changes made by this amendatory Act of 24 the 92nd General Assembly are exempt from the provisions of 25 Section 2-70. 26 With respect to food for human consumption that is to be 27 consumed off the premises where it is sold (other than 28 alcoholic beverages, soft drinks, and food that has been 29 prepared for immediate consumption) and prescription and 30 nonprescription medicines, drugs, medical appliances, 31 modifications to a motor vehicle for the purpose of rendering 32 it usable by a disabled person, and insulin, urine testing 33 materials, syringes, and needles used by diabetics, for human 34 use, the tax is imposed at the rate of 1%. For the purposes -57- LRB9202158SMdv 1 of this Section, the term "soft drinks" means any complete, 2 finished, ready-to-use, non-alcoholic drink, whether 3 carbonated or not, including but not limited to soda water, 4 cola, fruit juice, vegetable juice, carbonated water, and all 5 other preparations commonly known as soft drinks of whatever 6 kind or description that are contained in any closed or 7 sealed bottle, can, carton, or container, regardless of size. 8 "Soft drinks" does not include coffee, tea, non-carbonated 9 water, infant formula, milk or milk products as defined in 10 the Grade A Pasteurized Milk and Milk Products Act, or drinks 11 containing 50% or more natural fruit or vegetable juice. 12 Notwithstanding any other provisions of this Act, "food 13 for human consumption that is to be consumed off the premises 14 where it is sold" includes all food sold through a vending 15 machine, except soft drinks and food products that are 16 dispensed hot from a vending machine, regardless of the 17 location of the vending machine. 18 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 19 91-51, eff. 6-30-99; 91-872, eff. 7-1-00.) 20 (35 ILCS 120/3) (from Ch. 120, par. 442) 21 Sec. 3. Except as provided in this Section, on or before 22 the twentieth day of each calendar month, every person 23 engaged in the business of selling tangible personal property 24 at retail in this State during the preceding calendar month 25 shall file a return with the Department, stating: 26 1. The name of the seller; 27 2. His residence address and the address of his 28 principal place of business and the address of the 29 principal place of business (if that is a different 30 address) from which he engages in the business of selling 31 tangible personal property at retail in this State; 32 3. Total amount of receipts received by him during 33 the preceding calendar month or quarter, as the case may -58- LRB9202158SMdv 1 be, from sales of tangible personal property, and from 2 services furnished, by him during such preceding calendar 3 month or quarter; 4 4. Total amount received by him during the 5 preceding calendar month or quarter on charge and time 6 sales of tangible personal property, and from services 7 furnished, by him prior to the month or quarter for which 8 the return is filed; 9 5. Deductions allowed by law; 10 6. Gross receipts which were received by him during 11 the preceding calendar month or quarter and upon the 12 basis of which the tax is imposed; 13 7. The amount of credit provided in Section 2d of 14 this Act; 15 8. The amount of tax due; 16 9. The signature of the taxpayer; and 17 10. Such other reasonable information as the 18 Department may require. 19 If a taxpayer fails to sign a return within 30 days after 20 the proper notice and demand for signature by the Department, 21 the return shall be considered valid and any amount shown to 22 be due on the return shall be deemed assessed. 23 Each return shall be accompanied by the statement of 24 prepaid tax issued pursuant to Section 2e for which credit is 25 claimed. 26 A retailer may accept a Manufacturer's Purchase Credit 27 certification from a purchaser in satisfaction of Use Tax as 28 provided in Section 3-85 of the Use Tax Act if the purchaser 29 provides the appropriate documentation as required by Section 30 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit 31 certification, accepted by a retailer as provided in Section 32 3-85 of the Use Tax Act, may be used by that retailer to 33 satisfy Retailers' Occupation Tax liability in the amount 34 claimed in the certification, not to exceed 6.25% of the -59- LRB9202158SMdv 1 receipts subject to tax from a qualifying purchase. 2 The Department may require returns to be filed on a 3 quarterly basis. If so required, a return for each calendar 4 quarter shall be filed on or before the twentieth day of the 5 calendar month following the end of such calendar quarter. 6 The taxpayer shall also file a return with the Department for 7 each of the first two months of each calendar quarter, on or 8 before the twentieth day of the following calendar month, 9 stating: 10 1. The name of the seller; 11 2. The address of the principal place of business 12 from which he engages in the business of selling tangible 13 personal property at retail in this State; 14 3. The total amount of taxable receipts received by 15 him during the preceding calendar month from sales of 16 tangible personal property by him during such preceding 17 calendar month, including receipts from charge and time 18 sales, but less all deductions allowed by law; 19 4. The amount of credit provided in Section 2d of 20 this Act; 21 5. The amount of tax due; and 22 6. Such other reasonable information as the 23 Department may require. 24 If a total amount of less than $1 is payable, refundable 25 or creditable, such amount shall be disregarded if it is less 26 than 50 cents and shall be increased to $1 if it is 50 cents 27 or more. 28 Beginning October 1, 1993, a taxpayer who has an average 29 monthly tax liability of $150,000 or more shall make all 30 payments required by rules of the Department by electronic 31 funds transfer. Beginning October 1, 1994, a taxpayer who 32 has an average monthly tax liability of $100,000 or more 33 shall make all payments required by rules of the Department 34 by electronic funds transfer. Beginning October 1, 1995, a -60- LRB9202158SMdv 1 taxpayer who has an average monthly tax liability of $50,000 2 or more shall make all payments required by rules of the 3 Department by electronic funds transfer. Beginning October 4 1, 2000, a taxpayer who has an annual tax liability of 5 $200,000 or more shall make all payments required by rules of 6 the Department by electronic funds transfer. The term 7 "annual tax liability" shall be the sum of the taxpayer's 8 liabilities under this Act, and under all other State and 9 local occupation and use tax laws administered by the 10 Department, for the immediately preceding calendar year. The 11 term "average monthly tax liability" shall be the sum of the 12 taxpayer's liabilities under this Act, and under all other 13 State and local occupation and use tax laws administered by 14 the Department, for the immediately preceding calendar year 15 divided by 12. 16 Before August 1 of each year beginning in 1993, the 17 Department shall notify all taxpayers required to make 18 payments by electronic funds transfer. All taxpayers 19 required to make payments by electronic funds transfer shall 20 make those payments for a minimum of one year beginning on 21 October 1. 22 Any taxpayer not required to make payments by electronic 23 funds transfer may make payments by electronic funds transfer 24 with the permission of the Department. 25 All taxpayers required to make payment by electronic 26 funds transfer and any taxpayers authorized to voluntarily 27 make payments by electronic funds transfer shall make those 28 payments in the manner authorized by the Department. 29 The Department shall adopt such rules as are necessary to 30 effectuate a program of electronic funds transfer and the 31 requirements of this Section. 32 Any amount which is required to be shown or reported on 33 any return or other document under this Act shall, if such 34 amount is not a whole-dollar amount, be increased to the -61- LRB9202158SMdv 1 nearest whole-dollar amount in any case where the fractional 2 part of a dollar is 50 cents or more, and decreased to the 3 nearest whole-dollar amount where the fractional part of a 4 dollar is less than 50 cents. 5 If the retailer is otherwise required to file a monthly 6 return and if the retailer's average monthly tax liability to 7 the Department does not exceed $200, the Department may 8 authorize his returns to be filed on a quarter annual basis, 9 with the return for January, February and March of a given 10 year being due by April 20 of such year; with the return for 11 April, May and June of a given year being due by July 20 of 12 such year; with the return for July, August and September of 13 a given year being due by October 20 of such year, and with 14 the return for October, November and December of a given year 15 being due by January 20 of the following year. 16 If the retailer is otherwise required to file a monthly 17 or quarterly return and if the retailer's average monthly tax 18 liability with the Department does not exceed $50, the 19 Department may authorize his returns to be filed on an annual 20 basis, with the return for a given year being due by January 21 20 of the following year. 22 Such quarter annual and annual returns, as to form and 23 substance, shall be subject to the same requirements as 24 monthly returns. 25 Notwithstanding any other provision in this Act 26 concerning the time within which a retailer may file his 27 return, in the case of any retailer who ceases to engage in a 28 kind of business which makes him responsible for filing 29 returns under this Act, such retailer shall file a final 30 return under this Act with the Department not more than one 31 month after discontinuing such business. 32 Where the same person has more than one business 33 registered with the Department under separate registrations 34 under this Act, such person may not file each return that is -62- LRB9202158SMdv 1 due as a single return covering all such registered 2 businesses, but shall file separate returns for each such 3 registered business. 4 In addition, with respect to motor vehicles, watercraft, 5 aircraft, and trailers that are required to be registered 6 with an agency of this State, every retailer selling this 7 kind of tangible personal property shall file, with the 8 Department, upon a form to be prescribed and supplied by the 9 Department, a separate return for each such item of tangible 10 personal property which the retailer sells, except that if, 11 in the same transaction, (i) a retailer of aircraft, 12 watercraft, motor vehicles or trailers transfers more than 13 one aircraft, watercraft, motor vehicle or trailer to another 14 aircraft, watercraft, motor vehicle retailer or trailer 15 retailer for the purpose of resale or (ii) a retailer of 16 aircraft, watercraft, motor vehicles, or trailers transfers 17 more than one aircraft, watercraft, motor vehicle, or trailer 18 to a purchaser for use as a qualifying rolling stock as 19 provided in Section 2-5 of this Act, then that seller may 20 report the transfer of all aircraft, watercraft, motor 21 vehicles or trailers involved in that transaction to the 22 Department on the same uniform invoice-transaction reporting 23 return form. For purposes of this Section, "watercraft" 24 means a Class 2, Class 3, or Class 4 watercraft as defined in 25 Section 3-2 of the Boat Registration and Safety Act, a 26 personal watercraft, or any boat equipped with an inboard 27 motor. 28 Any retailer who sells only motor vehicles, watercraft, 29 aircraft, or trailers that are required to be registered with 30 an agency of this State, so that all retailers' occupation 31 tax liability is required to be reported, and is reported, on 32 such transaction reporting returns and who is not otherwise 33 required to file monthly or quarterly returns, need not file 34 monthly or quarterly returns. However, those retailers shall -63- LRB9202158SMdv 1 be required to file returns on an annual basis. 2 The transaction reporting return, in the case of motor 3 vehicles or trailers that are required to be registered with 4 an agency of this State, shall be the same document as the 5 Uniform Invoice referred to in Section 5-402 of The Illinois 6 Vehicle Code and 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; such other information as is required in 21 Section 5-402 of The Illinois Vehicle Code, and such other 22 information as the Department may reasonably require. 23 The transaction reporting return in the case of 24 watercraft or aircraft must show the name and address of the 25 seller; the name and address of the purchaser; the amount of 26 the selling price including the amount allowed by the 27 retailer for traded-in property, if any; the amount allowed 28 by the retailer for the traded-in tangible personal property, 29 if any, to the extent to which Section 1 of this Act allows 30 an exemption for the value of traded-in property; the balance 31 payable after deducting such trade-in allowance from the 32 total selling price; the amount of tax due from the retailer 33 with respect to such transaction; the amount of tax collected 34 from the purchaser by the retailer on such transaction (or -64- LRB9202158SMdv 1 satisfactory evidence that such tax is not due in that 2 particular instance, if that is claimed to be the fact); the 3 place and date of the sale, a sufficient identification of 4 the property sold, and such other information as the 5 Department may reasonably require. 6 Such transaction reporting return shall be filed not 7 later than 20 days after the day of delivery of the item that 8 is being sold, but may be filed by the retailer at any time 9 sooner than that if he chooses to do so. The transaction 10 reporting return and tax remittance or proof of exemption 11 from the Illinois use tax may be transmitted to the 12 Department by way of the State agency with which, or State 13 officer with whom the tangible personal property must be 14 titled or registered (if titling or registration is required) 15 if the Department and such agency or State officer determine 16 that this procedure will expedite the processing of 17 applications for title or registration. 18 With each such transaction reporting return, the retailer 19 shall remit the proper amount of tax due (or shall submit 20 satisfactory evidence that the sale is not taxable if that is 21 the case), to the Department or its agents, whereupon the 22 Department shall issue, in the purchaser's name, a use tax 23 receipt (or a certificate of exemption if the Department is 24 satisfied that the particular sale is tax exempt) which such 25 purchaser may submit to the agency with which, or State 26 officer with whom, he must title or register the tangible 27 personal property that is involved (if titling or 28 registration is required) in support of such purchaser's 29 application for an Illinois certificate or other evidence of 30 title or registration to such tangible personal property. 31 No retailer's failure or refusal to remit tax under this 32 Act precludes a user, who has paid the proper tax to the 33 retailer, from obtaining his certificate of title or other 34 evidence of title or registration (if titling or registration -65- LRB9202158SMdv 1 is required) upon satisfying the Department that such user 2 has paid the proper tax (if tax is due) to the retailer. The 3 Department shall adopt appropriate rules to carry out the 4 mandate of this paragraph. 5 If the user who would otherwise pay tax to the retailer 6 wants the transaction reporting return filed and the payment 7 of the tax or proof of exemption made to the Department 8 before the retailer is willing to take these actions and such 9 user has not paid the tax to the retailer, such user may 10 certify to the fact of such delay by the retailer and may 11 (upon the Department being satisfied of the truth of such 12 certification) transmit the information required by the 13 transaction reporting return and the remittance for tax or 14 proof of exemption directly to the Department and obtain his 15 tax receipt or exemption determination, in which event the 16 transaction reporting return and tax remittance (if a tax 17 payment was required) shall be credited by the Department to 18 the proper retailer's account with the Department, but 19 without the 2.1% or 1.75% discount provided for in this 20 Section being allowed. When the user pays the tax directly 21 to the Department, he shall pay the tax in the same amount 22 and in the same form in which it would be remitted if the tax 23 had been remitted to the Department by the retailer. 24 Refunds made by the seller during the preceding return 25 period to purchasers, on account of tangible personal 26 property returned to the seller, shall be allowed as a 27 deduction under subdivision 5 of his monthly or quarterly 28 return, as the case may be, in case the seller had 29 theretofore included the receipts from the sale of such 30 tangible personal property in a return filed by him and had 31 paid the tax imposed by this Act with respect to such 32 receipts. 33 Where the seller is a corporation, the return filed on 34 behalf of such corporation shall be signed by the president, -66- LRB9202158SMdv 1 vice-president, secretary or treasurer or by the properly 2 accredited agent of such corporation. 3 Where the seller is a limited liability company, the 4 return filed on behalf of the limited liability company shall 5 be signed by a manager, member, or properly accredited agent 6 of the limited liability company. 7 Except as provided in this Section, the retailer filing 8 the return under this Section shall, at the time of filing 9 such return, pay to the Department the amount of tax imposed 10 by this Act less a discount of 2.1% prior to January 1, 1990 11 and 1.75% on and after January 1, 1990, or $5 per calendar 12 year, whichever is greater, which is allowed to reimburse the 13 retailer for the expenses incurred in keeping records, 14 preparing and filing returns, remitting the tax and supplying 15 data to the Department on request. Any prepayment made 16 pursuant to Section 2d of this Act shall be included in the 17 amount on which such 2.1% or 1.75% discount is computed. In 18 the case of retailers who report and pay the tax on a 19 transaction by transaction basis, as provided in this 20 Section, such discount shall be taken with each such tax 21 remittance instead of when such retailer files his periodic 22 return. 23 Before October 1, 2000, if the taxpayer's average monthly 24 tax liability to the Department under this Act, the Use Tax 25 Act, the Service Occupation Tax Act, and the Service Use Tax 26 Act, excluding any liability for prepaid sales tax to be 27 remitted in accordance with Section 2d of this Act, was 28 $10,000 or more during the preceding 4 complete calendar 29 quarters, he shall file a return with the Department each 30 month by the 20th day of the month next following the month 31 during which such tax liability is incurred and shall make 32 payments to the Department on or before the 7th, 15th, 22nd 33 and last day of the month during which such liability is 34 incurred. On and after October 1, 2000, if the taxpayer's -67- LRB9202158SMdv 1 average monthly tax liability to the Department under this 2 Act, the Use Tax Act, the Service Occupation Tax Act, and the 3 Service Use Tax Act, excluding any liability for prepaid 4 sales tax to be remitted in accordance with Section 2d of 5 this Act, was $20,000 or more during the preceding 4 complete 6 calendar quarters, he shall file a return with the Department 7 each month by the 20th day of the month next following the 8 month during which such tax liability is incurred and shall 9 make payment to the Department on or before the 7th, 15th, 10 22nd and last day of the month during which such liability is 11 incurred. If the month during which such tax liability is 12 incurred began prior to January 1, 1985, each payment shall 13 be in an amount equal to 1/4 of the taxpayer's actual 14 liability for the month or an amount set by the Department 15 not to exceed 1/4 of the average monthly liability of the 16 taxpayer to the Department for the preceding 4 complete 17 calendar quarters (excluding the month of highest liability 18 and the month of lowest liability in such 4 quarter period). 19 If the month during which such tax liability is incurred 20 begins on or after January 1, 1985 and prior to January 1, 21 1987, each payment shall be in an amount equal to 22.5% of 22 the taxpayer's actual liability for the month or 27.5% of the 23 taxpayer's liability for the same calendar month of the 24 preceding year. If the month during which such tax liability 25 is incurred begins on or after January 1, 1987 and prior to 26 January 1, 1988, each payment shall be in an amount equal to 27 22.5% of the taxpayer's actual liability for the month or 28 26.25% of the taxpayer's liability for the same calendar 29 month of the preceding year. If the month during which such 30 tax liability is incurred begins on or after January 1, 1988, 31 and prior to January 1, 1989, or begins on or after January 32 1, 1996, each payment shall be in an amount equal to 22.5% of 33 the taxpayer's actual liability for the month or 25% of the 34 taxpayer's liability for the same calendar month of the -68- LRB9202158SMdv 1 preceding year. If the month during which such tax liability 2 is incurred begins on or after January 1, 1989, and prior to 3 January 1, 1996, each payment shall be in an amount equal to 4 22.5% of the taxpayer's actual liability for the month or 25% 5 of the taxpayer's liability for the same calendar month of 6 the preceding year or 100% of the taxpayer's actual liability 7 for the quarter monthly reporting period. The amount of such 8 quarter monthly payments shall be credited against the final 9 tax liability of the taxpayer's return for that month. 10 Before October 1, 2000, once applicable, the requirement of 11 the making of quarter monthly payments to the Department by 12 taxpayers having an average monthly tax liability of $10,000 13 or more as determined in the manner provided above shall 14 continue until such taxpayer's average monthly liability to 15 the Department during the preceding 4 complete calendar 16 quarters (excluding the month of highest liability and the 17 month of lowest liability) is less than $9,000, or until such 18 taxpayer's average monthly liability to the Department as 19 computed for each calendar quarter of the 4 preceding 20 complete calendar quarter period is less than $10,000. 21 However, if a taxpayer can show the Department that a 22 substantial change in the taxpayer's business has occurred 23 which causes the taxpayer to anticipate that his average 24 monthly tax liability for the reasonably foreseeable future 25 will fall below the $10,000 threshold stated above, then such 26 taxpayer may petition the Department for a change in such 27 taxpayer's reporting status. On and after October 1, 2000, 28 once applicable, the requirement of the making of quarter 29 monthly payments to the Department by taxpayers having an 30 average monthly tax liability of $20,000 or more as 31 determined in the manner provided above shall continue until 32 such taxpayer's average monthly liability to the Department 33 during the preceding 4 complete calendar quarters (excluding 34 the month of highest liability and the month of lowest -69- LRB9202158SMdv 1 liability) is less than $19,000 or until such taxpayer's 2 average monthly liability to the Department as computed for 3 each calendar quarter of the 4 preceding complete calendar 4 quarter period is less than $20,000. However, if a taxpayer 5 can show the Department that a substantial change in the 6 taxpayer's business has occurred which causes the taxpayer to 7 anticipate that his average monthly tax liability for the 8 reasonably foreseeable future will fall below the $20,000 9 threshold stated above, then such taxpayer may petition the 10 Department for a change in such taxpayer's reporting status. 11 The Department shall change such taxpayer's reporting status 12 unless it finds that such change is seasonal in nature and 13 not likely to be long term. If any such quarter monthly 14 payment is not paid at the time or in the amount required by 15 this Section, then the taxpayer shall be liable for penalties 16 and interest on the difference between the minimum amount due 17 as a payment and the amount of such quarter monthly payment 18 actually and timely paid, except insofar as the taxpayer has 19 previously made payments for that month to the Department in 20 excess of the minimum payments previously due as provided in 21 this Section. The Department shall make reasonable rules and 22 regulations to govern the quarter monthly payment amount and 23 quarter monthly payment dates for taxpayers who file on other 24 than a calendar monthly basis. 25 Without regard to whether a taxpayer is required to make 26 quarter monthly payments as specified above, any taxpayer who 27 is required by Section 2d of this Act to collect and remit 28 prepaid taxes and has collected prepaid taxes which average 29 in excess of $25,000 per month during the preceding 2 30 complete calendar quarters, shall file a return with the 31 Department as required by Section 2f and shall make payments 32 to the Department on or before the 7th, 15th, 22nd and last 33 day of the month during which such liability is incurred. If 34 the month during which such tax liability is incurred began -70- LRB9202158SMdv 1 prior to the effective date of this amendatory Act of 1985, 2 each payment shall be in an amount not less than 22.5% of the 3 taxpayer's actual liability under Section 2d. If the month 4 during which such tax liability is incurred begins on or 5 after January 1, 1986, each payment shall be in an amount 6 equal to 22.5% of the taxpayer's actual liability for the 7 month or 27.5% of the taxpayer's liability for the same 8 calendar month of the preceding calendar year. If the month 9 during which such tax liability is incurred begins on or 10 after January 1, 1987, each payment shall be in an amount 11 equal to 22.5% of the taxpayer's actual liability for the 12 month or 26.25% of the taxpayer's liability for the same 13 calendar month of the preceding year. The amount of such 14 quarter monthly payments shall be credited against the final 15 tax liability of the taxpayer's return for that month filed 16 under this Section or Section 2f, as the case may be. Once 17 applicable, the requirement of the making of quarter monthly 18 payments to the Department pursuant to this paragraph shall 19 continue until such taxpayer's average monthly prepaid tax 20 collections during the preceding 2 complete calendar quarters 21 is $25,000 or less. If any such quarter monthly payment is 22 not paid at the time or in the amount required, the taxpayer 23 shall be liable for penalties and interest on such 24 difference, except insofar as the taxpayer has previously 25 made payments for that month in excess of the minimum 26 payments previously due. 27 If any payment provided for in this Section exceeds the 28 taxpayer's liabilities under this Act, the Use Tax Act, the 29 Service Occupation Tax Act and the Service Use Tax Act, as 30 shown on an original monthly return, the Department shall, if 31 requested by the taxpayer, issue to the taxpayer a credit 32 memorandum no later than 30 days after the date of payment. 33 The credit evidenced by such credit memorandum may be 34 assigned by the taxpayer to a similar taxpayer under this -71- LRB9202158SMdv 1 Act, the Use Tax Act, the Service Occupation Tax Act or the 2 Service Use Tax Act, in accordance with reasonable rules and 3 regulations to be prescribed by the Department. If no such 4 request is made, the taxpayer may credit such excess payment 5 against tax liability subsequently to be remitted to the 6 Department under this Act, the Use Tax Act, the Service 7 Occupation Tax Act or the Service Use Tax Act, in accordance 8 with reasonable rules and regulations prescribed by the 9 Department. If the Department subsequently determined that 10 all or any part of the credit taken was not actually due to 11 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount 12 shall be reduced by 2.1% or 1.75% of the difference between 13 the credit taken and that actually due, and that taxpayer 14 shall be liable for penalties and interest on such 15 difference. 16 If a retailer of motor fuel is entitled to a credit under 17 Section 2d of this Act which exceeds the taxpayer's liability 18 to the Department under this Act for the month which the 19 taxpayer is filing a return, the Department shall issue the 20 taxpayer a credit memorandum for the excess. 21 Beginning January 1, 1990, each month the Department 22 shall pay into the Local Government Tax Fund, a special fund 23 in the State treasury which is hereby created, the net 24 revenue realized for the preceding month from the 1% tax on 25 sales of food for human consumption which is to be consumed 26 off the premises where it is sold (other than alcoholic 27 beverages, soft drinks and food which has been prepared for 28 immediate consumption) and prescription and nonprescription 29 medicines, drugs, medical appliances and insulin, urine 30 testing materials, syringes and needles used by diabetics. 31 Beginning January 1, 1990, each month the Department 32 shall pay into the County and Mass Transit District Fund, a 33 special fund in the State treasury which is hereby created, 34 4% of the net revenue realized for the preceding month from -72- LRB9202158SMdv 1 the 6.25% general rate. 2 Beginning August 1, 2000, each month the Department shall 3 pay into the County and Mass Transit District Fund 20% of the 4 net revenue realized for the preceding month from the 1.25% 5 rate on the selling price of motor fuel and gasohol. 6 Each September the Department shall pay into the County 7 and Mass Transit District Fund 20% of the net revenue 8 realized for the preceding month from the 1.25% rate on 9 "school supplies" as defined in Section 2-10 this Act. 10 Beginning January 1, 1990, each month the Department 11 shall pay into the Local Government Tax Fund 16% of the net 12 revenue realized for the preceding month from the 6.25% 13 general rate on the selling price of tangible personal 14 property. 15 Beginning August 1, 2000, each month the Department shall 16 pay into the Local Government Tax Fund 80% of the net revenue 17 realized for the preceding month from the 1.25% rate on the 18 selling price of motor fuel and gasohol. 19 Each September the Department shall pay into the Local 20 Government Tax Fund 80% of the net revenue realized for the 21 preceding month from the 1.25% rate on "school supplies" as 22 defined in Section 2-10 of this Act. 23 Of the remainder of the moneys received by the Department 24 pursuant to this Act, (a) 1.75% thereof shall be paid into 25 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 26 and on and after July 1, 1989, 3.8% thereof shall be paid 27 into the Build Illinois Fund; provided, however, that if in 28 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 29 as the case may be, of the moneys received by the Department 30 and required to be paid into the Build Illinois Fund pursuant 31 to this Act, Section 9 of the Use Tax Act, Section 9 of the 32 Service Use Tax Act, and Section 9 of the Service Occupation 33 Tax Act, such Acts being hereinafter called the "Tax Acts" 34 and such aggregate of 2.2% or 3.8%, as the case may be, of -73- LRB9202158SMdv 1 moneys being hereinafter called the "Tax Act Amount", and (2) 2 the amount transferred to the Build Illinois Fund from the 3 State and Local Sales Tax Reform Fund shall be less than the 4 Annual Specified Amount (as hereinafter defined), an amount 5 equal to the difference shall be immediately paid into the 6 Build Illinois Fund from other moneys received by the 7 Department pursuant to the Tax Acts; the "Annual Specified 8 Amount" means the amounts specified below for fiscal years 9 1986 through 1993: 10 Fiscal Year Annual Specified Amount 11 1986 $54,800,000 12 1987 $76,650,000 13 1988 $80,480,000 14 1989 $88,510,000 15 1990 $115,330,000 16 1991 $145,470,000 17 1992 $182,730,000 18 1993 $206,520,000; 19 and means the Certified Annual Debt Service Requirement (as 20 defined in Section 13 of the Build Illinois Bond Act) or the 21 Tax Act Amount, whichever is greater, for fiscal year 1994 22 and each fiscal year thereafter; and further provided, that 23 if on the last business day of any month the sum of (1) the 24 Tax Act Amount required to be deposited into the Build 25 Illinois Bond Account in the Build Illinois Fund during such 26 month and (2) the amount transferred to the Build Illinois 27 Fund from the State and Local Sales Tax Reform Fund shall 28 have been less than 1/12 of the Annual Specified Amount, an 29 amount equal to the difference shall be immediately paid into 30 the Build Illinois Fund from other moneys received by the 31 Department pursuant to the Tax Acts; and, further provided, 32 that in no event shall the payments required under the 33 preceding proviso result in aggregate payments into the Build 34 Illinois Fund pursuant to this clause (b) for any fiscal year -74- LRB9202158SMdv 1 in excess of the greater of (i) the Tax Act Amount or (ii) 2 the Annual Specified Amount for such fiscal year. The 3 amounts payable into the Build Illinois Fund under clause (b) 4 of the first sentence in this paragraph shall be payable only 5 until such time as the aggregate amount on deposit under each 6 trust indenture securing Bonds issued and outstanding 7 pursuant to the Build Illinois Bond Act is sufficient, taking 8 into account any future investment income, to fully provide, 9 in accordance with such indenture, for the defeasance of or 10 the payment of the principal of, premium, if any, and 11 interest on the Bonds secured by such indenture and on any 12 Bonds expected to be issued thereafter and all fees and costs 13 payable with respect thereto, all as certified by the 14 Director of the Bureau of the Budget. If on the last 15 business day of any month in which Bonds are outstanding 16 pursuant to the Build Illinois Bond Act, the aggregate of 17 moneys deposited in the Build Illinois Bond Account in the 18 Build Illinois Fund in such month shall be less than the 19 amount required to be transferred in such month from the 20 Build Illinois Bond Account to the Build Illinois Bond 21 Retirement and Interest Fund pursuant to Section 13 of the 22 Build Illinois Bond Act, an amount equal to such deficiency 23 shall be immediately paid from other moneys received by the 24 Department pursuant to the Tax Acts to the Build Illinois 25 Fund; provided, however, that any amounts paid to the Build 26 Illinois Fund in any fiscal year pursuant to this sentence 27 shall be deemed to constitute payments pursuant to clause (b) 28 of the first sentence of this paragraph and shall reduce the 29 amount otherwise payable for such fiscal year pursuant to 30 that clause (b). The moneys received by the Department 31 pursuant to this Act and required to be deposited into the 32 Build Illinois Fund are subject to the pledge, claim and 33 charge set forth in Section 12 of the Build Illinois Bond 34 Act. -75- LRB9202158SMdv 1 Subject to payment of amounts into the Build Illinois 2 Fund as provided in the preceding paragraph or in any 3 amendment thereto hereafter enacted, the following specified 4 monthly installment of the amount requested in the 5 certificate of the Chairman of the Metropolitan Pier and 6 Exposition Authority provided under Section 8.25f of the 7 State Finance Act, but not in excess of sums designated as 8 "Total Deposit", shall be deposited in the aggregate from 9 collections under Section 9 of the Use Tax Act, Section 9 of 10 the Service Use Tax Act, Section 9 of the Service Occupation 11 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 12 into the McCormick Place Expansion Project Fund in the 13 specified fiscal years. 14 Fiscal Year Total Deposit 15 1993 $0 16 1994 53,000,000 17 1995 58,000,000 18 1996 61,000,000 19 1997 64,000,000 20 1998 68,000,000 21 1999 71,000,000 22 2000 75,000,000 23 2001 80,000,000 24 2002 84,000,000 25 2003 89,000,000 26 2004 93,000,000 27 2005 97,000,000 28 2006 102,000,000 29 2007 108,000,000 30 2008 115,000,000 31 2009 120,000,000 32 2010 126,000,000 33 2011 132,000,000 34 2012 138,000,000 -76- LRB9202158SMdv 1 2013 and 145,000,000 2 each fiscal year 3 thereafter that bonds 4 are outstanding under 5 Section 13.2 of the 6 Metropolitan Pier and 7 Exposition Authority 8 Act, but not after fiscal year 2029. 9 Beginning July 20, 1993 and in each month of each fiscal 10 year thereafter, one-eighth of the amount requested in the 11 certificate of the Chairman of the Metropolitan Pier and 12 Exposition Authority for that fiscal year, less the amount 13 deposited into the McCormick Place Expansion Project Fund by 14 the State Treasurer in the respective month under subsection 15 (g) of Section 13 of the Metropolitan Pier and Exposition 16 Authority Act, plus cumulative deficiencies in the deposits 17 required under this Section for previous months and years, 18 shall be deposited into the McCormick Place Expansion Project 19 Fund, until the full amount requested for the fiscal year, 20 but not in excess of the amount specified above as "Total 21 Deposit", has been deposited. 22 Subject to payment of amounts into the Build Illinois 23 Fund and the McCormick Place Expansion Project Fund pursuant 24 to the preceding paragraphs or in any amendment thereto 25 hereafter enacted, each month the Department shall pay into 26 the Local Government Distributive Fund 0.4% of the net 27 revenue realized for the preceding month from the 5% general 28 rate or 0.4% of 80% of the net revenue realized for the 29 preceding month from the 6.25% general rate, as the case may 30 be, on the selling price of tangible personal property which 31 amount shall, subject to appropriation, be distributed as 32 provided in Section 2 of the State Revenue Sharing Act. No 33 payments or distributions pursuant to this paragraph shall be 34 made if the tax imposed by this Act on photoprocessing -77- LRB9202158SMdv 1 products is declared unconstitutional, or if the proceeds 2 from such tax are unavailable for distribution because of 3 litigation. 4 Subject to payment of amounts into the Build Illinois 5 Fund, the McCormick Place Expansion Project to the preceding 6 paragraphs or in any amendments thereto hereafter enacted, 7 beginning July 1, 1993, the Department shall each month pay 8 into the Illinois Tax Increment Fund 0.27% of 80% of the net 9 revenue realized for the preceding month from the 6.25% 10 general rate on the selling price of tangible personal 11 property. 12 Of the remainder of the moneys received by the Department 13 pursuant to this Act, 75% thereof shall be paid into the 14 State Treasury and 25% shall be reserved in a special account 15 and used only for the transfer to the Common School Fund as 16 part of the monthly transfer from the General Revenue Fund in 17 accordance with Section 8a of the State Finance Act. 18 The Department may, upon separate written notice to a 19 taxpayer, require the taxpayer to prepare and file with the 20 Department on a form prescribed by the Department within not 21 less than 60 days after receipt of the notice an annual 22 information return for the tax year specified in the notice. 23 Such annual return to the Department shall include a 24 statement of gross receipts as shown by the retailer's last 25 Federal income tax return. If the total receipts of the 26 business as reported in the Federal income tax return do not 27 agree with the gross receipts reported to the Department of 28 Revenue for the same period, the retailer shall attach to his 29 annual return a schedule showing a reconciliation of the 2 30 amounts and the reasons for the difference. The retailer's 31 annual return to the Department shall also disclose the cost 32 of goods sold by the retailer during the year covered by such 33 return, opening and closing inventories of such goods for 34 such year, costs of goods used from stock or taken from stock -78- LRB9202158SMdv 1 and given away by the retailer during such year, payroll 2 information of the retailer's business during such year and 3 any additional reasonable information which the Department 4 deems would be helpful in determining the accuracy of the 5 monthly, quarterly or annual returns filed by such retailer 6 as provided for in this Section. 7 If the annual information return required by this Section 8 is not filed when and as required, the taxpayer shall be 9 liable as follows: 10 (i) Until January 1, 1994, the taxpayer shall be 11 liable for a penalty equal to 1/6 of 1% of the tax due 12 from such taxpayer under this Act during the period to be 13 covered by the annual return for each month or fraction 14 of a month until such return is filed as required, the 15 penalty to be assessed and collected in the same manner 16 as any other penalty provided for in this Act. 17 (ii) On and after January 1, 1994, the taxpayer 18 shall be liable for a penalty as described in Section 3-4 19 of the Uniform Penalty and Interest Act. 20 The chief executive officer, proprietor, owner or highest 21 ranking manager shall sign the annual return to certify the 22 accuracy of the information contained therein. Any person 23 who willfully signs the annual return containing false or 24 inaccurate information shall be guilty of perjury and 25 punished accordingly. The annual return form prescribed by 26 the Department shall include a warning that the person 27 signing the return may be liable for perjury. 28 The provisions of this Section concerning the filing of 29 an annual information return do not apply to a retailer who 30 is not required to file an income tax return with the United 31 States Government. 32 As soon as possible after the first day of each month, 33 upon certification of the Department of Revenue, the 34 Comptroller shall order transferred and the Treasurer shall -79- LRB9202158SMdv 1 transfer from the General Revenue Fund to the Motor Fuel Tax 2 Fund an amount equal to 1.7% of 80% of the net revenue 3 realized under this Act for the second preceding month. 4 Beginning April 1, 2000, this transfer is no longer required 5 and shall not be made. 6 Net revenue realized for a month shall be the revenue 7 collected by the State pursuant to this Act, less the amount 8 paid out during that month as refunds to taxpayers for 9 overpayment of liability. 10 For greater simplicity of administration, manufacturers, 11 importers and wholesalers whose products are sold at retail 12 in Illinois by numerous retailers, and who wish to do so, may 13 assume the responsibility for accounting and paying to the 14 Department all tax accruing under this Act with respect to 15 such sales, if the retailers who are affected do not make 16 written objection to the Department to this arrangement. 17 Any person who promotes, organizes, provides retail 18 selling space for concessionaires or other types of sellers 19 at the Illinois State Fair, DuQuoin State Fair, county fairs, 20 local fairs, art shows, flea markets and similar exhibitions 21 or events, including any transient merchant as defined by 22 Section 2 of the Transient Merchant Act of 1987, is required 23 to file a report with the Department providing the name of 24 the merchant's business, the name of the person or persons 25 engaged in merchant's business, the permanent address and 26 Illinois Retailers Occupation Tax Registration Number of the 27 merchant, the dates and location of the event and other 28 reasonable information that the Department may require. The 29 report must be filed not later than the 20th day of the month 30 next following the month during which the event with retail 31 sales was held. Any person who fails to file a report 32 required by this Section commits a business offense and is 33 subject to a fine not to exceed $250. 34 Any person engaged in the business of selling tangible -80- LRB9202158SMdv 1 personal property at retail as a concessionaire or other type 2 of seller at the Illinois State Fair, county fairs, art 3 shows, flea markets and similar exhibitions or events, or any 4 transient merchants, as defined by Section 2 of the Transient 5 Merchant Act of 1987, may be required to make a daily report 6 of the amount of such sales to the Department and to make a 7 daily payment of the full amount of tax due. The Department 8 shall impose this requirement when it finds that there is a 9 significant risk of loss of revenue to the State at such an 10 exhibition or event. Such a finding shall be based on 11 evidence that a substantial number of concessionaires or 12 other sellers who are not residents of Illinois will be 13 engaging in the business of selling tangible personal 14 property at retail at the exhibition or event, or other 15 evidence of a significant risk of loss of revenue to the 16 State. The Department shall notify concessionaires and other 17 sellers affected by the imposition of this requirement. In 18 the absence of notification by the Department, the 19 concessionaires and other sellers shall file their returns as 20 otherwise required in this Section. 21 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98; 22 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff. 23 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00; 91-901, 24 eff. 1-1-01; revised 8-30-00.) 25 Section 99. Effective date. This Act takes effect upon 26 becoming law.