Public Act 096-1355
Public Act 1355 96TH GENERAL ASSEMBLY
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Public Act 096-1355
| | HB6359 Enrolled | LRB096 20982 HLH 36826 b |
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| AN ACT concerning revenue.
| Be it enacted by the People of the State of Illinois, | represented in the General Assembly:
| Section 5. The Retailers' Occupation Tax Act is amended by | changing Section 2a as follows:
| (35 ILCS 120/2a) (from Ch. 120, par. 441a) | Sec. 2a. It is unlawful for any person to engage in the | business of
selling tangible personal property at retail in | this State without a
certificate of registration from the | Department. Application
for a certificate of registration | shall be made to the Department upon
forms furnished by it. | Each such application shall be signed and verified
and shall | state: (1) the name and social security number of the
| applicant; (2) the address of his principal place
of business; | (3) the address of the principal place of business from which
| he engages in the business of selling tangible personal | property at retail
in this State and the addresses of all other | places of business, if any
(enumerating such addresses, if any, | in a separate list attached to and
made a part of the | application), from which he engages in the business of
selling | tangible personal property at retail in this State; (4)
the
| name and address of the person or persons who will be | responsible for
filing returns and payment of taxes due under |
| this Act; (5) in the
case of
a corporation, the name, title, | and social security number of
each corporate officer; (6) in | the case of a limited liability
company, the
name, social | security number, and FEIN number of
each
manager and member; | and (7) such other information
as the Department may reasonably | require. The application shall contain
an acceptance of | responsibility signed by the person or persons who will be
| responsible for filing returns and payment of the taxes due | under this
Act. If the applicant will sell tangible personal | property at retail
through vending machines, his application to | register shall indicate the
number of vending machines to be so | operated; and thereafter, he shall
notify the Department by | January 31 of the number of vending machines which
such person | was using in his business of selling tangible personal property
| at retail on the preceding December 31. | The Department may deny a certificate of registration to | any applicant
if the owner, any partner, any manager or member | of a limited liability
company, or a corporate officer of the | applicant, is or
has been the owner, a partner, a manager or | member of a limited
liability company, or a corporate officer, | of another retailer
that is in default for moneys due under | this Act. | The Department may require an Every applicant for a | certificate of registration hereunder to shall, at
the time of | filing such application, furnish a bond from a surety company
| authorized to do business in the State of Illinois, or an |
| irrevocable
bank letter of credit or a bond signed by 2
| personal sureties who have filed, with the Department, sworn | statements
disclosing net assets equal to at least 3 times the | amount of the bond to
be required of such applicant, or a bond | secured by an assignment of a bank
account or certificate of | deposit, stocks or bonds, conditioned upon the
applicant paying | to the State of Illinois all moneys becoming due under
this Act | and under any other State tax law or municipal or county tax
| ordinance or resolution under which the certificate of | registration that is
issued to the applicant under this Act | will permit the applicant to engage
in business without | registering separately under such other law, ordinance
or | resolution. In making a determination as to whether to require | a bond or other security, the Department shall take into | consideration whether the owner, any partner, any manager or | member of a limited liability company, or a corporate officer | of the applicant is or has been the owner, a partner, a manager | or member of a limited liability company, or a corporate | officer of another retailer that is in default for moneys due | under this Act or any other tax or fee Act administered by the | Department; and whether the owner, any partner, any manager or | member of a limited liability company, or a corporate officer | of the applicant is or has been the owner, a partner, a manager | or member of a limited liability company, or a corporate | officer of another retailer whose certificate of registration | has been revoked within the previous 5 years under this Act or |
| any other tax or fee Act administered by the Department. If a | bond or other security is required, the Department shall fix | the amount of the bond or other security, taking into | consideration the amount of money expected to become due from | the applicant under this Act and under any other State tax law | or municipal or county tax ordinance or resolution under which | the certificate of registration that is issued to the applicant | under this Act will permit the applicant to engage in business | without registering separately under such other law, | ordinance, or resolution. The Department shall fix the amount | of such security in each
case, taking into consideration the | amount of money expected to become due
from the applicant under | this Act and under any other State tax law or
municipal or | county tax ordinance or resolution under which the certificate
| of registration that is issued to the applicant under this Act | will permit
the applicant to engage in business without | registering separately under
such other law, ordinance or | resolution. The amount of security required by
the Department | shall be such as, in its opinion, will protect the State of
| Illinois against failure to pay the amount which may become due | from the
applicant under this Act and under any other State tax | law or municipal or
county tax ordinance or resolution under | which the certificate of
registration that is issued to the | applicant under this Act will permit the
applicant to engage in | business without registering separately under such
other law, | ordinance or resolution, but the amount of the security |
| required
by the Department shall not exceed three times the | amount of the
applicant's average monthly tax liability, or | $50,000.00, whichever amount
is lower. | No certificate of registration under this Act shall be | issued by the
Department until the applicant provides the | Department with satisfactory
security, if required, as herein | provided for. | Upon receipt of the application for certificate of | registration in
proper form, and upon approval by the | Department of the security furnished
by the applicant, if | required, the Department shall issue to such applicant a
| certificate of registration which shall permit the person to | whom it is
issued to engage in the business of selling tangible | personal property at
retail in this State. The certificate of | registration shall be
conspicuously displayed at the place of | business which the person so
registered states in his | application to be the principal place of business
from which he | engages in the business of selling tangible personal property
| at retail in this State. | No certificate of registration issued to a taxpayer who | files returns
required by this Act on a monthly basis shall be | valid after the expiration
of 5 years from the date of its | issuance or last renewal. The expiration
date of a | sub-certificate of registration shall be that of the | certificate
of registration to which the sub-certificate | relates. A certificate of
registration shall automatically be |
| renewed, subject to revocation as
provided by this Act, for an | additional 5 years from the date of its
expiration unless | otherwise notified by the Department as provided by this
| paragraph. Where a taxpayer to whom a certificate of | registration is
issued under this Act is in default to the | State of Illinois for delinquent
returns or for moneys due
| under this Act or any other State tax law or municipal or | county ordinance
administered or enforced by the Department, | the Department shall, not less
than 120 days before the | expiration date of such certificate of
registration, give | notice to the taxpayer to whom the certificate was
issued of | the account period of the delinquent returns, the amount of
| tax,
penalty and interest due and owing from the
taxpayer, and | that the certificate of registration shall not be
automatically | renewed upon its expiration date unless the taxpayer, on or
| before the date of expiration, has filed and paid the | delinquent returns or
paid the defaulted amount in full. A
| taxpayer to whom such a notice is issued shall be deemed an | applicant for
renewal. The Department shall promulgate | regulations establishing
procedures for taxpayers who file | returns on a monthly basis but desire and
qualify to change to | a quarterly or yearly filing basis and will no longer
be | subject to renewal under this Section, and for taxpayers who | file
returns on a yearly or quarterly basis but who desire or | are required to
change to a monthly filing basis and will be | subject to renewal under
this Section. |
| The Department may in its discretion approve renewal by an | applicant
who is in default if, at the time of application for | renewal, the applicant
files all of the delinquent returns or | pays to the Department such
percentage of the defaulted amount | as may be
determined by the Department and agrees in writing to | waive all limitations
upon the Department for collection of the | remaining defaulted amount to the
Department over a period not | to exceed 5 years from the date of renewal of
the certificate; | however, no renewal application submitted by an applicant
who | is in default shall be approved if the immediately preceding | renewal by
the applicant was conditioned upon the installment | payment
agreement described in this Section. The payment | agreement herein provided
for shall be in addition to and not | in lieu of the security that may be required by
this Section of | a taxpayer who is no longer considered a prior continuous
| compliance taxpayer. The execution of the payment agreement as | provided in
this Act shall not toll the accrual of interest at | the statutory rate. | The Department may suspend a certificate of registration if | the Department finds that the person to whom the certificate of | registration has been issued knowingly sold contraband | cigarettes. | A certificate of registration issued under this Act more | than 5 years
before the effective date of this amendatory Act | of 1989 shall expire and
be subject to the renewal provisions | of this Section on the next
anniversary of the date of issuance |
| of such certificate which occurs more
than 6 months after the | effective date of this amendatory Act of 1989. A
certificate of | registration issued less than 5 years before the effective
date | of this amendatory Act of 1989 shall expire and be subject to | the
renewal provisions of this Section on the 5th anniversary | of the issuance
of the certificate. | If the person so registered states that he operates other | places of
business from which he engages in the business of | selling tangible personal
property at retail in this State, the | Department shall furnish him with a
sub-certificate of | registration for each such place of business, and the
applicant | shall display the appropriate sub-certificate of registration | at
each such place of business. All sub-certificates of | registration shall
bear the same registration number as that | appearing upon the certificate of
registration to which such | sub-certificates relate. | If the applicant will sell tangible personal property at | retail through
vending machines, the Department shall furnish | him with a sub-certificate
of registration for each such | vending machine, and the applicant shall
display the | appropriate sub-certificate of registration on each such
| vending machine by attaching the sub-certificate of | registration to a
conspicuous part of such vending machine. | Where the same person engages in 2 or more businesses of | selling
tangible personal property at retail in this State, | which businesses are
substantially different in character or |
| engaged in under different trade
names or engaged in under | other substantially dissimilar circumstances (so
that it is | more practicable, from an accounting, auditing or bookkeeping
| standpoint, for such businesses to be separately registered), | the
Department may require or permit such person (subject to | the same
requirements concerning the furnishing of security as | those that are
provided for hereinbefore in this Section as to | each application for a
certificate of registration) to apply | for and obtain a separate certificate
of registration for each | such business or for any of such businesses, under
a single | certificate of registration supplemented by related
| sub-certificates of registration. | Any person who is registered under the "Retailers' | Occupation Tax Act"
as of March 8, 1963, and who, during the | 3-year period immediately prior to
March 8, 1963, or during a | continuous 3-year period part of which passed
immediately | before and the remainder of which passes immediately after
| March 8, 1963, has been so registered continuously and who is | determined by
the Department not to have been either delinquent | or deficient in the
payment of tax liability during that period | under this Act or under any
other State tax law or municipal or | county tax ordinance or resolution
under which the certificate | of registration that is issued to the
registrant under this Act | will permit the registrant to engage in business
without | registering separately under such other law, ordinance or
| resolution, shall be considered to be a Prior Continuous |
| Compliance
taxpayer. Also any taxpayer who has, as verified by | the Department,
faithfully and continuously complied with the | condition of his bond or
other security under the provisions of | this Act for a period of 3
consecutive years shall be | considered to be a Prior Continuous Compliance
taxpayer. | Every Prior Continuous Compliance taxpayer shall be exempt | from all
requirements under this Act concerning the furnishing | of a bond or other security as a
condition precedent to his | being authorized to engage in the business of
selling tangible | personal property at retail in this State. This exemption
shall | continue for each such taxpayer until such time as he may be
| determined by the Department to be delinquent in the filing of | any returns,
or is determined by the Department (either through | the Department's
issuance of a final assessment which has | become final under the Act, or by
the taxpayer's filing of a | return which admits tax that is not paid to be
due) to be | delinquent or deficient in the paying of any tax under this Act
| or under any other State tax law or municipal or county tax | ordinance or
resolution under which the certificate of | registration that is issued to
the registrant under this Act | will permit the registrant to engage in
business without | registering separately under such other law, ordinance or
| resolution, at which time that taxpayer shall become subject to | all the
financial responsibility requirements of this Act and, | as a condition of
being allowed to continue to engage in the | business of selling tangible
personal property at retail, may |
| shall be required to post bond or other
acceptable security | with the Department covering liability which such
taxpayer may | thereafter incur. Any taxpayer who fails to pay an admitted or
| established liability under this Act may also be required to | post bond or
other acceptable security with this Department | guaranteeing the payment of
such admitted or established | liability. | No certificate of registration shall be issued to any | person who is in
default to the State of Illinois for moneys | due under this Act or under any
other State tax law or | municipal or county tax ordinance or resolution
under which the | certificate of registration that is issued to the applicant
| under this Act will permit the applicant to engage in business | without
registering separately under such other law, ordinance | or resolution. | Any person aggrieved by any decision of the Department | under this
Section may, within 20 days after notice of such | decision, protest and
request a hearing, whereupon the | Department shall give notice to such
person of the time and | place fixed for such hearing and shall hold a
hearing in | conformity with the provisions of this Act and then issue its
| final administrative decision in the matter to such person. In | the absence
of such a protest within 20 days, the Department's | decision shall become
final without any further determination | being made or notice given. | With respect to security other than bonds (upon which the |
| Department may
sue in the event of a forfeiture), if the | taxpayer fails to pay, when due,
any amount whose payment such | security guarantees, the Department shall,
after such | liability is admitted by the taxpayer or established by the
| Department through the issuance of a final assessment that has | become final
under the law, convert the security which that | taxpayer has furnished into
money for the State, after first | giving the taxpayer at least 10 days'
written notice, by | registered or certified mail, to pay the liability or
forfeit | such security to the Department. If the security consists of | stocks
or bonds or other securities which are listed on a | public exchange, the
Department shall sell such securities | through such public exchange. If
the security consists of an | irrevocable bank letter of credit, the
Department shall convert | the security in the manner provided for in the
Uniform | Commercial Code. If the security consists of a bank certificate | of
deposit, the Department shall convert the security into | money by demanding
and collecting the amount of such bank | certificate of deposit from the bank
which issued such | certificate. If the security consists of a type of stocks
or | other securities which are not listed on a public exchange, the
| Department shall sell such security to the highest and best | bidder after
giving at least 10 days' notice of the date, time | and place of the intended
sale by publication in the "State | Official Newspaper". If the Department
realizes more than the | amount of such liability from the security, plus the
expenses |
| incurred by the Department in converting the security into | money,
the Department shall pay such excess to the taxpayer who | furnished such
security, and the balance shall be paid into the | State Treasury. | The Department shall discharge any surety and shall release | and return
any security deposited, assigned, pledged or | otherwise provided to it by
a taxpayer under this Section | within 30 days after: | (1) such taxpayer becomes a Prior Continuous | Compliance taxpayer; or | (2) such taxpayer has ceased to collect receipts on | which he is required
to remit tax to the Department, has | filed a final tax return, and has paid
to the Department an | amount sufficient to discharge his remaining tax
| liability, as determined by the Department, under this Act | and under every
other State tax law or municipal or county | tax ordinance or resolution
under which the certificate of | registration issued under this Act permits
the registrant | to engage in business without registering separately under
| such other law, ordinance or resolution. The Department | shall make a final
determination of the taxpayer's | outstanding tax liability as expeditiously
as possible | after his final tax return has been filed; if the | Department
cannot make such final determination within 45 | days after receiving the
final tax return, within such | period it shall so notify the taxpayer,
stating its reasons |
| therefor. | (Source: P.A. 95-1053, eff. 1-1-10.)
| Section 10. The Transient Merchant Act of 1987 is amended | by changing Section 3 as follows:
| (225 ILCS 465/3) (from Ch. 121 1/2, par. 1653) | Sec. 3. It is a violation of this Act for any person, | either as principal
or agent, to conduct business as a | transient merchant or itinerant vendor
in this State without | first complying with the requirements of Section 2a
of the | Retailers' Occupation Tax Act by obtaining a certificate of | registration
and, if a bond or other security is required, by | posting bond or other approved security, and without having | obtained
a license under this Act. | (Source: P.A. 85-600.)
| Section 99. Effective date. This Act takes effect upon | becoming law.
|
Effective Date: 7/28/2010
|
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