Public Act 096-1388
 
SB0459 EnrolledLRB096 06500 RCE 16584 b



    AN ACT concerning revenue.

 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly: 



 
    Section 5. The Illinois Income Tax Act is amended  by adding 
Section 502.1 as follows:
 
    (35 ILCS 5/502.1 new)
    Sec. 502.1. Use tax. Beginning with taxable years ending on 
or after December 31, 2010, individual purchasers with an 
annual use tax liability that does not exceed $600 may, in lieu 
of the filing and payment requirements of Section 10 of the Use 
Tax Act, file and pay in compliance with this Section.
    Beginning with taxable years ending on or after December 
31, 2010, the Department shall print on its standard individual 
income tax form a provision indicating that if the taxpayer's 
annual individual use tax liability does not exceed $600, he or 
she may report and pay individual use tax liability at the same 
time as his or her individual income tax liability. If the 
taxpayer elects to report and pay his or her individual use tax 
liability at the same time as his or her standard individual 
income tax liability in accordance with this Section, then the 
use tax shown due on the return may be (i) treated as being due 
at the same time as the income tax obligation, (ii) assessed, 
collected, and deposited in the same manner as income taxes, 
and (iii) treated as an income tax liability for all purposes.
    The individual income tax return instructions shall 
include information explaining the tax imposed under the Use 
Tax Act and informing taxpayers how to report and pay their use 
tax obligations, including specific information on how to 
report and pay individual use tax at the same time as the 
individual income tax return is filed.
    This Section shall not apply to any amended return.
 
    Section 10. The Use Tax Act is amended  by changing Section 
10 and  by adding Section 10.5 as follows:
 
    (35 ILCS 105/10)  (from Ch. 120, par. 439.10)
    Sec. 10. Except as to motor vehicles, aircraft, watercraft, 
and
trailers, and except as to cigarettes as defined in the 
Cigarette Use Tax Act, when tangible personal
property is

purchased from a retailer for use in this State by a purchaser

who did not pay the tax imposed by this Act to the retailer, 
and who does not
file returns with the Department as a retailer 
under Section 9 of this
Act, such purchaser (by the last day of 
the month following the calendar
month in which such purchaser 
makes any payment upon the selling price of
such property) 
shall, except as otherwise provided in this Section, file
a 
return with the Department and pay the tax upon that portion of 
the
selling price so paid by the purchaser during the preceding 
calendar month.
When tangible personal property, including but 
not limited to motor vehicles
and aircraft, is purchased by a 
lessor, under a lease for
one year or longer, executed or in 
effect at the time of purchase to an
interstate carrier for 
hire, who did not pay the tax imposed by this Act to the

retailer, such lessor (by the last day of the month following 
the calendar
month in which such property reverts to the use of 
such lessor) shall file
a return with the Department and pay 
the tax upon the fair market value of
such property on the date 
of such reversion.
However, in determining the fair market 
value at the time of reversion, the
fair market value of such 
property shall not exceed the original purchase price
of the 
property that was paid by the lessor at the time of purchase.

Such return shall be filed on
a form prescribed by the 
Department and shall contain such information as
the Department 
may reasonably require.  Such return and payment from the

purchaser shall be submitted to the Department sooner than the 
last day of
the month after the month in which the purchase is 
made to the extent that
that may be necessary in order to 
secure the title to a motor vehicle or
the certificate of 
registration for an aircraft. However, except as to motor

vehicles and aircraft, and except as to cigarettes as defined 
in the Cigarette Use Tax Act, if the
purchaser's annual use tax 
liability does not exceed $600, the purchaser
may file the 
return on an annual basis on or before April 15th of the year

following the year use tax liability was incurred. Individual 
purchasers with an annual use tax liability that does not 
exceed $600 may, in lieu of the filing and payment requirements 
in this Section, file and pay in compliance with Section 502.1 
of the Illinois Income Tax Act. 
    If cigarettes, as defined in the Cigarette Use Tax Act, are 
purchased from a retailer for use in this State by a purchaser 
who did not pay the tax imposed by this Act to the retailer, 
and who does not file returns with the Department as a retailer 
under Section 9 of this Act, such purchaser must, within 30 
days after acquiring the cigarettes, file a return with the 
Department and pay the tax upon that portion of the selling 
price so paid by the purchaser for the cigarettes. 
    In addition with respect to motor vehicles,
aircraft, 
watercraft, and trailers, a purchaser of such tangible personal

property for use in this
State, who purchases such tangible 
personal property from an out-of-state
retailer, shall file 
with the Department, upon a form to be prescribed and
supplied 
by the Department, a return for each such item of tangible

personal property purchased, except that if, in the same 
transaction, (i) a
purchaser of motor vehicles,
aircraft, 
watercraft, or trailers who is a retailer of motor vehicles,

aircraft, watercraft, or trailers purchases more than one motor 
vehicle,
aircraft, watercraft, or trailer for the purpose of 
resale or (ii) a purchaser
of motor vehicles, aircraft, 
watercraft, or trailers purchases more
than one motor vehicle, 
aircraft, watercraft, or trailer for use as qualifying
rolling 
stock as provided in Section 3-55 of this Act, then the 
purchaser may
report the purchase of all motor vehicles, 
aircraft, watercraft, or trailers
involved in that transaction 
to the Department on a single return prescribed by
the 
Department.  Such return in the case of motor vehicles and

aircraft must show the name and address of the seller, the 
name, address of
purchaser, the amount of the selling price 
including the amount allowed by
the retailer for traded in 
property, if any; the amount allowed by the
retailer for the 
traded-in tangible personal property, if any, to the
extent to 
which Section 2 of this Act allows an exemption for the value 
of
traded-in property; the balance payable after deducting such 
trade-in
allowance from the total selling price; the amount of 
tax due from the
purchaser with respect to such transaction; 
the amount of tax collected
from the purchaser by the retailer 
on such transaction (or satisfactory
evidence that such tax is 
not due in that particular instance if that is
claimed to be 
the fact); the place and date of the sale, a sufficient

identification of the property sold, and such other information 
as the
Department may reasonably require.
    Such return shall be filed not later than 30 days after 
such motor
vehicle or aircraft is brought into this State for 
use.
    For purposes of this Section, "watercraft" means a Class 2, 
Class 3, or
Class 4 watercraft as defined in Section 3-2 of the 
Boat Registration and
Safety Act, a personal watercraft, or any 
boat equipped with an inboard
motor.
    The return and tax remittance or proof of exemption from 
the tax that is
imposed by this Act may be transmitted to the 
Department by way of the
State agency with which, or State 
officer with whom, the tangible personal
property must be 
titled or registered (if titling or registration is
required) 
if the Department and such agency or State officer determine 
that
this procedure will expedite the processing of 
applications for title or
registration.
    With each such return, the purchaser shall remit the proper 
amount of tax
due (or shall submit satisfactory evidence that 
the sale is not taxable if
that is the case), to the Department 
or its agents, whereupon the
Department shall issue, in the 
purchaser's name, a tax receipt (or a
certificate of exemption 
if the Department is satisfied that the particular
sale is tax 
exempt) which such purchaser may submit to the agency with

which, or State officer with whom, he must title or register 
the tangible
personal property that is involved (if titling or 
registration is required)
in support of such purchaser's 
application for an Illinois certificate or
other evidence of 
title or registration to such tangible personal property.
    When a purchaser pays a tax imposed by this Act directly to 
the Department,
the Department (upon request therefor from such 
purchaser) shall issue an
appropriate receipt to such purchaser 
showing that he has paid such tax to
the Department.  Such 
receipt shall be sufficient to relieve the purchaser
from 
further liability for the tax to which such receipt may refer.
    A user who is liable to pay use tax directly to the 
Department only
occasionally and not on a frequently recurring 
basis, and who is not
required to file returns with the 
Department as a retailer under Section 9
of this Act, or under 
the "Retailers' Occupation Tax Act", or as a
registrant with 
the Department under the "Service Occupation Tax Act" or
the 
"Service Use Tax Act", need not register with the Department.

However, if such a user has a frequently recurring direct use 
tax liability
to pay to the Department, such user shall be 
required to register with the
Department on forms prescribed by 
the Department and to obtain and display
a certificate of 
registration from the Department.  In that event, all of
the 
provisions of Section 9 of this Act concerning the filing of 
regular
monthly, quarterly or annual tax returns and all of the 
provisions of
Section 2a of the "Retailers' Occupation Tax Act" 
concerning the
requirements for registrants to post bond or 
other security with the
Department, as the provisions of such 
sections now exist or may hereafter
be amended, shall apply to 
such users to the same extent as if such
provisions were 
included herein.
(Source: P.A. 96-520, eff. 8-14-09; revised 10-30-09.)
 
    (35 ILCS 105/10.5 new)
    Sec. 10.5. Individual use tax amnesty. The Department shall 
establish an amnesty program for all individual taxpayers owing 
any tax imposed under this Act for their purchases of tangible 
personal property from a retailer for use in this State 
(eligible taxes). The amnesty program shall be for a period 
from January 1, 2011 through October 15, 2011. The amnesty 
program shall provide that, upon payment by an individual 
taxpayer of all eligible taxes due from that taxpayer under 
this Act for any taxable period ending after June 30, 2004 and 
prior to January 1, 2011, the Department shall abate and not 
seek to collect any interest or penalties that may be 
applicable and the Department shall not seek civil or criminal 
prosecution for any taxpayer for these taxes for the period of 
time for which amnesty has been granted to the taxpayer. 
Failure to pay all eligible taxes due to the State for a 
taxable period shall invalidate any amnesty granted under this 
Section. Amnesty shall be granted only if all amnesty 
conditions are satisfied by the taxpayer.
    Amnesty shall not be granted to business taxpayers. Amnesty 
shall not be granted to taxpayers who are a party to any 
criminal investigation or to any civil or criminal litigation 
that is pending in any circuit court or appellate court or the 
Supreme Court of this State for nonpayment, delinquency, or 
fraud in relation to eligible taxes under this Act.  Amnesty 
shall not be granted to any taxpayer who is under audit for 
eligible taxes or who is contacted in writing by the Department 
concerning eligible taxes prior to the taxpayer reporting and 
paying the eligible taxes. 
    Voluntary payments made under this Section shall be made by 
cash, check, guaranteed remittance, or ACH debit. 
 

    Section 99. Effective date. This Act takes effect upon 
becoming law.