HB4234eng 93RD GENERAL ASSEMBLY

HB4234 Engrossed LRB093 16236 SJM 41870 b

AN ACT concerning taxes.

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

4		Section 5. The Use Tax Act is amended by changing Section
5		3-85 as follows:
6		(35 ILCS 105/3-85)
7		Sec. 3-85. Manufacturer's Purchase Credit. For purchases
8		of machinery and equipment made on and after January 1, 1995
9		and through June 30, 2003, a purchaser of manufacturing
10		machinery and equipment that qualifies for the exemption
11		provided by paragraph (18) of Section 3-5 of this Act earns a
12		credit in an amount equal to a fixed percentage of the tax
13		which would have been incurred under this Act on those
14		purchases. For purchases of graphic arts machinery and
15		equipment made on or after July 1, 1996 and through June 30,
16		2003, a purchaser of graphic arts machinery and equipment that
17		qualifies for the exemption provided by paragraph (6) of
18		Section 3-5 of this Act earns a credit in an amount equal to a
19		fixed percentage of the tax that would have been incurred under
20		this Act on those purchases. The credit earned for purchases of
21		manufacturing machinery and equipment or graphic arts
22		machinery and equipment shall be referred to as the
23		Manufacturer's Purchase Credit. A graphic arts producer is a
24		person engaged in graphic arts production as defined in Section
25		2-30 of the Retailers' Occupation Tax Act. Beginning July 1,
26		1996, all references in this Section to manufacturers or
27		manufacturing shall also be deemed to refer to graphic arts
28		producers or graphic arts production.
29		The amount of credit shall be a percentage of the tax that
30		would have been incurred on the purchase of manufacturing
31		machinery and equipment or graphic arts machinery and equipment
32		if the exemptions provided by paragraph (6) or paragraph (18)

1		of Section 3-5 of this Act had not been applicable. The
2		percentage shall be as follows:
3		(1) 15% for purchases made on or before June 30, 1995.
4		(2) 25% for purchases made after June 30, 1995, and on
5		or before June 30, 1996.
6		(3) 40% for purchases made after June 30, 1996, and on
7		or before June 30, 1997.
8		(4) 50% for purchases made on or after July 1, 1997.
9		A purchaser of production related tangible personal
10		property desiring to use the Manufacturer's Purchase Credit
11		shall certify to the seller prior to October 1, 2005 2003 that
12		the purchaser is satisfying all or part of the liability under
13		the Use Tax Act or the Service Use Tax Act that is due on the
14		purchase of the production related tangible personal property
15		by use of Manufacturer's Purchase Credit. The Manufacturer's
16		Purchase Credit certification must be dated and shall include
17		the name and address of the purchaser, the purchaser's
18		registration number, if registered, the credit being applied,
19		and a statement that the State Use Tax or Service Use Tax
20		liability is being satisfied with the manufacturer's or graphic
21		arts producer's accumulated purchase credit. Certification may
22		be incorporated into the manufacturer's or graphic arts
23		producer's purchase order. Manufacturer's Purchase Credit
24		certification provided by the manufacturer or graphic arts
25		producer prior to October 1, 2005 2003 may be used to satisfy
26		the retailer's or serviceman's liability under the Retailers'
27		Occupation Tax Act or Service Occupation Tax Act for the credit
28		claimed, not to exceed 6.25% of the receipts subject to tax
29		from a qualifying purchase, but only if the retailer or
30		serviceman reports the Manufacturer's Purchase Credit claimed
31		as required by the Department. A Manufacturer's Purchase Credit
32		reported on any original or amended return filed under this Act
33		after October 20, 2005 2003 shall be disallowed. The
34		Manufacturer's Purchase Credit earned by purchase of exempt
35		manufacturing machinery and equipment or graphic arts
36		machinery and equipment is a non-transferable credit. A

1		manufacturer or graphic arts producer that enters into a
2		contract involving the installation of tangible personal
3		property into real estate within a manufacturing or graphic
4		arts production facility may, prior to October 1, 2005 2003,
5		authorize a construction contractor to utilize credit
6		accumulated by the manufacturer or graphic arts producer to
7		purchase the tangible personal property. A manufacturer or
8		graphic arts producer intending to use accumulated credit to
9		purchase such tangible personal property shall execute a
10		written contract authorizing the contractor to utilize a
11		specified dollar amount of credit. The contractor shall
12		furnish, prior to October 1, 2005 2003, the supplier with the
13		manufacturer's or graphic arts producer's name, registration
14		or resale number, and a statement that a specific amount of the
15		Use Tax or Service Use Tax liability, not to exceed 6.25% of
16		the selling price, is being satisfied with the credit. The
17		manufacturer or graphic arts producer shall remain liable to
18		timely report all information required by the annual Report of
19		Manufacturer's Purchase Credit Used for all credit utilized by
20		a construction contractor.
21		The Manufacturer's Purchase Credit may be used to satisfy
22		liability under the Use Tax Act or the Service Use Tax Act due
23		on the purchase of production related tangible personal
24		property (including purchases by a manufacturer, by a graphic
25		arts producer, or by a lessor who rents or leases the use of
26		the property to a manufacturer or graphic arts producer) that
27		does not otherwise qualify for the manufacturing machinery and
28		equipment exemption or the graphic arts machinery and equipment
29		exemption. "Production related tangible personal property"
30		means (i) all tangible personal property used or consumed by
31		the purchaser in a manufacturing facility in which a
32		manufacturing process described in Section 2-45 of the
33		Retailers' Occupation Tax Act takes place, including tangible
34		personal property purchased for incorporation into real estate
35		within a manufacturing facility and including, but not limited
36		to, tangible personal property used or consumed in activities

1		such as preproduction material handling, receiving, quality
2		control, inventory control, storage, staging, and packaging
3		for shipping and transportation purposes; (ii) all tangible
4		personal property used or consumed by the purchaser in a
5		graphic arts facility in which graphic arts production as
6		described in Section 2-30 of the Retailers' Occupation Tax Act
7		takes place, including tangible personal property purchased
8		for incorporation into real estate within a graphic arts
9		facility and including, but not limited to, all tangible
10		personal property used or consumed in activities such as
11		graphic arts preliminary or pre-press production,
12		pre-production material handling, receiving, quality control,
13		inventory control, storage, staging, sorting, labeling,
14		mailing, tying, wrapping, and packaging; and (iii) all tangible
15		personal property used or consumed by the purchaser for
16		research and development. "Production related tangible
17		personal property" does not include (i) tangible personal
18		property used, within or without a manufacturing facility, in
19		sales, purchasing, accounting, fiscal management, marketing,
20		personnel recruitment or selection, or landscaping or (ii)
21		tangible personal property required to be titled or registered
22		with a department, agency, or unit of federal, state, or local
23		government. The Manufacturer's Purchase Credit may be used,
24		prior to October 1, 2005 2003, to satisfy the tax arising
25		either from the purchase of machinery and equipment on or after
26		January 1, 1995 for which the exemption provided by paragraph
27		(18) of Section 3-5 of this Act was erroneously claimed, or the
28		purchase of machinery and equipment on or after July 1, 1996
29		for which the exemption provided by paragraph (6) of Section
30		3-5 of this Act was erroneously claimed, but not in
31		satisfaction of penalty, if any, and interest for failure to
32		pay the tax when due. A purchaser of production related
33		tangible personal property who is required to pay Illinois Use
34		Tax or Service Use Tax on the purchase directly to the
35		Department may, prior to October 1, 2005 2003, utilize the
36		Manufacturer's Purchase Credit in satisfaction of the tax

1		arising from that purchase, but not in satisfaction of penalty
2		and interest. A purchaser who uses the Manufacturer's Purchase
3		Credit to purchase property which is later determined not to be
4		production related tangible personal property may be liable for
5		tax, penalty, and interest on the purchase of that property as
6		of the date of purchase but shall be entitled to use the
7		disallowed Manufacturer's Purchase Credit, so long as it has
8		not expired and is used prior to October 1, 2005 2003, on
9		qualifying purchases of production related tangible personal
10		property not previously subject to credit usage. The
11		Manufacturer's Purchase Credit earned by a manufacturer or
12		graphic arts producer expires the last day of the second
13		calendar year following the calendar year in which the credit
14		arose. No Manufacturer's Purchase Credit may be used after
15		September 30, 2005 2003 regardless of when that credit was
16		earned.
17		A purchaser earning Manufacturer's Purchase Credit shall
18		sign and file an annual Report of Manufacturer's Purchase
19		Credit Earned for each calendar year no later than the last day
20		of the sixth month following the calendar year in which a
21		Manufacturer's Purchase Credit is earned. A Report of
22		Manufacturer's Purchase Credit Earned shall be filed on forms
23		as prescribed or approved by the Department and shall state,
24		for each month of the calendar year: (i) the total purchase
25		price of all purchases of exempt manufacturing or graphic arts
26		machinery on which the credit was earned; (ii) the total State
27		Use Tax or Service Use Tax which would have been due on those
28		items; (iii) the percentage used to calculate the amount of
29		credit earned; (iv) the amount of credit earned; and (v) such
30		other information as the Department may reasonably require. A
31		purchaser earning Manufacturer's Purchase Credit shall
32		maintain records which identify, as to each purchase of
33		manufacturing or graphic arts machinery and equipment on which
34		the purchaser earned Manufacturer's Purchase Credit, the
35		vendor (including, if applicable, either the vendor's
36		registration number or Federal Employer Identification

1		Number), the purchase price, and the amount of Manufacturer's
2		Purchase Credit earned on each purchase.
3		A purchaser using Manufacturer's Purchase Credit shall
4		sign and file an annual Report of Manufacturer's Purchase
5		Credit Used for each calendar year no later than the last day
6		of the sixth month following the calendar year in which a
7		Manufacturer's Purchase Credit is used. A Report of
8		Manufacturer's Purchase Credit Used shall be filed on forms as
9		prescribed or approved by the Department and shall state, for
10		each month of the calendar year: (i) the total purchase price
11		of production related tangible personal property purchased
12		from Illinois suppliers; (ii) the total purchase price of
13		production related tangible personal property purchased from
14		out-of-state suppliers; (iii) the total amount of credit used
15		during such month; and (iv) such other information as the
16		Department may reasonably require. A purchaser using
17		Manufacturer's Purchase Credit shall maintain records that
18		identify, as to each purchase of production related tangible
19		personal property on which the purchaser used Manufacturer's
20		Purchase Credit, the vendor (including, if applicable, either
21		the vendor's registration number or Federal Employer
22		Identification Number), the purchase price, and the amount of
23		Manufacturer's Purchase Credit used on each purchase.
24		No annual report shall be filed before May 1, 1996 or after
25		June 30, 2004. A purchaser that fails to file an annual Report
26		of Manufacturer's Purchase Credit Earned or an annual Report of
27		Manufacturer's Purchase Credit Used by the last day of the
28		sixth month following the end of the calendar year shall
29		forfeit all Manufacturer's Purchase Credit for that calendar
30		year unless it establishes that its failure to file was due to
31		reasonable cause. Manufacturer's Purchase Credit reports may
32		be amended to report and claim credit on qualifying purchases
33		not previously reported at any time before the credit would
34		have expired, unless both the Department and the purchaser have
35		agreed to an extension of the statute of limitations for the
36		issuance of a notice of tax liability as provided in Section 4

1		of the Retailers' Occupation Tax Act. If the time for
2		assessment or refund has been extended, then amended reports
3		for a calendar year may be filed at any time prior to the date
4		to which the statute of limitations for the calendar year or
5		portion thereof has been extended. No Manufacturer's Purchase
6		Credit report filed with the Department for periods prior to
7		January 1, 1995 shall be approved. Manufacturer's Purchase
8		Credit claimed on an amended report may be used, until October
9		1, 2005 2003, to satisfy tax liability under the Use Tax Act or
10		the Service Use Tax Act (i) on qualifying purchases of
11		production related tangible personal property made after the
12		date the amended report is filed or (ii) assessed by the
13		Department on qualifying purchases of production related
14		tangible personal property made in the case of manufacturers on
15		or after January 1, 1995, or in the case of graphic arts
16		producers on or after July 1, 1996.
17		If the purchaser is not the manufacturer or a graphic arts
18		producer, but rents or leases the use of the property to a
19		manufacturer or graphic arts producer, the purchaser may earn,
20		report, and use Manufacturer's Purchase Credit in the same
21		manner as a manufacturer or graphic arts producer.
22		A purchaser shall not be entitled to any Manufacturer's
23		Purchase Credit for a purchase that is required to be reported
24		and is not timely reported as provided in this Section. A
25		purchaser remains liable for (i) any tax that was satisfied by
26		use of a Manufacturer's Purchase Credit, as of the date of
27		purchase, if that use is not timely reported as required in
28		this Section and (ii) for any applicable penalties and interest
29		for failing to pay the tax when due. No Manufacturer's Purchase
30		Credit may be used after September 30, 2005 2003 to satisfy any
31		tax liability imposed under this Act, including any audit
32		liability.
33		(Source: P.A. 93-24, eff. 6-20-03.)

34		Section 10. The Service Use Tax Act is amended by changing
35		Section 3-70 as follows:

1		(35 ILCS 110/3-70)
2		Sec. 3-70. Manufacturer's Purchase Credit. For purchases
3		of machinery and equipment made on and after January 1, 1995
4		and through June 30, 2003, a purchaser of manufacturing
5		machinery and equipment that qualifies for the exemption
6		provided by Section 2 of this Act earns a credit in an amount
7		equal to a fixed percentage of the tax which would have been
8		incurred under this Act on those purchases. For purchases of
9		graphic arts machinery and equipment made on or after July 1,
10		1996 and through June 30, 2003, a purchase of graphic arts
11		machinery and equipment that qualifies for the exemption
12		provided by paragraph (5) of Section 3-5 of this Act earns a
13		credit in an amount equal to a fixed percentage of the tax that
14		would have been incurred under this Act on those purchases. The
15		credit earned for the purchase of manufacturing machinery and
16		equipment and graphic arts machinery and equipment shall be
17		referred to as the Manufacturer's Purchase Credit. A graphic
18		arts producer is a person engaged in graphic arts production as
19		defined in Section 3-30 of the Service Occupation Tax Act.
20		Beginning July 1, 1996, all references in this Section to
21		manufacturers or manufacturing shall also refer to graphic arts
22		producers or graphic arts production.
23		The amount of credit shall be a percentage of the tax that
24		would have been incurred on the purchase of the manufacturing
25		machinery and equipment or graphic arts machinery and equipment
26		if the exemptions provided by Section 2 or paragraph (5) of
27		Section 3-5 of this Act had not been applicable.
28		All purchases prior to October 1, 2003 of manufacturing
29		machinery and equipment and graphic arts machinery and
30		equipment that qualify for the exemptions provided by paragraph
31		(5) of Section 2 or paragraph (5) of Section 3-5 of this Act
32		qualify for the credit without regard to whether the serviceman
33		elected, or could have elected, under paragraph (7) of Section
34		2 of this Act to exclude the transaction from this Act. If the
35		serviceman's billing to the service customer separately states

1		a selling price for the exempt manufacturing machinery or
2		equipment or the exempt graphic arts machinery and equipment,
3		the credit shall be calculated, as otherwise provided herein,
4		based on that selling price. If the serviceman's billing does
5		not separately state a selling price for the exempt
6		manufacturing machinery and equipment or the exempt graphic
7		arts machinery and equipment, the credit shall be calculated,
8		as otherwise provided herein, based on 50% of the entire
9		billing. If the serviceman contracts to design, develop, and
10		produce special order manufacturing machinery and equipment or
11		special order graphic arts machinery and equipment, and the
12		billing does not separately state a selling price for such
13		special order machinery and equipment, the credit shall be
14		calculated, as otherwise provided herein, based on 50% of the
15		entire billing. The provisions of this paragraph are effective
16		for purchases made on or after January 1, 1995.
17		The percentage shall be as follows:
18		(1) 15% for purchases made on or before June 30, 1995.
19		(2) 25% for purchases made after June 30, 1995, and on
20		or before June 30, 1996.
21		(3) 40% for purchases made after June 30, 1996, and on
22		or before June 30, 1997.
23		(4) 50% for purchases made on or after July 1, 1997.
24		A purchaser of production related tangible personal
25		property desiring to use the Manufacturer's Purchase Credit
26		shall certify to the seller prior to October 1, 2005 2003 that
27		the purchaser is satisfying all or part of the liability under
28		the Use Tax Act or the Service Use Tax Act that is due on the
29		purchase of the production related tangible personal property
30		by use of a Manufacturer's Purchase Credit. The Manufacturer's
31		Purchase Credit certification must be dated and shall include
32		the name and address of the purchaser, the purchaser's
33		registration number, if registered, the credit being applied,
34		and a statement that the State Use Tax or Service Use Tax
35		liability is being satisfied with the manufacturer's or graphic
36		arts producer's accumulated purchase credit. Certification may

1		be incorporated into the manufacturer's or graphic arts
2		producer's purchase order. Manufacturer's Purchase Credit
3		certification provided by the manufacturer or graphic arts
4		producer prior to October 1, 2005 2003 may be used to satisfy
5		the retailer's or serviceman's liability under the Retailers'
6		Occupation Tax Act or Service Occupation Tax Act for the credit
7		claimed, not to exceed 6.25% of the receipts subject to tax
8		from a qualifying purchase, but only if the retailer or
9		serviceman reports the Manufacturer's Purchase Credit claimed
10		as required by the Department. A Manufacturer's Purchase Credit
11		reported on any original or amended return filed under this Act
12		after October 20, 2005 2003 shall be disallowed. The
13		Manufacturer's Purchase Credit earned by purchase of exempt
14		manufacturing machinery and equipment or graphic arts
15		machinery and equipment is a non-transferable credit. A
16		manufacturer or graphic arts producer that enters into a
17		contract involving the installation of tangible personal
18		property into real estate within a manufacturing or graphic
19		arts production facility, prior to October 1, 2005 2003, may
20		authorize a construction contractor to utilize credit
21		accumulated by the manufacturer or graphic arts producer to
22		purchase the tangible personal property. A manufacturer or
23		graphic arts producer intending to use accumulated credit to
24		purchase such tangible personal property shall execute a
25		written contract authorizing the contractor to utilize a
26		specified dollar amount of credit. The contractor shall
27		furnish, prior to October 1, 2005 2003, the supplier with the
28		manufacturer's or graphic arts producer's name, registration
29		or resale number, and a statement that a specific amount of the
30		Use Tax or Service Use Tax liability, not to exceed 6.25% of
31		the selling price, is being satisfied with the credit. The
32		manufacturer or graphic arts producer shall remain liable to
33		timely report all information required by the annual Report of
34		Manufacturer's Purchase Credit Used for credit utilized by a
35		construction contractor.
36		The Manufacturer's Purchase Credit may be used to satisfy

1		liability under the Use Tax Act or the Service Use Tax Act due
2		on the purchase of production related tangible personal
3		property (including purchases by a manufacturer, by a graphic
4		arts producer, or a lessor who rents or leases the use of the
5		property to a manufacturer or graphic arts producer) that does
6		not otherwise qualify for the manufacturing machinery and
7		equipment exemption or the graphic arts machinery and equipment
8		exemption. "Production related tangible personal property"
9		means (i) all tangible personal property used or consumed by
10		the purchaser in a manufacturing facility in which a
11		manufacturing process described in Section 2-45 of the
12		Retailers' Occupation Tax Act takes place, including tangible
13		personal property purchased for incorporation into real estate
14		within a manufacturing facility and including, but not limited
15		to, tangible personal property used or consumed in activities
16		such as pre-production material handling, receiving, quality
17		control, inventory control, storage, staging, and packaging
18		for shipping and transportation purposes; (ii) all tangible
19		personal property used or consumed by the purchaser in a
20		graphic arts facility in which graphic arts production as
21		described in Section 2-30 of the Retailers' Occupation Tax Act
22		takes place, including tangible personal property purchased
23		for incorporation into real estate within a graphic arts
24		facility and including, but not limited to, all tangible
25		personal property used or consumed in activities such as
26		graphic arts preliminary or pre-press production,
27		pre-production material handling, receiving, quality control,
28		inventory control, storage, staging, sorting, labeling,
29		mailing, tying, wrapping, and packaging; and (iii) all tangible
30		personal property used or consumed by the purchaser for
31		research and development. "Production related tangible
32		personal property" does not include (i) tangible personal
33		property used, within or without a manufacturing or graphic
34		arts facility, in sales, purchasing, accounting, fiscal
35		management, marketing, personnel recruitment or selection, or
36		landscaping or (ii) tangible personal property required to be

1		titled or registered with a department, agency, or unit of
2		federal, state, or local government. The Manufacturer's
3		Purchase Credit may be used, prior to October 1, 2005 2003, to
4		satisfy the tax arising either from the purchase of machinery
5		and equipment on or after January 1, 1995 for which the
6		manufacturing machinery and equipment exemption provided by
7		Section 2 of this Act was erroneously claimed, or the purchase
8		of machinery and equipment on or after July 1, 1996 for which
9		the exemption provided by paragraph (5) of Section 3-5 of this
10		Act was erroneously claimed, but not in satisfaction of
11		penalty, if any, and interest for failure to pay the tax when
12		due. A purchaser of production related tangible personal
13		property who is required to pay Illinois Use Tax or Service Use
14		Tax on the purchase directly to the Department may, prior to
15		October 1, 2005 2003, utilize the Manufacturer's Purchase
16		Credit in satisfaction of the tax arising from that purchase,
17		but not in satisfaction of penalty and interest. A purchaser
18		who uses the Manufacturer's Purchase Credit to purchase
19		property which is later determined not to be production related
20		tangible personal property may be liable for tax, penalty, and
21		interest on the purchase of that property as of the date of
22		purchase but shall be entitled to use the disallowed
23		Manufacturer's Purchase Credit, so long as it has not expired
24		and is used prior to October 1, 2005 2003, on qualifying
25		purchases of production related tangible personal property not
26		previously subject to credit usage. The Manufacturer's
27		Purchase Credit earned by a manufacturer or graphic arts
28		producer expires the last day of the second calendar year
29		following the calendar year in which the credit arose. No
30		Manufacturer's Purchase Credit may be used after September 30,
31		2005 2003 regardless of when that credit was earned.
32		A purchaser earning Manufacturer's Purchase Credit shall
33		sign and file an annual Report of Manufacturer's Purchase
34		Credit Earned for each calendar year no later than the last day
35		of the sixth month following the calendar year in which a
36		Manufacturer's Purchase Credit is earned. A Report of

1		Manufacturer's Purchase Credit Earned shall be filed on forms
2		as prescribed or approved by the Department and shall state,
3		for each month of the calendar year: (i) the total purchase
4		price of all purchases of exempt manufacturing or graphic arts
5		machinery on which the credit was earned; (ii) the total State
6		Use Tax or Service Use Tax which would have been due on those
7		items; (iii) the percentage used to calculate the amount of
8		credit earned; (iv) the amount of credit earned; and (v) such
9		other information as the Department may reasonably require. A
10		purchaser earning Manufacturer's Purchase Credit shall
11		maintain records which identify, as to each purchase of
12		manufacturing or graphic arts machinery and equipment on which
13		the purchaser earned Manufacturer's Purchase Credit, the
14		vendor (including, if applicable, either the vendor's
15		registration number or Federal Employer Identification
16		Number), the purchase price, and the amount of Manufacturer's
17		Purchase Credit earned on each purchase.
18		A purchaser using Manufacturer's Purchase Credit shall
19		sign and file an annual Report of Manufacturer's Purchase
20		Credit Used for each calendar year no later than the last day
21		of the sixth month following the calendar year in which a
22		Manufacturer's Purchase Credit is used. A Report of
23		Manufacturer's Purchase Credit Used shall be filed on forms as
24		prescribed or approved by the Department and shall state, for
25		each month of the calendar year: (i) the total purchase price
26		of production related tangible personal property purchased
27		from Illinois suppliers; (ii) the total purchase price of
28		production related tangible personal property purchased from
29		out-of-state suppliers; (iii) the total amount of credit used
30		during such month; and (iv) such other information as the
31		Department may reasonably require. A purchaser using
32		Manufacturer's Purchase Credit shall maintain records that
33		identify, as to each purchase of production related tangible
34		personal property on which the purchaser used Manufacturer's
35		Purchase Credit, the vendor (including, if applicable, either
36		the vendor's registration number or Federal Employer

1		Identification Number), the purchase price, and the amount of
2		Manufacturer's Purchase Credit used on each purchase.
3		No annual report shall be filed before May 1, 1996 or after
4		June 30, 2004. A purchaser that fails to file an annual Report
5		of Manufacturer's Purchase Credit Earned or an annual Report of
6		Manufacturer's Purchase Credit Used by the last day of the
7		sixth month following the end of the calendar year shall
8		forfeit all Manufacturer's Purchase Credit for that calendar
9		year unless it establishes that its failure to file was due to
10		reasonable cause. Manufacturer's Purchase Credit reports may
11		be amended to report and claim credit on qualifying purchases
12		not previously reported at any time before the credit would
13		have expired, unless both the Department and the purchaser have
14		agreed to an extension of the statute of limitations for the
15		issuance of a notice of tax liability as provided in Section 4
16		of the Retailers' Occupation Tax Act. If the time for
17		assessment or refund has been extended, then amended reports
18		for a calendar year may be filed at any time prior to the date
19		to which the statute of limitations for the calendar year or
20		portion thereof has been extended. No Manufacturer's Purchase
21		Credit report filed with the Department for periods prior to
22		January 1, 1995 shall be approved. Manufacturer's Purchase
23		Credit claimed on an amended report may be used, prior to
24		October 1, 2005 2003, to satisfy tax liability under the Use
25		Tax Act or the Service Use Tax Act (i) on qualifying purchases
26		of production related tangible personal property made after the
27		date the amended report is filed or (ii) assessed by the
28		Department on qualifying purchases of production related
29		tangible personal property made in the case of manufacturers on
30		or after January 1, 1995, or in the case of graphic arts
31		producers on or after July 1, 1996.
32		If the purchaser is not the manufacturer or a graphic arts
33		producer, but rents or leases the use of the property to a
34		manufacturer or a graphic arts producer, the purchaser may
35		earn, report, and use Manufacturer's Purchase Credit in the
36		same manner as a manufacturer or graphic arts producer.

1		A purchaser shall not be entitled to any Manufacturer's
2		Purchase Credit for a purchase that is required to be reported
3		and is not timely reported as provided in this Section. A
4		purchaser remains liable for (i) any tax that was satisfied by
5		use of a Manufacturer's Purchase Credit, as of the date of
6		purchase, if that use is not timely reported as required in
7		this Section and (ii) for any applicable penalties and interest
8		for failing to pay the tax when due. No Manufacturer's Purchase
9		Credit may be used after September 30, 2005 2003 to satisfy any
10		tax liability imposed under this Act, including any audit
11		liability.
12		(Source: P.A. 93-24, eff. 6-20-03.)

13		Section 15. The Service Occupation Tax Act is amended by
14		changing Section 9 as follows:
15		(35 ILCS 115/9) (from Ch. 120, par. 439.109)
16		Sec. 9. Each serviceman required or authorized to collect
17		the tax herein imposed shall pay to the Department the amount
18		of such tax at the time when he is required to file his return
19		for the period during which such tax was collectible, less a
20		discount of 2.1% prior to January 1, 1990, and 1.75% on and
21		after January 1, 1990, or $5 per calendar year, whichever is
22		greater, which is allowed to reimburse the serviceman for
23		expenses incurred in collecting the tax, keeping records,
24		preparing and filing returns, remitting the tax and supplying
25		data to the Department on request.
26		Where such tangible personal property is sold under a
27		conditional sales contract, or under any other form of sale
28		wherein the payment of the principal sum, or a part thereof, is
29		extended beyond the close of the period for which the return is
30		filed, the serviceman, in collecting the tax may collect, for
31		each tax return period, only the tax applicable to the part of
32		the selling price actually received during such tax return
33		period.
34		Except as provided hereinafter in this Section, on or

1		before the twentieth day of each calendar month, such
2		serviceman shall file a return for the preceding calendar month
3		in accordance with reasonable rules and regulations to be
4		promulgated by the Department of Revenue. Such return shall be
5		filed on a form prescribed by the Department and shall contain
6		such information as the Department may reasonably require.
7		The Department may require returns to be filed on a
8		quarterly basis. If so required, a return for each calendar
9		quarter shall be filed on or before the twentieth day of the
10		calendar month following the end of such calendar quarter. The
11		taxpayer shall also file a return with the Department for each
12		of the first two months of each calendar quarter, on or before
13		the twentieth day of the following calendar month, stating:
14		1. The name of the seller;
15		2. The address of the principal place of business from
16		which he engages in business as a serviceman in this State;
17		3. The total amount of taxable receipts received by him
18		during the preceding calendar month, including receipts
19		from charge and time sales, but less all deductions allowed
20		by law;
21		4. The amount of credit provided in Section 2d of this
22		Act;
23		5. The amount of tax due;
24		5-5. The signature of the taxpayer; and
25		6. Such other reasonable information as the Department
26		may require.
27		If a taxpayer fails to sign a return within 30 days after
28		the proper notice and demand for signature by the Department,
29		the return shall be considered valid and any amount shown to be
30		due on the return shall be deemed assessed.
31		Prior to October 1, 2005 2003, a serviceman may accept a
32		Manufacturer's Purchase Credit certification from a purchaser
33		in satisfaction of Service Use Tax as provided in Section 3-70
34		of the Service Use Tax Act if the purchaser provides the
35		appropriate documentation as required by Section 3-70 of the
36		Service Use Tax Act. A Manufacturer's Purchase Credit

1		certification, accepted prior to October 1, 2005 2003 by a
2		serviceman as provided in Section 3-70 of the Service Use Tax
3		Act, may be used by that serviceman to satisfy Service
4		Occupation Tax liability in the amount claimed in the
5		certification, not to exceed 6.25% of the receipts subject to
6		tax from a qualifying purchase. A Manufacturer's Purchase
7		Credit reported on any original or amended return filed under
8		this Act after October 20, 2005 2003 shall be disallowed. No
9		Manufacturer's Purchase Credit may be used after September 30,
10		2005 2003 to satisfy any tax liability imposed under this Act,
11		including any audit liability.
12		If the serviceman's average monthly tax liability to the
13		Department does not exceed $200, the Department may authorize
14		his returns to be filed on a quarter annual basis, with the
15		return for January, February and March of a given year being
16		due by April 20 of such year; with the return for April, May
17		and June of a given year being due by July 20 of such year; with
18		the return for July, August and September of a given year being
19		due by October 20 of such year, and with the return for
20		October, November and December of a given year being due by
21		January 20 of the following year.
22		If the serviceman's average monthly tax liability to the
23		Department does not exceed $50, the Department may authorize
24		his returns to be filed on an annual basis, with the return for
25		a given year being due by January 20 of the following year.
26		Such quarter annual and annual returns, as to form and
27		substance, shall be subject to the same requirements as monthly
28		returns.
29		Notwithstanding any other provision in this Act concerning
30		the time within which a serviceman may file his return, in the
31		case of any serviceman who ceases to engage in a kind of
32		business which makes him responsible for filing returns under
33		this Act, such serviceman shall file a final return under this
34		Act with the Department not more than 1 month after
35		discontinuing such business.
36		Beginning October 1, 1993, a taxpayer who has an average

1		monthly tax liability of $150,000 or more shall make all
2		payments required by rules of the Department by electronic
3		funds transfer. Beginning October 1, 1994, a taxpayer who has
4		an average monthly tax liability of $100,000 or more shall make
5		all payments required by rules of the Department by electronic
6		funds transfer. Beginning October 1, 1995, a taxpayer who has
7		an average monthly tax liability of $50,000 or more shall make
8		all payments required by rules of the Department by electronic
9		funds transfer. Beginning October 1, 2000, a taxpayer who has
10		an annual tax liability of $200,000 or more shall make all
11		payments required by rules of the Department by electronic
12		funds transfer. The term "annual tax liability" shall be the
13		sum of the taxpayer's liabilities under this Act, and under all
14		other State and local occupation and use tax laws administered
15		by the Department, for the immediately preceding calendar year.
16		The term "average monthly tax liability" means the sum of the
17		taxpayer's liabilities under this Act, and under all other
18		State and local occupation and use tax laws administered by the
19		Department, for the immediately preceding calendar year
20		divided by 12. Beginning on October 1, 2002, a taxpayer who has
21		a tax liability in the amount set forth in subsection (b) of
22		Section 2505-210 of the Department of Revenue Law shall make
23		all payments required by rules of the Department by electronic
24		funds transfer.
25		Before August 1 of each year beginning in 1993, the
26		Department shall notify all taxpayers required to make payments
27		by electronic funds transfer. All taxpayers required to make
28		payments by electronic funds transfer shall make those payments
29		for a minimum of one year beginning on October 1.
30		Any taxpayer not required to make payments by electronic
31		funds transfer may make payments by electronic funds transfer
32		with the permission of the Department.
33		All taxpayers required to make payment by electronic funds
34		transfer and any taxpayers authorized to voluntarily make
35		payments by electronic funds transfer shall make those payments
36		in the manner authorized by the Department.

1		The Department shall adopt such rules as are necessary to
2		effectuate a program of electronic funds transfer and the
3		requirements of this Section.
4		Where a serviceman collects the tax with respect to the
5		selling price of tangible personal property which he sells and
6		the purchaser thereafter returns such tangible personal
7		property and the serviceman refunds the selling price thereof
8		to the purchaser, such serviceman shall also refund, to the
9		purchaser, the tax so collected from the purchaser. When filing
10		his return for the period in which he refunds such tax to the
11		purchaser, the serviceman may deduct the amount of the tax so
12		refunded by him to the purchaser from any other Service
13		Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
14		Use Tax which such serviceman may be required to pay or remit
15		to the Department, as shown by such return, provided that the
16		amount of the tax to be deducted shall previously have been
17		remitted to the Department by such serviceman. If the
18		serviceman shall not previously have remitted the amount of
19		such tax to the Department, he shall be entitled to no
20		deduction hereunder upon refunding such tax to the purchaser.
21		If experience indicates such action to be practicable, the
22		Department may prescribe and furnish a combination or joint
23		return which will enable servicemen, who are required to file
24		returns hereunder and also under the Retailers' Occupation Tax
25		Act, the Use Tax Act or the Service Use Tax Act, to furnish all
26		the return information required by all said Acts on the one
27		form.
28		Where the serviceman has more than one business registered
29		with the Department under separate registrations hereunder,
30		such serviceman shall file separate returns for each registered
31		business.
32		Beginning January 1, 1990, each month the Department shall
33		pay into the Local Government Tax Fund the revenue realized for
34		the preceding month from the 1% tax on sales of food for human
35		consumption which is to be consumed off the premises where it
36		is sold (other than alcoholic beverages, soft drinks and food

1		which has been prepared for immediate consumption) and
2		prescription and nonprescription medicines, drugs, medical
3		appliances and insulin, urine testing materials, syringes and
4		needles used by diabetics.
5		Beginning January 1, 1990, each month the Department shall
6		pay into the County and Mass Transit District Fund 4% of the
7		revenue realized for the preceding month from the 6.25% general
8		rate.
9		Beginning August 1, 2000, each month the Department shall
10		pay into the County and Mass Transit District Fund 20% of the
11		net revenue realized for the preceding month from the 1.25%
12		rate on the selling price of motor fuel and gasohol.
13		Beginning January 1, 1990, each month the Department shall
14		pay into the Local Government Tax Fund 16% of the revenue
15		realized for the preceding month from the 6.25% general rate on
16		transfers of tangible personal property.
17		Beginning August 1, 2000, each month the Department shall
18		pay into the Local Government Tax Fund 80% of the net revenue
19		realized for the preceding month from the 1.25% rate on the
20		selling price of motor fuel and gasohol.
21		Of the remainder of the moneys received by the Department
22		pursuant to this Act, (a) 1.75% thereof shall be paid into the
23		Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
24		and after July 1, 1989, 3.8% thereof shall be paid into the
25		Build Illinois Fund; provided, however, that if in any fiscal
26		year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
27		may be, of the moneys received by the Department and required
28		to be paid into the Build Illinois Fund pursuant to Section 3
29		of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
30		Act, Section 9 of the Service Use Tax Act, and Section 9 of the
31		Service Occupation Tax Act, such Acts being hereinafter called
32		the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
33		may be, of moneys being hereinafter called the "Tax Act
34		Amount", and (2) the amount transferred to the Build Illinois
35		Fund from the State and Local Sales Tax Reform Fund shall be
36		less than the Annual Specified Amount (as defined in Section 3

1		of the Retailers' Occupation Tax Act), an amount equal to the
2		difference shall be immediately paid into the Build Illinois
3		Fund from other moneys received by the Department pursuant to
4		the Tax Acts; and further provided, that if on the last
5		business day of any month the sum of (1) the Tax Act Amount
6		required to be deposited into the Build Illinois Account in the
7		Build Illinois Fund during such month and (2) the amount
8		transferred during such month to the Build Illinois Fund from
9		the State and Local Sales Tax Reform Fund shall have been less
10		than 1/12 of the Annual Specified Amount, an amount equal to
11		the difference shall be immediately paid into the Build
12		Illinois Fund from other moneys received by the Department
13		pursuant to the Tax Acts; and, further provided, that in no
14		event shall the payments required under the preceding proviso
15		result in aggregate payments into the Build Illinois Fund
16		pursuant to this clause (b) for any fiscal year in excess of
17		the greater of (i) the Tax Act Amount or (ii) the Annual
18		Specified Amount for such fiscal year; and, further provided,
19		that the amounts payable into the Build Illinois Fund under
20		this clause (b) shall be payable only until such time as the
21		aggregate amount on deposit under each trust indenture securing
22		Bonds issued and outstanding pursuant to the Build Illinois
23		Bond Act is sufficient, taking into account any future
24		investment income, to fully provide, in accordance with such
25		indenture, for the defeasance of or the payment of the
26		principal of, premium, if any, and interest on the Bonds
27		secured by such indenture and on any Bonds expected to be
28		issued thereafter and all fees and costs payable with respect
29		thereto, all as certified by the Director of the Bureau of the
30		Budget (now Governor's Office of Management and Budget). If on
31		the last business day of any month in which Bonds are
32		outstanding pursuant to the Build Illinois Bond Act, the
33		aggregate of the moneys deposited in the Build Illinois Bond
34		Account in the Build Illinois Fund in such month shall be less
35		than the amount required to be transferred in such month from
36		the Build Illinois Bond Account to the Build Illinois Bond

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 Fund;
5		provided, however, that any amounts paid to the Build Illinois
6		Fund in any fiscal year pursuant to this sentence shall be
7		deemed to constitute payments pursuant to clause (b) of the
8		preceding sentence and shall reduce the amount otherwise
9		payable for such fiscal year pursuant to clause (b) of the
10		preceding sentence. The moneys received by the Department
11		pursuant to this Act and required to be deposited into the
12		Build Illinois Fund are subject to the pledge, claim and charge
13		set forth in Section 12 of the Build Illinois Bond Act.
14		Subject to payment of amounts into the Build Illinois Fund
15		as provided in the preceding paragraph or in any amendment
16		thereto hereafter enacted, the following specified monthly
17		installment of the amount requested in the certificate of the
18		Chairman of the Metropolitan Pier and Exposition Authority
19		provided under Section 8.25f of the State Finance Act, but not
20		in excess of the sums designated as "Total Deposit", shall be
21		deposited in the aggregate from collections under Section 9 of
22		the Use Tax Act, Section 9 of the Service Use Tax Act, Section
23		9 of the Service Occupation Tax Act, and Section 3 of the
24		Retailers' Occupation Tax Act into the McCormick Place
25		Expansion Project Fund in the specified fiscal years.

30		Beginning July 20, 1993 and in each month of each fiscal
31		year thereafter, one-eighth of the amount requested in the
32		certificate of the Chairman of the Metropolitan Pier and
33		Exposition Authority for that fiscal year, less the amount
34		deposited into the McCormick Place Expansion Project Fund by
35		the State Treasurer in the respective month under subsection
36		(g) of Section 13 of the Metropolitan Pier and Exposition

1		Authority Act, plus cumulative deficiencies in the deposits
2		required under this Section for previous months and years,
3		shall be deposited into the McCormick Place Expansion Project
4		Fund, until the full amount requested for the fiscal year, but
5		not in excess of the amount specified above as "Total Deposit",
6		has been deposited.
7		Subject to payment of amounts into the Build Illinois Fund
8		and the McCormick Place Expansion Project Fund pursuant to the
9		preceding paragraphs or in any amendments thereto hereafter
10		enacted, beginning July 1, 1993, the Department shall each
11		month pay into the Illinois Tax Increment Fund 0.27% of 80% of
12		the net revenue realized for the preceding month from the 6.25%
13		general rate on the selling price of tangible personal
14		property.
15		Subject to payment of amounts into the Build Illinois Fund
16		and the McCormick Place Expansion Project Fund pursuant to the
17		preceding paragraphs or in any amendments thereto hereafter
18		enacted, beginning with the receipt of the first report of
19		taxes paid by an eligible business and continuing for a 25-year
20		period, the Department shall each month pay into the Energy
21		Infrastructure Fund 80% of the net revenue realized from the
22		6.25% general rate on the selling price of Illinois-mined coal
23		that was sold to an eligible business. For purposes of this
24		paragraph, the term "eligible business" means a new electric
25		generating facility certified pursuant to Section 605-332 of
26		the Department of Commerce and Economic Opportunity Community
27		Affairs Law of the Civil Administrative Code of Illinois.
28		Remaining moneys received by the Department pursuant to
29		this Act shall be paid into the General Revenue Fund of the
30		State Treasury.
31		The Department may, upon separate written notice to a
32		taxpayer, require the taxpayer to prepare and file with the
33		Department on a form prescribed by the Department within not
34		less than 60 days after receipt of the notice an annual
35		information return for the tax year specified in the notice.
36		Such annual return to the Department shall include a statement

1		of gross receipts as shown by the taxpayer's last Federal
2		income tax return. If the total receipts of the business as
3		reported in the Federal income tax return do not agree with the
4		gross receipts reported to the Department of Revenue for the
5		same period, the taxpayer shall attach to his annual return a
6		schedule showing a reconciliation of the 2 amounts and the
7		reasons for the difference. The taxpayer's annual return to the
8		Department shall also disclose the cost of goods sold by the
9		taxpayer during the year covered by such return, opening and
10		closing inventories of such goods for such year, cost of goods
11		used from stock or taken from stock and given away by the
12		taxpayer during such year, pay roll information of the
13		taxpayer's business during such year and any additional
14		reasonable information which the Department deems would be
15		helpful in determining the accuracy of the monthly, quarterly
16		or annual returns filed by such taxpayer as hereinbefore
17		provided for in this Section.
18		If the annual information return required by this Section
19		is not filed when and as required, the taxpayer shall be liable
20		as follows:
21		(i) Until January 1, 1994, the taxpayer shall be liable
22		for a penalty equal to 1/6 of 1% of the tax due from such
23		taxpayer under this Act during the period to be covered by
24		the annual return for each month or fraction of a month
25		until such return is filed as required, the penalty to be
26		assessed and collected in the same manner as any other
27		penalty provided for in this Act.
28		(ii) On and after January 1, 1994, the taxpayer shall
29		be liable for a penalty as described in Section 3-4 of the
30		Uniform Penalty and Interest Act.
31		The chief executive officer, proprietor, owner or highest
32		ranking manager shall sign the annual return to certify the
33		accuracy of the information contained therein. Any person who
34		willfully signs the annual return containing false or
35		inaccurate information shall be guilty of perjury and punished
36		accordingly. The annual return form prescribed by the

1		Department shall include a warning that the person signing the
2		return may be liable for perjury.
3		The foregoing portion of this Section concerning the filing
4		of an annual information return shall not apply to a serviceman
5		who is not required to file an income tax return with the
6		United States Government.
7		As soon as possible after the first day of each month, upon
8		certification of the Department of Revenue, the Comptroller
9		shall order transferred and the Treasurer shall transfer from
10		the General Revenue Fund to the Motor Fuel Tax Fund an amount
11		equal to 1.7% of 80% of the net revenue realized under this Act
12		for the second preceding month. Beginning April 1, 2000, this
13		transfer is no longer required 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 whose
20		products are sold by numerous servicemen in Illinois, and who
21		wish to do so, to assume the responsibility for accounting and
22		paying to the Department all tax accruing under this Act with
23		respect to such sales, if the servicemen who are affected do
24		not make written objection to the Department to this
25		arrangement.
26		(Source: P.A. 92-12, eff. 7-1-01; 92-208, eff. 8-2-01; 92-492,
27		eff. 1-1-02; 92-600, eff. 6-28-02; 92-651, eff. 7-11-02; 93-24,
28		eff. 6-20-03; revised 10-15-03.)

29		Section 20. The Retailers' Occupation Tax Act is amended by
30		changing Section 3 as follows:
31		(35 ILCS 120/3) (from Ch. 120, par. 442)
32		Sec. 3. Except as provided in this Section, on or before
33		the twentieth day of each calendar month, every person engaged
34		in the business of selling tangible personal property at retail

1		in this State during the preceding calendar month shall file a
2		return with the Department, stating:
3		1. The name of the seller;
4		2. His residence address and the address of his
5		principal place of business and the address of the
6		principal place of business (if that is a different
7		address) from which he engages in the business of selling
8		tangible personal property at retail in this State;
9		3. Total amount of receipts received by him during the
10		preceding calendar month or quarter, as the case may be,
11		from sales of tangible personal property, and from services
12		furnished, by him during such preceding calendar month or
13		quarter;
14		4. Total amount received by him during the preceding
15		calendar month or quarter on charge and time sales of
16		tangible personal property, and from services furnished,
17		by him prior to the month or quarter for which the return
18		is filed;
19		5. Deductions allowed by law;
20		6. Gross receipts which were received by him during the
21		preceding calendar month or quarter and upon the basis of
22		which the tax is imposed;
23		7. The amount of credit provided in Section 2d of this
24		Act;
25		8. The amount of tax due;
26		9. The signature of the taxpayer; and
27		10. Such other reasonable information as the
28		Department may require.
29		If a taxpayer fails to sign a return within 30 days after
30		the proper notice and demand for signature by the Department,
31		the return shall be considered valid and any amount shown to be
32		due on the return shall be deemed assessed.
33		Each return shall be accompanied by the statement of
34		prepaid tax issued pursuant to Section 2e for which credit is
35		claimed.
36		Prior to October 1, 2005 2003, a retailer may accept a

1		Manufacturer's Purchase Credit certification from a purchaser
2		in satisfaction of Use Tax as provided in Section 3-85 of the
3		Use Tax Act if the purchaser provides the appropriate
4		documentation as required by Section 3-85 of the Use Tax Act. A
5		Manufacturer's Purchase Credit certification, accepted by a
6		retailer prior to October 1, 2005 2003 as provided in Section
7		3-85 of the Use Tax Act, may be used by that retailer to
8		satisfy Retailers' Occupation Tax liability in the amount
9		claimed in the certification, not to exceed 6.25% of the
10		receipts subject to tax from a qualifying purchase. A
11		Manufacturer's Purchase Credit reported on any original or
12		amended return filed under this Act after October 20, 2005 2003
13		shall be disallowed. No Manufacturer's Purchase Credit may be
14		used after September 30, 2005 2003 to satisfy any tax liability
15		imposed under this Act, including any audit liability.
16		The Department may require returns to be filed on a
17		quarterly basis. If so required, a return for each calendar
18		quarter shall be filed on or before the twentieth day of the
19		calendar month following the end of such calendar quarter. The
20		taxpayer shall also file a return with the Department for each
21		of the first two months of each calendar quarter, on or before
22		the twentieth day of the following calendar month, stating:
23		1. The name of the seller;
24		2. The address of the principal place of business from
25		which he engages in the business of selling tangible
26		personal property at retail in this State;
27		3. The total amount of taxable receipts received by him
28		during the preceding calendar month from sales of tangible
29		personal property by him during such preceding calendar
30		month, including receipts from charge and time sales, but
31		less all deductions allowed by law;
32		4. The amount of credit provided in Section 2d of this
33		Act;
34		5. The amount of tax due; and
35		6. Such other reasonable information as the Department
36		may require.

1		Beginning on October 1, 2003, any person who is not a
2		licensed distributor, importing distributor, or manufacturer,
3		as defined in the Liquor Control Act of 1934, but is engaged in
4		the business of selling, at retail, alcoholic liquor shall file
5		a statement with the Department of Revenue, in a format and at
6		a time prescribed by the Department, showing the total amount
7		paid for alcoholic liquor purchased during the preceding month
8		and such other information as is reasonably required by the
9		Department. The Department may adopt rules to require that this
10		statement be filed in an electronic or telephonic format. Such
11		rules may provide for exceptions from the filing requirements
12		of this paragraph. For the purposes of this paragraph, the term
13		"alcoholic liquor" shall have the meaning prescribed in the
14		Liquor Control Act of 1934.
15		Beginning on October 1, 2003, every distributor, importing
16		distributor, and manufacturer of alcoholic liquor as defined in
17		the Liquor Control Act of 1934, shall file a statement with the
18		Department of Revenue, no later than the 10th day of the month
19		for the preceding month during which transactions occurred, by
20		electronic means, showing the total amount of gross receipts
21		from the sale of alcoholic liquor sold or distributed during
22		the preceding month to purchasers; identifying the purchaser to
23		whom it was sold or distributed; the purchaser's tax
24		registration number; and such other information reasonably
25		required by the Department. A copy of the monthly statement
26		shall be sent to the retailer no later than the 10th day of the
27		month for the preceding month during which transactions
28		occurred.
29		If a total amount of less than $1 is payable, refundable or
30		creditable, such amount shall be disregarded if it is less than
31		50 cents and shall be increased to $1 if it is 50 cents or more.
32		Beginning October 1, 1993, a taxpayer who has an average
33		monthly tax liability of $150,000 or more shall make all
34		payments required by rules of the Department by electronic
35		funds transfer. Beginning October 1, 1994, a taxpayer who has
36		an average monthly tax liability of $100,000 or more shall make

1		all payments required by rules of the Department by electronic
2		funds transfer. Beginning October 1, 1995, a taxpayer who has
3		an average monthly tax liability of $50,000 or more shall make
4		all payments required by rules of the Department by electronic
5		funds transfer. Beginning October 1, 2000, a taxpayer who has
6		an annual tax liability of $200,000 or more shall make all
7		payments required by rules of the Department by electronic
8		funds transfer. The term "annual tax liability" shall be the
9		sum of the taxpayer's liabilities under this Act, and under all
10		other State and local occupation and use tax laws administered
11		by the Department, for the immediately preceding calendar year.
12		The term "average monthly tax liability" shall be the sum of
13		the taxpayer's liabilities under this Act, and under all other
14		State and local occupation and use tax laws administered by the
15		Department, for the immediately preceding calendar year
16		divided by 12. Beginning on October 1, 2002, a taxpayer who has
17		a tax liability in the amount set forth in subsection (b) of
18		Section 2505-210 of the Department of Revenue Law shall make
19		all payments required by rules of the Department by electronic
20		funds transfer.
21		Before August 1 of each year beginning in 1993, the
22		Department shall notify all taxpayers required to make payments
23		by electronic funds transfer. All taxpayers required to make
24		payments by electronic funds transfer shall make those payments
25		for a minimum of one year beginning on October 1.
26		Any taxpayer not required to make payments by electronic
27		funds transfer may make payments by electronic funds transfer
28		with the permission of the Department.
29		All taxpayers required to make payment by electronic funds
30		transfer and any taxpayers authorized to voluntarily make
31		payments by electronic funds transfer shall make those payments
32		in the manner authorized by the Department.
33		The Department shall adopt such rules as are necessary to
34		effectuate a program of electronic funds transfer and the
35		requirements of this Section.
36		Any amount which is required to be shown or reported on any

1		return or other document under this Act shall, if such amount
2		is not a whole-dollar amount, be increased to the nearest
3		whole-dollar amount in any case where the fractional part of a
4		dollar is 50 cents or more, and decreased to the nearest
5		whole-dollar amount where the fractional part of a dollar is
6		less than 50 cents.
7		If the retailer is otherwise required to file a monthly
8		return and if the retailer's average monthly tax liability to
9		the Department does not exceed $200, the Department may
10		authorize his returns to be filed on a quarter annual basis,
11		with the return for January, February and March of a given year
12		being due by April 20 of such year; with the return for April,
13		May and June of a given year being due by July 20 of such year;
14		with the return for July, August and September of a given year
15		being due by October 20 of such year, and with the return for
16		October, November and December of a given year being due by
17		January 20 of the following year.
18		If the retailer is otherwise required to file a monthly or
19		quarterly return and if the retailer's average monthly tax
20		liability with the Department does not exceed $50, the
21		Department may authorize his returns to be filed on an annual
22		basis, with the return for a given year being due by January 20
23		of the following year.
24		Such quarter annual and annual returns, as to form and
25		substance, shall be subject to the same requirements as monthly
26		returns.
27		Notwithstanding any other provision in this Act concerning
28		the time within which a retailer may file his return, in the
29		case of any retailer who ceases to engage in a kind of business
30		which makes him responsible for filing returns under this Act,
31		such retailer shall file a final return under this Act with the
32		Department not more than one month after discontinuing such
33		business.
34		Where the same person has more than one business registered
35		with the Department under separate registrations under this
36		Act, such person may not file each return that is due as a

1		single return covering all such registered businesses, but
2		shall file separate returns for each such registered business.
3		In addition, with respect to motor vehicles, watercraft,
4		aircraft, and trailers that are required to be registered with
5		an agency of this State, every retailer selling this kind of
6		tangible personal property shall file, with the Department,
7		upon a form to be prescribed and supplied by the Department, a
8		separate return for each such item of tangible personal
9		property which the retailer sells, except that if, in the same
10		transaction, (i) a retailer of aircraft, watercraft, motor
11		vehicles or trailers transfers more than one aircraft,
12		watercraft, motor vehicle or trailer to another aircraft,
13		watercraft, motor vehicle retailer or trailer retailer for the
14		purpose of resale or (ii) a retailer of aircraft, watercraft,
15		motor vehicles, or trailers transfers more than one aircraft,
16		watercraft, motor vehicle, or trailer to a purchaser for use as
17		a qualifying rolling stock as provided in Section 2-5 of this
18		Act, then that seller may report the transfer of all aircraft,
19		watercraft, motor vehicles or trailers involved in that
20		transaction to the Department on the same uniform
21		invoice-transaction reporting return form. For purposes of
22		this Section, "watercraft" means a Class 2, Class 3, or Class 4
23		watercraft as defined in Section 3-2 of the Boat Registration
24		and Safety Act, a personal watercraft, or any boat equipped
25		with an inboard motor.
26		Any retailer who sells only motor vehicles, watercraft,
27		aircraft, or trailers that are required to be registered with
28		an agency of this State, so that all retailers' occupation tax
29		liability is required to be reported, and is reported, on such
30		transaction reporting returns and who is not otherwise required
31		to file monthly or quarterly returns, need not file monthly or
32		quarterly returns. However, those retailers shall be required
33		to file returns on an annual basis.
34		The transaction reporting return, in the case of motor
35		vehicles or trailers that are required to be registered with an
36		agency of this State, shall be the same document as the Uniform

1		Invoice referred to in Section 5-402 of The Illinois Vehicle
2		Code and must show the name and address of the seller; the name
3		and address of the purchaser; the amount of the selling price
4		including the amount allowed by the retailer for traded-in
5		property, if any; the amount allowed by the retailer for the
6		traded-in tangible personal property, if any, to the extent to
7		which Section 1 of this Act allows an exemption for the value
8		of traded-in property; the balance payable after deducting such
9		trade-in allowance from the total selling price; the amount of
10		tax due from the retailer with respect to such transaction; the
11		amount of tax collected from the purchaser by the retailer on
12		such transaction (or satisfactory evidence that such tax is not
13		due in that particular instance, if that is claimed to be the
14		fact); the place and date of the sale; a sufficient
15		identification of the property sold; such other information as
16		is required in Section 5-402 of The Illinois Vehicle Code, and
17		such other information as the Department may reasonably
18		require.
19		The transaction reporting return in the case of watercraft
20		or aircraft must show the name and address of the seller; the
21		name and address of the purchaser; the amount of the selling
22		price including the amount allowed by the retailer for
23		traded-in property, if any; the amount allowed by the retailer
24		for the traded-in tangible personal property, if any, to the
25		extent to which Section 1 of this Act allows an exemption for
26		the value of traded-in property; the balance payable after
27		deducting such trade-in allowance from the total selling price;
28		the amount of tax due from the retailer with respect to such
29		transaction; the amount of tax collected from the purchaser by
30		the retailer on such transaction (or satisfactory evidence that
31		such tax is not due in that particular instance, if that is
32		claimed to be the fact); the place and date of the sale, a
33		sufficient identification of the property sold, and such other
34		information as the Department may reasonably require.
35		Such transaction reporting return shall be filed not later
36		than 20 days after the day of delivery of the item that is

1		being sold, but may be filed by the retailer at any time sooner
2		than that if he chooses to do so. The transaction reporting
3		return and tax remittance or proof of exemption from the
4		Illinois use tax may be transmitted to the Department by way of
5		the State agency with which, or State officer with whom the
6		tangible personal property must be titled or registered (if
7		titling or registration is required) if the Department and such
8		agency or State officer determine that this procedure will
9		expedite the processing of applications for title or
10		registration.
11		With each such transaction reporting return, the retailer
12		shall remit the proper amount of tax due (or shall submit
13		satisfactory evidence that the sale is not taxable if that is
14		the case), to the Department or its agents, whereupon the
15		Department shall issue, in the purchaser's name, a use tax
16		receipt (or a certificate of exemption if the Department is
17		satisfied that the particular sale is tax exempt) which such
18		purchaser may submit to the agency with which, or State officer
19		with whom, he must title or register the tangible personal
20		property that is involved (if titling or registration is
21		required) in support of such purchaser's application for an
22		Illinois certificate or other evidence of title or registration
23		to such tangible personal property.
24		No retailer's failure or refusal to remit tax under this
25		Act precludes a user, who has paid the proper tax to the
26		retailer, from obtaining his certificate of title or other
27		evidence of title or registration (if titling or registration
28		is required) upon satisfying the Department that such user has
29		paid the proper tax (if tax is due) to the retailer. The
30		Department shall adopt appropriate rules to carry out the
31		mandate of this paragraph.
32		If the user who would otherwise pay tax to the retailer
33		wants the transaction reporting return filed and the payment of
34		the tax or proof of exemption made to the Department before the
35		retailer is willing to take these actions and such user has not
36		paid the tax to the retailer, such user may certify to the fact

1		of such delay by the retailer and may (upon the Department
2		being satisfied of the truth of such certification) transmit
3		the information required by the transaction reporting return
4		and the remittance for tax or proof of exemption directly to
5		the Department and obtain his tax receipt or exemption
6		determination, in which event the transaction reporting return
7		and tax remittance (if a tax payment was required) shall be
8		credited by the Department to the proper retailer's account
9		with the Department, but without the 2.1% or 1.75% discount
10		provided for in this Section being allowed. When the user pays
11		the tax directly to the Department, he shall pay the tax in the
12		same amount and in the same form in which it would be remitted
13		if the tax had been remitted to the Department by the retailer.
14		Refunds made by the seller during the preceding return
15		period to purchasers, on account of tangible personal property
16		returned to the seller, shall be allowed as a deduction under
17		subdivision 5 of his monthly or quarterly return, as the case
18		may be, in case the seller had theretofore included the
19		receipts from the sale of such tangible personal property in a
20		return filed by him and had paid the tax imposed by this Act
21		with respect to such receipts.
22		Where the seller is a corporation, the return filed on
23		behalf of such corporation shall be signed by the president,
24		vice-president, secretary or treasurer or by the properly
25		accredited agent of such corporation.
26		Where the seller is a limited liability company, the return
27		filed on behalf of the limited liability company shall be
28		signed by a manager, member, or properly accredited agent of
29		the limited liability company.
30		Except as provided in this Section, the retailer filing the
31		return under this Section shall, at the time of filing such
32		return, pay to the Department the amount of tax imposed by this
33		Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
34		on and after January 1, 1990, or $5 per calendar year,
35		whichever is greater, which is allowed to reimburse the
36		retailer for the expenses incurred in keeping records,

1		preparing and filing returns, remitting the tax and supplying
2		data to the Department on request. Any prepayment made pursuant
3		to Section 2d of this Act shall be included in the amount on
4		which such 2.1% or 1.75% discount is computed. In the case of
5		retailers who report and pay the tax on a transaction by
6		transaction basis, as provided in this Section, such discount
7		shall be taken with each such tax remittance instead of when
8		such retailer files his periodic return.
9		Before October 1, 2000, if the taxpayer's average monthly
10		tax liability to the Department under this Act, the Use Tax
11		Act, the Service Occupation Tax Act, and the Service Use Tax
12		Act, excluding any liability for prepaid sales tax to be
13		remitted in accordance with Section 2d of this Act, was $10,000
14		or more during the preceding 4 complete calendar quarters, he
15		shall file a return with the Department each month by the 20th
16		day of the month next following the month during which such tax
17		liability is incurred and shall make payments to the Department
18		on or before the 7th, 15th, 22nd and last day of the month
19		during which such liability is incurred. On and after October
20		1, 2000, if the taxpayer's average monthly tax liability to the
21		Department under this Act, the Use Tax Act, the Service
22		Occupation Tax Act, and the Service Use Tax Act, excluding any
23		liability for prepaid sales tax to be remitted in accordance
24		with Section 2d of this Act, was $20,000 or more during the
25		preceding 4 complete calendar quarters, he shall file a return
26		with the Department each month by the 20th day of the month
27		next following the month during which such tax liability is
28		incurred and shall make payment to the Department on or before
29		the 7th, 15th, 22nd and last day of the month during which such
30		liability is incurred. If the month during which such tax
31		liability is incurred began prior to January 1, 1985, each
32		payment shall be in an amount equal to 1/4 of the taxpayer's
33		actual liability for the month or an amount set by the
34		Department not to exceed 1/4 of the average monthly liability
35		of the taxpayer to the Department for the preceding 4 complete
36		calendar quarters (excluding the month of highest liability and

1		the month of lowest liability in such 4 quarter period). If the
2		month during which such tax liability is incurred begins on or
3		after January 1, 1985 and prior to January 1, 1987, each
4		payment shall be in an amount equal to 22.5% of the taxpayer's
5		actual liability for the month or 27.5% of the taxpayer's
6		liability for the same calendar month of the preceding year. If
7		the month during which such tax liability is incurred begins on
8		or after January 1, 1987 and prior to January 1, 1988, each
9		payment shall be in an amount equal to 22.5% of the taxpayer's
10		actual liability for the month or 26.25% of the taxpayer's
11		liability for the same calendar month of the preceding year. If
12		the month during which such tax liability is incurred begins on
13		or after January 1, 1988, and prior to January 1, 1989, or
14		begins on or after January 1, 1996, each payment shall be in an
15		amount equal to 22.5% of the taxpayer's actual liability for
16		the month or 25% of the taxpayer's liability for the same
17		calendar month of the preceding year. If the month during which
18		such tax liability is incurred begins on or after January 1,
19		1989, and prior to January 1, 1996, each payment shall be in an
20		amount equal to 22.5% of the taxpayer's actual liability for
21		the month or 25% of the taxpayer's liability for the same
22		calendar month of the preceding year or 100% of the taxpayer's
23		actual liability for the quarter monthly reporting period. The
24		amount of such quarter monthly payments shall be credited
25		against the final tax liability of the taxpayer's return for
26		that month. Before October 1, 2000, once applicable, the
27		requirement of the making of quarter monthly payments to the
28		Department by taxpayers having an average monthly tax liability
29		of $10,000 or more as determined in the manner provided above
30		shall continue until such taxpayer's average monthly liability
31		to the Department during the preceding 4 complete calendar
32		quarters (excluding the month of highest liability and the
33		month of lowest liability) is less than $9,000, or until such
34		taxpayer's average monthly liability to the Department as
35		computed for each calendar quarter of the 4 preceding complete
36		calendar quarter period is less than $10,000. However, if a

1		taxpayer can show the Department that a substantial change in
2		the taxpayer's business has occurred which causes the taxpayer
3		to anticipate that his average monthly tax liability for the
4		reasonably foreseeable future will fall below the $10,000
5		threshold stated above, then such taxpayer may petition the
6		Department for a change in such taxpayer's reporting status. On
7		and after October 1, 2000, once applicable, the requirement of
8		the making of quarter monthly payments to the Department by
9		taxpayers having an average monthly tax liability of $20,000 or
10		more as determined in the manner provided above shall continue
11		until such taxpayer's average monthly liability to the
12		Department during the preceding 4 complete calendar quarters
13		(excluding the month of highest liability and the month of
14		lowest liability) is less than $19,000 or until such taxpayer's
15		average monthly liability to the Department as computed for
16		each calendar quarter of the 4 preceding complete calendar
17		quarter period is less than $20,000. However, if a taxpayer can
18		show the Department that a substantial change in the taxpayer's
19		business has occurred which causes the taxpayer to anticipate
20		that his average monthly tax liability for the reasonably
21		foreseeable future will fall below the $20,000 threshold stated
22		above, then such taxpayer may petition the Department for a
23		change in such taxpayer's reporting status. The Department
24		shall change such taxpayer's reporting status unless it finds
25		that such change is seasonal in nature and not likely to be
26		long term. If any such quarter monthly payment is not paid at
27		the time or in the amount required by this Section, then the
28		taxpayer shall be liable for penalties and interest on the
29		difference between the minimum amount due as a payment and the
30		amount of such quarter monthly payment actually and timely
31		paid, except insofar as the taxpayer has previously made
32		payments for that month to the Department in excess of the
33		minimum payments previously due as provided in this Section.
34		The Department shall make reasonable rules and regulations to
35		govern the quarter monthly payment amount and quarter monthly
36		payment dates for taxpayers who file on other than a calendar

1		monthly basis.
2		The provisions of this paragraph apply before October 1,
3		2001. Without regard to whether a taxpayer is required to make
4		quarter monthly payments as specified above, any taxpayer who
5		is required by Section 2d of this Act to collect and remit
6		prepaid taxes and has collected prepaid taxes which average in
7		excess of $25,000 per month during the preceding 2 complete
8		calendar quarters, shall file a return with the Department as
9		required by Section 2f and shall make payments to the
10		Department on or before the 7th, 15th, 22nd and last day of the
11		month during which such liability is incurred. If the month
12		during which such tax liability is incurred began prior to the
13		effective date of this amendatory Act of 1985, each payment
14		shall be in an amount not less than 22.5% of the taxpayer's
15		actual liability under Section 2d. If the month during which
16		such tax liability is incurred begins on or after January 1,
17		1986, each payment shall be in an amount equal to 22.5% of the
18		taxpayer's actual liability for the month or 27.5% of the
19		taxpayer's liability for the same calendar month of the
20		preceding calendar year. If the month during which such tax
21		liability is incurred begins on or after January 1, 1987, each
22		payment shall be in an amount equal to 22.5% of the taxpayer's
23		actual liability for the month or 26.25% of the taxpayer's
24		liability for the same calendar month of the preceding year.
25		The amount of such quarter monthly payments shall be credited
26		against the final tax liability of the taxpayer's return for
27		that month filed under this Section or Section 2f, as the case
28		may be. Once applicable, the requirement of the making of
29		quarter monthly payments to the Department pursuant to this
30		paragraph shall continue until such taxpayer's average monthly
31		prepaid tax collections during the preceding 2 complete
32		calendar quarters is $25,000 or less. If any such quarter
33		monthly payment is not paid at the time or in the amount
34		required, the taxpayer shall be liable for penalties and
35		interest on such difference, except insofar as the taxpayer has
36		previously made payments for that month in excess of the

1		minimum payments previously due.
2		The provisions of this paragraph apply on and after October
3		1, 2001. Without regard to whether a taxpayer is required to
4		make quarter monthly payments as specified above, any taxpayer
5		who is required by Section 2d of this Act to collect and remit
6		prepaid taxes and has collected prepaid taxes that average in
7		excess of $20,000 per month during the preceding 4 complete
8		calendar quarters shall file a return with the Department as
9		required by Section 2f and shall make payments to the
10		Department on or before the 7th, 15th, 22nd and last day of the
11		month during which the liability is incurred. Each payment
12		shall be in an amount equal to 22.5% of the taxpayer's actual
13		liability for the month or 25% of the taxpayer's liability for
14		the same calendar month of the preceding year. The amount of
15		the quarter monthly payments shall be credited against the
16		final tax liability of the taxpayer's return for that month
17		filed under this Section or Section 2f, as the case may be.
18		Once applicable, the requirement of the making of quarter
19		monthly payments to the Department pursuant to this paragraph
20		shall continue until the taxpayer's average monthly prepaid tax
21		collections during the preceding 4 complete calendar quarters
22		(excluding the month of highest liability and the month of
23		lowest liability) is less than $19,000 or until such taxpayer's
24		average monthly liability to the Department as computed for
25		each calendar quarter of the 4 preceding complete calendar
26		quarters is less than $20,000. If any such quarter monthly
27		payment is not paid at the time or in the amount required, the
28		taxpayer shall be liable for penalties and interest on such
29		difference, except insofar as the taxpayer has previously made
30		payments for that month in excess of the minimum payments
31		previously due.
32		If any payment provided for in this Section exceeds the
33		taxpayer's liabilities under this Act, the Use Tax Act, the
34		Service Occupation Tax Act and the Service Use Tax Act, as
35		shown on an original monthly return, the Department shall, if
36		requested by the taxpayer, issue to the taxpayer a credit

1		memorandum no later than 30 days after the date of payment. The
2		credit evidenced by such credit memorandum may be assigned by
3		the taxpayer to a similar taxpayer under this Act, the Use Tax
4		Act, the Service Occupation Tax Act or the Service Use Tax Act,
5		in accordance with reasonable rules and regulations to be
6		prescribed by the Department. If no such request is made, the
7		taxpayer may credit such excess payment against tax liability
8		subsequently to be remitted to the Department under this Act,
9		the Use Tax Act, the Service Occupation Tax Act or the Service
10		Use Tax Act, in accordance with reasonable rules and
11		regulations prescribed by the Department. If the Department
12		subsequently determined that all or any part of the credit
13		taken was not actually due to the taxpayer, the taxpayer's 2.1%
14		and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
15		of the difference between the credit taken and that actually
16		due, and that taxpayer shall be liable for penalties and
17		interest on such difference.
18		If a retailer of motor fuel is entitled to a credit under
19		Section 2d of this Act which exceeds the taxpayer's liability
20		to the Department under this Act for the month which the
21		taxpayer is filing a return, the Department shall issue the
22		taxpayer a credit memorandum for the excess.
23		Beginning January 1, 1990, each month the Department shall
24		pay into the Local Government Tax Fund, a special fund in the
25		State treasury which is hereby created, the net revenue
26		realized for the preceding month from the 1% tax on sales of
27		food for human consumption which is to be consumed off the
28		premises where it is sold (other than alcoholic beverages, soft
29		drinks and food which has been prepared for immediate
30		consumption) and prescription and nonprescription medicines,
31		drugs, medical appliances and insulin, urine testing
32		materials, syringes and needles used by diabetics.
33		Beginning January 1, 1990, each month the Department shall
34		pay into the County and Mass Transit District Fund, a special
35		fund in the State treasury which is hereby created, 4% of the
36		net revenue realized for the preceding month from the 6.25%

1		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		Beginning January 1, 1990, each month the Department shall
7		pay into the Local Government Tax Fund 16% of the net revenue
8		realized for the preceding month from the 6.25% general rate on
9		the selling price of tangible personal property.
10		Beginning August 1, 2000, each month the Department shall
11		pay into the Local Government Tax Fund 80% of the net revenue
12		realized for the preceding month from the 1.25% rate on the
13		selling price of motor fuel and gasohol.
14		Of the remainder of the moneys received by the Department
15		pursuant to this Act, (a) 1.75% thereof shall be paid into the
16		Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
17		and after July 1, 1989, 3.8% thereof shall be paid into the
18		Build Illinois Fund; provided, however, that if in any fiscal
19		year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
20		may be, of the moneys received by the Department and required
21		to be paid into the Build Illinois Fund pursuant to this Act,
22		Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
23		Act, and Section 9 of the Service Occupation Tax Act, such Acts
24		being hereinafter called the "Tax Acts" and such aggregate of
25		2.2% or 3.8%, as the case may be, of moneys being hereinafter
26		called the "Tax Act Amount", and (2) the amount transferred to
27		the Build Illinois Fund from the State and Local Sales Tax
28		Reform Fund shall be less than the Annual Specified Amount (as
29		hereinafter defined), an amount equal to the difference shall
30		be immediately paid into the Build Illinois Fund from other
31		moneys received by the Department pursuant to the Tax Acts; the
32		"Annual Specified Amount" means the amounts specified below for
33		fiscal years 1986 through 1993:

7		and means the Certified Annual Debt Service Requirement (as
8		defined in Section 13 of the Build Illinois Bond Act) or the
9		Tax Act Amount, whichever is greater, for fiscal year 1994 and
10		each fiscal year thereafter; and further provided, that if on
11		the last business day of any month the sum of (1) the Tax Act
12		Amount required to be deposited into the Build Illinois Bond
13		Account in the Build Illinois Fund during such month and (2)
14		the amount transferred to the Build Illinois Fund from the
15		State and Local Sales Tax Reform Fund shall have been less than
16		1/12 of the Annual Specified Amount, an amount equal to the
17		difference shall be immediately paid into the Build Illinois
18		Fund from other moneys received by the Department pursuant to
19		the Tax Acts; and, further provided, that in no event shall the
20		payments required under the preceding proviso result in
21		aggregate payments into the Build Illinois Fund pursuant to
22		this clause (b) for any fiscal year in excess of the greater of
23		(i) the Tax Act Amount or (ii) the Annual Specified Amount for
24		such fiscal year. The amounts payable into the Build Illinois
25		Fund under clause (b) of the first sentence in this paragraph
26		shall be payable only until such time as the aggregate amount
27		on deposit under each trust indenture securing Bonds issued and
28		outstanding pursuant to the Build Illinois Bond Act is
29		sufficient, taking into account any future investment income,
30		to fully provide, in accordance with such indenture, for the
31		defeasance of or the payment of the principal of, premium, if
32		any, and interest on the Bonds secured by such indenture and on
33		any Bonds expected to be issued thereafter and all fees and
34		costs payable with respect thereto, all as certified by the
35		Director of the Bureau of the Budget (now Governor's Office of
36		Management and Budget). If on the last business day of any

1		month in which Bonds are outstanding pursuant to the Build
2		Illinois Bond Act, the aggregate of moneys deposited in the
3		Build Illinois Bond Account in the Build Illinois Fund in such
4		month shall be less than the amount required to be transferred
5		in such month from the Build Illinois Bond Account to the Build
6		Illinois Bond Retirement and Interest Fund pursuant to Section
7		13 of the Build Illinois Bond Act, an amount equal to such
8		deficiency shall be immediately paid from other moneys received
9		by the Department pursuant to the Tax Acts to the Build
10		Illinois Fund; provided, however, that any amounts paid to the
11		Build Illinois Fund in any fiscal year pursuant to this
12		sentence shall be deemed to constitute payments pursuant to
13		clause (b) of the first sentence of this paragraph and shall
14		reduce the amount otherwise payable for such fiscal year
15		pursuant to that clause (b). The moneys received by the
16		Department pursuant to this Act and required to be deposited
17		into the Build Illinois Fund are subject to the pledge, claim
18		and charge set forth in Section 12 of the Build Illinois Bond
19		Act.
20		Subject to payment of amounts into the Build Illinois Fund
21		as provided in the preceding paragraph or in any amendment
22		thereto hereafter enacted, the following specified monthly
23		installment of the amount requested in the certificate of the
24		Chairman of the Metropolitan Pier and Exposition Authority
25		provided under Section 8.25f of the State Finance Act, but not
26		in excess of sums designated as "Total Deposit", shall be
27		deposited in the aggregate from collections under Section 9 of
28		the Use Tax Act, Section 9 of the Service Use Tax Act, Section
29		9 of the Service Occupation Tax Act, and Section 3 of the
30		Retailers' Occupation Tax Act into the McCormick Place
31		Expansion Project Fund in the specified fiscal years.

36		Beginning July 20, 1993 and in each month of each fiscal

1		year thereafter, one-eighth of the amount requested in the
2		certificate of the Chairman of the Metropolitan Pier and
3		Exposition Authority for that fiscal year, less the amount
4		deposited into the McCormick Place Expansion Project Fund by
5		the State Treasurer in the respective month under subsection
6		(g) of Section 13 of the Metropolitan Pier and Exposition
7		Authority Act, plus cumulative deficiencies in the deposits
8		required under this Section for previous months and years,
9		shall be deposited into the McCormick Place Expansion Project
10		Fund, until the full amount requested for the fiscal year, but
11		not in excess of the amount specified above as "Total Deposit",
12		has been deposited.
13		Subject to payment of amounts into the Build Illinois Fund
14		and the McCormick Place Expansion Project Fund pursuant to the
15		preceding paragraphs or in any amendments thereto hereafter
16		enacted, beginning July 1, 1993, the Department shall each
17		month pay into the Illinois Tax Increment Fund 0.27% of 80% of
18		the net revenue realized for the preceding month from the 6.25%
19		general rate on the selling price of tangible personal
20		property.
21		Subject to payment of amounts into the Build Illinois Fund
22		and the McCormick Place Expansion Project Fund pursuant to the
23		preceding paragraphs or in any amendments thereto hereafter
24		enacted, beginning with the receipt of the first report of
25		taxes paid by an eligible business and continuing for a 25-year
26		period, the Department shall each month pay into the Energy
27		Infrastructure Fund 80% of the net revenue realized from the
28		6.25% general rate on the selling price of Illinois-mined coal
29		that was sold to an eligible business. For purposes of this
30		paragraph, the term "eligible business" means a new electric
31		generating facility certified pursuant to Section 605-332 of
32		the Department of Commerce and Economic Opportunity Community
33		Affairs Law of the Civil Administrative Code of Illinois.
34		Of the remainder of the moneys received by the Department
35		pursuant to this Act, 75% thereof shall be paid into the State
36		Treasury and 25% shall be reserved in a special account and

1		used only for the transfer to the Common School Fund as part of
2		the monthly transfer from the General Revenue Fund in
3		accordance with Section 8a of the State Finance Act.
4		The Department may, upon separate written notice to a
5		taxpayer, require the taxpayer to prepare and file with the
6		Department on a form prescribed by the Department within not
7		less than 60 days after receipt of the notice an annual
8		information return for the tax year specified in the notice.
9		Such annual return to the Department shall include a statement
10		of gross receipts as shown by the retailer's last Federal
11		income tax return. If the total receipts of the business as
12		reported in the Federal income tax return do not agree with the
13		gross receipts reported to the Department of Revenue for the
14		same period, the retailer shall attach to his annual return a
15		schedule showing a reconciliation of the 2 amounts and the
16		reasons for the difference. The retailer's annual return to the
17		Department shall also disclose the cost of goods sold by the
18		retailer during the year covered by such return, opening and
19		closing inventories of such goods for such year, costs of goods
20		used from stock or taken from stock and given away by the
21		retailer during such year, payroll information of the
22		retailer's business during such year and any additional
23		reasonable information which the Department deems would be
24		helpful in determining the accuracy of the monthly, quarterly
25		or annual returns filed by such retailer as provided for in
26		this Section.
27		If the annual information return required by this Section
28		is not filed when and as required, the taxpayer shall be liable
29		as follows:
30		(i) Until January 1, 1994, the taxpayer shall be liable
31		for a penalty equal to 1/6 of 1% of the tax due from such
32		taxpayer under this Act during the period to be covered by
33		the annual return for each month or fraction of a month
34		until such return is filed as required, the penalty to be
35		assessed and collected in the same manner as any other
36		penalty provided for in this Act.

1		(ii) On and after January 1, 1994, the taxpayer shall
2		be liable for a penalty as described in Section 3-4 of the
3		Uniform Penalty and Interest Act.
4		The chief executive officer, proprietor, owner or highest
5		ranking manager shall sign the annual return to certify the
6		accuracy of the information contained therein. Any person who
7		willfully signs the annual return containing false or
8		inaccurate information shall be guilty of perjury and punished
9		accordingly. The annual return form prescribed by the
10		Department shall include a warning that the person signing the
11		return may be liable for perjury.
12		The provisions of this Section concerning the filing of an
13		annual information return do not apply to a retailer who is not
14		required to file an income tax return with the United States
15		Government.
16		As soon as possible after the first day of each month, upon
17		certification of the Department of Revenue, the Comptroller
18		shall order transferred and the Treasurer shall transfer from
19		the General Revenue Fund to the Motor Fuel Tax Fund an amount
20		equal to 1.7% of 80% of the net revenue realized under this Act
21		for the second preceding month. Beginning April 1, 2000, this
22		transfer is no longer required and shall not be made.
23		Net revenue realized for a month shall be the revenue
24		collected by the State pursuant to this Act, less the amount
25		paid out during that month as refunds to taxpayers for
26		overpayment of liability.
27		For greater simplicity of administration, manufacturers,
28		importers and wholesalers whose products are sold at retail in
29		Illinois by numerous retailers, and who wish to do so, may
30		assume the responsibility for accounting and paying to the
31		Department all tax accruing under this Act with respect to such
32		sales, if the retailers who are affected do not make written
33		objection to the Department to this arrangement.
34		Any person who promotes, organizes, provides retail
35		selling space for concessionaires or other types of sellers at
36		the Illinois State Fair, DuQuoin State Fair, county fairs,

1		local fairs, art shows, flea markets and similar exhibitions or
2		events, including any transient merchant as defined by Section
3		2 of the Transient Merchant Act of 1987, is required to file a
4		report with the Department providing the name of the merchant's
5		business, the name of the person or persons engaged in
6		merchant's business, the permanent address and Illinois
7		Retailers Occupation Tax Registration Number of the merchant,
8		the dates and location of the event and other reasonable
9		information that the Department may require. The report must be
10		filed not later than the 20th day of the month next following
11		the month during which the event with retail sales was held.
12		Any person who fails to file a report required by this Section
13		commits a business offense and is subject to a fine not to
14		exceed $250.
15		Any person engaged in the business of selling tangible
16		personal property at retail as a concessionaire or other type
17		of seller at the Illinois State Fair, county fairs, art shows,
18		flea markets and similar exhibitions or events, or any
19		transient merchants, as defined by Section 2 of the Transient
20		Merchant Act of 1987, may be required to make a daily report of
21		the amount of such sales to the Department and to make a daily
22		payment of the full amount of tax due. The Department shall
23		impose this requirement when it finds that there is a
24		significant risk of loss of revenue to the State at such an
25		exhibition or event. Such a finding shall be based on evidence
26		that a substantial number of concessionaires or other sellers
27		who are not residents of Illinois will be engaging in the
28		business of selling tangible personal property at retail at the
29		exhibition or event, or other evidence of a significant risk of
30		loss of revenue to the State. The Department shall notify
31		concessionaires and other sellers affected by the imposition of
32		this requirement. In the absence of notification by the
33		Department, the concessionaires and other sellers shall file
34		their returns as otherwise required in this Section.
35		(Source: P.A. 92-12, eff. 7-1-01; 92-16, eff. 6-28-01; 92-208,
36		eff. 8-2-01; 92-484, eff. 8-23-01; 92-492, eff. 1-1-02; 92-600,

1		eff. 6-28-02; 92-651, eff. 7-11-02; 93-22, eff. 6-20-03; 93-24,
2		eff. 6-20-03; revised 10-15-03.)

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