HB6628 93RD GENERAL ASSEMBLY

LRB093 16681 SJM 42332 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB6628

Introduced 02/09/04, by Richard P. Myers

SYNOPSIS AS INTRODUCED:

30 ILCS 105/6z-18	from Ch. 127, par. 142z-18
30 ILCS 105/6z-20	from Ch. 127, par. 142z-20
35 ILCS 105/3-10	from Ch. 120, par. 439.3-10
35 ILCS 105/9	from Ch. 120, par. 439.9
35 ILCS 110/3-10	from Ch. 120, par. 439.33-10
35 ILCS 110/9	from Ch. 120, par. 439.39
35 ILCS 115/3-10	from Ch. 120, par. 439.103-10
35 ILCS 115/9	from Ch. 120, par. 439.109
35 ILCS 120/2-10	from Ch. 120, par. 441-10
35 ILCS 120/3	from Ch. 120, par. 442

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning July 1, 2004, the tax with respect to textbooks required for use at State universities and public community colleges or certain other institutions of higher learning is imposed under these Acts at the rate of 1.25% (eliminating the State's portion of the tax). Authorizes the Department of Revenue to adopt rules. Amends the State Finance Act to adjust the distribution with respect to this tax. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT regarding taxation.

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

4		Section 5. The State Finance Act is amended by changing
5		Sections 6z-18 and 6z-20 as follows:
6		(30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
7		Sec. 6z-18. A portion of the money paid into the Local
8		Government Tax Fund from sales of food for human consumption
9		which is to be consumed off the premises where it is sold
10		(other than alcoholic beverages, soft drinks and food which has
11		been prepared for immediate consumption) and prescription and
12		nonprescription medicines, drugs, medical appliances and
13		insulin, urine testing materials, syringes and needles used by
14		diabetics, which occurred in municipalities, shall be
15		distributed to each municipality based upon the sales which
16		occurred in that municipality. The remainder shall be
17		distributed to each county based upon the sales which occurred
18		in the unincorporated area of that county.
19		A portion of the money paid into the Local Government Tax
20		Fund from the 6.25% general use tax rate on the selling price
21		of tangible personal property which is purchased outside
22		Illinois at retail from a retailer and which is titled or
23		registered by any agency of this State's government shall be
24		distributed to municipalities as provided in this paragraph.
25		Each municipality shall receive the amount attributable to
26		sales for which Illinois addresses for titling or registration
27		purposes are given as being in such municipality. The remainder
28		of the money paid into the Local Government Tax Fund from such
29		sales shall be distributed to counties. Each county shall
30		receive the amount attributable to sales for which Illinois
31		addresses for titling or registration purposes are given as
32		being located in the unincorporated area of such county.

1		A portion of the money paid into the Local Government Tax
2		Fund from the 6.25% general rate (and, beginning July 1, 2000
3		and through December 31, 2000, the 1.25% rate on motor fuel and
4		gasohol and, beginning July 1, 2004, the 1.25% rate on
5		textbooks required for use at State universities and public
6		community colleges or at institutions of higher learning as
7		defined in the Illinois Financial Assistance Act for Nonpublic
8		Institutions of Higher Learning) on sales subject to taxation
9		under the Retailers' Occupation Tax Act and the Service
10		Occupation Tax Act, which occurred in municipalities, shall be
11		distributed to each municipality, based upon the sales which
12		occurred in that municipality. The remainder shall be
13		distributed to each county, based upon the sales which occurred
14		in the unincorporated area of such county.
15		For the purpose of determining allocation to the local
16		government unit, a retail sale by a producer of coal or other
17		mineral mined in Illinois is a sale at retail at the place
18		where the coal or other mineral mined in Illinois is extracted
19		from the earth. This paragraph does not apply to coal or other
20		mineral when it is delivered or shipped by the seller to the
21		purchaser at a point outside Illinois so that the sale is
22		exempt under the United States Constitution as a sale in
23		interstate or foreign commerce.
24		Whenever the Department determines that a refund of money
25		paid into the Local Government Tax Fund should be made to a
26		claimant instead of issuing a credit memorandum, the Department
27		shall notify the State Comptroller, who shall cause the order
28		to be drawn for the amount specified, and to the person named,
29		in such notification from the Department. Such refund shall be
30		paid by the State Treasurer out of the Local Government Tax
31		Fund.
32		On or before the 25th day of each calendar month, the
33		Department shall prepare and certify to the Comptroller the
34		disbursement of stated sums of money to named municipalities
35		and counties, the municipalities and counties to be those
36		entitled to distribution of taxes or penalties paid to the

1		Department during the second preceding calendar month. The
2		amount to be paid to each municipality or county shall be the
3		amount (not including credit memoranda) collected during the
4		second preceding calendar month by the Department and paid into
5		the Local Government Tax Fund, plus an amount the Department
6		determines is necessary to offset any amounts which were
7		erroneously paid to a different taxing body, and not including
8		an amount equal to the amount of refunds made during the second
9		preceding calendar month by the Department, and not including
10		any amount which the Department determines is necessary to
11		offset any amounts which are payable to a different taxing body
12		but were erroneously paid to the municipality or county. Within
13		10 days after receipt, by the Comptroller, of the disbursement
14		certification to the municipalities and counties, provided for
15		in this Section to be given to the Comptroller by the
16		Department, the Comptroller shall cause the orders to be drawn
17		for the respective amounts in accordance with the directions
18		contained in such certification.
19		When certifying the amount of monthly disbursement to a
20		municipality or county under this Section, the Department shall
21		increase or decrease that amount by an amount necessary to
22		offset any misallocation of previous disbursements. The offset
23		amount shall be the amount erroneously disbursed within the 6
24		months preceding the time a misallocation is discovered.
25		The provisions directing the distributions from the
26		special fund in the State Treasury provided for in this Section
27		shall constitute an irrevocable and continuing appropriation
28		of all amounts as provided herein. The State Treasurer and
29		State Comptroller are hereby authorized to make distributions
30		as provided in this Section.
31		In construing any development, redevelopment, annexation,
32		preannexation or other lawful agreement in effect prior to
33		September 1, 1990, which describes or refers to receipts from a
34		county or municipal retailers' occupation tax, use tax or
35		service occupation tax which now cannot be imposed, such
36		description or reference shall be deemed to include the

1		replacement revenue for such abolished taxes, distributed from
2		the Local Government Tax Fund.
3		(Source: P.A. 90-491, eff. 1-1-98; 91-51, eff. 6-30-99; 91-872,
4		eff. 7-1-00.)
5		(30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
6		Sec. 6z-20. Of the money received from the 6.25% general
7		rate (and, beginning July 1, 2000 and through December 31,
8		2000, the 1.25% rate on motor fuel and gasohol and, beginning
9		July 1, 2004, the 1.25% rate on textbooks required for use at
10		State universities and public community colleges or at
11		institutions of higher learning as defined in the Illinois
12		Financial Assistance Act for Nonpublic Institutions of Higher
13		Learning) on sales subject to taxation under the Retailers'
14		Occupation Tax Act and Service Occupation Tax Act and paid into
15		the County and Mass Transit District Fund, distribution to the
16		Regional Transportation Authority tax fund, created pursuant
17		to Section 4.03 of the Regional Transportation Authority Act,
18		for deposit therein shall be made based upon the retail sales
19		occurring in a county having more than 3,000,000 inhabitants.
20		The remainder shall be distributed to each county having
21		3,000,000 or fewer inhabitants based upon the retail sales
22		occurring in each such county.
23		For the purpose of determining allocation to the local
24		government unit, a retail sale by a producer of coal or other
25		mineral mined in Illinois is a sale at retail at the place
26		where the coal or other mineral mined in Illinois is extracted
27		from the earth. This paragraph does not apply to coal or other
28		mineral when it is delivered or shipped by the seller to the
29		purchaser at a point outside Illinois so that the sale is
30		exempt under the United States Constitution as a sale in
31		interstate or foreign commerce.
32		Of the money received from the 6.25% general use tax rate
33		on tangible personal property which is purchased outside
34		Illinois at retail from a retailer and which is titled or
35		registered by any agency of this State's government and paid

1		into the County and Mass Transit District Fund, the amount for
2		which Illinois addresses for titling or registration purposes
3		are given as being in each county having more than 3,000,000
4		inhabitants shall be distributed into the Regional
5		Transportation Authority tax fund, created pursuant to Section
6		4.03 of the Regional Transportation Authority Act. The
7		remainder of the money paid from such sales shall be
8		distributed to each county based on sales for which Illinois
9		addresses for titling or registration purposes are given as
10		being located in the county. Any money paid into the Regional
11		Transportation Authority Occupation and Use Tax Replacement
12		Fund from the County and Mass Transit District Fund prior to
13		January 14, 1991, which has not been paid to the Authority
14		prior to that date, shall be transferred to the Regional
15		Transportation Authority tax fund.
16		Whenever the Department determines that a refund of money
17		paid into the County and Mass Transit District Fund should be
18		made to a claimant instead of issuing a credit memorandum, the
19		Department shall notify the State Comptroller, who shall cause
20		the order to be drawn for the amount specified, and to the
21		person named, in such notification from the Department. Such
22		refund shall be paid by the State Treasurer out of the County
23		and Mass Transit District Fund.
24		On or before the 25th day of each calendar month, the
25		Department shall prepare and certify to the Comptroller the
26		disbursement of stated sums of money to the Regional
27		Transportation Authority and to named counties, the counties to
28		be those entitled to distribution, as hereinabove provided, of
29		taxes or penalties paid to the Department during the second
30		preceding calendar month. The amount to be paid to the Regional
31		Transportation Authority and each county having 3,000,000 or
32		fewer inhabitants shall be the amount (not including credit
33		memoranda) collected during the second preceding calendar
34		month by the Department and paid into the County and Mass
35		Transit District Fund, plus an amount the Department determines
36		is necessary to offset any amounts which were erroneously paid

1		to a different taxing body, and not including an amount equal
2		to the amount of refunds made during the second preceding
3		calendar month by the Department, and not including any amount
4		which the Department determines is necessary to offset any
5		amounts which were payable to a different taxing body but were
6		erroneously paid to the Regional Transportation Authority or
7		county. Within 10 days after receipt, by the Comptroller, of
8		the disbursement certification to the Regional Transportation
9		Authority and counties, provided for in this Section to be
10		given to the Comptroller by the Department, the Comptroller
11		shall cause the orders to be drawn for the respective amounts
12		in accordance with the directions contained in such
13		certification.
14		When certifying the amount of a monthly disbursement to the
15		Regional Transportation Authority or to a county under this
16		Section, the Department shall increase or decrease that amount
17		by an amount necessary to offset any misallocation of previous
18		disbursements. The offset amount shall be the amount
19		erroneously disbursed within the 6 months preceding the time a
20		misallocation is discovered.
21		The provisions directing the distributions from the
22		special fund in the State Treasury provided for in this Section
23		and from the Regional Transportation Authority tax fund created
24		by Section 4.03 of the Regional Transportation Authority Act
25		shall constitute an irrevocable and continuing appropriation
26		of all amounts as provided herein. The State Treasurer and
27		State Comptroller are hereby authorized to make distributions
28		as provided in this Section.
29		In construing any development, redevelopment, annexation,
30		preannexation or other lawful agreement in effect prior to
31		September 1, 1990, which describes or refers to receipts from a
32		county or municipal retailers' occupation tax, use tax or
33		service occupation tax which now cannot be imposed, such
34		description or reference shall be deemed to include the
35		replacement revenue for such abolished taxes, distributed from
36		the County and Mass Transit District Fund or Local Government

1		Distributive Fund, as the case may be.
2		(Source: P.A. 90-491, eff. 1-1-98; 91-872, eff. 7-1-00.)

3		Section 10. The Use Tax Act is amended by changing Sections
4		3-10 and 9 as follows:
5		(35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
6		Sec. 3-10. Rate of tax. Unless otherwise provided in this
7		Section, the tax imposed by this Act is at the rate of 6.25% of
8		either the selling price or the fair market value, if any, of
9		the tangible personal property. In all cases where property
10		functionally used or consumed is the same as the property that
11		was purchased at retail, then the tax is imposed on the selling
12		price of the property. In all cases where property functionally
13		used or consumed is a by-product or waste product that has been
14		refined, manufactured, or produced from property purchased at
15		retail, then the tax is imposed on the lower of the fair market
16		value, if any, of the specific property so used in this State
17		or on the selling price of the property purchased at retail.
18		For purposes of this Section "fair market value" means the
19		price at which property would change hands between a willing
20		buyer and a willing seller, neither being under any compulsion
21		to buy or sell and both having reasonable knowledge of the
22		relevant facts. The fair market value shall be established by
23		Illinois sales by the taxpayer of the same property as that
24		functionally used or consumed, or if there are no such sales by
25		the taxpayer, then comparable sales or purchases of property of
26		like kind and character in Illinois.
27		Beginning on July 1, 2000 and through December 31, 2000,
28		with respect to motor fuel, as defined in Section 1.1 of the
29		Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
30		the Use Tax Act, the tax is imposed at the rate of 1.25%.
31		With respect to gasohol, the tax imposed by this Act
32		applies to (i) 70% of the proceeds of sales made on or after
33		January 1, 1990, and before July 1, 2003, (ii) 80% of the
34		proceeds of sales made on or after July 1, 2003 and on or

1		before December 31, 2013, and (iii) 100% of the proceeds of
2		sales made thereafter. If, at any time, however, the tax under
3		this Act on sales of gasohol is imposed at the rate of 1.25%,
4		then the tax imposed by this Act applies to 100% of the
5		proceeds of sales of gasohol made during that time.
6		With respect to majority blended ethanol fuel, the tax
7		imposed by this Act does not apply to the proceeds of sales
8		made on or after July 1, 2003 and on or before December 31,
9		2013 but applies to 100% of the proceeds of sales made
10		thereafter.
11		With respect to biodiesel blends with no less than 1% and
12		no more than 10% biodiesel, the tax imposed by this Act applies
13		to (i) 80% of the proceeds of sales made on or after July 1,
14		2003 and on or before December 31, 2013 and (ii) 100% of the
15		proceeds of sales made thereafter. If, at any time, however,
16		the tax under this Act on sales of biodiesel blends with no
17		less than 1% and no more than 10% biodiesel is imposed at the
18		rate of 1.25%, then the tax imposed by this Act applies to 100%
19		of the proceeds of sales of biodiesel blends with no less than
20		1% and no more than 10% biodiesel made during that time.
21		With respect to 100% biodiesel and biodiesel blends with
22		more than 10% but no more than 99% biodiesel, the tax imposed
23		by this Act does not apply to the proceeds of sales made on or
24		after July 1, 2003 and on or before December 31, 2013 but
25		applies to 100% of the proceeds of sales made thereafter.
26		Beginning July 1, 2004, with respect to textbooks required
27		for use at State universities and public community colleges or
28		at institutions of higher learning as defined in the Illinois
29		Financial Assistance Act for Nonpublic Institutions of Higher
30		Learning, the tax is imposed at the rate of 1.25%. The
31		Department may adopt rules necessary to implement and
32		administer the 1.25% rate on textbooks.
33		With respect to food for human consumption that is to be
34		consumed off the premises where it is sold (other than
35		alcoholic beverages, soft drinks, and food that has been
36		prepared for immediate consumption) and prescription and

1		nonprescription medicines, drugs, medical appliances,
2		modifications to a motor vehicle for the purpose of rendering
3		it usable by a disabled person, and insulin, urine testing
4		materials, syringes, and needles used by diabetics, for human
5		use, the tax is imposed at the rate of 1%. For the purposes of
6		this Section, the term "soft drinks" means any complete,
7		finished, ready-to-use, non-alcoholic drink, whether
8		carbonated or not, including but not limited to soda water,
9		cola, fruit juice, vegetable juice, carbonated water, and all
10		other preparations commonly known as soft drinks of whatever
11		kind or description that are contained in any closed or sealed
12		bottle, can, carton, or container, regardless of size. "Soft
13		drinks" does not include coffee, tea, non-carbonated water,
14		infant formula, milk or milk products as defined in the Grade A
15		Pasteurized Milk and Milk Products Act, or drinks containing
16		50% or more natural fruit or vegetable juice.
17		Notwithstanding any other provisions of this Act, "food for
18		human consumption that is to be consumed off the premises where
19		it is sold" includes all food sold through a vending machine,
20		except soft drinks and food products that are dispensed hot
21		from a vending machine, regardless of the location of the
22		vending machine.
23		If the property that is purchased at retail from a retailer
24		is acquired outside Illinois and used outside Illinois before
25		being brought to Illinois for use here and is taxable under
26		this Act, the "selling price" on which the tax is computed
27		shall be reduced by an amount that represents a reasonable
28		allowance for depreciation for the period of prior out-of-state
29		use.
30		(Source: P.A. 93-17, eff. 6-11-03.)
31		(35 ILCS 105/9) (from Ch. 120, par. 439.9)
32		Sec. 9. Except as to motor vehicles, watercraft, aircraft,
33		and trailers that are required to be registered with an agency
34		of this State, each retailer required or authorized to collect
35		the tax imposed by this Act shall pay to the Department the

1		amount of such tax (except as otherwise provided) at the time
2		when he is required to file his return for the period during
3		which such tax was collected, less a discount of 2.1% prior to
4		January 1, 1990, and 1.75% on and after January 1, 1990, or $5
5		per calendar year, whichever is greater, which is allowed to
6		reimburse the retailer for expenses incurred in collecting the
7		tax, keeping records, preparing and filing returns, remitting
8		the tax and supplying data to the Department on request. In the
9		case of retailers who report and pay the tax on a transaction
10		by transaction basis, as provided in this Section, such
11		discount shall be taken with each such tax remittance instead
12		of when such retailer files his periodic return. A retailer
13		need not remit that part of any tax collected by him to the
14		extent that he is required to remit and does remit the tax
15		imposed by the Retailers' Occupation Tax Act, with respect to
16		the sale of the same property.
17		Where such tangible personal property is sold under a
18		conditional sales contract, or under any other form of sale
19		wherein the payment of the principal sum, or a part thereof, is
20		extended beyond the close of the period for which the return is
21		filed, the retailer, in collecting the tax (except as to motor
22		vehicles, watercraft, aircraft, and trailers that are required
23		to be registered with an agency of this State), may collect for
24		each tax return period, only the tax applicable to that part of
25		the selling price actually received during such tax return
26		period.
27		Except as provided in this Section, on or before the
28		twentieth day of each calendar month, such retailer shall file
29		a return for the preceding calendar month. Such return shall be
30		filed on forms prescribed by the Department and shall furnish
31		such information as the Department may reasonably require.
32		The Department may require returns to be filed on a
33		quarterly basis. If so required, a return for each calendar
34		quarter shall be filed on or before the twentieth day of the
35		calendar month following the end of such calendar quarter. The
36		taxpayer shall also file a return with the Department for each

1		of the first two months of each calendar quarter, on or before
2		the twentieth day of the following calendar month, stating:
3		1. The name of the seller;
4		2. The address of the principal place of business from
5		which he engages in the business of selling tangible
6		personal property at retail in this State;
7		3. The total amount of taxable receipts received by him
8		during the preceding calendar month from sales of tangible
9		personal property by him during such preceding calendar
10		month, including receipts from charge and time sales, but
11		less all deductions allowed by law;
12		4. The amount of credit provided in Section 2d of this
13		Act;
14		5. The amount of tax due;
15		5-5. The signature of the taxpayer; and
16		6. Such other reasonable information as the Department
17		may require.
18		If a taxpayer fails to sign a return within 30 days after
19		the proper notice and demand for signature by the Department,
20		the return shall be considered valid and any amount shown to be
21		due on the return shall be deemed assessed.
22		Beginning October 1, 1993, a taxpayer who has an average
23		monthly tax liability of $150,000 or more shall make all
24		payments required by rules of the Department by electronic
25		funds transfer. Beginning October 1, 1994, a taxpayer who has
26		an average monthly tax liability of $100,000 or more shall make
27		all payments required by rules of the Department by electronic
28		funds transfer. Beginning October 1, 1995, a taxpayer who has
29		an average monthly tax liability of $50,000 or more shall make
30		all payments required by rules of the Department by electronic
31		funds transfer. Beginning October 1, 2000, a taxpayer who has
32		an annual tax liability of $200,000 or more shall make all
33		payments required by rules of the Department by electronic
34		funds transfer. The term "annual tax liability" shall be the
35		sum of the taxpayer's liabilities under this Act, and under all
36		other State and local occupation and use tax laws administered

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

1		the Retailers' Occupation Tax Act, the Service Occupation Tax
2		Act, and the Service Use Tax Act was $20,000 or more during the
3		preceding 4 complete calendar quarters, he shall file a return
4		with the Department each month by the 20th day of the month
5		next following the month during which such tax liability is
6		incurred and shall make payment to the Department on or before
7		the 7th, 15th, 22nd and last day of the month during which such
8		liability is incurred. If the month during which such tax
9		liability is incurred began prior to January 1, 1985, each
10		payment shall be in an amount equal to 1/4 of the taxpayer's
11		actual liability for the month or an amount set by the
12		Department not to exceed 1/4 of the average monthly liability
13		of the taxpayer to the Department for the preceding 4 complete
14		calendar quarters (excluding the month of highest liability and
15		the month of lowest liability in such 4 quarter period). If the
16		month during which such tax liability is incurred begins on or
17		after January 1, 1985, and prior to January 1, 1987, each
18		payment shall be in an amount equal to 22.5% of the taxpayer's
19		actual liability for the month or 27.5% of the taxpayer's
20		liability for the same calendar month of the preceding year. If
21		the month during which such tax liability is incurred begins on
22		or after January 1, 1987, and prior to January 1, 1988, each
23		payment shall be in an amount equal to 22.5% of the taxpayer's
24		actual liability for the month or 26.25% of the taxpayer's
25		liability for the same calendar month of the preceding year. If
26		the month during which such tax liability is incurred begins on
27		or after January 1, 1988, and prior to January 1, 1989, or
28		begins on or after January 1, 1996, each payment shall be in an
29		amount equal to 22.5% of the taxpayer's actual liability for
30		the month or 25% of the taxpayer's liability for the same
31		calendar month of the preceding year. If the month during which
32		such tax liability is incurred begins on or after January 1,
33		1989, and prior to January 1, 1996, each payment shall be in an
34		amount equal to 22.5% of the taxpayer's actual liability for
35		the month or 25% of the taxpayer's liability for the same
36		calendar month of the preceding year or 100% of the taxpayer's

1		actual liability for the quarter monthly reporting period. The
2		amount of such quarter monthly payments shall be credited
3		against the final tax liability of the taxpayer's return for
4		that month. Before October 1, 2000, once applicable, the
5		requirement of the making of quarter monthly payments to the
6		Department shall continue until such taxpayer's average
7		monthly liability to the Department during the preceding 4
8		complete calendar quarters (excluding the month of highest
9		liability and the month of lowest liability) is less than
10		$9,000, or until such taxpayer's average monthly liability to
11		the Department as computed for each calendar quarter of the 4
12		preceding complete calendar quarter period is less than
13		$10,000. However, if a taxpayer can show the Department that a
14		substantial change in the taxpayer's business has occurred
15		which causes the taxpayer to anticipate that his average
16		monthly tax liability for the reasonably foreseeable future
17		will fall below the $10,000 threshold stated above, then such
18		taxpayer may petition the Department for change in such
19		taxpayer's reporting status. On and after October 1, 2000, once
20		applicable, the requirement of the making of quarter monthly
21		payments to the Department shall continue until such taxpayer's
22		average monthly liability to the Department during the
23		preceding 4 complete calendar quarters (excluding the month of
24		highest liability and the month of lowest liability) is less
25		than $19,000 or until such taxpayer's average monthly liability
26		to the Department as computed for each calendar quarter of the
27		4 preceding complete calendar quarter period is less than
28		$20,000. However, if a taxpayer can show the Department that a
29		substantial change in the taxpayer's business has occurred
30		which causes the taxpayer to anticipate that his average
31		monthly tax liability for the reasonably foreseeable future
32		will fall below the $20,000 threshold stated above, then such
33		taxpayer may petition the Department for a change in such
34		taxpayer's reporting status. The Department shall change such
35		taxpayer's reporting status unless it finds that such change is
36		seasonal in nature and not likely to be long term. If any such

1		quarter monthly payment is not paid at the time or in the
2		amount required by this Section, then the taxpayer shall be
3		liable for penalties and interest on the difference between the
4		minimum amount due and the amount of such quarter monthly
5		payment actually and timely paid, except insofar as the
6		taxpayer has previously made payments for that month to the
7		Department in excess of the minimum payments previously due as
8		provided in this Section. The Department shall make reasonable
9		rules and regulations to govern the quarter monthly payment
10		amount and quarter monthly payment dates for taxpayers who file
11		on other than a calendar monthly basis.
12		If any such payment provided for in this Section exceeds
13		the taxpayer's liabilities under this Act, the Retailers'
14		Occupation Tax Act, the Service Occupation Tax Act and the
15		Service Use Tax Act, as shown by an original monthly return,
16		the Department shall issue to the taxpayer a credit memorandum
17		no later than 30 days after the date of payment, which
18		memorandum may be submitted by the taxpayer to the Department
19		in payment of tax liability subsequently to be remitted by the
20		taxpayer to the Department or be assigned by the taxpayer to a
21		similar taxpayer under this Act, the Retailers' Occupation Tax
22		Act, the Service Occupation Tax Act or the Service Use Tax Act,
23		in accordance with reasonable rules and regulations to be
24		prescribed by the Department, except that if such excess
25		payment is shown on an original monthly return and is made
26		after December 31, 1986, no credit memorandum shall be issued,
27		unless requested by the taxpayer. If no such request is made,
28		the taxpayer may credit such excess payment against tax
29		liability subsequently to be remitted by the taxpayer to the
30		Department under this Act, the Retailers' Occupation Tax Act,
31		the Service Occupation Tax Act or the Service Use Tax Act, in
32		accordance with reasonable rules and regulations prescribed by
33		the Department. If the Department subsequently determines that
34		all or any part of the credit taken was not actually due to the
35		taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
36		be reduced by 2.1% or 1.75% of the difference between the

1		credit taken and that actually due, and the taxpayer shall be
2		liable for penalties and interest on such difference.
3		If the retailer is otherwise required to file a monthly
4		return and if the retailer's average monthly tax liability to
5		the Department does not exceed $200, the Department may
6		authorize his returns to be filed on a quarter annual basis,
7		with the return for January, February, and March of a given
8		year being due by April 20 of such year; with the return for
9		April, May and June of a given year being due by July 20 of such
10		year; with the return for July, August and September of a given
11		year being due by October 20 of such year, and with the return
12		for October, November and December of a given year being due by
13		January 20 of the following year.
14		If the retailer is otherwise required to file a monthly or
15		quarterly return and if the retailer's average monthly tax
16		liability to the Department does not exceed $50, the Department
17		may authorize his returns to be filed on an annual basis, with
18		the return for a given year being due by January 20 of the
19		following year.
20		Such quarter annual and annual returns, as to form and
21		substance, shall be subject to the same requirements as monthly
22		returns.
23		Notwithstanding any other provision in this Act concerning
24		the time within which a retailer may file his return, in the
25		case of any retailer who ceases to engage in a kind of business
26		which makes him responsible for filing returns under this Act,
27		such retailer shall file a final return under this Act with the
28		Department not more than one month after discontinuing such
29		business.
30		In addition, with respect to motor vehicles, watercraft,
31		aircraft, and trailers that are required to be registered with
32		an agency of this State, every retailer selling this kind of
33		tangible personal property shall file, with the Department,
34		upon a form to be prescribed and supplied by the Department, a
35		separate return for each such item of tangible personal
36		property which the retailer sells, except that if, in the same

1		transaction, (i) a retailer of aircraft, watercraft, motor
2		vehicles or trailers transfers more than one aircraft,
3		watercraft, motor vehicle or trailer to another aircraft,
4		watercraft, motor vehicle or trailer retailer for the purpose
5		of resale or (ii) a retailer of aircraft, watercraft, motor
6		vehicles, or trailers transfers more than one aircraft,
7		watercraft, motor vehicle, or trailer to a purchaser for use as
8		a qualifying rolling stock as provided in Section 3-55 of this
9		Act, then that seller may report the transfer of all the
10		aircraft, watercraft, motor vehicles or trailers involved in
11		that transaction to the Department on the same uniform
12		invoice-transaction reporting return form. For purposes of
13		this Section, "watercraft" means a Class 2, Class 3, or Class 4
14		watercraft as defined in Section 3-2 of the Boat Registration
15		and Safety Act, a personal watercraft, or any boat equipped
16		with an inboard motor.
17		The transaction reporting return in the case of motor
18		vehicles or trailers that are required to be registered with an
19		agency of this State, shall be the same document as the Uniform
20		Invoice referred to in Section 5-402 of the Illinois Vehicle
21		Code and must show the name and address of the seller; the name
22		and address of the purchaser; the amount of the selling price
23		including the amount allowed by the retailer for traded-in
24		property, if any; the amount allowed by the retailer for the
25		traded-in tangible personal property, if any, to the extent to
26		which Section 2 of this Act allows an exemption for the value
27		of traded-in property; the balance payable after deducting such
28		trade-in allowance from the total selling price; the amount of
29		tax due from the retailer with respect to such transaction; the
30		amount of tax collected from the purchaser by the retailer on
31		such transaction (or satisfactory evidence that such tax is not
32		due in that particular instance, if that is claimed to be the
33		fact); the place and date of the sale; a sufficient
34		identification of the property sold; such other information as
35		is required in Section 5-402 of the Illinois Vehicle Code, and
36		such other information as the Department may reasonably

1		require.
2		The transaction reporting return in the case of watercraft
3		and aircraft must show the name and address of the seller; the
4		name and address of the purchaser; the amount of the selling
5		price including the amount allowed by the retailer for
6		traded-in property, if any; the amount allowed by the retailer
7		for the traded-in tangible personal property, if any, to the
8		extent to which Section 2 of this Act allows an exemption for
9		the value of traded-in property; the balance payable after
10		deducting such trade-in allowance from the total selling price;
11		the amount of tax due from the retailer with respect to such
12		transaction; the amount of tax collected from the purchaser by
13		the retailer on such transaction (or satisfactory evidence that
14		such tax is not due in that particular instance, if that is
15		claimed to be the fact); the place and date of the sale, a
16		sufficient identification of the property sold, and such other
17		information as the Department may reasonably require.
18		Such transaction reporting return shall be filed not later
19		than 20 days after the date of delivery of the item that is
20		being sold, but may be filed by the retailer at any time sooner
21		than that if he chooses to do so. The transaction reporting
22		return and tax remittance or proof of exemption from the tax
23		that is imposed by this Act may be transmitted to the
24		Department by way of the State agency with which, or State
25		officer with whom, the tangible personal property must be
26		titled or registered (if titling or registration is required)
27		if the Department and such agency or State officer determine
28		that this procedure will expedite the processing of
29		applications for title or registration.
30		With each such transaction reporting return, the retailer
31		shall remit the proper amount of tax due (or shall submit
32		satisfactory evidence that the sale is not taxable if that is
33		the case), to the Department or its agents, whereupon the
34		Department shall issue, in the purchaser's name, a tax receipt
35		(or a certificate of exemption if the Department is satisfied
36		that the particular sale is tax exempt) which such purchaser

1		may submit to the agency with which, or State officer with
2		whom, he must title or register the tangible personal property
3		that is involved (if titling or registration is required) in
4		support of such purchaser's application for an Illinois
5		certificate or other evidence of title or registration to such
6		tangible personal property.
7		No retailer's failure or refusal to remit tax under this
8		Act precludes a user, who has paid the proper tax to the
9		retailer, from obtaining his certificate of title or other
10		evidence of title or registration (if titling or registration
11		is required) upon satisfying the Department that such user has
12		paid the proper tax (if tax is due) to the retailer. The
13		Department shall adopt appropriate rules to carry out the
14		mandate of this paragraph.
15		If the user who would otherwise pay tax to the retailer
16		wants the transaction reporting return filed and the payment of
17		tax or proof of exemption made to the Department before the
18		retailer is willing to take these actions and such user has not
19		paid the tax to the retailer, such user may certify to the fact
20		of such delay by the retailer, and may (upon the Department
21		being satisfied of the truth of such certification) transmit
22		the information required by the transaction reporting return
23		and the remittance for tax or proof of exemption directly to
24		the Department and obtain his tax receipt or exemption
25		determination, in which event the transaction reporting return
26		and tax remittance (if a tax payment was required) shall be
27		credited by the Department to the proper retailer's account
28		with the Department, but without the 2.1% or 1.75% discount
29		provided for in this Section being allowed. When the user pays
30		the tax directly to the Department, he shall pay the tax in the
31		same amount and in the same form in which it would be remitted
32		if the tax had been remitted to the Department by the retailer.
33		Where a retailer collects the tax with respect to the
34		selling price of tangible personal property which he sells and
35		the purchaser thereafter returns such tangible personal
36		property and the retailer refunds the selling price thereof to

1		the purchaser, such retailer shall also refund, to the
2		purchaser, the tax so collected from the purchaser. When filing
3		his return for the period in which he refunds such tax to the
4		purchaser, the retailer may deduct the amount of the tax so
5		refunded by him to the purchaser from any other use tax which
6		such retailer may be required to pay or remit to the
7		Department, as shown by such return, if the amount of the tax
8		to be deducted was previously remitted to the Department by
9		such retailer. If the retailer has not previously remitted the
10		amount of such tax to the Department, he is entitled to no
11		deduction under this Act upon refunding such tax to the
12		purchaser.
13		Any retailer filing a return under this Section shall also
14		include (for the purpose of paying tax thereon) the total tax
15		covered by such return upon the selling price of tangible
16		personal property purchased by him at retail from a retailer,
17		but as to which the tax imposed by this Act was not collected
18		from the retailer filing such return, and such retailer shall
19		remit the amount of such tax to the Department when filing such
20		return.
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 retailers, who are required to file
24		returns hereunder and also under the Retailers' Occupation Tax
25		Act, to furnish all the return information required by both
26		Acts on the one form.
27		Where the retailer has more than one business registered
28		with the Department under separate registration under this Act,
29		such retailer may not file each return that is due as a single
30		return covering all such registered businesses, but shall file
31		separate returns for each such registered business.
32		Beginning January 1, 1990, each month the Department shall
33		pay into the State and Local Sales Tax Reform Fund, a special
34		fund in the State Treasury which is hereby created, the net
35		revenue realized for the preceding month from the 1% tax on
36		sales of food for human consumption which is to be consumed off

1		the premises where it is sold (other than alcoholic beverages,
2		soft drinks and food which has been prepared for immediate
3		consumption) and prescription and nonprescription medicines,
4		drugs, medical appliances and insulin, urine testing
5		materials, syringes and needles used by diabetics.
6		Beginning January 1, 1990, each month the Department shall
7		pay into the County and Mass Transit District Fund 4% of the
8		net revenue realized for the preceding month from the 6.25%
9		general rate on the selling price of tangible personal property
10		which is purchased outside Illinois at retail from a retailer
11		and which is titled or registered by an agency of this State's
12		government.
13		Beginning January 1, 1990, each month the Department shall
14		pay into the State and Local Sales Tax Reform Fund, a special
15		fund in the State Treasury, 20% of the net revenue realized for
16		the preceding month from the 6.25% general rate on the selling
17		price of tangible personal property, other than tangible
18		personal property which is purchased outside Illinois at retail
19		from a retailer and which is titled or registered by an agency
20		of this State's government.
21		Beginning August 1, 2000, each month the Department shall
22		pay into the State and Local Sales Tax Reform Fund 100% of the
23		net revenue realized for the preceding month from the 1.25%
24		rate on the selling price of motor fuel and gasohol.
25		Beginning August 1, 2004, each month the Department shall
26		pay into the State and Local Sales Tax Reform Fund 100% of the
27		net revenue realized for the preceding month from the 1.25%
28		rate on the selling price of textbooks required for use at
29		State universities and public community colleges or at
30		institutions of higher learning as defined in the Illinois
31		Financial Assistance Act for Nonpublic Institutions of Higher
32		Learning.
33		Beginning January 1, 1990, each month the Department shall
34		pay into the Local Government Tax Fund 16% of the net revenue
35		realized for the preceding month from the 6.25% general rate on
36		the selling price of tangible personal property which is

1		purchased outside Illinois at retail from a retailer and which
2		is titled or registered by an agency of this State's
3		government.
4		Of the remainder of the moneys received by the Department
5		pursuant to this Act, (a) 1.75% thereof shall be paid into the
6		Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
7		and after July 1, 1989, 3.8% thereof shall be paid into the
8		Build Illinois Fund; provided, however, that if in any fiscal
9		year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
10		may be, of the moneys received by the Department and required
11		to be paid into the Build Illinois Fund pursuant to Section 3
12		of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
13		Act, Section 9 of the Service Use Tax Act, and Section 9 of the
14		Service Occupation Tax Act, such Acts being hereinafter called
15		the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
16		may be, of moneys being hereinafter called the "Tax Act
17		Amount", and (2) the amount transferred to the Build Illinois
18		Fund from the State and Local Sales Tax Reform Fund shall be
19		less than the Annual Specified Amount (as defined in Section 3
20		of the Retailers' Occupation Tax Act), an amount equal to the
21		difference shall be immediately paid into the Build Illinois
22		Fund from other moneys received by the Department pursuant to
23		the Tax Acts; and further provided, that if on the last
24		business day of any month the sum of (1) the Tax Act Amount
25		required to be deposited into the Build Illinois Bond Account
26		in the Build Illinois Fund during such month and (2) the amount
27		transferred during such month to the Build Illinois Fund from
28		the State and Local Sales Tax Reform Fund shall have been less
29		than 1/12 of the Annual Specified Amount, an amount equal to
30		the difference shall be immediately paid into the Build
31		Illinois Fund from other moneys received by the Department
32		pursuant to the Tax Acts; and, further provided, that in no
33		event shall the payments required under the preceding proviso
34		result in aggregate payments into the Build Illinois Fund
35		pursuant to this clause (b) for any fiscal year in excess of
36		the greater of (i) the Tax Act Amount or (ii) the Annual

1		Specified Amount for such fiscal year; and, further provided,
2		that the amounts payable into the Build Illinois Fund under
3		this clause (b) shall be payable only until such time as the
4		aggregate amount on deposit under each trust indenture securing
5		Bonds issued and outstanding pursuant to the Build Illinois
6		Bond Act is sufficient, taking into account any future
7		investment income, to fully provide, in accordance with such
8		indenture, for the defeasance of or the payment of the
9		principal of, premium, if any, and interest on the Bonds
10		secured by such indenture and on any Bonds expected to be
11		issued thereafter and all fees and costs payable with respect
12		thereto, all as certified by the Director of the Bureau of the
13		Budget (now Governor's Office of Management and Budget). If on
14		the last business day of any month in which Bonds are
15		outstanding pursuant to the Build Illinois Bond Act, the
16		aggregate of the moneys deposited in the Build Illinois Bond
17		Account in the Build Illinois Fund in such month shall be less
18		than the amount required to be transferred in such month from
19		the Build Illinois Bond Account to the Build Illinois Bond
20		Retirement and Interest Fund pursuant to Section 13 of the
21		Build Illinois Bond Act, an amount equal to such deficiency
22		shall be immediately paid from other moneys received by the
23		Department pursuant to the Tax Acts to the Build Illinois Fund;
24		provided, however, that any amounts paid to the Build Illinois
25		Fund in any fiscal year pursuant to this sentence shall be
26		deemed to constitute payments pursuant to clause (b) of the
27		preceding sentence and shall reduce the amount otherwise
28		payable for such fiscal year pursuant to clause (b) of the
29		preceding sentence. The moneys received by the Department
30		pursuant to this Act and required to be deposited into the
31		Build Illinois Fund are subject to the pledge, claim and charge
32		set forth in Section 12 of the Build Illinois Bond Act.
33		Subject to payment of amounts into the Build Illinois Fund
34		as provided in the preceding paragraph or in any amendment
35		thereto hereafter enacted, the following specified monthly
36		installment of the amount requested in the certificate of the

1		Chairman of the Metropolitan Pier and Exposition Authority
2		provided under Section 8.25f of the State Finance Act, but not
3		in excess of the sums designated as "Total Deposit", shall be
4		deposited in the aggregate from collections under Section 9 of
5		the Use Tax Act, Section 9 of the Service Use Tax Act, Section
6		9 of the Service Occupation Tax Act, and Section 3 of the
7		Retailers' Occupation Tax Act into the McCormick Place
8		Expansion Project Fund in the specified fiscal years.

13		Beginning July 20, 1993 and in each month of each fiscal
14		year thereafter, one-eighth of the amount requested in the
15		certificate of the Chairman of the Metropolitan Pier and
16		Exposition Authority for that fiscal year, less the amount
17		deposited into the McCormick Place Expansion Project Fund by
18		the State Treasurer in the respective month under subsection
19		(g) of Section 13 of the Metropolitan Pier and Exposition
20		Authority Act, plus cumulative deficiencies in the deposits
21		required under this Section for previous months and years,
22		shall be deposited into the McCormick Place Expansion Project
23		Fund, until the full amount requested for the fiscal year, but
24		not in excess of the amount specified above as "Total Deposit",
25		has been deposited.
26		Subject to payment of amounts into the Build Illinois Fund
27		and the McCormick Place Expansion Project Fund pursuant to the
28		preceding paragraphs or in any amendments thereto hereafter
29		enacted, beginning July 1, 1993, the Department shall each
30		month pay into the Illinois Tax Increment Fund 0.27% of 80% of
31		the net revenue realized for the preceding month from the 6.25%
32		general rate on the selling price of tangible personal
33		property.
34		Subject to payment of amounts into the Build Illinois Fund
35		and the McCormick Place Expansion Project Fund pursuant to the
36		preceding paragraphs or in any amendments thereto hereafter

1		enacted, beginning with the receipt of the first report of
2		taxes paid by an eligible business and continuing for a 25-year
3		period, the Department shall each month pay into the Energy
4		Infrastructure Fund 80% of the net revenue realized from the
5		6.25% general rate on the selling price of Illinois-mined coal
6		that was sold to an eligible business. For purposes of this
7		paragraph, the term "eligible business" means a new electric
8		generating facility certified pursuant to Section 605-332 of
9		the Department of Commerce and Economic Opportunity Community
10		Affairs Law of the Civil Administrative Code of Illinois.
11		Of the remainder of the moneys received by the Department
12		pursuant to this Act, 75% thereof shall be paid into the State
13		Treasury and 25% shall be reserved in a special account and
14		used only for the transfer to the Common School Fund as part of
15		the monthly transfer from the General Revenue Fund in
16		accordance with Section 8a of the State Finance Act.
17		As soon as possible after the first day of each month, upon
18		certification of the Department of Revenue, the Comptroller
19		shall order transferred and the Treasurer shall transfer from
20		the General Revenue Fund to the Motor Fuel Tax Fund an amount
21		equal to 1.7% of 80% of the net revenue realized under this Act
22		for the second preceding month. Beginning April 1, 2000, this
23		transfer is no longer required and shall not be made.
24		Net revenue realized for a month shall be the revenue
25		collected by the State pursuant to this Act, less the amount
26		paid out during that month as refunds to taxpayers for
27		overpayment of liability.
28		For greater simplicity of administration, manufacturers,
29		importers and wholesalers whose products are sold at retail in
30		Illinois by numerous retailers, and who wish to do so, may
31		assume the responsibility for accounting and paying to the
32		Department all tax accruing under this Act with respect to such
33		sales, if the retailers who are affected do not make written
34		objection to the Department to this arrangement.
35		(Source: P.A. 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101,
36		eff. 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00;

1		91-901, eff. 1-1-01; 92-12, eff. 7-1-01; 92-16, eff. 6-28-01;
2		92-208, eff. 8-2-01; 92-492, eff. 1-1-02; 92-600, eff. 6-28-02;
3		92-651, eff. 7-11-02; revised 10-15-03.)

4		Section 15. The Service Use Tax Act is amended by changing
5		Sections 3-10 and 9 as follows:
6		(35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
7		Sec. 3-10. Rate of tax. Unless otherwise provided in this
8		Section, the tax imposed by this Act is at the rate of 6.25% of
9		the selling price of tangible personal property transferred as
10		an incident to the sale of service, but, for the purpose of
11		computing this tax, in no event shall the selling price be less
12		than the cost price of the property to the serviceman.
13		Beginning on July 1, 2000 and through December 31, 2000,
14		with respect to motor fuel, as defined in Section 1.1 of the
15		Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
16		the Use Tax Act, the tax is imposed at the rate of 1.25%.
17		With respect to gasohol, as defined in the Use Tax Act, the
18		tax imposed by this Act applies to (i) 70% of the selling price
19		of property transferred as an incident to the sale of service
20		on or after January 1, 1990, and before July 1, 2003, (ii) 80%
21		of the selling price of property transferred as an incident to
22		the sale of service on or after July 1, 2003 and on or before
23		December 31, 2013, and (iii) 100% of the selling price
24		thereafter. If, at any time, however, the tax under this Act on
25		sales of gasohol, as defined in the Use Tax Act, is imposed at
26		the rate of 1.25%, then the tax imposed by this Act applies to
27		100% of the proceeds of sales of gasohol made during that time.
28		With respect to majority blended ethanol fuel, as defined
29		in the Use Tax Act, the tax imposed by this Act does not apply
30		to the selling price of property transferred as an incident to
31		the sale of service on or after July 1, 2003 and on or before
32		December 31, 2013 but applies to 100% of the selling price
33		thereafter.
34		With respect to biodiesel blends, as defined in the Use Tax

1		Act, with no less than 1% and no more than 10% biodiesel, the
2		tax imposed by this Act applies to (i) 80% of the selling price
3		of property transferred as an incident to the sale of service
4		on or after July 1, 2003 and on or before December 31, 2013 and
5		(ii) 100% of the proceeds of the selling price thereafter. If,
6		at any time, however, the tax under this Act on sales of
7		biodiesel blends, as defined in the Use Tax Act, with no less
8		than 1% and no more than 10% biodiesel is imposed at the rate
9		of 1.25%, then the tax imposed by this Act applies to 100% of
10		the proceeds of sales of biodiesel blends with no less than 1%
11		and no more than 10% biodiesel made during that time.
12		With respect to 100% biodiesel, as defined in the Use Tax
13		Act, and biodiesel blends, as defined in the Use Tax Act, with
14		more than 10% but no more than 99% biodiesel, the tax imposed
15		by this Act does not apply to the proceeds of the selling price
16		of property transferred as an incident to the sale of service
17		on or after July 1, 2003 and on or before December 31, 2013 but
18		applies to 100% of the selling price thereafter.
19		Beginning July 1, 2004, with respect to textbooks required
20		for use at State universities and public community colleges or
21		at institutions of higher learning as defined in the Illinois
22		Financial Assistance Act for Nonpublic Institutions of Higher
23		Learning, the tax is imposed at the rate of 1.25%. The
24		Department may adopt rules necessary to implement and
25		administer the 1.25% rate on textbooks.
26		At the election of any registered serviceman made for each
27		fiscal year, sales of service in which the aggregate annual
28		cost price of tangible personal property transferred as an
29		incident to the sales of service is less than 35%, or 75% in
30		the case of servicemen transferring prescription drugs or
31		servicemen engaged in graphic arts production, of the aggregate
32		annual total gross receipts from all sales of service, the tax
33		imposed by this Act shall be based on the serviceman's cost
34		price of the tangible personal property transferred as an
35		incident to the sale of those services.
36		The tax shall be imposed at the rate of 1% on food prepared

1		for immediate consumption and transferred incident to a sale of
2		service subject to this Act or the Service Occupation Tax Act
3		by an entity licensed under the Hospital Licensing Act, the
4		Nursing Home Care Act, or the Child Care Act of 1969. The tax
5		shall also be imposed at the rate of 1% on food for human
6		consumption that is to be consumed off the premises where it is
7		sold (other than alcoholic beverages, soft drinks, and food
8		that has been prepared for immediate consumption and is not
9		otherwise included in this paragraph) and prescription and
10		nonprescription medicines, drugs, medical appliances,
11		modifications to a motor vehicle for the purpose of rendering
12		it usable by a disabled person, and insulin, urine testing
13		materials, syringes, and needles used by diabetics, for human
14		use. For the purposes of this Section, the term "soft drinks"
15		means any complete, finished, ready-to-use, non-alcoholic
16		drink, whether carbonated or not, including but not limited to
17		soda water, cola, fruit juice, vegetable juice, carbonated
18		water, and all other preparations commonly known as soft drinks
19		of whatever kind or description that are contained in any
20		closed or sealed bottle, can, carton, or container, regardless
21		of size. "Soft drinks" does not include coffee, tea,
22		non-carbonated water, infant formula, milk or milk products as
23		defined in the Grade A Pasteurized Milk and Milk Products Act,
24		or drinks containing 50% or more natural fruit or vegetable
25		juice.
26		Notwithstanding any other provisions of this Act, "food for
27		human consumption that is to be consumed off the premises where
28		it is sold" includes all food sold through a vending machine,
29		except soft drinks and food products that are dispensed hot
30		from a vending machine, regardless of the location of the
31		vending machine.
32		If the property that is acquired from a serviceman is
33		acquired outside Illinois and used outside Illinois before
34		being brought to Illinois for use here and is taxable under
35		this Act, the "selling price" on which the tax is computed
36		shall be reduced by an amount that represents a reasonable

1		allowance for depreciation for the period of prior out-of-state
2		use.
3		(Source: P.A. 93-17, eff. 6-11-03.)
4		(35 ILCS 110/9) (from Ch. 120, par. 439.39)
5		Sec. 9. Each serviceman required or authorized to collect
6		the tax herein imposed shall pay to the Department the amount
7		of such tax (except as otherwise provided) at the time when he
8		is required to file his return for the period during which such
9		tax was collected, less a discount of 2.1% prior to January 1,
10		1990 and 1.75% on and after January 1, 1990, or $5 per calendar
11		year, whichever is greater, which is allowed to reimburse the
12		serviceman for expenses incurred in collecting the tax, keeping
13		records, preparing and filing returns, remitting the tax and
14		supplying data to the Department on request. A serviceman need
15		not remit that part of any tax collected by him to the extent
16		that he is required to pay and does pay the tax imposed by the
17		Service Occupation Tax Act with respect to his sale of service
18		involving the incidental transfer by him of the same property.
19		Except as provided hereinafter in this Section, on or
20		before the twentieth day of each calendar month, such
21		serviceman shall file a return for the preceding calendar month
22		in accordance with reasonable Rules and Regulations to be
23		promulgated by the Department. Such return shall be filed on a
24		form prescribed by the Department and shall contain such
25		information as the Department may reasonably require.
26		The Department may require returns to be filed on a
27		quarterly basis. If so required, a return for each calendar
28		quarter shall be filed on or before the twentieth day of the
29		calendar month following the end of such calendar quarter. The
30		taxpayer shall also file a return with the Department for each
31		of the first two months of each calendar quarter, on or before
32		the twentieth day of the following calendar month, stating:
33		1. The name of the seller;
34		2. The address of the principal place of business from
35		which he engages in business as a serviceman in this State;

1		3. The total amount of taxable receipts received by him
2		during the preceding calendar month, including receipts
3		from charge and time sales, but less all deductions allowed
4		by law;
5		4. The amount of credit provided in Section 2d of this
6		Act;
7		5. The amount of tax due;
8		5-5. The signature of the taxpayer; and
9		6. Such other reasonable information as the Department
10		may require.
11		If a taxpayer fails to sign a return within 30 days after
12		the proper notice and demand for signature by the Department,
13		the return shall be considered valid and any amount shown to be
14		due on the return shall be deemed assessed.
15		Beginning October 1, 1993, a taxpayer who has an average
16		monthly tax liability of $150,000 or more shall make all
17		payments required by rules of the Department by electronic
18		funds transfer. Beginning October 1, 1994, a taxpayer who has
19		an average monthly tax liability of $100,000 or more shall make
20		all payments required by rules of the Department by electronic
21		funds transfer. Beginning October 1, 1995, a taxpayer who has
22		an average monthly tax liability of $50,000 or more shall make
23		all payments required by rules of the Department by electronic
24		funds transfer. Beginning October 1, 2000, a taxpayer who has
25		an annual tax liability of $200,000 or more shall make all
26		payments required by rules of the Department by electronic
27		funds transfer. The term "annual tax liability" shall be the
28		sum of the taxpayer's liabilities under this Act, and under all
29		other State and local occupation and use tax laws administered
30		by the Department, for the immediately preceding calendar year.
31		The term "average monthly tax liability" means the sum of the
32		taxpayer's liabilities under this Act, and under all other
33		State and local occupation and use tax laws administered by the
34		Department, for the immediately preceding calendar year
35		divided by 12. Beginning on October 1, 2002, a taxpayer who has
36		a tax liability in the amount set forth in subsection (b) of

1		Section 2505-210 of the Department of Revenue Law shall make
2		all payments required by rules of the Department by electronic
3		funds transfer.
4		Before August 1 of each year beginning in 1993, the
5		Department shall notify all taxpayers required to make payments
6		by electronic funds transfer. All taxpayers required to make
7		payments by electronic funds transfer shall make those payments
8		for a minimum of one year beginning on October 1.
9		Any taxpayer not required to make payments by electronic
10		funds transfer may make payments by electronic funds transfer
11		with the permission of the Department.
12		All taxpayers required to make payment by electronic funds
13		transfer and any taxpayers authorized to voluntarily make
14		payments by electronic funds transfer shall make those payments
15		in the manner authorized by the Department.
16		The Department shall adopt such rules as are necessary to
17		effectuate a program of electronic funds transfer and the
18		requirements of this Section.
19		If the serviceman is otherwise required to file a monthly
20		return and if the serviceman's average monthly tax liability to
21		the Department does not exceed $200, the Department may
22		authorize his returns to be filed on a quarter annual basis,
23		with the return for January, February and March of a given year
24		being due by April 20 of such year; with the return for April,
25		May and June of a given year being due by July 20 of such year;
26		with the return for July, August and September of a given year
27		being due by October 20 of such year, and with the return for
28		October, November and December of a given year being due by
29		January 20 of the following year.
30		If the serviceman is otherwise required to file a monthly
31		or quarterly return and if the serviceman's average monthly tax
32		liability to the Department does not exceed $50, the Department
33		may authorize his returns to be filed on an annual basis, with
34		the return for a given year being due by January 20 of the
35		following year.
36		Such quarter annual and annual returns, as to form and

1		substance, shall be subject to the same requirements as monthly
2		returns.
3		Notwithstanding any other provision in this Act concerning
4		the time within which a serviceman may file his return, in the
5		case of any serviceman who ceases to engage in a kind of
6		business which makes him responsible for filing returns under
7		this Act, such serviceman shall file a final return under this
8		Act with the Department not more than 1 month after
9		discontinuing such business.
10		Where a serviceman collects the tax with respect to the
11		selling price of property which he sells and the purchaser
12		thereafter returns such property and the serviceman refunds the
13		selling price thereof to the purchaser, such serviceman shall
14		also refund, to the purchaser, the tax so collected from the
15		purchaser. When filing his return for the period in which he
16		refunds such tax to the purchaser, the serviceman may deduct
17		the amount of the tax so refunded by him to the purchaser from
18		any other Service Use Tax, Service Occupation Tax, retailers'
19		occupation tax or use tax which such serviceman may be required
20		to pay or remit to the Department, as shown by such return,
21		provided that the amount of the tax to be deducted shall
22		previously have been remitted to the Department by such
23		serviceman. If the serviceman shall not previously have
24		remitted the amount of such tax to the Department, he shall be
25		entitled to no deduction hereunder upon refunding such tax to
26		the purchaser.
27		Any serviceman filing a return hereunder shall also include
28		the total tax upon the selling price of tangible personal
29		property purchased for use by him as an incident to a sale of
30		service, and such serviceman shall remit the amount of such tax
31		to the Department when filing such return.
32		If experience indicates such action to be practicable, the
33		Department may prescribe and furnish a combination or joint
34		return which will enable servicemen, who are required to file
35		returns hereunder and also under the Service Occupation Tax
36		Act, to furnish all the return information required by both

1		Acts on the one form.
2		Where the serviceman has more than one business registered
3		with the Department under separate registration hereunder,
4		such serviceman shall not file each return that is due as a
5		single return covering all such registered businesses, but
6		shall file separate returns for each such registered business.
7		Beginning January 1, 1990, each month the Department shall
8		pay into the State and Local Tax Reform Fund, a special fund in
9		the State Treasury, the net revenue realized for the preceding
10		month from the 1% tax on sales of food for human consumption
11		which is to be consumed off the premises where it is sold
12		(other than alcoholic beverages, soft drinks and food which has
13		been prepared for immediate consumption) and prescription and
14		nonprescription medicines, drugs, medical appliances and
15		insulin, urine testing materials, syringes and needles used by
16		diabetics.
17		Beginning January 1, 1990, each month the Department shall
18		pay into the State and Local Sales Tax Reform Fund 20% of the
19		net revenue realized for the preceding month from the 6.25%
20		general rate on transfers of tangible personal property, other
21		than tangible personal property which is purchased outside
22		Illinois at retail from a retailer and which is titled or
23		registered by an agency of this State's government.
24		Beginning August 1, 2000, each month the Department shall
25		pay into the State and Local Sales Tax Reform Fund 100% of the
26		net revenue realized for the preceding month from the 1.25%
27		rate on the selling price of motor fuel and gasohol.
28		Beginning August 1, 2004, each month the Department shall
29		pay into the State and Local Sales Tax Reform Fund 100% of the
30		net revenue realized for the preceding month from the 1.25%
31		rate on the selling price of textbooks required for use at
32		State universities and public community colleges or at
33		institutions of higher learning as defined in the Illinois
34		Financial Assistance Act for Nonpublic Institutions of Higher
35		Learning.
36		Of the remainder of the moneys received by the Department

1		pursuant to this Act, (a) 1.75% thereof shall be paid into the
2		Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
3		and after July 1, 1989, 3.8% thereof shall be paid into the
4		Build Illinois Fund; provided, however, that if in any fiscal
5		year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
6		may be, of the moneys received by the Department and required
7		to be paid into the Build Illinois Fund pursuant to Section 3
8		of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
9		Act, Section 9 of the Service Use Tax Act, and Section 9 of the
10		Service Occupation Tax Act, such Acts being hereinafter called
11		the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
12		may be, of moneys being hereinafter called the "Tax Act
13		Amount", and (2) the amount transferred to the Build Illinois
14		Fund from the State and Local Sales Tax Reform Fund shall be
15		less than the Annual Specified Amount (as defined in Section 3
16		of the Retailers' Occupation Tax Act), 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 if on the last
20		business day of any month the sum of (1) the Tax Act Amount
21		required to be deposited into the Build Illinois Bond Account
22		in the Build Illinois Fund during such month and (2) the amount
23		transferred during such month to the Build Illinois Fund from
24		the State and Local Sales Tax Reform Fund shall have been less
25		than 1/12 of the Annual Specified Amount, an amount equal to
26		the difference shall be immediately paid into the Build
27		Illinois Fund from other moneys received by the Department
28		pursuant to the Tax Acts; and, further provided, that in no
29		event shall the payments required under the preceding proviso
30		result in aggregate payments into the Build Illinois Fund
31		pursuant to this clause (b) for any fiscal year in excess of
32		the greater of (i) the Tax Act Amount or (ii) the Annual
33		Specified Amount for such fiscal year; and, further provided,
34		that the amounts payable into the Build Illinois Fund under
35		this clause (b) shall be payable only until such time as the
36		aggregate amount on deposit under each trust indenture securing

1		Bonds issued and outstanding pursuant to the Build Illinois
2		Bond Act is sufficient, taking into account any future
3		investment income, to fully provide, in accordance with such
4		indenture, for the defeasance of or the payment of the
5		principal of, premium, if any, and interest on the Bonds
6		secured by such indenture and on any Bonds expected to be
7		issued thereafter and all fees and costs payable with respect
8		thereto, all as certified by the Director of the Bureau of the
9		Budget (now Governor's Office of Management and Budget). If on
10		the last business day of any month in which Bonds are
11		outstanding pursuant to the Build Illinois Bond Act, the
12		aggregate of the moneys deposited in the Build Illinois Bond
13		Account in the Build Illinois Fund in such month shall be less
14		than the amount required to be transferred in such month from
15		the Build Illinois Bond Account to the Build Illinois Bond
16		Retirement and Interest Fund pursuant to Section 13 of the
17		Build Illinois Bond Act, an amount equal to such deficiency
18		shall be immediately paid from other moneys received by the
19		Department pursuant to the Tax Acts to the Build Illinois Fund;
20		provided, however, that any amounts paid to the Build Illinois
21		Fund in any fiscal year pursuant to this sentence shall be
22		deemed to constitute payments pursuant to clause (b) of the
23		preceding sentence and shall reduce the amount otherwise
24		payable for such fiscal year pursuant to clause (b) of the
25		preceding sentence. The moneys received by the Department
26		pursuant to this Act and required to be deposited into the
27		Build Illinois Fund are subject to the pledge, claim and charge
28		set forth in Section 12 of the Build Illinois Bond Act.
29		Subject to payment of amounts into the Build Illinois Fund
30		as provided in the preceding paragraph or in any amendment
31		thereto hereafter enacted, the following specified monthly
32		installment of the amount requested in the certificate of the
33		Chairman of the Metropolitan Pier and Exposition Authority
34		provided under Section 8.25f of the State Finance Act, but not
35		in excess of the sums designated as "Total Deposit", shall be
36		deposited in the aggregate from collections under Section 9 of

1		the Use Tax Act, Section 9 of the Service Use Tax Act, Section
2		9 of the Service Occupation Tax Act, and Section 3 of the
3		Retailers' Occupation Tax Act into the McCormick Place
4		Expansion Project Fund in the specified fiscal years.

9		Beginning July 20, 1993 and in each month of each fiscal
10		year thereafter, one-eighth of the amount requested in the
11		certificate of the Chairman of the Metropolitan Pier and
12		Exposition Authority for that fiscal year, less the amount
13		deposited into the McCormick Place Expansion Project Fund by
14		the State Treasurer in the respective month under subsection
15		(g) of Section 13 of the Metropolitan Pier and Exposition
16		Authority Act, plus cumulative deficiencies in the deposits
17		required under this Section for previous months and years,
18		shall be deposited into the McCormick Place Expansion Project
19		Fund, until the full amount requested for the fiscal year, but
20		not in excess of the amount specified above as "Total Deposit",
21		has been deposited.
22		Subject to payment of amounts into the Build Illinois Fund
23		and the McCormick Place Expansion Project Fund pursuant to the
24		preceding paragraphs or in any amendments thereto hereafter
25		enacted, beginning July 1, 1993, the Department shall each
26		month pay into the Illinois Tax Increment Fund 0.27% of 80% of
27		the net revenue realized for the preceding month from the 6.25%
28		general rate on the selling price of tangible personal
29		property.
30		Subject to payment of amounts into the Build Illinois Fund
31		and the McCormick Place Expansion Project Fund pursuant to the
32		preceding paragraphs or in any amendments thereto hereafter
33		enacted, beginning with the receipt of the first report of
34		taxes paid by an eligible business and continuing for a 25-year
35		period, the Department shall each month pay into the Energy
36		Infrastructure Fund 80% of the net revenue realized from the

1		6.25% general rate on the selling price of Illinois-mined coal
2		that was sold to an eligible business. For purposes of this
3		paragraph, the term "eligible business" means a new electric
4		generating facility certified pursuant to Section 605-332 of
5		the Department of Commerce and Economic Opportunity Community
6		Affairs Law of the Civil Administrative Code of Illinois.
7		All remaining moneys received by the Department pursuant to
8		this Act shall be paid into the General Revenue Fund of the
9		State Treasury.
10		As soon as possible after the first day of each month, upon
11		certification of the Department of Revenue, the Comptroller
12		shall order transferred and the Treasurer shall transfer from
13		the General Revenue Fund to the Motor Fuel Tax Fund an amount
14		equal to 1.7% of 80% of the net revenue realized under this Act
15		for the second preceding month. Beginning April 1, 2000, this
16		transfer is no longer required and shall not be made.
17		Net revenue realized for a month shall be the revenue
18		collected by the State pursuant to this Act, less the amount
19		paid out during that month as refunds to taxpayers for
20		overpayment of liability.
21		(Source: P.A. 92-12, eff. 7-1-01; 92-208, eff. 8-2-01; 92-492,
22		eff. 1-1-02; 92-600, eff. 6-28-02; 92-651, eff. 7-11-02;
23		revised 10-15-03.)

24		Section 20. The Service Occupation Tax Act is amended by
25		changing Sections 3-10 and 9 as follows:
26		(35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
27		Sec. 3-10. Rate of tax. Unless otherwise provided in this
28		Section, the tax imposed by this Act is at the rate of 6.25% of
29		the "selling price", as defined in Section 2 of the Service Use
30		Tax Act, of the tangible personal property. For the purpose of
31		computing this tax, in no event shall the "selling price" be
32		less than the cost price to the serviceman of the tangible
33		personal property transferred. The selling price of each item
34		of tangible personal property transferred as an incident of a

1		sale of service may be shown as a distinct and separate item on
2		the serviceman's billing to the service customer. If the
3		selling price is not so shown, the selling price of the
4		tangible personal property is deemed to be 50% of the
5		serviceman's entire billing to the service customer. When,
6		however, a serviceman contracts to design, develop, and produce
7		special order machinery or equipment, the tax imposed by this
8		Act shall be based on the serviceman's cost price of the
9		tangible personal property transferred incident to the
10		completion of the contract.
11		Beginning on July 1, 2000 and through December 31, 2000,
12		with respect to motor fuel, as defined in Section 1.1 of the
13		Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
14		the Use Tax Act, the tax is imposed at the rate of 1.25%.
15		With respect to gasohol, as defined in the Use Tax Act, the
16		tax imposed by this Act shall apply to (i) 70% of the cost
17		price of property transferred as an incident to the sale of
18		service on or after January 1, 1990, and before July 1, 2003,
19		(ii) 80% of the selling price of property transferred as an
20		incident to the sale of service on or after July 1, 2003 and on
21		or before December 31, 2013, and (iii) 100% of the cost price
22		thereafter. If, at any time, however, the tax under this Act on
23		sales of gasohol, as defined in the Use Tax Act, is imposed at
24		the rate of 1.25%, then the tax imposed by this Act applies to
25		100% of the proceeds of sales of gasohol made during that time.
26		With respect to majority blended ethanol fuel, as defined
27		in the Use Tax Act, the tax imposed by this Act does not apply
28		to the selling price of property transferred as an incident to
29		the sale of service on or after July 1, 2003 and on or before
30		December 31, 2013 but applies to 100% of the selling price
31		thereafter.
32		With respect to biodiesel blends, as defined in the Use Tax
33		Act, with no less than 1% and no more than 10% biodiesel, the
34		tax imposed by this Act applies to (i) 80% of the selling price
35		of property transferred as an incident to the sale of service
36		on or after July 1, 2003 and on or before December 31, 2013 and

1		(ii) 100% of the proceeds of the selling price thereafter. If,
2		at any time, however, the tax under this Act on sales of
3		biodiesel blends, as defined in the Use Tax Act, with no less
4		than 1% and no more than 10% biodiesel is imposed at the rate
5		of 1.25%, then the tax imposed by this Act applies to 100% of
6		the proceeds of sales of biodiesel blends with no less than 1%
7		and no more than 10% biodiesel made during that time.
8		With respect to 100% biodiesel, as defined in the Use Tax
9		Act, and biodiesel blends, as defined in the Use Tax Act, with
10		more than 10% but no more than 99% biodiesel material, the tax
11		imposed by this Act does not apply to the proceeds of the
12		selling price of property transferred as an incident to the
13		sale of service on or after July 1, 2003 and on or before
14		December 31, 2013 but applies to 100% of the selling price
15		thereafter.
16		Beginning July 1, 2004, with respect to textbooks required
17		for use at State universities and public community colleges or
18		at institutions of higher learning as defined in the Illinois
19		Financial Assistance Act for Nonpublic Institutions of Higher
20		Learning, the tax is imposed at the rate of 1.25%. The
21		Department may adopt rules necessary to implement and
22		administer the 1.25% rate on textbooks.
23		At the election of any registered serviceman made for each
24		fiscal year, sales of service in which the aggregate annual
25		cost price of tangible personal property transferred as an
26		incident to the sales of service is less than 35%, or 75% in
27		the case of servicemen transferring prescription drugs or
28		servicemen engaged in graphic arts production, of the aggregate
29		annual total gross receipts from all sales of service, the tax
30		imposed by this Act shall be based on the serviceman's cost
31		price of the tangible personal property transferred incident to
32		the sale of those services.
33		The tax shall be imposed at the rate of 1% on food prepared
34		for immediate consumption and transferred incident to a sale of
35		service subject to this Act or the Service Occupation Tax Act
36		by an entity licensed under the Hospital Licensing Act, the

1		Nursing Home Care Act, or the Child Care Act of 1969. The tax
2		shall also be imposed at the rate of 1% on food for human
3		consumption that is to be consumed off the premises where it is
4		sold (other than alcoholic beverages, soft drinks, and food
5		that has been prepared for immediate consumption and is not
6		otherwise included in this paragraph) and prescription and
7		nonprescription medicines, drugs, medical appliances,
8		modifications to a motor vehicle for the purpose of rendering
9		it usable by a disabled person, and insulin, urine testing
10		materials, syringes, and needles used by diabetics, for human
11		use. For the purposes of this Section, the term "soft drinks"
12		means any complete, finished, ready-to-use, non-alcoholic
13		drink, whether carbonated or not, including but not limited to
14		soda water, cola, fruit juice, vegetable juice, carbonated
15		water, and all other preparations commonly known as soft drinks
16		of whatever kind or description that are contained in any
17		closed or sealed can, carton, or container, regardless of size.
18		"Soft drinks" does not include coffee, tea, non-carbonated
19		water, infant formula, milk or milk products as defined in the
20		Grade A Pasteurized Milk and Milk Products Act, or drinks
21		containing 50% or more natural fruit or vegetable juice.
22		Notwithstanding any other provisions of this Act, "food for
23		human consumption that is to be consumed off the premises where
24		it is sold" includes all food sold through a vending machine,
25		except soft drinks and food products that are dispensed hot
26		from a vending machine, regardless of the location of the
27		vending machine.
28		(Source: P.A. 93-17, eff. 6-11-03.)
29		(35 ILCS 115/9) (from Ch. 120, par. 439.109)
30		Sec. 9. Each serviceman required or authorized to collect
31		the tax herein imposed shall pay to the Department the amount
32		of such tax at the time when he is required to file his return
33		for the period during which such tax was collectible, less a
34		discount of 2.1% prior to January 1, 1990, and 1.75% on and
35		after January 1, 1990, or $5 per calendar year, whichever is

1		greater, which is allowed to reimburse the serviceman for
2		expenses incurred in collecting the tax, keeping records,
3		preparing and filing returns, remitting the tax and supplying
4		data to the Department on request.
5		Where such tangible personal property is sold under a
6		conditional sales contract, or under any other form of sale
7		wherein the payment of the principal sum, or a part thereof, is
8		extended beyond the close of the period for which the return is
9		filed, the serviceman, in collecting the tax may collect, for
10		each tax return period, only the tax applicable to the part of
11		the selling price actually received during such tax return
12		period.
13		Except as provided hereinafter in this Section, on or
14		before the twentieth day of each calendar month, such
15		serviceman shall file a return for the preceding calendar month
16		in accordance with reasonable rules and regulations to be
17		promulgated by the Department of Revenue. Such return shall be
18		filed on a form prescribed by the Department and shall contain
19		such information as the Department may reasonably require.
20		The Department may require returns to be filed on a
21		quarterly basis. If so required, a return for each calendar
22		quarter shall be filed on or before the twentieth day of the
23		calendar month following the end of such calendar quarter. The
24		taxpayer shall also file a return with the Department for each
25		of the first two months of each calendar quarter, on or before
26		the twentieth day of the following calendar month, stating:
27		1. The name of the seller;
28		2. The address of the principal place of business from
29		which he engages in business as a serviceman in this State;
30		3. The total amount of taxable receipts received by him
31		during the preceding calendar month, including receipts
32		from charge and time sales, but less all deductions allowed
33		by law;
34		4. The amount of credit provided in Section 2d of this
35		Act;
36		5. The amount of tax due;

1		5-5. The signature of the taxpayer; and
2		6. Such other reasonable information as the Department
3		may require.
4		If a taxpayer fails to sign a return within 30 days after
5		the proper notice and demand for signature by the Department,
6		the return shall be considered valid and any amount shown to be
7		due on the return shall be deemed assessed.
8		Prior to October 1, 2003, a serviceman may accept a
9		Manufacturer's Purchase Credit certification from a purchaser
10		in satisfaction of Service Use Tax as provided in Section 3-70
11		of the Service Use Tax Act if the purchaser provides the
12		appropriate documentation as required by Section 3-70 of the
13		Service Use Tax Act. A Manufacturer's Purchase Credit
14		certification, accepted prior to October 1, 2003 by a
15		serviceman as provided in Section 3-70 of the Service Use Tax
16		Act, may be used by that serviceman to satisfy Service
17		Occupation Tax liability in the amount claimed in the
18		certification, not to exceed 6.25% of the receipts subject to
19		tax from a qualifying purchase. A Manufacturer's Purchase
20		Credit reported on any original or amended return filed under
21		this Act after October 20, 2003 shall be disallowed. No
22		Manufacturer's Purchase Credit may be used after September 30,
23		2003 to satisfy any tax liability imposed under this Act,
24		including any audit liability.
25		If the serviceman's average monthly tax liability to the
26		Department does not exceed $200, the Department may authorize
27		his returns to be filed on a quarter annual basis, with the
28		return for January, February and March of a given year being
29		due by April 20 of such year; with the return for April, May
30		and June of a given year being due by July 20 of such year; with
31		the return for July, August and September of a given year being
32		due by October 20 of such year, and with the return for
33		October, November and December of a given year being due by
34		January 20 of the following year.
35		If the serviceman's average monthly tax liability to the
36		Department does not exceed $50, the Department may authorize

1		his returns to be filed on an annual basis, with the return for
2		a given year being due by January 20 of the following year.
3		Such quarter annual and annual returns, as to form and
4		substance, shall be subject to the same requirements as monthly
5		returns.
6		Notwithstanding any other provision in this Act concerning
7		the time within which a serviceman may file his return, in the
8		case of any serviceman who ceases to engage in a kind of
9		business which makes him responsible for filing returns under
10		this Act, such serviceman shall file a final return under this
11		Act with the Department not more than 1 month after
12		discontinuing such business.
13		Beginning October 1, 1993, a taxpayer who has an average
14		monthly tax liability of $150,000 or more shall make all
15		payments required by rules of the Department by electronic
16		funds transfer. Beginning October 1, 1994, a taxpayer who has
17		an average monthly tax liability of $100,000 or more shall make
18		all payments required by rules of the Department by electronic
19		funds transfer. Beginning October 1, 1995, a taxpayer who has
20		an average monthly tax liability of $50,000 or more shall make
21		all payments required by rules of the Department by electronic
22		funds transfer. Beginning October 1, 2000, a taxpayer who has
23		an annual tax liability of $200,000 or more shall make all
24		payments required by rules of the Department by electronic
25		funds transfer. The term "annual tax liability" shall be the
26		sum of the taxpayer's liabilities under this Act, and under all
27		other State and local occupation and use tax laws administered
28		by the Department, for the immediately preceding calendar year.
29		The term "average monthly tax liability" means the sum of the
30		taxpayer's liabilities under this Act, and under all other
31		State and local occupation and use tax laws administered by the
32		Department, for the immediately preceding calendar year
33		divided by 12. Beginning on October 1, 2002, a taxpayer who has
34		a tax liability in the amount set forth in subsection (b) of
35		Section 2505-210 of the Department of Revenue Law shall make
36		all payments required by rules of the Department by electronic

1		funds transfer.
2		Before August 1 of each year beginning in 1993, the
3		Department shall notify all taxpayers required to make payments
4		by electronic funds transfer. All taxpayers required to make
5		payments by electronic funds transfer shall make those payments
6		for a minimum of one year beginning on October 1.
7		Any taxpayer not required to make payments by electronic
8		funds transfer may make payments by electronic funds transfer
9		with the permission of the Department.
10		All taxpayers required to make payment by electronic funds
11		transfer and any taxpayers authorized to voluntarily make
12		payments by electronic funds transfer shall make those payments
13		in the manner authorized by the Department.
14		The Department shall adopt such rules as are necessary to
15		effectuate a program of electronic funds transfer and the
16		requirements of this Section.
17		Where a serviceman collects the tax with respect to the
18		selling price of tangible personal property which he sells and
19		the purchaser thereafter returns such tangible personal
20		property and the serviceman refunds the selling price thereof
21		to the purchaser, such serviceman shall also refund, to the
22		purchaser, the tax so collected from the purchaser. When filing
23		his return for the period in which he refunds such tax to the
24		purchaser, the serviceman may deduct the amount of the tax so
25		refunded by him to the purchaser from any other Service
26		Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
27		Use Tax which such serviceman may be required to pay or remit
28		to the Department, as shown by such return, provided that the
29		amount of the tax to be deducted shall previously have been
30		remitted to the Department by such serviceman. If the
31		serviceman shall not previously have remitted the amount of
32		such tax to the Department, he shall be entitled to no
33		deduction hereunder upon refunding such tax to the purchaser.
34		If experience indicates such action to be practicable, the
35		Department may prescribe and furnish a combination or joint
36		return which will enable servicemen, who are required to file

1		returns hereunder and also under the Retailers' Occupation Tax
2		Act, the Use Tax Act or the Service Use Tax Act, to furnish all
3		the return information required by all said Acts on the one
4		form.
5		Where the serviceman has more than one business registered
6		with the Department under separate registrations hereunder,
7		such serviceman shall file separate returns for each registered
8		business.
9		Beginning January 1, 1990, each month the Department shall
10		pay into the Local Government Tax Fund the revenue realized for
11		the preceding month from the 1% tax on sales of food for human
12		consumption which is to be consumed off the premises where it
13		is sold (other than alcoholic beverages, soft drinks and food
14		which has been prepared for immediate consumption) and
15		prescription and nonprescription medicines, drugs, medical
16		appliances and insulin, urine testing materials, syringes and
17		needles used by diabetics.
18		Beginning January 1, 1990, each month the Department shall
19		pay into the County and Mass Transit District Fund 4% of the
20		revenue realized for the preceding month from the 6.25% general
21		rate.
22		Beginning August 1, 2000, each month the Department shall
23		pay into the County and Mass Transit District Fund 20% of the
24		net revenue realized for the preceding month from the 1.25%
25		rate on the selling price of motor fuel and gasohol.
26		Beginning August 1, 2004, each month the Department shall
27		pay into the County and Mass Transit District Fund 20% of the
28		net revenue realized for the preceding month from the 1.25%
29		rate on the selling price of textbooks required for use at
30		State universities and public community colleges or at
31		institutions of higher learning as defined in the Illinois
32		Financial Assistance Act for Nonpublic Institutions of Higher
33		Learning.
34		Beginning January 1, 1990, each month the Department shall
35		pay into the Local Government Tax Fund 16% of the revenue
36		realized for the preceding month from the 6.25% general rate on

1		transfers of tangible personal property.
2		Beginning August 1, 2000, each month the Department shall
3		pay into the Local Government Tax Fund 80% of the net revenue
4		realized for the preceding month from the 1.25% rate on the
5		selling price of motor fuel and gasohol.
6		Beginning August 1, 2004, each month the Department shall
7		pay into the Local Government Tax Fund 80% of the net revenue
8		realized for the preceding month from the 1.25% rate on the
9		selling price of textbooks required for use at State
10		universities and public community colleges or at institutions
11		of higher learning as defined in the Illinois Financial
12		Assistance Act for Nonpublic Institutions of Higher Learning.
13		Of the remainder of the moneys received by the Department
14		pursuant to this Act, (a) 1.75% thereof shall be paid into the
15		Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
16		and after July 1, 1989, 3.8% thereof shall be paid into the
17		Build Illinois Fund; provided, however, that if in any fiscal
18		year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
19		may be, of the moneys received by the Department and required
20		to be paid into the Build Illinois Fund pursuant to Section 3
21		of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
22		Act, Section 9 of the Service Use Tax Act, and Section 9 of the
23		Service Occupation Tax Act, such Acts being hereinafter called
24		the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
25		may be, of moneys being hereinafter called the "Tax Act
26		Amount", and (2) the amount transferred to the Build Illinois
27		Fund from the State and Local Sales Tax Reform Fund shall be
28		less than the Annual Specified Amount (as defined in Section 3
29		of the Retailers' Occupation Tax Act), an amount equal to the
30		difference shall be immediately paid into the Build Illinois
31		Fund from other moneys received by the Department pursuant to
32		the Tax Acts; and further provided, that if on the last
33		business day of any month the sum of (1) the Tax Act Amount
34		required to be deposited into the Build Illinois Account in the
35		Build Illinois Fund during such month and (2) the amount
36		transferred during such month to the Build Illinois Fund from

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

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

22		Beginning July 20, 1993 and in each month of each fiscal
23		year thereafter, one-eighth of the amount requested in the
24		certificate of the Chairman of the Metropolitan Pier and
25		Exposition Authority for that fiscal year, less the amount
26		deposited into the McCormick Place Expansion Project Fund by
27		the State Treasurer in the respective month under subsection
28		(g) of Section 13 of the Metropolitan Pier and Exposition
29		Authority Act, plus cumulative deficiencies in the deposits
30		required under this Section for previous months and years,
31		shall be deposited into the McCormick Place Expansion Project
32		Fund, until the full amount requested for the fiscal year, but
33		not in excess of the amount specified above as "Total Deposit",
34		has been deposited.
35		Subject to payment of amounts into the Build Illinois Fund
36		and the McCormick Place Expansion Project Fund pursuant to the

1		preceding paragraphs or in any amendments thereto hereafter
2		enacted, beginning July 1, 1993, the Department shall each
3		month pay into the Illinois Tax Increment Fund 0.27% of 80% of
4		the net revenue realized for the preceding month from the 6.25%
5		general rate on the selling price of tangible personal
6		property.
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 with the receipt of the first report of
11		taxes paid by an eligible business and continuing for a 25-year
12		period, the Department shall each month pay into the Energy
13		Infrastructure Fund 80% of the net revenue realized from the
14		6.25% general rate on the selling price of Illinois-mined coal
15		that was sold to an eligible business. For purposes of this
16		paragraph, the term "eligible business" means a new electric
17		generating facility certified pursuant to Section 605-332 of
18		the Department of Commerce and Economic Opportunity Community
19		Affairs Law of the Civil Administrative Code of Illinois.
20		Remaining moneys received by the Department pursuant to
21		this Act shall be paid into the General Revenue Fund of the
22		State Treasury.
23		The Department may, upon separate written notice to a
24		taxpayer, require the taxpayer to prepare and file with the
25		Department on a form prescribed by the Department within not
26		less than 60 days after receipt of the notice an annual
27		information return for the tax year specified in the notice.
28		Such annual return to the Department shall include a statement
29		of gross receipts as shown by the taxpayer's last Federal
30		income tax return. If the total receipts of the business as
31		reported in the Federal income tax return do not agree with the
32		gross receipts reported to the Department of Revenue for the
33		same period, the taxpayer shall attach to his annual return a
34		schedule showing a reconciliation of the 2 amounts and the
35		reasons for the difference. The taxpayer's annual return to the
36		Department shall also disclose the cost of goods sold by the

1		taxpayer during the year covered by such return, opening and
2		closing inventories of such goods for such year, cost of goods
3		used from stock or taken from stock and given away by the
4		taxpayer during such year, pay roll information of the
5		taxpayer's business during such year and any additional
6		reasonable information which the Department deems would be
7		helpful in determining the accuracy of the monthly, quarterly
8		or annual returns filed by such taxpayer as hereinbefore
9		provided for in this Section.
10		If the annual information return required by this Section
11		is not filed when and as required, the taxpayer shall be liable
12		as follows:
13		(i) Until January 1, 1994, the taxpayer shall be liable
14		for a penalty equal to 1/6 of 1% of the tax due from such
15		taxpayer under this Act during the period to be covered by
16		the annual return for each month or fraction of a month
17		until such return is filed as required, the penalty to be
18		assessed and collected in the same manner as any other
19		penalty provided for in this Act.
20		(ii) On and after January 1, 1994, the taxpayer shall
21		be liable for a penalty as described in Section 3-4 of the
22		Uniform Penalty and Interest Act.
23		The chief executive officer, proprietor, owner or highest
24		ranking manager shall sign the annual return to certify the
25		accuracy of the information contained therein. Any person who
26		willfully signs the annual return containing false or
27		inaccurate information shall be guilty of perjury and punished
28		accordingly. The annual return form prescribed by the
29		Department shall include a warning that the person signing the
30		return may be liable for perjury.
31		The foregoing portion of this Section concerning the filing
32		of an annual information return shall not apply to a serviceman
33		who is not required to file an income tax return with the
34		United States Government.
35		As soon as possible after the first day of each month, upon
36		certification of the Department of Revenue, the Comptroller

1		shall order transferred and the Treasurer shall transfer from
2		the General Revenue Fund to the Motor Fuel Tax Fund an amount
3		equal to 1.7% of 80% of the net revenue realized under this Act
4		for the second preceding month. Beginning April 1, 2000, this
5		transfer is no longer required and shall not be made.
6		Net revenue realized for a month shall be the revenue
7		collected by the State pursuant to this Act, less the amount
8		paid out during that month as refunds to taxpayers for
9		overpayment of liability.
10		For greater simplicity of administration, it shall be
11		permissible for manufacturers, importers and wholesalers whose
12		products are sold by numerous servicemen in Illinois, and who
13		wish to do so, to assume the responsibility for accounting and
14		paying to the Department all tax accruing under this Act with
15		respect to such sales, if the servicemen who are affected do
16		not make written objection to the Department to this
17		arrangement.
18		(Source: P.A. 92-12, eff. 7-1-01; 92-208, eff. 8-2-01; 92-492,
19		eff. 1-1-02; 92-600, eff. 6-28-02; 92-651, eff. 7-11-02; 93-24,
20		eff. 6-20-03; revised 10-15-03.)

21		Section 25. The Retailers' Occupation Tax Act is amended by
22		changing Sections 2-10 and 3 as follows:
23		(35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
24		Sec. 2-10. Rate of tax. Unless otherwise provided in this
25		Section, the tax imposed by this Act is at the rate of 6.25% of
26		gross receipts from sales of tangible personal property made in
27		the course of business.
28		Beginning on July 1, 2000 and through December 31, 2000,
29		with respect to motor fuel, as defined in Section 1.1 of the
30		Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
31		the Use Tax Act, the tax is imposed at the rate of 1.25%.
32		Within 14 days after the effective date of this amendatory
33		Act of the 91st General Assembly, each retailer of motor fuel
34		and gasohol shall cause the following notice to be posted in a

1		prominently visible place on each retail dispensing device that
2		is used to dispense motor fuel or gasohol in the State of
3		Illinois: "As of July 1, 2000, the State of Illinois has
4		eliminated the State's share of sales tax on motor fuel and
5		gasohol through December 31, 2000. The price on this pump
6		should reflect the elimination of the tax." The notice shall be
7		printed in bold print on a sign that is no smaller than 4
8		inches by 8 inches. The sign shall be clearly visible to
9		customers. Any retailer who fails to post or maintain a
10		required sign through December 31, 2000 is guilty of a petty
11		offense for which the fine shall be $500 per day per each
12		retail premises where a violation occurs.
13		With respect to gasohol, as defined in the Use Tax Act, the
14		tax imposed by this Act applies to (i) 70% of the proceeds of
15		sales made on or after January 1, 1990, and before July 1,
16		2003, (ii) 80% of the proceeds of sales made on or after July
17		1, 2003 and on or before December 31, 2013, and (iii) 100% of
18		the proceeds of sales made thereafter. If, at any time,
19		however, the tax under this Act on sales of gasohol, as defined
20		in the Use Tax Act, is imposed at the rate of 1.25%, then the
21		tax imposed by this Act applies to 100% of the proceeds of
22		sales of gasohol made during that time.
23		With respect to majority blended ethanol fuel, as defined
24		in the Use Tax Act, the tax imposed by this Act does not apply
25		to the proceeds of sales made on or after July 1, 2003 and on or
26		before December 31, 2013 but applies to 100% of the proceeds of
27		sales made thereafter.
28		With respect to biodiesel blends, as defined in the Use Tax
29		Act, with no less than 1% and no more than 10% biodiesel, the
30		tax imposed by this Act applies to (i) 80% of the proceeds of
31		sales made on or after July 1, 2003 and on or before December
32		31, 2013 and (ii) 100% of the proceeds of sales made
33		thereafter. If, at any time, however, the tax under this Act on
34		sales of biodiesel blends, as defined in the Use Tax Act, with
35		no less than 1% and no more than 10% biodiesel is imposed at
36		the rate of 1.25%, then the tax imposed by this Act applies to

1		100% of the proceeds of sales of biodiesel blends with no less
2		than 1% and no more than 10% biodiesel made during that time.
3		With respect to 100% biodiesel, as defined in the Use Tax
4		Act, and biodiesel blends, as defined in the Use Tax Act, with
5		more than 10% but no more than 99% biodiesel, the tax imposed
6		by this Act does not apply to the proceeds of sales made on or
7		after July 1, 2003 and on or before December 31, 2013 but
8		applies to 100% of the proceeds of sales made thereafter.
9		Beginning July 1, 2004, with respect to textbooks required
10		for use at State universities and public community colleges or
11		at institutions of higher learning as defined in the Illinois
12		Financial Assistance Act for Nonpublic Institutions of Higher
13		Learning, the tax is imposed at the rate of 1.25%. The
14		Department may adopt rules necessary to implement and
15		administer the 1.25% rate on textbooks.
16		With respect to food for human consumption that is to be
17		consumed off the premises where it is sold (other than
18		alcoholic beverages, soft drinks, and food that has been
19		prepared for immediate consumption) and prescription and
20		nonprescription medicines, drugs, medical appliances,
21		modifications to a motor vehicle for the purpose of rendering
22		it usable by a disabled person, and insulin, urine testing
23		materials, syringes, and needles used by diabetics, for human
24		use, the tax is imposed at the rate of 1%. For the purposes of
25		this Section, the term "soft drinks" means any complete,
26		finished, ready-to-use, non-alcoholic drink, whether
27		carbonated or not, including but not limited to soda water,
28		cola, fruit juice, vegetable juice, carbonated water, and all
29		other preparations commonly known as soft drinks of whatever
30		kind or description that are contained in any closed or sealed
31		bottle, can, carton, or container, regardless of size. "Soft
32		drinks" does not include coffee, tea, non-carbonated water,
33		infant formula, milk or milk products as defined in the Grade A
34		Pasteurized Milk and Milk Products Act, or drinks containing
35		50% or more natural fruit or vegetable juice.
36		Notwithstanding any other provisions of this Act, "food for

1		human consumption that is to be consumed off the premises where
2		it is sold" includes all food sold through a vending machine,
3		except soft drinks and food products that are dispensed hot
4		from a vending machine, regardless of the location of the
5		vending machine.
6		(Source: P.A. 93-17, eff. 6-11-03.)
7		(35 ILCS 120/3) (from Ch. 120, par. 442)
8		Sec. 3. Except as provided in this Section, on or before
9		the twentieth day of each calendar month, every person engaged
10		in the business of selling tangible personal property at retail
11		in this State during the preceding calendar month shall file a
12		return with the Department, stating:
13		1. The name of the seller;
14		2. His residence address and the address of his
15		principal place of business and the address of the
16		principal place of business (if that is a different
17		address) from which he engages in the business of selling
18		tangible personal property at retail in this State;
19		3. Total amount of receipts received by him during the
20		preceding calendar month or quarter, as the case may be,
21		from sales of tangible personal property, and from services
22		furnished, by him during such preceding calendar month or
23		quarter;
24		4. Total amount received by him during the preceding
25		calendar month or quarter on charge and time sales of
26		tangible personal property, and from services furnished,
27		by him prior to the month or quarter for which the return
28		is filed;
29		5. Deductions allowed by law;
30		6. Gross receipts which were received by him during the
31		preceding calendar month or quarter and upon the basis of
32		which the tax is imposed;
33		7. The amount of credit provided in Section 2d of this
34		Act;
35		8. The amount of tax due;

1		9. The signature of the taxpayer; and
2		10. Such other reasonable information as the
3		Department may require.
4		If a taxpayer fails to sign a return within 30 days after
5		the proper notice and demand for signature by the Department,
6		the return shall be considered valid and any amount shown to be
7		due on the return shall be deemed assessed.
8		Each return shall be accompanied by the statement of
9		prepaid tax issued pursuant to Section 2e for which credit is
10		claimed.
11		Prior to October 1, 2003, a retailer may accept a
12		Manufacturer's Purchase Credit certification from a purchaser
13		in satisfaction of Use Tax as provided in Section 3-85 of the
14		Use Tax Act if the purchaser provides the appropriate
15		documentation as required by Section 3-85 of the Use Tax Act. A
16		Manufacturer's Purchase Credit certification, accepted by a
17		retailer prior to October 1, 2003 as provided in Section 3-85
18		of the Use Tax Act, may be used by that retailer to satisfy
19		Retailers' Occupation Tax liability in the amount claimed in
20		the certification, not to exceed 6.25% of the receipts subject
21		to tax from a qualifying purchase. A Manufacturer's Purchase
22		Credit reported on any original or amended return filed under
23		this Act after October 20, 2003 shall be disallowed. No
24		Manufacturer's Purchase Credit may be used after September 30,
25		2003 to satisfy any tax liability imposed under this Act,
26		including any audit liability.
27		The Department may require returns to be filed on a
28		quarterly basis. If so required, a return for each calendar
29		quarter shall be filed on or before the twentieth day of the
30		calendar month following the end of such calendar quarter. The
31		taxpayer shall also file a return with the Department for each
32		of the first two months of each calendar quarter, on or before
33		the twentieth day of the following calendar month, stating:
34		1. The name of the seller;
35		2. The address of the principal place of business from
36		which he engages in the business of selling tangible

1		personal property at retail in this State;
2		3. The total amount of taxable receipts received by him
3		during the preceding calendar month from sales of tangible
4		personal property by him during such preceding calendar
5		month, including receipts from charge and time sales, but
6		less all deductions allowed by law;
7		4. The amount of credit provided in Section 2d of this
8		Act;
9		5. The amount of tax due; and
10		6. Such other reasonable information as the Department
11		may require.
12		Beginning on October 1, 2003, any person who is not a
13		licensed distributor, importing distributor, or manufacturer,
14		as defined in the Liquor Control Act of 1934, but is engaged in
15		the business of selling, at retail, alcoholic liquor shall file
16		a statement with the Department of Revenue, in a format and at
17		a time prescribed by the Department, showing the total amount
18		paid for alcoholic liquor purchased during the preceding month
19		and such other information as is reasonably required by the
20		Department. The Department may adopt rules to require that this
21		statement be filed in an electronic or telephonic format. Such
22		rules may provide for exceptions from the filing requirements
23		of this paragraph. For the purposes of this paragraph, the term
24		"alcoholic liquor" shall have the meaning prescribed in the
25		Liquor Control Act of 1934.
26		Beginning on October 1, 2003, every distributor, importing
27		distributor, and manufacturer of alcoholic liquor as defined in
28		the Liquor Control Act of 1934, shall file a statement with the
29		Department of Revenue, no later than the 10th day of the month
30		for the preceding month during which transactions occurred, by
31		electronic means, showing the total amount of gross receipts
32		from the sale of alcoholic liquor sold or distributed during
33		the preceding month to purchasers; identifying the purchaser to
34		whom it was sold or distributed; the purchaser's tax
35		registration number; and such other information reasonably
36		required by the Department. A copy of the monthly statement

1		shall be sent to the retailer no later than the 10th day of the
2		month for the preceding month during which transactions
3		occurred.
4		If a total amount of less than $1 is payable, refundable or
5		creditable, such amount shall be disregarded if it is less than
6		50 cents and shall be increased to $1 if it is 50 cents or more.
7		Beginning October 1, 1993, a taxpayer who has an average
8		monthly tax liability of $150,000 or more shall make all
9		payments required by rules of the Department by electronic
10		funds transfer. Beginning October 1, 1994, a taxpayer who has
11		an average monthly tax liability of $100,000 or more shall make
12		all payments required by rules of the Department by electronic
13		funds transfer. Beginning October 1, 1995, a taxpayer who has
14		an average monthly tax liability of $50,000 or more shall make
15		all payments required by rules of the Department by electronic
16		funds transfer. Beginning October 1, 2000, a taxpayer who has
17		an annual tax liability of $200,000 or more shall make all
18		payments required by rules of the Department by electronic
19		funds transfer. The term "annual tax liability" shall be the
20		sum of the taxpayer's liabilities under this Act, and under all
21		other State and local occupation and use tax laws administered
22		by the Department, for the immediately preceding calendar year.
23		The term "average monthly tax liability" shall be the sum of
24		the taxpayer's liabilities under this Act, and under all other
25		State and local occupation and use tax laws administered by the
26		Department, for the immediately preceding calendar year
27		divided by 12. Beginning on October 1, 2002, a taxpayer who has
28		a tax liability in the amount set forth in subsection (b) of
29		Section 2505-210 of the Department of Revenue Law shall make
30		all payments required by rules of the Department by electronic
31		funds transfer.
32		Before August 1 of each year beginning in 1993, the
33		Department shall notify all taxpayers required to make payments
34		by electronic funds transfer. All taxpayers required to make
35		payments by electronic funds transfer shall make those payments
36		for a minimum of one year beginning on October 1.

1		Any taxpayer not required to make payments by electronic
2		funds transfer may make payments by electronic funds transfer
3		with the permission of the Department.
4		All taxpayers required to make payment by electronic funds
5		transfer and any taxpayers authorized to voluntarily make
6		payments by electronic funds transfer shall make those payments
7		in the manner authorized by the Department.
8		The Department shall adopt such rules as are necessary to
9		effectuate a program of electronic funds transfer and the
10		requirements of this Section.
11		Any amount which is required to be shown or reported on any
12		return or other document under this Act shall, if such amount
13		is not a whole-dollar amount, be increased to the nearest
14		whole-dollar amount in any case where the fractional part of a
15		dollar is 50 cents or more, and decreased to the nearest
16		whole-dollar amount where the fractional part of a dollar is
17		less than 50 cents.
18		If the retailer is otherwise required to file a monthly
19		return and if the retailer's average monthly tax liability to
20		the Department does not exceed $200, the Department may
21		authorize his returns to be filed on a quarter annual basis,
22		with the return for January, February and March of a given year
23		being due by April 20 of such year; with the return for April,
24		May and June of a given year being due by July 20 of such year;
25		with the return for July, August and September of a given year
26		being due by October 20 of such year, and with the return for
27		October, November and December of a given year being due by
28		January 20 of the following year.
29		If the retailer is otherwise required to file a monthly or
30		quarterly return and if the retailer's average monthly tax
31		liability with the Department does not exceed $50, the
32		Department may authorize his returns to be filed on an annual
33		basis, with the return for a given year being due by January 20
34		of the following year.
35		Such quarter annual and annual returns, as to form and
36		substance, shall be subject to the same requirements as monthly

1		returns.
2		Notwithstanding any other provision in this Act concerning
3		the time within which a retailer may file his return, in the
4		case of any retailer who ceases to engage in a kind of business
5		which makes him responsible for filing returns under this Act,
6		such retailer shall file a final return under this Act with the
7		Department not more than one month after discontinuing such
8		business.
9		Where the same person has more than one business registered
10		with the Department under separate registrations under this
11		Act, such person may not file each return that is due as a
12		single return covering all such registered businesses, but
13		shall file separate returns for each such registered business.
14		In addition, with respect to motor vehicles, watercraft,
15		aircraft, and trailers that are required to be registered with
16		an agency of this State, every retailer selling this kind of
17		tangible personal property shall file, with the Department,
18		upon a form to be prescribed and supplied by the Department, a
19		separate return for each such item of tangible personal
20		property which the retailer sells, except that if, in the same
21		transaction, (i) a retailer of aircraft, watercraft, motor
22		vehicles or trailers transfers more than one aircraft,
23		watercraft, motor vehicle or trailer to another aircraft,
24		watercraft, motor vehicle retailer or trailer retailer for the
25		purpose of resale or (ii) a retailer of aircraft, watercraft,
26		motor vehicles, or trailers transfers more than one aircraft,
27		watercraft, motor vehicle, or trailer to a purchaser for use as
28		a qualifying rolling stock as provided in Section 2-5 of this
29		Act, then that seller may report the transfer of all aircraft,
30		watercraft, motor vehicles or trailers involved in that
31		transaction to the Department on the same uniform
32		invoice-transaction reporting return form. For purposes of
33		this Section, "watercraft" means a Class 2, Class 3, or Class 4
34		watercraft as defined in Section 3-2 of the Boat Registration
35		and Safety Act, a personal watercraft, or any boat equipped
36		with an inboard motor.

1		Any retailer who sells only motor vehicles, watercraft,
2		aircraft, or trailers that are required to be registered with
3		an agency of this State, so that all retailers' occupation tax
4		liability is required to be reported, and is reported, on such
5		transaction reporting returns and who is not otherwise required
6		to file monthly or quarterly returns, need not file monthly or
7		quarterly returns. However, those retailers shall be required
8		to file returns on an annual basis.
9		The transaction reporting return, in the case of motor
10		vehicles or trailers that are required to be registered with an
11		agency of this State, shall be the same document as the Uniform
12		Invoice referred to in Section 5-402 of The Illinois Vehicle
13		Code and must show the name and address of the seller; the name
14		and address of the purchaser; the amount of the selling price
15		including the amount allowed by the retailer for traded-in
16		property, if any; the amount allowed by the retailer for the
17		traded-in tangible personal property, if any, to the extent to
18		which Section 1 of this Act allows an exemption for the value
19		of traded-in property; the balance payable after deducting such
20		trade-in allowance from the total selling price; the amount of
21		tax due from the retailer with respect to such transaction; the
22		amount of tax collected from the purchaser by the retailer on
23		such transaction (or satisfactory evidence that such tax is not
24		due in that particular instance, if that is claimed to be the
25		fact); the place and date of the sale; a sufficient
26		identification of the property sold; such other information as
27		is required in Section 5-402 of The Illinois Vehicle Code, and
28		such other information as the Department may reasonably
29		require.
30		The transaction reporting return in the case of watercraft
31		or aircraft must show the name and address of the seller; the
32		name and address of the purchaser; the amount of the selling
33		price including the amount allowed by the retailer for
34		traded-in property, if any; the amount allowed by the retailer
35		for the traded-in tangible personal property, if any, to the
36		extent to which Section 1 of this Act allows an exemption for

1		the value of traded-in property; the balance payable after
2		deducting such trade-in allowance from the total selling price;
3		the amount of tax due from the retailer with respect to such
4		transaction; the amount of tax collected from the purchaser by
5		the retailer on such transaction (or satisfactory evidence that
6		such tax is not due in that particular instance, if that is
7		claimed to be the fact); the place and date of the sale, a
8		sufficient identification of the property sold, and such other
9		information as the Department may reasonably require.
10		Such transaction reporting return shall be filed not later
11		than 20 days after the day of delivery of the item that is
12		being sold, but may be filed by the retailer at any time sooner
13		than that if he chooses to do so. The transaction reporting
14		return and tax remittance or proof of exemption from the
15		Illinois use tax may be transmitted to the Department by way of
16		the State agency with which, or State officer with whom the
17		tangible personal property must be titled or registered (if
18		titling or registration is required) if the Department and such
19		agency or State officer determine that this procedure will
20		expedite the processing of applications for title or
21		registration.
22		With each such transaction reporting return, the retailer
23		shall remit the proper amount of tax due (or shall submit
24		satisfactory evidence that the sale is not taxable if that is
25		the case), to the Department or its agents, whereupon the
26		Department shall issue, in the purchaser's name, a use tax
27		receipt (or a certificate of exemption if the Department is
28		satisfied that the particular sale is tax exempt) which such
29		purchaser may submit to the agency with which, or State officer
30		with whom, he must title or register the tangible personal
31		property that is involved (if titling or registration is
32		required) in support of such purchaser's application for an
33		Illinois certificate or other evidence of title or registration
34		to such tangible personal property.
35		No retailer's failure or refusal to remit tax under this
36		Act precludes a user, who has paid the proper tax to the

1		retailer, from obtaining his certificate of title or other
2		evidence of title or registration (if titling or registration
3		is required) upon satisfying the Department that such user has
4		paid the proper tax (if tax is due) to the retailer. The
5		Department shall adopt appropriate rules to carry out the
6		mandate of this paragraph.
7		If the user who would otherwise pay tax to the retailer
8		wants the transaction reporting return filed and the payment of
9		the tax or proof of exemption made to the Department before the
10		retailer is willing to take these actions and such user has not
11		paid the tax to the retailer, such user may certify to the fact
12		of such delay by the retailer and may (upon the Department
13		being satisfied of the truth of such certification) transmit
14		the information required by the transaction reporting return
15		and the remittance for tax or proof of exemption directly to
16		the Department and obtain his tax receipt or exemption
17		determination, in which event the transaction reporting return
18		and tax remittance (if a tax payment was required) shall be
19		credited by the Department to the proper retailer's account
20		with the Department, but without the 2.1% or 1.75% discount
21		provided for in this Section being allowed. When the user pays
22		the tax directly to the Department, he shall pay the tax in the
23		same amount and in the same form in which it would be remitted
24		if the tax had been remitted to the Department by the retailer.
25		Refunds made by the seller during the preceding return
26		period to purchasers, on account of tangible personal property
27		returned to the seller, shall be allowed as a deduction under
28		subdivision 5 of his monthly or quarterly return, as the case
29		may be, in case the seller had theretofore included the
30		receipts from the sale of such tangible personal property in a
31		return filed by him and had paid the tax imposed by this Act
32		with respect to such receipts.
33		Where the seller is a corporation, the return filed on
34		behalf of such corporation shall be signed by the president,
35		vice-president, secretary or treasurer or by the properly
36		accredited agent of such corporation.

1		Where the seller is a limited liability company, the return
2		filed on behalf of the limited liability company shall be
3		signed by a manager, member, or properly accredited agent of
4		the limited liability company.
5		Except as provided in this Section, the retailer filing the
6		return under this Section shall, at the time of filing such
7		return, pay to the Department the amount of tax imposed by this
8		Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
9		on and after January 1, 1990, or $5 per calendar year,
10		whichever is greater, which is allowed to reimburse the
11		retailer for the expenses incurred in keeping records,
12		preparing and filing returns, remitting the tax and supplying
13		data to the Department on request. Any prepayment made pursuant
14		to Section 2d of this Act shall be included in the amount on
15		which such 2.1% or 1.75% discount is computed. In the case of
16		retailers who report and pay the tax on a transaction by
17		transaction basis, as provided in this Section, such discount
18		shall be taken with each such tax remittance instead of when
19		such retailer files his periodic return.
20		Before October 1, 2000, if the taxpayer's average monthly
21		tax liability to the Department under this Act, the Use Tax
22		Act, the Service Occupation Tax Act, and the Service Use Tax
23		Act, excluding any liability for prepaid sales tax to be
24		remitted in accordance with Section 2d of this Act, was $10,000
25		or more during the preceding 4 complete calendar quarters, he
26		shall file a return with the Department each month by the 20th
27		day of the month next following the month during which such tax
28		liability is incurred and shall make payments to the Department
29		on or before the 7th, 15th, 22nd and last day of the month
30		during which such liability is incurred. On and after October
31		1, 2000, if the taxpayer's average monthly tax liability to the
32		Department under this Act, the Use Tax Act, the Service
33		Occupation Tax Act, and the Service Use Tax Act, excluding any
34		liability for prepaid sales tax to be remitted in accordance
35		with Section 2d of this Act, was $20,000 or more during the
36		preceding 4 complete calendar quarters, he shall file a return

1		with the Department each month by the 20th day of the month
2		next following the month during which such tax liability is
3		incurred and shall make payment to the Department on or before
4		the 7th, 15th, 22nd and last day of the month during which such
5		liability is incurred. If the month during which such tax
6		liability is incurred began prior to January 1, 1985, each
7		payment shall be in an amount equal to 1/4 of the taxpayer's
8		actual liability for the month or an amount set by the
9		Department not to exceed 1/4 of the average monthly liability
10		of the taxpayer to the Department for the preceding 4 complete
11		calendar quarters (excluding the month of highest liability and
12		the month of lowest liability in such 4 quarter period). If the
13		month during which such tax liability is incurred begins on or
14		after January 1, 1985 and prior to January 1, 1987, each
15		payment shall be in an amount equal to 22.5% of the taxpayer's
16		actual liability for the month or 27.5% of the taxpayer's
17		liability for the same calendar month of the preceding year. If
18		the month during which such tax liability is incurred begins on
19		or after January 1, 1987 and prior to January 1, 1988, each
20		payment shall be in an amount equal to 22.5% of the taxpayer's
21		actual liability for the month or 26.25% of the taxpayer's
22		liability for the same calendar month of the preceding year. If
23		the month during which such tax liability is incurred begins on
24		or after January 1, 1988, and prior to January 1, 1989, or
25		begins on or after January 1, 1996, each payment shall be in an
26		amount equal to 22.5% of the taxpayer's actual liability for
27		the month or 25% of the taxpayer's liability for the same
28		calendar month of the preceding year. If the month during which
29		such tax liability is incurred begins on or after January 1,
30		1989, and prior to January 1, 1996, each payment shall be in an
31		amount equal to 22.5% of the taxpayer's actual liability for
32		the month or 25% of the taxpayer's liability for the same
33		calendar month of the preceding year or 100% of the taxpayer's
34		actual liability for the quarter monthly reporting period. The
35		amount of such quarter monthly payments shall be credited
36		against the final tax liability of the taxpayer's return for

1		that month. Before October 1, 2000, once applicable, the
2		requirement of the making of quarter monthly payments to the
3		Department by taxpayers having an average monthly tax liability
4		of $10,000 or more as determined in the manner provided above
5		shall continue until such taxpayer's average monthly liability
6		to the Department during the preceding 4 complete calendar
7		quarters (excluding the month of highest liability and the
8		month of lowest liability) is less than $9,000, or until such
9		taxpayer's average monthly liability to the Department as
10		computed for each calendar quarter of the 4 preceding complete
11		calendar quarter period is less than $10,000. However, if a
12		taxpayer can show the Department that a substantial change in
13		the taxpayer's business has occurred which causes the taxpayer
14		to anticipate that his average monthly tax liability for the
15		reasonably foreseeable future will fall below the $10,000
16		threshold stated above, then such taxpayer may petition the
17		Department for a change in such taxpayer's reporting status. On
18		and after October 1, 2000, once applicable, the requirement of
19		the making of quarter monthly payments to the Department by
20		taxpayers having an average monthly tax liability of $20,000 or
21		more as determined in the manner provided above shall continue
22		until such taxpayer's average monthly liability to the
23		Department during the preceding 4 complete calendar quarters
24		(excluding the month of highest liability and the month of
25		lowest liability) is less than $19,000 or until such taxpayer's
26		average monthly liability to the Department as computed for
27		each calendar quarter of the 4 preceding complete calendar
28		quarter period is less than $20,000. However, if a taxpayer can
29		show the Department that a substantial change in the taxpayer's
30		business has occurred which causes the taxpayer to anticipate
31		that his average monthly tax liability for the reasonably
32		foreseeable future will fall below the $20,000 threshold stated
33		above, then such taxpayer may petition the Department for a
34		change in such taxpayer's reporting status. The Department
35		shall change such taxpayer's reporting status unless it finds
36		that such change is seasonal in nature and not likely to be

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

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

1		quarters is less than $20,000. If any such quarter monthly
2		payment is not paid at the time or in the amount required, the
3		taxpayer shall be liable for penalties and interest on such
4		difference, except insofar as the taxpayer has previously made
5		payments for that month in excess of the minimum payments
6		previously due.
7		If any payment provided for in this Section exceeds the
8		taxpayer's liabilities under this Act, the Use Tax Act, the
9		Service Occupation Tax Act and the Service Use Tax Act, as
10		shown on an original monthly return, the Department shall, if
11		requested by the taxpayer, issue to the taxpayer a credit
12		memorandum no later than 30 days after the date of payment. The
13		credit evidenced by such credit memorandum may be assigned by
14		the taxpayer to a similar taxpayer under this Act, the Use Tax
15		Act, the Service Occupation Tax Act or the Service Use Tax Act,
16		in accordance with reasonable rules and regulations to be
17		prescribed by the Department. If no such request is made, the
18		taxpayer may credit such excess payment against tax liability
19		subsequently to be remitted to the Department under this Act,
20		the Use Tax Act, the Service Occupation Tax Act or the Service
21		Use Tax Act, in accordance with reasonable rules and
22		regulations prescribed by the Department. If the Department
23		subsequently determined that all or any part of the credit
24		taken was not actually due to the taxpayer, the taxpayer's 2.1%
25		and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
26		of the difference between the credit taken and that actually
27		due, and that taxpayer shall be liable for penalties and
28		interest on such difference.
29		If a retailer of motor fuel is entitled to a credit under
30		Section 2d of this Act which exceeds the taxpayer's liability
31		to the Department under this Act for the month which the
32		taxpayer is filing a return, the Department shall issue the
33		taxpayer a credit memorandum for the excess.
34		Beginning January 1, 1990, each month the Department shall
35		pay into the Local Government Tax Fund, a special fund in the
36		State treasury which is hereby created, the net revenue

1		realized for the preceding month from the 1% tax on sales of
2		food for human consumption which is to be consumed off the
3		premises where it is sold (other than alcoholic beverages, soft
4		drinks and food which has been prepared for immediate
5		consumption) and prescription and nonprescription medicines,
6		drugs, medical appliances and insulin, urine testing
7		materials, syringes and needles used by diabetics.
8		Beginning January 1, 1990, each month the Department shall
9		pay into the County and Mass Transit District Fund, a special
10		fund in the State treasury which is hereby created, 4% of the
11		net revenue realized for the preceding month from the 6.25%
12		general rate.
13		Beginning August 1, 2000, each month the Department shall
14		pay into the County and Mass Transit District Fund 20% of the
15		net revenue realized for the preceding month from the 1.25%
16		rate on the selling price of motor fuel and gasohol.
17		Beginning August 1, 2004, each month the Department shall
18		pay into the County and Mass Transit District Fund 20% of the
19		net revenue realized for the preceding month from the 1.25%
20		rate on the selling price of textbooks required for use at
21		State universities and public community colleges or at
22		institutions of higher learning as defined in the Illinois
23		Financial Assistance Act for Nonpublic Institutions of Higher
24		Learning.
25		Beginning January 1, 1990, each month the Department shall
26		pay into the Local Government Tax Fund 16% of the net revenue
27		realized for the preceding month from the 6.25% general rate on
28		the selling price of tangible personal property.
29		Beginning August 1, 2000, each month the Department shall
30		pay into the Local Government Tax Fund 80% of the net revenue
31		realized for the preceding month from the 1.25% rate on the
32		selling price of motor fuel and gasohol.
33		Beginning August 1, 2004, each month the Department shall
34		pay into the Local Government Tax Fund 80% of the net revenue
35		realized for the preceding month from the 1.25% rate on the
36		selling price of textbooks required for use at State

1		universities and public community colleges or at institutions
2		of higher learning as defined in the Illinois Financial
3		Assistance Act for Nonpublic Institutions of Higher Learning.
4		Of the remainder of the moneys received by the Department
5		pursuant to this Act, (a) 1.75% thereof shall be paid into the
6		Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
7		and after July 1, 1989, 3.8% thereof shall be paid into the
8		Build Illinois Fund; provided, however, that if in any fiscal
9		year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
10		may be, of the moneys received by the Department and required
11		to be paid into the Build Illinois Fund pursuant to this Act,
12		Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
13		Act, and Section 9 of the Service Occupation Tax Act, such Acts
14		being hereinafter called the "Tax Acts" and such aggregate of
15		2.2% or 3.8%, as the case may be, of moneys being hereinafter
16		called the "Tax Act Amount", and (2) the amount transferred to
17		the Build Illinois Fund from the State and Local Sales Tax
18		Reform Fund shall be less than the Annual Specified Amount (as
19		hereinafter defined), an amount equal to the difference shall
20		be immediately paid into the Build Illinois Fund from other
21		moneys received by the Department pursuant to the Tax Acts; the
22		"Annual Specified Amount" means the amounts specified below for
23		fiscal years 1986 through 1993:
33		and means the Certified Annual Debt Service Requirement (as
34		defined in Section 13 of the Build Illinois Bond Act) or the
35		Tax Act Amount, whichever is greater, for fiscal year 1994 and
36		each fiscal year thereafter; and further provided, that if on

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

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

26		Beginning July 20, 1993 and in each month of each fiscal
27		year thereafter, one-eighth of the amount requested in the
28		certificate of the Chairman of the Metropolitan Pier and
29		Exposition Authority for that fiscal year, less the amount
30		deposited into the McCormick Place Expansion Project Fund by
31		the State Treasurer in the respective month under subsection
32		(g) of Section 13 of the Metropolitan Pier and Exposition
33		Authority Act, plus cumulative deficiencies in the deposits
34		required under this Section for previous months and years,
35		shall be deposited into the McCormick Place Expansion Project
36		Fund, until the full amount requested for the fiscal year, but

1		not in excess of the amount specified above as "Total Deposit",
2		has been deposited.
3		Subject to payment of amounts into the Build Illinois Fund
4		and the McCormick Place Expansion Project Fund pursuant to the
5		preceding paragraphs or in any amendments thereto hereafter
6		enacted, beginning July 1, 1993, the Department shall each
7		month pay into the Illinois Tax Increment Fund 0.27% of 80% of
8		the net revenue realized for the preceding month from the 6.25%
9		general rate on the selling price of tangible personal
10		property.
11		Subject to payment of amounts into the Build Illinois Fund
12		and the McCormick Place Expansion Project Fund pursuant to the
13		preceding paragraphs or in any amendments thereto hereafter
14		enacted, beginning with the receipt of the first report of
15		taxes paid by an eligible business and continuing for a 25-year
16		period, the Department shall each month pay into the Energy
17		Infrastructure Fund 80% of the net revenue realized from the
18		6.25% general rate on the selling price of Illinois-mined coal
19		that was sold to an eligible business. For purposes of this
20		paragraph, the term "eligible business" means a new electric
21		generating facility certified pursuant to Section 605-332 of
22		the Department of Commerce and Economic Opportunity Community
23		Affairs Law of the Civil Administrative Code of Illinois.
24		Of the remainder of the moneys received by the Department
25		pursuant to this Act, 75% thereof shall be paid into the State
26		Treasury and 25% shall be reserved in a special account and
27		used only for the transfer to the Common School Fund as part of
28		the monthly transfer from the General Revenue Fund in
29		accordance with Section 8a of the State Finance Act.
30		The Department may, upon separate written notice to a
31		taxpayer, require the taxpayer to prepare and file with the
32		Department on a form prescribed by the Department within not
33		less than 60 days after receipt of the notice an annual
34		information return for the tax year specified in the notice.
35		Such annual return to the Department shall include a statement
36		of gross receipts as shown by the retailer's last Federal

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

1		return may be liable for perjury.
2		The provisions of this Section concerning the filing of an
3		annual information return do not apply to a retailer who is not
4		required to file an income tax return with the United States
5		Government.
6		As soon as possible after the first day of each month, upon
7		certification of the Department of Revenue, the Comptroller
8		shall order transferred and the Treasurer shall transfer from
9		the General Revenue Fund to the Motor Fuel Tax Fund an amount
10		equal to 1.7% of 80% of the net revenue realized under this Act
11		for the second preceding month. Beginning April 1, 2000, this
12		transfer is no longer required and shall not be made.
13		Net revenue realized for a month shall be the revenue
14		collected by the State pursuant to this Act, less the amount
15		paid out during that month as refunds to taxpayers for
16		overpayment of liability.
17		For greater simplicity of administration, manufacturers,
18		importers and wholesalers whose products are sold at retail in
19		Illinois by numerous retailers, and who wish to do so, may
20		assume the responsibility for accounting and paying to the
21		Department all tax accruing under this Act with respect to such
22		sales, if the retailers who are affected do not make written
23		objection to the Department to this arrangement.
24		Any person who promotes, organizes, provides retail
25		selling space for concessionaires or other types of sellers at
26		the Illinois State Fair, DuQuoin State Fair, county fairs,
27		local fairs, art shows, flea markets and similar exhibitions or
28		events, including any transient merchant as defined by Section
29		2 of the Transient Merchant Act of 1987, is required to file a
30		report with the Department providing the name of the merchant's
31		business, the name of the person or persons engaged in
32		merchant's business, the permanent address and Illinois
33		Retailers Occupation Tax Registration Number of the merchant,
34		the dates and location of the event and other reasonable
35		information that the Department may require. The report must be
36		filed not later than the 20th day of the month next following

1		the month during which the event with retail sales was held.
2		Any person who fails to file a report required by this Section
3		commits a business offense and is subject to a fine not to
4		exceed $250.
5		Any person engaged in the business of selling tangible
6		personal property at retail as a concessionaire or other type
7		of seller at the Illinois State Fair, county fairs, art shows,
8		flea markets and similar exhibitions or events, or any
9		transient merchants, as defined by Section 2 of the Transient
10		Merchant Act of 1987, may be required to make a daily report of
11		the amount of such sales to the Department and to make a daily
12		payment of the full amount of tax due. The Department shall
13		impose this requirement when it finds that there is a
14		significant risk of loss of revenue to the State at such an
15		exhibition or event. Such a finding shall be based on evidence
16		that a substantial number of concessionaires or other sellers
17		who are not residents of Illinois will be engaging in the
18		business of selling tangible personal property at retail at the
19		exhibition or event, or other evidence of a significant risk of
20		loss of revenue to the State. The Department shall notify
21		concessionaires and other sellers affected by the imposition of
22		this requirement. In the absence of notification by the
23		Department, the concessionaires and other sellers shall file
24		their returns as otherwise required in this Section.
25		(Source: P.A. 92-12, eff. 7-1-01; 92-16, eff. 6-28-01; 92-208,
26		eff. 8-2-01; 92-484, eff. 8-23-01; 92-492, eff. 1-1-02; 92-600,
27		eff. 6-28-02; 92-651, eff. 7-11-02; 93-22, eff. 6-20-03; 93-24,
28		eff. 6-20-03; revised 10-15-03.)

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