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| AMENDMENT TO SENATE BILL 2207
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| AMENDMENT NO. ______. Amend Senate Bill 2207, AS AMENDED, |
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| by replacing everything after the enacting clause with the |
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| following:
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| "ARTICLE 1 |
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| Section 1-1. Short title. This Act may be cited as the | 7 |
| FY2005 Budget
Implementation (Revenue) Act.
|
|
8 |
| Section 1-5. Purpose. It is the purpose of this Act to | 9 |
| make changes
in State programs that are necessary to implement | 10 |
| the Governor's FY2005
budget recommendations concerning | 11 |
| revenue.
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|
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| ARTICLE 5 |
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| Section 5-5. The Illinois Insurance Code is amended by | 14 |
| changing Section 416 as follows:
| 15 |
| (215 ILCS 5/416)
| 16 |
| Sec. 416. Industrial Commission Operations Fund Surcharge.
| 17 |
| (a) As of the effective date of this amendatory Act of 2004
| 18 |
| the 93rd General
Assembly , every company licensed or
authorized | 19 |
| by the Illinois Department of Insurance and insuring employers'
| 20 |
| liabilities arising under the Workers' Compensation Act or the |
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| Workers'
Occupational Diseases Act shall remit to the Director | 2 |
| a surcharge based upon
the annual direct written premium, as | 3 |
| reported under Section 136 of this Act,
of the company in the | 4 |
| manner provided in this
Section. Such
proceeds shall
be | 5 |
| deposited into the Industrial Commission Operations Fund as
| 6 |
| established in
the Workers' Compensation Act. If a company
| 7 |
| survives or
was formed by a merger, consolidation, | 8 |
| reorganization, or reincorporation, the
direct
written | 9 |
| premiums of all companies party to the merger, consolidation,
| 10 |
| reorganization, or
reincorporation shall, for purposes of | 11 |
| determining the amount of the fee
imposed by this
Section, be | 12 |
| regarded as those of the surviving or new company.
| 13 |
| (b)(1) Except as provided in subsection (b)(2) of this | 14 |
| Section, beginning on
the effective date of this amendatory Act | 15 |
| of 2004 and on July 1 of
July 1, 2004 and each year thereafter,
| 16 |
| the
Director shall
charge an annual Industrial Commission | 17 |
| Operations Fund Surcharge from every
company subject to | 18 |
| subsection (a) of this Section equal to 1.01%
1.5% of its | 19 |
| direct
written
premium for insuring employers' liabilities | 20 |
| arising under the Workers'
Compensation Act or Workers' | 21 |
| Occupational Diseases Act as reported in each
company's
annual
| 22 |
| statement filed for the previous year as required by Section | 23 |
| 136. The
Industrial Commission Operations Fund Surcharge shall | 24 |
| be collected by companies
subject to subsection (a) of this | 25 |
| Section as a separately stated surcharge on
insured employers | 26 |
| at the rate of 1.01%
1.5% of direct written premium. The
| 27 |
| Industrial Commission Operations Fund Surcharge shall not be | 28 |
| collected by companies
subject to subsection (a) of this | 29 |
| Section from any employer that self-insures its liabilities | 30 |
| arising under the Workers' Compensation Act or Workers' | 31 |
| Occupational Diseases Act, provided that the employer has paid | 32 |
| the Industrial Commission Operations Fund Fee pursuant to | 33 |
| Section 4d of the Workers' Compensation Act. All sums
collected | 34 |
| by
the Department of Insurance under the provisions of this |
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| Section shall be paid
promptly
after the receipt of the same, | 2 |
| accompanied by a detailed statement thereof,
into the
| 3 |
| Industrial Commission Operations Fund in the State treasury.
| 4 |
| (b)(2) The surcharge due pursuant to this amendatory Act of | 5 |
| 2004 shall be collected instead of the surcharge due on July 1, | 6 |
| 2004 under Public Act 93-32. Payment of the surcharge due under | 7 |
| this amendatory Act of 2004 shall discharge the employer's | 8 |
| obligations due on July 1, 2004.
Prior to July 1, 2004, the | 9 |
| Director shall charge and collect the
surcharge set forth in | 10 |
| subparagraph (b)(1) of this Section on or before
September 1, | 11 |
| 2003, December 1, 2003, March 1, 2004 and June 1, 2004. For
| 12 |
| purposes
of this subsection (b)(2), the company shall remit the | 13 |
| amounts to the Director
based on estimated direct premium for | 14 |
| each quarter beginning on July 1, 2003,
together with a sworn | 15 |
| statement attesting to the reasonableness of the
estimate, and | 16 |
| the estimated amount of direct premium written forming the | 17 |
| bases
of the remittance.
| 18 |
| (c) In addition to the authority specifically granted under | 19 |
| Article XXV of
this
Code, the Director shall have such | 20 |
| authority to adopt rules or establish forms
as may be
| 21 |
| reasonably necessary for purposes of enforcing this Section. | 22 |
| The Director shall
also have
authority to defer, waive, or | 23 |
| abate the surcharge or any penalties imposed by
this
Section if | 24 |
| in
the Director's opinion the company's solvency and ability to | 25 |
| meet its insured
obligations
would be immediately threatened by | 26 |
| payment of the surcharge due.
| 27 |
| (d) When a company fails to pay the full amount of any | 28 |
| annual
Industrial
Commission Operations Fund Surcharge of $100 | 29 |
| or more due under this Section,
there
shall be
added to the | 30 |
| amount due as a penalty the greater of $1,000 or an amount | 31 |
| equal
to 5% of
the deficiency for each month or part of a month | 32 |
| that the deficiency remains
unpaid.
| 33 |
| (e) The Department of Insurance may enforce the collection | 34 |
| of any delinquent
payment, penalty, or portion thereof by legal |
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| action or in any other manner by
which the
collection of debts | 2 |
| due the State of Illinois may be enforced under the laws of
| 3 |
| this State.
| 4 |
| (f) Whenever it appears to the satisfaction of the Director | 5 |
| that a company
has
paid
pursuant to this Act an Industrial | 6 |
| Commission Operations Fund Surcharge in
an amount
in excess of | 7 |
| the amount legally collectable from the company, the Director
| 8 |
| shall issue a
credit memorandum for an amount equal to the | 9 |
| amount of such overpayment. A
credit
memorandum may be applied | 10 |
| for the 2-year period from the date of issuance,
against the
| 11 |
| payment of any amount due during that period under the | 12 |
| surcharge imposed by
this
Section or,
subject to reasonable | 13 |
| rule of the Department of Insurance including requirement
of
| 14 |
| notification, may be assigned to any other company subject to | 15 |
| regulation under
this Act.
Any application of credit memoranda | 16 |
| after the period provided for in this
Section is void.
| 17 |
| (g) Annually, the Governor may direct a transfer of up to | 18 |
| 2% of all moneys
collected under this Section to the Insurance | 19 |
| Financial Regulation Fund.
| 20 |
| (Source: P.A. 93-32, eff. 6-20-03.)
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| Section 5-10. The Workers' Compensation Act is amended by | 22 |
| changing Section 4d as follows:
| 23 |
| (820 ILCS 305/4d)
| 24 |
| Sec. 4d. Industrial Commission Operations Fund Fee.
| 25 |
| (a) As of the effective date of this amendatory Act of the | 26 |
| 93rd
General
Assembly, each employer that self-insures its | 27 |
| liabilities arising under this
Act
or Workers' Occupational | 28 |
| Diseases Act shall pay a fee measured by the annual
actual | 29 |
| wages paid in this State of such an employer in the manner | 30 |
| provided in
this Section. Such proceeds shall be deposited in | 31 |
| the Industrial Commission
Operations Fund. If an employer | 32 |
| survives or was formed by a merger,
consolidation, |
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| reorganization, or reincorporation, the actual wages paid in
| 2 |
| this
State of all employers party to the merger, consolidation, | 3 |
| reorganization, or
reincorporation shall, for purposes of | 4 |
| determining the amount of the fee
imposed
by this Section, be | 5 |
| regarded as those of the surviving or new employer.
| 6 |
| (b) Beginning on the effective date of this amendatory Act | 7 |
| of 2004
the 93rd
General
Assembly and on July 1 of each year | 8 |
| thereafter, the Chairman shall charge and
collect an annual | 9 |
| Industrial Commission Operations Fund Fee from every employer
| 10 |
| subject to subsection (a) of this Section equal to 0.0075%
| 11 |
| 0.045% of its annual actual
wages paid in this State as | 12 |
| reported in each employer's annual self-insurance
renewal | 13 |
| filed for the previous year as required by Section 4 of this | 14 |
| Act and
Section 4 of the Workers' Occupational Diseases Act. | 15 |
| All sums collected by the
Commission under the provisions of | 16 |
| this Section shall be paid promptly after
the
receipt of the | 17 |
| same, accompanied by a detailed statement thereof, into the
| 18 |
| Industrial Commission Operations Fund. The fee due pursuant to | 19 |
| this amendatory Act of 2004 shall be collected instead of the | 20 |
| fee due on July 1, 2004 under Public Act 93-32. Payment of the | 21 |
| fee due under this amendatory Act of 2004 shall discharge the | 22 |
| employer's obligations due on July 1, 2004.
| 23 |
| (c) In addition to the authority specifically granted under | 24 |
| Section 16, the
Chairman shall have such authority to adopt | 25 |
| rules or establish forms as may be
reasonably necessary for | 26 |
| purposes of enforcing this Section. The Commission
shall have | 27 |
| authority to defer, waive, or abate the fee or any penalties | 28 |
| imposed
by this Section if in the Commission's opinion the | 29 |
| employer's solvency and
ability to meet its obligations to pay | 30 |
| workers' compensation benefits would be
immediately threatened | 31 |
| by payment of the fee due.
| 32 |
| (d) When an employer fails to pay the full amount of any | 33 |
| annual Industrial
Commission Operations Fund Fee of $100 or | 34 |
| more due under this Section, there
shall be added to the amount |
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| due as a penalty the greater of $1,000 or an
amount
equal to 5% | 2 |
| of the deficiency for each month or part of a month that the
| 3 |
| deficiency remains unpaid.
| 4 |
| (e) The Commission may enforce the collection of any | 5 |
| delinquent payment,
penalty
or portion thereof by legal action | 6 |
| or in any other manner by which the
collection of debts due the | 7 |
| State of Illinois may be enforced under the laws of
this State.
| 8 |
| (f) Whenever it appears to the satisfaction of the Chairman | 9 |
| that an employer
has
paid pursuant to this Act an Industrial | 10 |
| Commission Operations Fund Fee
in an amount in excess of the | 11 |
| amount legally collectable from the employer, the
Chairman | 12 |
| shall issue a credit memorandum for an amount equal to the | 13 |
| amount of
such overpayment. A credit memorandum may be applied | 14 |
| for the 2-year period from
the date of issuance against the | 15 |
| payment of any amount due during that period
under the fee | 16 |
| imposed by this Section or, subject to reasonable rule of the
| 17 |
| Commission including requirement of notification, may be | 18 |
| assigned to any other
employer subject to regulation under this | 19 |
| Act. Any application of credit
memoranda after the period | 20 |
| provided for in this Section is void.
| 21 |
| (Source: P.A. 93-32, eff. 6-20-03.)
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| ARTICLE 10 |
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| Section 10-5. The Illinois Identification Card Act is | 24 |
| amended by changing Sections 2 and 12 as follows:
| 25 |
| (15 ILCS 335/2) (from Ch. 124, par. 22)
| 26 |
| Sec. 2. Administration and powers and duties of the | 27 |
| Administrator. (a) The Secretary of State is the Administrator | 28 |
| of this Act, and he is
charged with the duty of observing, | 29 |
| administering and enforcing the
provisions of this Act.
| 30 |
| (b) The Secretary is vested with the powers and duties for | 31 |
| the
proper administration of this Act as follows:
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| 1. He shall organize the administration of this Act as he | 2 |
| may deem
necessary and appoint such subordinate officers, | 3 |
| clerks and other
employees as may be necessary.
| 4 |
| 2. From time to time, he may make, amend or rescind rules | 5 |
| and
regulations as may be in the public interest to implement | 6 |
| the Act.
| 7 |
| 3. He may prescribe or provide suitable forms as necessary, | 8 |
| including
such forms as are necessary to establish that an | 9 |
| applicant for an Illinois
Disabled Person Identification Card | 10 |
| is a "disabled person" as defined in
Section 4A of this Act.
| 11 |
| 4. He may prepare under the seal of the Secretary of State | 12 |
| certified
copies of any records utilized under this Act and any | 13 |
| such certified
copy shall be admissible in any proceeding in | 14 |
| any court in like manner
as the original thereof.
| 15 |
| 5. Records compiled under this Act shall be maintained for | 16 |
| 6 years,
but the Secretary may destroy such records with the | 17 |
| prior approval of
the State Records Commission.
| 18 |
| 6. He shall examine and determine the genuineness, | 19 |
| regularity and
legality of every application filed with him | 20 |
| under this Act, and he may
in all cases investigate the same, | 21 |
| require additional information or
proof or documentation from | 22 |
| any applicant.
| 23 |
| 7. He shall require the payment of all fees prescribed in | 24 |
| this Act,
and all such fees received by him shall be placed in | 25 |
| the Road Fund of the
State treasury except as otherwise | 26 |
| provided in Section 12 of this Act .
| 27 |
| (Source: P.A. 83-1421.)
| 28 |
| (15 ILCS 335/12) (from Ch. 124, par. 32)
| 29 |
| Sec. 12. Fees concerning Standard Illinois Identification | 30 |
| Cards. The fees required under this Act for standard Illinois
| 31 |
| Identification Cards must accompany any application provided | 32 |
| for in this
Act, and the Secretary shall collect such fees as | 33 |
| follows:
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1 | | a. Original card issued on or before | |
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2 | | December 31, 2004 ........................
| $4 |
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3 | | Original card issued on or after | |
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4 | | January 1, 2005 ..........................
| $20
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5 | | b. Renewal card issued on or before | |
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6 | | December 31, 2004 ......................... | 4 |
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7 | | Renewal card issued on or after | |
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8 | | January 1, 2005 ..........................
| 20 | |
9 | | c. Corrected card issued on or before | |
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10 | | December 31, 2004 ......................... | 2 |
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11 | | Corrected card issued on or after | |
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12 | | January 1, 2005 ..........................
| 10
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13 | | d. Duplicate card issued on or before | |
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14 | | December 31, 2004 ......................... | 4 |
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15 | | Duplicate card issued on or after | |
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16 | | January 1, 2005 ........................... | 20
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17 | | e. Certified copy with seal ................. | 5 | |
18 | | f. Search ................................... | 2 | |
19 | | g. Applicant 65 years of age or over ........ | No Fee | |
20 | | h. Disabled applicant ....................... | No Fee | |
21 | | i. Individual living in Veterans | | |
22 | | Home or Hospital ......................... | No Fee |
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| All fees collected under this Act shall be paid into the | 24 |
| Road Fund of the State treasury, except that the following | 25 |
| amounts shall be paid into the General Revenue Fund:
(i) $16 of | 26 |
| the $20 fee for an original, renewal, or duplicate Illinois | 27 |
| Identification Card issued on or after January 1, 2005;
and | 28 |
| (ii) $8 of the $10 fee for a corrected Illinois Identification | 29 |
| Card issued on or after January 1, 2005.
| 30 |
| Any disabled person making an application for a
standard | 31 |
| Illinois Identification Card for no fee must,
along with the | 32 |
| application, submit an affirmation by the applicant on a
form | 33 |
| to be provided by the Secretary of State, attesting that such | 34 |
| person
is a disabled person as defined in Section 4A of this |
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| Act.
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| An individual, who resides in a veterans home or veterans | 3 |
| hospital
operated by the state or federal government, who makes | 4 |
| an application for an
Illinois Identification Card to be issued | 5 |
| at no fee, must submit, along
with the application, an | 6 |
| affirmation by the applicant on a form provided by
the | 7 |
| Secretary of State, that such person resides in a veterans home | 8 |
| or
veterans hospital operated by the state or federal | 9 |
| government.
| 10 |
| (Source: P.A. 83-1528 .)
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| Section 10-10. The Illinois Lottery Law is amended by | 12 |
| changing Section 10.2 as follows:
| 13 |
| (20 ILCS 1605/10.2) (from Ch. 120, par. 1160.2)
| 14 |
| Sec. 10.2. Application and other fees. Each application | 15 |
| for a new lottery license must be accompanied by a one-time | 16 |
| application fee of $50; the Department, however, may waive the | 17 |
| fee for licenses of limited duration as provided by Department | 18 |
| rule. Each application for renewal of a lottery license must be | 19 |
| accompanied by a renewal fee of $25. Each lottery licensee | 20 |
| granted on-line status pursuant to the Department's rules must | 21 |
| pay a fee of $10 per week as partial reimbursement for | 22 |
| telecommunications charges incurred by the Department in | 23 |
| providing access to the lottery's on-line gaming system. The | 24 |
| Department, by rule, may increase or decrease the amount of | 25 |
| these fees.
The Department may charge an application fee except
| 26 |
| that such fee shall not exceed $10.00 per annum.
| 27 |
| (Source: P.A. 81-477.)
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| ARTICLE 15 |
29 |
| Section 15-1. Short title. This Article may be cited as the | 30 |
| Watercraft Use Tax Law , and references in this Article to "this |
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| Law" mean this Article. |
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| Section 15-5. Definitions. For the purposes of this Law: | 3 |
| "Department" means the Department of Revenue. | 4 |
| "Purchase price" means the reasonable consideration paid | 5 |
| for a watercraft whether received in money or otherwise, | 6 |
| including, but not limited to, cash, credits, property, and | 7 |
| services, and including the value of any motor sold with, or in | 8 |
| conjunction with, the watercraft. Except in the case of | 9 |
| transfers between immediate family members, reasonable | 10 |
| consideration ordinarily means the fair market value on the | 11 |
| date the watercraft or the share of the watercraft was acquired | 12 |
| or the date the watercraft was brought into this State, | 13 |
| whichever is later, unless the taxpayer can demonstrate that a | 14 |
| different value is reasonable. In the case of transfers between | 15 |
| immediate family members, reasonable consideration ordinarily | 16 |
| means the consideration actually paid, unless it appears from | 17 |
| the facts and circumstances that the primary motivation of the | 18 |
| transfer was the avoidance of tax. | 19 |
| "Watercraft" means: | 20 |
| (1) Class 2, Class 3, and Class 4 watercraft, as | 21 |
| defined in Section 3-2 of the Boat Registration and Safety | 22 |
| Act; or | 23 |
| (2) personal watercraft, as defined in Section 1-2 of | 24 |
| the Boat Registration and Safety Act. |
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25 |
| Section 15-10. Tax imposed. A tax is hereby imposed on the | 26 |
| privilege of using, in this State, any watercraft acquired by | 27 |
| gift, transfer, or purchase after September 1, 2004. This tax | 28 |
| does not apply if: (i) the use of the watercraft is otherwise | 29 |
| taxed under the Use Tax Act; (ii) the watercraft is bought and | 30 |
| used by a governmental agency or a society, association, | 31 |
| foundation, or institution organized and operated exclusively | 32 |
| for charitable, religious, or educational purposes and that |
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| entity has been issued an exemption identification number under | 2 |
| Section 1g of the Retailers' Occupation Tax Act; (iii) the use | 3 |
| of the watercraft is not subject to the Use Tax Act by reason | 4 |
| of subsection (a), (b), (c), (d), or (e) of Section 3-55 of | 5 |
| that Act dealing with the prevention of actual or likely | 6 |
| multi-state taxation; (iv) the transfer is a gift to a | 7 |
| beneficiary in the administration of an estate and the | 8 |
| beneficiary is a surviving spouse; or (v) the watercraft is | 9 |
| exempted from the numbering provisions of Section 3-12 of the | 10 |
| Boat Registration and Safety Act. However, the exemption from | 11 |
| tax provided by item (v) shall not apply to a watercraft | 12 |
| exempted under paragraphs A, B, C, F, and G of Section 3-12 of | 13 |
| the Boat Registration and Safety Act if such watercraft are | 14 |
| used upon the waters of this State for more than 30 days in any | 15 |
| calendar year. |
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16 |
| Section 15-15. Rate of tax. | 17 |
| The rate of tax is 6.25% of the purchase price for each | 18 |
| purchase of watercraft that is subject to tax under this Law. | 19 |
| When an ownership share of a watercraft is acquired, the tax is | 20 |
| imposed on the purchase price of that share. All owners are | 21 |
| jointly and severally liable for any tax due as a result of the | 22 |
| purchase, gift, or transfer of an ownership share of the | 23 |
| watercraft. |
|
24 |
| Section 15-20. Returns. | 25 |
| (a) The purchaser, transferee, or donee shall file with the | 26 |
| Department a return signed by the purchaser, transferee, or | 27 |
| donee on a form prescribed by the Department. The return shall | 28 |
| contain a verification in substantially the following form and | 29 |
| such other information as the Department may reasonably | 30 |
| require: | 31 |
| VERIFICATION | 32 |
| I declare that I have examined this return and, to the best |
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| of my knowledge, it is true, correct, and complete. I | 2 |
| understand that the penalty for willfully filing a false | 3 |
| return is a fine not to exceed $1,000 or imprisonment in a | 4 |
| penal institution other than the penitentiary not to exceed | 5 |
| one year, or both a fine and imprisonment. | 6 |
| (b) The return and payment from the purchaser, transferee, | 7 |
| or donee shall be submitted to the Department within 30 days | 8 |
| after the date of purchase, donation, or other transfer or the | 9 |
| date the watercraft is brought into this State, whichever is | 10 |
| later. Payment of tax is a condition to securing certificate of | 11 |
| title for the watercraft from the Department of Natural | 12 |
| Resources. When a purchaser, transferee, or donee pays the tax | 13 |
| imposed by Section 5-10 of this Law, the Department (upon | 14 |
| request therefor from the purchaser, transferee, or donee) | 15 |
| shall issue an appropriate receipt to the purchaser, | 16 |
| transferee, or donee showing that he or she has paid the tax to | 17 |
| the Department. The receipt shall be sufficient to relieve the | 18 |
| purchaser, transferee, or donee from further liability for the | 19 |
| tax to which the receipt may refer. |
|
20 |
| Section 15-25. Filing false or incomplete return. Any | 21 |
| person required to file a return under this Law who willfully | 22 |
| files a false or incomplete return is guilty of a Class A | 23 |
| misdemeanor. |
|
24 |
| Section 15-30. Determining purchase price. For the purpose | 25 |
| of assisting in determining the validity of the purchase price | 26 |
| reported on returns filed with the Department, the Department | 27 |
| may furnish the following information to persons with whom the | 28 |
| Department has contracted for service related to making that | 29 |
| determination: (i) the purchase price stated on the return; | 30 |
| (ii) the watercraft identification number; (iii) the year, the | 31 |
| make, and the model name or number of the watercraft; (iv) the | 32 |
| purchase date; and (v) the hours of operation. |
|
1 |
| Section 15-35. Powers of Department. The Department has | 2 |
| full power to: (i) administer and enforce this Law; (ii) | 3 |
| collect all taxes, penalties, and interest due under this Law; | 4 |
| (iii) dispose of taxes, penalties, and interest so collected in | 5 |
| the manner set forth in this Law; and (iv) determine all rights | 6 |
| to credit memoranda or refunds arising on account of the | 7 |
| erroneous payment of tax, penalty, or interest under this Law. | 8 |
| In the administration of, and compliance with, this Law, the | 9 |
| Department and persons who are subject to this Law have the | 10 |
| same rights, remedies, privileges, immunities, powers, and | 11 |
| duties, and are subject to the same conditions, restrictions, | 12 |
| limitations, penalties, and definitions of terms, and employ | 13 |
| the same modes of procedure, as are prescribed in the Use Tax | 14 |
| Act (except for the provisions of Section 3-70), that are not | 15 |
| inconsistent with this Law, as fully as if the provisions of | 16 |
| the Use Tax Act were set forth in this Law. In addition to any | 17 |
| other penalties imposed under law, any person convicted of | 18 |
| violating the provisions of this Law shall be assessed a fine | 19 |
| of $1,000. |
|
20 |
| Section 15-40. Payments to State and Local Sales Tax Reform | 21 |
| Fund and General Revenue Fund. The Department shall each month, | 22 |
| upon collecting any taxes as provided in this Law, pay 20% of | 23 |
| the money collected into the State and Local Sales Tax Reform | 24 |
| Fund, a special fund in the State treasury, and 80% into the | 25 |
| General Revenue Fund. |
|
26 |
| Section 15-45. Rules. The Department has the authority to | 27 |
| adopt such rules as are reasonable and necessary to implement | 28 |
| the provisions of this Law. |
|
29 |
| Section 15-990. The Retailers' Occupation Tax Act is | 30 |
| amended by changing Section 1c as follows:
|
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| (35 ILCS 120/1c) (from Ch. 120, par. 440c)
| 2 |
| Sec. 1c. A person who is engaged in the business of leasing | 3 |
| or
renting motor vehicles or, beginning July 1, 2003, aircraft | 4 |
| or, beginning September 1, 2004, watercraft to others and
who, | 5 |
| in connection with such
business sells any used motor vehicle ,
| 6 |
| or
aircraft , or watercraft to a purchaser for his
use and not
| 7 |
| for the purpose of resale, is a retailer engaged in the | 8 |
| business of
selling tangible personal property at retail under | 9 |
| this Act to the
extent of the value of the motor vehicle ,
or
| 10 |
| aircraft , or watercraft sold. For the purpose of
this
Section | 11 |
| "motor vehicle" has the meaning prescribed in Section 1-157 of
| 12 |
| the Illinois Vehicle Code, as now or hereafter amended.
For the | 13 |
| purpose of this Section "aircraft" has the meaning prescribed | 14 |
| in
Section
3 of the
Illinois Aeronautics Act.
For the purpose | 15 |
| of this Section, "watercraft" has the meaning prescribed in | 16 |
| Section 5-5 of the Watercraft Use Tax Law. (Nothing
provided | 17 |
| herein shall affect liability incurred under this Act because
| 18 |
| of the sale at retail of such motor vehicles ,
or aircraft , or | 19 |
| watercraft to a lessor.)
| 20 |
| (Source: P.A. 93-24, eff. 6-20-03.)
|
|
21 |
| Section 15-995. The Boat Registration and Safety Act is | 22 |
| amended by changing Section 3A-5 as follows:
| 23 |
| (625 ILCS 45/3A-5) (from Ch. 95 1/2, par. 313A-5)
| 24 |
| Sec. 3A-5. Certificate of title - Issuance - Records.
| 25 |
| (a) The Department of Natural Resources shall file each
| 26 |
| application received and, when satisfied as to its genuineness | 27 |
| and regularity,
and that no tax imposed by the " Use Tax Act "
or | 28 |
| the Watercraft Use Tax Law is owed as evidenced by the
receipt | 29 |
| for payment or determination of exemption from the Department | 30 |
| of
Revenue provided for in Section 3A-3 of this Article, and | 31 |
| that the applicant is
entitled to the issuance of a certificate |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| of title, shall issue a certificate
of title.
| 2 |
| (b) The Department of Natural Resources shall maintain
a | 3 |
| record of all certificates of title issued under a distinctive | 4 |
| title number
assigned to the watercraft and, in the discretion | 5 |
| of the Department, in any other method determined.
| 6 |
| (Source: P.A. 89-445, eff. 2-7-96.)
|
|
7 |
| ARTICLE 20 |
8 |
| Section 20-10. The Use Tax Act is amended by changing | 9 |
| Sections 3-5 and 3-85 as follows:
| 10 |
| (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
| 11 |
| Sec. 3-5. Exemptions. Use of the following tangible | 12 |
| personal property
is exempt from the tax imposed by this Act:
| 13 |
| (1) Personal property purchased from a corporation, | 14 |
| society, association,
foundation, institution, or | 15 |
| organization, other than a limited liability
company, that is | 16 |
| organized and operated as a not-for-profit service enterprise
| 17 |
| for the benefit of persons 65 years of age or older if the | 18 |
| personal property
was not purchased by the enterprise for the | 19 |
| purpose of resale by the
enterprise.
| 20 |
| (2) Personal property purchased by a not-for-profit | 21 |
| Illinois county
fair association for use in conducting, | 22 |
| operating, or promoting the
county fair.
| 23 |
| (3) Personal property purchased by a not-for-profit
arts or | 24 |
| cultural organization that establishes, by proof required by | 25 |
| the
Department by
rule, that it has received an exemption under | 26 |
| Section 501(c)(3) of the Internal
Revenue Code and that is | 27 |
| organized and operated primarily for the
presentation
or | 28 |
| support of arts or cultural programming, activities, or | 29 |
| services. These
organizations include, but are not limited to, | 30 |
| music and dramatic arts
organizations such as symphony | 31 |
| orchestras and theatrical groups, arts and
cultural service |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| organizations, local arts councils, visual arts organizations,
| 2 |
| and media arts organizations.
On and after the effective date | 3 |
| of this amendatory Act of the 92nd General
Assembly, however, | 4 |
| an entity otherwise eligible for this exemption shall not
make | 5 |
| tax-free purchases unless it has an active identification | 6 |
| number issued by
the Department.
| 7 |
| (4) Personal property purchased by a governmental body, by | 8 |
| a
corporation, society, association, foundation, or | 9 |
| institution organized and
operated exclusively for charitable, | 10 |
| religious, or educational purposes, or
by a not-for-profit | 11 |
| corporation, society, association, foundation,
institution, or | 12 |
| organization that has no compensated officers or employees
and | 13 |
| that is organized and operated primarily for the recreation of | 14 |
| persons
55 years of age or older. A limited liability company | 15 |
| may qualify for the
exemption under this paragraph only if the | 16 |
| limited liability company is
organized and operated | 17 |
| exclusively for educational purposes. On and after July
1, | 18 |
| 1987, however, no entity otherwise eligible for this exemption | 19 |
| shall make
tax-free purchases unless it has an active exemption | 20 |
| identification number
issued by the Department.
| 21 |
| (5) Until July 1, 2003, a passenger car that is a | 22 |
| replacement vehicle to
the extent that the
purchase price of | 23 |
| the car is subject to the Replacement Vehicle Tax.
| 24 |
| (6) Until July 1, 2003 and beginning again on September 1, | 25 |
| 2004 , graphic arts machinery and equipment, including
repair | 26 |
| and replacement
parts, both new and used, and including that | 27 |
| manufactured on special order,
certified by the purchaser to be | 28 |
| used primarily for graphic arts production,
and including | 29 |
| machinery and equipment purchased for lease.
Equipment | 30 |
| includes chemicals or chemicals acting as catalysts but only if
| 31 |
| the
chemicals or chemicals acting as catalysts effect a direct | 32 |
| and immediate change
upon a graphic arts product.
| 33 |
| (7) Farm chemicals.
| 34 |
| (8) Legal tender, currency, medallions, or gold or silver |
|
|
|
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|
| 1 |
| coinage issued by
the State of Illinois, the government of the | 2 |
| United States of America, or the
government of any foreign | 3 |
| country, and bullion.
| 4 |
| (9) Personal property purchased from a teacher-sponsored | 5 |
| student
organization affiliated with an elementary or | 6 |
| secondary school located in
Illinois.
| 7 |
| (10) A motor vehicle of the first division, a motor vehicle | 8 |
| of the
second division that is a self-contained motor vehicle | 9 |
| designed or
permanently converted to provide living quarters | 10 |
| for recreational, camping,
or travel use, with direct walk | 11 |
| through to the living quarters from the
driver's seat, or a | 12 |
| motor vehicle of the second division that is of the
van | 13 |
| configuration designed for the transportation of not less than | 14 |
| 7 nor
more than 16 passengers, as defined in Section 1-146 of | 15 |
| the Illinois
Vehicle Code, that is used for automobile renting, | 16 |
| as defined in the
Automobile Renting Occupation and Use Tax | 17 |
| Act.
| 18 |
| (11) Farm machinery and equipment, both new and used,
| 19 |
| including that manufactured on special order, certified by the | 20 |
| purchaser
to be used primarily for production agriculture or | 21 |
| State or federal
agricultural programs, including individual | 22 |
| replacement parts for
the machinery and equipment, including | 23 |
| machinery and equipment
purchased
for lease,
and including | 24 |
| implements of husbandry defined in Section 1-130 of
the | 25 |
| Illinois Vehicle Code, farm machinery and agricultural | 26 |
| chemical and
fertilizer spreaders, and nurse wagons required to | 27 |
| be registered
under Section 3-809 of the Illinois Vehicle Code,
| 28 |
| but excluding other motor
vehicles required to be
registered | 29 |
| under the Illinois Vehicle Code.
Horticultural polyhouses or | 30 |
| hoop houses used for propagating, growing, or
overwintering | 31 |
| plants shall be considered farm machinery and equipment under
| 32 |
| this item (11).
Agricultural chemical tender tanks and dry | 33 |
| boxes shall include units sold
separately from a motor vehicle | 34 |
| required to be licensed and units sold mounted
on a motor |
|
|
|
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|
| 1 |
| vehicle required to be licensed if the selling price of the | 2 |
| tender
is separately stated.
| 3 |
| Farm machinery and equipment shall include precision | 4 |
| farming equipment
that is
installed or purchased to be | 5 |
| installed on farm machinery and equipment
including, but not | 6 |
| limited to, tractors, harvesters, sprayers, planters,
seeders, | 7 |
| or spreaders.
Precision farming equipment includes, but is not | 8 |
| limited to, soil testing
sensors, computers, monitors, | 9 |
| software, global positioning
and mapping systems, and other | 10 |
| such equipment.
| 11 |
| Farm machinery and equipment also includes computers, | 12 |
| sensors, software, and
related equipment used primarily in the
| 13 |
| computer-assisted operation of production agriculture | 14 |
| facilities, equipment,
and
activities such as, but not limited | 15 |
| to,
the collection, monitoring, and correlation of
animal and | 16 |
| crop data for the purpose of
formulating animal diets and | 17 |
| agricultural chemicals. This item (11) is exempt
from the | 18 |
| provisions of
Section 3-90.
| 19 |
| (12) Fuel and petroleum products sold to or used by an air | 20 |
| common
carrier, certified by the carrier to be used for | 21 |
| consumption, shipment, or
storage in the conduct of its | 22 |
| business as an air common carrier, for a
flight destined for or | 23 |
| returning from a location or locations
outside the United | 24 |
| States without regard to previous or subsequent domestic
| 25 |
| stopovers.
| 26 |
| (13) Proceeds of mandatory service charges separately
| 27 |
| stated on customers' bills for the purchase and consumption of | 28 |
| food and
beverages purchased at retail from a retailer, to the | 29 |
| extent that the proceeds
of the service charge are in fact | 30 |
| turned over as tips or as a substitute
for tips to the | 31 |
| employees who participate directly in preparing, serving,
| 32 |
| hosting or cleaning up the food or beverage function with | 33 |
| respect to which
the service charge is imposed.
| 34 |
| (14) Until July 1, 2003, oil field exploration, drilling, |
|
|
|
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|
| 1 |
| and production
equipment,
including (i) rigs and parts of rigs, | 2 |
| rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | 3 |
| tubular goods,
including casing and drill strings, (iii) pumps | 4 |
| and pump-jack units, (iv)
storage tanks and flow lines, (v) any | 5 |
| individual replacement part for oil
field exploration, | 6 |
| drilling, and production equipment, and (vi) machinery and
| 7 |
| equipment purchased
for lease; but excluding motor vehicles | 8 |
| required to be registered under the
Illinois Vehicle Code.
| 9 |
| (15) Photoprocessing machinery and equipment, including | 10 |
| repair and
replacement parts, both new and used, including that
| 11 |
| manufactured on special order, certified by the purchaser to be | 12 |
| used
primarily for photoprocessing, and including
| 13 |
| photoprocessing machinery and equipment purchased for lease.
| 14 |
| (16) Until July 1, 2003, coal exploration, mining, | 15 |
| offhighway hauling,
processing, maintenance, and reclamation | 16 |
| equipment,
including replacement parts and equipment, and
| 17 |
| including equipment purchased for lease, but excluding motor
| 18 |
| vehicles required to be registered under the Illinois Vehicle | 19 |
| Code.
| 20 |
| (17) Until July 1, 2003, distillation machinery and | 21 |
| equipment, sold as a
unit or kit,
assembled or installed by the | 22 |
| retailer, certified by the user to be used
only for the | 23 |
| production of ethyl alcohol that will be used for consumption
| 24 |
| as motor fuel or as a component of motor fuel for the personal | 25 |
| use of the
user, and not subject to sale or resale.
| 26 |
| (18) Manufacturing and assembling machinery and equipment | 27 |
| used
primarily in the process of manufacturing or assembling | 28 |
| tangible
personal property for wholesale or retail sale or | 29 |
| lease, whether that sale
or lease is made directly by the | 30 |
| manufacturer or by some other person,
whether the materials | 31 |
| used in the process are
owned by the manufacturer or some other | 32 |
| person, or whether that sale or
lease is made apart from or as | 33 |
| an incident to the seller's engaging in
the service occupation | 34 |
| of producing machines, tools, dies, jigs,
patterns, gauges, or |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| other similar items of no commercial value on
special order for | 2 |
| a particular purchaser.
| 3 |
| (19) Personal property delivered to a purchaser or | 4 |
| purchaser's donee
inside Illinois when the purchase order for | 5 |
| that personal property was
received by a florist located | 6 |
| outside Illinois who has a florist located
inside Illinois | 7 |
| deliver the personal property.
| 8 |
| (20) Semen used for artificial insemination of livestock | 9 |
| for direct
agricultural production.
| 10 |
| (21) Horses, or interests in horses, registered with and | 11 |
| meeting the
requirements of any of the
Arabian Horse Club | 12 |
| Registry of America, Appaloosa Horse Club, American Quarter
| 13 |
| Horse Association, United States
Trotting Association, or | 14 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 15 |
| racing for prizes.
| 16 |
| (22) Computers and communications equipment utilized for | 17 |
| any
hospital
purpose
and equipment used in the diagnosis,
| 18 |
| analysis, or treatment of hospital patients purchased by a | 19 |
| lessor who leases
the
equipment, under a lease of one year or | 20 |
| longer executed or in effect at the
time the lessor would | 21 |
| otherwise be subject to the tax imposed by this Act, to a
| 22 |
| hospital
that has been issued an active tax exemption | 23 |
| identification number by
the
Department under Section 1g of the | 24 |
| Retailers' Occupation Tax Act. If the
equipment is leased in a | 25 |
| manner that does not qualify for
this exemption or is used in | 26 |
| any other non-exempt manner, the lessor
shall be liable for the
| 27 |
| tax imposed under this Act or the Service Use Tax Act, as the | 28 |
| case may
be, based on the fair market value of the property at | 29 |
| the time the
non-qualifying use occurs. No lessor shall collect | 30 |
| or attempt to collect an
amount (however
designated) that | 31 |
| purports to reimburse that lessor for the tax imposed by this
| 32 |
| Act or the Service Use Tax Act, as the case may be, if the tax | 33 |
| has not been
paid by the lessor. If a lessor improperly | 34 |
| collects any such amount from the
lessee, the lessee shall have |
|
|
|
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LRB093 15831 BDD 52995 a |
|
| 1 |
| a legal right to claim a refund of that amount
from the lessor. | 2 |
| If, however, that amount is not refunded to the lessee for
any | 3 |
| reason, the lessor is liable to pay that amount to the | 4 |
| Department.
| 5 |
| (23) Personal property purchased by a lessor who leases the
| 6 |
| property, under
a
lease of
one year or longer executed or in | 7 |
| effect at the time
the lessor would otherwise be subject to the | 8 |
| tax imposed by this Act,
to a governmental body
that has been | 9 |
| issued an active sales tax exemption identification number by | 10 |
| the
Department under Section 1g of the Retailers' Occupation | 11 |
| Tax Act.
If the
property is leased in a manner that does not | 12 |
| qualify for
this exemption
or used in any other non-exempt | 13 |
| manner, the lessor shall be liable for the
tax imposed under | 14 |
| this Act or the Service Use Tax Act, as the case may
be, based | 15 |
| on the fair market value of the property at the time the
| 16 |
| non-qualifying use occurs. No lessor shall collect or attempt | 17 |
| to collect an
amount (however
designated) that purports to | 18 |
| reimburse that lessor for the tax imposed by this
Act or the | 19 |
| Service Use Tax Act, as the case may be, if the tax has not been
| 20 |
| paid by the lessor. If a lessor improperly collects any such | 21 |
| amount from the
lessee, the lessee shall have a legal right to | 22 |
| claim a refund of that amount
from the lessor. If, however, | 23 |
| that amount is not refunded to the lessee for
any reason, the | 24 |
| lessor is liable to pay that amount to the Department.
| 25 |
| (24) Beginning with taxable years ending on or after | 26 |
| December
31, 1995
and
ending with taxable years ending on or | 27 |
| before December 31, 2004,
personal property that is
donated for | 28 |
| disaster relief to be used in a State or federally declared
| 29 |
| disaster area in Illinois or bordering Illinois by a | 30 |
| manufacturer or retailer
that is registered in this State to a | 31 |
| corporation, society, association,
foundation, or institution | 32 |
| that has been issued a sales tax exemption
identification | 33 |
| number by the Department that assists victims of the disaster
| 34 |
| who reside within the declared disaster area.
|
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| (25) Beginning with taxable years ending on or after | 2 |
| December
31, 1995 and
ending with taxable years ending on or | 3 |
| before December 31, 2004, personal
property that is used in the | 4 |
| performance of infrastructure repairs in this
State, including | 5 |
| but not limited to municipal roads and streets, access roads,
| 6 |
| bridges, sidewalks, waste disposal systems, water and sewer | 7 |
| line extensions,
water distribution and purification | 8 |
| facilities, storm water drainage and
retention facilities, and | 9 |
| sewage treatment facilities, resulting from a State
or | 10 |
| federally declared disaster in Illinois or bordering Illinois | 11 |
| when such
repairs are initiated on facilities located in the | 12 |
| declared disaster area
within 6 months after the disaster.
| 13 |
| (26) Beginning July 1, 1999, game or game birds purchased | 14 |
| at a "game
breeding
and hunting preserve area" or an "exotic | 15 |
| game hunting area" as those terms are
used in
the Wildlife Code | 16 |
| or at a hunting enclosure approved through rules adopted by
the
| 17 |
| Department of Natural Resources. This paragraph is exempt from | 18 |
| the provisions
of
Section 3-90.
| 19 |
| (27) A motor vehicle, as that term is defined in Section | 20 |
| 1-146
of the
Illinois
Vehicle Code, that is donated to a | 21 |
| corporation, limited liability company,
society, association, | 22 |
| foundation, or institution that is determined by the
Department | 23 |
| to be organized and operated exclusively for educational | 24 |
| purposes.
For purposes of this exemption, "a corporation, | 25 |
| limited liability company,
society, association, foundation, | 26 |
| or institution organized and operated
exclusively for | 27 |
| educational purposes" means all tax-supported public schools,
| 28 |
| private schools that offer systematic instruction in useful | 29 |
| branches of
learning by methods common to public schools and | 30 |
| that compare favorably in
their scope and intensity with the | 31 |
| course of study presented in tax-supported
schools, and | 32 |
| vocational or technical schools or institutes organized and
| 33 |
| operated exclusively to provide a course of study of not less | 34 |
| than 6 weeks
duration and designed to prepare individuals to |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| follow a trade or to pursue a
manual, technical, mechanical, | 2 |
| industrial, business, or commercial
occupation.
| 3 |
| (28) Beginning January 1, 2000, personal property, | 4 |
| including
food,
purchased through fundraising
events for the | 5 |
| benefit of
a public or private elementary or
secondary school, | 6 |
| a group of those schools, or one or more school
districts if | 7 |
| the events are
sponsored by an entity recognized by the school | 8 |
| district that consists
primarily of volunteers and includes
| 9 |
| parents and teachers of the school children. This paragraph | 10 |
| does not apply
to fundraising
events (i) for the benefit of | 11 |
| private home instruction or (ii)
for which the fundraising | 12 |
| entity purchases the personal property sold at
the events from | 13 |
| another individual or entity that sold the property for the
| 14 |
| purpose of resale by the fundraising entity and that
profits | 15 |
| from the sale to the
fundraising entity. This paragraph is | 16 |
| exempt
from the provisions
of Section 3-90.
| 17 |
| (29) Beginning January 1, 2000 and through December 31, | 18 |
| 2001, new or
used automatic vending
machines that prepare and | 19 |
| serve hot food and beverages, including coffee, soup,
and
other | 20 |
| items, and replacement parts for these machines.
Beginning | 21 |
| January 1,
2002 and through June 30, 2003, machines and parts | 22 |
| for machines used in
commercial, coin-operated amusement and | 23 |
| vending business if a use or occupation
tax is paid on the | 24 |
| gross receipts derived from the use of the commercial,
| 25 |
| coin-operated amusement and vending machines.
This
paragraph
| 26 |
| is exempt from the provisions of Section 3-90.
| 27 |
| (30) Food for human consumption that is to be consumed off | 28 |
| the premises
where it is sold (other than alcoholic beverages, | 29 |
| soft drinks, and food that
has been prepared for immediate | 30 |
| consumption) and prescription and
nonprescription medicines, | 31 |
| drugs, medical appliances, and insulin, urine
testing | 32 |
| materials, syringes, and needles used by diabetics, for human | 33 |
| use, when
purchased for use by a person receiving medical | 34 |
| assistance under Article 5 of
the Illinois Public Aid Code who |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| resides in a licensed long-term care facility,
as defined in | 2 |
| the Nursing Home Care Act.
| 3 |
| (31) Beginning on
the effective date of this amendatory Act | 4 |
| of the 92nd General Assembly,
computers and communications | 5 |
| equipment
utilized for any hospital purpose and equipment used | 6 |
| in the diagnosis,
analysis, or treatment of hospital patients | 7 |
| purchased by a lessor who leases
the equipment, under a lease | 8 |
| of one year or longer executed or in effect at the
time the | 9 |
| lessor would otherwise be subject to the tax imposed by this | 10 |
| Act, to a
hospital that has been issued an active tax exemption | 11 |
| identification number by
the Department under Section 1g of the | 12 |
| Retailers' Occupation Tax Act. If the
equipment is leased in a | 13 |
| manner that does not qualify for this exemption or is
used in | 14 |
| any other nonexempt manner, the lessor shall be liable for the | 15 |
| tax
imposed under this Act or the Service Use Tax Act, as the | 16 |
| case may be, based on
the fair market value of the property at | 17 |
| the time the nonqualifying use
occurs. No lessor shall collect | 18 |
| or attempt to collect an amount (however
designated) that | 19 |
| purports to reimburse that lessor for the tax imposed by this
| 20 |
| Act or the Service Use Tax Act, as the case may be, if the tax | 21 |
| has not been
paid by the lessor. If a lessor improperly | 22 |
| collects any such amount from the
lessee, the lessee shall have | 23 |
| a legal right to claim a refund of that amount
from the lessor. | 24 |
| If, however, that amount is not refunded to the lessee for
any | 25 |
| reason, the lessor is liable to pay that amount to the | 26 |
| Department.
This paragraph is exempt from the provisions of | 27 |
| Section 3-90.
| 28 |
| (32) Beginning on
the effective date of this amendatory Act | 29 |
| of the 92nd General Assembly,
personal property purchased by a | 30 |
| lessor who leases the property,
under a lease of one year or | 31 |
| longer executed or in effect at the time the
lessor would | 32 |
| otherwise be subject to the tax imposed by this Act, to a
| 33 |
| governmental body that has been issued an active sales tax | 34 |
| exemption
identification number by the Department under |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| Section 1g of the Retailers'
Occupation Tax Act. If the | 2 |
| property is leased in a manner that does not
qualify for this | 3 |
| exemption or used in any other nonexempt manner, the lessor
| 4 |
| shall be liable for the tax imposed under this Act or the | 5 |
| Service Use Tax Act,
as the case may be, based on the fair | 6 |
| market value of the property at the time
the nonqualifying use | 7 |
| occurs. No lessor shall collect or attempt to collect
an amount | 8 |
| (however designated) that purports to reimburse that lessor for | 9 |
| the
tax imposed by this Act or the Service Use Tax Act, as the | 10 |
| case may be, if the
tax has not been paid by the lessor. If a | 11 |
| lessor improperly collects any such
amount from the lessee, the | 12 |
| lessee shall have a legal right to claim a refund
of that | 13 |
| amount from the lessor. If, however, that amount is not | 14 |
| refunded to
the lessee for any reason, the lessor is liable to | 15 |
| pay that amount to the
Department. This paragraph is exempt | 16 |
| from the provisions of Section 3-90.
| 17 |
| (33) On and after July 1, 2003, the use in this State of | 18 |
| motor vehicles of
the second division with a gross vehicle | 19 |
| weight in excess of 8,000 pounds and
that are subject to the | 20 |
| commercial distribution fee imposed under Section
3-815.1 of | 21 |
| the Illinois Vehicle Code.
This exemption applies to repair and
| 22 |
| replacement parts added after the initial purchase of such a | 23 |
| motor vehicle if
that motor
vehicle is used in a manner that | 24 |
| would qualify for the rolling stock exemption
otherwise | 25 |
| provided for in this Act.
| 26 |
| (Source: P.A. 92-35, eff.
7-1-01; 92-227, eff. 8-2-01; 92-337, | 27 |
| eff. 8-10-01; 92-484, eff. 8-23-01;
92-651, eff. 7-11-02; | 28 |
| 93-23, eff. 6-20-03; 93-24, eff. 6-20-03; revised
9-11-03.)
| 29 |
| (35 ILCS 105/3-85)
| 30 |
| Sec. 3-85. Manufacturer's Purchase Credit. For purchases | 31 |
| of machinery and
equipment made on and after January 1, 1995 | 32 |
| and through June 30, 2003, and on and after September 1, 2004,
| 33 |
| a
purchaser of manufacturing
machinery and equipment that |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| qualifies for the exemption provided by
paragraph (18) of | 2 |
| Section 3-5 of this Act earns a credit in an amount equal to
a | 3 |
| fixed percentage of the tax which would have been incurred | 4 |
| under this Act on
those purchases.
For purchases of graphic | 5 |
| arts machinery and equipment made on or after July
1, 1996 and | 6 |
| through June 30, 2003, and on and after September 1, 2004, a | 7 |
| purchaser of graphic arts machinery
and equipment that | 8 |
| qualifies for
the exemption provided by paragraph (6) of | 9 |
| Section 3-5 of this Act earns a
credit in an amount equal to a | 10 |
| fixed percentage of the tax that would have been
incurred under | 11 |
| this Act on those purchases.
The credit earned for purchases of | 12 |
| manufacturing machinery and equipment or
graphic arts | 13 |
| machinery and equipment shall be referred to as the
| 14 |
| Manufacturer's Purchase
Credit.
A graphic arts producer is a | 15 |
| person engaged in graphic arts production as
defined in Section | 16 |
| 2-30 of the Retailers' Occupation Tax Act. Beginning July
1, | 17 |
| 1996, all references in this Section to manufacturers or | 18 |
| manufacturing shall
also be deemed to refer to graphic arts | 19 |
| producers or graphic arts production.
| 20 |
| The amount of credit shall be a percentage of the tax that | 21 |
| would have
been incurred on the purchase of manufacturing | 22 |
| machinery and equipment
or graphic arts machinery and equipment
| 23 |
| if the exemptions provided by paragraph (6) or paragraph
(18) | 24 |
| of Section 3-5
of this Act had not been applicable. The | 25 |
| percentage shall be as follows:
| 26 |
| (1) 15% for purchases made on or before June 30, 1995.
| 27 |
| (2) 25% for purchases made after June 30, 1995, and on | 28 |
| or before June 30,
1996.
| 29 |
| (3) 40% for purchases made after June 30, 1996, and on | 30 |
| or before June 30,
1997.
| 31 |
| (4) 50% for purchases made on or after July 1, 1997.
| 32 |
| (a) Manufacturer's Purchase Credit earned prior to July 1, | 33 |
| 2003. This subsection (a) applies to Manufacturer's Purchase | 34 |
| Credit earned prior to July 1, 2003. A purchaser of production |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| related tangible personal property desiring to use
the | 2 |
| Manufacturer's Purchase Credit shall certify to the seller | 3 |
| prior to
October 1, 2003 that the
purchaser is satisfying all | 4 |
| or part of the liability under the Use Tax Act or
the Service | 5 |
| Use Tax Act that is due on the
purchase of the production | 6 |
| related tangible personal property by use of
Manufacturer's | 7 |
| Purchase Credit. The Manufacturer's Purchase Credit
| 8 |
| certification must be dated and shall include the name and | 9 |
| address of the
purchaser, the purchaser's registration number, | 10 |
| if registered, the credit being
applied, and a statement that | 11 |
| the State Use Tax or Service Use Tax liability is
being | 12 |
| satisfied with the manufacturer's or graphic arts producer's
| 13 |
| accumulated purchase credit.
Certification may be incorporated | 14 |
| into the manufacturer's or graphic arts
producer's purchase | 15 |
| order.
Manufacturer's Purchase Credit certification provided | 16 |
| by the manufacturer
or graphic
arts producer prior to October | 17 |
| 1, 2003 may be used to
satisfy the retailer's or serviceman's | 18 |
| liability under the Retailers'
Occupation Tax Act or Service | 19 |
| Occupation Tax Act for the credit claimed, not to
exceed 6.25% | 20 |
| of the receipts subject to tax from a qualifying purchase, but
| 21 |
| only if the retailer or serviceman reports the Manufacturer's | 22 |
| Purchase Credit
claimed as required by the Department. A | 23 |
| Manufacturer's Purchase Credit
reported on any original or | 24 |
| amended return
filed under
this Act after October 20, 2003 | 25 |
| shall be disallowed. The Manufacturer's
Purchase Credit
earned | 26 |
| by purchase of exempt manufacturing machinery and equipment
or | 27 |
| graphic arts machinery and equipment is a non-transferable | 28 |
| credit. A
manufacturer or graphic arts producer that enters | 29 |
| into a
contract involving the installation of tangible personal | 30 |
| property
into real estate within a manufacturing or graphic | 31 |
| arts production facility
may, prior to October 1, 2003, | 32 |
| authorize a construction contractor
to utilize credit | 33 |
| accumulated by the manufacturer or graphic arts producer
to
| 34 |
| purchase the tangible personal property. A manufacturer or |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| graphic arts
producer
intending to use accumulated credit to | 2 |
| purchase such tangible personal
property shall execute a | 3 |
| written contract authorizing the contractor to utilize
a | 4 |
| specified dollar amount of credit. The contractor shall | 5 |
| furnish, prior to
October 1, 2003, the supplier
with the | 6 |
| manufacturer's or graphic arts producer's name, registration | 7 |
| or
resale
number, and a statement that a specific amount of the | 8 |
| Use Tax or Service Use
Tax liability, not to exceed 6.25% of | 9 |
| the selling price, is being satisfied
with the credit. The | 10 |
| manufacturer or graphic arts producer shall remain
liable to | 11 |
| timely report all
information required by the annual Report of | 12 |
| Manufacturer's Purchase Credit
Used for all credit utilized by | 13 |
| a construction contractor.
| 14 |
| No Manufacturer's Purchase Credit earned prior to July 1, | 15 |
| 2003 may be used after October 1, 2003. The Manufacturer's | 16 |
| Purchase Credit may be used to satisfy liability under the
Use | 17 |
| Tax Act or the Service Use Tax Act due on the purchase of | 18 |
| production
related tangible personal property (including | 19 |
| purchases by a manufacturer, by
a graphic arts producer, or by
| 20 |
| a lessor who rents or leases the use of the property to a | 21 |
| manufacturer or
graphic arts producer)
that does not otherwise | 22 |
| qualify
for the manufacturing machinery and equipment
| 23 |
| exemption or the graphic arts machinery and equipment | 24 |
| exemption.
"Production related
tangible personal property" | 25 |
| means (i) all tangible personal property used or
consumed by | 26 |
| the purchaser in a manufacturing facility in which a | 27 |
| manufacturing
process described in Section 2-45 of the | 28 |
| Retailers' Occupation Tax Act takes
place, including tangible | 29 |
| personal property purchased for incorporation into
real estate | 30 |
| within a manufacturing facility
and including, but not limited | 31 |
| to, tangible
personal property used or consumed in activities | 32 |
| such as preproduction material
handling, receiving, quality | 33 |
| control, inventory control, storage, staging, and
packaging | 34 |
| for shipping and transportation purposes; (ii) all tangible
|
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| personal property used or consumed by the purchaser in a | 2 |
| graphic arts facility
in which graphic arts production as | 3 |
| described in Section 2-30 of the Retailers'
Occupation Tax Act | 4 |
| takes place, including tangible personal property purchased
| 5 |
| for incorporation into real estate within a graphic arts | 6 |
| facility and
including, but not limited to, all tangible | 7 |
| personal property used or consumed
in activities such as | 8 |
| graphic arts preliminary or pre-press production,
| 9 |
| pre-production material handling, receiving, quality control, | 10 |
| inventory
control, storage, staging, sorting, labeling, | 11 |
| mailing, tying, wrapping, and
packaging; and (iii) all tangible
| 12 |
| personal property used or consumed by the purchaser
for | 13 |
| research and development.
"Production related tangible | 14 |
| personal property" does not include (i) tangible
personal | 15 |
| property used, within or without a manufacturing facility, in | 16 |
| sales,
purchasing, accounting, fiscal management, marketing, | 17 |
| personnel recruitment or
selection, or landscaping or (ii) | 18 |
| tangible personal property required to be
titled or registered | 19 |
| with a department, agency, or unit of federal, state, or
local | 20 |
| government. The Manufacturer's Purchase Credit may be used, | 21 |
| prior to
October 1, 2003, to satisfy
the tax arising either | 22 |
| from the purchase of
machinery and equipment on or after | 23 |
| January 1,
1995 for which the exemption
provided by paragraph | 24 |
| (18) of Section 3-5 of this Act was
erroneously claimed, or the | 25 |
| purchase of machinery and equipment on or after
July 1, 1996 | 26 |
| for which the exemption provided by paragraph (6) of Section | 27 |
| 3-5
of this Act was erroneously claimed, but not in
| 28 |
| satisfaction of penalty, if any, and interest for failure to | 29 |
| pay the tax
when due. A
purchaser of production related | 30 |
| tangible personal property who is required to
pay Illinois Use | 31 |
| Tax or Service Use Tax on the purchase directly to the
| 32 |
| Department may, prior to October 1, 2003, utilize the | 33 |
| Manufacturer's
Purchase Credit in satisfaction of
the tax | 34 |
| arising from that purchase, but not in
satisfaction of penalty |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| and interest.
A purchaser who uses the Manufacturer's Purchase | 2 |
| Credit to purchase property
which is later determined not to be | 3 |
| production related tangible personal
property may be liable for | 4 |
| tax, penalty, and interest on the purchase of that
property as | 5 |
| of the date of purchase but shall be entitled to use the | 6 |
| disallowed
Manufacturer's Purchase
Credit, so long as it has | 7 |
| not expired and is used prior to October 1, 2003,
on qualifying | 8 |
| purchases of production
related tangible personal property not | 9 |
| previously subject to credit usage.
The Manufacturer's | 10 |
| Purchase Credit earned by a manufacturer or graphic arts
| 11 |
| producer
expires the last day of the second calendar year | 12 |
| following the
calendar year in which the credit arose. No | 13 |
| Manufacturer's Purchase Credit
may be used after September 30, | 14 |
| 2003
regardless of
when that credit was earned.
| 15 |
| A purchaser earning Manufacturer's Purchase Credit shall | 16 |
| sign and file an
annual Report of Manufacturer's Purchase | 17 |
| Credit Earned for each calendar year
no later than the last day | 18 |
| of the sixth month following the calendar year in
which a | 19 |
| Manufacturer's Purchase Credit is earned. A Report of | 20 |
| Manufacturer's
Purchase Credit Earned shall be filed on forms | 21 |
| as prescribed or approved by the
Department and shall state, | 22 |
| for each month of the calendar year: (i) the total
purchase | 23 |
| price of all purchases of exempt manufacturing or graphic arts
| 24 |
| machinery on which the
credit was earned; (ii) the total State | 25 |
| Use Tax or Service Use Tax which would
have been due on those | 26 |
| items; (iii) the percentage used to calculate the amount
of | 27 |
| credit earned; (iv) the amount of credit earned; and (v) such | 28 |
| other
information as the Department may reasonably require. A | 29 |
| purchaser earning
Manufacturer's Purchase Credit shall | 30 |
| maintain records which identify, as to
each purchase of | 31 |
| manufacturing or graphic arts machinery and equipment
on which | 32 |
| the purchaser
earned Manufacturer's Purchase Credit, the | 33 |
| vendor (including, if applicable,
either the vendor's | 34 |
| registration number or Federal Employer Identification
|
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| Number), the purchase price, and the amount of Manufacturer's | 2 |
| Purchase Credit
earned on each purchase.
| 3 |
| A purchaser using Manufacturer's Purchase Credit shall | 4 |
| sign and file an
annual Report of Manufacturer's Purchase | 5 |
| Credit Used for each calendar year no
later than the last day | 6 |
| of the sixth month following the calendar year in which
a | 7 |
| Manufacturer's Purchase Credit is used. A Report of | 8 |
| Manufacturer's Purchase
Credit Used
shall be filed on forms as | 9 |
| prescribed or approved by the Department and
shall state, for | 10 |
| each month of the calendar year: (i) the total purchase price
| 11 |
| of production related tangible personal property purchased | 12 |
| from Illinois
suppliers; (ii) the total purchase price of | 13 |
| production related tangible
personal property purchased from | 14 |
| out-of-state suppliers; (iii) the total amount
of credit used | 15 |
| during such month; and (iv) such
other information as the | 16 |
| Department may reasonably require. A purchaser using
| 17 |
| Manufacturer's Purchase Credit shall maintain records that | 18 |
| identify, as to
each purchase of production related tangible | 19 |
| personal property on which the
purchaser used Manufacturer's | 20 |
| Purchase Credit, the vendor (including, if
applicable, either | 21 |
| the vendor's registration number or Federal Employer
| 22 |
| Identification Number), the purchase price, and the amount of | 23 |
| Manufacturer's
Purchase Credit used on each purchase.
| 24 |
| No annual report shall be filed before May 1, 1996 or after | 25 |
| June 30,
2004. A purchaser that fails to
file an annual Report | 26 |
| of Manufacturer's Purchase Credit Earned or an annual
Report of | 27 |
| Manufacturer's
Purchase Credit Used by the last day of the | 28 |
| sixth month following the
end of the calendar year shall | 29 |
| forfeit all Manufacturer's Purchase Credit for
that calendar | 30 |
| year unless it establishes that its failure to file was due to
| 31 |
| reasonable cause. Manufacturer's Purchase Credit reports may | 32 |
| be amended
to report and claim credit on qualifying purchases | 33 |
| not previously reported at
any time before the credit would | 34 |
| have expired, unless both the Department and
the purchaser have |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| agreed to an extension of
the statute of limitations for the | 2 |
| issuance of a notice of tax liability as
provided in Section 4 | 3 |
| of the Retailers' Occupation Tax Act. If the time for
| 4 |
| assessment or refund has been extended, then amended reports | 5 |
| for a calendar
year may be filed at any time prior to the date | 6 |
| to which the statute of
limitations for the calendar year or | 7 |
| portion thereof has been extended.
No Manufacturer's Purchase
| 8 |
| Credit report filed with the Department for periods prior to | 9 |
| January 1, 1995
shall be approved.
Manufacturer's Purchase | 10 |
| Credit claimed on an amended report may be used,
until October | 11 |
| 1, 2003, to
satisfy tax liability under the Use Tax Act or the | 12 |
| Service Use Tax Act (i) on
qualifying purchases of production | 13 |
| related tangible personal property made
after the date the | 14 |
| amended report is filed or (ii) assessed by the Department
on | 15 |
| qualifying purchases of production related tangible personal | 16 |
| property made
in the case of manufacturers
on or after January | 17 |
| 1, 1995, or in the case of graphic arts producers on or
after | 18 |
| July 1, 1996.
| 19 |
| If the purchaser is not the manufacturer or a graphic arts | 20 |
| producer, but
rents or
leases the use of the property to a | 21 |
| manufacturer or graphic arts producer,
the purchaser may earn,
| 22 |
| report, and use Manufacturer's Purchase Credit in the same | 23 |
| manner as a
manufacturer or graphic arts producer.
| 24 |
| A purchaser shall not be entitled to any Manufacturer's | 25 |
| Purchase
Credit for a purchase that is required to be reported | 26 |
| and is not timely
reported as provided in this Section. A | 27 |
| purchaser remains liable for (i) any
tax that was satisfied by | 28 |
| use of a Manufacturer's Purchase Credit, as of the
date of | 29 |
| purchase, if that use is not timely reported as required in | 30 |
| this
Section and (ii) for any applicable penalties and interest | 31 |
| for failing to pay
the tax when due. No Manufacturer's Purchase | 32 |
| Credit may be used after
September 30, 2003 to
satisfy any
tax | 33 |
| liability imposed under this Act, including any audit | 34 |
| liability.
|
|
|
|
09300SB2207ham002 |
- 33 - |
LRB093 15831 BDD 52995 a |
|
| 1 |
| (b) Manufacturer's Purchase Credit earned on and after | 2 |
| September 1, 2004. This subsection (b) applies to | 3 |
| Manufacturer's Purchase Credit earned on and after September 1, | 4 |
| 2004. Manufacturer's Purchase Credit earned on or after | 5 |
| September 1, 2004 may only be used to satisfy the Use Tax or | 6 |
| Service Use Tax liability incurred on production related | 7 |
| tangible personal property purchased on or after September 1, | 8 |
| 2004. A purchaser of production related tangible personal | 9 |
| property desiring to use the Manufacturer's Purchase Credit | 10 |
| shall certify to the seller that the purchaser is satisfying | 11 |
| all or part of the liability under the Use Tax Act or the | 12 |
| Service Use Tax Act that is due on the purchase of the | 13 |
| production related tangible personal property by use of | 14 |
| Manufacturer's Purchase Credit. The Manufacturer's Purchase | 15 |
| Credit certification must be dated and shall include the name | 16 |
| and address of the purchaser, the purchaser's registration | 17 |
| number, if registered, the credit being applied, and a | 18 |
| statement that the State Use Tax or Service Use Tax liability | 19 |
| is being satisfied with the manufacturer's or graphic arts | 20 |
| producer's accumulated purchase credit. Certification may be | 21 |
| incorporated into the manufacturer's or graphic arts | 22 |
| producer's purchase order. Manufacturer's Purchase Credit | 23 |
| certification provided by the manufacturer or graphic arts | 24 |
| producer may be used to satisfy the retailer's or serviceman's | 25 |
| liability under the Retailers' Occupation Tax Act or Service | 26 |
| Occupation Tax Act for the credit claimed, not to exceed 6.25% | 27 |
| of the receipts subject to tax from a qualifying purchase, but | 28 |
| only if the retailer or serviceman reports the Manufacturer's | 29 |
| Purchase Credit claimed as required by the Department. The | 30 |
| Manufacturer's Purchase Credit earned by purchase of exempt | 31 |
| manufacturing machinery and equipment or graphic arts | 32 |
| machinery and equipment is a non-transferable credit. A | 33 |
| manufacturer or graphic arts producer that enters into a | 34 |
| contract involving the installation of tangible personal |
|
|
|
09300SB2207ham002 |
- 34 - |
LRB093 15831 BDD 52995 a |
|
| 1 |
| property into real estate within a manufacturing or graphic | 2 |
| arts production facility may, on or after September 1, 2004, | 3 |
| authorize a construction contractor to utilize credit | 4 |
| accumulated by the manufacturer or graphic arts producer to | 5 |
| purchase the tangible personal property. A manufacturer or | 6 |
| graphic arts producer intending to use accumulated credit to | 7 |
| purchase such tangible personal property shall execute a | 8 |
| written contract authorizing the contractor to utilize a | 9 |
| specified dollar amount of credit. The contractor shall furnish | 10 |
| the supplier with the manufacturer's or graphic arts producer's | 11 |
| name, registration or resale number, and a statement that a | 12 |
| specific amount of the Use Tax or Service Use Tax liability, | 13 |
| not to exceed 6.25% of the selling price, is being satisfied | 14 |
| with the credit. The manufacturer or graphic arts producer | 15 |
| shall remain liable to timely report all information required | 16 |
| by the annual Report of Manufacturer's Purchase Credit Used for | 17 |
| all credit utilized by a construction contractor. | 18 |
| The Manufacturer's Purchase Credit may be used to satisfy | 19 |
| liability under the Use Tax Act or the Service Use Tax Act due | 20 |
| on the purchase, made on or after September 1, 2004, of | 21 |
| production related tangible personal property (including | 22 |
| purchases by a manufacturer, by a graphic arts producer, or by | 23 |
| a lessor who rents or leases the use of the property to a | 24 |
| manufacturer or graphic arts producer) that does not otherwise | 25 |
| qualify for the manufacturing machinery and equipment | 26 |
| exemption or the graphic arts machinery and equipment | 27 |
| exemption. "Production related tangible personal property" | 28 |
| means (i) all tangible personal property used or consumed by | 29 |
| the purchaser in a manufacturing facility in which a | 30 |
| manufacturing process described in Section 2-45 of the | 31 |
| Retailers' Occupation Tax Act takes place, including tangible | 32 |
| personal property purchased for incorporation into real estate | 33 |
| within a manufacturing facility and including, but not limited | 34 |
| to, tangible personal property used or consumed in activities |
|
|
|
09300SB2207ham002 |
- 35 - |
LRB093 15831 BDD 52995 a |
|
| 1 |
| such as preproduction material handling, receiving, quality | 2 |
| control, inventory control, storage, staging, and packaging | 3 |
| for shipping and transportation purposes; (ii) all tangible | 4 |
| personal property used or consumed by the purchaser in a | 5 |
| graphic arts facility in which graphic arts production as | 6 |
| described in Section 2-30 of the Retailers' Occupation Tax Act | 7 |
| takes place, including tangible personal property purchased | 8 |
| for incorporation into real estate within a graphic arts | 9 |
| facility and including, but not limited to, all tangible | 10 |
| personal property used or consumed in activities such as | 11 |
| graphic arts preliminary or pre-press production, | 12 |
| pre-production material handling, receiving, quality control, | 13 |
| inventory control, storage, staging, sorting, labeling, | 14 |
| mailing, tying, wrapping, and packaging; and (iii) all tangible | 15 |
| personal property used or consumed by the purchaser for | 16 |
| research and development. "Production related tangible | 17 |
| personal property" does not include (i) tangible personal | 18 |
| property used, within or without a manufacturing facility, in | 19 |
| sales, purchasing, accounting, fiscal management, marketing, | 20 |
| personnel recruitment or selection, or landscaping or (ii) | 21 |
| tangible personal property required to be titled or registered | 22 |
| with a department, agency, or unit of federal, state, or local | 23 |
| government. The Manufacturer's Purchase Credit may be used to | 24 |
| satisfy the tax arising either from the purchase of machinery | 25 |
| and equipment on or after September 1, 2004 for which the | 26 |
| exemption provided by paragraph (18) of Section 3-5 of this Act | 27 |
| was erroneously claimed, or the purchase of machinery and | 28 |
| equipment on or after September 1, 2004 for which the exemption | 29 |
| provided by paragraph (6) of Section 3-5 of this Act was | 30 |
| erroneously claimed, but not in satisfaction of penalty, if | 31 |
| any, and interest for failure to pay the tax when due. A | 32 |
| purchaser of production related tangible personal property | 33 |
| that is purchased on or after September 1, 2004 who is required | 34 |
| to pay Illinois Use Tax or Service Use Tax on the purchase |
|
|
|
09300SB2207ham002 |
- 36 - |
LRB093 15831 BDD 52995 a |
|
| 1 |
| directly to the Department may utilize the Manufacturer's | 2 |
| Purchase Credit in satisfaction of the tax arising from that | 3 |
| purchase, but not in satisfaction of penalty and interest. A | 4 |
| purchaser who uses the Manufacturer's Purchase Credit to | 5 |
| purchase property on and after September 1, 2004 which is later | 6 |
| determined not to be production related tangible personal | 7 |
| property may be liable for tax, penalty, and interest on the | 8 |
| purchase of that property as of the date of purchase but shall | 9 |
| be entitled to use the disallowed Manufacturer's Purchase | 10 |
| Credit, so long as it has not expired and is used on qualifying | 11 |
| purchases of production related tangible personal property not | 12 |
| previously subject to credit usage. The Manufacturer's | 13 |
| Purchase Credit earned by a manufacturer or graphic arts | 14 |
| producer expires the last day of the second calendar year | 15 |
| following the calendar year in which the credit arose.
A | 16 |
| purchaser earning Manufacturer's Purchase Credit shall sign | 17 |
| and file an annual Report of Manufacturer's Purchase Credit | 18 |
| Earned for each calendar year no later than the last day of the | 19 |
| sixth month following the calendar year in which a | 20 |
| Manufacturer's Purchase Credit is earned. A Report of | 21 |
| Manufacturer's Purchase Credit Earned shall be filed on forms | 22 |
| as prescribed or approved by the Department and shall state, | 23 |
| for each month of the calendar year: (i) the total purchase | 24 |
| price of all purchases of exempt manufacturing or graphic arts | 25 |
| machinery on which the credit was earned; (ii) the total State | 26 |
| Use Tax or Service Use Tax which would have been due on those | 27 |
| items; (iii) the percentage used to calculate the amount of | 28 |
| credit earned; (iv) the amount of credit earned; and (v) such | 29 |
| other information as the Department may reasonably require. A | 30 |
| purchaser earning Manufacturer's Purchase Credit shall | 31 |
| maintain records which identify, as to each purchase of | 32 |
| manufacturing or graphic arts machinery and equipment on which | 33 |
| the purchaser earned Manufacturer's Purchase Credit, the | 34 |
| vendor (including, if applicable, either the vendor's |
|
|
|
09300SB2207ham002 |
- 37 - |
LRB093 15831 BDD 52995 a |
|
| 1 |
| registration number or Federal Employer Identification | 2 |
| Number), the purchase price, and the amount of Manufacturer's | 3 |
| Purchase Credit earned on each purchase.
A purchaser using | 4 |
| Manufacturer's Purchase Credit shall sign and file an annual | 5 |
| Report of Manufacturer's Purchase Credit Used for each calendar | 6 |
| year no later than the last day of the sixth month following | 7 |
| the calendar year in which a Manufacturer's Purchase Credit is | 8 |
| used. A Report of Manufacturer's Purchase Credit Used shall be | 9 |
| filed on forms as prescribed or approved by the Department and | 10 |
| shall state, for each month of the calendar year: (i) the total | 11 |
| purchase price of production related tangible personal | 12 |
| property purchased from Illinois suppliers; (ii) the total | 13 |
| purchase price of production related tangible personal | 14 |
| property purchased from out-of-state suppliers; (iii) the | 15 |
| total amount of credit used during such month; and (iv) such | 16 |
| other information as the Department may reasonably require. A | 17 |
| purchaser using Manufacturer's Purchase Credit shall maintain | 18 |
| records that identify, as to each purchase of production | 19 |
| related tangible personal property on which the purchaser used | 20 |
| Manufacturer's Purchase Credit, the vendor (including, if | 21 |
| applicable, either the vendor's registration number or Federal | 22 |
| Employer Identification Number), the purchase price, and the | 23 |
| amount of Manufacturer's Purchase Credit used on each purchase. | 24 |
| A purchaser that fails to file an annual Report of | 25 |
| Manufacturer's Purchase Credit Earned or an annual Report of | 26 |
| Manufacturer's Purchase Credit Used by the last day of the | 27 |
| sixth month following the end of the calendar year shall | 28 |
| forfeit all Manufacturer's Purchase Credit for that calendar | 29 |
| year unless it establishes that its failure to file was due to | 30 |
| reasonable cause. Manufacturer's Purchase Credit reports may | 31 |
| be amended to report and claim credit on qualifying purchases | 32 |
| not previously reported at any time before the credit would | 33 |
| have expired, unless both the Department and the purchaser have | 34 |
| agreed to an extension of the statute of limitations for the |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| issuance of a notice of tax liability as provided in Section 4 | 2 |
| of the Retailers' Occupation Tax Act. If the time for | 3 |
| assessment or refund has been extended, then amended reports | 4 |
| for a calendar year may be filed at any time prior to the date | 5 |
| to which the statute of limitations for the calendar year or | 6 |
| portion thereof has been extended. Manufacturer's Purchase | 7 |
| Credit claimed on an amended report may be used to satisfy tax | 8 |
| liability under the Use Tax Act or the Service Use Tax Act (i) | 9 |
| on qualifying purchases of production related tangible | 10 |
| personal property made after the date the amended report is | 11 |
| filed or (ii) assessed by the Department on qualifying | 12 |
| production related tangible personal property purchased on or | 13 |
| after September 1, 2004. If the purchaser is not the | 14 |
| manufacturer or a graphic arts producer, but rents or leases | 15 |
| the use of the property to a manufacturer or graphic arts | 16 |
| producer, the purchaser may earn, report, and use | 17 |
| Manufacturer's Purchase Credit in the same manner as a | 18 |
| manufacturer or graphic arts producer.
A purchaser shall not be | 19 |
| entitled to any Manufacturer's Purchase Credit for a purchase | 20 |
| that is required to be reported and is not timely reported as | 21 |
| provided in this Section. A purchaser remains liable for (i) | 22 |
| any tax that was satisfied by use of a Manufacturer's Purchase | 23 |
| Credit, as of the date of purchase, if that use is not timely | 24 |
| reported as required in this Section and (ii) for any | 25 |
| applicable penalties and interest for failing to pay the tax | 26 |
| when due. | 27 |
| (Source: P.A. 93-24, eff. 6-20-03.)
|
|
28 |
| Section 20-15. The Service Use Tax Act is amended by | 29 |
| changing Sections 3-5 and 3-70 as follows:
| 30 |
| (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
| 31 |
| Sec. 3-5. Exemptions. Use of the following tangible | 32 |
| personal property
is exempt from the tax imposed by this Act:
|
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| (1) Personal property purchased from a corporation, | 2 |
| society,
association, foundation, institution, or | 3 |
| organization, other than a limited
liability company, that is | 4 |
| organized and operated as a not-for-profit service
enterprise | 5 |
| for the benefit of persons 65 years of age or older if the | 6 |
| personal
property was not purchased by the enterprise for the | 7 |
| purpose of resale by the
enterprise.
| 8 |
| (2) Personal property purchased by a non-profit Illinois | 9 |
| county fair
association for use in conducting, operating, or | 10 |
| promoting the county fair.
| 11 |
| (3) Personal property purchased by a not-for-profit arts
or | 12 |
| cultural
organization that establishes, by proof required by | 13 |
| the Department by rule,
that it has received an exemption under | 14 |
| Section 501(c)(3) of the Internal
Revenue Code and that is | 15 |
| organized and operated primarily for the
presentation
or | 16 |
| support of arts or cultural programming, activities, or | 17 |
| services. These
organizations include, but are not limited to, | 18 |
| music and dramatic arts
organizations such as symphony | 19 |
| orchestras and theatrical groups, arts and
cultural service | 20 |
| organizations, local arts councils, visual arts organizations,
| 21 |
| and media arts organizations.
On and after the effective date | 22 |
| of this amendatory Act of the 92nd General
Assembly, however, | 23 |
| an entity otherwise eligible for this exemption shall not
make | 24 |
| tax-free purchases unless it has an active identification | 25 |
| number issued by
the Department.
| 26 |
| (4) Legal tender, currency, medallions, or gold or silver | 27 |
| coinage issued
by the State of Illinois, the government of the | 28 |
| United States of America,
or the government of any foreign | 29 |
| country, and bullion.
| 30 |
| (5) Until July 1, 2003 and beginning again on September 1, | 31 |
| 2004 , graphic arts machinery and equipment, including
repair | 32 |
| and
replacement parts, both new and used, and including that | 33 |
| manufactured on
special order or purchased for lease, certified | 34 |
| by the purchaser to be used
primarily for graphic arts |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| production.
Equipment includes chemicals or
chemicals acting | 2 |
| as catalysts but only if
the chemicals or chemicals acting as | 3 |
| catalysts effect a direct and immediate
change upon a graphic | 4 |
| arts product.
| 5 |
| (6) Personal property purchased from a teacher-sponsored | 6 |
| student
organization affiliated with an elementary or | 7 |
| secondary school located
in Illinois.
| 8 |
| (7) Farm machinery and equipment, both new and used, | 9 |
| including that
manufactured on special order, certified by the | 10 |
| purchaser to be used
primarily for production agriculture or | 11 |
| State or federal agricultural
programs, including individual | 12 |
| replacement parts for the machinery and
equipment, including | 13 |
| machinery and equipment purchased for lease,
and including | 14 |
| implements of husbandry defined in Section 1-130 of
the | 15 |
| Illinois Vehicle Code, farm machinery and agricultural | 16 |
| chemical and
fertilizer spreaders, and nurse wagons required to | 17 |
| be registered
under Section 3-809 of the Illinois Vehicle Code,
| 18 |
| but
excluding other motor vehicles required to be registered | 19 |
| under the Illinois
Vehicle Code.
Horticultural polyhouses or | 20 |
| hoop houses used for propagating, growing, or
overwintering | 21 |
| plants shall be considered farm machinery and equipment under
| 22 |
| this item (7).
Agricultural chemical tender tanks and dry boxes | 23 |
| shall include units sold
separately from a motor vehicle | 24 |
| required to be licensed and units sold mounted
on a motor | 25 |
| vehicle required to be licensed if the selling price of the | 26 |
| tender
is separately stated.
| 27 |
| Farm machinery and equipment shall include precision | 28 |
| farming equipment
that is
installed or purchased to be | 29 |
| installed on farm machinery and equipment
including, but not | 30 |
| limited to, tractors, harvesters, sprayers, planters,
seeders, | 31 |
| or spreaders.
Precision farming equipment includes, but is not | 32 |
| limited to,
soil testing sensors, computers, monitors, | 33 |
| software, global positioning
and mapping systems, and other | 34 |
| such equipment.
|
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| Farm machinery and equipment also includes computers, | 2 |
| sensors, software, and
related equipment used primarily in the
| 3 |
| computer-assisted operation of production agriculture | 4 |
| facilities, equipment,
and activities such as, but
not limited | 5 |
| to,
the collection, monitoring, and correlation of
animal and | 6 |
| crop data for the purpose of
formulating animal diets and | 7 |
| agricultural chemicals. This item (7) is exempt
from the | 8 |
| provisions of
Section 3-75.
| 9 |
| (8) Fuel and petroleum products sold to or used by an air | 10 |
| common
carrier, certified by the carrier to be used for | 11 |
| consumption, shipment, or
storage in the conduct of its | 12 |
| business as an air common carrier, for a
flight destined for or | 13 |
| returning from a location or locations
outside the United | 14 |
| States without regard to previous or subsequent domestic
| 15 |
| stopovers.
| 16 |
| (9) Proceeds of mandatory service charges separately | 17 |
| stated on
customers' bills for the purchase and consumption of | 18 |
| food and beverages
acquired as an incident to the purchase of a | 19 |
| service from a serviceman, to
the extent that the proceeds of | 20 |
| the service charge are in fact
turned over as tips or as a | 21 |
| substitute for tips to the employees who
participate directly | 22 |
| in preparing, serving, hosting or cleaning up the
food or | 23 |
| beverage function with respect to which the service charge is | 24 |
| imposed.
| 25 |
| (10) Until July 1, 2003, oil field exploration, drilling, | 26 |
| and production
equipment, including
(i) rigs and parts of rigs, | 27 |
| rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 28 |
| tubular goods, including casing and
drill strings, (iii) pumps | 29 |
| and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 30 |
| individual replacement part for oil field exploration,
| 31 |
| drilling, and production equipment, and (vi) machinery and | 32 |
| equipment purchased
for lease; but
excluding motor vehicles | 33 |
| required to be registered under the Illinois
Vehicle Code.
| 34 |
| (11) Proceeds from the sale of photoprocessing machinery |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| and
equipment, including repair and replacement parts, both new | 2 |
| and
used, including that manufactured on special order, | 3 |
| certified by the
purchaser to be used primarily for | 4 |
| photoprocessing, and including
photoprocessing machinery and | 5 |
| equipment purchased for lease.
| 6 |
| (12) Until July 1, 2003, coal exploration, mining, | 7 |
| offhighway hauling,
processing,
maintenance, and reclamation | 8 |
| equipment, including
replacement parts and equipment, and | 9 |
| including
equipment purchased for lease, but excluding motor | 10 |
| vehicles required to be
registered under the Illinois Vehicle | 11 |
| Code.
| 12 |
| (13) Semen used for artificial insemination of livestock | 13 |
| for direct
agricultural production.
| 14 |
| (14) Horses, or interests in horses, registered with and | 15 |
| meeting the
requirements of any of the
Arabian Horse Club | 16 |
| Registry of America, Appaloosa Horse Club, American Quarter
| 17 |
| Horse Association, United States
Trotting Association, or | 18 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 19 |
| racing for prizes.
| 20 |
| (15) Computers and communications equipment utilized for | 21 |
| any
hospital
purpose
and equipment used in the diagnosis,
| 22 |
| analysis, or treatment of hospital patients purchased by a | 23 |
| lessor who leases
the
equipment, under a lease of one year or | 24 |
| longer executed or in effect at the
time
the lessor would | 25 |
| otherwise be subject to the tax imposed by this Act,
to a
| 26 |
| hospital
that has been issued an active tax exemption | 27 |
| identification number by the
Department under Section 1g of the | 28 |
| Retailers' Occupation Tax Act.
If the
equipment is leased in a | 29 |
| manner that does not qualify for
this exemption
or is used in | 30 |
| any other non-exempt manner,
the lessor shall be liable for the
| 31 |
| tax imposed under this Act or the Use Tax Act, as the case may
| 32 |
| be, based on the fair market value of the property at the time | 33 |
| the
non-qualifying use occurs. No lessor shall collect or | 34 |
| attempt to collect an
amount (however
designated) that purports |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| to reimburse that lessor for the tax imposed by this
Act or the | 2 |
| Use Tax Act, as the case may be, if the tax has not been
paid by | 3 |
| the lessor. If a lessor improperly collects any such amount | 4 |
| from the
lessee, the lessee shall have a legal right to claim a | 5 |
| refund of that amount
from the lessor. If, however, that amount | 6 |
| is not refunded to the lessee for
any reason, the lessor is | 7 |
| liable to pay that amount to the Department.
| 8 |
| (16) Personal property purchased by a lessor who leases the
| 9 |
| property, under
a
lease of one year or longer executed or in | 10 |
| effect at the time
the lessor would otherwise be subject to the | 11 |
| tax imposed by this Act,
to a governmental body
that has been | 12 |
| issued an active tax exemption identification number by the
| 13 |
| Department under Section 1g of the Retailers' Occupation Tax | 14 |
| Act.
If the
property is leased in a manner that does not | 15 |
| qualify for
this exemption
or is used in any other non-exempt | 16 |
| manner,
the lessor shall be liable for the
tax imposed under | 17 |
| this Act or the Use Tax Act, as the case may
be, based on the | 18 |
| fair market value of the property at the time the
| 19 |
| non-qualifying use occurs. No lessor shall collect or attempt | 20 |
| to collect an
amount (however
designated) that purports to | 21 |
| reimburse that lessor for the tax imposed by this
Act or the | 22 |
| Use Tax Act, as the case may be, if the tax has not been
paid by | 23 |
| the lessor. If a lessor improperly collects any such amount | 24 |
| from the
lessee, the lessee shall have a legal right to claim a | 25 |
| refund of that amount
from the lessor. If, however, that amount | 26 |
| is not refunded to the lessee for
any reason, the lessor is | 27 |
| liable to pay that amount to the Department.
| 28 |
| (17) Beginning with taxable years ending on or after | 29 |
| December
31,
1995
and
ending with taxable years ending on or | 30 |
| before December 31, 2004,
personal property that is
donated for | 31 |
| disaster relief to be used in a State or federally declared
| 32 |
| disaster area in Illinois or bordering Illinois by a | 33 |
| manufacturer or retailer
that is registered in this State to a | 34 |
| corporation, society, association,
foundation, or institution |
|
|
|
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|
| 1 |
| that has been issued a sales tax exemption
identification | 2 |
| number by the Department that assists victims of the disaster
| 3 |
| who reside within the declared disaster area.
| 4 |
| (18) Beginning with taxable years ending on or after | 5 |
| December
31, 1995 and
ending with taxable years ending on or | 6 |
| before December 31, 2004, personal
property that is used in the | 7 |
| performance of infrastructure repairs in this
State, including | 8 |
| but not limited to municipal roads and streets, access roads,
| 9 |
| bridges, sidewalks, waste disposal systems, water and sewer | 10 |
| line extensions,
water distribution and purification | 11 |
| facilities, storm water drainage and
retention facilities, and | 12 |
| sewage treatment facilities, resulting from a State
or | 13 |
| federally declared disaster in Illinois or bordering Illinois | 14 |
| when such
repairs are initiated on facilities located in the | 15 |
| declared disaster area
within 6 months after the disaster.
| 16 |
| (19) Beginning July 1, 1999, game or game birds purchased | 17 |
| at a "game
breeding
and hunting preserve area" or an "exotic | 18 |
| game hunting area" as those terms are
used in
the Wildlife Code | 19 |
| or at a hunting enclosure approved through rules adopted by
the
| 20 |
| Department of Natural Resources. This paragraph is exempt from | 21 |
| the provisions
of
Section 3-75.
| 22 |
| (20) A motor vehicle, as that term is defined in Section | 23 |
| 1-146
of the
Illinois Vehicle Code, that is donated to a | 24 |
| corporation, limited liability
company, society, association, | 25 |
| foundation, or institution that is determined by
the Department | 26 |
| to be organized and operated exclusively for educational
| 27 |
| purposes. For purposes of this exemption, "a corporation, | 28 |
| limited liability
company, society, association, foundation, | 29 |
| or institution organized and
operated
exclusively for | 30 |
| educational purposes" means all tax-supported public schools,
| 31 |
| private schools that offer systematic instruction in useful | 32 |
| branches of
learning by methods common to public schools and | 33 |
| that compare favorably in
their scope and intensity with the | 34 |
| course of study presented in tax-supported
schools, and |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| vocational or technical schools or institutes organized and
| 2 |
| operated exclusively to provide a course of study of not less | 3 |
| than 6 weeks
duration and designed to prepare individuals to | 4 |
| follow a trade or to pursue a
manual, technical, mechanical, | 5 |
| industrial, business, or commercial
occupation.
| 6 |
| (21) Beginning January 1, 2000, personal property, | 7 |
| including
food,
purchased through fundraising
events for the | 8 |
| benefit of
a public or private elementary or
secondary school, | 9 |
| a group of those schools, or one or more school
districts if | 10 |
| the events are
sponsored by an entity recognized by the school | 11 |
| district that consists
primarily of volunteers and includes
| 12 |
| parents and teachers of the school children. This paragraph | 13 |
| does not apply
to fundraising
events (i) for the benefit of | 14 |
| private home instruction or (ii)
for which the fundraising | 15 |
| entity purchases the personal property sold at
the events from | 16 |
| another individual or entity that sold the property for the
| 17 |
| purpose of resale by the fundraising entity and that
profits | 18 |
| from the sale to the
fundraising entity. This paragraph is | 19 |
| exempt
from the provisions
of Section 3-75.
| 20 |
| (22) Beginning January 1, 2000
and through December 31, | 21 |
| 2001, new or used automatic vending
machines that prepare and | 22 |
| serve hot food and beverages, including coffee, soup,
and
other | 23 |
| items, and replacement parts for these machines.
Beginning | 24 |
| January 1,
2002 and through June 30, 2003, machines and parts | 25 |
| for machines used in
commercial, coin-operated
amusement
and | 26 |
| vending business if a use or occupation tax is paid on the | 27 |
| gross receipts
derived from
the use of the commercial, | 28 |
| coin-operated amusement and vending machines.
This
paragraph
| 29 |
| is exempt from the provisions of Section 3-75.
| 30 |
| (23) Food for human consumption that is to be consumed off | 31 |
| the
premises
where it is sold (other than alcoholic beverages, | 32 |
| soft drinks, and food that
has been prepared for immediate | 33 |
| consumption) and prescription and
nonprescription medicines, | 34 |
| drugs, medical appliances, and insulin, urine
testing |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| materials, syringes, and needles used by diabetics, for human | 2 |
| use, when
purchased for use by a person receiving medical | 3 |
| assistance under Article 5 of
the Illinois Public Aid Code who | 4 |
| resides in a licensed long-term care facility,
as defined in | 5 |
| the Nursing Home Care Act.
| 6 |
| (24) Beginning on the effective date of this amendatory Act | 7 |
| of the 92nd
General Assembly, computers and communications | 8 |
| equipment
utilized for any hospital purpose and equipment used | 9 |
| in the diagnosis,
analysis, or treatment of hospital patients | 10 |
| purchased by a lessor who leases
the equipment, under a lease | 11 |
| of one year or longer executed or in effect at the
time the | 12 |
| lessor would otherwise be subject to the tax imposed by this | 13 |
| Act, to a
hospital that has been issued an active tax exemption | 14 |
| identification number by
the Department under Section 1g of the | 15 |
| Retailers' Occupation Tax Act. If the
equipment is leased in a | 16 |
| manner that does not qualify for this exemption or is
used in | 17 |
| any other nonexempt manner, the lessor shall be liable for the
| 18 |
| tax imposed under this Act or the Use Tax Act, as the case may | 19 |
| be, based on the
fair market value of the property at the time | 20 |
| the nonqualifying use occurs.
No lessor shall collect or | 21 |
| attempt to collect an amount (however
designated) that purports | 22 |
| to reimburse that lessor for the tax imposed by this
Act or the | 23 |
| Use Tax Act, as the case may be, if the tax has not been
paid by | 24 |
| the lessor. If a lessor improperly collects any such amount | 25 |
| from the
lessee, the lessee shall have a legal right to claim a | 26 |
| refund of that amount
from the lessor. If, however, that amount | 27 |
| is not refunded to the lessee for
any reason, the lessor is | 28 |
| liable to pay that amount to the Department.
This paragraph is | 29 |
| exempt from the provisions of Section 3-75.
| 30 |
| (25) Beginning
on the effective date of this amendatory Act | 31 |
| of the 92nd General Assembly,
personal property purchased by a | 32 |
| lessor
who leases the property, under a lease of one year or | 33 |
| longer executed or in
effect at the time the lessor would | 34 |
| otherwise be subject to the tax imposed by
this Act, to a |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| governmental body that has been issued an active tax exemption
| 2 |
| identification number by the Department under Section 1g of the | 3 |
| Retailers'
Occupation Tax Act. If the property is leased in a | 4 |
| manner that does not
qualify for this exemption or is used in | 5 |
| any other nonexempt manner, the
lessor shall be liable for the | 6 |
| tax imposed under this Act or the Use Tax Act,
as the case may | 7 |
| be, based on the fair market value of the property at the time
| 8 |
| the nonqualifying use occurs. No lessor shall collect or | 9 |
| attempt to collect
an amount (however designated) that purports | 10 |
| to reimburse that lessor for the
tax imposed by this Act or the | 11 |
| Use Tax Act, as the case may be, if the tax has
not been paid by | 12 |
| the lessor. If a lessor improperly collects any such amount
| 13 |
| from the lessee, the lessee shall have a legal right to claim a | 14 |
| refund of that
amount from the lessor. If, however, that amount | 15 |
| is not refunded to the lessee
for any reason, the lessor is | 16 |
| liable to pay that amount to the Department.
This paragraph is | 17 |
| exempt from the provisions of Section 3-75.
| 18 |
| (Source: P.A. 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227, | 19 |
| eff. 8-2-01;
92-337, eff. 8-10-01; 92-484, eff. 8-23-01; | 20 |
| 92-651, eff. 7-11-02; 93-24, eff.
6-20-03 .)
| 21 |
| (35 ILCS 110/3-70)
| 22 |
| Sec. 3-70. Manufacturer's Purchase Credit. For purchases | 23 |
| of machinery and
equipment made on and after January 1, 1995 | 24 |
| and through June 30, 2003, and on and after September 1, 2004,
| 25 |
| a
purchaser of manufacturing
machinery and equipment that | 26 |
| qualifies for the exemption provided by Section
2 of this Act | 27 |
| earns a credit in an amount equal to a fixed
percentage of
the | 28 |
| tax which would have been incurred under this Act on those | 29 |
| purchases.
For purchases of graphic arts machinery and | 30 |
| equipment made on or after July
1, 1996 and through June 30, | 31 |
| 2003, and on and after September 1, 2004, a purchase of graphic | 32 |
| arts machinery and
equipment that qualifies for
the exemption | 33 |
| provided by paragraph (5) of Section 3-5 of this Act earns a
|
|
|
|
09300SB2207ham002 |
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|
| 1 |
| credit in an amount equal to a fixed percentage of the tax that | 2 |
| would have been
incurred under this Act on those purchases.
The | 3 |
| credit earned for the purchase of manufacturing machinery and | 4 |
| equipment
and graphic arts machinery and equipment shall be | 5 |
| referred to
as the Manufacturer's Purchase Credit.
A graphic | 6 |
| arts producer is a person engaged in graphic arts production as
| 7 |
| defined in Section 3-30 of the Service Occupation Tax Act. | 8 |
| Beginning July 1,
1996, all references in this Section to | 9 |
| manufacturers or manufacturing shall
also refer to graphic arts | 10 |
| producers or graphic arts production.
| 11 |
| The amount of credit shall be a percentage of the tax that | 12 |
| would have been
incurred on the purchase of the manufacturing | 13 |
| machinery and equipment or
graphic arts machinery and equipment
| 14 |
| if the
exemptions provided by Section 2 or paragraph (5) of
| 15 |
| Section 3-5 of
this Act had not
been applicable.
| 16 |
| All purchases prior to October 1, 2003 of manufacturing | 17 |
| machinery and
equipment and graphic arts
machinery and | 18 |
| equipment that qualify for the exemptions provided by paragraph
| 19 |
| (5) of Section 2
or paragraph (5) of Section 3-5 of this Act | 20 |
| qualify for the credit without
regard to whether the serviceman | 21 |
| elected, or could have elected, under
paragraph (7) of Section | 22 |
| 2 of this Act to exclude the transaction from this
Act. If the | 23 |
| serviceman's billing to the service customer separately states | 24 |
| a
selling price for the exempt manufacturing machinery or | 25 |
| equipment or the exempt
graphic arts machinery and equipment, | 26 |
| the credit shall be calculated, as
otherwise provided herein, | 27 |
| based on that selling price. If the serviceman's
billing does | 28 |
| not separately state a selling price for the exempt | 29 |
| manufacturing
machinery and equipment or the exempt graphic | 30 |
| arts machinery and equipment, the
credit shall be calculated, | 31 |
| as otherwise provided herein, based on 50% of the
entire | 32 |
| billing. If the serviceman contracts to design, develop, and | 33 |
| produce
special order manufacturing machinery and equipment or | 34 |
| special order graphic
arts machinery and equipment, and the |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| billing does not separately state a
selling price for such | 2 |
| special order machinery and
equipment, the credit shall be | 3 |
| calculated, as otherwise provided herein, based
on 50% of the | 4 |
| entire billing. The provisions of this paragraph are effective
| 5 |
| for purchases made on or after January 1, 1995.
| 6 |
| The percentage shall be as follows:
| 7 |
| (1) 15% for purchases made on or before June 30, 1995.
| 8 |
| (2) 25% for purchases made after June 30, 1995, and on | 9 |
| or before June 30,
1996.
| 10 |
| (3) 40% for purchases made after June 30, 1996, and on | 11 |
| or before June 30,
1997.
| 12 |
| (4) 50% for purchases made on or after July 1, 1997.
| 13 |
| (a) Manufacturer's Purchase Credit earned prior to July 1, | 14 |
| 2003. This subsection (a) applies to Manufacturer's Purchase | 15 |
| Credit earned prior to July 1, 2003. A purchaser of production | 16 |
| related tangible personal property desiring to use
the | 17 |
| Manufacturer's Purchase Credit shall certify to the seller | 18 |
| prior to
October 1, 2003 that the
purchaser is satisfying all | 19 |
| or part of
the
liability under the Use Tax Act or the Service | 20 |
| Use Tax Act that is due on the
purchase of the production | 21 |
| related tangible personal property by use of a
Manufacturer's | 22 |
| Purchase Credit. The Manufacturer's Purchase Credit
| 23 |
| certification
must be dated and shall include the name and | 24 |
| address of the purchaser, the
purchaser's registration number, | 25 |
| if registered, the
credit being
applied, and a statement that | 26 |
| the State Use Tax or Service Use Tax liability
is being | 27 |
| satisfied with the manufacturer's or graphic arts producer's
| 28 |
| accumulated purchase credit.
Certification may be incorporated | 29 |
| into the manufacturer's or graphic arts
producer's
purchase | 30 |
| order.
Manufacturer's Purchase Credit certification provided | 31 |
| by the manufacturer
or graphic
arts producer
prior to October | 32 |
| 1, 2003 may be used to satisfy the retailer's or
serviceman's | 33 |
| liability under the
Retailers' Occupation Tax Act or
Service
| 34 |
| Occupation Tax Act for the credit claimed, not to exceed
6.25% |
|
|
|
09300SB2207ham002 |
- 50 - |
LRB093 15831 BDD 52995 a |
|
| 1 |
| of the receipts subject to tax from a qualifying purchase, but | 2 |
| only if
the retailer or serviceman reports the Manufacturer's | 3 |
| Purchase Credit claimed
as required by the Department. A | 4 |
| Manufacturer's Purchase Credit reported on
any original or | 5 |
| amended return
filed under
this Act after October 20, 2003 | 6 |
| shall be disallowed. The Manufacturer's
Purchase Credit earned | 7 |
| by
purchase of exempt manufacturing machinery and equipment
or | 8 |
| graphic arts machinery and equipment is a
non-transferable | 9 |
| credit. A manufacturer or graphic arts producer
that enters | 10 |
| into a
contract involving the installation of tangible personal | 11 |
| property into
real estate within a manufacturing or graphic | 12 |
| arts production facility, prior
to October 1, 2003, may | 13 |
| authorize a construction contractor
to utilize credit | 14 |
| accumulated by the manufacturer or graphic arts producer
to
| 15 |
| purchase the tangible personal property. A manufacturer or | 16 |
| graphic arts
producer
intending to use accumulated credit to | 17 |
| purchase such tangible personal
property shall execute a | 18 |
| written contract authorizing the contractor to utilize
a | 19 |
| specified dollar amount of credit. The contractor shall | 20 |
| furnish, prior to
October 1, 2003, the supplier
with the | 21 |
| manufacturer's or graphic arts producer's name, registration | 22 |
| or
resale number, and a statement
that a specific amount of the | 23 |
| Use Tax or Service Use Tax liability, not to
exceed 6.25% of | 24 |
| the selling price, is being satisfied with the credit. The
| 25 |
| manufacturer or graphic arts producer shall remain liable to | 26 |
| timely report
all information required by
the annual Report of | 27 |
| Manufacturer's Purchase Credit Used for credit utilized by
a
| 28 |
| construction contractor.
| 29 |
| No Manufacturer's Purchase Credit earned prior to July 1, | 30 |
| 2003 may be used after October 1, 2003. The Manufacturer's | 31 |
| Purchase Credit may be used to satisfy liability under the
Use | 32 |
| Tax Act or the Service Use Tax Act due on the purchase of | 33 |
| production
related tangible personal property (including | 34 |
| purchases by a manufacturer, by
a graphic arts producer,
or a |
|
|
|
09300SB2207ham002 |
- 51 - |
LRB093 15831 BDD 52995 a |
|
| 1 |
| lessor who rents or leases the use of
the property to a | 2 |
| manufacturer or graphic arts producer) that does not
otherwise | 3 |
| qualify for the manufacturing machinery and equipment
| 4 |
| exemption or the graphic arts machinery and equipment | 5 |
| exemption.
"Production related tangible personal
property" | 6 |
| means (i) all tangible personal property used or consumed by | 7 |
| the
purchaser in a manufacturing facility in which a | 8 |
| manufacturing process
described in Section 2-45 of the | 9 |
| Retailers' Occupation Tax Act
takes place, including tangible | 10 |
| personal property purchased for incorporation
into
real estate | 11 |
| within a manufacturing facility and including, but not limited
| 12 |
| to,
tangible personal property used or consumed in activities | 13 |
| such as
pre-production
material handling, receiving, quality | 14 |
| control, inventory control, storage,
staging, and packaging | 15 |
| for shipping and transportation purposes; (ii)
all tangible | 16 |
| personal property used or consumed by the purchaser in a | 17 |
| graphic
arts facility in which graphic arts production as | 18 |
| described in Section 2-30 of
the Retailers' Occupation Tax Act | 19 |
| takes place, including tangible personal
property purchased | 20 |
| for incorporation into real estate within a graphic arts
| 21 |
| facility and including, but not limited to, all tangible | 22 |
| personal property used
or consumed in activities such as | 23 |
| graphic arts preliminary or pre-press
production, | 24 |
| pre-production material handling, receiving, quality control,
| 25 |
| inventory control, storage, staging, sorting, labeling, | 26 |
| mailing, tying,
wrapping, and packaging; and (iii) all tangible | 27 |
| personal property used or
consumed by the purchaser
for | 28 |
| research and
development. "Production related tangible | 29 |
| personal property" does not include
(i) tangible personal | 30 |
| property used, within or without a manufacturing or
graphic | 31 |
| arts
facility, in sales, purchasing,
accounting, fiscal | 32 |
| management, marketing,
personnel recruitment or selection, or | 33 |
| landscaping or (ii) tangible personal
property required to be | 34 |
| titled or registered with a department, agency, or unit
of |
|
|
|
09300SB2207ham002 |
- 52 - |
LRB093 15831 BDD 52995 a |
|
| 1 |
| federal, state, or local
government. The Manufacturer's | 2 |
| Purchase Credit may be used, prior to October
1, 2003, to | 3 |
| satisfy the tax
arising either from the purchase of
machinery | 4 |
| and equipment on or after January 1, 1995
for which the | 5 |
| manufacturing machinery and equipment exemption
provided by | 6 |
| Section 2 of this Act was
erroneously claimed, or the purchase | 7 |
| of machinery and equipment on or after
July 1, 1996 for which | 8 |
| the exemption provided by paragraph (5) of Section 3-5
of this | 9 |
| Act was erroneously claimed, but not in
satisfaction of | 10 |
| penalty, if any, and interest for failure to pay the tax
when | 11 |
| due. A
purchaser of production related tangible personal | 12 |
| property who is required to
pay Illinois Use Tax or Service Use | 13 |
| Tax on the purchase directly to the
Department may, prior to | 14 |
| October 1, 2003, utilize the Manufacturer's
Purchase Credit in | 15 |
| satisfaction of
the tax arising from that purchase, but not in
| 16 |
| satisfaction of penalty and
interest.
A purchaser who uses the | 17 |
| Manufacturer's Purchase Credit to purchase
property
which is | 18 |
| later determined not to be production related tangible personal
| 19 |
| property may be liable for tax, penalty, and interest on the | 20 |
| purchase of that
property as of the date of purchase but shall | 21 |
| be entitled to use the disallowed
Manufacturer's Purchase
| 22 |
| Credit, so long as it has not expired and is used prior to | 23 |
| October 1, 2003,
on qualifying purchases of production
related | 24 |
| tangible personal property not previously subject to credit | 25 |
| usage.
The Manufacturer's Purchase Credit earned by a | 26 |
| manufacturer or graphic arts
producer
expires the last day of | 27 |
| the second calendar year following the
calendar year in
which | 28 |
| the credit arose. No Manufacturer's Purchase Credit may be used | 29 |
| after
September 30, 2003
regardless of
when that credit was | 30 |
| earned.
| 31 |
| A purchaser earning Manufacturer's Purchase Credit shall | 32 |
| sign and file an
annual Report of Manufacturer's Purchase | 33 |
| Credit Earned for each calendar year
no later
than the last day | 34 |
| of the sixth month following the calendar year in which a
|
|
|
|
09300SB2207ham002 |
- 53 - |
LRB093 15831 BDD 52995 a |
|
| 1 |
| Manufacturer's Purchase Credit is earned. A Report of | 2 |
| Manufacturer's Purchase
Credit
Earned shall be filed on forms | 3 |
| as prescribed or approved by the Department and
shall state, | 4 |
| for each month of the calendar year: (i) the total purchase | 5 |
| price
of all purchases of exempt manufacturing or graphic arts | 6 |
| machinery on which
the credit was
earned; (ii) the total State | 7 |
| Use Tax or Service Use Tax which would have been
due on those | 8 |
| items; (iii) the percentage used to calculate the amount of | 9 |
| credit
earned; (iv) the amount of credit earned; and (v) such | 10 |
| other information as the
Department may reasonably require. A | 11 |
| purchaser earning Manufacturer's Purchase
Credit shall | 12 |
| maintain records which identify, as to each purchase of
| 13 |
| manufacturing or graphic arts machinery and equipment on which | 14 |
| the
purchaser earned
Manufacturer's Purchase Credit, the | 15 |
| vendor (including, if applicable, either
the vendor's | 16 |
| registration number or Federal Employer Identification | 17 |
| Number),
the purchase price, and the amount of Manufacturer's | 18 |
| Purchase Credit earned on
each purchase.
| 19 |
| A purchaser using Manufacturer's Purchase Credit shall | 20 |
| sign and file an
annual Report of Manufacturer's Purchase | 21 |
| Credit Used for each calendar year no
later than the last day | 22 |
| of the sixth month following the calendar year in which
a | 23 |
| Manufacturer's Purchase Credit is used. A Report of | 24 |
| Manufacturer's Purchase
Credit Used shall be filed on forms as | 25 |
| prescribed or approved by the Department
and
shall state, for | 26 |
| each month of the calendar year: (i) the total purchase price
| 27 |
| of production related tangible personal property purchased | 28 |
| from Illinois
suppliers; (ii) the total purchase price
of | 29 |
| production related tangible personal property purchased from | 30 |
| out-of-state
suppliers; (iii) the total amount of credit used | 31 |
| during such month; and (iv)
such
other information as the | 32 |
| Department may reasonably require. A purchaser using
| 33 |
| Manufacturer's Purchase Credit shall maintain records that | 34 |
| identify, as to
each purchase of production related tangible |
|
|
|
09300SB2207ham002 |
- 54 - |
LRB093 15831 BDD 52995 a |
|
| 1 |
| personal property on which the
purchaser used Manufacturer's | 2 |
| Purchase Credit, the vendor (including, if
applicable, either | 3 |
| the vendor's registration number or Federal Employer
| 4 |
| Identification Number), the purchase price, and the amount of | 5 |
| Manufacturer's
Purchase Credit used on each purchase.
| 6 |
| No annual report shall be filed before May 1, 1996 or after | 7 |
| June 30,
2004.
A purchaser that fails to file an annual Report | 8 |
| of Manufacturer's Purchase
Credit
Earned or an annual Report of | 9 |
| Manufacturer's Purchase Credit Used by the last
day
of the | 10 |
| sixth month following the end of the calendar year shall | 11 |
| forfeit all
Manufacturer's Purchase Credit for that calendar | 12 |
| year unless it establishes
that its failure to file was due to | 13 |
| reasonable cause.
Manufacturer's Purchase Credit
reports may | 14 |
| be amended to report and claim credit on qualifying purchases | 15 |
| not
previously reported at any time before the credit would | 16 |
| have expired, unless
both the Department and the purchaser have | 17 |
| agreed to an extension of
the statute of limitations for the | 18 |
| issuance of a notice of tax liability as
provided in Section 4 | 19 |
| of the Retailers' Occupation Tax Act. If the time for
| 20 |
| assessment or refund has been extended, then amended reports | 21 |
| for a calendar
year may be filed at any time prior to the date | 22 |
| to which the statute of
limitations for the calendar year or | 23 |
| portion thereof has been extended.
No Manufacturer's Purchase | 24 |
| Credit report filed with the Department
for periods
prior to | 25 |
| January 1, 1995 shall be approved.
Manufacturer's Purchase | 26 |
| Credit claimed on an amended report may be used,
prior to | 27 |
| October 1, 2003, to
satisfy tax liability under the Use Tax Act | 28 |
| or the Service Use Tax Act (i) on
qualifying purchases of | 29 |
| production related tangible personal property made
after the | 30 |
| date the amended report is filed or (ii) assessed by the | 31 |
| Department
on qualifying purchases of production related | 32 |
| tangible personal property made
in the case of manufacturers on | 33 |
| or after January 1, 1995, or in the case
of graphic arts | 34 |
| producers on or after July 1, 1996.
|
|
|
|
09300SB2207ham002 |
- 55 - |
LRB093 15831 BDD 52995 a |
|
| 1 |
| If the purchaser is not the manufacturer or a graphic arts | 2 |
| producer, but
rents or
leases the use of the property to a | 3 |
| manufacturer or a graphic arts
producer,
the purchaser may | 4 |
| earn, report, and use
Manufacturer's
Purchase Credit in the | 5 |
| same manner as a manufacturer or graphic arts
producer.
| 6 |
| A purchaser shall not be entitled to any Manufacturer's | 7 |
| Purchase
Credit for a purchase that is required to be reported | 8 |
| and is not timely
reported as
provided in this Section. A | 9 |
| purchaser remains liable for (i) any
tax that was satisfied by | 10 |
| use of a Manufacturer's Purchase Credit, as of the
date of | 11 |
| purchase, if that use is not timely reported as required in | 12 |
| this
Section and (ii) for any applicable penalties and interest | 13 |
| for failing to pay
the tax when due. No Manufacturer's Purchase | 14 |
| Credit may be used after
September 30, 2003 to
satisfy any
tax | 15 |
| liability imposed under this Act, including any audit | 16 |
| liability.
| 17 |
| (b) Manufacturer's Purchase Credit earned on and after | 18 |
| September 1, 2004. This subsection (b) applies to | 19 |
| Manufacturer's Purchase Credit earned on or after September 1, | 20 |
| 2004. Manufacturer's Purchase Credit earned on or after | 21 |
| September 1, 2004 may only be used to satisfy the Use Tax or | 22 |
| Service Use Tax liability incurred on production related | 23 |
| tangible personal property purchased on or after September 1, | 24 |
| 2004. A purchaser of production related tangible personal | 25 |
| property desiring to use the Manufacturer's Purchase Credit | 26 |
| shall certify to the seller that the purchaser is satisfying | 27 |
| all or part of the liability under the Use Tax Act or the | 28 |
| Service Use Tax Act that is due on the purchase of the | 29 |
| production related tangible personal property by use of a | 30 |
| Manufacturer's Purchase Credit. The Manufacturer's Purchase | 31 |
| Credit certification must be dated and shall include the name | 32 |
| and address of the purchaser, the purchaser's registration | 33 |
| number, if registered, the credit being applied, and a | 34 |
| statement that the State Use Tax or Service Use Tax liability |
|
|
|
09300SB2207ham002 |
- 56 - |
LRB093 15831 BDD 52995 a |
|
| 1 |
| is being satisfied with the manufacturer's or graphic arts | 2 |
| producer's accumulated purchase credit. Certification may be | 3 |
| incorporated into the manufacturer's or graphic arts | 4 |
| producer's purchase order. Manufacturer's Purchase Credit | 5 |
| certification provided by the manufacturer or graphic arts | 6 |
| producer may be used to satisfy the retailer's or serviceman's | 7 |
| liability under the Retailers' Occupation Tax Act or Service | 8 |
| Occupation Tax Act for the credit claimed, not to exceed 6.25% | 9 |
| of the receipts subject to tax from a qualifying purchase, but | 10 |
| only if the retailer or serviceman reports the Manufacturer's | 11 |
| Purchase Credit claimed as required by the Department. The | 12 |
| Manufacturer's Purchase Credit earned by purchase of exempt | 13 |
| manufacturing machinery and equipment or graphic arts | 14 |
| machinery and equipment is a non-transferable credit. A | 15 |
| manufacturer or graphic arts producer that enters into a | 16 |
| contract involving the installation of tangible personal | 17 |
| property into real estate within a manufacturing or graphic | 18 |
| arts production facility may, on or after September 1, 2004, | 19 |
| authorize a construction contractor to utilize credit | 20 |
| accumulated by the manufacturer or graphic arts producer to | 21 |
| purchase the tangible personal property. A manufacturer or | 22 |
| graphic arts producer intending to use accumulated credit to | 23 |
| purchase such tangible personal property shall execute a | 24 |
| written contract authorizing the contractor to utilize a | 25 |
| specified dollar amount of credit. The contractor shall furnish | 26 |
| the supplier with the manufacturer's or graphic arts producer's | 27 |
| name, registration or resale number, and a statement that a | 28 |
| specific amount of the Use Tax or Service Use Tax liability, | 29 |
| not to exceed 6.25% of the selling price, is being satisfied | 30 |
| with the credit. The manufacturer or graphic arts producer | 31 |
| shall remain liable to timely report all information required | 32 |
| by the annual Report of Manufacturer's Purchase Credit Used for | 33 |
| credit utilized by a construction contractor. | 34 |
| The Manufacturer's Purchase Credit may be used to satisfy |
|
|
|
09300SB2207ham002 |
- 57 - |
LRB093 15831 BDD 52995 a |
|
| 1 |
| liability under the Use Tax Act or the Service Use Tax Act due | 2 |
| on the purchase, made on or after September 1, 2004, of | 3 |
| production related tangible personal property (including | 4 |
| purchases by a manufacturer, by a graphic arts producer, or a | 5 |
| lessor who rents or leases the use of the property to a | 6 |
| manufacturer or graphic arts producer) that does not otherwise | 7 |
| qualify for the manufacturing machinery and equipment | 8 |
| exemption or the graphic arts machinery and equipment | 9 |
| exemption. "Production related tangible personal property" | 10 |
| means (i) all tangible personal property used or consumed by | 11 |
| the purchaser in a manufacturing facility in which a | 12 |
| manufacturing process described in Section 2-45 of the | 13 |
| Retailers' Occupation Tax Act takes place, including tangible | 14 |
| personal property purchased for incorporation into real estate | 15 |
| within a manufacturing facility and including, but not limited | 16 |
| to, tangible personal property used or consumed in activities | 17 |
| such as pre-production material handling, receiving, quality | 18 |
| control, inventory control, storage, staging, and packaging | 19 |
| for shipping and transportation purposes; (ii) all tangible | 20 |
| personal property used or consumed by the purchaser in a | 21 |
| graphic arts facility in which graphic arts production as | 22 |
| described in Section 2-30 of the Retailers' Occupation Tax Act | 23 |
| takes place, including tangible personal property purchased | 24 |
| for incorporation into real estate within a graphic arts | 25 |
| facility and including, but not limited to, all tangible | 26 |
| personal property used or consumed in activities such as | 27 |
| graphic arts preliminary or pre-press production, | 28 |
| pre-production material handling, receiving, quality control, | 29 |
| inventory control, storage, staging, sorting, labeling, | 30 |
| mailing, tying, wrapping, and packaging; and (iii) all tangible | 31 |
| personal property used or consumed by the purchaser for | 32 |
| research and development. "Production related tangible | 33 |
| personal property" does not include (i) tangible personal | 34 |
| property used, within or without a manufacturing or graphic |
|
|
|
09300SB2207ham002 |
- 58 - |
LRB093 15831 BDD 52995 a |
|
| 1 |
| arts facility, in sales, purchasing, accounting, fiscal | 2 |
| management, marketing, personnel recruitment or selection, or | 3 |
| landscaping or (ii) tangible personal property required to be | 4 |
| titled or registered with a department, agency, or unit of | 5 |
| federal, state, or local government. The Manufacturer's | 6 |
| Purchase Credit may be used to satisfy the tax arising either | 7 |
| from the purchase of machinery and equipment on or after | 8 |
| September 1, 2004 for which the manufacturing machinery and | 9 |
| equipment exemption provided by Section 2 of this Act was | 10 |
| erroneously claimed, or the purchase of machinery and equipment | 11 |
| on or after September 1, 2004 for which the exemption provided | 12 |
| by paragraph (5) of Section 3-5 of this Act was erroneously | 13 |
| claimed, but not in satisfaction of penalty, if any, and | 14 |
| interest for failure to pay the tax when due. A purchaser of | 15 |
| production related tangible personal property that is | 16 |
| purchased on or after September 1, 2004 who is required to pay | 17 |
| Illinois Use Tax or Service Use Tax on the purchase directly to | 18 |
| the Department may utilize the Manufacturer's Purchase Credit | 19 |
| in satisfaction of the tax arising from that purchase, but not | 20 |
| in satisfaction of penalty and interest. A purchaser who uses | 21 |
| the Manufacturer's Purchase Credit to purchase property on and | 22 |
| after September 1, 2004 which is later determined not to be | 23 |
| production related tangible personal property may be liable for | 24 |
| tax, penalty, and interest on the purchase of that property as | 25 |
| of the date of purchase but shall be entitled to use the | 26 |
| disallowed Manufacturer's Purchase Credit, so long as it has | 27 |
| not expired, on qualifying purchases of production related | 28 |
| tangible personal property not previously subject to credit | 29 |
| usage. The Manufacturer's Purchase Credit earned by a | 30 |
| manufacturer or graphic arts producer expires the last day of | 31 |
| the second calendar year following the calendar year in which | 32 |
| the credit arose. | 33 |
| A purchaser earning Manufacturer's Purchase Credit shall | 34 |
| sign and file an annual Report of Manufacturer's Purchase |
|
|
|
09300SB2207ham002 |
- 59 - |
LRB093 15831 BDD 52995 a |
|
| 1 |
| Credit Earned for each calendar year no later than the last day | 2 |
| of the sixth month following the calendar year in which a | 3 |
| Manufacturer's Purchase Credit is earned. A Report of | 4 |
| Manufacturer's Purchase Credit Earned shall be filed on forms | 5 |
| as prescribed or approved by the Department and shall state, | 6 |
| for each month of the calendar year: (i) the total purchase | 7 |
| price of all purchases of exempt manufacturing or graphic arts | 8 |
| machinery on which the credit was earned; (ii) the total State | 9 |
| Use Tax or Service Use Tax which would have been due on those | 10 |
| items; (iii) the percentage used to calculate the amount of | 11 |
| credit earned; (iv) the amount of credit earned; and (v) such | 12 |
| other information as the Department may reasonably require. A | 13 |
| purchaser earning Manufacturer's Purchase Credit shall | 14 |
| maintain records which identify, as to each purchase of | 15 |
| manufacturing or graphic arts machinery and equipment on which | 16 |
| the purchaser earned Manufacturer's Purchase Credit, the | 17 |
| vendor (including, if applicable, either the vendor's | 18 |
| registration number or Federal Employer Identification | 19 |
| Number), the purchase price, and the amount of Manufacturer's | 20 |
| Purchase Credit earned on each purchase. | 21 |
| A purchaser using Manufacturer's Purchase Credit shall | 22 |
| sign and file an annual Report of Manufacturer's Purchase | 23 |
| Credit Used for each calendar year no later than the last day | 24 |
| of the sixth month following the calendar year in which a | 25 |
| Manufacturer's Purchase Credit is used. A Report of | 26 |
| Manufacturer's Purchase Credit Used shall be filed on forms as | 27 |
| prescribed or approved by the Department and shall state, for | 28 |
| each month of the calendar year: (i) the total purchase price | 29 |
| of production related tangible personal property purchased | 30 |
| from Illinois suppliers; (ii) the total purchase price of | 31 |
| production related tangible personal property purchased from | 32 |
| out-of-state suppliers; (iii) the total amount of credit used | 33 |
| during such month; and (iv) such other information as the | 34 |
| Department may reasonably require. A purchaser using |
|
|
|
09300SB2207ham002 |
- 60 - |
LRB093 15831 BDD 52995 a |
|
| 1 |
| Manufacturer's Purchase Credit shall maintain records that | 2 |
| identify, as to each purchase of production related tangible | 3 |
| personal property on which the purchaser used Manufacturer's | 4 |
| Purchase Credit, the vendor (including, if applicable, either | 5 |
| the vendor's registration number or Federal Employer | 6 |
| Identification Number), the purchase price, and the amount of | 7 |
| Manufacturer's Purchase Credit used on each purchase. | 8 |
| A purchaser that fails to file an annual Report of | 9 |
| Manufacturer's Purchase Credit Earned or an annual Report of | 10 |
| Manufacturer's Purchase Credit Used by the last day of the | 11 |
| sixth month following the end of the calendar year shall | 12 |
| forfeit all Manufacturer's Purchase Credit for that calendar | 13 |
| year unless it establishes that its failure to file was due to | 14 |
| reasonable cause. Manufacturer's Purchase Credit reports may | 15 |
| be amended to report and claim credit on qualifying purchases | 16 |
| not previously reported at any time before the credit would | 17 |
| have expired, unless both the Department and the purchaser have | 18 |
| agreed to an extension of the statute of limitations for the | 19 |
| issuance of a notice of tax liability as provided in Section 4 | 20 |
| of the Retailers' Occupation Tax Act. If the time for | 21 |
| assessment or refund has been extended, then amended reports | 22 |
| for a calendar year may be filed at any time prior to the date | 23 |
| to which the statute of limitations for the calendar year or | 24 |
| portion thereof has been extended. Manufacturer's Purchase | 25 |
| Credit claimed on an amended report may be used to satisfy tax | 26 |
| liability under the Use Tax Act or the Service Use Tax Act (i) | 27 |
| on qualifying purchases of production related tangible | 28 |
| personal property made after the date the amended report is | 29 |
| filed or (ii) assessed by the Department on qualifying | 30 |
| production related tangible personal property purchased on or | 31 |
| after September 1, 2004. | 32 |
| If the purchaser is not the manufacturer or a graphic arts | 33 |
| producer, but rents or leases the use of the property to a | 34 |
| manufacturer or a graphic arts producer, the purchaser may |
|
|
|
09300SB2207ham002 |
- 61 - |
LRB093 15831 BDD 52995 a |
|
| 1 |
| earn, report, and use Manufacturer's Purchase Credit in the | 2 |
| same manner as a manufacturer or graphic arts producer.
A | 3 |
| purchaser shall not be entitled to any Manufacturer's Purchase | 4 |
| Credit for a purchase that is required to be reported and is | 5 |
| not timely reported as provided in this Section. A purchaser | 6 |
| remains liable for (i) any tax that was satisfied by use of a | 7 |
| Manufacturer's Purchase Credit, as of the date of purchase, if | 8 |
| that use is not timely reported as required in this Section and | 9 |
| (ii) for any applicable penalties and interest for failing to | 10 |
| pay the tax when due.
| 11 |
| (Source: P.A. 93-24, eff. 6-20-03.)
|
|
12 |
| Section 20-20. The Service Occupation Tax Act is amended by | 13 |
| changing Sections 3-5 and 9 as follows:
| 14 |
| (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
| 15 |
| Sec. 3-5. Exemptions. The following tangible personal | 16 |
| property is
exempt from the tax imposed by this Act:
| 17 |
| (1) Personal property sold by a corporation, society, | 18 |
| association,
foundation, institution, or organization, other | 19 |
| than a limited liability
company, that is organized and | 20 |
| operated as a not-for-profit service enterprise
for the benefit | 21 |
| of persons 65 years of age or older if the personal property
| 22 |
| was not purchased by the enterprise for the purpose of resale | 23 |
| by the
enterprise.
| 24 |
| (2) Personal property purchased by a not-for-profit | 25 |
| Illinois county fair
association for use in conducting, | 26 |
| operating, or promoting the county fair.
| 27 |
| (3) Personal property purchased by any not-for-profit
arts | 28 |
| or cultural organization that establishes, by proof required by | 29 |
| the
Department by
rule, that it has received an exemption under | 30 |
| Section 501(c)(3) of the
Internal Revenue Code and that is | 31 |
| organized and operated primarily for the
presentation
or | 32 |
| support of arts or cultural programming, activities, or |
|
|
|
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| 1 |
| services. These
organizations include, but are not limited to, | 2 |
| music and dramatic arts
organizations such as symphony | 3 |
| orchestras and theatrical groups, arts and
cultural service | 4 |
| organizations, local arts councils, visual arts organizations,
| 5 |
| and media arts organizations.
On and after the effective date | 6 |
| of this amendatory Act of the 92nd General
Assembly, however, | 7 |
| an entity otherwise eligible for this exemption shall not
make | 8 |
| tax-free purchases unless it has an active identification | 9 |
| number issued by
the Department.
| 10 |
| (4) Legal tender, currency, medallions, or gold or silver | 11 |
| coinage
issued by the State of Illinois, the government of the | 12 |
| United States of
America, or the government of any foreign | 13 |
| country, and bullion.
| 14 |
| (5) Until July 1, 2003 and beginning again on September 1, | 15 |
| 2004 , graphic arts machinery and equipment, including
repair | 16 |
| and
replacement parts, both new and used, and including that | 17 |
| manufactured on
special order or purchased for lease, certified | 18 |
| by the purchaser to be used
primarily for graphic arts | 19 |
| production.
Equipment includes chemicals or chemicals acting | 20 |
| as catalysts but only if
the
chemicals or chemicals acting as | 21 |
| catalysts effect a direct and immediate change
upon a graphic | 22 |
| arts product.
| 23 |
| (6) Personal property sold by a teacher-sponsored student | 24 |
| organization
affiliated with an elementary or secondary school | 25 |
| located in Illinois.
| 26 |
| (7) Farm machinery and equipment, both new and used, | 27 |
| including that
manufactured on special order, certified by the | 28 |
| purchaser to be used
primarily for production agriculture or | 29 |
| State or federal agricultural
programs, including individual | 30 |
| replacement parts for the machinery and
equipment, including | 31 |
| machinery and equipment purchased for lease,
and including | 32 |
| implements of husbandry defined in Section 1-130 of
the | 33 |
| Illinois Vehicle Code, farm machinery and agricultural | 34 |
| chemical and
fertilizer spreaders, and nurse wagons required to |
|
|
|
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| 1 |
| be registered
under Section 3-809 of the Illinois Vehicle Code,
| 2 |
| but
excluding other motor vehicles required to be registered | 3 |
| under the Illinois
Vehicle
Code.
Horticultural polyhouses or | 4 |
| hoop houses used for propagating, growing, or
overwintering | 5 |
| plants shall be considered farm machinery and equipment under
| 6 |
| this item (7).
Agricultural chemical tender tanks and dry boxes | 7 |
| shall include units sold
separately from a motor vehicle | 8 |
| required to be licensed and units sold mounted
on a motor | 9 |
| vehicle required to be licensed if the selling price of the | 10 |
| tender
is separately stated.
| 11 |
| Farm machinery and equipment shall include precision | 12 |
| farming equipment
that is
installed or purchased to be | 13 |
| installed on farm machinery and equipment
including, but not | 14 |
| limited to, tractors, harvesters, sprayers, planters,
seeders, | 15 |
| or spreaders.
Precision farming equipment includes, but is not | 16 |
| limited to,
soil testing sensors, computers, monitors, | 17 |
| software, global positioning
and mapping systems, and other | 18 |
| such equipment.
| 19 |
| Farm machinery and equipment also includes computers, | 20 |
| sensors, software, and
related equipment used primarily in the
| 21 |
| computer-assisted operation of production agriculture | 22 |
| facilities, equipment,
and activities such as, but
not limited | 23 |
| to,
the collection, monitoring, and correlation of
animal and | 24 |
| crop data for the purpose of
formulating animal diets and | 25 |
| agricultural chemicals. This item (7) is exempt
from the | 26 |
| provisions of
Section 3-55.
| 27 |
| (8) Fuel and petroleum products sold to or used by an air | 28 |
| common
carrier, certified by the carrier to be used for | 29 |
| consumption, shipment,
or storage in the conduct of its | 30 |
| business as an air common carrier, for
a flight destined for or | 31 |
| returning from a location or locations
outside the United | 32 |
| States without regard to previous or subsequent domestic
| 33 |
| stopovers.
| 34 |
| (9) Proceeds of mandatory service charges separately
|
|
|
|
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| stated on customers' bills for the purchase and consumption of | 2 |
| food and
beverages, to the extent that the proceeds of the | 3 |
| service charge are in fact
turned over as tips or as a | 4 |
| substitute for tips to the employees who
participate directly | 5 |
| in preparing, serving, hosting or cleaning up the
food or | 6 |
| beverage function with respect to which the service charge is | 7 |
| imposed.
| 8 |
| (10) Until July 1, 2003, oil field exploration, drilling, | 9 |
| and production
equipment,
including (i) rigs and parts of rigs, | 10 |
| rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 11 |
| tubular goods, including casing and
drill strings, (iii) pumps | 12 |
| and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 13 |
| individual replacement part for oil field exploration,
| 14 |
| drilling, and production equipment, and (vi) machinery and | 15 |
| equipment purchased
for lease; but
excluding motor vehicles | 16 |
| required to be registered under the Illinois
Vehicle Code.
| 17 |
| (11) Photoprocessing machinery and equipment, including | 18 |
| repair and
replacement parts, both new and used, including that | 19 |
| manufactured on
special order, certified by the purchaser to be | 20 |
| used primarily for
photoprocessing, and including | 21 |
| photoprocessing machinery and equipment
purchased for lease.
| 22 |
| (12) Until July 1, 2003, coal exploration, mining, | 23 |
| offhighway hauling,
processing,
maintenance, and reclamation | 24 |
| equipment, including
replacement parts and equipment, and | 25 |
| including
equipment
purchased for lease, but excluding motor | 26 |
| vehicles required to be registered
under the Illinois Vehicle | 27 |
| Code.
| 28 |
| (13) Food for human consumption that is to be consumed off | 29 |
| the premises
where it is sold (other than alcoholic beverages, | 30 |
| soft drinks and food that
has been prepared for immediate | 31 |
| consumption) and prescription and
non-prescription medicines, | 32 |
| drugs, medical appliances, and insulin, urine
testing | 33 |
| materials, syringes, and needles used by diabetics, for human | 34 |
| use,
when purchased for use by a person receiving medical |
|
|
|
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| assistance under
Article 5 of the Illinois Public Aid Code who | 2 |
| resides in a licensed
long-term care facility, as defined in | 3 |
| the Nursing Home Care Act.
| 4 |
| (14) Semen used for artificial insemination of livestock | 5 |
| for direct
agricultural production.
| 6 |
| (15) Horses, or interests in horses, registered with and | 7 |
| meeting the
requirements of any of the
Arabian Horse Club | 8 |
| Registry of America, Appaloosa Horse Club, American Quarter
| 9 |
| Horse Association, United States
Trotting Association, or | 10 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 11 |
| racing for prizes.
| 12 |
| (16) Computers and communications equipment utilized for | 13 |
| any
hospital
purpose
and equipment used in the diagnosis,
| 14 |
| analysis, or treatment of hospital patients sold to a lessor | 15 |
| who leases the
equipment, under a lease of one year or longer | 16 |
| executed or in effect at the
time of the purchase, to a
| 17 |
| hospital
that has been issued an active tax exemption | 18 |
| identification number by the
Department under Section 1g of the | 19 |
| Retailers' Occupation Tax Act.
| 20 |
| (17) Personal property sold to a lessor who leases the
| 21 |
| property, under a
lease of one year or longer executed or in | 22 |
| effect at the time of the purchase,
to a governmental body
that | 23 |
| has been issued an active tax exemption identification number | 24 |
| by the
Department under Section 1g of the Retailers' Occupation | 25 |
| Tax Act.
| 26 |
| (18) Beginning with taxable years ending on or after | 27 |
| December
31, 1995
and
ending with taxable years ending on or | 28 |
| before December 31, 2004,
personal property that is
donated for | 29 |
| disaster relief to be used in a State or federally declared
| 30 |
| disaster area in Illinois or bordering Illinois by a | 31 |
| manufacturer or retailer
that is registered in this State to a | 32 |
| corporation, society, association,
foundation, or institution | 33 |
| that has been issued a sales tax exemption
identification | 34 |
| number by the Department that assists victims of the disaster
|
|
|
|
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| 1 |
| who reside within the declared disaster area.
| 2 |
| (19) Beginning with taxable years ending on or after | 3 |
| December
31, 1995 and
ending with taxable years ending on or | 4 |
| before December 31, 2004, personal
property that is used in the | 5 |
| performance of infrastructure repairs in this
State, including | 6 |
| but not limited to municipal roads and streets, access roads,
| 7 |
| bridges, sidewalks, waste disposal systems, water and sewer | 8 |
| line extensions,
water distribution and purification | 9 |
| facilities, storm water drainage and
retention facilities, and | 10 |
| sewage treatment facilities, resulting from a State
or | 11 |
| federally declared disaster in Illinois or bordering Illinois | 12 |
| when such
repairs are initiated on facilities located in the | 13 |
| declared disaster area
within 6 months after the disaster.
| 14 |
| (20) Beginning July 1, 1999, game or game birds sold at a | 15 |
| "game breeding
and
hunting preserve area" or an "exotic game | 16 |
| hunting area" as those terms are used
in the
Wildlife Code or | 17 |
| at a hunting enclosure approved through rules adopted by the
| 18 |
| Department of Natural Resources. This paragraph is exempt from | 19 |
| the provisions
of
Section 3-55.
| 20 |
| (21) A motor vehicle, as that term is defined in Section | 21 |
| 1-146
of the
Illinois Vehicle Code, that is donated to a | 22 |
| corporation, limited liability
company, society, association, | 23 |
| foundation, or institution that is determined by
the Department | 24 |
| to be organized and operated exclusively for educational
| 25 |
| purposes. For purposes of this exemption, "a corporation, | 26 |
| limited liability
company, society, association, foundation, | 27 |
| or institution organized and
operated
exclusively for | 28 |
| educational purposes" means all tax-supported public schools,
| 29 |
| private schools that offer systematic instruction in useful | 30 |
| branches of
learning by methods common to public schools and | 31 |
| that compare favorably in
their scope and intensity with the | 32 |
| course of study presented in tax-supported
schools, and | 33 |
| vocational or technical schools or institutes organized and
| 34 |
| operated exclusively to provide a course of study of not less |
|
|
|
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| 1 |
| than 6 weeks
duration and designed to prepare individuals to | 2 |
| follow a trade or to pursue a
manual, technical, mechanical, | 3 |
| industrial, business, or commercial
occupation.
| 4 |
| (22) Beginning January 1, 2000, personal property, | 5 |
| including
food,
purchased through fundraising
events for the | 6 |
| benefit of
a public or private elementary or
secondary school, | 7 |
| a group of those schools, or one or more school
districts if | 8 |
| the events are
sponsored by an entity recognized by the school | 9 |
| district that consists
primarily of volunteers and includes
| 10 |
| parents and teachers of the school children. This paragraph | 11 |
| does not apply
to fundraising
events (i) for the benefit of | 12 |
| private home instruction or (ii)
for which the fundraising | 13 |
| entity purchases the personal property sold at
the events from | 14 |
| another individual or entity that sold the property for the
| 15 |
| purpose of resale by the fundraising entity and that
profits | 16 |
| from the sale to the
fundraising entity. This paragraph is | 17 |
| exempt
from the provisions
of Section 3-55.
| 18 |
| (23) Beginning January 1, 2000
and through December 31, | 19 |
| 2001, new or used automatic vending
machines that prepare and | 20 |
| serve hot food and beverages, including coffee, soup,
and
other | 21 |
| items, and replacement parts for these machines.
Beginning | 22 |
| January 1,
2002 and through June 30, 2003, machines and parts | 23 |
| for
machines used in commercial, coin-operated amusement
and | 24 |
| vending business if a use or occupation tax is paid on the | 25 |
| gross receipts
derived from
the use of the commercial, | 26 |
| coin-operated amusement and vending machines.
This paragraph | 27 |
| is exempt from the provisions of Section 3-55.
| 28 |
| (24) Beginning
on the effective date of this amendatory Act | 29 |
| of the 92nd General Assembly,
computers and communications | 30 |
| equipment
utilized for any hospital purpose and equipment used | 31 |
| in the diagnosis,
analysis, or treatment of hospital patients | 32 |
| sold to a lessor who leases the
equipment, under a lease of one | 33 |
| year or longer executed or in effect at the
time of the | 34 |
| purchase, to a hospital that has been issued an active tax
|
|
|
|
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|
| 1 |
| exemption identification number by the Department under | 2 |
| Section 1g of the
Retailers' Occupation Tax Act. This paragraph | 3 |
| is exempt from the provisions of
Section 3-55.
| 4 |
| (25) Beginning
on the effective date of this amendatory Act | 5 |
| of the 92nd General Assembly,
personal property sold to a | 6 |
| lessor who
leases the property, under a lease of one year or | 7 |
| longer executed or in effect
at the time of the purchase, to a | 8 |
| governmental body that has been issued an
active tax exemption | 9 |
| identification number by the Department under Section 1g
of the | 10 |
| Retailers' Occupation Tax Act. This paragraph is exempt from | 11 |
| the
provisions of Section 3-55.
| 12 |
| (26) Beginning on January 1, 2002, tangible personal | 13 |
| property
purchased
from an Illinois retailer by a taxpayer | 14 |
| engaged in centralized purchasing
activities in Illinois who | 15 |
| will, upon receipt of the property in Illinois,
temporarily | 16 |
| store the property in Illinois (i) for the purpose of | 17 |
| subsequently
transporting it outside this State for use or | 18 |
| consumption thereafter solely
outside this State or (ii) for | 19 |
| the purpose of being processed, fabricated, or
manufactured | 20 |
| into, attached to, or incorporated into other tangible personal
| 21 |
| property to be transported outside this State and thereafter | 22 |
| used or consumed
solely outside this State. The Director of | 23 |
| Revenue shall, pursuant to rules
adopted in accordance with the | 24 |
| Illinois Administrative Procedure Act, issue a
permit to any | 25 |
| taxpayer in good standing with the Department who is eligible | 26 |
| for
the exemption under this paragraph (26). The permit issued | 27 |
| under
this paragraph (26) shall authorize the holder, to the | 28 |
| extent and
in the manner specified in the rules adopted under | 29 |
| this Act, to purchase
tangible personal property from a | 30 |
| retailer exempt from the taxes imposed by
this Act. Taxpayers | 31 |
| shall maintain all necessary books and records to
substantiate | 32 |
| the use and consumption of all such tangible personal property
| 33 |
| outside of the State of Illinois.
| 34 |
| (Source: P.A. 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227, |
|
|
|
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| 1 |
| eff. 8-2-01;
92-337, eff.
8-10-01; 92-484, eff. 8-23-01; | 2 |
| 92-488, eff. 8-23-01; 92-651, eff. 7-11-02;
93-24, eff. | 3 |
| 6-20-03.)
| 4 |
| (35 ILCS 115/9) (from Ch. 120, par. 439.109)
| 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 at the
time when he is required to file his return | 8 |
| for the period during which
such tax was collectible, less a | 9 |
| discount of 2.1% prior to
January 1, 1990, and 1.75% on and | 10 |
| after January 1, 1990, or
$5 per calendar year, whichever is | 11 |
| greater, which is allowed to reimburse
the serviceman for | 12 |
| expenses incurred in collecting the tax, keeping
records, | 13 |
| preparing and filing returns, remitting the tax and supplying | 14 |
| data
to the Department on request.
| 15 |
| Where such tangible personal property is sold under a | 16 |
| conditional
sales contract, or under any other form of sale | 17 |
| wherein the payment of
the principal sum, or a part thereof, is | 18 |
| extended beyond the close of
the period for which the return is | 19 |
| filed, the serviceman, in collecting
the tax may collect, for | 20 |
| each tax return period, only the tax applicable
to the part of | 21 |
| the selling price actually received during such tax return
| 22 |
| period.
| 23 |
| Except as provided hereinafter in this Section, on or | 24 |
| before the twentieth
day of each calendar month, such | 25 |
| serviceman shall file a
return for the preceding calendar month | 26 |
| in accordance with reasonable
rules and regulations to be | 27 |
| promulgated by the Department of Revenue.
Such return shall be | 28 |
| filed on a form prescribed by the Department and
shall contain | 29 |
| such information as the Department may reasonably require.
| 30 |
| The Department may require returns to be filed on a | 31 |
| quarterly basis.
If so required, a return for each calendar | 32 |
| quarter shall be filed on or
before the twentieth day of the | 33 |
| calendar month following the end of such
calendar quarter. The |
|
|
|
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| 1 |
| taxpayer shall also file a return with the
Department for each | 2 |
| of the first two months of each calendar quarter, on or
before | 3 |
| the twentieth day of the following calendar month, stating:
| 4 |
| 1. The name of the seller;
| 5 |
| 2. The address of the principal place of business from | 6 |
| which he engages
in business as a serviceman in this State;
| 7 |
| 3. The total amount of taxable receipts received by him | 8 |
| during the
preceding calendar month, including receipts | 9 |
| from charge and time sales,
but less all deductions allowed | 10 |
| by law;
| 11 |
| 4. The amount of credit provided in Section 2d of this | 12 |
| Act;
| 13 |
| 5. The amount of tax due;
| 14 |
| 5-5. The signature of the taxpayer; and
| 15 |
| 6. Such other reasonable information as the Department | 16 |
| may
require.
| 17 |
| If a taxpayer fails to sign a return within 30 days after | 18 |
| the proper notice
and demand for signature by the Department, | 19 |
| the return shall be considered
valid and any amount shown to be | 20 |
| due on the return shall be deemed assessed.
| 21 |
| Prior to October 1, 2003, and on and after September 1, | 22 |
| 2004 a serviceman may accept a Manufacturer's
Purchase Credit | 23 |
| certification
from a purchaser in satisfaction
of Service Use | 24 |
| Tax as provided in Section 3-70 of the
Service Use Tax Act if | 25 |
| the purchaser provides
the
appropriate
documentation as | 26 |
| required by Section 3-70 of the Service Use Tax Act.
A | 27 |
| Manufacturer's Purchase Credit certification, accepted prior | 28 |
| to October 1,
2003 or on or after September 1, 2004 by a | 29 |
| serviceman as
provided in Section 3-70 of the Service Use Tax | 30 |
| Act, may be used by that
serviceman to satisfy Service | 31 |
| Occupation Tax liability in the amount claimed in
the | 32 |
| certification, not to exceed 6.25% of the receipts subject to | 33 |
| tax from a
qualifying purchase. A Manufacturer's Purchase | 34 |
| Credit reported on any
original or amended return
filed under
|
|
|
|
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| 1 |
| this Act after October 20, 2003 for reporting periods prior to | 2 |
| September 1, 2004 shall be disallowed. Manufacturer's Purchase | 3 |
| Credit reported on annual returns due on or after January 1, | 4 |
| 2005 will be disallowed for periods prior to September 1, 2004.
| 5 |
| No Manufacturer's
Purchase Credit may be used after September | 6 |
| 30, 2003 through August 31, 2004 to
satisfy any
tax liability | 7 |
| imposed under this Act, including any audit liability.
| 8 |
| If the serviceman's average monthly tax liability to
the | 9 |
| Department does not exceed $200, the Department may authorize | 10 |
| his
returns to be filed on a quarter annual basis, with the | 11 |
| return for
January, February and March of a given year being | 12 |
| due by April 20 of
such year; with the return for April, May | 13 |
| and June of a given year being
due by July 20 of such year; with | 14 |
| the return for July, August and
September of a given year being | 15 |
| due by October 20 of such year, and with
the return for | 16 |
| October, November and December of a given year being due
by | 17 |
| January 20 of the following year.
| 18 |
| If the serviceman's average monthly tax liability to
the | 19 |
| Department does not exceed $50, the Department may authorize | 20 |
| his
returns to be filed on an annual basis, with the return for | 21 |
| a given year
being due by January 20 of the following year.
| 22 |
| Such quarter annual and annual returns, as to form and | 23 |
| substance,
shall be subject to the same requirements as monthly | 24 |
| returns.
| 25 |
| Notwithstanding any other provision in this Act concerning | 26 |
| the time within
which a serviceman may file his return, in the | 27 |
| case of any serviceman who
ceases to engage in a kind of | 28 |
| business which makes him responsible for filing
returns under | 29 |
| this Act, such serviceman shall file a final return under this
| 30 |
| Act with the Department not more than 1 month after | 31 |
| discontinuing such
business.
| 32 |
| Beginning October 1, 1993, a taxpayer who has an average | 33 |
| monthly tax
liability of $150,000 or more shall make all | 34 |
| payments required by rules of the
Department by electronic |
|
|
|
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| 1 |
| funds transfer. Beginning October 1, 1994, a taxpayer
who has | 2 |
| an average monthly tax liability of $100,000 or more shall make | 3 |
| all
payments required by rules of the Department by electronic | 4 |
| funds transfer.
Beginning October 1, 1995, a taxpayer who has | 5 |
| an average monthly tax liability
of $50,000 or more shall make | 6 |
| all payments required by rules of the Department
by electronic | 7 |
| funds transfer. Beginning October 1, 2000, a taxpayer who has
| 8 |
| an annual tax liability of $200,000 or more shall make all | 9 |
| payments required by
rules of the Department by electronic | 10 |
| funds transfer. The term "annual tax
liability" shall be the | 11 |
| sum of the taxpayer's liabilities under this Act, and
under all | 12 |
| other State and local occupation and use tax laws administered | 13 |
| by the
Department, for the immediately preceding calendar year. | 14 |
| The term "average
monthly tax liability" means
the sum of the | 15 |
| taxpayer's liabilities under this Act, and under all other | 16 |
| State
and local occupation and use tax laws administered by the | 17 |
| Department, for the
immediately preceding calendar year | 18 |
| divided by 12.
Beginning on October 1, 2002, a taxpayer who has | 19 |
| a tax liability in the
amount set forth in subsection (b) of | 20 |
| Section 2505-210 of the Department of
Revenue Law shall make | 21 |
| all payments required by rules of the Department by
electronic | 22 |
| funds transfer.
| 23 |
| Before August 1 of each year beginning in 1993, the | 24 |
| Department shall
notify all taxpayers required to make payments | 25 |
| by electronic funds transfer.
All taxpayers required to make | 26 |
| payments by electronic funds transfer shall make
those payments | 27 |
| for a minimum of one year beginning on October 1.
| 28 |
| Any taxpayer not required to make payments by electronic | 29 |
| funds transfer may
make payments by electronic funds transfer | 30 |
| with the
permission of the Department.
| 31 |
| All taxpayers required to make payment by electronic funds | 32 |
| transfer and
any taxpayers authorized to voluntarily make | 33 |
| payments by electronic funds
transfer shall make those payments | 34 |
| in the manner authorized by the Department.
|
|
|
|
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|
| 1 |
| The Department shall adopt such rules as are necessary to | 2 |
| effectuate a
program of electronic funds transfer and the | 3 |
| requirements of this Section.
| 4 |
| Where a serviceman collects the tax with respect to the | 5 |
| selling price of
tangible personal property which he sells and | 6 |
| the purchaser thereafter returns
such tangible personal | 7 |
| property and the serviceman refunds the
selling price thereof | 8 |
| to the purchaser, such serviceman shall also refund,
to the | 9 |
| purchaser, the tax so collected from the purchaser. When
filing | 10 |
| his return for the period in which he refunds such tax to the
| 11 |
| purchaser, the serviceman may deduct the amount of the tax so | 12 |
| refunded by
him to the purchaser from any other Service | 13 |
| Occupation Tax, Service Use
Tax, Retailers' Occupation Tax or | 14 |
| Use Tax which such serviceman may be
required to pay or remit | 15 |
| to the Department, as shown by such return,
provided that the | 16 |
| amount of the tax to be deducted shall previously have
been | 17 |
| remitted to the Department by such serviceman. If the | 18 |
| serviceman shall
not previously have remitted the amount of | 19 |
| such tax to the Department,
he shall be entitled to no | 20 |
| deduction hereunder upon refunding such tax
to the purchaser.
| 21 |
| If experience indicates such action to be practicable, the | 22 |
| Department
may prescribe and furnish a combination or joint | 23 |
| return which will
enable servicemen, who are required to file | 24 |
| returns
hereunder and also under the Retailers' Occupation Tax | 25 |
| Act, the Use
Tax Act or the Service Use Tax Act, to furnish all | 26 |
| the return
information required by all said Acts on the one | 27 |
| form.
| 28 |
| Where the serviceman has more than one business
registered | 29 |
| with the Department under separate registrations hereunder,
| 30 |
| such serviceman shall file separate returns for each
registered | 31 |
| business.
| 32 |
| Beginning January 1, 1990, each month the Department shall | 33 |
| pay into
the Local Government Tax Fund the revenue realized for | 34 |
| the
preceding month from the 1% tax on sales of food for human |
|
|
|
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| 1 |
| consumption
which is to be consumed off the premises where it | 2 |
| is sold (other than
alcoholic beverages, soft drinks and food | 3 |
| which has been prepared for
immediate consumption) and | 4 |
| prescription and nonprescription medicines,
drugs, medical | 5 |
| appliances and insulin, urine testing materials, syringes
and | 6 |
| needles used by diabetics.
| 7 |
| Beginning January 1, 1990, each month the Department shall | 8 |
| pay into
the County and Mass Transit District Fund 4% of the | 9 |
| revenue realized
for the preceding month from the 6.25% general | 10 |
| rate.
| 11 |
| Beginning August 1, 2000, each
month the Department shall | 12 |
| pay into the
County and Mass Transit District Fund 20% of the | 13 |
| net revenue realized for the
preceding month from the 1.25% | 14 |
| rate on the selling price of motor fuel and
gasohol.
| 15 |
| Beginning January 1, 1990, each month the Department shall | 16 |
| pay into
the Local Government Tax Fund 16% of the revenue | 17 |
| realized for the
preceding month from the 6.25% general rate on | 18 |
| transfers of
tangible personal property.
| 19 |
| Beginning August 1, 2000, each
month the Department shall | 20 |
| pay into the
Local Government Tax Fund 80% of the net revenue | 21 |
| realized for the preceding
month from the 1.25% rate on the | 22 |
| selling price of motor fuel and gasohol.
| 23 |
| Of the remainder of the moneys received by the Department | 24 |
| pursuant to
this Act, (a) 1.75% thereof shall be paid into the | 25 |
| Build Illinois Fund and
(b) prior to July 1, 1989, 2.2% and on | 26 |
| and after July 1, 1989, 3.8% thereof
shall be paid into the | 27 |
| Build Illinois Fund; provided, however, that if in
any fiscal | 28 |
| year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
| 29 |
| may be, of the moneys received by the Department and required | 30 |
| to be paid
into the Build Illinois Fund pursuant to Section 3 | 31 |
| of the Retailers'
Occupation Tax Act, Section 9 of the Use Tax | 32 |
| Act, Section 9 of the Service
Use Tax Act, and Section 9 of the | 33 |
| Service Occupation Tax Act, such Acts
being hereinafter called | 34 |
| the "Tax Acts" and such aggregate of 2.2% or 3.8%,
as the case |
|
|
|
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|
| 1 |
| may be, of moneys being hereinafter called the "Tax Act
| 2 |
| Amount", and (2) the amount transferred to the Build Illinois | 3 |
| Fund from the
State and Local Sales Tax Reform Fund shall be | 4 |
| less than the Annual
Specified Amount (as defined in Section 3 | 5 |
| of the Retailers' Occupation Tax
Act), an amount equal to the | 6 |
| difference shall be immediately paid into the
Build Illinois | 7 |
| Fund from other moneys received by the Department pursuant
to | 8 |
| the Tax Acts; and further provided, that if on the last | 9 |
| business day of
any month the sum of (1) the Tax Act Amount | 10 |
| required to be deposited into
the Build Illinois Account in the | 11 |
| Build Illinois Fund during such month and
(2) the amount | 12 |
| transferred during such month to the Build Illinois Fund
from | 13 |
| the State and Local Sales Tax Reform Fund shall have been less | 14 |
| than
1/12 of the Annual Specified Amount, an amount equal to | 15 |
| the difference
shall be immediately paid into the Build | 16 |
| Illinois Fund from other moneys
received by the Department | 17 |
| pursuant to the Tax Acts; and, further provided,
that in no | 18 |
| event shall the payments required under the preceding proviso
| 19 |
| result in aggregate payments into the Build Illinois Fund | 20 |
| pursuant to this
clause (b) for any fiscal year in excess of | 21 |
| the greater of (i) the Tax Act
Amount or (ii) the Annual | 22 |
| Specified Amount for such fiscal year; and,
further provided, | 23 |
| that the amounts payable into the Build Illinois Fund
under | 24 |
| this clause (b) shall be payable only until such time as the
| 25 |
| aggregate amount on deposit under each trust indenture securing | 26 |
| Bonds
issued and outstanding pursuant to the Build Illinois | 27 |
| Bond Act is
sufficient, taking into account any future | 28 |
| investment income, to fully
provide, in accordance with such | 29 |
| indenture, for the defeasance of or the
payment of the | 30 |
| principal of, premium, if any, and interest on the Bonds
| 31 |
| secured by such indenture and on any Bonds expected to be | 32 |
| issued thereafter
and all fees and costs payable with respect | 33 |
| thereto, all as certified by
the Director of the
Bureau of the | 34 |
| Budget (now Governor's Office of Management and Budget) . If
on |
|
|
|
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| 1 |
| the last business day of
any month in which Bonds are | 2 |
| outstanding pursuant to the Build Illinois
Bond Act, the | 3 |
| aggregate of the moneys deposited
in the Build Illinois Bond | 4 |
| Account in the Build Illinois Fund in such month
shall be less | 5 |
| than the amount required to be transferred in such month from
| 6 |
| the Build Illinois Bond Account to the Build Illinois Bond | 7 |
| Retirement and
Interest Fund pursuant to Section 13 of the | 8 |
| Build Illinois Bond Act, an
amount equal to such deficiency | 9 |
| shall be immediately paid
from other moneys received by the | 10 |
| Department pursuant to the Tax Acts
to the Build Illinois Fund; | 11 |
| provided, however, that any amounts paid to the
Build Illinois | 12 |
| Fund in any fiscal year pursuant to this sentence shall be
| 13 |
| deemed to constitute payments pursuant to clause (b) of the | 14 |
| preceding
sentence and shall reduce the amount otherwise | 15 |
| payable for such fiscal year
pursuant to clause (b) of the | 16 |
| preceding sentence. The moneys received by
the Department | 17 |
| pursuant to this Act and required to be deposited into the
| 18 |
| Build Illinois Fund are subject to the pledge, claim and charge | 19 |
| set forth
in Section 12 of the Build Illinois Bond Act.
| 20 |
| Subject to payment of amounts into the Build Illinois Fund | 21 |
| as provided in
the preceding paragraph or in any amendment | 22 |
| thereto hereafter enacted, the
following specified monthly | 23 |
| installment of the amount requested in the
certificate of the | 24 |
| Chairman of the Metropolitan Pier and Exposition
Authority | 25 |
| provided under Section 8.25f of the State Finance Act, but not | 26 |
| in
excess of the sums designated as "Total Deposit", shall be | 27 |
| deposited in the
aggregate from collections under Section 9 of | 28 |
| the Use Tax Act, Section 9 of
the Service Use Tax Act, Section | 29 |
| 9 of the Service Occupation Tax Act, and
Section 3 of the | 30 |
| Retailers' Occupation Tax Act into the McCormick Place
| 31 |
| Expansion Project Fund in the specified fiscal years.
|
|
32 | | Fiscal Year | | Total Deposit | |
33 | | 1993 | | $0 | |
|
|
|
|
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|
|
1 | | 1994 | | 53,000,000 | |
2 | | 1995 | | 58,000,000 | |
3 | | 1996 | | 61,000,000 | |
4 | | 1997 | | 64,000,000 | |
5 | | 1998 | | 68,000,000 | |
6 | | 1999 | | 71,000,000 | |
7 | | 2000 | | 75,000,000 | |
8 | | 2001 | | 80,000,000 | |
9 | | 2002 | | 93,000,000 | |
10 | | 2003 | | 99,000,000 | |
11 | | 2004 | | 103,000,000 | |
12 | | 2005 | | 108,000,000 | |
13 | | 2006 | | 113,000,000 | |
14 | | 2007 | | 119,000,000 | |
15 | | 2008 | | 126,000,000 | |
16 | | 2009 | | 132,000,000 | |
17 | | 2010 | | 139,000,000 | |
18 | | 2011 | | 146,000,000 | |
19 | | 2012 | | 153,000,000 | |
20 | | 2013 | | 161,000,000 | |
21 | | 2014 | | 170,000,000 | |
22 | | 2015 | | 179,000,000 | |
23 | | 2016 | | 189,000,000 | |
24 | | 2017 | | 199,000,000 | |
25 | | 2018 | | 210,000,000 | |
26 | | 2019 | | 221,000,000 | |
27 | | 2020 | | 233,000,000 | |
28 | | 2021 | | 246,000,000 | |
29 | | 2022 | | 260,000,000 | |
30 | | 2023 and | | 275,000,000 | |
31 | | each fiscal year | | | |
32 | | thereafter that bonds | | | |
33 | | are outstanding under | | | |
34 | | Section 13.2 of the | | | |
|
|
|
|
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|
|
1 | | Metropolitan Pier and | | | |
2 | | Exposition Authority Act, | | | |
3 | | but not after fiscal year 2042. | | |
| 4 |
| Beginning July 20, 1993 and in each month of each fiscal | 5 |
| year thereafter,
one-eighth of the amount requested in the | 6 |
| certificate of the Chairman of
the Metropolitan Pier and | 7 |
| Exposition Authority for that fiscal year, less
the amount | 8 |
| deposited into the McCormick Place Expansion Project Fund by | 9 |
| the
State Treasurer in the respective month under subsection | 10 |
| (g) of Section 13
of the Metropolitan Pier and Exposition | 11 |
| Authority Act, plus cumulative
deficiencies in the deposits | 12 |
| required under this Section for previous
months and years, | 13 |
| shall be deposited into the McCormick Place Expansion
Project | 14 |
| Fund, until the full amount requested for the fiscal year, but | 15 |
| not
in excess of the amount specified above as "Total Deposit", | 16 |
| has been deposited.
| 17 |
| Subject to payment of amounts into the Build Illinois Fund | 18 |
| and the
McCormick
Place Expansion Project Fund
pursuant to the | 19 |
| preceding paragraphs or in any amendments thereto hereafter
| 20 |
| enacted, beginning July 1, 1993, the Department shall each | 21 |
| month pay into the
Illinois Tax Increment Fund 0.27% of 80% of | 22 |
| the net revenue realized for the
preceding month from the 6.25% | 23 |
| general rate on the selling price of tangible
personal | 24 |
| property.
| 25 |
| Subject to payment of amounts into the Build Illinois Fund | 26 |
| and the
McCormick Place Expansion Project Fund pursuant to the | 27 |
| preceding paragraphs or in any
amendments thereto hereafter | 28 |
| enacted, beginning with the receipt of the first
report of | 29 |
| taxes paid by an eligible business and continuing for a 25-year
| 30 |
| period, the Department shall each month pay into the Energy | 31 |
| Infrastructure
Fund 80% of the net revenue realized from the | 32 |
| 6.25% general rate on the
selling price of Illinois-mined coal | 33 |
| that was sold to an eligible business.
For purposes of this | 34 |
| paragraph, the term "eligible business" means a new
electric |
|
|
|
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|
| 1 |
| generating facility certified pursuant to Section 605-332 of | 2 |
| the
Department of Commerce and
Economic Opportunity
Community | 3 |
| Affairs Law of the Civil Administrative
Code of Illinois.
| 4 |
| Remaining moneys received by the Department pursuant to | 5 |
| this
Act shall be paid into the General Revenue Fund of the | 6 |
| State Treasury.
| 7 |
| The Department may, upon separate written notice to a | 8 |
| taxpayer,
require the taxpayer to prepare and file with the | 9 |
| Department on a form
prescribed by the Department within not | 10 |
| less than 60 days after receipt
of the notice an annual | 11 |
| information return for the tax year specified in
the notice. | 12 |
| Such annual return to the Department shall include a
statement | 13 |
| of gross receipts as shown by the taxpayer's last Federal | 14 |
| income
tax return. If the total receipts of the business as | 15 |
| reported in the
Federal income tax return do not agree with the | 16 |
| gross receipts reported to
the Department of Revenue for the | 17 |
| same period, the taxpayer shall attach
to his annual return a | 18 |
| schedule showing a reconciliation of the 2
amounts and the | 19 |
| reasons for the difference. The taxpayer's annual
return to the | 20 |
| Department shall also disclose the cost of goods sold by
the | 21 |
| taxpayer during the year covered by such return, opening and | 22 |
| closing
inventories of such goods for such year, cost of goods | 23 |
| used from stock
or taken from stock and given away by the | 24 |
| taxpayer during such year, pay
roll information of the | 25 |
| taxpayer's business during such year and any
additional | 26 |
| reasonable information which the Department deems would be
| 27 |
| helpful in determining the accuracy of the monthly, quarterly | 28 |
| or annual
returns filed by such taxpayer as hereinbefore | 29 |
| provided for in this
Section.
| 30 |
| If the annual information return required by this Section | 31 |
| is not
filed when and as required, the taxpayer shall be liable | 32 |
| as follows:
| 33 |
| (i) Until January 1, 1994, the taxpayer shall be liable
| 34 |
| for a penalty equal to 1/6 of 1% of the tax due from such |
|
|
|
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|
| 1 |
| taxpayer
under this Act during the period to be covered by | 2 |
| the annual return
for each month or fraction of a month | 3 |
| until such return is filed as
required, the penalty to be | 4 |
| assessed and collected in the same manner
as any other | 5 |
| penalty provided for in this Act.
| 6 |
| (ii) On and after January 1, 1994, the taxpayer shall | 7 |
| be liable for a
penalty as described in Section 3-4 of the | 8 |
| Uniform Penalty and Interest Act.
| 9 |
| The chief executive officer, proprietor, owner or highest | 10 |
| ranking
manager shall sign the annual return to certify the | 11 |
| accuracy of the
information contained therein. Any person who | 12 |
| willfully signs the
annual return containing false or | 13 |
| inaccurate information shall be guilty
of perjury and punished | 14 |
| accordingly. The annual return form prescribed
by the | 15 |
| Department shall include a warning that the person signing the
| 16 |
| return may be liable for perjury.
| 17 |
| The foregoing portion of this Section concerning the filing | 18 |
| of an
annual information return shall not apply to a serviceman | 19 |
| who is not
required to file an income tax return with the | 20 |
| United States Government.
| 21 |
| As soon as possible after the first day of each month, upon | 22 |
| certification
of the Department of Revenue, the Comptroller | 23 |
| shall order transferred and
the Treasurer shall transfer from | 24 |
| the General Revenue Fund to the Motor
Fuel Tax Fund an amount | 25 |
| equal to 1.7% of 80% of the net revenue realized
under this Act | 26 |
| for the second preceding month.
Beginning April 1, 2000, this | 27 |
| transfer is no longer required
and shall not be made.
| 28 |
| Net revenue realized for a month shall be the revenue | 29 |
| collected by the State
pursuant to this Act, less the amount | 30 |
| paid out during that month as
refunds to taxpayers for | 31 |
| overpayment of liability.
| 32 |
| For greater simplicity of administration, it shall be | 33 |
| permissible for
manufacturers, importers and wholesalers whose | 34 |
| products are sold by numerous
servicemen in Illinois, and who |
|
|
|
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|
| 1 |
| wish to do so, to
assume the responsibility for accounting and | 2 |
| paying to the Department
all tax accruing under this Act with | 3 |
| respect to such sales, if the
servicemen who are affected do | 4 |
| not make written objection to the
Department to this | 5 |
| arrangement.
| 6 |
| (Source: P.A. 92-12, eff. 7-1-01; 92-208, eff. 8-2-01; 92-492, | 7 |
| eff. 1-1-02;
92-600, eff. 6-28-02; 92-651, eff. 7-11-02; 93-24, | 8 |
| eff. 6-20-03; revised
10-15-03 .)
|
|
9 |
| Section 20-25. The Retailers' Occupation Tax Act is amended | 10 |
| by changing Sections 2-5 and 3 as follows:
| 11 |
| (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
| 12 |
| Sec. 2-5. Exemptions. Gross receipts from proceeds from the | 13 |
| sale of
the following tangible personal property are exempt | 14 |
| from the tax imposed
by this Act:
| 15 |
| (1) Farm chemicals.
| 16 |
| (2) Farm machinery and equipment, both new and used, | 17 |
| including that
manufactured on special order, certified by the | 18 |
| purchaser to be used
primarily for production agriculture or | 19 |
| State or federal agricultural
programs, including individual | 20 |
| replacement parts for the machinery and
equipment, including | 21 |
| machinery and equipment purchased for lease,
and including | 22 |
| implements of husbandry defined in Section 1-130 of
the | 23 |
| Illinois Vehicle Code, farm machinery and agricultural | 24 |
| chemical and
fertilizer spreaders, and nurse wagons required to | 25 |
| be registered
under Section 3-809 of the Illinois Vehicle Code,
| 26 |
| but
excluding other motor vehicles required to be registered | 27 |
| under the Illinois
Vehicle Code.
Horticultural polyhouses or | 28 |
| hoop houses used for propagating, growing, or
overwintering | 29 |
| plants shall be considered farm machinery and equipment under
| 30 |
| this item (2).
Agricultural chemical tender tanks and dry boxes | 31 |
| shall include units sold
separately from a motor vehicle | 32 |
| required to be licensed and units sold mounted
on a motor |
|
|
|
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| 1 |
| vehicle required to be licensed, if the selling price of the | 2 |
| tender
is separately stated.
| 3 |
| Farm machinery and equipment shall include precision | 4 |
| farming equipment
that is
installed or purchased to be | 5 |
| installed on farm machinery and equipment
including, but not | 6 |
| limited to, tractors, harvesters, sprayers, planters,
seeders, | 7 |
| or spreaders.
Precision farming equipment includes, but is not | 8 |
| limited to,
soil testing sensors, computers, monitors, | 9 |
| software, global positioning
and mapping systems, and other | 10 |
| such equipment.
| 11 |
| Farm machinery and equipment also includes computers, | 12 |
| sensors, software, and
related equipment used primarily in the
| 13 |
| computer-assisted operation of production agriculture | 14 |
| facilities, equipment,
and activities such as, but
not limited | 15 |
| to,
the collection, monitoring, and correlation of
animal and | 16 |
| crop data for the purpose of
formulating animal diets and | 17 |
| agricultural chemicals. This item (7) is exempt
from the | 18 |
| provisions of
Section 2-70.
| 19 |
| (3) Until July 1, 2003, distillation machinery and | 20 |
| equipment, sold as a
unit or kit,
assembled or installed by the | 21 |
| retailer, certified by the user to be used
only for the | 22 |
| production of ethyl alcohol that will be used for consumption
| 23 |
| as motor fuel or as a component of motor fuel for the personal | 24 |
| use of the
user, and not subject to sale or resale.
| 25 |
| (4) Until July 1, 2003 and beginning again September 1, | 26 |
| 2004 , graphic arts machinery and equipment, including
repair | 27 |
| and
replacement parts, both new and used, and including that | 28 |
| manufactured on
special order or purchased for lease, certified | 29 |
| by the purchaser to be used
primarily for graphic arts | 30 |
| production.
Equipment includes chemicals or
chemicals acting | 31 |
| as catalysts but only if
the chemicals or chemicals acting as | 32 |
| catalysts effect a direct and immediate
change upon a
graphic | 33 |
| arts product.
| 34 |
| (5) A motor vehicle of the first division, a motor vehicle |
|
|
|
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| 1 |
| of the second
division that is a self-contained motor vehicle | 2 |
| designed or permanently
converted to provide living quarters | 3 |
| for recreational, camping, or travel
use, with direct walk | 4 |
| through access to the living quarters from the
driver's seat, | 5 |
| or a motor vehicle of the second division that is of the van
| 6 |
| configuration designed for the transportation of not less than | 7 |
| 7 nor more
than 16 passengers, as defined in Section 1-146 of | 8 |
| the Illinois Vehicle
Code, that is used for automobile renting, | 9 |
| as defined in the Automobile
Renting Occupation and Use Tax | 10 |
| Act.
| 11 |
| (6) Personal property sold by a teacher-sponsored student | 12 |
| organization
affiliated with an elementary or secondary school | 13 |
| located in Illinois.
| 14 |
| (7) Until July 1, 2003, proceeds of that portion of the | 15 |
| selling price of
a passenger car the
sale of which is subject | 16 |
| to the Replacement Vehicle Tax.
| 17 |
| (8) Personal property sold to an Illinois county fair | 18 |
| association for
use in conducting, operating, or promoting the | 19 |
| county fair.
| 20 |
| (9) Personal property sold to a not-for-profit arts
or | 21 |
| cultural organization that establishes, by proof required by | 22 |
| the Department
by
rule, that it has received an exemption under | 23 |
| Section 501(c)(3) of the
Internal Revenue Code and that is | 24 |
| organized and operated primarily for the
presentation
or | 25 |
| support of arts or cultural programming, activities, or | 26 |
| services. These
organizations include, but are not limited to, | 27 |
| music and dramatic arts
organizations such as symphony | 28 |
| orchestras and theatrical groups, arts and
cultural service | 29 |
| organizations, local arts councils, visual arts organizations,
| 30 |
| and media arts organizations.
On and after the effective date | 31 |
| of this amendatory Act of the 92nd General
Assembly, however, | 32 |
| an entity otherwise eligible for this exemption shall not
make | 33 |
| tax-free purchases unless it has an active identification | 34 |
| number issued by
the Department.
|
|
|
|
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| 1 |
| (10) Personal property sold by a corporation, society, | 2 |
| association,
foundation, institution, or organization, other | 3 |
| than a limited liability
company, that is organized and | 4 |
| operated as a not-for-profit service enterprise
for the benefit | 5 |
| of persons 65 years of age or older if the personal property
| 6 |
| was not purchased by the enterprise for the purpose of resale | 7 |
| by the
enterprise.
| 8 |
| (11) Personal property sold to a governmental body, to a | 9 |
| corporation,
society, association, foundation, or institution | 10 |
| organized and operated
exclusively for charitable, religious, | 11 |
| or educational purposes, or to a
not-for-profit corporation, | 12 |
| society, association, foundation, institution,
or organization | 13 |
| that has no compensated officers or employees and that is
| 14 |
| organized and operated primarily for the recreation of persons | 15 |
| 55 years of
age or older. A limited liability company may | 16 |
| qualify for the exemption under
this paragraph only if the | 17 |
| limited liability company is organized and operated
| 18 |
| exclusively for educational purposes. On and after July 1, | 19 |
| 1987, however, no
entity otherwise eligible for this exemption | 20 |
| shall make tax-free purchases
unless it has an active | 21 |
| identification number issued by the Department.
| 22 |
| (12) Tangible personal property sold to
interstate | 23 |
| carriers
for hire for use as
rolling stock moving in interstate | 24 |
| commerce or to lessors under leases of
one year or longer | 25 |
| executed or in effect at the time of purchase by
interstate | 26 |
| carriers for hire for use as rolling stock moving in interstate
| 27 |
| commerce and equipment operated by a telecommunications | 28 |
| provider, licensed as a
common carrier by the Federal | 29 |
| Communications Commission, which is permanently
installed in | 30 |
| or affixed to aircraft moving in interstate commerce.
| 31 |
| (12-5) On and after July 1, 2003, motor vehicles of the | 32 |
| second division
with a gross vehicle weight in excess of 8,000 | 33 |
| pounds
that
are
subject to the commercial distribution fee | 34 |
| imposed under Section 3-815.1 of
the Illinois
Vehicle Code.
|
|
|
|
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| 1 |
| This
exemption applies to repair and replacement parts added
| 2 |
| after the
initial purchase of such a motor vehicle if that | 3 |
| motor vehicle is used in a
manner that
would qualify for the | 4 |
| rolling stock exemption otherwise provided for in this
Act.
| 5 |
| (13) Proceeds from sales to owners, lessors, or
shippers of
| 6 |
| tangible personal property that is utilized by interstate | 7 |
| carriers for
hire for use as rolling stock moving in interstate | 8 |
| commerce
and equipment operated by a telecommunications | 9 |
| provider, licensed as a
common carrier by the Federal | 10 |
| Communications Commission, which is
permanently installed in | 11 |
| or affixed to aircraft moving in interstate commerce.
| 12 |
| (14) Machinery and equipment that will be used by the | 13 |
| purchaser, or a
lessee of the purchaser, primarily in the | 14 |
| process of manufacturing or
assembling tangible personal | 15 |
| property for wholesale or retail sale or
lease, whether the | 16 |
| sale or lease is made directly by the manufacturer or by
some | 17 |
| other person, whether the materials used in the process are | 18 |
| owned by
the manufacturer or some other person, or whether the | 19 |
| sale or lease is made
apart from or as an incident to the | 20 |
| seller's engaging in the service
occupation of producing | 21 |
| machines, tools, dies, jigs, patterns, gauges, or
other similar | 22 |
| items of no commercial value on special order for a particular
| 23 |
| purchaser.
| 24 |
| (15) Proceeds of mandatory service charges separately | 25 |
| stated on
customers' bills for purchase and consumption of food | 26 |
| and beverages, to the
extent that the proceeds of the service | 27 |
| charge are in fact turned over as
tips or as a substitute for | 28 |
| tips to the employees who participate directly
in preparing, | 29 |
| serving, hosting or cleaning up the food or beverage function
| 30 |
| with respect to which the service charge is imposed.
| 31 |
| (16) Petroleum products sold to a purchaser if the seller
| 32 |
| is prohibited by federal law from charging tax to the | 33 |
| purchaser.
| 34 |
| (17) Tangible personal property sold to a common carrier by |
|
|
|
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| 1 |
| rail or
motor that
receives the physical possession of the | 2 |
| property in Illinois and that
transports the property, or | 3 |
| shares with another common carrier in the
transportation of the | 4 |
| property, out of Illinois on a standard uniform bill
of lading | 5 |
| showing the seller of the property as the shipper or consignor | 6 |
| of
the property to a destination outside Illinois, for use | 7 |
| outside Illinois.
| 8 |
| (18) Legal tender, currency, medallions, or gold or silver | 9 |
| coinage
issued by the State of Illinois, the government of the | 10 |
| United States of
America, or the government of any foreign | 11 |
| country, and bullion.
| 12 |
| (19) Until July 1 2003, oil field exploration, drilling, | 13 |
| and production
equipment, including
(i) rigs and parts of rigs, | 14 |
| rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | 15 |
| tubular goods, including casing and
drill strings, (iii) pumps | 16 |
| and pump-jack units, (iv) storage tanks and flow
lines, (v) any | 17 |
| individual replacement part for oil field exploration,
| 18 |
| drilling, and production equipment, and (vi) machinery and | 19 |
| equipment purchased
for lease; but
excluding motor vehicles | 20 |
| required to be registered under the Illinois
Vehicle Code.
| 21 |
| (20) Photoprocessing machinery and equipment, including | 22 |
| repair and
replacement parts, both new and used, including that | 23 |
| manufactured on
special order, certified by the purchaser to be | 24 |
| used primarily for
photoprocessing, and including | 25 |
| photoprocessing machinery and equipment
purchased for lease.
| 26 |
| (21) Until July 1, 2003, coal exploration, mining, | 27 |
| offhighway hauling,
processing,
maintenance, and reclamation | 28 |
| equipment, including
replacement parts and equipment, and | 29 |
| including
equipment purchased for lease, but excluding motor | 30 |
| vehicles required to be
registered under the Illinois Vehicle | 31 |
| Code.
| 32 |
| (22) Fuel and petroleum products sold to or used by an air | 33 |
| carrier,
certified by the carrier to be used for consumption, | 34 |
| shipment, or storage
in the conduct of its business as an air |
|
|
|
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| 1 |
| common carrier, for a flight
destined for or returning from a | 2 |
| location or locations
outside the United States without regard | 3 |
| to previous or subsequent domestic
stopovers.
| 4 |
| (23) A transaction in which the purchase order is received | 5 |
| by a florist
who is located outside Illinois, but who has a | 6 |
| florist located in Illinois
deliver the property to the | 7 |
| purchaser or the purchaser's donee in Illinois.
| 8 |
| (24) Fuel consumed or used in the operation of ships, | 9 |
| barges, or vessels
that are used primarily in or for the | 10 |
| transportation of property or the
conveyance of persons for | 11 |
| hire on rivers bordering on this State if the
fuel is delivered | 12 |
| by the seller to the purchaser's barge, ship, or vessel
while | 13 |
| it is afloat upon that bordering river.
| 14 |
| (25) A motor vehicle sold in this State to a nonresident | 15 |
| even though the
motor vehicle is delivered to the nonresident | 16 |
| in this State, if the motor
vehicle is not to be titled in this | 17 |
| State, and if a drive-away permit
is issued to the motor | 18 |
| vehicle as provided in Section 3-603 of the Illinois
Vehicle | 19 |
| Code or if the nonresident purchaser has vehicle registration
| 20 |
| plates to transfer to the motor vehicle upon returning to his | 21 |
| or her home
state. The issuance of the drive-away permit or | 22 |
| having
the
out-of-state registration plates to be transferred | 23 |
| is prima facie evidence
that the motor vehicle will not be | 24 |
| titled in this State.
| 25 |
| (26) Semen used for artificial insemination of livestock | 26 |
| for direct
agricultural production.
| 27 |
| (27) Horses, or interests in horses, registered with and | 28 |
| meeting the
requirements of any of the
Arabian Horse Club | 29 |
| Registry of America, Appaloosa Horse Club, American Quarter
| 30 |
| Horse Association, United States
Trotting Association, or | 31 |
| Jockey Club, as appropriate, used for
purposes of breeding or | 32 |
| racing for prizes.
| 33 |
| (28) Computers and communications equipment utilized for | 34 |
| any
hospital
purpose
and equipment used in the diagnosis,
|
|
|
|
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| 1 |
| analysis, or treatment of hospital patients sold to a lessor | 2 |
| who leases the
equipment, under a lease of one year or longer | 3 |
| executed or in effect at the
time of the purchase, to a
| 4 |
| hospital
that has been issued an active tax exemption | 5 |
| identification number by the
Department under Section 1g of | 6 |
| this Act.
| 7 |
| (29) Personal property sold to a lessor who leases the
| 8 |
| property, under a
lease of one year or longer executed or in | 9 |
| effect at the time of the purchase,
to a governmental body
that | 10 |
| has been issued an active tax exemption identification number | 11 |
| by the
Department under Section 1g of this Act.
| 12 |
| (30) Beginning with taxable years ending on or after | 13 |
| December
31, 1995
and
ending with taxable years ending on or | 14 |
| before December 31, 2004,
personal property that is
donated for | 15 |
| disaster relief to be used in a State or federally declared
| 16 |
| disaster area in Illinois or bordering Illinois by a | 17 |
| manufacturer or retailer
that is registered in this State to a | 18 |
| corporation, society, association,
foundation, or institution | 19 |
| that has been issued a sales tax exemption
identification | 20 |
| number by the Department that assists victims of the disaster
| 21 |
| who reside within the declared disaster area.
| 22 |
| (31) Beginning with taxable years ending on or after | 23 |
| December
31, 1995 and
ending with taxable years ending on or | 24 |
| before December 31, 2004, personal
property that is used in the | 25 |
| performance of infrastructure repairs in this
State, including | 26 |
| but not limited to municipal roads and streets, access roads,
| 27 |
| bridges, sidewalks, waste disposal systems, water and sewer | 28 |
| line extensions,
water distribution and purification | 29 |
| facilities, storm water drainage and
retention facilities, and | 30 |
| sewage treatment facilities, resulting from a State
or | 31 |
| federally declared disaster in Illinois or bordering Illinois | 32 |
| when such
repairs are initiated on facilities located in the | 33 |
| declared disaster area
within 6 months after the disaster.
| 34 |
| (32) Beginning July 1, 1999, game or game birds sold at a |
|
|
|
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| 1 |
| "game breeding
and
hunting preserve area" or an "exotic game | 2 |
| hunting area" as those terms are used
in the
Wildlife Code or | 3 |
| at a hunting enclosure approved through rules adopted by the
| 4 |
| Department of Natural Resources. This paragraph is exempt from | 5 |
| the provisions
of
Section 2-70.
| 6 |
| (33) A motor vehicle, as that term is defined in Section | 7 |
| 1-146
of the
Illinois Vehicle Code, that is donated to a | 8 |
| corporation, limited liability
company, society, association, | 9 |
| foundation, or institution that is determined by
the Department | 10 |
| to be organized and operated exclusively for educational
| 11 |
| purposes. For purposes of this exemption, "a corporation, | 12 |
| limited liability
company, society, association, foundation, | 13 |
| or institution organized and
operated
exclusively for | 14 |
| educational purposes" means all tax-supported public schools,
| 15 |
| private schools that offer systematic instruction in useful | 16 |
| branches of
learning by methods common to public schools and | 17 |
| that compare favorably in
their scope and intensity with the | 18 |
| course of study presented in tax-supported
schools, and | 19 |
| vocational or technical schools or institutes organized and
| 20 |
| operated exclusively to provide a course of study of not less | 21 |
| than 6 weeks
duration and designed to prepare individuals to | 22 |
| follow a trade or to pursue a
manual, technical, mechanical, | 23 |
| industrial, business, or commercial
occupation.
| 24 |
| (34) Beginning January 1, 2000, personal property, | 25 |
| including food, purchased
through fundraising events for the | 26 |
| benefit of a public or private elementary or
secondary school, | 27 |
| a group of those schools, or one or more school districts if
| 28 |
| the events are sponsored by an entity recognized by the school | 29 |
| district that
consists primarily of volunteers and includes | 30 |
| parents and teachers of the
school children. This paragraph | 31 |
| does not apply to fundraising events (i) for
the benefit of | 32 |
| private home instruction or (ii) for which the fundraising
| 33 |
| entity purchases the personal property sold at the events from | 34 |
| another
individual or entity that sold the property for the |
|
|
|
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| 1 |
| purpose of resale by the
fundraising entity and that profits | 2 |
| from the sale to the fundraising entity.
This paragraph is | 3 |
| exempt from the provisions of Section 2-70.
| 4 |
| (35) Beginning January 1, 2000 and through December 31, | 5 |
| 2001, new or used
automatic vending machines that prepare and | 6 |
| serve hot food and beverages,
including coffee, soup, and other | 7 |
| items, and replacement parts for these
machines. Beginning | 8 |
| January 1, 2002 and through June 30, 2003, machines
and parts | 9 |
| for machines used in
commercial, coin-operated amusement and | 10 |
| vending business if a use or occupation
tax is paid on the | 11 |
| gross receipts derived from the use of the commercial,
| 12 |
| coin-operated amusement and vending machines. This paragraph | 13 |
| is exempt from
the provisions of Section 2-70.
| 14 |
| (35-5) Food for human consumption that is to be consumed | 15 |
| off
the premises where it is sold (other than alcoholic | 16 |
| beverages, soft drinks,
and food that has been prepared for | 17 |
| immediate consumption) and prescription
and nonprescription | 18 |
| medicines, drugs, medical appliances, and insulin, urine
| 19 |
| testing materials, syringes, and needles used by diabetics, for | 20 |
| human use, when
purchased for use by a person receiving medical | 21 |
| assistance under Article 5 of
the Illinois Public Aid Code who | 22 |
| resides in a licensed long-term care facility,
as defined in | 23 |
| the Nursing Home Care Act.
| 24 |
| (36) Beginning August 2, 2001, computers and | 25 |
| communications equipment
utilized for any hospital purpose and | 26 |
| equipment used in the diagnosis,
analysis, or treatment of | 27 |
| hospital patients sold to a lessor who leases the
equipment, | 28 |
| under a lease of one year or longer executed or in effect at | 29 |
| the
time of the purchase, to a hospital that has been issued an | 30 |
| active tax
exemption identification number by the Department | 31 |
| under Section 1g of this Act.
This paragraph is exempt from the | 32 |
| provisions of Section 2-70.
| 33 |
| (37) Beginning August 2, 2001, personal property sold to a | 34 |
| lessor who
leases the property, under a lease of one year or |
|
|
|
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|
| 1 |
| longer executed or in effect
at the time of the purchase, to a | 2 |
| governmental body that has been issued an
active tax exemption | 3 |
| identification number by the Department under Section 1g
of | 4 |
| this Act. This paragraph is exempt from the provisions of | 5 |
| Section 2-70.
| 6 |
| (38) Beginning on January 1, 2002, tangible personal | 7 |
| property purchased
from an Illinois retailer by a taxpayer | 8 |
| engaged in centralized purchasing
activities in Illinois who | 9 |
| will, upon receipt of the property in Illinois,
temporarily | 10 |
| store the property in Illinois (i) for the purpose of | 11 |
| subsequently
transporting it outside this State for use or | 12 |
| consumption thereafter solely
outside this State or (ii) for | 13 |
| the purpose of being processed, fabricated, or
manufactured | 14 |
| into, attached to, or incorporated into other tangible personal
| 15 |
| property to be transported outside this State and thereafter | 16 |
| used or consumed
solely outside this State. The Director of | 17 |
| Revenue shall, pursuant to rules
adopted in accordance with the | 18 |
| Illinois Administrative Procedure Act, issue a
permit to any | 19 |
| taxpayer in good standing with the Department who is eligible | 20 |
| for
the exemption under this paragraph (38). The permit issued | 21 |
| under
this paragraph (38) shall authorize the holder, to the | 22 |
| extent and
in the manner specified in the rules adopted under | 23 |
| this Act, to purchase
tangible personal property from a | 24 |
| retailer exempt from the taxes imposed by
this Act. Taxpayers | 25 |
| shall maintain all necessary books and records to
substantiate | 26 |
| the use and consumption of all such tangible personal property
| 27 |
| outside of the State of Illinois.
| 28 |
| (Source: P.A. 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227, | 29 |
| eff. 8-2-01;
92-337, eff.
8-10-01; 92-484, eff. 8-23-01; | 30 |
| 92-488, eff. 8-23-01; 92-651, eff. 7-11-02;
92-680, eff. | 31 |
| 7-16-02; 93-23, eff. 6-20-03; 93-24, eff.
6-20-03; revised | 32 |
| 9-11-03.)
| 33 |
| (35 ILCS 120/3) (from Ch. 120, par. 442)
|
|
|
|
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|
| 1 |
| Sec. 3. Except as provided in this Section, on or before | 2 |
| the twentieth
day of each calendar month, every person engaged | 3 |
| in the business of
selling tangible personal property at retail | 4 |
| in this State during the
preceding calendar month shall file a | 5 |
| return with the Department, stating:
| 6 |
| 1. The name of the seller;
| 7 |
| 2. His residence address and the address of his | 8 |
| principal place of
business and the address of the | 9 |
| principal place of business (if that is
a different | 10 |
| address) from which he engages in the business of selling
| 11 |
| tangible personal property at retail in this State;
| 12 |
| 3. Total amount of receipts received by him during the | 13 |
| preceding
calendar month or quarter, as the case may be, | 14 |
| from sales of tangible
personal property, and from services | 15 |
| furnished, by him during such
preceding calendar month or | 16 |
| quarter;
| 17 |
| 4. Total amount received by him during the preceding | 18 |
| calendar month or
quarter on charge and time sales of | 19 |
| tangible personal property, and from
services furnished, | 20 |
| by him prior to the month or quarter for which the return
| 21 |
| is filed;
| 22 |
| 5. Deductions allowed by law;
| 23 |
| 6. Gross receipts which were received by him during the | 24 |
| preceding
calendar month or quarter and upon the basis of | 25 |
| which the tax is imposed;
| 26 |
| 7. The amount of credit provided in Section 2d of this | 27 |
| Act;
| 28 |
| 8. The amount of tax due;
| 29 |
| 9. The signature of the taxpayer; and
| 30 |
| 10. Such other reasonable information as the | 31 |
| Department may require.
| 32 |
| If a taxpayer fails to sign a return within 30 days after | 33 |
| the proper notice
and demand for signature by the Department, | 34 |
| the return shall be considered
valid and any amount shown to be |
|
|
|
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|
| 1 |
| due on the return shall be deemed assessed.
| 2 |
| Each return shall be accompanied by the statement of | 3 |
| prepaid tax issued
pursuant to Section 2e for which credit is | 4 |
| claimed.
| 5 |
| Prior to October 1, 2003, and on and after September 1, | 6 |
| 2004 a retailer may accept a Manufacturer's Purchase
Credit
| 7 |
| certification from a purchaser in satisfaction of Use Tax
as | 8 |
| provided in Section 3-85 of the Use Tax Act if the purchaser | 9 |
| provides the
appropriate documentation as required by Section | 10 |
| 3-85
of the Use Tax Act. A Manufacturer's Purchase Credit
| 11 |
| certification, accepted by a retailer prior to October 1, 2003 | 12 |
| and on and after September 1, 2004 as provided
in
Section 3-85 | 13 |
| of the Use Tax Act, may be used by that retailer to
satisfy | 14 |
| Retailers' Occupation Tax liability in the amount claimed in
| 15 |
| the certification, not to exceed 6.25% of the receipts
subject | 16 |
| to tax from a qualifying purchase. A Manufacturer's Purchase | 17 |
| Credit
reported on any original or amended return
filed under
| 18 |
| this Act after October 20, 2003 for reporting periods prior to | 19 |
| September 1, 2004 shall be disallowed. Manufacturer's | 20 |
| Purchaser Credit reported on annual returns due on or after | 21 |
| January 1, 2005 will be disallowed for periods prior to | 22 |
| September 1, 2004. No Manufacturer's
Purchase Credit may be | 23 |
| used after September 30, 2003 through August 31, 2004 to
| 24 |
| satisfy any
tax liability imposed under this Act, including any | 25 |
| audit liability.
| 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 |
|
|
|
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|
| 1 |
| which he engages
in the business of selling tangible | 2 |
| personal property at retail in this State;
| 3 |
| 3. The total amount of taxable receipts received by him | 4 |
| during the
preceding calendar month from sales of tangible | 5 |
| personal property by him
during such preceding calendar | 6 |
| month, including receipts from charge and
time sales, but | 7 |
| less all deductions allowed by law;
| 8 |
| 4. The amount of credit provided in Section 2d of this | 9 |
| Act;
| 10 |
| 5. The amount of tax due; and
| 11 |
| 6. Such other reasonable information as the Department | 12 |
| may
require.
| 13 |
| Beginning on October 1, 2003, any person who is not a | 14 |
| licensed
distributor, importing distributor, or manufacturer, | 15 |
| as defined in the Liquor
Control Act of 1934, but is engaged in | 16 |
| the business of
selling, at retail, alcoholic liquor
shall file | 17 |
| a statement with the Department of Revenue, in a format
and at | 18 |
| a time prescribed by the Department, showing the total amount | 19 |
| paid for
alcoholic liquor purchased during the preceding month | 20 |
| and such other
information as is reasonably required by the | 21 |
| Department.
The Department may adopt rules to require
that this | 22 |
| statement be filed in an electronic or telephonic format. Such | 23 |
| rules
may provide for exceptions from the filing requirements | 24 |
| of this paragraph. For
the
purposes of this
paragraph, the term | 25 |
| "alcoholic liquor" shall have the meaning prescribed in the
| 26 |
| Liquor Control Act of 1934.
| 27 |
| Beginning on October 1, 2003, every distributor, importing | 28 |
| distributor, and
manufacturer of alcoholic liquor as defined in | 29 |
| the Liquor Control Act of 1934,
shall file a
statement with the | 30 |
| Department of Revenue, no later than the 10th day of the
month | 31 |
| for the
preceding month during which transactions occurred, by | 32 |
| electronic means,
showing the
total amount of gross receipts | 33 |
| from the sale of alcoholic liquor sold or
distributed during
| 34 |
| the preceding month to purchasers; identifying the purchaser to |
|
|
|
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|
| 1 |
| whom it was
sold or
distributed; the purchaser's tax | 2 |
| registration number; and such other
information
reasonably | 3 |
| required by the Department. A copy of the monthly statement | 4 |
| shall be
sent to
the retailer no later than the 10th day of the | 5 |
| month for the preceding month
during which
transactions | 6 |
| occurred.
| 7 |
| If a total amount of less than $1 is payable, refundable or | 8 |
| creditable,
such amount shall be disregarded if it is less than | 9 |
| 50 cents and shall be
increased to $1 if it is 50 cents or more.
| 10 |
| Beginning October 1, 1993,
a taxpayer who has an average | 11 |
| monthly tax liability of $150,000 or more shall
make all | 12 |
| payments required by rules of the
Department by electronic | 13 |
| funds transfer. Beginning October 1, 1994, a taxpayer
who has | 14 |
| an average monthly tax liability of $100,000 or more shall make | 15 |
| all
payments required by rules of the Department by electronic | 16 |
| funds transfer.
Beginning October 1, 1995, a taxpayer who has | 17 |
| an average monthly tax liability
of $50,000 or more shall make | 18 |
| all
payments required by rules of the Department by electronic | 19 |
| funds transfer.
Beginning October 1, 2000, a taxpayer who has | 20 |
| an annual tax liability of
$200,000 or more shall make all | 21 |
| payments required by rules of the Department by
electronic | 22 |
| funds transfer. The term "annual tax liability" shall be the | 23 |
| sum of
the taxpayer's liabilities under this Act, and under all | 24 |
| other State and local
occupation and use tax laws administered | 25 |
| by the Department, for the immediately
preceding calendar year.
| 26 |
| The term "average monthly tax liability" shall be the sum of | 27 |
| the
taxpayer's liabilities under this
Act, and under all other | 28 |
| State and local occupation and use tax
laws administered by the | 29 |
| Department, for the immediately preceding calendar
year | 30 |
| divided by 12.
Beginning on October 1, 2002, a taxpayer who has | 31 |
| a tax liability in the
amount set forth in subsection (b) of | 32 |
| Section 2505-210 of the Department of
Revenue Law shall make | 33 |
| all payments required by rules of the Department by
electronic | 34 |
| funds transfer.
|
|
|
|
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|
| 1 |
| Before August 1 of each year beginning in 1993, the | 2 |
| Department shall
notify all taxpayers required to make payments | 3 |
| by electronic funds
transfer. All taxpayers
required to make | 4 |
| payments by electronic funds transfer shall make those
payments | 5 |
| for
a minimum of one year beginning on October 1.
| 6 |
| Any taxpayer not required to make payments by electronic | 7 |
| funds transfer may
make payments by electronic funds transfer | 8 |
| with
the permission of the Department.
| 9 |
| All taxpayers required to make payment by electronic funds | 10 |
| transfer and
any taxpayers authorized to voluntarily make | 11 |
| payments by electronic funds
transfer shall make those payments | 12 |
| in the manner authorized by the Department.
| 13 |
| The Department shall adopt such rules as are necessary to | 14 |
| effectuate a
program of electronic funds transfer and the | 15 |
| requirements of this Section.
| 16 |
| Any amount which is required to be shown or reported on any | 17 |
| return or
other document under this Act shall, if such amount | 18 |
| is not a whole-dollar
amount, be increased to the nearest | 19 |
| whole-dollar amount in any case where
the fractional part of a | 20 |
| dollar is 50 cents or more, and decreased to the
nearest | 21 |
| whole-dollar amount where the fractional part of a dollar is | 22 |
| less
than 50 cents.
| 23 |
| If the retailer is otherwise required to file a monthly | 24 |
| return and if the
retailer's average monthly tax liability to | 25 |
| the Department does not exceed
$200, the Department may | 26 |
| authorize his returns to be filed on a quarter
annual basis, | 27 |
| with the return for January, February and March of a given
year | 28 |
| being due by April 20 of such year; with the return for April, | 29 |
| May and
June of a given year being due by July 20 of such year; | 30 |
| with the return for
July, August and September of a given year | 31 |
| being due by October 20 of such
year, and with the return for | 32 |
| October, November and December of a given
year being due by | 33 |
| January 20 of the following year.
| 34 |
| If the retailer is otherwise required to file a monthly or |
|
|
|
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|
| 1 |
| quarterly
return and if the retailer's average monthly tax | 2 |
| liability with the
Department does not exceed $50, the | 3 |
| Department may authorize his returns to
be filed on an annual | 4 |
| basis, with the return for a given year being due by
January 20 | 5 |
| of the following year.
| 6 |
| Such quarter annual and annual returns, as to form and | 7 |
| substance,
shall be subject to the same requirements as monthly | 8 |
| returns.
| 9 |
| Notwithstanding any other provision in this Act concerning | 10 |
| the time
within which a retailer may file his return, in the | 11 |
| case of any retailer
who ceases to engage in a kind of business | 12 |
| which makes him responsible
for filing returns under this Act, | 13 |
| such retailer shall file a final
return under this Act with the | 14 |
| Department not more than one month after
discontinuing such | 15 |
| business.
| 16 |
| Where the same person has more than one business registered | 17 |
| with the
Department under separate registrations under this | 18 |
| Act, such person may
not file each return that is due as a | 19 |
| single return covering all such
registered businesses, but | 20 |
| shall file separate returns for each such
registered business.
| 21 |
| In addition, with respect to motor vehicles, watercraft,
| 22 |
| aircraft, and trailers that are required to be registered with | 23 |
| an agency of
this State, every
retailer selling this kind of | 24 |
| tangible personal property shall file,
with the Department, | 25 |
| upon a form to be prescribed and supplied by the
Department, a | 26 |
| separate return for each such item of tangible personal
| 27 |
| property which the retailer sells, except that if, in the same
| 28 |
| transaction, (i) a retailer of aircraft, watercraft, motor | 29 |
| vehicles or
trailers transfers more than one aircraft, | 30 |
| watercraft, motor
vehicle or trailer to another aircraft, | 31 |
| watercraft, motor vehicle
retailer or trailer retailer for the | 32 |
| purpose of resale
or (ii) a retailer of aircraft, watercraft, | 33 |
| motor vehicles, or trailers
transfers more than one aircraft, | 34 |
| watercraft, motor vehicle, or trailer to a
purchaser for use as |
|
|
|
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| 1 |
| a qualifying rolling stock as provided in Section 2-5 of
this | 2 |
| Act, then
that seller may report the transfer of all aircraft,
| 3 |
| watercraft, motor vehicles or trailers involved in that | 4 |
| transaction to the
Department on the same uniform | 5 |
| invoice-transaction reporting return form. For
purposes of | 6 |
| this Section, "watercraft" means a Class 2, Class 3, or Class 4
| 7 |
| watercraft as defined in Section 3-2 of the Boat Registration | 8 |
| and Safety Act, a
personal watercraft, or any boat equipped | 9 |
| with an inboard motor.
| 10 |
| Any retailer who sells only motor vehicles, watercraft,
| 11 |
| aircraft, or trailers that are required to be registered with | 12 |
| an agency of
this State, so that all
retailers' occupation tax | 13 |
| liability is required to be reported, and is
reported, on such | 14 |
| transaction reporting returns and who is not otherwise
required | 15 |
| to file monthly or quarterly returns, need not file monthly or
| 16 |
| quarterly returns. However, those retailers shall be required | 17 |
| to
file returns on an annual basis.
| 18 |
| The transaction reporting return, in the case of motor | 19 |
| vehicles
or trailers that are required to be registered with an | 20 |
| agency of this
State, shall
be the same document as the Uniform | 21 |
| Invoice referred to in Section 5-402
of The Illinois Vehicle | 22 |
| Code and must show the name and address of the
seller; the name | 23 |
| and address of the purchaser; the amount of the selling
price | 24 |
| including the amount allowed by the retailer for traded-in
| 25 |
| property, if any; the amount allowed by the retailer for the | 26 |
| traded-in
tangible personal property, if any, to the extent to | 27 |
| which Section 1 of
this Act allows an exemption for the value | 28 |
| of traded-in property; the
balance payable after deducting such | 29 |
| trade-in allowance from the total
selling price; the amount of | 30 |
| tax due from the retailer with respect to
such transaction; the | 31 |
| amount of tax collected from the purchaser by the
retailer on | 32 |
| such transaction (or satisfactory evidence that such tax is
not | 33 |
| due in that particular instance, if that is claimed to be the | 34 |
| fact);
the place and date of the sale; a sufficient |
|
|
|
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|
| 1 |
| identification of the
property sold; such other information as | 2 |
| is required in Section 5-402 of
The Illinois Vehicle Code, and | 3 |
| such other information as the Department
may reasonably | 4 |
| require.
| 5 |
| The transaction reporting return in the case of watercraft
| 6 |
| or aircraft must show
the name and address of the seller; the | 7 |
| name and address of the
purchaser; the amount of the selling | 8 |
| price including the amount allowed
by the retailer for | 9 |
| traded-in property, if any; the amount allowed by
the retailer | 10 |
| for the traded-in tangible personal property, if any, to
the | 11 |
| extent to which Section 1 of this Act allows an exemption for | 12 |
| the
value of traded-in property; the balance payable after | 13 |
| deducting such
trade-in allowance from the total selling price; | 14 |
| the amount of tax due
from the retailer with respect to such | 15 |
| transaction; the amount of tax
collected from the purchaser by | 16 |
| the retailer on such transaction (or
satisfactory evidence that | 17 |
| such tax is not due in that particular
instance, if that is | 18 |
| claimed to be the fact); the place and date of the
sale, a | 19 |
| sufficient identification of the property sold, and such other
| 20 |
| information as the Department may reasonably require.
| 21 |
| Such transaction reporting return shall be filed not later | 22 |
| than 20
days after the day of delivery of the item that is | 23 |
| being sold, but may
be filed by the retailer at any time sooner | 24 |
| than that if he chooses to
do so. The transaction reporting | 25 |
| return and tax remittance or proof of
exemption from the | 26 |
| Illinois use tax may be transmitted to the Department
by way of | 27 |
| the State agency with which, or State officer with whom the
| 28 |
| tangible personal property must be titled or registered (if | 29 |
| titling or
registration is required) if the Department and such | 30 |
| agency or State
officer determine that this procedure will | 31 |
| expedite the processing of
applications for title or | 32 |
| registration.
| 33 |
| With each such transaction reporting return, the retailer | 34 |
| shall remit
the proper amount of tax due (or shall submit |
|
|
|
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|
| 1 |
| satisfactory evidence that
the sale is not taxable if that is | 2 |
| the case), to the Department or its
agents, whereupon the | 3 |
| Department shall issue, in the purchaser's name, a
use tax | 4 |
| receipt (or a certificate of exemption if the Department is
| 5 |
| satisfied that the particular sale is tax exempt) which such | 6 |
| purchaser
may submit to the agency with which, or State officer | 7 |
| with whom, he must
title or register the tangible personal | 8 |
| property that is involved (if
titling or registration is | 9 |
| required) in support of such purchaser's
application for an | 10 |
| Illinois certificate or other evidence of title or
registration | 11 |
| to such tangible personal property.
| 12 |
| No retailer's failure or refusal to remit tax under this | 13 |
| Act
precludes a user, who has paid the proper tax to the | 14 |
| retailer, from
obtaining his certificate of title or other | 15 |
| evidence of title or
registration (if titling or registration | 16 |
| is required) upon satisfying
the Department that such user has | 17 |
| paid the proper tax (if tax is due) to
the retailer. The | 18 |
| Department shall adopt appropriate rules to carry out
the | 19 |
| mandate of this paragraph.
| 20 |
| If the user who would otherwise pay tax to the retailer | 21 |
| wants the
transaction reporting return filed and the payment of | 22 |
| the tax or proof
of exemption made to the Department before the | 23 |
| retailer is willing to
take these actions and such user has not | 24 |
| paid the tax to the retailer,
such user may certify to the fact | 25 |
| of such delay by the retailer and may
(upon the Department | 26 |
| being satisfied of the truth of such certification)
transmit | 27 |
| the information required by the transaction reporting return
| 28 |
| and the remittance for tax or proof of exemption directly to | 29 |
| the
Department and obtain his tax receipt or exemption | 30 |
| determination, in
which event the transaction reporting return | 31 |
| and tax remittance (if a
tax payment was required) shall be | 32 |
| credited by the Department to the
proper retailer's account | 33 |
| with the Department, but without the 2.1% or 1.75%
discount | 34 |
| provided for in this Section being allowed. When the user pays
|
|
|
|
09300SB2207ham002 |
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|
| 1 |
| the tax directly to the Department, he shall pay the tax in the | 2 |
| same
amount and in the same form in which it would be remitted | 3 |
| if the tax had
been remitted to the Department by the retailer.
| 4 |
| Refunds made by the seller during the preceding return | 5 |
| period to
purchasers, on account of tangible personal property | 6 |
| returned to the
seller, shall be allowed as a deduction under | 7 |
| subdivision 5 of his monthly
or quarterly return, as the case | 8 |
| may be, in case the
seller had theretofore included the | 9 |
| receipts from the sale of such
tangible personal property in a | 10 |
| return filed by him and had paid the tax
imposed by this Act | 11 |
| with respect to such receipts.
| 12 |
| Where the seller is a corporation, the return filed on | 13 |
| behalf of such
corporation shall be signed by the president, | 14 |
| vice-president, secretary
or treasurer or by the properly | 15 |
| accredited agent of such corporation.
| 16 |
| Where the seller is a limited liability company, the return | 17 |
| filed on behalf
of the limited liability company shall be | 18 |
| signed by a manager, member, or
properly accredited agent of | 19 |
| the limited liability company.
| 20 |
| Except as provided in this Section, the retailer filing the | 21 |
| return
under this Section shall, at the time of filing such | 22 |
| return, pay to the
Department the amount of tax imposed by this | 23 |
| Act less a discount of 2.1%
prior to January 1, 1990 and 1.75% | 24 |
| on and after January 1, 1990, or $5 per
calendar year, | 25 |
| whichever is greater, which is allowed to
reimburse the | 26 |
| retailer for the expenses incurred in keeping records,
| 27 |
| preparing and filing returns, remitting the tax and supplying | 28 |
| data to
the Department on request. Any prepayment made pursuant | 29 |
| to Section 2d
of this Act shall be included in the amount on | 30 |
| which such
2.1% or 1.75% discount is computed. In the case of | 31 |
| retailers who report
and pay the tax on a transaction by | 32 |
| transaction basis, as provided in this
Section, such discount | 33 |
| shall be taken with each such tax remittance
instead of when | 34 |
| such retailer files his periodic return.
|
|
|
|
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|
| 1 |
| Before October 1, 2000, if the taxpayer's average monthly | 2 |
| tax liability
to the Department
under this Act, the Use Tax | 3 |
| Act, the Service Occupation Tax
Act, and the Service Use Tax | 4 |
| Act, excluding any liability for prepaid sales
tax to be | 5 |
| remitted in accordance with Section 2d of this Act, was
$10,000
| 6 |
| or more during the preceding 4 complete calendar quarters, he | 7 |
| shall file a
return with the Department each month by the 20th | 8 |
| day of the month next
following the month during which such tax | 9 |
| liability is incurred and shall
make payments to the Department | 10 |
| on or before the 7th, 15th, 22nd and last
day of the month | 11 |
| during which such liability is incurred.
On and after October | 12 |
| 1, 2000, if the taxpayer's average monthly tax liability
to the | 13 |
| Department under this Act, the Use Tax Act, the Service | 14 |
| Occupation Tax
Act, and the Service Use Tax Act, excluding any | 15 |
| liability for prepaid sales tax
to be remitted in accordance | 16 |
| with Section 2d of this Act, was $20,000 or more
during the | 17 |
| preceding 4 complete calendar quarters, he shall file a return | 18 |
| with
the Department each month by the 20th day of the month | 19 |
| next following the month
during which such tax liability is | 20 |
| incurred and shall make payment to the
Department on or before | 21 |
| the 7th, 15th, 22nd and last day of the month during
which such | 22 |
| liability is incurred.
If the month
during which such tax | 23 |
| liability is incurred began prior to January 1, 1985,
each | 24 |
| payment shall be in an amount equal to 1/4 of the taxpayer's | 25 |
| actual
liability for the month or an amount set by the | 26 |
| Department not to exceed
1/4 of the average monthly liability | 27 |
| of the taxpayer to the Department for
the preceding 4 complete | 28 |
| calendar quarters (excluding the month of highest
liability and | 29 |
| the month of lowest liability in such 4 quarter period). If
the | 30 |
| month during which such tax liability is incurred begins on or | 31 |
| after
January 1, 1985 and prior to January 1, 1987, each | 32 |
| payment shall be in an
amount equal to 22.5% of the taxpayer's | 33 |
| actual liability for the month or
27.5% of the taxpayer's | 34 |
| liability for the same calendar
month of the preceding year. If |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| the month during which such tax
liability is incurred begins on | 2 |
| or after January 1, 1987 and prior to
January 1, 1988, each | 3 |
| payment shall be in an amount equal to 22.5% of the
taxpayer's | 4 |
| actual liability for the month or 26.25% of the taxpayer's
| 5 |
| liability for the same calendar month of the preceding year. If | 6 |
| the month
during which such tax liability is incurred begins on | 7 |
| or after January 1,
1988, and prior to January 1, 1989, or | 8 |
| begins on or after January 1, 1996, each
payment shall be in an | 9 |
| amount
equal to 22.5% of the taxpayer's actual liability for | 10 |
| the month or 25% of
the taxpayer's liability for the same | 11 |
| calendar month of the preceding year. If
the month during which | 12 |
| such tax liability is incurred begins on or after
January 1, | 13 |
| 1989, and prior to January 1, 1996, each payment shall be in an
| 14 |
| amount equal to 22.5% of the
taxpayer's actual liability for | 15 |
| the month or 25% of the taxpayer's
liability for the same | 16 |
| calendar month of the preceding year or 100% of the
taxpayer's | 17 |
| actual liability for the quarter monthly reporting period. The
| 18 |
| amount of such quarter monthly payments shall be credited | 19 |
| against
the final tax liability of the taxpayer's return for | 20 |
| that month. Before
October 1, 2000, once
applicable, the | 21 |
| requirement of the making of quarter monthly payments to
the | 22 |
| Department by taxpayers having an average monthly tax liability | 23 |
| of
$10,000 or more as determined in the manner provided above
| 24 |
| shall continue
until such taxpayer's average monthly liability | 25 |
| to the Department during
the preceding 4 complete calendar | 26 |
| quarters (excluding the month of highest
liability and the | 27 |
| month of lowest liability) is less than
$9,000, or until
such | 28 |
| taxpayer's average monthly liability to the Department as | 29 |
| computed for
each calendar quarter of the 4 preceding complete | 30 |
| calendar quarter period
is less than $10,000. However, if a | 31 |
| taxpayer can show the
Department that
a substantial change in | 32 |
| the taxpayer's business has occurred which causes
the taxpayer | 33 |
| to anticipate that his average monthly tax liability for the
| 34 |
| reasonably foreseeable future will fall below the $10,000 |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| threshold
stated above, then
such taxpayer
may petition the | 2 |
| Department for a change in such taxpayer's reporting
status. On | 3 |
| and after October 1, 2000, once applicable, the requirement of
| 4 |
| the making of quarter monthly payments to the Department by | 5 |
| taxpayers having an
average monthly tax liability of $20,000 or | 6 |
| more as determined in the manner
provided above shall continue | 7 |
| until such taxpayer's average monthly liability
to the | 8 |
| Department during the preceding 4 complete calendar quarters | 9 |
| (excluding
the month of highest liability and the month of | 10 |
| lowest liability) is less than
$19,000 or until such taxpayer's | 11 |
| average monthly liability to the Department as
computed for | 12 |
| each calendar quarter of the 4 preceding complete calendar | 13 |
| quarter
period is less than $20,000. However, if a taxpayer can | 14 |
| show the Department
that a substantial change in the taxpayer's | 15 |
| business has occurred which causes
the taxpayer to anticipate | 16 |
| that his average monthly tax liability for the
reasonably | 17 |
| foreseeable future will fall below the $20,000 threshold stated
| 18 |
| above, then such taxpayer may petition the Department for a | 19 |
| change in such
taxpayer's reporting status. The Department | 20 |
| shall change such taxpayer's
reporting status
unless it finds | 21 |
| that such change is seasonal in nature and not likely to be
| 22 |
| long term. If any such quarter monthly payment is not paid at | 23 |
| the time or
in the amount required by this Section, then the | 24 |
| taxpayer shall be liable for
penalties and interest on the | 25 |
| difference
between the minimum amount due as a payment and the | 26 |
| amount of such quarter
monthly payment actually and timely | 27 |
| paid, except insofar as the
taxpayer has previously made | 28 |
| payments for that month to the Department in
excess of the | 29 |
| minimum payments previously due as provided in this Section.
| 30 |
| The Department shall make reasonable rules and regulations to | 31 |
| govern the
quarter monthly payment amount and quarter monthly | 32 |
| payment dates for
taxpayers who file on other than a calendar | 33 |
| monthly basis.
| 34 |
| The provisions of this paragraph apply before October 1, |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| 2001.
Without regard to whether a taxpayer is required to make | 2 |
| quarter monthly
payments as specified above, any taxpayer who | 3 |
| is required by Section 2d
of this Act to collect and remit | 4 |
| prepaid taxes and has collected prepaid
taxes which average in | 5 |
| excess of $25,000 per month during the preceding
2 complete | 6 |
| calendar quarters, shall file a return with the Department as
| 7 |
| required by Section 2f and shall make payments to the | 8 |
| Department on or before
the 7th, 15th, 22nd and last day of the | 9 |
| month during which such liability
is incurred. If the month | 10 |
| during which such tax liability is incurred
began prior to the | 11 |
| effective date of this amendatory Act of 1985, each
payment | 12 |
| shall be in an amount not less than 22.5% of the taxpayer's | 13 |
| actual
liability under Section 2d. If the month during which | 14 |
| such tax liability
is incurred begins on or after January 1, | 15 |
| 1986, each payment shall be in an
amount equal to 22.5% of the | 16 |
| taxpayer's actual liability for the month or
27.5% of the | 17 |
| taxpayer's liability for the same calendar month of the
| 18 |
| preceding calendar year. If the month during which such tax | 19 |
| liability is
incurred begins on or after January 1, 1987, 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. | 23 |
| The amount of such quarter monthly payments shall be
credited | 24 |
| against the final tax liability of the taxpayer's return for | 25 |
| that
month filed under this Section or Section 2f, as the case | 26 |
| may be. Once
applicable, the requirement of the making of | 27 |
| quarter monthly payments to
the Department pursuant to this | 28 |
| paragraph shall continue until such
taxpayer's average monthly | 29 |
| prepaid tax collections during the preceding 2
complete | 30 |
| calendar quarters is $25,000 or less. If any such quarter | 31 |
| monthly
payment is not paid at the time or in the amount | 32 |
| required, the taxpayer
shall be liable for penalties and | 33 |
| interest on such difference, except
insofar as the taxpayer has | 34 |
| previously made payments for that month in
excess of the |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| minimum payments previously due.
| 2 |
| The provisions of this paragraph apply on and after October | 3 |
| 1, 2001.
Without regard to whether a taxpayer is required to | 4 |
| make quarter monthly
payments as specified above, any taxpayer | 5 |
| who is required by Section 2d of this
Act to collect and remit | 6 |
| prepaid taxes and has collected prepaid taxes that
average in | 7 |
| excess of $20,000 per month during the preceding 4 complete | 8 |
| calendar
quarters shall file a return with the Department as | 9 |
| required by Section 2f
and shall make payments to the | 10 |
| Department on or before the 7th, 15th, 22nd and
last day of the | 11 |
| month during which the liability is incurred. Each payment
| 12 |
| shall be in an amount equal to 22.5% of the taxpayer's actual | 13 |
| liability for the
month or 25% of the taxpayer's liability for | 14 |
| the same calendar month of the
preceding year. The amount of | 15 |
| the quarter monthly payments shall be credited
against the | 16 |
| final tax liability of the taxpayer's return for that month | 17 |
| filed
under this Section or Section 2f, as the case may be. | 18 |
| Once applicable, the
requirement of the making of quarter | 19 |
| monthly payments to the Department
pursuant to this paragraph | 20 |
| shall continue until the taxpayer's average monthly
prepaid tax | 21 |
| collections during the preceding 4 complete calendar quarters
| 22 |
| (excluding the month of highest liability and the month of | 23 |
| lowest liability) is
less than $19,000 or until such taxpayer's | 24 |
| average monthly liability to the
Department as computed for | 25 |
| each calendar quarter of the 4 preceding complete
calendar | 26 |
| quarters is less than $20,000. If any such quarter monthly | 27 |
| payment is
not paid at the time or in the amount required, the | 28 |
| taxpayer shall be liable
for penalties and interest on such | 29 |
| difference, except insofar as the taxpayer
has previously made | 30 |
| payments for that month in excess of the minimum payments
| 31 |
| previously due.
| 32 |
| If any payment provided for in this Section exceeds
the | 33 |
| taxpayer's liabilities under this Act, the Use Tax Act, the | 34 |
| Service
Occupation Tax Act and the Service Use Tax Act, as |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| shown on an original
monthly return, the Department shall, if | 2 |
| requested by the taxpayer, issue to
the taxpayer a credit | 3 |
| memorandum no later than 30 days after the date of
payment. The | 4 |
| credit evidenced by such credit memorandum may
be assigned by | 5 |
| the taxpayer to a similar taxpayer under this Act, the
Use Tax | 6 |
| Act, the Service Occupation Tax Act or the Service Use Tax Act, | 7 |
| in
accordance with reasonable rules and regulations to be | 8 |
| prescribed by the
Department. If no such request is made, the | 9 |
| taxpayer may credit such excess
payment against tax liability | 10 |
| subsequently to be remitted to the Department
under this Act, | 11 |
| the Use Tax Act, the Service Occupation Tax Act or the
Service | 12 |
| Use Tax Act, in accordance with reasonable rules and | 13 |
| regulations
prescribed by the Department. If the Department | 14 |
| subsequently determined
that all or any part of the credit | 15 |
| taken was not actually due to the
taxpayer, the taxpayer's 2.1% | 16 |
| and 1.75% vendor's discount shall be reduced
by 2.1% or 1.75% | 17 |
| of the difference between the credit taken and that
actually | 18 |
| due, and that taxpayer shall be liable for penalties and | 19 |
| interest
on such difference.
| 20 |
| If a retailer of motor fuel is entitled to a credit under | 21 |
| Section 2d of
this Act which exceeds the taxpayer's liability | 22 |
| to the Department under
this Act for the month which the | 23 |
| taxpayer is filing a return, the
Department shall issue the | 24 |
| taxpayer a credit memorandum for the excess.
| 25 |
| Beginning January 1, 1990, each month the Department shall | 26 |
| pay into
the Local Government Tax Fund, a special fund in the | 27 |
| State treasury which
is hereby created, the net revenue | 28 |
| realized for the preceding month from
the 1% tax on sales of | 29 |
| food for human consumption which is to be consumed
off the | 30 |
| premises where it is sold (other than alcoholic beverages, soft
| 31 |
| drinks and food which has been prepared for immediate | 32 |
| consumption) and
prescription and nonprescription medicines, | 33 |
| drugs, medical appliances and
insulin, urine testing | 34 |
| materials, syringes and needles used by diabetics.
|
|
|
|
09300SB2207ham002 |
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|
| 1 |
| Beginning January 1, 1990, each month the Department shall | 2 |
| pay into
the County and Mass Transit District Fund, a special | 3 |
| fund in the State
treasury which is hereby created, 4% of the | 4 |
| net revenue realized
for the preceding month from the 6.25% | 5 |
| general rate.
| 6 |
| Beginning August 1, 2000, each
month the Department shall | 7 |
| pay into the
County and Mass Transit District Fund 20% of the | 8 |
| net revenue realized for the
preceding month from the 1.25% | 9 |
| rate on the selling price of motor fuel and
gasohol.
| 10 |
| Beginning January 1, 1990, each month the Department shall | 11 |
| pay into
the Local Government Tax Fund 16% of the net revenue | 12 |
| realized for the
preceding month from the 6.25% general rate on | 13 |
| the selling price of
tangible personal property.
| 14 |
| Beginning August 1, 2000, each
month the Department shall | 15 |
| pay into the
Local Government Tax Fund 80% of the net revenue | 16 |
| realized for the preceding
month from the 1.25% rate on the | 17 |
| selling price of motor fuel and gasohol.
| 18 |
| Of the remainder of the moneys received by the Department | 19 |
| pursuant
to this Act, (a) 1.75% thereof shall be paid into the | 20 |
| Build Illinois
Fund and (b) prior to July 1, 1989, 2.2% and on | 21 |
| and after July 1, 1989,
3.8% thereof shall be paid into the | 22 |
| Build Illinois Fund; provided, however,
that if in any fiscal | 23 |
| year the sum of (1) the aggregate of 2.2% or 3.8%, as
the case | 24 |
| may be, of the moneys received by the Department and required | 25 |
| to
be paid into the Build Illinois Fund pursuant to this Act, | 26 |
| Section 9 of the
Use Tax Act, Section 9 of the Service Use Tax | 27 |
| Act, and Section 9 of the
Service Occupation Tax Act, such Acts | 28 |
| being hereinafter called the "Tax
Acts" and such aggregate of | 29 |
| 2.2% or 3.8%, as the case may be, of moneys
being hereinafter | 30 |
| called the "Tax Act Amount", and (2) the amount
transferred to | 31 |
| the Build Illinois Fund from the State and Local Sales Tax
| 32 |
| Reform Fund shall be less than the Annual Specified Amount (as | 33 |
| hereinafter
defined), an amount equal to the difference shall | 34 |
| be immediately paid into
the Build Illinois Fund from other |
|
|
|
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| moneys received by the Department
pursuant to the Tax Acts; the | 2 |
| "Annual Specified Amount" means the amounts
specified below for | 3 |
| fiscal years 1986 through 1993:
|
|
4 | | Fiscal Year | Annual Specified Amount | |
5 | | 1986 | $54,800,000 | |
6 | | 1987 | $76,650,000 | |
7 | | 1988 | $80,480,000 | |
8 | | 1989 | $88,510,000 | |
9 | | 1990 | $115,330,000 | |
10 | | 1991 | $145,470,000 | |
11 | | 1992 | $182,730,000 | |
12 | | 1993 | $206,520,000; |
| 13 |
| and means the Certified Annual Debt Service Requirement (as | 14 |
| defined in
Section 13 of the Build Illinois Bond Act) or the | 15 |
| Tax Act Amount, whichever
is greater, for fiscal year 1994 and | 16 |
| each fiscal year thereafter; and
further provided, that if on | 17 |
| the last business day of any month the sum of
(1) the Tax Act | 18 |
| Amount required to be deposited into the Build Illinois
Bond | 19 |
| Account in the Build Illinois Fund during such month and (2) | 20 |
| the
amount transferred to the Build Illinois Fund from the | 21 |
| State and Local
Sales Tax Reform Fund shall have been less than | 22 |
| 1/12 of the Annual
Specified Amount, an amount equal to the | 23 |
| difference shall be immediately
paid into the Build Illinois | 24 |
| Fund from other moneys received by the
Department pursuant to | 25 |
| the Tax Acts; and, further provided, that in no
event shall the | 26 |
| payments required under the preceding proviso result in
| 27 |
| aggregate payments into the Build Illinois Fund pursuant to | 28 |
| this clause (b)
for any fiscal year in excess of the greater of | 29 |
| (i) the Tax Act Amount or
(ii) the Annual Specified Amount for | 30 |
| such fiscal year. The amounts payable
into the Build Illinois | 31 |
| Fund under clause (b) of the first sentence in this
paragraph | 32 |
| shall be payable only until such time as the aggregate amount | 33 |
| on
deposit under each trust indenture securing Bonds issued and | 34 |
| outstanding
pursuant to the Build Illinois Bond Act is |
|
|
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| 1 |
| sufficient, taking into account
any future investment income, | 2 |
| to fully provide, in accordance with such
indenture, for the | 3 |
| defeasance of or the payment of the principal of,
premium, if | 4 |
| any, and interest on the Bonds secured by such indenture and on
| 5 |
| any Bonds expected to be issued thereafter and all fees and | 6 |
| costs payable
with respect thereto, all as certified by the | 7 |
| Director of the Bureau of the
Budget (now Governor's Office of | 8 |
| Management and Budget) . If on the last
business day of any | 9 |
| month in which Bonds are
outstanding pursuant to the Build | 10 |
| Illinois Bond Act, the aggregate of
moneys deposited in the | 11 |
| Build Illinois Bond Account in the Build Illinois
Fund in such | 12 |
| month shall be less than the amount required to be transferred
| 13 |
| in such month from the Build Illinois Bond Account to the Build | 14 |
| Illinois
Bond Retirement and Interest Fund pursuant to Section | 15 |
| 13 of the Build
Illinois Bond Act, an amount equal to such | 16 |
| deficiency shall be immediately
paid from other moneys received | 17 |
| by the Department pursuant to the Tax Acts
to the Build | 18 |
| Illinois Fund; provided, however, that any amounts paid to the
| 19 |
| Build Illinois Fund in any fiscal year pursuant to this | 20 |
| sentence shall be
deemed to constitute payments pursuant to | 21 |
| clause (b) of the first sentence
of this paragraph and shall | 22 |
| reduce the amount otherwise payable for such
fiscal year | 23 |
| pursuant to that clause (b). The moneys received by the
| 24 |
| Department pursuant to this Act and required to be deposited | 25 |
| into the Build
Illinois Fund are subject to the pledge, claim | 26 |
| and charge set forth in
Section 12 of the Build Illinois Bond | 27 |
| Act.
| 28 |
| Subject to payment of amounts into the Build Illinois Fund | 29 |
| as provided in
the preceding paragraph or in any amendment | 30 |
| thereto hereafter enacted, the
following specified monthly | 31 |
| installment of the amount requested in the
certificate of the | 32 |
| Chairman of the Metropolitan Pier and Exposition
Authority | 33 |
| provided under Section 8.25f of the State Finance Act, but not | 34 |
| in
excess of sums designated as "Total Deposit", shall be |
|
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| deposited in the
aggregate from collections under Section 9 of | 2 |
| the Use Tax Act, Section 9 of
the Service Use Tax Act, Section | 3 |
| 9 of the Service Occupation Tax Act, and
Section 3 of the | 4 |
| Retailers' Occupation Tax Act into the McCormick Place
| 5 |
| Expansion Project Fund in the specified fiscal years.
|
|
6 | | Fiscal Year | | Total Deposit | |
7 | | 1993 | | $0 | |
8 | | 1994 | | 53,000,000 | |
9 | | 1995 | | 58,000,000 | |
10 | | 1996 | | 61,000,000 | |
11 | | 1997 | | 64,000,000 | |
12 | | 1998 | | 68,000,000 | |
13 | | 1999 | | 71,000,000 | |
14 | | 2000 | | 75,000,000 | |
15 | | 2001 | | 80,000,000 | |
16 | | 2002 | | 93,000,000 | |
17 | | 2003 | | 99,000,000 | |
18 | | 2004 | | 103,000,000 | |
19 | | 2005 | | 108,000,000 | |
20 | | 2006 | | 113,000,000 | |
21 | | 2007 | | 119,000,000 | |
22 | | 2008 | | 126,000,000 | |
23 | | 2009 | | 132,000,000 | |
24 | | 2010 | | 139,000,000 | |
25 | | 2011 | | 146,000,000 | |
26 | | 2012 | | 153,000,000 | |
27 | | 2013 | | 161,000,000 | |
28 | | 2014 | | 170,000,000 | |
29 | | 2015 | | 179,000,000 | |
30 | | 2016 | | 189,000,000 | |
31 | | 2017 | | 199,000,000 | |
32 | | 2018 | | 210,000,000 | |
33 | | 2019 | | 221,000,000 | |
|
|
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1 | | 2020 | | 233,000,000 | |
2 | | 2021 | | 246,000,000 | |
3 | | 2022 | | 260,000,000 | |
4 | | 2023 and | | 275,000,000 | |
5 | | each fiscal year | | | |
6 | | thereafter that bonds | | | |
7 | | are outstanding under | | | |
8 | | Section 13.2 of the | | | |
9 | | Metropolitan Pier and | | | |
10 | | Exposition Authority Act, | | | |
11 | | but not after fiscal year 2042. | | |
| 12 |
| Beginning July 20, 1993 and in each month of each fiscal | 13 |
| year thereafter,
one-eighth of the amount requested in the | 14 |
| certificate of the Chairman of
the Metropolitan Pier and | 15 |
| Exposition Authority for that fiscal year, less
the amount | 16 |
| deposited into the McCormick Place Expansion Project Fund by | 17 |
| the
State Treasurer in the respective month under subsection | 18 |
| (g) of Section 13
of the Metropolitan Pier and Exposition | 19 |
| Authority Act, plus cumulative
deficiencies in the deposits | 20 |
| required under this Section for previous
months and years, | 21 |
| shall be deposited into the McCormick Place Expansion
Project | 22 |
| Fund, until the full amount requested for the fiscal year, but | 23 |
| not
in excess of the amount specified above as "Total Deposit", | 24 |
| has been deposited.
| 25 |
| Subject to payment of amounts into the Build Illinois Fund | 26 |
| and the
McCormick Place Expansion Project Fund pursuant to the | 27 |
| preceding paragraphs
or in any amendments
thereto hereafter | 28 |
| enacted, beginning July 1, 1993, the Department shall each
| 29 |
| month pay into the Illinois Tax Increment Fund 0.27% of 80% of | 30 |
| the net revenue
realized for the preceding month from the 6.25% | 31 |
| general rate on the selling
price of tangible personal | 32 |
| property.
| 33 |
| Subject to payment of amounts into the Build Illinois Fund | 34 |
| and the
McCormick Place Expansion Project Fund pursuant to the |
|
|
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| preceding paragraphs or in any
amendments thereto hereafter | 2 |
| enacted, beginning with the receipt of the first
report of | 3 |
| taxes paid by an eligible business and continuing for a 25-year
| 4 |
| period, the Department shall each month pay into the Energy | 5 |
| Infrastructure
Fund 80% of the net revenue realized from the | 6 |
| 6.25% general rate on the
selling price of Illinois-mined coal | 7 |
| that was sold to an eligible business.
For purposes of this | 8 |
| paragraph, the term "eligible business" means a new
electric | 9 |
| generating facility certified pursuant to Section 605-332 of | 10 |
| the
Department of Commerce and Economic Opportunity
Community | 11 |
| Affairs
Law of the Civil Administrative Code of Illinois.
| 12 |
| Of the remainder of the moneys received by the Department | 13 |
| pursuant to
this Act, 75% thereof shall be paid into the State | 14 |
| Treasury and 25% shall
be reserved in a special account and | 15 |
| used only for the transfer to the
Common School Fund as part of | 16 |
| the monthly transfer from the General Revenue
Fund in | 17 |
| accordance with Section 8a of the State Finance Act.
| 18 |
| The Department may, upon separate written notice to a | 19 |
| taxpayer,
require the taxpayer to prepare and file with the | 20 |
| Department on a form
prescribed by the Department within not | 21 |
| less than 60 days after receipt
of the notice an annual | 22 |
| information return for the tax year specified in
the notice. | 23 |
| Such annual return to the Department shall include a
statement | 24 |
| of gross receipts as shown by the retailer's last Federal | 25 |
| income
tax return. If the total receipts of the business as | 26 |
| reported in the
Federal income tax return do not agree with the | 27 |
| gross receipts reported to
the Department of Revenue for the | 28 |
| same period, the retailer shall attach
to his annual return a | 29 |
| schedule showing a reconciliation of the 2
amounts and the | 30 |
| reasons for the difference. The retailer's annual
return to the | 31 |
| Department shall also disclose the cost of goods sold by
the | 32 |
| retailer during the year covered by such return, opening and | 33 |
| closing
inventories of such goods for such year, costs of goods | 34 |
| used from stock
or taken from stock and given away by the |
|
|
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| retailer during such year,
payroll information of the | 2 |
| retailer's business during such year and any
additional | 3 |
| reasonable information which the Department deems would be
| 4 |
| helpful in determining the accuracy of the monthly, quarterly | 5 |
| or annual
returns filed by such retailer as provided for in | 6 |
| this Section.
| 7 |
| If the annual information return required by this Section | 8 |
| is not
filed when and as required, the taxpayer shall be liable | 9 |
| as follows:
| 10 |
| (i) Until January 1, 1994, the taxpayer shall be liable
| 11 |
| for a penalty equal to 1/6 of 1% of the tax due from such | 12 |
| taxpayer under
this Act during the period to be covered by | 13 |
| the annual return for each
month or fraction of a month | 14 |
| until such return is filed as required, the
penalty to be | 15 |
| assessed and collected in the same manner as any other
| 16 |
| penalty provided for in this Act.
| 17 |
| (ii) On and after January 1, 1994, the taxpayer shall | 18 |
| be
liable for a penalty as described in Section 3-4 of the | 19 |
| Uniform Penalty and
Interest Act.
| 20 |
| The chief executive officer, proprietor, owner or highest | 21 |
| ranking
manager shall sign the annual return to certify the | 22 |
| accuracy of the
information contained therein. Any person who | 23 |
| willfully signs the
annual return containing false or | 24 |
| inaccurate information shall be guilty
of perjury and punished | 25 |
| accordingly. The annual return form prescribed
by the | 26 |
| Department shall include a warning that the person signing the
| 27 |
| return may be liable for perjury.
| 28 |
| The provisions of this Section concerning the filing of an | 29 |
| annual
information return do not apply to a retailer who is not | 30 |
| required to
file an income tax return with the United States | 31 |
| Government.
| 32 |
| As soon as possible after the first day of each month, upon | 33 |
| certification
of the Department of Revenue, the Comptroller | 34 |
| shall order transferred and
the Treasurer shall transfer from |
|
|
|
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| the General Revenue Fund to the Motor
Fuel Tax Fund an amount | 2 |
| equal to 1.7% of 80% of the net revenue realized
under this Act | 3 |
| for the second preceding
month.
Beginning April 1, 2000, this | 4 |
| transfer is no longer required
and shall not be made.
| 5 |
| Net revenue realized for a month shall be the revenue | 6 |
| collected by the
State pursuant to this Act, less the amount | 7 |
| paid out during that month as
refunds to taxpayers for | 8 |
| overpayment of liability.
| 9 |
| For greater simplicity of administration, manufacturers, | 10 |
| importers
and wholesalers whose products are sold at retail in | 11 |
| Illinois by
numerous retailers, and who wish to do so, may | 12 |
| assume the responsibility
for accounting and paying to the | 13 |
| Department all tax accruing under this
Act with respect to such | 14 |
| sales, if the retailers who are affected do not
make written | 15 |
| objection to the Department to this arrangement.
| 16 |
| Any person who promotes, organizes, provides retail | 17 |
| selling space for
concessionaires or other types of sellers at | 18 |
| the Illinois State Fair, DuQuoin
State Fair, county fairs, | 19 |
| local fairs, art shows, flea markets and similar
exhibitions or | 20 |
| events, including any transient merchant as defined by Section | 21 |
| 2
of the Transient Merchant Act of 1987, is required to file a | 22 |
| report with the
Department providing the name of the merchant's | 23 |
| business, the name of the
person or persons engaged in | 24 |
| merchant's business, the permanent address and
Illinois | 25 |
| Retailers Occupation Tax Registration Number of the merchant, | 26 |
| the
dates and location of the event and other reasonable | 27 |
| information that the
Department may require. The report must be | 28 |
| filed not later than the 20th day
of the month next following | 29 |
| the month during which the event with retail sales
was held. | 30 |
| Any person who fails to file a report required by this Section
| 31 |
| commits a business offense and is subject to a fine not to | 32 |
| exceed $250.
| 33 |
| Any person engaged in the business of selling tangible | 34 |
| personal
property at retail as a concessionaire or other type |
|
|
|
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| of seller at the
Illinois State Fair, county fairs, art shows, | 2 |
| flea markets and similar
exhibitions or events, or any | 3 |
| transient merchants, as defined by Section 2
of the Transient | 4 |
| Merchant Act of 1987, may be required to make a daily report
of | 5 |
| the amount of such sales to the Department and to make a daily | 6 |
| payment of
the full amount of tax due. The Department shall | 7 |
| impose this
requirement when it finds that there is a | 8 |
| significant risk of loss of
revenue to the State at such an | 9 |
| exhibition or event. Such a finding
shall be based on evidence | 10 |
| that a substantial number of concessionaires
or other sellers | 11 |
| who are not residents of Illinois will be engaging in
the | 12 |
| business of selling tangible personal property at retail at the
| 13 |
| exhibition or event, or other evidence of a significant risk of | 14 |
| loss of revenue
to the State. The Department shall notify | 15 |
| concessionaires and other sellers
affected by the imposition of | 16 |
| this requirement. In the absence of
notification by the | 17 |
| Department, the concessionaires and other sellers
shall file | 18 |
| their returns as otherwise required in this Section.
| 19 |
| (Source: P.A. 92-12, eff. 7-1-01; 92-16, eff. 6-28-01; 92-208, | 20 |
| eff. 8-2-01;
92-484, eff. 8-23-01; 92-492, eff. 1-1-02; 92-600, | 21 |
| eff. 6-28-02; 92-651, eff.
7-11-02; 93-22, eff. 6-20-03; 93-24, | 22 |
| eff. 6-20-03; revised 10-15-03 .)
|
|
23 |
| ARTICLE 25 |
24 |
| Section 25-5. The Illinois Income Tax Act is amended by | 25 |
| changing Sections 203, 205, 305, and 1501 as follows:
| 26 |
| (35 ILCS 5/203) (from Ch. 120, par. 2-203)
| 27 |
| Sec. 203. Base income defined.
| 28 |
| (a) Individuals.
| 29 |
| (1) In general. In the case of an individual, base | 30 |
| income means an
amount equal to the taxpayer's adjusted | 31 |
| gross income for the taxable
year as modified by paragraph |
|
|
|
09300SB2207ham002 |
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| (2).
| 2 |
| (2) Modifications. The adjusted gross income referred | 3 |
| to in
paragraph (1) shall be modified by adding thereto the | 4 |
| sum of the
following amounts:
| 5 |
| (A) An amount equal to all amounts paid or accrued | 6 |
| to the taxpayer
as interest or dividends during the | 7 |
| taxable year to the extent excluded
from gross income | 8 |
| in the computation of adjusted gross income, except | 9 |
| stock
dividends of qualified public utilities | 10 |
| described in Section 305(e) of the
Internal Revenue | 11 |
| Code;
| 12 |
| (B) An amount equal to the amount of tax imposed by | 13 |
| this Act to the
extent deducted from gross income in | 14 |
| the computation of adjusted gross
income for the | 15 |
| taxable year;
| 16 |
| (C) An amount equal to the amount received during | 17 |
| the taxable year
as a recovery or refund of real | 18 |
| property taxes paid with respect to the
taxpayer's | 19 |
| principal residence under the Revenue Act of
1939 and | 20 |
| for which a deduction was previously taken under | 21 |
| subparagraph (L) of
this paragraph (2) prior to July 1, | 22 |
| 1991, the retrospective application date of
Article 4 | 23 |
| of Public Act 87-17. In the case of multi-unit or | 24 |
| multi-use
structures and farm dwellings, the taxes on | 25 |
| the taxpayer's principal residence
shall be that | 26 |
| portion of the total taxes for the entire property | 27 |
| which is
attributable to such principal residence;
| 28 |
| (D) An amount equal to the amount of the capital | 29 |
| gain deduction
allowable under the Internal Revenue | 30 |
| Code, to the extent deducted from gross
income in the | 31 |
| computation of adjusted gross income;
| 32 |
| (D-5) An amount, to the extent not included in | 33 |
| adjusted gross income,
equal to the amount of money | 34 |
| withdrawn by the taxpayer in the taxable year from
a |
|
|
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| medical care savings account and the interest earned on | 2 |
| the account in the
taxable year of a withdrawal | 3 |
| pursuant to subsection (b) of Section 20 of the
Medical | 4 |
| Care Savings Account Act or subsection (b) of Section | 5 |
| 20 of the
Medical Care Savings Account Act of 2000;
| 6 |
| (D-10) For taxable years ending after December 31, | 7 |
| 1997, an
amount equal to any eligible remediation costs | 8 |
| that the individual
deducted in computing adjusted | 9 |
| gross income and for which the
individual claims a | 10 |
| credit under subsection (l) of Section 201;
| 11 |
| (D-15) For taxable years 2001 and thereafter, an | 12 |
| amount equal to the
bonus depreciation deduction (30% | 13 |
| of the adjusted basis of the qualified
property) taken | 14 |
| on the taxpayer's federal income tax return for the | 15 |
| taxable
year under subsection (k) of Section 168 of the | 16 |
| Internal Revenue Code; and
| 17 |
| (D-16) If the taxpayer reports a capital gain or | 18 |
| loss on the
taxpayer's federal income tax return for | 19 |
| the taxable year based on a sale or
transfer of | 20 |
| property for which the taxpayer was required in any | 21 |
| taxable year to
make an addition modification under | 22 |
| subparagraph (D-15), then an amount equal
to the | 23 |
| aggregate amount of the deductions taken in all taxable
| 24 |
| years under subparagraph (Z) with respect to that | 25 |
| property . ;
| 26 |
| The taxpayer is required to make the addition | 27 |
| modification under this
subparagraph
only once with | 28 |
| respect to any one piece of property ; . and
| 29 |
| (D-17) For taxable years ending on or after | 30 |
| December 31, 2004, an amount equal to the amount | 31 |
| otherwise allowed as a deduction in computing base | 32 |
| income for interest paid, accrued, or incurred, | 33 |
| directly or indirectly, to a foreign person who would | 34 |
| be a member of the same unitary business group but for |
|
|
|
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| the fact that foreign person's business activity | 2 |
| outside the United States is 80% or more of the foreign | 3 |
| person's total business activity. The addition | 4 |
| modification required by this subparagraph shall be | 5 |
| reduced to the extent that dividends were included in | 6 |
| base income of the unitary group for the same taxable | 7 |
| year and received by the taxpayer or by a member of the | 8 |
| taxpayer's unitary business group (including amounts | 9 |
| included in gross income under Sections 951 through 964 | 10 |
| of the Internal Revenue Code and amounts included in | 11 |
| gross income under Section 78 of the Internal Revenue | 12 |
| Code) with respect to the stock of the same person to | 13 |
| whom the interest was paid, accrued, or incurred. | 14 |
| This paragraph shall not apply to the following:
| 15 |
| (i) an item of interest paid, accrued, or | 16 |
| incurred, directly or indirectly, to a foreign | 17 |
| person who is subject in a foreign country or | 18 |
| state, other than a state which requires mandatory | 19 |
| unitary reporting, to a tax on or measured by net | 20 |
| income with respect to such interest; or | 21 |
| (ii) an item of interest paid, accrued, or | 22 |
| incurred, directly or indirectly, to a foreign | 23 |
| person if the taxpayer can establish, based on a | 24 |
| preponderance of the evidence, both of the | 25 |
| following: | 26 |
| (a) the foreign person, during the same | 27 |
| taxable year, paid, accrued, or incurred, the | 28 |
| interest to a person that is not a related | 29 |
| member, and | 30 |
| (b) the transaction giving rise to the | 31 |
| interest expense between the taxpayer and the | 32 |
| foreign person did not have as a principal | 33 |
| purpose the avoidance of Illinois income tax, | 34 |
| and is paid pursuant to a contract or agreement |
|
|
|
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| that reflects an arms-length interest rate and | 2 |
| terms; or
| 3 |
| (iii) the taxpayer can establish, based on | 4 |
| clear and convincing evidence, that the interest | 5 |
| paid, accrued, or incurred relates to a contract or | 6 |
| agreement entered into at arm's length rates and | 7 |
| terms and the principal purpose for the payment is | 8 |
| not federal or Illinois tax avoidance; or
| 9 |
| (iv) an item of interest paid, accrued, or | 10 |
| incurred, directly or indirectly, to a foreign | 11 |
| person if the taxpayer establishes by clear and | 12 |
| convincing evidence that the adjustments are | 13 |
| unreasonable; or if the taxpayer and the Director | 14 |
| agree in writing to the application or use of an | 15 |
| alternative method of apportionment under Section | 16 |
| 304(f).
| 17 |
| Nothing in this subsection shall preclude the | 18 |
| Director from making any other adjustment | 19 |
| otherwise allowed under Section 404 of this Act for | 20 |
| any tax year beginning after the effective date of | 21 |
| this amendment provided such adjustment is made | 22 |
| pursuant to regulation adopted by the Department | 23 |
| and such regulations provide methods and standards | 24 |
| by which the Department will utilize its authority | 25 |
| under Section 404 of this Act;
| 26 |
| (D-18) For taxable years ending on or after | 27 |
| December 31, 2004, an amount equal to the amount of | 28 |
| intangible expenses and costs otherwise allowed as a | 29 |
| deduction in computing base income, and that were paid, | 30 |
| accrued, or incurred, directly or indirectly, to a | 31 |
| foreign person who would be a member of the same | 32 |
| unitary business group but for the fact that the | 33 |
| foreign person's business activity outside the United | 34 |
| States is 80% or more of that person's total business |
|
|
|
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| 1 |
| activity. The addition modification required by this | 2 |
| subparagraph shall be reduced to the extent that | 3 |
| dividends were included in base income of the unitary | 4 |
| group for the same taxable year and received by the | 5 |
| taxpayer or by a member of the taxpayer's unitary | 6 |
| business group (including amounts included in gross | 7 |
| income under Sections 951 through 964 of the Internal | 8 |
| Revenue Code and amounts included in gross income under | 9 |
| Section 78 of the Internal Revenue Code) with respect | 10 |
| to the stock of the same person to whom the intangible | 11 |
| expenses and costs were directly or indirectly paid, | 12 |
| incurred, or accrued. The preceding sentence does not | 13 |
| apply to the extent that the same dividends caused a | 14 |
| reduction to the addition modification required under | 15 |
| Section 203(a)(2)(D-17) of this Act. As used in this | 16 |
| subparagraph, the term "intangible expenses and costs" | 17 |
| includes (1) expenses, losses, and costs for, or | 18 |
| related to, the direct or indirect acquisition, use, | 19 |
| maintenance or management, ownership, sale, exchange, | 20 |
| or any other disposition of intangible property; (2) | 21 |
| losses incurred, directly or indirectly, from | 22 |
| factoring transactions or discounting transactions; | 23 |
| (3) royalty, patent, technical, and copyright fees; | 24 |
| (4) licensing fees; and (5) other similar expenses and | 25 |
| costs.
For purposes of this subparagraph, "intangible | 26 |
| property" includes patents, patent applications, trade | 27 |
| names, trademarks, service marks, copyrights, mask | 28 |
| works, trade secrets, and similar types of intangible | 29 |
| assets. | 30 |
| This paragraph shall not apply to the following: | 31 |
| (i) any item of intangible expenses or costs | 32 |
| paid, accrued, or incurred, directly or | 33 |
| indirectly, from a transaction with a foreign | 34 |
| person who is subject in a foreign country or |
|
|
|
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| 1 |
| state, other than a state which requires mandatory | 2 |
| unitary reporting, to a tax on or measured by net | 3 |
| income with respect to such item; or | 4 |
| (ii) any item of intangible expense or cost | 5 |
| paid, accrued, or incurred, directly or | 6 |
| indirectly, if the taxpayer can establish, based | 7 |
| on a preponderance of the evidence, both of the | 8 |
| following: | 9 |
| (a) the foreign person during the same | 10 |
| taxable year paid, accrued, or incurred, the | 11 |
| intangible expense or cost to a person that is | 12 |
| not a related member, and | 13 |
| (b) the transaction giving rise to the | 14 |
| intangible expense or cost between the | 15 |
| taxpayer and the foreign person did not have as | 16 |
| a principal purpose the avoidance of Illinois | 17 |
| income tax, and is paid pursuant to a contract | 18 |
| or agreement that reflects arms length terms; | 19 |
| or | 20 |
| (iii) any item of intangible expense or cost | 21 |
| paid, accrued, or incurred, directly or | 22 |
| indirectly, from a transaction with a foreign | 23 |
| person if the taxpayer establishes by clear and | 24 |
| convincing evidence, that the adjustments are | 25 |
| unreasonable; or if the taxpayer and the Director | 26 |
| agree in writing to the application or use of an | 27 |
| alternative method of apportionment under section | 28 |
| 304(f);
| 29 |
| Nothing in this subsection shall preclude the | 30 |
| Director from making any other adjustment | 31 |
| otherwise allowed under Section 404 of this Act for | 32 |
| any tax year beginning after the effective date of | 33 |
| this amendment provided such adjustment is made | 34 |
| pursuant to regulation adopted by the Department |
|
|
|
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| and such regulations provide methods and standards | 2 |
| by which the Department will utilize its authority | 3 |
| under Section 404 of this Act;
| 4 |
| (D-20)
(D-15) For taxable years beginning on or | 5 |
| after January 1,
2002, in
the
case of a distribution | 6 |
| from a qualified tuition program under Section 529 of
| 7 |
| the Internal Revenue Code, other than (i) a | 8 |
| distribution from a College Savings
Pool created under | 9 |
| Section 16.5 of the State Treasurer Act or (ii) a
| 10 |
| distribution from the Illinois Prepaid Tuition Trust | 11 |
| Fund, an amount equal to
the amount excluded from gross | 12 |
| income under Section 529(c)(3)(B);
| 13 |
| and by deducting from the total so obtained the
sum of the | 14 |
| following amounts:
| 15 |
| (E) For taxable years ending before December 31, | 16 |
| 2001,
any amount included in such total in respect of | 17 |
| any compensation
(including but not limited to any | 18 |
| compensation paid or accrued to a
serviceman while a | 19 |
| prisoner of war or missing in action) paid to a | 20 |
| resident
by reason of being on active duty in the Armed | 21 |
| Forces of the United States
and in respect of any | 22 |
| compensation paid or accrued to a resident who as a
| 23 |
| governmental employee was a prisoner of war or missing | 24 |
| in action, and in
respect of any compensation paid to a | 25 |
| resident in 1971 or thereafter for
annual training | 26 |
| performed pursuant to Sections 502 and 503, Title 32,
| 27 |
| United States Code as a member of the Illinois National | 28 |
| Guard.
For taxable years ending on or after December | 29 |
| 31, 2001, any amount included in
such total in respect | 30 |
| of any compensation (including but not limited to any
| 31 |
| compensation paid or accrued to a serviceman while a | 32 |
| prisoner of war or missing
in action) paid to a | 33 |
| resident by reason of being a member of any component | 34 |
| of
the Armed Forces of the United States and in respect |
|
|
|
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| of any compensation paid
or accrued to a resident who | 2 |
| as a governmental employee was a prisoner of war
or | 3 |
| missing in action, and in respect of any compensation | 4 |
| paid to a resident in
2001 or thereafter by reason of | 5 |
| being a member of the Illinois National Guard.
The | 6 |
| provisions of this amendatory Act of the 92nd General | 7 |
| Assembly are exempt
from the provisions of Section 250;
| 8 |
| (F) An amount equal to all amounts included in such | 9 |
| total pursuant
to the provisions of Sections 402(a), | 10 |
| 402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the | 11 |
| Internal Revenue Code, or included in such total as
| 12 |
| distributions under the provisions of any retirement | 13 |
| or disability plan for
employees of any governmental | 14 |
| agency or unit, or retirement payments to
retired | 15 |
| partners, which payments are excluded in computing net | 16 |
| earnings
from self employment by Section 1402 of the | 17 |
| Internal Revenue Code and
regulations adopted pursuant | 18 |
| thereto;
| 19 |
| (G) The valuation limitation amount;
| 20 |
| (H) An amount equal to the amount of any tax | 21 |
| imposed by this Act
which was refunded to the taxpayer | 22 |
| and included in such total for the
taxable year;
| 23 |
| (I) An amount equal to all amounts included in such | 24 |
| total pursuant
to the provisions of Section 111 of the | 25 |
| Internal Revenue Code as a
recovery of items previously | 26 |
| deducted from adjusted gross income in the
computation | 27 |
| of taxable income;
| 28 |
| (J) An amount equal to those dividends included in | 29 |
| such total which were
paid by a corporation which | 30 |
| conducts business operations in an Enterprise
Zone or | 31 |
| zones created under the Illinois Enterprise Zone Act, | 32 |
| and conducts
substantially all of its operations in an | 33 |
| Enterprise Zone or zones;
| 34 |
| (K) An amount equal to those dividends included in |
|
|
|
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| 1 |
| such total that
were paid by a corporation that | 2 |
| conducts business operations in a federally
designated | 3 |
| Foreign Trade Zone or Sub-Zone and that is designated a | 4 |
| High Impact
Business located in Illinois; provided | 5 |
| that dividends eligible for the
deduction provided in | 6 |
| subparagraph (J) of paragraph (2) of this subsection
| 7 |
| shall not be eligible for the deduction provided under | 8 |
| this subparagraph
(K);
| 9 |
| (L) For taxable years ending after December 31, | 10 |
| 1983, an amount equal to
all social security benefits | 11 |
| and railroad retirement benefits included in
such | 12 |
| total pursuant to Sections 72(r) and 86 of the Internal | 13 |
| Revenue Code;
| 14 |
| (M) With the exception of any amounts subtracted | 15 |
| under subparagraph
(N), an amount equal to the sum of | 16 |
| all amounts disallowed as
deductions by (i) Sections | 17 |
| 171(a) (2), and 265(2) of the Internal Revenue Code
of | 18 |
| 1954, as now or hereafter amended, and all amounts of | 19 |
| expenses allocable
to interest and disallowed as | 20 |
| deductions by Section 265(1) of the Internal
Revenue | 21 |
| Code of 1954, as now or hereafter amended;
and (ii) for | 22 |
| taxable years
ending on or after August 13, 1999, | 23 |
| Sections 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | 24 |
| the Internal Revenue Code; the provisions of this
| 25 |
| subparagraph are exempt from the provisions of Section | 26 |
| 250;
| 27 |
| (N) An amount equal to all amounts included in such | 28 |
| total which are
exempt from taxation by this State | 29 |
| either by reason of its statutes or
Constitution
or by | 30 |
| reason of the Constitution, treaties or statutes of the | 31 |
| United States;
provided that, in the case of any | 32 |
| statute of this State that exempts income
derived from | 33 |
| bonds or other obligations from the tax imposed under | 34 |
| this Act,
the amount exempted shall be the interest net |
|
|
|
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| of bond premium amortization;
| 2 |
| (O) An amount equal to any contribution made to a | 3 |
| job training
project established pursuant to the Tax | 4 |
| Increment Allocation Redevelopment Act;
| 5 |
| (P) An amount equal to the amount of the deduction | 6 |
| used to compute the
federal income tax credit for | 7 |
| restoration of substantial amounts held under
claim of | 8 |
| right for the taxable year pursuant to Section 1341 of | 9 |
| the
Internal Revenue Code of 1986;
| 10 |
| (Q) An amount equal to any amounts included in such | 11 |
| total, received by
the taxpayer as an acceleration in | 12 |
| the payment of life, endowment or annuity
benefits in | 13 |
| advance of the time they would otherwise be payable as | 14 |
| an indemnity
for a terminal illness;
| 15 |
| (R) An amount equal to the amount of any federal or | 16 |
| State bonus paid
to veterans of the Persian Gulf War;
| 17 |
| (S) An amount, to the extent included in adjusted | 18 |
| gross income, equal
to the amount of a contribution | 19 |
| made in the taxable year on behalf of the
taxpayer to a | 20 |
| medical care savings account established under the | 21 |
| Medical Care
Savings Account Act or the Medical Care | 22 |
| Savings Account Act of 2000 to the
extent the | 23 |
| contribution is accepted by the account
administrator | 24 |
| as provided in that Act;
| 25 |
| (T) An amount, to the extent included in adjusted | 26 |
| gross income, equal to
the amount of interest earned in | 27 |
| the taxable year on a medical care savings
account | 28 |
| established under the Medical Care Savings Account Act | 29 |
| or the Medical
Care Savings Account Act of 2000 on | 30 |
| behalf of the
taxpayer, other than interest added | 31 |
| pursuant to item (D-5) of this paragraph
(2);
| 32 |
| (U) For one taxable year beginning on or after | 33 |
| January 1,
1994, an
amount equal to the total amount of | 34 |
| tax imposed and paid under subsections (a)
and (b) of |
|
|
|
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| 1 |
| Section 201 of this Act on grant amounts received by | 2 |
| the taxpayer
under the Nursing Home Grant Assistance | 3 |
| Act during the taxpayer's taxable years
1992 and 1993;
| 4 |
| (V) Beginning with tax years ending on or after | 5 |
| December 31, 1995 and
ending with tax years ending on | 6 |
| or before December 31, 2004, an amount equal to
the | 7 |
| amount paid by a taxpayer who is a
self-employed | 8 |
| taxpayer, a partner of a partnership, or a
shareholder | 9 |
| in a Subchapter S corporation for health insurance or | 10 |
| long-term
care insurance for that taxpayer or that | 11 |
| taxpayer's spouse or dependents, to
the extent that the | 12 |
| amount paid for that health insurance or long-term care
| 13 |
| insurance may be deducted under Section 213 of the | 14 |
| Internal Revenue Code of
1986, has not been deducted on | 15 |
| the federal income tax return of the taxpayer,
and does | 16 |
| not exceed the taxable income attributable to that | 17 |
| taxpayer's income,
self-employment income, or | 18 |
| Subchapter S corporation income; except that no
| 19 |
| deduction shall be allowed under this item (V) if the | 20 |
| taxpayer is eligible to
participate in any health | 21 |
| insurance or long-term care insurance plan of an
| 22 |
| employer of the taxpayer or the taxpayer's
spouse. The | 23 |
| amount of the health insurance and long-term care | 24 |
| insurance
subtracted under this item (V) shall be | 25 |
| determined by multiplying total
health insurance and | 26 |
| long-term care insurance premiums paid by the taxpayer
| 27 |
| times a number that represents the fractional | 28 |
| percentage of eligible medical
expenses under Section | 29 |
| 213 of the Internal Revenue Code of 1986 not actually
| 30 |
| deducted on the taxpayer's federal income tax return;
| 31 |
| (W) For taxable years beginning on or after January | 32 |
| 1, 1998,
all amounts included in the taxpayer's federal | 33 |
| gross income
in the taxable year from amounts converted | 34 |
| from a regular IRA to a Roth IRA.
This paragraph is |
|
|
|
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| 1 |
| exempt from the provisions of Section
250;
| 2 |
| (X) For taxable year 1999 and thereafter, an amount | 3 |
| equal to the
amount of any (i) distributions, to the | 4 |
| extent includible in gross income for
federal income | 5 |
| tax purposes, made to the taxpayer because of his or | 6 |
| her status
as a victim of persecution for racial or | 7 |
| religious reasons by Nazi Germany or
any other Axis | 8 |
| regime or as an heir of the victim and (ii) items
of | 9 |
| income, to the extent
includible in gross income for | 10 |
| federal income tax purposes, attributable to,
derived | 11 |
| from or in any way related to assets stolen from, | 12 |
| hidden from, or
otherwise lost to a victim of
| 13 |
| persecution for racial or religious reasons by Nazi | 14 |
| Germany or any other Axis
regime immediately prior to, | 15 |
| during, and immediately after World War II,
including, | 16 |
| but
not limited to, interest on the proceeds receivable | 17 |
| as insurance
under policies issued to a victim of | 18 |
| persecution for racial or religious
reasons
by Nazi | 19 |
| Germany or any other Axis regime by European insurance | 20 |
| companies
immediately prior to and during World War II;
| 21 |
| provided, however, this subtraction from federal | 22 |
| adjusted gross income does not
apply to assets acquired | 23 |
| with such assets or with the proceeds from the sale of
| 24 |
| such assets; provided, further, this paragraph shall | 25 |
| only apply to a taxpayer
who was the first recipient of | 26 |
| such assets after their recovery and who is a
victim of | 27 |
| persecution for racial or religious reasons
by Nazi | 28 |
| Germany or any other Axis regime or as an heir of the | 29 |
| victim. The
amount of and the eligibility for any | 30 |
| public assistance, benefit, or
similar entitlement is | 31 |
| not affected by the inclusion of items (i) and (ii) of
| 32 |
| this paragraph in gross income for federal income tax | 33 |
| purposes.
This paragraph is exempt from the provisions | 34 |
| of Section 250;
|
|
|
|
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| (Y) For taxable years beginning on or after January | 2 |
| 1, 2002,
moneys contributed in the taxable year to a | 3 |
| College Savings Pool account under
Section 16.5 of the | 4 |
| State Treasurer Act, except that amounts excluded from
| 5 |
| gross income under Section 529(c)(3) (C) (i) of the | 6 |
| Internal Revenue Code
shall not be considered moneys | 7 |
| contributed under this subparagraph (Y). This
| 8 |
| subparagraph (Y) is exempt from the provisions of | 9 |
| Section 250;
| 10 |
| (Z) For taxable years 2001 and thereafter, for the | 11 |
| taxable year in
which the bonus depreciation deduction | 12 |
| (30% of the adjusted basis of the
qualified property) | 13 |
| is taken on the taxpayer's federal income tax return | 14 |
| under
subsection (k) of Section 168 of the Internal | 15 |
| Revenue Code and for each
applicable taxable year | 16 |
| thereafter, an amount equal to "x", where:
| 17 |
| (1) "y" equals the amount of the depreciation | 18 |
| deduction taken for the
taxable year
on the | 19 |
| taxpayer's federal income tax return on property | 20 |
| for which the bonus
depreciation deduction (30% of | 21 |
| the adjusted basis of the qualified property)
was | 22 |
| taken in any year under subsection (k) of Section | 23 |
| 168 of the Internal
Revenue Code, but not including | 24 |
| the bonus depreciation deduction; and
| 25 |
| (2) "x" equals "y" multiplied by 30 and then | 26 |
| divided by 70 (or "y"
multiplied by 0.429).
| 27 |
| The aggregate amount deducted under this | 28 |
| subparagraph in all taxable
years for any one piece of | 29 |
| property may not exceed the amount of the bonus
| 30 |
| depreciation deduction (30% of the adjusted basis of | 31 |
| the qualified property)
taken on that property on the | 32 |
| taxpayer's federal income tax return under
subsection | 33 |
| (k) of Section 168 of the Internal Revenue Code; and
| 34 |
| (AA) If the taxpayer reports a capital gain or loss |
|
|
|
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| 1 |
| on the taxpayer's
federal income tax return for the | 2 |
| taxable year based on a sale or transfer of
property | 3 |
| for which the taxpayer was required in any taxable year | 4 |
| to make an
addition modification under subparagraph | 5 |
| (D-15), then an amount equal to that
addition | 6 |
| modification.
| 7 |
| The taxpayer is allowed to take the deduction under | 8 |
| this subparagraph
only once with respect to any one | 9 |
| piece of property; and
| 10 |
| (BB)
(Z) Any amount included in adjusted gross | 11 |
| income, other
than
salary,
received by a driver in a | 12 |
| ridesharing arrangement using a motor vehicle ;
.
| 13 |
| (CC) The amount of (i) any interest income (net of | 14 |
| the deductions allocable thereto) taken into account | 15 |
| for the taxable year with respect to a transaction with | 16 |
| a taxpayer that is required to make an addition | 17 |
| modification with respect to such transaction under | 18 |
| Section 203(a)(2)(D-17), 203(b)(2)(E-13), | 19 |
| 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | 20 |
| the amount of that addition modification, and
(ii) any | 21 |
| income from intangible property (net of the deductions | 22 |
| allocable thereto) taken into account for the taxable | 23 |
| year with respect to a transaction with a taxpayer that | 24 |
| is required to make an addition modification with | 25 |
| respect to such transaction under Section | 26 |
| 203(a)(2)(D-18), 203(b)(2)(E-14), 203(c)(2)(G-13), or | 27 |
| 203(d)(2)(D-8), but not to exceed the amount of that | 28 |
| addition modification; | 29 |
| (DD) An amount equal to the interest income taken | 30 |
| into account for the taxable year (net of the | 31 |
| deductions allocable thereto) with respect to | 32 |
| transactions with a foreign person who would be a | 33 |
| member of the taxpayer's unitary business group but for | 34 |
| the fact that the foreign person's business activity |
|
|
|
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| outside the United States is 80% or more of that | 2 |
| person's total business activity, but not to exceed the | 3 |
| addition modification required to be made for the same | 4 |
| taxable year under Section 203(a)(2)(D-17) for | 5 |
| interest paid, accrued, or incurred, directly or | 6 |
| indirectly, to the same foreign person; and | 7 |
| (EE) An amount equal to the income from intangible | 8 |
| property taken into account for the taxable year (net | 9 |
| of the deductions allocable thereto) with respect to | 10 |
| transactions with a foreign person who would be a | 11 |
| member of the taxpayer's unitary business group but for | 12 |
| the fact that the foreign person's business activity | 13 |
| outside the United States is 80% or more of that | 14 |
| person's total business activity, but not to exceed the | 15 |
| addition modification required to be made for the same | 16 |
| taxable year under Section 203(a)(2)(D-18) for | 17 |
| intangible expenses and costs paid, accrued, or | 18 |
| incurred, directly or indirectly, to the same foreign | 19 |
| person.
| 20 |
| (b) Corporations.
| 21 |
| (1) In general. In the case of a corporation, base | 22 |
| income means an
amount equal to the taxpayer's taxable | 23 |
| income for the taxable year as
modified by paragraph (2).
| 24 |
| (2) Modifications. The taxable income referred to in | 25 |
| paragraph (1)
shall be modified by adding thereto the sum | 26 |
| of the following amounts:
| 27 |
| (A) An amount equal to all amounts paid or accrued | 28 |
| to the taxpayer
as interest and all distributions | 29 |
| received from regulated investment
companies during | 30 |
| the taxable year to the extent excluded from gross
| 31 |
| income in the computation of taxable income;
| 32 |
| (B) An amount equal to the amount of tax imposed by | 33 |
| this Act to the
extent deducted from gross income in |
|
|
|
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| the computation of taxable income
for the taxable year;
| 2 |
| (C) In the case of a regulated investment company, | 3 |
| an amount equal to
the excess of (i) the net long-term | 4 |
| capital gain for the taxable year, over
(ii) the amount | 5 |
| of the capital gain dividends designated as such in | 6 |
| accordance
with Section 852(b)(3)(C) of the Internal | 7 |
| Revenue Code and any amount
designated under Section | 8 |
| 852(b)(3)(D) of the Internal Revenue Code,
| 9 |
| attributable to the taxable year (this amendatory Act | 10 |
| of 1995
(Public Act 89-89) is declarative of existing | 11 |
| law and is not a new
enactment);
| 12 |
| (D) The amount of any net operating loss deduction | 13 |
| taken in arriving
at taxable income, other than a net | 14 |
| operating loss carried forward from a
taxable year | 15 |
| ending prior to December 31, 1986;
| 16 |
| (E) For taxable years in which a net operating loss | 17 |
| carryback or
carryforward from a taxable year ending | 18 |
| prior to December 31, 1986 is an
element of taxable | 19 |
| income under paragraph (1) of subsection (e) or
| 20 |
| subparagraph (E) of paragraph (2) of subsection (e), | 21 |
| the amount by which
addition modifications other than | 22 |
| those provided by this subparagraph (E)
exceeded | 23 |
| subtraction modifications in such earlier taxable | 24 |
| year, with the
following limitations applied in the | 25 |
| order that they are listed:
| 26 |
| (i) the addition modification relating to the | 27 |
| net operating loss
carried back or forward to the | 28 |
| taxable year from any taxable year ending
prior to | 29 |
| December 31, 1986 shall be reduced by the amount of | 30 |
| addition
modification under this subparagraph (E) | 31 |
| which related to that net operating
loss and which | 32 |
| was taken into account in calculating the base | 33 |
| income of an
earlier taxable year, and
| 34 |
| (ii) the addition modification relating to the |
|
|
|
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| 1 |
| net operating loss
carried back or forward to the | 2 |
| taxable year from any taxable year ending
prior to | 3 |
| December 31, 1986 shall not exceed the amount of | 4 |
| such carryback or
carryforward;
| 5 |
| For taxable years in which there is a net operating | 6 |
| loss carryback or
carryforward from more than one other | 7 |
| taxable year ending prior to December
31, 1986, the | 8 |
| addition modification provided in this subparagraph | 9 |
| (E) shall
be the sum of the amounts computed | 10 |
| independently under the preceding
provisions of this | 11 |
| subparagraph (E) for each such taxable year;
| 12 |
| (E-5) For taxable years ending after December 31, | 13 |
| 1997, an
amount equal to any eligible remediation costs | 14 |
| that the corporation
deducted in computing adjusted | 15 |
| gross income and for which the
corporation claims a | 16 |
| credit under subsection (l) of Section 201;
| 17 |
| (E-10) For taxable years 2001 and thereafter, an | 18 |
| amount equal to the
bonus depreciation deduction (30% | 19 |
| of the adjusted basis of the qualified
property) taken | 20 |
| on the taxpayer's federal income tax return for the | 21 |
| taxable
year under subsection (k) of Section 168 of the | 22 |
| Internal Revenue Code; and
| 23 |
| (E-11) If the taxpayer reports a capital gain or | 24 |
| loss on the
taxpayer's federal income tax return for | 25 |
| the taxable year based on a sale or
transfer of | 26 |
| property for which the taxpayer was required in any | 27 |
| taxable year to
make an addition modification under | 28 |
| subparagraph (E-10), then an amount equal
to the | 29 |
| aggregate amount of the deductions taken in all taxable
| 30 |
| years under subparagraph (T) with respect to that | 31 |
| property;
| 32 |
| The taxpayer is required to make the addition | 33 |
| modification under this
subparagraph
only once with | 34 |
| respect to any one piece of property;
|
|
|
|
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|
| 1 |
| (E-12) For taxable years ending on or after | 2 |
| December 31, 2004, an amount equal to the amount | 3 |
| otherwise allowed as a deduction in computing base | 4 |
| income for interest paid, accrued, or incurred, | 5 |
| directly or indirectly, to a foreign person who would | 6 |
| be a member of the same unitary business group but for | 7 |
| the fact the foreign person's business activity | 8 |
| outside the United States is 80% or more of the foreign | 9 |
| person's total business activity. The addition | 10 |
| modification required by this subparagraph shall be | 11 |
| reduced to the extent that dividends were included in | 12 |
| base income of the unitary group for the same taxable | 13 |
| year and received by the taxpayer or by a member of the | 14 |
| taxpayer's unitary business group (including amounts | 15 |
| included in gross income pursuant to Sections 951 | 16 |
| through 964 of the Internal Revenue Code and amounts | 17 |
| included in gross income under Section 78 of the | 18 |
| Internal Revenue Code) with respect to the stock of the | 19 |
| same person to whom the interest was paid, accrued, or | 20 |
| incurred.
| 21 |
| This paragraph shall not apply to the following:
| 22 |
| (i) an item of interest paid, accrued, or | 23 |
| incurred, directly or indirectly, to a foreign | 24 |
| person who is subject in a foreign country or | 25 |
| state, other than a state which requires mandatory | 26 |
| unitary reporting, to a tax on or measured by net | 27 |
| income with respect to such interest; or | 28 |
| (ii) an item of interest paid, accrued, or | 29 |
| incurred, directly or indirectly, to a foreign | 30 |
| person if the taxpayer can establish, based on a | 31 |
| preponderance of the evidence, both of the | 32 |
| following: | 33 |
| (a) the foreign person, during the same | 34 |
| taxable year, paid, accrued, or incurred, the |
|
|
|
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| 1 |
| interest to a person that is not a related | 2 |
| member, and | 3 |
| (b) the transaction giving rise to the | 4 |
| interest expense between the taxpayer and the | 5 |
| foreign person did not have as a principal | 6 |
| purpose the avoidance of Illinois income tax, | 7 |
| and is paid pursuant to a contract or agreement | 8 |
| that reflects an arms-length interest rate and | 9 |
| terms; or
| 10 |
| (iii) the taxpayer can establish, based on | 11 |
| clear and convincing evidence, that the interest | 12 |
| paid, accrued, or incurred relates to a contract or | 13 |
| agreement entered into at arm's length rates and | 14 |
| terms and the principal purpose for the payment is | 15 |
| not federal or Illinois tax avoidance; or
| 16 |
| (iv) an item of interest paid, accrued, or | 17 |
| incurred, directly or indirectly, to a foreign | 18 |
| person if the taxpayer establishes by clear and | 19 |
| convincing evidence that the adjustments are | 20 |
| unreasonable; or if the taxpayer and the Director | 21 |
| agree in writing to the application or use of an | 22 |
| alternative method of apportionment under Section | 23 |
| 304(f).
| 24 |
| Nothing in this subsection shall preclude the | 25 |
| Director from making any other adjustment | 26 |
| otherwise allowed under Section 404 of this Act for | 27 |
| any tax year beginning after the effective date of | 28 |
| this amendment provided such adjustment is made | 29 |
| pursuant to regulation adopted by the Department | 30 |
| and such regulations provide methods and standards | 31 |
| by which the Department will utilize its authority | 32 |
| under Section 404 of this Act;
| 33 |
| (E-13) For taxable years ending on or after | 34 |
| December 31, 2004, an amount equal to the amount of |
|
|
|
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| intangible expenses and costs otherwise allowed as a | 2 |
| deduction in computing base income, and that were paid, | 3 |
| accrued, or incurred, directly or indirectly, to a | 4 |
| foreign person who would be a member of the same | 5 |
| unitary business group but for the fact that the | 6 |
| foreign person's business activity outside the United | 7 |
| States is 80% or more of that person's total business | 8 |
| activity. The addition modification required by this | 9 |
| subparagraph shall be reduced to the extent that | 10 |
| dividends were included in base income of the unitary | 11 |
| group for the same taxable year and received by the | 12 |
| taxpayer or by a member of the taxpayer's unitary | 13 |
| business group (including amounts included in gross | 14 |
| income pursuant to Sections 951 through 964 of the | 15 |
| Internal Revenue Code and amounts included in gross | 16 |
| income under Section 78 of the Internal Revenue Code) | 17 |
| with respect to the stock of the same person to whom | 18 |
| the intangible expenses and costs were directly or | 19 |
| indirectly paid, incurred, or accrued. The preceding | 20 |
| sentence shall not apply to the extent that the same | 21 |
| dividends caused a reduction to the addition | 22 |
| modification required under Section 203(b)(2)(E-12) of | 23 |
| this Act.
As used in this subparagraph, the term | 24 |
| "intangible expenses and costs" includes (1) expenses, | 25 |
| losses, and costs for, or related to, the direct or | 26 |
| indirect acquisition, use, maintenance or management, | 27 |
| ownership, sale, exchange, or any other disposition of | 28 |
| intangible property; (2) losses incurred, directly or | 29 |
| indirectly, from factoring transactions or discounting | 30 |
| transactions; (3) royalty, patent, technical, and | 31 |
| copyright fees; (4) licensing fees; and (5) other | 32 |
| similar expenses and costs.
For purposes of this | 33 |
| subparagraph, "intangible property" includes patents, | 34 |
| patent applications, trade names, trademarks, service |
|
|
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| marks, copyrights, mask works, trade secrets, and | 2 |
| similar types of intangible assets. | 3 |
| This paragraph shall not apply to the following: | 4 |
| (i) any item of intangible expenses or costs paid, | 5 |
| accrued, or incurred, directly or indirectly, from | 6 |
| a transaction with a foreign person who is subject | 7 |
| in a foreign country or state, other than a state | 8 |
| which requires mandatory unitary reporting, to a | 9 |
| tax on or measured by net income with respect to | 10 |
| such item; or | 11 |
| (ii) any item of intangible expense or cost paid, | 12 |
| accrued, or incurred, directly or indirectly, if | 13 |
| the taxpayer can establish, based on a | 14 |
| preponderance of the evidence, both of the | 15 |
| following: | 16 |
| (a) the foreign person during the same taxable | 17 |
| year paid, accrued, or incurred, the | 18 |
| intangible expense or cost to a person that is | 19 |
| not a related member, and | 20 |
| (b) the transaction giving rise to the | 21 |
| intangible expense or cost between the | 22 |
| taxpayer and the foreign person did not have as | 23 |
| a principal purpose the avoidance of Illinois | 24 |
| income tax, and is paid pursuant to a contract | 25 |
| or agreement that reflects arms length terms; | 26 |
| or | 27 |
| (iii) any item of intangible expense or | 28 |
| cost paid, accrued, or incurred, directly or | 29 |
| indirectly, from a transaction with a foreign | 30 |
| person if the taxpayer establishes by clear and | 31 |
| convincing evidence, that the adjustments are | 32 |
| unreasonable; or if the taxpayer and the Director | 33 |
| agree in writing to the application or use of an | 34 |
| alternative method of apportionment under section |
|
|
|
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| 304(f);
| 2 |
| Nothing in this subsection shall preclude the | 3 |
| Director from making any other adjustment | 4 |
| otherwise allowed under Section 404 of this Act for | 5 |
| any tax year beginning after the effective date of | 6 |
| this amendment provided such adjustment is made | 7 |
| pursuant to regulation adopted by the Department | 8 |
| and such regulations provide methods and standards | 9 |
| by which the Department will utilize its authority | 10 |
| under Section 404 of this Act;
| 11 |
| and by deducting from the total so obtained the sum of the | 12 |
| following
amounts:
| 13 |
| (F) An amount equal to the amount of any tax | 14 |
| imposed by this Act
which was refunded to the taxpayer | 15 |
| and included in such total for the
taxable year;
| 16 |
| (G) An amount equal to any amount included in such | 17 |
| total under
Section 78 of the Internal Revenue Code;
| 18 |
| (H) In the case of a regulated investment company, | 19 |
| an amount equal
to the amount of exempt interest | 20 |
| dividends as defined in subsection (b)
(5) of Section | 21 |
| 852 of the Internal Revenue Code, paid to shareholders
| 22 |
| for the taxable year;
| 23 |
| (I) With the exception of any amounts subtracted | 24 |
| under subparagraph
(J),
an amount equal to the sum of | 25 |
| all amounts disallowed as
deductions by (i) Sections | 26 |
| 171(a) (2), and 265(a)(2) and amounts disallowed as
| 27 |
| interest expense by Section 291(a)(3) of the Internal | 28 |
| Revenue Code, as now
or hereafter amended, and all | 29 |
| amounts of expenses allocable to interest and
| 30 |
| disallowed as deductions by Section 265(a)(1) of the | 31 |
| Internal Revenue Code,
as now or hereafter amended;
and | 32 |
| (ii) for taxable years
ending on or after August 13, | 33 |
| 1999, Sections
171(a)(2), 265,
280C, 291(a)(3), and | 34 |
| 832(b)(5)(B)(i) of the Internal Revenue Code; the
|
|
|
|
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| provisions of this
subparagraph are exempt from the | 2 |
| provisions of Section 250;
| 3 |
| (J) An amount equal to all amounts included in such | 4 |
| total which are
exempt from taxation by this State | 5 |
| either by reason of its statutes or
Constitution
or by | 6 |
| reason of the Constitution, treaties or statutes of the | 7 |
| United States;
provided that, in the case of any | 8 |
| statute of this State that exempts income
derived from | 9 |
| bonds or other obligations from the tax imposed under | 10 |
| this Act,
the amount exempted shall be the interest net | 11 |
| of bond premium amortization;
| 12 |
| (K) An amount equal to those dividends included in | 13 |
| such total
which were paid by a corporation which | 14 |
| conducts
business operations in an Enterprise Zone or | 15 |
| zones created under
the Illinois Enterprise Zone Act | 16 |
| and conducts substantially all of its
operations in an | 17 |
| Enterprise Zone or zones;
| 18 |
| (L) An amount equal to those dividends included in | 19 |
| such total that
were paid by a corporation that | 20 |
| conducts business operations in a federally
designated | 21 |
| Foreign Trade Zone or Sub-Zone and that is designated a | 22 |
| High Impact
Business located in Illinois; provided | 23 |
| that dividends eligible for the
deduction provided in | 24 |
| subparagraph (K) of paragraph 2 of this subsection
| 25 |
| shall not be eligible for the deduction provided under | 26 |
| this subparagraph
(L);
| 27 |
| (M) For any taxpayer that is a financial | 28 |
| organization within the meaning
of Section 304(c) of | 29 |
| this Act, an amount included in such total as interest
| 30 |
| income from a loan or loans made by such taxpayer to a | 31 |
| borrower, to the extent
that such a loan is secured by | 32 |
| property which is eligible for the Enterprise
Zone | 33 |
| Investment Credit. To determine the portion of a loan | 34 |
| or loans that is
secured by property eligible for a |
|
|
|
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| Section 201(f) investment
credit to the borrower, the | 2 |
| entire principal amount of the loan or loans
between | 3 |
| the taxpayer and the borrower should be divided into | 4 |
| the basis of the
Section 201(f) investment credit | 5 |
| property which secures the
loan or loans, using for | 6 |
| this purpose the original basis of such property on
the | 7 |
| date that it was placed in service in the
Enterprise | 8 |
| Zone. The subtraction modification available to | 9 |
| taxpayer in any
year under this subsection shall be | 10 |
| that portion of the total interest paid
by the borrower | 11 |
| with respect to such loan attributable to the eligible
| 12 |
| property as calculated under the previous sentence;
| 13 |
| (M-1) For any taxpayer that is a financial | 14 |
| organization within the
meaning of Section 304(c) of | 15 |
| this Act, an amount included in such total as
interest | 16 |
| income from a loan or loans made by such taxpayer to a | 17 |
| borrower,
to the extent that such a loan is secured by | 18 |
| property which is eligible for
the High Impact Business | 19 |
| Investment Credit. To determine the portion of a
loan | 20 |
| or loans that is secured by property eligible for a | 21 |
| Section 201(h) investment credit to the borrower, the | 22 |
| entire principal amount of
the loan or loans between | 23 |
| the taxpayer and the borrower should be divided into
| 24 |
| the basis of the Section 201(h) investment credit | 25 |
| property which
secures the loan or loans, using for | 26 |
| this purpose the original basis of such
property on the | 27 |
| date that it was placed in service in a federally | 28 |
| designated
Foreign Trade Zone or Sub-Zone located in | 29 |
| Illinois. No taxpayer that is
eligible for the | 30 |
| deduction provided in subparagraph (M) of paragraph | 31 |
| (2) of
this subsection shall be eligible for the | 32 |
| deduction provided under this
subparagraph (M-1). The | 33 |
| subtraction modification available to taxpayers in
any | 34 |
| year under this subsection shall be that portion of the |
|
|
|
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| total interest
paid by the borrower with respect to | 2 |
| such loan attributable to the eligible
property as | 3 |
| calculated under the previous sentence;
| 4 |
| (N) Two times any contribution made during the | 5 |
| taxable year to a
designated zone organization to the | 6 |
| extent that the contribution (i)
qualifies as a | 7 |
| charitable contribution under subsection (c) of | 8 |
| Section 170
of the Internal Revenue Code and (ii) must, | 9 |
| by its terms, be used for a
project approved by the | 10 |
| Department of Commerce and Economic Opportunity
| 11 |
| Community Affairs under Section 11 of the Illinois | 12 |
| Enterprise Zone Act;
| 13 |
| (O) An amount equal to: (i) 85% for taxable years | 14 |
| ending on or before
December 31, 1992, or, a percentage | 15 |
| equal to the percentage allowable under
Section | 16 |
| 243(a)(1) of the Internal Revenue Code of 1986 for | 17 |
| taxable years ending
after December 31, 1992, of the | 18 |
| amount by which dividends included in taxable
income | 19 |
| and received from a corporation that is not created or | 20 |
| organized under
the laws of the United States or any | 21 |
| state or political subdivision thereof,
including, for | 22 |
| taxable years ending on or after December 31, 1988, | 23 |
| dividends
received or deemed received or paid or deemed | 24 |
| paid under Sections 951 through
964 of the Internal | 25 |
| Revenue Code, exceed the amount of the modification
| 26 |
| provided under subparagraph (G) of paragraph (2) of | 27 |
| this subsection (b) which
is related to such dividends; | 28 |
| plus (ii) 100% of the amount by which dividends,
| 29 |
| included in taxable income and received, including, | 30 |
| for taxable years ending on
or after December 31, 1988, | 31 |
| dividends received or deemed received or paid or
deemed | 32 |
| paid under Sections 951 through 964 of the Internal | 33 |
| Revenue Code, from
any such corporation specified in | 34 |
| clause (i) that would but for the provisions
of Section |
|
|
|
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| 1504 (b) (3) of the Internal Revenue Code be treated as | 2 |
| a member of
the affiliated group which includes the | 3 |
| dividend recipient, exceed the amount
of the | 4 |
| modification provided under subparagraph (G) of | 5 |
| paragraph (2) of this
subsection (b) which is related | 6 |
| to such dividends;
| 7 |
| (P) An amount equal to any contribution made to a | 8 |
| job training project
established pursuant to the Tax | 9 |
| Increment Allocation Redevelopment Act;
| 10 |
| (Q) An amount equal to the amount of the deduction | 11 |
| used to compute the
federal income tax credit for | 12 |
| restoration of substantial amounts held under
claim of | 13 |
| right for the taxable year pursuant to Section 1341 of | 14 |
| the
Internal Revenue Code of 1986;
| 15 |
| (R) In the case of an attorney-in-fact with respect | 16 |
| to whom an
interinsurer or a reciprocal insurer has | 17 |
| made the election under Section 835 of
the Internal | 18 |
| Revenue Code, 26 U.S.C. 835, an amount equal to the | 19 |
| excess, if
any, of the amounts paid or incurred by that | 20 |
| interinsurer or reciprocal insurer
in the taxable year | 21 |
| to the attorney-in-fact over the deduction allowed to | 22 |
| that
interinsurer or reciprocal insurer with respect | 23 |
| to the attorney-in-fact under
Section 835(b) of the | 24 |
| Internal Revenue Code for the taxable year;
| 25 |
| (S) For taxable years ending on or after December | 26 |
| 31, 1997, in the
case of a Subchapter
S corporation, an | 27 |
| amount equal to all amounts of income allocable to a
| 28 |
| shareholder subject to the Personal Property Tax | 29 |
| Replacement Income Tax imposed
by subsections (c) and | 30 |
| (d) of Section 201 of this Act, including amounts
| 31 |
| allocable to organizations exempt from federal income | 32 |
| tax by reason of Section
501(a) of the Internal Revenue | 33 |
| Code. This subparagraph (S) is exempt from
the | 34 |
| provisions of Section 250;
|
|
|
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| (T) For taxable years 2001 and thereafter, for the | 2 |
| taxable year in
which the bonus depreciation deduction | 3 |
| (30% of the adjusted basis of the
qualified property) | 4 |
| is taken on the taxpayer's federal income tax return | 5 |
| under
subsection (k) of Section 168 of the Internal | 6 |
| Revenue Code and for each
applicable taxable year | 7 |
| thereafter, an amount equal to "x", where:
| 8 |
| (1) "y" equals the amount of the depreciation | 9 |
| deduction taken for the
taxable year
on the | 10 |
| taxpayer's federal income tax return on property | 11 |
| for which the bonus
depreciation deduction (30% of | 12 |
| the adjusted basis of the qualified property)
was | 13 |
| taken in any year under subsection (k) of Section | 14 |
| 168 of the Internal
Revenue Code, but not including | 15 |
| the bonus depreciation deduction; and
| 16 |
| (2) "x" equals "y" multiplied by 30 and then | 17 |
| divided by 70 (or "y"
multiplied by 0.429).
| 18 |
| The aggregate amount deducted under this | 19 |
| subparagraph in all taxable
years for any one piece of | 20 |
| property may not exceed the amount of the bonus
| 21 |
| depreciation deduction (30% of the adjusted basis of | 22 |
| the qualified property)
taken on that property on the | 23 |
| taxpayer's federal income tax return under
subsection | 24 |
| (k) of Section 168 of the Internal Revenue Code; and
| 25 |
| (U) If the taxpayer reports a capital gain or loss | 26 |
| on the taxpayer's
federal income tax return for the | 27 |
| taxable year based on a sale or transfer of
property | 28 |
| for which the taxpayer was required in any taxable year | 29 |
| to make an
addition modification under subparagraph | 30 |
| (E-10), then an amount equal to that
addition | 31 |
| modification.
| 32 |
| The taxpayer is allowed to take the deduction under | 33 |
| this subparagraph
only once with respect to any one | 34 |
| piece of property ;
.
|
|
|
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| (V) The amount of: (i) any interest income (net of | 2 |
| the deductions allocable thereto) taken into account | 3 |
| for the taxable year with respect to a transaction with | 4 |
| a taxpayer that is required to make an addition | 5 |
| modification with respect to such transaction under | 6 |
| Section 203(a)(2)(D-17), 203(b)(2)(E-12), | 7 |
| 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | 8 |
| the amount of such addition modification and
(ii) any | 9 |
| income from intangible property (net of the deductions | 10 |
| allocable thereto) taken into account for the taxable | 11 |
| year with respect to a transaction with a taxpayer that | 12 |
| is required to make an addition modification with | 13 |
| respect to such transaction under Section | 14 |
| 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | 15 |
| 203(d)(2)(D-8), but not to exceed the amount of such | 16 |
| addition modification;
| 17 |
| (W) An amount equal to the interest income taken | 18 |
| into account for the taxable year (net of the | 19 |
| deductions allocable thereto) with respect to | 20 |
| transactions with a foreign person who would be a | 21 |
| member of the taxpayer's unitary business group but for | 22 |
| the fact that the foreign person's business activity | 23 |
| outside the United States is 80% or more of that | 24 |
| person's total business activity, but not to exceed the | 25 |
| addition modification required to be made for the same | 26 |
| taxable year under Section 203(b)(2)(E-12) for | 27 |
| interest paid, accrued, or incurred, directly or | 28 |
| indirectly, to the same foreign person; and
| 29 |
| (X) An amount equal to the income from intangible | 30 |
| property taken into account for the taxable year (net | 31 |
| of the deductions allocable thereto) with respect to | 32 |
| transactions with a foreign person who would be a | 33 |
| member of the taxpayer's unitary business group but for | 34 |
| the fact that the foreign person's business activity |
|
|
|
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| outside the United States is 80% or more of that | 2 |
| person's total business activity, but not to exceed the | 3 |
| addition modification required to be made for the same | 4 |
| taxable year under Section 203(b)(2)(E-13) for | 5 |
| intangible expenses and costs paid, accrued, or | 6 |
| incurred, directly or indirectly, to the same foreign | 7 |
| person.
| 8 |
| (3) Special rule. For purposes of paragraph (2) (A), | 9 |
| "gross income"
in the case of a life insurance company, for | 10 |
| tax years ending on and after
December 31, 1994,
shall mean | 11 |
| the gross investment income for the taxable year.
| 12 |
| (c) Trusts and estates.
| 13 |
| (1) In general. In the case of a trust or estate, base | 14 |
| income means
an amount equal to the taxpayer's taxable | 15 |
| income for the taxable year as
modified by paragraph (2).
| 16 |
| (2) Modifications. Subject to the provisions of | 17 |
| paragraph (3), the
taxable income referred to in paragraph | 18 |
| (1) shall be modified by adding
thereto the sum of the | 19 |
| following amounts:
| 20 |
| (A) An amount equal to all amounts paid or accrued | 21 |
| to the taxpayer
as interest or dividends during the | 22 |
| taxable year to the extent excluded
from gross income | 23 |
| in the computation of taxable income;
| 24 |
| (B) In the case of (i) an estate, $600; (ii) a | 25 |
| trust which, under
its governing instrument, is | 26 |
| required to distribute all of its income
currently, | 27 |
| $300; and (iii) any other trust, $100, but in each such | 28 |
| case,
only to the extent such amount was deducted in | 29 |
| the computation of
taxable income;
| 30 |
| (C) An amount equal to the amount of tax imposed by | 31 |
| this Act to the
extent deducted from gross income in | 32 |
| the computation of taxable income
for the taxable year;
| 33 |
| (D) The amount of any net operating loss deduction |
|
|
|
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| taken in arriving at
taxable income, other than a net | 2 |
| operating loss carried forward from a
taxable year | 3 |
| ending prior to December 31, 1986;
| 4 |
| (E) For taxable years in which a net operating loss | 5 |
| carryback or
carryforward from a taxable year ending | 6 |
| prior to December 31, 1986 is an
element of taxable | 7 |
| income under paragraph (1) of subsection (e) or | 8 |
| subparagraph
(E) of paragraph (2) of subsection (e), | 9 |
| the amount by which addition
modifications other than | 10 |
| those provided by this subparagraph (E) exceeded
| 11 |
| subtraction modifications in such taxable year, with | 12 |
| the following limitations
applied in the order that | 13 |
| they are listed:
| 14 |
| (i) the addition modification relating to the | 15 |
| net operating loss
carried back or forward to the | 16 |
| taxable year from any taxable year ending
prior to | 17 |
| December 31, 1986 shall be reduced by the amount of | 18 |
| addition
modification under this subparagraph (E) | 19 |
| which related to that net
operating loss and which | 20 |
| was taken into account in calculating the base
| 21 |
| income of an earlier taxable year, and
| 22 |
| (ii) the addition modification relating to the | 23 |
| net operating loss
carried back or forward to the | 24 |
| taxable year from any taxable year ending
prior to | 25 |
| December 31, 1986 shall not exceed the amount of | 26 |
| such carryback or
carryforward;
| 27 |
| For taxable years in which there is a net operating | 28 |
| loss carryback or
carryforward from more than one other | 29 |
| taxable year ending prior to December
31, 1986, the | 30 |
| addition modification provided in this subparagraph | 31 |
| (E) shall
be the sum of the amounts computed | 32 |
| independently under the preceding
provisions of this | 33 |
| subparagraph (E) for each such taxable year;
| 34 |
| (F) For taxable years ending on or after January 1, |
|
|
|
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| 1989, an amount
equal to the tax deducted pursuant to | 2 |
| Section 164 of the Internal Revenue
Code if the trust | 3 |
| or estate is claiming the same tax for purposes of the
| 4 |
| Illinois foreign tax credit under Section 601 of this | 5 |
| Act;
| 6 |
| (G) An amount equal to the amount of the capital | 7 |
| gain deduction
allowable under the Internal Revenue | 8 |
| Code, to the extent deducted from
gross income in the | 9 |
| computation of taxable income;
| 10 |
| (G-5) For taxable years ending after December 31, | 11 |
| 1997, an
amount equal to any eligible remediation costs | 12 |
| that the trust or estate
deducted in computing adjusted | 13 |
| gross income and for which the trust
or estate claims a | 14 |
| credit under subsection (l) of Section 201;
| 15 |
| (G-10) For taxable years 2001 and thereafter, an | 16 |
| amount equal to the
bonus depreciation deduction (30% | 17 |
| of the adjusted basis of the qualified
property) taken | 18 |
| on the taxpayer's federal income tax return for the | 19 |
| taxable
year under subsection (k) of Section 168 of the | 20 |
| Internal Revenue Code; and
| 21 |
| (G-11) If the taxpayer reports a capital gain or | 22 |
| loss on the
taxpayer's federal income tax return for | 23 |
| the taxable year based on a sale or
transfer of | 24 |
| property for which the taxpayer was required in any | 25 |
| taxable year to
make an addition modification under | 26 |
| subparagraph (G-10), then an amount equal
to the | 27 |
| aggregate amount of the deductions taken in all taxable
| 28 |
| years under subparagraph (R) with respect to that | 29 |
| property;
| 30 |
| The taxpayer is required to make the addition | 31 |
| modification under this
subparagraph
only once with | 32 |
| respect to any one piece of property;
| 33 |
| (G-12) For taxable years ending on or after | 34 |
| December 31, 2004, an amount equal to the amount |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| otherwise allowed as a deduction in computing base | 2 |
| income for interest paid, accrued, or incurred, | 3 |
| directly or indirectly, to a foreign person who would | 4 |
| be a member of the same unitary business group but for | 5 |
| the fact that the foreign person's business activity | 6 |
| outside the United States is 80% or more of the foreign | 7 |
| person's total business activity. The addition | 8 |
| modification required by this subparagraph shall be | 9 |
| reduced to the extent that dividends were included in | 10 |
| base income of the unitary group for the same taxable | 11 |
| year and received by the taxpayer or by a member of the | 12 |
| taxpayer's unitary business group (including amounts | 13 |
| included in gross income pursuant to Sections 951 | 14 |
| through 964 of the Internal Revenue Code and amounts | 15 |
| included in gross income under Section 78 of the | 16 |
| Internal Revenue Code) with respect to the stock of the | 17 |
| same person to whom the interest was paid, accrued, or | 18 |
| incurred.
| 19 |
| This paragraph shall not apply to the following:
| 20 |
| (i) an item of interest paid, accrued, or | 21 |
| incurred, directly or indirectly, to a foreign | 22 |
| person who is subject in a foreign country or | 23 |
| state, other than a state which requires mandatory | 24 |
| unitary reporting, to a tax on or measured by net | 25 |
| income with respect to such interest; or | 26 |
| (ii) an item of interest paid, accrued, or | 27 |
| incurred, directly or indirectly, to a foreign | 28 |
| person if the taxpayer can establish, based on a | 29 |
| preponderance of the evidence, both of the | 30 |
| following: | 31 |
| (a) the foreign person, during the same | 32 |
| taxable year, paid, accrued, or incurred, the | 33 |
| interest to a person that is not a related | 34 |
| member, and |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| (b) the transaction giving rise to the | 2 |
| interest expense between the taxpayer and the | 3 |
| foreign person did not have as a principal | 4 |
| purpose the avoidance of Illinois income tax, | 5 |
| and is paid pursuant to a contract or agreement | 6 |
| that reflects an arms-length interest rate and | 7 |
| terms; or
| 8 |
| (iii) the taxpayer can establish, based on | 9 |
| clear and convincing evidence, that the interest | 10 |
| paid, accrued, or incurred relates to a contract or | 11 |
| agreement entered into at arm's length rates and | 12 |
| terms and the principal purpose for the payment is | 13 |
| not federal or Illinois tax avoidance; or
| 14 |
| (iv) an item of interest paid, accrued, or | 15 |
| incurred, directly or indirectly, to a foreign | 16 |
| person if the taxpayer establishes by clear and | 17 |
| convincing evidence that the adjustments are | 18 |
| unreasonable; or if the taxpayer and the Director | 19 |
| agree in writing to the application or use of an | 20 |
| alternative method of apportionment under Section | 21 |
| 304(f).
| 22 |
| Nothing in this subsection shall preclude the | 23 |
| Director from making any other adjustment | 24 |
| otherwise allowed under Section 404 of this Act for | 25 |
| any tax year beginning after the effective date of | 26 |
| this amendment provided such adjustment is made | 27 |
| pursuant to regulation adopted by the Department | 28 |
| and such regulations provide methods and standards | 29 |
| by which the Department will utilize its authority | 30 |
| under Section 404 of this Act;
| 31 |
| (G-13) For taxable years ending on or after | 32 |
| December 31, 2004, an amount equal to the amount of | 33 |
| intangible expenses and costs otherwise allowed as a | 34 |
| deduction in computing base income, and that were paid, |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| accrued, or incurred, directly or indirectly, to a | 2 |
| foreign person who would be a member of the same | 3 |
| unitary business group but for the fact that the | 4 |
| foreign person's business activity outside the United | 5 |
| States is 80% or more of that person's total business | 6 |
| activity. The addition modification required by this | 7 |
| subparagraph shall be reduced to the extent that | 8 |
| dividends were included in base income of the unitary | 9 |
| group for the same taxable year and received by the | 10 |
| taxpayer or by a member of the taxpayer's unitary | 11 |
| business group (including amounts included in gross | 12 |
| income pursuant to Sections 951 through 964 of the | 13 |
| Internal Revenue Code and amounts included in gross | 14 |
| income under Section 78 of the Internal Revenue Code) | 15 |
| with respect to the stock of the same person to whom | 16 |
| the intangible expenses and costs were directly or | 17 |
| indirectly paid, incurred, or accrued. The preceding | 18 |
| sentence shall not apply to the extent that the same | 19 |
| dividends caused a reduction to the addition | 20 |
| modification required under Section 203(c)(2)(G-12) of | 21 |
| this Act. As used in this subparagraph, the term | 22 |
| "intangible expenses and costs" includes: (1) | 23 |
| expenses, losses, and costs for or related to the | 24 |
| direct or indirect acquisition, use, maintenance or | 25 |
| management, ownership, sale, exchange, or any other | 26 |
| disposition of intangible property; (2) losses | 27 |
| incurred, directly or indirectly, from factoring | 28 |
| transactions or discounting transactions; (3) royalty, | 29 |
| patent, technical, and copyright fees; (4) licensing | 30 |
| fees; and (5) other similar expenses and costs. For | 31 |
| purposes of this subparagraph, "intangible property" | 32 |
| includes patents, patent applications, trade names, | 33 |
| trademarks, service marks, copyrights, mask works, | 34 |
| trade secrets, and similar types of intangible assets. |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| This paragraph shall not apply to the following: | 2 |
| (i) any item of intangible expenses or costs paid, | 3 |
| accrued, or incurred, directly or indirectly, from | 4 |
| a transaction with a foreign person who is subject | 5 |
| in a foreign country or state, other than a state | 6 |
| which requires mandatory unitary reporting, to a | 7 |
| tax on or measured by net income with respect to | 8 |
| such item; or | 9 |
| (ii) any item of intangible expense or cost paid, | 10 |
| accrued, or incurred, directly or indirectly, if | 11 |
| the taxpayer can establish, based on a | 12 |
| preponderance of the evidence, both of the | 13 |
| following: | 14 |
| (a) the foreign person during the same taxable | 15 |
| year paid, accrued, or incurred, the | 16 |
| intangible expense or cost to a person that is | 17 |
| not a related member, and | 18 |
| (b) the transaction giving rise to the | 19 |
| intangible expense or cost between the | 20 |
| taxpayer and the foreign person did not have as | 21 |
| a principal purpose the avoidance of Illinois | 22 |
| income tax, and is paid pursuant to a contract | 23 |
| or agreement that reflects arms length terms; | 24 |
| or | 25 |
| (iii) any item of intangible expense or | 26 |
| cost paid, accrued, or incurred, directly or | 27 |
| indirectly, from a transaction with a foreign | 28 |
| person if the taxpayer establishes by clear and | 29 |
| convincing evidence, that the adjustments are | 30 |
| unreasonable; or if the taxpayer and the Director | 31 |
| agree in writing to the application or use of an | 32 |
| alternative method of apportionment under section | 33 |
| 304(f);
| 34 |
| Nothing in this subsection shall preclude the |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| Director from making any other adjustment | 2 |
| otherwise allowed under Section 404 of this Act for | 3 |
| any tax year beginning after the effective date of | 4 |
| this amendment provided such adjustment is made | 5 |
| pursuant to regulation adopted by the Department | 6 |
| and such regulations provide methods and standards | 7 |
| by which the Department will utilize its authority | 8 |
| under Section 404 of this Act;
| 9 |
| and by deducting from the total so obtained the sum of the | 10 |
| following
amounts:
| 11 |
| (H) An amount equal to all amounts included in such | 12 |
| total pursuant
to the provisions of Sections 402(a), | 13 |
| 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the | 14 |
| Internal Revenue Code or included in such total as
| 15 |
| distributions under the provisions of any retirement | 16 |
| or disability plan for
employees of any governmental | 17 |
| agency or unit, or retirement payments to
retired | 18 |
| partners, which payments are excluded in computing net | 19 |
| earnings
from self employment by Section 1402 of the | 20 |
| Internal Revenue Code and
regulations adopted pursuant | 21 |
| thereto;
| 22 |
| (I) The valuation limitation amount;
| 23 |
| (J) An amount equal to the amount of any tax | 24 |
| imposed by this Act
which was refunded to the taxpayer | 25 |
| and included in such total for the
taxable year;
| 26 |
| (K) An amount equal to all amounts included in | 27 |
| taxable income as
modified by subparagraphs (A), (B), | 28 |
| (C), (D), (E), (F) and (G) which
are exempt from | 29 |
| taxation by this State either by reason of its statutes | 30 |
| or
Constitution
or by reason of the Constitution, | 31 |
| treaties or statutes of the United States;
provided | 32 |
| that, in the case of any statute of this State that | 33 |
| exempts income
derived from bonds or other obligations | 34 |
| from the tax imposed under this Act,
the amount |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| exempted shall be the interest net of bond premium | 2 |
| amortization;
| 3 |
| (L) With the exception of any amounts subtracted | 4 |
| under subparagraph
(K),
an amount equal to the sum of | 5 |
| all amounts disallowed as
deductions by (i) Sections | 6 |
| 171(a) (2) and 265(a)(2) of the Internal Revenue
Code, | 7 |
| as now or hereafter amended, and all amounts of | 8 |
| expenses allocable
to interest and disallowed as | 9 |
| deductions by Section 265(1) of the Internal
Revenue | 10 |
| Code of 1954, as now or hereafter amended;
and (ii) for | 11 |
| taxable years
ending on or after August 13, 1999, | 12 |
| Sections
171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | 13 |
| the Internal Revenue Code; the provisions of this
| 14 |
| subparagraph are exempt from the provisions of Section | 15 |
| 250;
| 16 |
| (M) An amount equal to those dividends included in | 17 |
| such total
which were paid by a corporation which | 18 |
| conducts business operations in an
Enterprise Zone or | 19 |
| zones created under the Illinois Enterprise Zone Act | 20 |
| and
conducts substantially all of its operations in an | 21 |
| Enterprise Zone or Zones;
| 22 |
| (N) An amount equal to any contribution made to a | 23 |
| job training
project established pursuant to the Tax | 24 |
| Increment Allocation
Redevelopment Act;
| 25 |
| (O) An amount equal to those dividends included in | 26 |
| such total
that were paid by a corporation that | 27 |
| conducts business operations in a
federally designated | 28 |
| Foreign Trade Zone or Sub-Zone and that is designated
a | 29 |
| High Impact Business located in Illinois; provided | 30 |
| that dividends eligible
for the deduction provided in | 31 |
| subparagraph (M) of paragraph (2) of this
subsection | 32 |
| shall not be eligible for the deduction provided under | 33 |
| this
subparagraph (O);
| 34 |
| (P) An amount equal to the amount of the deduction |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| used to compute the
federal income tax credit for | 2 |
| restoration of substantial amounts held under
claim of | 3 |
| right for the taxable year pursuant to Section 1341 of | 4 |
| the
Internal Revenue Code of 1986;
| 5 |
| (Q) For taxable year 1999 and thereafter, an amount | 6 |
| equal to the
amount of any
(i) distributions, to the | 7 |
| extent includible in gross income for
federal income | 8 |
| tax purposes, made to the taxpayer because of
his or | 9 |
| her status as a victim of
persecution for racial or | 10 |
| religious reasons by Nazi Germany or any other Axis
| 11 |
| regime or as an heir of the victim and (ii) items
of | 12 |
| income, to the extent
includible in gross income for | 13 |
| federal income tax purposes, attributable to,
derived | 14 |
| from or in any way related to assets stolen from, | 15 |
| hidden from, or
otherwise lost to a victim of
| 16 |
| persecution for racial or religious reasons by Nazi
| 17 |
| Germany or any other Axis regime
immediately prior to, | 18 |
| during, and immediately after World War II, including,
| 19 |
| but
not limited to, interest on the proceeds receivable | 20 |
| as insurance
under policies issued to a victim of | 21 |
| persecution for racial or religious
reasons by Nazi | 22 |
| Germany or any other Axis regime by European insurance
| 23 |
| companies
immediately prior to and during World War II;
| 24 |
| provided, however, this subtraction from federal | 25 |
| adjusted gross income does not
apply to assets acquired | 26 |
| with such assets or with the proceeds from the sale of
| 27 |
| such assets; provided, further, this paragraph shall | 28 |
| only apply to a taxpayer
who was the first recipient of | 29 |
| such assets after their recovery and who is a
victim of
| 30 |
| persecution for racial or religious reasons
by Nazi | 31 |
| Germany or any other Axis regime or as an heir of the | 32 |
| victim. The
amount of and the eligibility for any | 33 |
| public assistance, benefit, or
similar entitlement is | 34 |
| not affected by the inclusion of items (i) and (ii) of
|
|
|
|
09300SB2207ham002 |
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|
| 1 |
| this paragraph in gross income for federal income tax | 2 |
| purposes.
This paragraph is exempt from the provisions | 3 |
| of Section 250;
| 4 |
| (R) For taxable years 2001 and thereafter, for the | 5 |
| taxable year in
which the bonus depreciation deduction | 6 |
| (30% of the adjusted basis of the
qualified property) | 7 |
| is taken on the taxpayer's federal income tax return | 8 |
| under
subsection (k) of Section 168 of the Internal | 9 |
| Revenue Code and for each
applicable taxable year | 10 |
| thereafter, an amount equal to "x", where:
| 11 |
| (1) "y" equals the amount of the depreciation | 12 |
| deduction taken for the
taxable year
on the | 13 |
| taxpayer's federal income tax return on property | 14 |
| for which the bonus
depreciation deduction (30% of | 15 |
| the adjusted basis of the qualified property)
was | 16 |
| taken in any year under subsection (k) of Section | 17 |
| 168 of the Internal
Revenue Code, but not including | 18 |
| the bonus depreciation deduction; and
| 19 |
| (2) "x" equals "y" multiplied by 30 and then | 20 |
| divided by 70 (or "y"
multiplied by 0.429).
| 21 |
| The aggregate amount deducted under this | 22 |
| subparagraph in all taxable
years for any one piece of | 23 |
| property may not exceed the amount of the bonus
| 24 |
| depreciation deduction (30% of the adjusted basis of | 25 |
| the qualified property)
taken on that property on the | 26 |
| taxpayer's federal income tax return under
subsection | 27 |
| (k) of Section 168 of the Internal Revenue Code; and
| 28 |
| (S) If the taxpayer reports a capital gain or loss | 29 |
| on the taxpayer's
federal income tax return for the | 30 |
| taxable year based on a sale or transfer of
property | 31 |
| for which the taxpayer was required in any taxable year | 32 |
| to make an
addition modification under subparagraph | 33 |
| (G-10), then an amount equal to that
addition | 34 |
| modification.
|
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| The taxpayer is allowed to take the deduction under | 2 |
| this subparagraph
only once with respect to any one | 3 |
| piece of property ;
.
| 4 |
| (T) The amount of (i) any interest income (net of | 5 |
| the deductions allocable thereto) taken into account | 6 |
| for the taxable year with respect to a transaction with | 7 |
| a taxpayer that is required to make an addition | 8 |
| modification with respect to such transaction under | 9 |
| Section 203(a)(2)(D-17), 203(b)(2)(E-12), | 10 |
| 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | 11 |
| the amount of such addition modification and
(ii) any | 12 |
| income from intangible property (net of the deductions | 13 |
| allocable thereto) taken into account for the taxable | 14 |
| year with respect to a transaction with a taxpayer that | 15 |
| is required to make an addition modification with | 16 |
| respect to such transaction under Section | 17 |
| 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | 18 |
| 203(d)(2)(D-8), but not to exceed the amount of such | 19 |
| addition modification;
| 20 |
| (U) An amount equal to the interest income taken | 21 |
| into account for the taxable year (net of the | 22 |
| deductions allocable thereto) with respect to | 23 |
| transactions with a foreign person who would be a | 24 |
| member of the taxpayer's unitary business group but for | 25 |
| the fact the foreign person's business activity | 26 |
| outside the United States is 80% or more of that | 27 |
| person's total business activity, but not to exceed the | 28 |
| addition modification required to be made for the same | 29 |
| taxable year under Section 203(c)(2)(G-12) for | 30 |
| interest paid, accrued, or incurred, directly or | 31 |
| indirectly, to the same foreign person; and
| 32 |
| (V) An amount equal to the income from intangible | 33 |
| property taken into account for the taxable year (net | 34 |
| of the deductions allocable thereto) with respect to |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| transactions with a foreign person who would be a | 2 |
| member of the taxpayer's unitary business group but for | 3 |
| the fact that the foreign person's business activity | 4 |
| outside the United States is 80% or more of that | 5 |
| person's total business activity, but not to exceed the | 6 |
| addition modification required to be made for the same | 7 |
| taxable year under Section 203(c)(2)(G-13) for | 8 |
| intangible expenses and costs paid, accrued, or | 9 |
| incurred, directly or indirectly, to the same foreign | 10 |
| person.
| 11 |
| (3) Limitation. The amount of any modification | 12 |
| otherwise required
under this subsection shall, under | 13 |
| regulations prescribed by the
Department, be adjusted by | 14 |
| any amounts included therein which were
properly paid, | 15 |
| credited, or required to be distributed, or permanently set
| 16 |
| aside for charitable purposes pursuant to Internal Revenue | 17 |
| Code Section
642(c) during the taxable year.
| 18 |
| (d) Partnerships.
| 19 |
| (1) In general. In the case of a partnership, base | 20 |
| income means an
amount equal to the taxpayer's taxable | 21 |
| income for the taxable year as
modified by paragraph (2).
| 22 |
| (2) Modifications. The taxable income referred to in | 23 |
| paragraph (1)
shall be modified by adding thereto the sum | 24 |
| of the following amounts:
| 25 |
| (A) An amount equal to all amounts paid or accrued | 26 |
| to the taxpayer as
interest or dividends during the | 27 |
| taxable year to the extent excluded from
gross income | 28 |
| in the computation of taxable income;
| 29 |
| (B) An amount equal to the amount of tax imposed by | 30 |
| this Act to the
extent deducted from gross income for | 31 |
| the taxable year;
| 32 |
| (C) The amount of deductions allowed to the | 33 |
| partnership pursuant to
Section 707 (c) of the Internal |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| Revenue Code in calculating its taxable income;
| 2 |
| (D) An amount equal to the amount of the capital | 3 |
| gain deduction
allowable under the Internal Revenue | 4 |
| Code, to the extent deducted from
gross income in the | 5 |
| computation of taxable income;
| 6 |
| (D-5) For taxable years 2001 and thereafter, an | 7 |
| amount equal to the
bonus depreciation deduction (30% | 8 |
| of the adjusted basis of the qualified
property) taken | 9 |
| on the taxpayer's federal income tax return for the | 10 |
| taxable
year under subsection (k) of Section 168 of the | 11 |
| Internal Revenue Code; and
| 12 |
| (D-6) If the taxpayer reports a capital gain or | 13 |
| loss on the taxpayer's
federal income tax return for | 14 |
| the taxable year based on a sale or transfer of
| 15 |
| property for which the taxpayer was required in any | 16 |
| taxable year to make an
addition modification under | 17 |
| subparagraph (D-5), then an amount equal to the
| 18 |
| aggregate amount of the deductions taken in all taxable | 19 |
| years
under subparagraph (O) with respect to that | 20 |
| property;
| 21 |
| The taxpayer is required to make the addition | 22 |
| modification under this
subparagraph
only once with | 23 |
| respect to any one piece of property;
| 24 |
| (D-7) For taxable years ending on or after December | 25 |
| 31, 2004, an amount equal to the amount otherwise | 26 |
| allowed as a deduction in computing base income for | 27 |
| interest paid, accrued, or incurred, directly or | 28 |
| indirectly, to a foreign person who would be a member | 29 |
| of the same unitary business group but for the fact the | 30 |
| foreign person's business activity outside the United | 31 |
| States is 80% or more of the foreign person's total | 32 |
| business activity. The addition modification required | 33 |
| by this subparagraph shall be reduced to the extent | 34 |
| that dividends were included in base income of the |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| unitary group for the same taxable year and received by | 2 |
| the taxpayer or by a member of the taxpayer's unitary | 3 |
| business group (including amounts included in gross | 4 |
| income pursuant to Sections 951 through 964 of the | 5 |
| Internal Revenue Code and amounts included in gross | 6 |
| income under Section 78 of the Internal Revenue Code) | 7 |
| with respect to the stock of the same person to whom | 8 |
| the interest was paid, accrued, or incurred.
| 9 |
| This paragraph shall not apply to the following:
| 10 |
| (i) an item of interest paid, accrued, or | 11 |
| incurred, directly or indirectly, to a foreign | 12 |
| person who is subject in a foreign country or | 13 |
| state, other than a state which requires mandatory | 14 |
| unitary reporting, to a tax on or measured by net | 15 |
| income with respect to such interest; or | 16 |
| (ii) an item of interest paid, accrued, or | 17 |
| incurred, directly or indirectly, to a foreign | 18 |
| person if the taxpayer can establish, based on a | 19 |
| preponderance of the evidence, both of the | 20 |
| following: | 21 |
| (a) the foreign person, during the same | 22 |
| taxable year, paid, accrued, or incurred, the | 23 |
| interest to a person that is not a related | 24 |
| member, and | 25 |
| (b) the transaction giving rise to the | 26 |
| interest expense between the taxpayer and the | 27 |
| foreign person did not have as a principal | 28 |
| purpose the avoidance of Illinois income tax, | 29 |
| and is paid pursuant to a contract or agreement | 30 |
| that reflects an arms-length interest rate and | 31 |
| terms; or
| 32 |
| (iii) the taxpayer can establish, based on | 33 |
| clear and convincing evidence, that the interest | 34 |
| paid, accrued, or incurred relates to a contract or |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| agreement entered into at arm's length rates and | 2 |
| terms and the principal purpose for the payment is | 3 |
| not federal or Illinois tax avoidance; or
| 4 |
| (iv) an item of interest paid, accrued, or | 5 |
| incurred, directly or indirectly, to a foreign | 6 |
| person if the taxpayer establishes by clear and | 7 |
| convincing evidence that the adjustments are | 8 |
| unreasonable; or if the taxpayer and the Director | 9 |
| agree in writing to the application or use of an | 10 |
| alternative method of apportionment under Section | 11 |
| 304(f).
| 12 |
| Nothing in this subsection shall preclude the | 13 |
| Director from making any other adjustment | 14 |
| otherwise allowed under Section 404 of this Act for | 15 |
| any tax year beginning after the effective date of | 16 |
| this amendment provided such adjustment is made | 17 |
| pursuant to regulation adopted by the Department | 18 |
| and such regulations provide methods and standards | 19 |
| by which the Department will utilize its authority | 20 |
| under Section 404 of this Act; and
| 21 |
| (D-8) For taxable years ending on or after December | 22 |
| 31, 2004, an amount equal to the amount of intangible | 23 |
| expenses and costs otherwise allowed as a deduction in | 24 |
| computing base income, and that were paid, accrued, or | 25 |
| incurred, directly or indirectly, to a foreign person | 26 |
| who would be a member of the same unitary business | 27 |
| group but for the fact that the foreign person's | 28 |
| business activity outside the United States is 80% or | 29 |
| more of that person's total business activity. The | 30 |
| addition modification required by this subparagraph | 31 |
| shall be reduced to the extent that dividends were | 32 |
| included in base income of the unitary group for the | 33 |
| same taxable year and received by the taxpayer or by a | 34 |
| member of the taxpayer's unitary business group |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| (including amounts included in gross income pursuant | 2 |
| to Sections 951 through 964 of the Internal Revenue | 3 |
| Code and amounts included in gross income under Section | 4 |
| 78 of the Internal Revenue Code) with respect to the | 5 |
| stock of the same person to whom the intangible | 6 |
| expenses and costs were directly or indirectly paid, | 7 |
| incurred or accrued. The preceding sentence shall not | 8 |
| apply to the extent that the same dividends caused a | 9 |
| reduction to the addition modification required under | 10 |
| Section 203(d)(2)(D-7) of this Act. As used in this | 11 |
| subparagraph, the term "intangible expenses and costs" | 12 |
| includes (1) expenses, losses, and costs for, or | 13 |
| related to, the direct or indirect acquisition, use, | 14 |
| maintenance or management, ownership, sale, exchange, | 15 |
| or any other disposition of intangible property; (2) | 16 |
| losses incurred, directly or indirectly, from | 17 |
| factoring transactions or discounting transactions; | 18 |
| (3) royalty, patent, technical, and copyright fees; | 19 |
| (4) licensing fees; and (5) other similar expenses and | 20 |
| costs. For purposes of this subparagraph, "intangible | 21 |
| property" includes patents, patent applications, trade | 22 |
| names, trademarks, service marks, copyrights, mask | 23 |
| works, trade secrets, and similar types of intangible | 24 |
| assets; | 25 |
| This paragraph shall not apply to the following: | 26 |
| (i) any item of intangible expenses or costs paid, | 27 |
| accrued, or incurred, directly or indirectly, from | 28 |
| a transaction with a foreign person who is subject | 29 |
| in a foreign country or state, other than a state | 30 |
| which requires mandatory unitary reporting, to a | 31 |
| tax on or measured by net income with respect to | 32 |
| such item; or | 33 |
| (ii) any item of intangible expense or cost paid, | 34 |
| accrued, or incurred, directly or indirectly, if |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| the taxpayer can establish, based on a | 2 |
| preponderance of the evidence, both of the | 3 |
| following: | 4 |
| (a) the foreign person during the same taxable | 5 |
| year paid, accrued, or incurred, the | 6 |
| intangible expense or cost to a person that is | 7 |
| not a related member, and | 8 |
| (b) the transaction giving rise to the | 9 |
| intangible expense or cost between the | 10 |
| taxpayer and the foreign person did not have as | 11 |
| a principal purpose the avoidance of Illinois | 12 |
| income tax, and is paid pursuant to a contract | 13 |
| or agreement that reflects arms length terms; | 14 |
| or | 15 |
| (iii) any item of intangible expense or | 16 |
| cost paid, accrued, or incurred, directly or | 17 |
| indirectly, from a transaction with a foreign | 18 |
| person if the taxpayer establishes by clear and | 19 |
| convincing evidence, that the adjustments are | 20 |
| unreasonable; or if the taxpayer and the Director | 21 |
| agree in writing to the application or use of an | 22 |
| alternative method of apportionment under section | 23 |
| 304(f);
| 24 |
| Nothing in this subsection shall preclude the | 25 |
| Director from making any other adjustment | 26 |
| otherwise allowed under Section 404 of this Act for | 27 |
| any tax year beginning after the effective date of | 28 |
| this amendment provided such adjustment is made | 29 |
| pursuant to regulation adopted by the Department | 30 |
| and such regulations provide methods and standards | 31 |
| by which the Department will utilize its authority | 32 |
| under Section 404 of this Act;
| 33 |
| and by deducting from the total so obtained the following | 34 |
| amounts:
|
|
|
|
09300SB2207ham002 |
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|
| 1 |
| (E) The valuation limitation amount;
| 2 |
| (F) An amount equal to the amount of any tax | 3 |
| imposed by this Act which
was refunded to the taxpayer | 4 |
| and included in such total for the taxable year;
| 5 |
| (G) An amount equal to all amounts included in | 6 |
| taxable income as
modified by subparagraphs (A), (B), | 7 |
| (C) and (D) which are exempt from
taxation by this | 8 |
| State either by reason of its statutes or Constitution | 9 |
| or
by reason of
the Constitution, treaties or statutes | 10 |
| of the United States;
provided that, in the case of any | 11 |
| statute of this State that exempts income
derived from | 12 |
| bonds or other obligations from the tax imposed under | 13 |
| this Act,
the amount exempted shall be the interest net | 14 |
| of bond premium amortization;
| 15 |
| (H) Any income of the partnership which | 16 |
| constitutes personal service
income as defined in | 17 |
| Section 1348 (b) (1) of the Internal Revenue Code (as
| 18 |
| in effect December 31, 1981) or a reasonable allowance | 19 |
| for compensation
paid or accrued for services rendered | 20 |
| by partners to the partnership,
whichever is greater;
| 21 |
| (I) An amount equal to all amounts of income | 22 |
| distributable to an entity
subject to the Personal | 23 |
| Property Tax Replacement Income Tax imposed by
| 24 |
| subsections (c) and (d) of Section 201 of this Act | 25 |
| including amounts
distributable to organizations | 26 |
| exempt from federal income tax by reason of
Section | 27 |
| 501(a) of the Internal Revenue Code;
| 28 |
| (J) With the exception of any amounts subtracted | 29 |
| under subparagraph
(G),
an amount equal to the sum of | 30 |
| all amounts disallowed as deductions
by (i) Sections | 31 |
| 171(a) (2), and 265(2) of the Internal Revenue Code of | 32 |
| 1954,
as now or hereafter amended, and all amounts of | 33 |
| expenses allocable to
interest and disallowed as | 34 |
| deductions by Section 265(1) of the Internal
Revenue |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| Code, as now or hereafter amended;
and (ii) for taxable | 2 |
| years
ending on or after August 13, 1999, Sections
| 3 |
| 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of the | 4 |
| Internal Revenue Code; the provisions of this
| 5 |
| subparagraph are exempt from the provisions of Section | 6 |
| 250;
| 7 |
| (K) An amount equal to those dividends included in | 8 |
| such total which were
paid by a corporation which | 9 |
| conducts business operations in an Enterprise
Zone or | 10 |
| zones created under the Illinois Enterprise Zone Act, | 11 |
| enacted by
the 82nd General Assembly, and
conducts | 12 |
| substantially all of its operations
in an Enterprise | 13 |
| Zone or Zones;
| 14 |
| (L) An amount equal to any contribution made to a | 15 |
| job training project
established pursuant to the Real | 16 |
| Property Tax Increment Allocation
Redevelopment Act;
| 17 |
| (M) An amount equal to those dividends included in | 18 |
| such total
that were paid by a corporation that | 19 |
| conducts business operations in a
federally designated | 20 |
| Foreign Trade Zone or Sub-Zone and that is designated a
| 21 |
| High Impact Business located in Illinois; provided | 22 |
| that dividends eligible
for the deduction provided in | 23 |
| subparagraph (K) of paragraph (2) of this
subsection | 24 |
| shall not be eligible for the deduction provided under | 25 |
| this
subparagraph (M);
| 26 |
| (N) An amount equal to the amount of the deduction | 27 |
| used to compute the
federal income tax credit for | 28 |
| restoration of substantial amounts held under
claim of | 29 |
| right for the taxable year pursuant to Section 1341 of | 30 |
| the
Internal Revenue Code of 1986;
| 31 |
| (O) For taxable years 2001 and thereafter, for the | 32 |
| taxable year in
which the bonus depreciation deduction | 33 |
| (30% of the adjusted basis of the
qualified property) | 34 |
| is taken on the taxpayer's federal income tax return |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| under
subsection (k) of Section 168 of the Internal | 2 |
| Revenue Code and for each
applicable taxable year | 3 |
| thereafter, an amount equal to "x", where:
| 4 |
| (1) "y" equals the amount of the depreciation | 5 |
| deduction taken for the
taxable year
on the | 6 |
| taxpayer's federal income tax return on property | 7 |
| for which the bonus
depreciation deduction (30% of | 8 |
| the adjusted basis of the qualified property)
was | 9 |
| taken in any year under subsection (k) of Section | 10 |
| 168 of the Internal
Revenue Code, but not including | 11 |
| the bonus depreciation deduction; and
| 12 |
| (2) "x" equals "y" multiplied by 30 and then | 13 |
| divided by 70 (or "y"
multiplied by 0.429).
| 14 |
| The aggregate amount deducted under this | 15 |
| subparagraph in all taxable
years for any one piece of | 16 |
| property may not exceed the amount of the bonus
| 17 |
| depreciation deduction (30% of the adjusted basis of | 18 |
| the qualified property)
taken on that property on the | 19 |
| taxpayer's federal income tax return under
subsection | 20 |
| (k) of Section 168 of the Internal Revenue Code; and
| 21 |
| (P) If the taxpayer reports a capital gain or loss | 22 |
| on the taxpayer's
federal income tax return for the | 23 |
| taxable year based on a sale or transfer of
property | 24 |
| for which the taxpayer was required in any taxable year | 25 |
| to make an
addition modification under subparagraph | 26 |
| (D-5), then an amount equal to that
addition | 27 |
| modification.
| 28 |
| The taxpayer is allowed to take the deduction under | 29 |
| this subparagraph
only once with respect to any one | 30 |
| piece of property ;
.
| 31 |
| (Q) The amount of (i) any interest income (net of | 32 |
| the deductions allocable thereto) taken into account | 33 |
| for the taxable year with respect to a transaction with | 34 |
| a taxpayer that is required to make an addition |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| modification with respect to such transaction under | 2 |
| Section 203(a)(2)(D-17), 203(b)(2)(E-12), | 3 |
| 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | 4 |
| the amount of such addition modification and
(ii) any | 5 |
| income from intangible property (net of the deductions | 6 |
| allocable thereto) taken into account for the taxable | 7 |
| year with respect to a transaction with a taxpayer that | 8 |
| is required to make an addition modification with | 9 |
| respect to such transaction under Section | 10 |
| 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | 11 |
| 203(d)(2)(D-8), but not to exceed the amount of such | 12 |
| addition modification;
| 13 |
| (R) An amount equal to the interest income taken | 14 |
| into account for the taxable year (net of the | 15 |
| deductions allocable thereto) with respect to | 16 |
| transactions with a foreign person who would be a | 17 |
| member of the taxpayer's unitary business group but for | 18 |
| the fact that the foreign person's business activity | 19 |
| outside the United States is 80% or more of that | 20 |
| person's total business activity, but not to exceed the | 21 |
| addition modification required to be made for the same | 22 |
| taxable year under Section 203(d)(2)(D-7) for interest | 23 |
| paid, accrued, or incurred, directly or indirectly, to | 24 |
| the same foreign person; and
| 25 |
| (S) An amount equal to the income from intangible | 26 |
| property taken into account for the taxable year (net | 27 |
| of the deductions allocable thereto) with respect to | 28 |
| transactions with a foreign person who would be a | 29 |
| member of the taxpayer's unitary business group but for | 30 |
| the fact that the foreign person's business activity | 31 |
| outside the United States is 80% or more of that | 32 |
| person's total business activity, but not to exceed the | 33 |
| addition modification required to be made for the same | 34 |
| taxable year under Section 203(d)(2)(D-8) for |
|
|
|
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|
| 1 |
| intangible expenses and costs paid, accrued, or | 2 |
| incurred, directly or indirectly, to the same foreign | 3 |
| person.
| 4 |
| (e) Gross income; adjusted gross income; taxable income.
| 5 |
| (1) In general. Subject to the provisions of paragraph | 6 |
| (2) and
subsection (b) (3), for purposes of this Section | 7 |
| and Section 803(e), a
taxpayer's gross income, adjusted | 8 |
| gross income, or taxable income for
the taxable year shall | 9 |
| mean the amount of gross income, adjusted gross
income or | 10 |
| taxable income properly reportable for federal income tax
| 11 |
| purposes for the taxable year under the provisions of the | 12 |
| Internal
Revenue Code. Taxable income may be less than | 13 |
| zero. However, for taxable
years ending on or after | 14 |
| December 31, 1986, net operating loss
carryforwards from | 15 |
| taxable years ending prior to December 31, 1986, may not
| 16 |
| exceed the sum of federal taxable income for the taxable | 17 |
| year before net
operating loss deduction, plus the excess | 18 |
| of addition modifications over
subtraction modifications | 19 |
| for the taxable year. For taxable years ending
prior to | 20 |
| December 31, 1986, taxable income may never be an amount in | 21 |
| excess
of the net operating loss for the taxable year as | 22 |
| defined in subsections
(c) and (d) of Section 172 of the | 23 |
| Internal Revenue Code, provided that when
taxable income of | 24 |
| a corporation (other than a Subchapter S corporation),
| 25 |
| trust, or estate is less than zero and addition | 26 |
| modifications, other than
those provided by subparagraph | 27 |
| (E) of paragraph (2) of subsection (b) for
corporations or | 28 |
| subparagraph (E) of paragraph (2) of subsection (c) for
| 29 |
| trusts and estates, exceed subtraction modifications, an | 30 |
| addition
modification must be made under those | 31 |
| subparagraphs for any other taxable
year to which the | 32 |
| taxable income less than zero (net operating loss) is
| 33 |
| applied under Section 172 of the Internal Revenue Code or |
|
|
|
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|
| 1 |
| under
subparagraph (E) of paragraph (2) of this subsection | 2 |
| (e) applied in
conjunction with Section 172 of the Internal | 3 |
| Revenue Code.
| 4 |
| (2) Special rule. For purposes of paragraph (1) of this | 5 |
| subsection,
the taxable income properly reportable for | 6 |
| federal income tax purposes
shall mean:
| 7 |
| (A) Certain life insurance companies. In the case | 8 |
| of a life
insurance company subject to the tax imposed | 9 |
| by Section 801 of the
Internal Revenue Code, life | 10 |
| insurance company taxable income, plus the
amount of | 11 |
| distribution from pre-1984 policyholder surplus | 12 |
| accounts as
calculated under Section 815a of the | 13 |
| Internal Revenue Code;
| 14 |
| (B) Certain other insurance companies. In the case | 15 |
| of mutual
insurance companies subject to the tax | 16 |
| imposed by Section 831 of the
Internal Revenue Code, | 17 |
| insurance company taxable income;
| 18 |
| (C) Regulated investment companies. In the case of | 19 |
| a regulated
investment company subject to the tax | 20 |
| imposed by Section 852 of the
Internal Revenue Code, | 21 |
| investment company taxable income;
| 22 |
| (D) Real estate investment trusts. In the case of a | 23 |
| real estate
investment trust subject to the tax imposed | 24 |
| by Section 857 of the
Internal Revenue Code, real | 25 |
| estate investment trust taxable income;
| 26 |
| (E) Consolidated corporations. In the case of a | 27 |
| corporation which
is a member of an affiliated group of | 28 |
| corporations filing a consolidated
income tax return | 29 |
| for the taxable year for federal income tax purposes,
| 30 |
| taxable income determined as if such corporation had | 31 |
| filed a separate
return for federal income tax purposes | 32 |
| for the taxable year and each
preceding taxable year | 33 |
| for which it was a member of an affiliated group.
For | 34 |
| purposes of this subparagraph, the taxpayer's separate |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| taxable
income shall be determined as if the election | 2 |
| provided by Section
243(b) (2) of the Internal Revenue | 3 |
| Code had been in effect for all such years;
| 4 |
| (F) Cooperatives. In the case of a cooperative | 5 |
| corporation or
association, the taxable income of such | 6 |
| organization determined in
accordance with the | 7 |
| provisions of Section 1381 through 1388 of the
Internal | 8 |
| Revenue Code;
| 9 |
| (G) Subchapter S corporations. In the case of: (i) | 10 |
| a Subchapter S
corporation for which there is in effect | 11 |
| an election for the taxable year
under Section 1362 of | 12 |
| the Internal Revenue Code, the taxable income of such
| 13 |
| corporation determined in accordance with Section | 14 |
| 1363(b) of the Internal
Revenue Code, except that | 15 |
| taxable income shall take into
account those items | 16 |
| which are required by Section 1363(b)(1) of the
| 17 |
| Internal Revenue Code to be separately stated; and (ii) | 18 |
| a Subchapter
S corporation for which there is in effect | 19 |
| a federal election to opt out of
the provisions of the | 20 |
| Subchapter S Revision Act of 1982 and have applied
| 21 |
| instead the prior federal Subchapter S rules as in | 22 |
| effect on July 1, 1982,
the taxable income of such | 23 |
| corporation determined in accordance with the
federal | 24 |
| Subchapter S rules as in effect on July 1, 1982; and
| 25 |
| (H) Partnerships. In the case of a partnership, | 26 |
| taxable income
determined in accordance with Section | 27 |
| 703 of the Internal Revenue Code,
except that taxable | 28 |
| income shall take into account those items which are
| 29 |
| required by Section 703(a)(1) to be separately stated | 30 |
| but which would be
taken into account by an individual | 31 |
| in calculating his taxable income.
| 32 |
| (3) Recapture of business expenses on disposition of | 33 |
| asset or business. Notwithstanding any other law to the | 34 |
| contrary, if in prior years income from an asset or |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| business has been classified as business income and in a | 2 |
| later year is demonstrated to be non-business income, then | 3 |
| all expenses, without limitation, deducted in such later | 4 |
| year and in the 2 immediately-preceding taxable years | 5 |
| related to that asset or business that generated the | 6 |
| non-business income shall be added back and recaptured as | 7 |
| business income in the year of the disposition of the asset | 8 |
| or business. Such amount shall be apportioned to Illinois | 9 |
| using the greater of the apportionment fraction computed | 10 |
| for the business under Section 304 of this Act for the | 11 |
| taxable year or the average of the apportionment fractions | 12 |
| computed for the business under Section 304 of this Act for | 13 |
| the taxable year and for the 2 immediately preceding | 14 |
| taxable years.
| 15 |
| (f) Valuation limitation amount.
| 16 |
| (1) In general. The valuation limitation amount | 17 |
| referred to in
subsections (a) (2) (G), (c) (2) (I) and | 18 |
| (d)(2) (E) is an amount equal to:
| 19 |
| (A) The sum of the pre-August 1, 1969 appreciation | 20 |
| amounts (to the
extent consisting of gain reportable | 21 |
| under the provisions of Section
1245 or 1250 of the | 22 |
| Internal Revenue Code) for all property in respect
of | 23 |
| which such gain was reported for the taxable year; plus
| 24 |
| (B) The lesser of (i) the sum of the pre-August 1, | 25 |
| 1969 appreciation
amounts (to the extent consisting of | 26 |
| capital gain) for all property in
respect of which such | 27 |
| gain was reported for federal income tax purposes
for | 28 |
| the taxable year, or (ii) the net capital gain for the | 29 |
| taxable year,
reduced in either case by any amount of | 30 |
| such gain included in the amount
determined under | 31 |
| subsection (a) (2) (F) or (c) (2) (H).
| 32 |
| (2) Pre-August 1, 1969 appreciation amount.
| 33 |
| (A) If the fair market value of property referred | 34 |
| to in paragraph
(1) was readily ascertainable on August |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| 1, 1969, the pre-August 1, 1969
appreciation amount for | 2 |
| such property is the lesser of (i) the excess of
such | 3 |
| fair market value over the taxpayer's basis (for | 4 |
| determining gain)
for such property on that date | 5 |
| (determined under the Internal Revenue
Code as in | 6 |
| effect on that date), or (ii) the total gain realized | 7 |
| and
reportable for federal income tax purposes in | 8 |
| respect of the sale,
exchange or other disposition of | 9 |
| such property.
| 10 |
| (B) If the fair market value of property referred | 11 |
| to in paragraph
(1) was not readily ascertainable on | 12 |
| August 1, 1969, the pre-August 1,
1969 appreciation | 13 |
| amount for such property is that amount which bears
the | 14 |
| same ratio to the total gain reported in respect of the | 15 |
| property for
federal income tax purposes for the | 16 |
| taxable year, as the number of full
calendar months in | 17 |
| that part of the taxpayer's holding period for the
| 18 |
| property ending July 31, 1969 bears to the number of | 19 |
| full calendar
months in the taxpayer's entire holding | 20 |
| period for the
property.
| 21 |
| (C) The Department shall prescribe such | 22 |
| regulations as may be
necessary to carry out the | 23 |
| purposes of this paragraph.
| 24 |
| (g) Double deductions. Unless specifically provided | 25 |
| otherwise, nothing
in this Section shall permit the same item | 26 |
| to be deducted more than once.
| 27 |
| (h) Legislative intention. Except as expressly provided by | 28 |
| this
Section there shall be no modifications or limitations on | 29 |
| the amounts
of income, gain, loss or deduction taken into | 30 |
| account in determining
gross income, adjusted gross income or | 31 |
| taxable income for federal income
tax purposes for the taxable | 32 |
| year, or in the amount of such items
entering into the |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| computation of base income and net income under this
Act for | 2 |
| such taxable year, whether in respect of property values as of
| 3 |
| August 1, 1969 or otherwise.
| 4 |
| (Source: P.A. 91-192, eff. 7-20-99; 91-205, eff. 7-20-99; | 5 |
| 91-357, eff.
7-29-99; 91-541, eff. 8-13-99; 91-676, eff. | 6 |
| 12-23-99; 91-845, eff. 6-22-00;
91-913, eff. 1-1-01; 92-16, | 7 |
| eff. 6-28-01; 92-244, eff. 8-3-01; 92-439, eff.
8-17-01; | 8 |
| 92-603, eff. 6-28-02; 92-626, eff. 7-11-02; 92-651, eff. | 9 |
| 7-11-02;
92-846, eff. 8-23-02; revised 10-15-03.)
| 10 |
| (35 ILCS 5/205) (from Ch. 120, par. 2-205)
| 11 |
| Sec. 205. Exempt organizations.
| 12 |
| (a) Charitable, etc. organizations. The base income of an
| 13 |
| organization which is exempt from the federal income tax by | 14 |
| reason of
Section 501(a) of the Internal Revenue Code shall not | 15 |
| be determined
under section 203 of this Act, but shall be its | 16 |
| unrelated business
taxable income as determined under section | 17 |
| 512 of the Internal Revenue
Code, without any deduction for the | 18 |
| tax imposed by this Act. The
standard exemption provided by | 19 |
| section 204 of this Act shall not be
allowed in determining the | 20 |
| net income of an organization to which this
subsection applies.
| 21 |
| (b) Partnerships. A partnership as such shall not be | 22 |
| subject to
the tax imposed by subsection 201 (a) and (b) of | 23 |
| this Act, but shall be
subject to the replacement tax imposed | 24 |
| by subsection 201 (c) and (d) of
this Act and shall compute its | 25 |
| base income as described in subsection (d)
of Section 203 of | 26 |
| this Act. For taxable years ending on or after December 31, | 27 |
| 2004, an investment partnership, as defined in Section | 28 |
| 1501(a)(11.5) of this Act, shall not be subject to the tax | 29 |
| imposed by subsections (c) and (d) of Section 201 of this Act.
| 30 |
| A partnership shall file such returns and other
information at | 31 |
| such
time and in such manner as may be required under Article 5 | 32 |
| of this Act.
The partners in a partnership shall be liable for | 33 |
| the replacement tax imposed
by subsection 201 (c) and (d) of |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| this Act on such partnership, to the extent
such tax is not | 2 |
| paid by the partnership, as provided under the laws of Illinois
| 3 |
| governing the liability of partners for the obligations of a | 4 |
| partnership.
Persons carrying on business as partners shall be | 5 |
| liable for the tax
imposed by subsection 201 (a) and (b) of | 6 |
| this Act only in their separate
or individual capacities.
| 7 |
| (c) Subchapter S corporations. A Subchapter S corporation | 8 |
| shall not
be subject to the tax imposed by subsection 201 (a) | 9 |
| and
(b) of this Act but shall be subject to the replacement tax | 10 |
| imposed by subsection
201 (c) and (d) of this Act and shall | 11 |
| file such returns
and other information
at such time and in | 12 |
| such manner as may be required under Article 5 of this Act.
| 13 |
| (d) Combat zone death. An individual relieved from the | 14 |
| federal
income tax for any taxable year by reason of section | 15 |
| 692 of the Internal
Revenue Code shall not be subject to the | 16 |
| tax imposed by this Act for
such taxable year.
| 17 |
| (e) Certain trusts. A common trust fund described in | 18 |
| Section 584
of the Internal Revenue Code, and any other trust | 19 |
| to the extent that the
grantor is treated as the owner thereof | 20 |
| under sections 671 through 678
of the Internal Revenue Code | 21 |
| shall not be subject to the tax imposed by
this Act.
| 22 |
| (f) Certain business activities. A person not otherwise | 23 |
| subject to the tax
imposed by this Act shall not become subject | 24 |
| to the tax imposed by this Act by
reason of:
| 25 |
| (1) that person's ownership of tangible personal | 26 |
| property located at the
premises of
a printer in this State | 27 |
| with which the person has contracted for printing, or
| 28 |
| (2) activities of the person's employees or agents | 29 |
| located solely at the
premises of a printer and related to | 30 |
| quality control, distribution, or printing
services | 31 |
| performed by a printer in the State with which the person | 32 |
| has
contracted for printing.
| 33 |
| (Source: P.A. 88-361.)
|
|
|
|
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|
| 1 |
| (35 ILCS 5/305) (from Ch. 120, par. 3-305)
| 2 |
| Sec. 305. Allocation of Partnership Income by partnerships | 3 |
| and
partners other than residents.
(a) Allocation of | 4 |
| partnership business income by partners other
than residents. | 5 |
| The respective shares of partners other than
residents in so | 6 |
| much of the business income of the partnership as is
allocated | 7 |
| or apportioned to this State in the possession of the | 8 |
| partnership
shall be taken into account by such partners pro | 9 |
| rata in accordance with
their respective distributive shares of | 10 |
| such partnership income for the
partnership's taxable year and | 11 |
| allocated to this State.
| 12 |
| (b) Allocation of partnership nonbusiness income by | 13 |
| partners other
than residents. The respective shares of | 14 |
| partners other than
residents in the items of partnership | 15 |
| income and deduction not taken
into account in computing the | 16 |
| business income of a partnership shall be
taken into account by | 17 |
| such partners pro rata in accordance with their
respective | 18 |
| distributive shares of such partnership income for the
| 19 |
| partnership's taxable year, and allocated as if such items had | 20 |
| been
paid, incurred or accrued directly to such partners in | 21 |
| their separate
capacities.
| 22 |
| (c) Allocation or apportionment of base income by | 23 |
| partnership.
Base income of a partnership shall be allocated or | 24 |
| apportioned to
this State pursuant to Article 3, in the same | 25 |
| manner as it is allocated
or apportioned for any other | 26 |
| nonresident.
| 27 |
| (c-5) Taxable income of an investment partnership, as | 28 |
| defined in Section 1501(a)(11.5) of this Act, that is | 29 |
| distributable to a nonresident partner shall be treated as | 30 |
| nonbusiness income and shall be allocated to the partner's | 31 |
| state of residence (in the case of an individual) or commercial | 32 |
| domicile (in the case of any other person). However, any income | 33 |
| distributable to a nonresident partner shall be treated as | 34 |
| business income and apportioned as if such income had been |
|
|
|
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| 1 |
| received directly by the partner if the partner has made an | 2 |
| election under Section 1501(a)(1) of this Act to treat all | 3 |
| income as business income or if such income is from investment | 4 |
| activity: | 5 |
| (1) that is directly or integrally related to any other | 6 |
| business activity conducted in this State by the | 7 |
| nonresident partner (or any member of that partner's | 8 |
| unitary business group); | 9 |
| (2) that serves an operational function to any other | 10 |
| business activity of the nonresident partner (or any member | 11 |
| of that partner's unitary business group) in this State; or | 12 |
| (3) where assets of the investment partnership were | 13 |
| acquired with working capital from a trade or business | 14 |
| activity conducted in this State in which the nonresident | 15 |
| partner (or any member of that partner's unitary business | 16 |
| group) owns an interest. | 17 |
| (d) Cross reference. For allocation of partnership income | 18 |
| or
deductions by residents, see Section 301(a).
| 19 |
| (Source: P.A. 84-550.)
| 20 |
| (35 ILCS 5/1501) (from Ch. 120, par. 15-1501)
| 21 |
| Sec. 1501. Definitions.
| 22 |
| (a) In general. When used in this Act, where not
otherwise | 23 |
| distinctly expressed or manifestly incompatible with the | 24 |
| intent
thereof:
| 25 |
| (1) Business income. The term "business income" means | 26 |
| all income that may be treated as apportionable business | 27 |
| income under the Constitution of the United States. | 28 |
| Business income is net of the deductions allocable thereto
| 29 |
| income arising from
transactions and activity in the | 30 |
| regular course of the taxpayer's trade
or business, net of | 31 |
| the deductions allocable thereto, and includes income
from | 32 |
| tangible and intangible property if the acquisition, | 33 |
| management, and
disposition of the property constitute |
|
|
|
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|
| 1 |
| integral parts of the taxpayer's
regular trade or business | 2 |
| operations . Such term does not include compensation
or the | 3 |
| deductions allocable thereto.
For each taxable year | 4 |
| beginning on or after January 1, 2003, a taxpayer may
elect | 5 |
| to treat all income other than compensation as business | 6 |
| income. This
election shall be made in accordance with | 7 |
| rules adopted by the Department and,
once made, shall be | 8 |
| irrevocable.
| 9 |
| (2) Commercial domicile. The term "commercial | 10 |
| domicile" means the
principal
place from which the trade or | 11 |
| business of the taxpayer is directed or managed.
| 12 |
| (3) Compensation. The term "compensation" means wages, | 13 |
| salaries,
commissions
and any other form of remuneration | 14 |
| paid to employees for personal services.
| 15 |
| (4) Corporation. The term "corporation" includes | 16 |
| associations, joint-stock
companies, insurance companies | 17 |
| and cooperatives. Any entity, including a
limited | 18 |
| liability company formed under the Illinois Limited | 19 |
| Liability Company
Act, shall be treated as a corporation if | 20 |
| it is so classified for federal
income tax purposes.
| 21 |
| (5) Department. The term "Department" means the | 22 |
| Department of Revenue of
this State.
| 23 |
| (6) Director. The term "Director" means the Director of | 24 |
| Revenue of this
State.
| 25 |
| (7) Fiduciary. The term "fiduciary" means a guardian, | 26 |
| trustee, executor,
administrator, receiver, or any person | 27 |
| acting in any fiduciary capacity for any
person.
| 28 |
| (8) Financial organization.
| 29 |
| (A) The term "financial organization" means
any
| 30 |
| bank, bank holding company, trust company, savings | 31 |
| bank, industrial bank,
land bank, safe deposit | 32 |
| company, private banker, savings and loan association,
| 33 |
| building and loan association, credit union, currency | 34 |
| exchange, cooperative
bank, small loan company, sales |
|
|
|
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|
| 1 |
| finance company, investment company, or any
person | 2 |
| which is owned by a bank or bank holding company. For | 3 |
| the purpose of
this Section a "person" will include | 4 |
| only those persons which a bank holding
company may | 5 |
| acquire and hold an interest in, directly or | 6 |
| indirectly, under the
provisions of the Bank Holding | 7 |
| Company Act of 1956 (12 U.S.C. 1841, et seq.),
except | 8 |
| where interests in any person must be disposed of | 9 |
| within certain
required time limits under the Bank | 10 |
| Holding Company Act of 1956.
| 11 |
| (B) For purposes of subparagraph (A) of this | 12 |
| paragraph, the term
"bank" includes (i) any entity that | 13 |
| is regulated by the Comptroller of the
Currency under | 14 |
| the National Bank Act, or by the Federal Reserve Board, | 15 |
| or by
the
Federal Deposit Insurance Corporation and | 16 |
| (ii) any federally or State chartered
bank
operating as | 17 |
| a credit card bank.
| 18 |
| (C) For purposes of subparagraph (A) of this | 19 |
| paragraph, the term
"sales finance company" has the | 20 |
| meaning provided in the following item (i) or
(ii):
| 21 |
| (i) A person primarily engaged in one or more | 22 |
| of the following
businesses: the business of | 23 |
| purchasing customer receivables, the business
of | 24 |
| making loans upon the security of customer | 25 |
| receivables, the
business of making loans for the | 26 |
| express purpose of funding purchases of
tangible | 27 |
| personal property or services by the borrower, or | 28 |
| the business of
finance leasing. For purposes of | 29 |
| this item (i), "customer receivable"
means:
| 30 |
| (a) a retail installment contract or | 31 |
| retail charge agreement within
the
meaning
of | 32 |
| the Sales Finance Agency Act, the Retail | 33 |
| Installment Sales Act, or the
Motor Vehicle | 34 |
| Retail Installment Sales Act;
|
|
|
|
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|
| 1 |
| (b) an installment, charge, credit, or | 2 |
| similar contract or agreement
arising from
the | 3 |
| sale of tangible personal property or services | 4 |
| in a transaction involving
a deferred payment | 5 |
| price payable in one or more installments | 6 |
| subsequent
to the sale; or
| 7 |
| (c) the outstanding balance of a contract | 8 |
| or agreement described in
provisions
(a) or (b) | 9 |
| of this item (i).
| 10 |
| A customer receivable need not provide for | 11 |
| payment of interest on
deferred
payments. A sales | 12 |
| finance company may purchase a customer receivable | 13 |
| from, or
make a loan secured by a customer | 14 |
| receivable to, the seller in the original
| 15 |
| transaction or to a person who purchased the | 16 |
| customer receivable directly or
indirectly from | 17 |
| that seller.
| 18 |
| (ii) A corporation meeting each of the | 19 |
| following criteria:
| 20 |
| (a) the corporation must be a member of an | 21 |
| "affiliated group" within
the
meaning of | 22 |
| Section 1504(a) of the Internal Revenue Code, | 23 |
| determined
without regard to Section 1504(b) | 24 |
| of the Internal Revenue Code;
| 25 |
| (b) more than 50% of the gross income of | 26 |
| the corporation for the
taxable
year
must be | 27 |
| interest income derived from qualifying loans. | 28 |
| A "qualifying
loan" is a loan made to a member | 29 |
| of the corporation's affiliated group that
| 30 |
| originates customer receivables (within the | 31 |
| meaning of item (i)) or to whom
customer | 32 |
| receivables originated by a member of the | 33 |
| affiliated group have been
transferred, to
the | 34 |
| extent the average outstanding balance of |
|
|
|
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|
| 1 |
| loans from that corporation
to members of its | 2 |
| affiliated group during the taxable year do not | 3 |
| exceed
the limitation amount for that | 4 |
| corporation. The "limitation amount" for a
| 5 |
| corporation is the average outstanding | 6 |
| balances during the taxable year of
customer | 7 |
| receivables (within the meaning of item (i)) | 8 |
| originated by
all members of the affiliated | 9 |
| group.
If the average outstanding balances of | 10 |
| the
loans made by a corporation to members of | 11 |
| its affiliated group exceed the
limitation | 12 |
| amount, the interest income of that | 13 |
| corporation from qualifying
loans shall be | 14 |
| equal to its interest income from loans to | 15 |
| members of its
affiliated groups times a | 16 |
| fraction equal to the limitation amount | 17 |
| divided by
the average outstanding balances of | 18 |
| the loans made by that corporation to
members | 19 |
| of its affiliated group;
| 20 |
| (c) the total of all shareholder's equity | 21 |
| (including, without
limitation,
paid-in
| 22 |
| capital on common and preferred stock and | 23 |
| retained earnings) of the
corporation plus the | 24 |
| total of all of its loans, advances, and other
| 25 |
| obligations payable or owed to members of its | 26 |
| affiliated group may not
exceed 20% of the | 27 |
| total assets of the corporation at any time | 28 |
| during the tax
year; and
| 29 |
| (d) more than 50% of all interest-bearing | 30 |
| obligations of the
affiliated group payable to | 31 |
| persons outside the group determined in | 32 |
| accordance
with generally accepted accounting | 33 |
| principles must be obligations of the
| 34 |
| corporation.
|
|
|
|
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|
| 1 |
| This amendatory Act of the 91st General Assembly is | 2 |
| declaratory of
existing
law.
| 3 |
| (D) Subparagraphs
(B) and (C) of this paragraph are | 4 |
| declaratory of
existing law and apply retroactively, | 5 |
| for all tax years beginning on or before
December 31, | 6 |
| 1996,
to all original returns, to all amended returns | 7 |
| filed no later than 30
days after the effective date of | 8 |
| this amendatory Act of 1996, and to all
notices issued | 9 |
| on or before the effective date of this amendatory Act | 10 |
| of 1996
under subsection (a) of Section 903, subsection | 11 |
| (a) of Section 904,
subsection (e) of Section 909, or | 12 |
| Section 912.
A taxpayer that is a "financial | 13 |
| organization" that engages in any transaction
with an | 14 |
| affiliate shall be a "financial organization" for all | 15 |
| purposes of this
Act.
| 16 |
| (E) For all tax years beginning on or
before | 17 |
| December 31, 1996, a taxpayer that falls within the | 18 |
| definition
of a
"financial organization" under | 19 |
| subparagraphs (B) or (C) of this paragraph, but
who | 20 |
| does
not fall within the definition of a "financial | 21 |
| organization" under the Proposed
Regulations issued by | 22 |
| the Department of Revenue on July 19, 1996, may
| 23 |
| irrevocably elect to apply the Proposed Regulations | 24 |
| for all of those years as
though the Proposed | 25 |
| Regulations had been lawfully promulgated, adopted, | 26 |
| and in
effect for all of those years. For purposes of | 27 |
| applying subparagraphs (B) or
(C) of
this
paragraph to | 28 |
| all of those years, the election allowed by this | 29 |
| subparagraph
applies only to the taxpayer making the | 30 |
| election and to those members of the
taxpayer's unitary | 31 |
| business group who are ordinarily required to | 32 |
| apportion
business income under the same subsection of | 33 |
| Section 304 of this Act as the
taxpayer making the | 34 |
| election. No election allowed by this subparagraph |
|
|
|
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|
| 1 |
| shall
be made under a claim
filed under subsection (d) | 2 |
| of Section 909 more than 30 days after the
effective | 3 |
| date of this amendatory Act of 1996.
| 4 |
| (F) Finance Leases. For purposes of this | 5 |
| subsection, a finance lease
shall be treated as a loan | 6 |
| or other extension of credit, rather than as a
lease,
| 7 |
| regardless of how the transaction is characterized for | 8 |
| any other purpose,
including the purposes of any | 9 |
| regulatory agency to which the lessor is subject.
A | 10 |
| finance lease is any transaction in the form of a lease | 11 |
| in which the lessee
is treated as the owner of the | 12 |
| leased asset entitled to any deduction for
| 13 |
| depreciation allowed under Section 167 of the Internal | 14 |
| Revenue Code.
| 15 |
| (9) Fiscal year. The term "fiscal year" means an | 16 |
| accounting period of
12 months ending on the last day of | 17 |
| any month other than December.
| 18 |
| (10) Includes and including. The terms "includes" and | 19 |
| "including" when
used in a definition contained in this Act | 20 |
| shall not be deemed to exclude
other things otherwise | 21 |
| within the meaning of the term defined.
| 22 |
| (11) Internal Revenue Code. The term "Internal Revenue | 23 |
| Code" means the
United States Internal Revenue Code of 1954 | 24 |
| or any successor law or laws
relating to federal income | 25 |
| taxes in effect for the taxable year.
| 26 |
| (11.5) Investment partnership. | 27 |
| (A) The term "investment partnership" means any | 28 |
| entity that is treated as a partnership for federal | 29 |
| income tax purposes that meets the following | 30 |
| requirements: | 31 |
| (i) no less than 90% of the partnership's cost | 32 |
| of its total assets consists of qualifying | 33 |
| investment securities, deposits at banks or other | 34 |
| financial institutions, and office space and |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| equipment reasonably necessary to carry on its | 2 |
| activities as an investment partnership; | 3 |
| (ii) no less than 90% of its gross income | 4 |
| consists of interest, dividends, and gains from | 5 |
| the sale or exchange of qualifying investment | 6 |
| securities; and
| 7 |
| (iii) the partnership is not a dealer in | 8 |
| qualifying investment securities. | 9 |
| (B) For purposes of this paragraph (11.5), the term | 10 |
| "qualifying investment securities" includes all of the | 11 |
| following:
| 12 |
| (i) common stock, including preferred or debt | 13 |
| securities convertible into common stock, and | 14 |
| preferred stock; | 15 |
| (ii) bonds, debentures, and other debt | 16 |
| securities; | 17 |
| (iii) foreign and domestic currency deposits | 18 |
| secured by federal, state, or local governmental | 19 |
| agencies; | 20 |
| (iv) mortgage or asset-backed securities | 21 |
| secured by federal, state, or local governmental | 22 |
| agencies; | 23 |
| (v) repurchase agreements and loan | 24 |
| participations; | 25 |
| (vi) foreign currency exchange contracts and | 26 |
| forward and futures contracts on foreign | 27 |
| currencies; | 28 |
| (vii) stock and bond index securities and | 29 |
| futures contracts and other similar financial | 30 |
| securities and futures contracts on those | 31 |
| securities;
| 32 |
| (viii) options for the purchase or sale of any | 33 |
| of the securities, currencies, contracts, or | 34 |
| financial instruments described in items (i) to |
|
|
|
09300SB2207ham002 |
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LRB093 15831 BDD 52995 a |
|
| 1 |
| (vii), inclusive;
| 2 |
| (ix) regulated futures contracts;
| 3 |
| (x) commodities (not described in Section | 4 |
| 1221(a)(1) of the Internal Revenue Code) or | 5 |
| futures, forwards, and options with respect to | 6 |
| such commodities, provided, however, that any item | 7 |
| of a physical commodity to which title is actually | 8 |
| acquired in the partnership's capacity as a dealer | 9 |
| in such commodity shall not be a qualifying | 10 |
| investment security;
| 11 |
| (xi) derivatives; and
| 12 |
| (xii) a partnership interest in another | 13 |
| partnership that is an investment partnership.
| 14 |
| (12) Mathematical error. The term "mathematical error" | 15 |
| includes the
following types of errors, omissions, or | 16 |
| defects in a return filed by a
taxpayer which prevents | 17 |
| acceptance of the return as filed for processing:
| 18 |
| (A) arithmetic errors or incorrect computations on | 19 |
| the return or
supporting schedules;
| 20 |
| (B) entries on the wrong lines;
| 21 |
| (C) omission of required supporting forms or | 22 |
| schedules or the omission
of the information in whole | 23 |
| or in part called for thereon; and
| 24 |
| (D) an attempt to claim, exclude, deduct, or | 25 |
| improperly report, in a
manner
directly contrary to the | 26 |
| provisions of the Act and regulations thereunder
any | 27 |
| item of income, exemption, deduction, or credit.
| 28 |
| (13) Nonbusiness income. The term "nonbusiness income" | 29 |
| means all income
other than business income or | 30 |
| compensation.
| 31 |
| (14) Nonresident. The term "nonresident" means a | 32 |
| person who is not a
resident.
| 33 |
| (15) Paid, incurred and accrued. The terms "paid", | 34 |
| "incurred" and
"accrued"
shall be construed according to |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| the method of accounting upon the basis
of which the | 2 |
| person's base income is computed under this Act.
| 3 |
| (16) Partnership and partner. The term "partnership" | 4 |
| includes a syndicate,
group, pool, joint venture or other | 5 |
| unincorporated organization, through
or by means of which | 6 |
| any business, financial operation, or venture is carried
| 7 |
| on, and which is not, within the meaning of this Act, a | 8 |
| trust or estate
or a corporation; and the term "partner" | 9 |
| includes a member in such syndicate,
group, pool, joint | 10 |
| venture or organization.
| 11 |
| The term "partnership" includes any entity, including | 12 |
| a limited
liability company formed under the Illinois
| 13 |
| Limited Liability Company Act, classified as a partnership | 14 |
| for federal income tax purposes.
| 15 |
| The term "partnership" does not include a syndicate, | 16 |
| group, pool,
joint venture, or other unincorporated | 17 |
| organization established for the
sole purpose of playing | 18 |
| the Illinois State Lottery.
| 19 |
| (17) Part-year resident. The term "part-year resident" | 20 |
| means an individual
who became a resident during the | 21 |
| taxable year or ceased to be a resident
during the taxable | 22 |
| year. Under Section 1501(a)(20)(A)(i) residence
commences | 23 |
| with presence in this State for other than a temporary or | 24 |
| transitory
purpose and ceases with absence from this State | 25 |
| for other than a temporary or
transitory purpose. Under | 26 |
| Section 1501(a)(20)(A)(ii) residence commences
with the | 27 |
| establishment of domicile in this State and ceases with the
| 28 |
| establishment of domicile in another State.
| 29 |
| (18) Person. The term "person" shall be construed to | 30 |
| mean and include
an individual, a trust, estate, | 31 |
| partnership, association, firm, company,
corporation, | 32 |
| limited liability company, or fiduciary. For purposes of | 33 |
| Section
1301 and 1302 of this Act, a "person" means (i) an | 34 |
| individual, (ii) a
corporation, (iii) an officer, agent, or |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| employee of a
corporation, (iv) a member, agent or employee | 2 |
| of a partnership, or (v)
a member,
manager, employee, | 3 |
| officer, director, or agent of a limited liability company
| 4 |
| who in such capacity commits an offense specified in | 5 |
| Section 1301 and 1302.
| 6 |
| (18A) Records. The term "records" includes all data | 7 |
| maintained by the
taxpayer, whether on paper, microfilm, | 8 |
| microfiche, or any type of
machine-sensible data | 9 |
| compilation.
| 10 |
| (19) Regulations. The term "regulations" includes | 11 |
| rules promulgated and
forms prescribed by the Department.
| 12 |
| (20) Resident. The term "resident" means:
| 13 |
| (A) an individual (i) who is
in this State for | 14 |
| other than a temporary or transitory purpose during the
| 15 |
| taxable year; or (ii) who is domiciled in this State | 16 |
| but is absent from
the State for a temporary or | 17 |
| transitory purpose during the taxable year;
| 18 |
| (B) The estate of a decedent who at his or her | 19 |
| death was domiciled in
this
State;
| 20 |
| (C) A trust created by a will of a decedent who at | 21 |
| his death was
domiciled
in this State; and
| 22 |
| (D) An irrevocable trust, the grantor of which was | 23 |
| domiciled in this
State
at the time such trust became | 24 |
| irrevocable. For purpose of this subparagraph,
a trust | 25 |
| shall be considered irrevocable to the extent that the | 26 |
| grantor is
not treated as the owner thereof under | 27 |
| Sections 671 through 678 of the Internal
Revenue Code.
| 28 |
| (21) Sales. The term "sales" means all gross receipts | 29 |
| of the taxpayer
not allocated under Sections 301, 302 and | 30 |
| 303.
| 31 |
| (22) State. The term "state" when applied to a | 32 |
| jurisdiction other than
this State means any state of the | 33 |
| United States, the District of Columbia,
the Commonwealth | 34 |
| of Puerto Rico, any Territory or Possession of the United
|
|
|
|
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|
| 1 |
| States, and any foreign country, or any political | 2 |
| subdivision of any of the
foregoing. For purposes of the | 3 |
| foreign tax credit under Section 601, the
term "state" | 4 |
| means any state of the United States, the District of | 5 |
| Columbia,
the Commonwealth of Puerto Rico, and any | 6 |
| territory or possession of the
United States, or any | 7 |
| political subdivision of any of the foregoing,
effective | 8 |
| for tax years ending on or after December 31, 1989.
| 9 |
| (23) Taxable year. The term "taxable year" means the | 10 |
| calendar year, or
the fiscal year ending during such | 11 |
| calendar year, upon the basis of which
the base income is | 12 |
| computed under this Act. "Taxable year" means, in the
case | 13 |
| of a return made for a fractional part of a year under the | 14 |
| provisions
of this Act, the period for which such return is | 15 |
| made.
| 16 |
| (24) Taxpayer. The term "taxpayer" means any person | 17 |
| subject to the tax
imposed by this Act.
| 18 |
| (25) International banking facility. The term | 19 |
| international banking
facility shall have the same meaning | 20 |
| as is set forth in the Illinois Banking
Act or as is set | 21 |
| forth in the laws of the United States or regulations of
| 22 |
| the Board of Governors of the Federal Reserve System.
| 23 |
| (26) Income Tax Return Preparer.
| 24 |
| (A) The term "income tax return preparer"
means any | 25 |
| person who prepares for compensation, or who employs | 26 |
| one or more
persons to prepare for compensation, any | 27 |
| return of tax imposed by this Act
or any claim for | 28 |
| refund of tax imposed by this Act. The preparation of a
| 29 |
| substantial portion of a return or claim for refund | 30 |
| shall be treated as
the preparation of that return or | 31 |
| claim for refund.
| 32 |
| (B) A person is not an income tax return preparer | 33 |
| if all he or she does
is
| 34 |
| (i) furnish typing, reproducing, or other |
|
|
|
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| mechanical assistance;
| 2 |
| (ii) prepare returns or claims for refunds for | 3 |
| the employer by whom he
or she is regularly and | 4 |
| continuously employed;
| 5 |
| (iii) prepare as a fiduciary returns or claims | 6 |
| for refunds for any
person; or
| 7 |
| (iv) prepare claims for refunds for a taxpayer | 8 |
| in response to any
notice
of deficiency issued to | 9 |
| that taxpayer or in response to any waiver of
| 10 |
| restriction after the commencement of an audit of | 11 |
| that taxpayer or of another
taxpayer if a | 12 |
| determination in the audit of the other taxpayer | 13 |
| directly or
indirectly affects the tax liability | 14 |
| of the taxpayer whose claims he or she is
| 15 |
| preparing.
| 16 |
| (27) Unitary business group. The term "unitary | 17 |
| business group" means
a group of persons related through | 18 |
| common ownership whose business activities
are integrated | 19 |
| with, dependent upon and contribute to each other. The | 20 |
| group
will not include those members whose business | 21 |
| activity outside the United
States is 80% or more of any | 22 |
| such member's total business activity; for
purposes of this | 23 |
| paragraph and clause (a)(3)(B)(ii) of Section 304,
| 24 |
| business
activity within the United States shall be | 25 |
| measured by means of the factors
ordinarily applicable | 26 |
| under subsections (a), (b), (c), (d), or (h)
of Section
304 | 27 |
| except that, in the case of members ordinarily required to | 28 |
| apportion
business income by means of the 3 factor formula | 29 |
| of property, payroll and sales
specified in subsection (a) | 30 |
| of Section 304, including the
formula as weighted in | 31 |
| subsection (h) of Section 304, such members shall
not use | 32 |
| the sales factor in the computation and the results of the | 33 |
| property
and payroll factor computations of subsection (a) | 34 |
| of Section 304 shall be
divided by 2 (by one if either
the |
|
|
|
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| property or payroll factor has a denominator of zero). The | 2 |
| computation
required by the preceding sentence shall, in | 3 |
| each case, involve the division of
the member's property, | 4 |
| payroll, or revenue miles in the United States,
insurance | 5 |
| premiums on property or risk in the United States, or | 6 |
| financial
organization business income from sources within | 7 |
| the United States, as the
case may be, by the respective | 8 |
| worldwide figures for such items. Common
ownership in the | 9 |
| case of corporations is the direct or indirect control or
| 10 |
| ownership of more than 50% of the outstanding voting stock | 11 |
| of the persons
carrying on unitary business activity. | 12 |
| Unitary business activity can
ordinarily be illustrated | 13 |
| where the activities of the members are: (1) in the
same | 14 |
| general line (such as manufacturing, wholesaling, | 15 |
| retailing of tangible
personal property, insurance, | 16 |
| transportation or finance); or (2) are steps in a
| 17 |
| vertically structured enterprise or process (such as the | 18 |
| steps involved in the
production of natural resources, | 19 |
| which might include exploration, mining,
refining, and | 20 |
| marketing); and, in either instance, the members are | 21 |
| functionally
integrated through the exercise of strong | 22 |
| centralized management (where, for
example, authority over | 23 |
| such matters as purchasing, financing, tax compliance,
| 24 |
| product line, personnel, marketing and capital investment | 25 |
| is not left to each
member).
In no event, however, will any
| 26 |
| unitary business group include members
which are | 27 |
| ordinarily required to apportion business income under | 28 |
| different
subsections of Section 304 except that for tax | 29 |
| years ending on or after
December 31, 1987 this prohibition | 30 |
| shall not apply to a unitary business group
composed of one | 31 |
| or more taxpayers all of which apportion business income
| 32 |
| pursuant to subsection (b) of Section 304, or all of which | 33 |
| apportion business
income pursuant to subsection (d) of | 34 |
| Section 304, and a holding company of such
single-factor |
|
|
|
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| taxpayers (see definition of "financial organization" for | 2 |
| rule
regarding holding companies of financial | 3 |
| organizations). If a unitary business
group would, but for | 4 |
| the preceding sentence, include members that are
| 5 |
| ordinarily required to apportion business income under | 6 |
| different subsections of
Section 304, then for each | 7 |
| subsection of Section 304 for which there are two or
more | 8 |
| members, there shall be a separate unitary business group | 9 |
| composed of such
members. For purposes of the preceding two | 10 |
| sentences, a member is "ordinarily
required to apportion | 11 |
| business income" under a particular subsection of Section
| 12 |
| 304 if it would be required to use the apportionment method | 13 |
| prescribed by such
subsection except for the fact that it | 14 |
| derives business income solely from
Illinois. As used in | 15 |
| this paragraph, the phrase "United States" means only the | 16 |
| 50 states and the District of Columbia, but does not | 17 |
| include any territory or possession of the United States or | 18 |
| any area over which the United States has asserted | 19 |
| jurisdiction or claimed exclusive rights with respect to | 20 |
| the exploration for or exploitation of natural resources.
| 21 |
| If the unitary business group members' accounting | 22 |
| periods differ,
the common parent's accounting period or, | 23 |
| if there is no common parent, the
accounting period of the | 24 |
| member that is expected to have, on a recurring basis,
the | 25 |
| greatest Illinois income tax liability must be used to | 26 |
| determine whether to
use the apportionment method provided | 27 |
| in subsection (a) or subsection (h) of
Section 304. The
| 28 |
| prohibition against membership in a unitary business group | 29 |
| for taxpayers
ordinarily required to apportion income | 30 |
| under different subsections of Section
304 does not apply | 31 |
| to taxpayers required to apportion income under subsection
| 32 |
| (a) and subsection (h) of Section
304. The provisions of | 33 |
| this amendatory Act of 1998 apply to tax
years ending on or | 34 |
| after December 31, 1998.
|
|
|
|
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| (28) Subchapter S corporation. The term "Subchapter S | 2 |
| corporation"
means a corporation for which there is in | 3 |
| effect an election under Section
1362 of the Internal | 4 |
| Revenue Code, or for which there is a federal election
to | 5 |
| opt out of the provisions of the Subchapter S Revision Act | 6 |
| of 1982 and
have applied instead the prior federal | 7 |
| Subchapter S rules as in effect on July
1, 1982.
| 8 |
| (30) Foreign person. The term "foreign person" means | 9 |
| any person who is a nonresident alien individual and any | 10 |
| nonindividual entity, regardless of where created or | 11 |
| organized, whose business activity outside the United | 12 |
| States is 80% or more of the entity's total business | 13 |
| activity.
| 14 |
| (b) Other definitions.
| 15 |
| (1) Words denoting number, gender, and so forth,
when | 16 |
| used in this Act, where not otherwise distinctly expressed | 17 |
| or manifestly
incompatible with the intent thereof:
| 18 |
| (A) Words importing the singular include and apply | 19 |
| to several persons,
parties or things;
| 20 |
| (B) Words importing the plural include the | 21 |
| singular; and
| 22 |
| (C) Words importing the masculine gender include | 23 |
| the feminine as well.
| 24 |
| (2) "Company" or "association" as including successors | 25 |
| and assigns. The
word "company" or "association", when used | 26 |
| in reference to a corporation,
shall be deemed to embrace | 27 |
| the words "successors and assigns of such company
or | 28 |
| association", and in like manner as if these last-named | 29 |
| words, or words
of similar import, were expressed.
| 30 |
| (3) Other terms. Any term used in any Section of this | 31 |
| Act with respect
to the application of, or in connection | 32 |
| with, the provisions of any other
Section of this Act shall | 33 |
| have the same meaning as in such other Section.
|
|
|
|
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| 1 |
| (Source: P.A. 91-535, eff. 1-1-00; 91-913, eff.
1-1-01; 92-846, | 2 |
| eff. 8-23-02.)
|
|
3 |
| ARTICLE 30 |
4 |
| Section 30-5. The Illinois Vehicle Code is amended by | 5 |
| changing Sections 2-119, 3-820, 3-821, and 11-501 and by adding | 6 |
| Section 3-821.2 as follows:
| 7 |
| (625 ILCS 5/2-119) (from Ch. 95 1/2, par. 2-119)
| 8 |
| Sec. 2-119. Disposition of fees and taxes.
| 9 |
| (a) All moneys received from Salvage Certificates shall be | 10 |
| deposited in
the Common School Fund in the State Treasury.
| 11 |
| (b) Beginning January 1, 1990 and concluding December 31, | 12 |
| 1994, of the
money collected for each certificate of title, | 13 |
| duplicate certificate of
title and corrected certificate of | 14 |
| title, $0.50 shall be deposited into the
Used Tire Management | 15 |
| Fund. Beginning January 1, 1990 and concluding
December 31, | 16 |
| 1994, of the money collected for each certificate of title,
| 17 |
| duplicate certificate of title and corrected certificate of | 18 |
| title, $1.50
shall be deposited in the Park and Conservation | 19 |
| Fund.
| 20 |
| Beginning January 1, 1995, of the money collected for each | 21 |
| certificate of
title, duplicate certificate of title and | 22 |
| corrected certificate of title, $2
shall be deposited in the | 23 |
| Park and Conservation Fund. The moneys deposited in
the Park | 24 |
| and Conservation Fund pursuant to this Section shall be used | 25 |
| for the
acquisition and development of bike paths as provided | 26 |
| for in Section 805-420 of
the Department of Natural Resources | 27 |
| (Conservation) Law (20 ILCS 805/805-420).
| 28 |
| Beginning January 1, 2000, of
the
moneys collected for each | 29 |
| certificate of title, duplicate certificate of title,
and | 30 |
| corrected certificate of title, $48 shall be deposited into the | 31 |
| Road Fund
and $4 shall be deposited into the Motor Vehicle |
|
|
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| License Plate Fund, except
that if the balance in the Motor | 2 |
| Vehicle License Plate Fund exceeds $40,000,000
on the last day | 3 |
| of a calendar month, then during the next calendar month the $4
| 4 |
| shall instead be deposited into the Road Fund.
| 5 |
| Beginning January 1, 2005, of the moneys collected for each | 6 |
| delinquent vehicle registration renewal fee, $20 shall be | 7 |
| deposited into the General Revenue Fund. | 8 |
| Except as otherwise provided in this Code, all remaining | 9 |
| moneys collected
for certificates of title, and all moneys | 10 |
| collected for filing of security
interests, shall be placed in | 11 |
| the General Revenue Fund in the State Treasury.
| 12 |
| (c) All moneys collected for that portion of a driver's | 13 |
| license fee
designated for driver education under Section 6-118 | 14 |
| shall be placed in
the Driver Education Fund in the State | 15 |
| Treasury.
| 16 |
| (d) Beginning January 1, 1999, of the monies collected as a | 17 |
| registration
fee for each motorcycle, motor driven cycle and | 18 |
| motorized pedalcycle, 27%
of each annual registration fee for | 19 |
| such vehicle and 27% of each semiannual
registration fee for | 20 |
| such vehicle is deposited in the Cycle Rider Safety
Training | 21 |
| Fund.
| 22 |
| (e) Of the monies received by the Secretary of State as | 23 |
| registration
fees or taxes or as payment of any other fee, as | 24 |
| provided in this Act, except
fees received by the Secretary | 25 |
| under paragraph (7) of subsection (b) of Section
5-101 and | 26 |
| Section 5-109 of this Code, 37% shall be deposited into the | 27 |
| State
Construction Fund.
| 28 |
| (f) Of the total money collected for a CDL instruction | 29 |
| permit or
original or renewal issuance of a commercial driver's | 30 |
| license (CDL)
pursuant to the Uniform Commercial Driver's | 31 |
| License Act (UCDLA): (i) $6 of the
total fee for an original or | 32 |
| renewal CDL, and $6 of the total CDL
instruction permit fee | 33 |
| when such permit is issued to any person holding a
valid | 34 |
| Illinois driver's license, shall be paid into the |
|
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| 1 |
| CDLIS/AAMVAnet
Trust Fund (Commercial Driver's License | 2 |
| Information System/American
Association of Motor Vehicle | 3 |
| Administrators network Trust Fund) and shall
be used for the | 4 |
| purposes provided in Section 6z-23 of the State Finance Act
and | 5 |
| (ii) $20 of the total fee for an original or renewal CDL or | 6 |
| commercial
driver instruction permit shall be paid
into the | 7 |
| Motor Carrier Safety Inspection Fund, which is hereby created | 8 |
| as a
special fund in the State Treasury, to be used by
the | 9 |
| Department
of State Police, subject to appropriation, to hire | 10 |
| additional officers to
conduct motor carrier safety
| 11 |
| inspections
pursuant to Chapter 18b of this Code.
| 12 |
| (g) All remaining moneys received by the Secretary of State | 13 |
| as
registration fees or taxes or as payment of any other fee, | 14 |
| as provided in
this Act, except fees received by the Secretary | 15 |
| under paragraph (7)(A) of
subsection (b) of Section 5-101 and | 16 |
| Section 5-109 of this Code,
shall be deposited in the Road Fund | 17 |
| in the State Treasury. Moneys
in the Road Fund shall be used | 18 |
| for the purposes provided in
Section 8.3 of the State Finance | 19 |
| Act.
| 20 |
| (h) (Blank).
| 21 |
| (i) (Blank).
| 22 |
| (j) (Blank).
| 23 |
| (k) There is created in the State Treasury a special fund | 24 |
| to be known as
the Secretary of State Special License Plate | 25 |
| Fund. Money deposited into the
Fund shall, subject to | 26 |
| appropriation, be used by the Office of the Secretary
of State | 27 |
| (i) to help defray plate manufacturing and plate processing | 28 |
| costs
for the issuance and, when applicable, renewal of any new | 29 |
| or existing
registration plates authorized under this Code and | 30 |
| (ii) for grants made by the
Secretary of State to benefit | 31 |
| Illinois Veterans Home libraries.
| 32 |
| On or before October 1, 1995, the Secretary of State shall | 33 |
| direct the
State Comptroller and State Treasurer to transfer | 34 |
| any unexpended balance in
the Special Environmental License |
|
|
|
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| Plate Fund, the Special Korean War Veteran
License Plate Fund, | 2 |
| and the Retired Congressional License Plate Fund to the
| 3 |
| Secretary of State Special License Plate Fund.
| 4 |
| (l) The Motor Vehicle Review Board Fund is created as a | 5 |
| special fund in
the State Treasury. Moneys deposited into the | 6 |
| Fund under paragraph (7) of
subsection (b) of Section 5-101 and | 7 |
| Section 5-109 shall,
subject to appropriation, be used by the | 8 |
| Office of the Secretary of State to
administer the Motor | 9 |
| Vehicle Review Board, including without
limitation payment of | 10 |
| compensation and all necessary expenses incurred in
| 11 |
| administering the Motor Vehicle Review Board under the Motor | 12 |
| Vehicle Franchise
Act.
| 13 |
| (m) Effective July 1, 1996, there is created in the State
| 14 |
| Treasury a special fund to be known as the Family | 15 |
| Responsibility Fund. Moneys
deposited into the Fund shall, | 16 |
| subject to appropriation, be used by the Office
of the | 17 |
| Secretary of State for the purpose of enforcing the Family | 18 |
| Financial
Responsibility Law.
| 19 |
| (n) The Illinois Fire Fighters' Memorial Fund is created as | 20 |
| a special
fund in the State Treasury. Moneys deposited into the | 21 |
| Fund shall, subject
to appropriation, be used by the Office of | 22 |
| the State Fire Marshal for
construction of the Illinois Fire | 23 |
| Fighters' Memorial to be located at the
State Capitol grounds | 24 |
| in Springfield, Illinois. Upon the completion of the
Memorial, | 25 |
| moneys in the Fund shall be used in accordance with Section | 26 |
| 3-634.
| 27 |
| (o) Of the money collected for each certificate of title | 28 |
| for all-terrain
vehicles and off-highway motorcycles, $17 | 29 |
| shall be deposited into the
Off-Highway Vehicle Trails Fund.
| 30 |
| (p) For audits conducted on or after July 1, 2003 pursuant | 31 |
| to Section
2-124(d) of this Code, 50% of the money collected as | 32 |
| audit fees shall be
deposited
into the General Revenue Fund.
| 33 |
| (Source: P.A. 92-16, eff. 6-28-01; 93-32, eff. 7-1-03.)
|
|
|
|
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| 1 |
| (625 ILCS 5/3-820) (from Ch. 95 1/2, par. 3-820)
| 2 |
| Sec. 3-820. Duplicate Number Plates. Upon filing in the | 3 |
| Office of the
Secretary of State an affidavit to the effect | 4 |
| that an original number plate
for a vehicle is lost, stolen or | 5 |
| destroyed, a duplicate number plate shall
be furnished upon | 6 |
| payment of a fee of $6 for each duplicate plate
and a fee of $9 | 7 |
| for a pair of duplicate plates.
| 8 |
| Upon filing in the Office of the Secretary of State an | 9 |
| affidavit to the
effect that an original registration sticker | 10 |
| for a vehicle is lost,
stolen or destroyed, a new registration | 11 |
| sticker shall be
furnished upon payment of a fee of $5.
| 12 |
| The Secretary of State may, in his discretion, assign a new | 13 |
| number plate
or plates in lieu of a duplicate of the plate or | 14 |
| plates so lost, stolen or
destroyed, but such assignment of a | 15 |
| new plate or plates shall not affect
the right of the owner to | 16 |
| secure a reassignment of his original
registration number in | 17 |
| the manner provided in this Act. The fee for one new
number | 18 |
| plate shall be $6, and for a pair of new number plates,
$9.
| 19 |
| For the administration of this Section, the Secretary shall | 20 |
| consider the
loss of a registration plate or plates with | 21 |
| properly affixed registration
stickers as requiring the | 22 |
| payment of :
either | 23 |
| (i) $11 for each duplicate ;
or | 24 |
| (ii)
$14 for a pair of duplicate plates ; or
| 25 |
| (iii) $39 for a pair of duplicate plates on or after | 26 |
| January 1, 2005, which includes a fee of $20 for the | 27 |
| replacement sticker
or $19 for
a pair of duplicate plates | 28 |
| if stickers are required on both front and rear
| 29 |
| registration plates .
| 30 |
| (Source: P.A. 91-37, eff. 7-1-99.)
| 31 |
| (625 ILCS 5/3-821) (from Ch. 95 1/2, par. 3-821)
| 32 |
| Sec. 3-821. Miscellaneous Registration and Title Fees.
| 33 |
| (a) The fee to be paid to the Secretary of State for the |
|
|
|
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| 1 |
| following
certificates, registrations or evidences of proper | 2 |
| registration, or for
corrected or duplicate documents shall be | 3 |
| in accordance with the following
schedule:
|
|
4 | | Certificate of Title, except for an all-terrain | | |
5 | | vehicle or off-highway motorcycle | $65 | |
6 | | Certificate of Title for an all-terrain vehicle | | |
7 | | or off-highway motorcycle | $30 | |
8 | | Certificate of Title for an all-terrain
vehicle | | |
9 | | or off-highway motorcycle used for production | |
|
10 | | agriculture, or accepted by a dealer in trade | 13 | |
11 | | Transfer of Registration or any evidence of | | |
12 | | proper registration
| 15 | |
13 | | Duplicate Registration Card for plates or other | | |
14 | | evidence of proper registration | 3 | |
15 | | Duplicate Registration Sticker or Stickers, each | | |
16 | | Duplicate Certificate of Title | 65 | |
17 | | Corrected Registration Card or Card for other | | |
18 | | evidence of proper registration | 3 | |
19 | | Corrected Certificate of Title | 65 | |
20 | | Salvage Certificate | 4 | |
21 | | Fleet Reciprocity Permit | 15 | |
22 | | Prorate Decal | 1 | |
23 | | Prorate Backing Plate | 3 |
| 24 |
| There shall be no fee paid for a Junking Certificate.
| 25 |
| (b) The Secretary may prescribe the maximum service charge | 26 |
| to be
imposed upon an applicant for renewal of a registration | 27 |
| by any person
authorized by law to receive and remit or | 28 |
| transmit to the Secretary such
renewal application and fees | 29 |
| therewith.
| 30 |
| (c) If a check is delivered to the Office of the Secretary | 31 |
| of State
as payment of any fee or tax under this Code, and such | 32 |
| check is not
honored by the bank on which it is drawn for any | 33 |
| reason, the registrant
or other person tendering the check | 34 |
| remains liable for the payment of
such fee or tax. The |
|
|
|
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| 1 |
| Secretary of State may assess a service charge of
$19
in | 2 |
| addition to the fee or tax due and owing for all dishonored
| 3 |
| checks.
| 4 |
| If the total amount then due and owing exceeds the sum of | 5 |
| $50 and
has not been paid in full within 60 days from the date | 6 |
| such fee or tax
became due to the Secretary of State, the | 7 |
| Secretary of State shall
assess a penalty of 25% of such amount | 8 |
| remaining unpaid.
| 9 |
| All amounts payable under this Section shall be computed to | 10 |
| the
nearest dollar.
| 11 |
| (d) The minimum fee and tax to be paid by any applicant for
| 12 |
| apportionment of a fleet of vehicles under this Code shall be | 13 |
| $15
if the application was filed on or before the date | 14 |
| specified by the
Secretary together with fees and taxes due. If | 15 |
| an application and the
fees or taxes due are filed after the | 16 |
| date specified by the Secretary,
the Secretary may prescribe | 17 |
| the payment of interest at the rate of 1/2
of 1% per month or | 18 |
| fraction thereof after such due date and a minimum of
$8.
| 19 |
| (e) Trucks, truck tractors, truck tractors with loads, and | 20 |
| motor buses,
any one of which having a combined total weight in | 21 |
| excess of 12,000 lbs.
shall file an application for a Fleet | 22 |
| Reciprocity Permit issued by the
Secretary of State. This | 23 |
| permit shall be in the possession of any driver
operating a | 24 |
| vehicle on Illinois highways. Any foreign licensed vehicle of | 25 |
| the
second division operating at any time in Illinois without a | 26 |
| Fleet Reciprocity
Permit or other proper Illinois | 27 |
| registration, shall subject the operator to the
penalties | 28 |
| provided in Section 3-834 of this Code. For the purposes of | 29 |
| this
Code, "Fleet Reciprocity Permit" means any second division | 30 |
| motor vehicle with a
foreign license and used only in | 31 |
| interstate transportation of goods. The fee
for such permit | 32 |
| shall be $15 per fleet which shall include all
vehicles of the | 33 |
| fleet being registered.
| 34 |
| (f) For purposes of this Section, "all-terrain vehicle or |
|
|
|
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| 1 |
| off-highway
motorcycle used for production agriculture" means | 2 |
| any all-terrain vehicle or
off-highway motorcycle used in the | 3 |
| raising
of or the propagation of livestock, crops for sale for | 4 |
| human consumption,
crops for livestock consumption, and | 5 |
| production seed stock grown for the
propagation of feed grains | 6 |
| and the husbandry of animals or for the purpose
of providing a | 7 |
| food product, including the husbandry of blood stock as a
main | 8 |
| source of providing a food product.
"All-terrain vehicle or | 9 |
| off-highway motorcycle used in production agriculture"
also | 10 |
| means any all-terrain vehicle or off-highway motorcycle used in | 11 |
| animal
husbandry, floriculture, aquaculture, horticulture, and | 12 |
| viticulture.
| 13 |
| (Source: P.A. 91-37, eff. 7-1-99;
91-441, eff. 1-1-00; 92-16, | 14 |
| eff. 6-28-01 .)
| 15 |
| (625 ILCS 5/3-821.2 new) | 16 |
| Sec. 3-821.2. Delinquent Registration Renewal Fee. For | 17 |
| registration renewal periods beginning on or after January 1, | 18 |
| 2005, the Secretary of State may impose a delinquent | 19 |
| registration renewal fee of $20 for the registration renewal of | 20 |
| all passenger vehicles of the first division and motor vehicles | 21 |
| of the second division weighing not more than 8,000 pounds if | 22 |
| the application for registration renewal is received by the | 23 |
| Secretary more than one month after the expiration of the most | 24 |
| recent period during which the vehicle was registered. If a | 25 |
| delinquent registration renewal fee is imposed, the Secretary | 26 |
| shall not renew the registration of such a vehicle until the | 27 |
| delinquent registration renewal fee has been paid, in addition | 28 |
| to any other registration fees owed for the vehicle. Active | 29 |
| duty military personnel stationed outside of Illinois shall not | 30 |
| be required to pay the delinquent registration renewal fee. If | 31 |
| a delinquent registration renewal fee is imposed, the Secretary | 32 |
| shall adopt rules for the implementation of this Section.
|
|
|
|
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| 1 |
| (625 ILCS 5/11-501) (from Ch. 95 1/2, par. 11-501)
| 2 |
| Sec. 11-501. Driving while under the influence of alcohol, | 3 |
| other drug or
drugs, intoxicating compound or compounds or any | 4 |
| combination thereof.
| 5 |
| (a) A person shall not drive or be in actual
physical | 6 |
| control of any vehicle within this State while:
| 7 |
| (1) the alcohol concentration in the person's blood or | 8 |
| breath is 0.08
or more based on the definition of blood and | 9 |
| breath units in Section 11-501.2;
| 10 |
| (2) under the influence of alcohol;
| 11 |
| (3) under the influence of any intoxicating compound or | 12 |
| combination of
intoxicating compounds to a degree that | 13 |
| renders the person incapable of
driving safely;
| 14 |
| (4) under the influence of any other drug or | 15 |
| combination of drugs to a
degree that renders the person | 16 |
| incapable of safely driving;
| 17 |
| (5) under the combined influence of alcohol, other drug | 18 |
| or drugs, or
intoxicating compound or compounds to a degree | 19 |
| that renders the person
incapable of safely driving; or
| 20 |
| (6) there is any amount of a drug, substance, or | 21 |
| compound in the
person's breath, blood, or urine resulting | 22 |
| from the unlawful use or consumption
of cannabis listed in | 23 |
| the Cannabis Control Act, a controlled substance listed
in | 24 |
| the Illinois Controlled Substances Act, or an intoxicating | 25 |
| compound listed
in the Use of Intoxicating Compounds Act.
| 26 |
| (b) The fact that any person charged with violating this | 27 |
| Section is or
has been legally entitled to use alcohol, other | 28 |
| drug or drugs, or
intoxicating compound or compounds, or any
| 29 |
| combination thereof, shall not constitute a defense against any | 30 |
| charge of
violating this Section.
| 31 |
| (c) Except as provided under paragraphs (c-3), (c-4), and | 32 |
| (d) of this
Section,
every person convicted of violating this | 33 |
| Section or a similar provision of a
local ordinance, shall be | 34 |
| guilty of a Class A misdemeanor and, in addition to
any other |
|
|
|
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| 1 |
| criminal or administrative action, for any second conviction of
| 2 |
| violating this Section or a similar provision of a law of | 3 |
| another state or
local ordinance committed within 5 years of a | 4 |
| previous violation of this
Section or a similar provision of a | 5 |
| local ordinance shall be mandatorily
sentenced to a minimum of | 6 |
| 5 days of imprisonment or assigned to a
minimum of 30 days of | 7 |
| community service as may be determined by the court.
Every | 8 |
| person convicted of violating this Section or a similar | 9 |
| provision of a
local ordinance shall be subject to an | 10 |
| additional mandatory minimum fine of
$500 and an additional
| 11 |
| mandatory 5 days of community service in a program benefiting | 12 |
| children if the
person committed a violation of paragraph (a) | 13 |
| or a similar provision of a local
ordinance while transporting | 14 |
| a person under age 16. Every person
convicted a second time for | 15 |
| violating this Section or a similar provision of a
local | 16 |
| ordinance within 5 years of a previous violation of this | 17 |
| Section or a
similar provision of a law of another state or | 18 |
| local ordinance shall be subject
to an additional mandatory | 19 |
| minimum
fine of $500 and an additional 10 days of mandatory | 20 |
| community service in a
program benefiting
children if the | 21 |
| current offense was committed while transporting a person
under | 22 |
| age 16. The imprisonment or assignment under this subsection
| 23 |
| shall not be subject to suspension nor shall the person be | 24 |
| eligible for
probation in order to reduce the sentence or | 25 |
| assignment.
| 26 |
| (c-1) (1) A person who violates this Section during a | 27 |
| period in which his
or her driving privileges are revoked | 28 |
| or suspended, where the revocation or
suspension was for a | 29 |
| violation of this Section, Section 11-501.1, paragraph (b)
| 30 |
| of Section 11-401, or Section 9-3 of the Criminal Code of | 31 |
| 1961 is guilty of a
Class 4 felony.
| 32 |
| (2) A person who violates this Section a third time | 33 |
| during a period in
which his or her driving privileges are | 34 |
| revoked or suspended where the
revocation
or suspension was |
|
|
|
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| 1 |
| for a violation of this Section, Section 11-501.1, | 2 |
| paragraph
(b) of Section 11-401, or Section 9-3 of the | 3 |
| Criminal Code of 1961 is guilty of
a Class 3 felony.
| 4 |
| (3) A person who violates this Section a fourth or | 5 |
| subsequent time
during a period in which his
or her driving | 6 |
| privileges are revoked or suspended where the revocation
or | 7 |
| suspension was for a violation of this Section, Section | 8 |
| 11-501.1, paragraph
(b) of Section 11-401, or Section 9-3 | 9 |
| of the Criminal Code of 1961 is guilty of
a Class 2 felony.
| 10 |
| (c-2) (Blank).
| 11 |
| (c-3) Every person convicted of violating this Section or a | 12 |
| similar
provision of a local ordinance who had a child under | 13 |
| age 16 in the vehicle at
the time of the offense shall have his | 14 |
| or her punishment under this Act
enhanced by 2 days of | 15 |
| imprisonment for a first offense, 10 days of imprisonment
for a | 16 |
| second offense, 30 days of imprisonment for a third offense, | 17 |
| and 90 days
of imprisonment for a fourth or subsequent offense, | 18 |
| in addition to the fine and
community service required under | 19 |
| subsection (c) and the possible imprisonment
required under | 20 |
| subsection (d). The imprisonment or assignment under this
| 21 |
| subsection shall not be subject to suspension nor shall the | 22 |
| person be eligible
for probation in order to reduce the | 23 |
| sentence or assignment.
| 24 |
| (c-4) When a person is convicted of violating Section | 25 |
| 11-501 of this
Code or a similar provision of a local | 26 |
| ordinance, the following penalties apply
when his or her blood, | 27 |
| breath, or urine was
.16 or more based on the definition of | 28 |
| blood, breath, or urine units in Section
11-501.2 or when that | 29 |
| person is convicted of violating this Section while
| 30 |
| transporting a child under the age of 16:
| 31 |
| (1) A person who is convicted of violating subsection | 32 |
| (a) of Section
11-501 of this
Code a
first time, in | 33 |
| addition to any other penalty that may be imposed under
| 34 |
| subsection (c), is subject to
a mandatory minimum of
100 |
|
|
|
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| 1 |
| hours
of community service
and
a minimum fine of $500.
| 2 |
| (2) A person who is convicted of violating subsection | 3 |
| (a) of Section
11-501 of this
Code a
second time within 10 | 4 |
| years, in addition to any other penalty
that may be imposed | 5 |
| under subsection (c), is subject to
a mandatory minimum of | 6 |
| 2 days of imprisonment
and
a minimum fine of $1,250.
| 7 |
| (3) A person who is convicted of violating subsection | 8 |
| (a) of Section
11-501 of this
Code a third time within 20 | 9 |
| years is guilty of a Class 4 felony and, in
addition to any
| 10 |
| other penalty that may be imposed under subsection (c), is | 11 |
| subject to
a mandatory minimum of 90 days of imprisonment | 12 |
| and
a minimum fine of $2,500.
| 13 |
| (4) A person who is convicted of violating this | 14 |
| subsection (c-4) a fourth
or subsequent
time is
guilty of a | 15 |
| Class 2 felony and, in addition to any other penalty
that | 16 |
| may be imposed under subsection (c), is not
eligible for a | 17 |
| sentence of probation or conditional
discharge and is
| 18 |
| subject to a minimum fine of $2,500.
| 19 |
| (d) (1) Every person convicted of committing a violation of | 20 |
| this Section
shall be guilty of aggravated driving under | 21 |
| the influence of alcohol,
other drug or drugs, or | 22 |
| intoxicating compound or compounds, or any combination
| 23 |
| thereof if:
| 24 |
| (A) the person committed a violation of this | 25 |
| Section, or a similar
provision of a law of another | 26 |
| state or a local ordinance when the cause of
action is | 27 |
| the same as or substantially similar to this Section, | 28 |
| for the
third or subsequent time;
| 29 |
| (B) the person committed a violation of paragraph | 30 |
| (a) while
driving a school bus with children on board;
| 31 |
| (C) the person in committing a violation of | 32 |
| paragraph (a) was
involved in a motor vehicle accident | 33 |
| that resulted in great bodily harm or
permanent | 34 |
| disability or disfigurement to another, when the |
|
|
|
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| 1 |
| violation was
a proximate cause of the injuries;
| 2 |
| (D) the person committed a violation of paragraph | 3 |
| (a) for a
second time and has been previously convicted | 4 |
| of violating Section 9-3 of the
Criminal Code of 1961 | 5 |
| relating to reckless homicide in which the person was
| 6 |
| determined to have been under the influence of alcohol, | 7 |
| other drug or
drugs, or intoxicating compound or | 8 |
| compounds as an element of the offense or
the person | 9 |
| has previously been convicted
under subparagraph (C) | 10 |
| or subparagraph (F) of this paragraph (1);
| 11 |
| (E) the person, in committing a violation of | 12 |
| paragraph (a) while
driving at any speed in a school | 13 |
| speed zone at a time when a speed limit of
20 miles per | 14 |
| hour was in effect under subsection (a) of Section | 15 |
| 11-605 of
this Code, was involved in a motor vehicle | 16 |
| accident that resulted in bodily
harm, other than great | 17 |
| bodily harm or permanent disability or disfigurement,
| 18 |
| to another person, when the violation of paragraph (a) | 19 |
| was a proximate cause
of the bodily harm; or
| 20 |
| (F) the person, in committing a violation of | 21 |
| paragraph (a), was
involved in a motor vehicle, | 22 |
| snowmobile, all-terrain vehicle, or watercraft
| 23 |
| accident that resulted in
the death of another person, | 24 |
| when the violation of paragraph (a) was
a proximate | 25 |
| cause of the death.
| 26 |
| (2) Except as provided in this paragraph (2), | 27 |
| aggravated driving under
the
influence of alcohol, other | 28 |
| drug or
drugs,
or intoxicating compound or compounds, or | 29 |
| any
combination thereof is a Class 4 felony. For a | 30 |
| violation of subparagraph (C)
of
paragraph (1) of this | 31 |
| subsection (d), the defendant, if sentenced to a term
of | 32 |
| imprisonment, shall be sentenced
to not less than
one year | 33 |
| nor more than 12 years.
Aggravated driving under the | 34 |
| influence of alcohol, other drug or drugs,
or intoxicating |
|
|
|
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| 1 |
| compound or compounds, or any combination thereof as
| 2 |
| defined in subparagraph (F) of paragraph (1) of this | 3 |
| subsection (d) is
a Class 2 felony, for which the | 4 |
| defendant, if sentenced to a term of
imprisonment, shall be | 5 |
| sentenced to: (A) a
term of imprisonment of not less than 3 | 6 |
| years and not more
than 14 years if the violation resulted | 7 |
| in the death of one person; or
(B) a term of imprisonment | 8 |
| of not less than 6 years and not
more than 28 years if the | 9 |
| violation resulted in the deaths of 2 or more
persons.
For | 10 |
| any prosecution under this subsection
(d), a certified copy | 11 |
| of the
driving abstract of the defendant shall be admitted | 12 |
| as proof of any prior
conviction.
| 13 |
| (e) After a finding of guilt and prior to any final | 14 |
| sentencing, or an
order for supervision, for an offense based | 15 |
| upon an arrest for a
violation of this Section or a similar | 16 |
| provision of a local ordinance,
individuals shall be required | 17 |
| to undergo a professional evaluation to
determine if an | 18 |
| alcohol, drug, or intoxicating compound abuse problem exists
| 19 |
| and the
extent of the problem, and undergo the imposition of | 20 |
| treatment as appropriate.
Programs conducting these | 21 |
| evaluations shall be
licensed by the Department of Human | 22 |
| Services. The cost of any professional
evaluation shall be paid | 23 |
| for by the
individual
required to undergo the professional | 24 |
| evaluation.
| 25 |
| (e-1) Any person who is found guilty of or pleads guilty to | 26 |
| violating this
Section, including any person receiving a | 27 |
| disposition of court supervision for
violating this Section, | 28 |
| may be required by the Court to attend a victim
impact panel | 29 |
| offered by, or under contract with, a County State's Attorney's
| 30 |
| office, a probation and court services department, Mothers | 31 |
| Against Drunk
Driving,
or the Alliance Against Intoxicated | 32 |
| Motorists.
All costs generated by
the victim impact panel shall | 33 |
| be paid from fees collected from the
offender or as may be | 34 |
| determined by the court.
|
|
|
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| 1 |
| (f) Every person found guilty of violating this Section, | 2 |
| whose
operation of a motor vehicle while in violation of this | 3 |
| Section proximately
caused any incident resulting in an | 4 |
| appropriate emergency response, shall
be liable for the expense | 5 |
| of an emergency response as provided under
Section 5-5-3 of the | 6 |
| Unified Code of Corrections.
| 7 |
| (g) The Secretary of State shall revoke the driving | 8 |
| privileges of any
person convicted under this Section or a | 9 |
| similar provision of a local
ordinance.
| 10 |
| (h) Every person sentenced under paragraph (2) or (3) of | 11 |
| subsection (c-1)
of this Section or subsection (d) of this | 12 |
| Section and who
receives a term of probation or conditional | 13 |
| discharge shall be required to
serve a minimum term of either | 14 |
| 60 days community service or 10 days of
imprisonment as a | 15 |
| condition of the probation or
conditional discharge. This | 16 |
| mandatory minimum term of imprisonment or
assignment of | 17 |
| community service shall not be suspended and shall
not be | 18 |
| subject to reduction by the court.
| 19 |
| (i) The Secretary of State shall require the use of | 20 |
| ignition interlock
devices on all vehicles owned by an | 21 |
| individual who has been convicted of a
second
or subsequent | 22 |
| offense of this Section or a similar provision of a local
| 23 |
| ordinance. The Secretary shall establish by rule and regulation | 24 |
| the procedures
for certification and use of the interlock | 25 |
| system.
| 26 |
| (j) In addition to any other penalties and liabilities, a | 27 |
| person who is
found guilty of or pleads guilty to violating | 28 |
| this Section, including any
person placed on court supervision | 29 |
| for violating this Section, shall be fined
$500
$100 , payable | 30 |
| to the
circuit clerk, who shall distribute the money as | 31 |
| follows: 20% to the law enforcement agency
that made the arrest | 32 |
| and 80% shall be forwarded to the State Treasurer for deposit | 33 |
| into the General Revenue Fund . If the person has been | 34 |
| previously convicted of violating
this Section or a similar |
|
|
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| provision of a local ordinance, the fine shall be
$1,000
$200 . | 2 |
| In the event that more than one agency is responsible
for the | 3 |
| arrest, the amount payable to law enforcement agencies
$100 or
| 4 |
| $200 shall be shared equally. Any moneys received
by a law
| 5 |
| enforcement agency under this subsection (j) shall be used to | 6 |
| purchase law
enforcement equipment that will assist in the | 7 |
| prevention of alcohol related
criminal violence throughout the | 8 |
| State. This shall include, but is not limited
to, in-car video | 9 |
| cameras, radar and laser speed detection devices, and alcohol
| 10 |
| breath testers.
Any moneys received by the Department of State | 11 |
| Police under this subsection
(j) shall be deposited into the | 12 |
| State Police DUI Fund and shall be used to
purchase law | 13 |
| enforcement equipment that will assist in the prevention of
| 14 |
| alcohol related criminal violence throughout the State.
| 15 |
| (k) The Secretary of State Police DUI Fund is created as a | 16 |
| special
fund in the State treasury. All moneys received by the | 17 |
| Secretary of State
Police under subsection (j) of this Section | 18 |
| shall be deposited into the
Secretary of State Police DUI Fund | 19 |
| and, subject to appropriation, shall be
used to purchase law | 20 |
| enforcement equipment to assist in the prevention of
alcohol | 21 |
| related criminal violence throughout the State.
| 22 |
| (Source: P.A. 92-248, eff. 8-3-01; 92-418, eff. 8-17-01;
| 23 |
| 92-420, eff. 8-17-01; 92-429, eff. 1-1-02; 92-431, eff. 1-1-02; | 24 |
| 92-651, eff.
7-11-02; 93-156, eff. 1-1-04; 93-213, eff. | 25 |
| 7-18-03; 93-584, eff.
8-22-03; revised 8-27-03.)
|
|
26 |
| ARTICLE 35 |
27 |
| Section 35-1. Short title. This Article may be cited as the | 28 |
| Tax Shelter Voluntary Compliance Law, and references in this | 29 |
| Article to "this Law" mean this Article. |
|
30 |
| Section 35-5. Tax Shelter Voluntary Compliance Program. | 31 |
| (a) In general. The Department of Revenue shall establish |
|
|
|
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| 1 |
| and administer a tax shelter voluntary compliance program as | 2 |
| provided in this Section for eligible taxpayers subject to tax | 3 |
| under the Illinois Income Tax Act. The tax shelter voluntary | 4 |
| compliance program shall be conducted from October 15, 2004 to | 5 |
| January 31, 2005 and shall apply to tax liabilities under | 6 |
| Section 201 of the Illinois Income Tax Act attributable to the | 7 |
| use of tax avoidance transactions for taxable years beginning | 8 |
| before January 1, 2004. The Department shall adopt rules, issue | 9 |
| forms and instructions, and take such other actions as it deems | 10 |
| necessary to implement the provisions of this Law. Any | 11 |
| correspondence mailed by the Department to a taxpayer at the | 12 |
| taxpayer's last known address outlining the tax shelter | 13 |
| voluntary compliance program constitutes a "contact" within | 14 |
| the meaning of Sections 1005(b)(6) and 1005(c) of the Illinois | 15 |
| Income Tax Act.
| 16 |
| (b) Election. An eligible taxpayer that meets the | 17 |
| requirements of subsection (c) of this Section with respect to | 18 |
| any taxable year to which this Law applies may elect to | 19 |
| participate in the tax shelter voluntary compliance program | 20 |
| under either method for any particular tax avoidance | 21 |
| transaction period. Such election shall be made separately for | 22 |
| each taxable year and in the form and manner prescribed by the | 23 |
| Department, and once made shall be irrevocable.
| 24 |
| (1) Voluntary compliance without appeal. If an | 25 |
| eligible taxpayer elects to participate under this | 26 |
| paragraph, then: (i) the Department shall abate and not | 27 |
| seek to collect any penalty that may be applicable to the | 28 |
| underreporting or underpayment of Illinois income tax | 29 |
| attributable to the use of tax avoidance transactions for | 30 |
| such taxable year, (ii) except as otherwise provided in | 31 |
| this Law, the Department shall not seek civil or criminal | 32 |
| prosecution against the taxpayer for such taxable year with | 33 |
| respect to tax avoidance transactions, and (iii) the | 34 |
| taxpayer may not file a claim for credit or refund with |
|
|
|
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| 1 |
| respect to the tax avoidance transaction for such taxable | 2 |
| year. Nothing in this subsection shall preclude a taxpayer | 3 |
| from filing a claim for credit or refund for the same | 4 |
| taxable year in which a tax avoidance transaction was | 5 |
| reported if such credit or refund is not attributable to | 6 |
| the tax avoidance transaction. No penalty may be waived or | 7 |
| abated under this Law if the penalty imposed related to an | 8 |
| amount of Illinois income tax assessed prior to October 15, | 9 |
| 2004. | 10 |
| (2) Voluntary compliance with appeal. If an eligible | 11 |
| taxpayer elects to participate under this paragraph, then: | 12 |
| (i) the Department shall abate and not seek to collect the | 13 |
| penalties imposed under Sections 1005(b) and 1005(c) of the | 14 |
| Illinois Income Tax Act with respect to such taxable year, | 15 |
| (ii) except as otherwise provided in this Act, the | 16 |
| Department shall not seek civil or criminal prosecution | 17 |
| against the taxpayer for such taxable year with respect to | 18 |
| tax avoidance transactions, and (iii) the taxpayer may file | 19 |
| a claim for credit or refund as provided in the Illinois | 20 |
| Income Tax Act with respect to such taxable year. | 21 |
| Notwithstanding Section 909(e) of the Illinois Income Tax | 22 |
| Act, the taxpayer may not file a written protest until | 23 |
| after either of the following: (i) the Department issues a | 24 |
| notice of denial, or (ii) the earlier of (1) the date which | 25 |
| is 180 days after the date of a final determination by the | 26 |
| Internal Revenue Service with respect to the transactions | 27 |
| at issue, or (2) the date that is 3 years after the date | 28 |
| the claim for refund was filed or one year after full | 29 |
| payment of all tax, including penalty and interest. No | 30 |
| penalty may be waived or abated under this Act if the | 31 |
| penalty imposed relates to an amount of Illinois income tax | 32 |
| assessed prior to October 15, 2004.
| 33 |
| (c) Eligible taxpayer. The tax shelter voluntary | 34 |
| compliance program applies to any taxpayer who, during the |
|
|
|
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| 1 |
| period from October 15, 2004 to January 31, 2005, does both of | 2 |
| the following:
| 3 |
| (1) Files an amended return for the taxable year for | 4 |
| which the taxpayer used a tax avoidance transaction to | 5 |
| under report the taxpayer's Illinois income tax liability, | 6 |
| reporting the total Illinois net income and tax for such | 7 |
| taxable year computed without regard to any tax avoidance | 8 |
| transactions;
| 9 |
| (2) Makes full payment of the additional Illinois | 10 |
| income tax and interest due for such taxable year that is | 11 |
| attributable to the use of the tax avoidance transaction | 12 |
| (not including a payment made under protest as provided in | 13 |
| Section 2a.1 of the State Officers and Employees Money | 14 |
| Disposition Act (30 ILCS 230/2a.1));
| 15 |
| For purposes of this subsection (c), if the Department | 16 |
| subsequently determines that the correct amount of Illinois | 17 |
| income tax was not paid for the taxable year, then the penalty | 18 |
| relief under this Section shall not apply to any portion of the | 19 |
| underpayment attributable to a tax avoidance transaction not | 20 |
| paid to the State.
|
|
21 |
| Section 35-10. "Tax avoidance transaction" defined. For | 22 |
| purposes of this Law, the term "tax avoidance transaction" | 23 |
| means a plan or arrangement devised for the principal purpose | 24 |
| of avoiding federal income tax. Tax avoidance transactions | 25 |
| include, but are not limited to, "listed transactions" as | 26 |
| defined in Treasury Regulations Section 1.6011-4(b)(2).
|
|
27 |
| Section 35-15. Use of evidence of participation in the | 28 |
| program. The fact of a taxpayer's participation in the tax | 29 |
| shelter voluntary compliance program shall not be considered | 30 |
| evidence that the taxpayer in fact engaged in a tax avoidance | 31 |
| transaction.
|
|
1 |
| Section 35-90. The Illinois Income Tax Act is amended by | 2 |
| changing Sections 501, 905, 1001, 1002, and 1005 and by adding | 3 |
| Sections 1007, 1008, 1405.5, and 1405.6 as follows:
| 4 |
| (35 ILCS 5/501) (from Ch. 120, par. 5-501)
| 5 |
| Sec. 501. Notice
or Regulations Requiring Records, | 6 |
| Statements and Special Returns.
| 7 |
| (a) In general. Every person liable for any tax imposed by | 8 |
| this Act shall keep such
records, render such statements, make | 9 |
| such returns and notices, and comply
with such rules and | 10 |
| regulations as the Department may from time to time
prescribe. | 11 |
| Whenever in the judgment of the Director it is necessary, he | 12 |
| may
require any person, by notice served upon such person or by | 13 |
| regulations, to
make such returns and notices, render such | 14 |
| statements, or keep such
records, as the Director deems | 15 |
| sufficient to show whether or not such
person is liable for tax | 16 |
| under this Act.
| 17 |
| (b) Reportable transactions. For each taxable year in which | 18 |
| a taxpayer is required to make a disclosure statement under | 19 |
| Treasury Regulations Section 1.6011-4 (26 CFR 1.6011-4) | 20 |
| (including any taxpayer that is a member of a consolidated | 21 |
| group required to make such disclosure) with respect to a | 22 |
| reportable transaction (including a listed transaction) in | 23 |
| which the taxpayer participated in a taxable year for which a | 24 |
| return is required under Section 502 of this Act, such taxpayer | 25 |
| shall file a copy of such disclosure with the Department. | 26 |
| Disclosure under this subsection is required to be made by any | 27 |
| taxpayer that is a member of a unitary business group that | 28 |
| includes any person required to make a disclosure statement | 29 |
| under Treasury Regulations Section 1.6011-4. Disclosure under | 30 |
| this subsection is required with respect to any transaction | 31 |
| entered into after February 28, 2000 that becomes a listed | 32 |
| transaction at any time, and shall be made in the manner | 33 |
| prescribed by the Department. With respect to transactions in |
|
|
|
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| which the taxpayer participated for taxable years ending before | 2 |
| December 31, 2004, disclosure shall be made by the due date | 3 |
| (including extensions) of the first return required under | 4 |
| Section 502 of this Act due after the effective date of this | 5 |
| amendatory Act of the 93rd General Assembly. With respect to | 6 |
| transactions in which the taxpayer participated for taxable | 7 |
| years ending on and after December 31, 2004, disclosure shall | 8 |
| be made in the time and manner prescribed in Treasury | 9 |
| Regulations Section 1.6011-4(e). Notwithstanding the above, no | 10 |
| disclosure is required for transactions entered into after | 11 |
| February 28, 2000 and before January 1, 2005 (i) if the | 12 |
| taxpayer has filed an amended Illinois income tax return which | 13 |
| reverses the tax benefits of the potential tax avoidance | 14 |
| transaction, or (ii) as a result of a federal audit the | 15 |
| Internal Revenue Service has determined the tax treatment of | 16 |
| the transaction and an Illinois amended return has been filed | 17 |
| to reflect the federal treatment. | 18 |
| (Source: P.A. 76-261.)
| 19 |
| (35 ILCS 5/905) (from Ch. 120, par. 9-905)
| 20 |
| Sec. 905. Limitations on Notices of Deficiency.
| 21 |
| (a) In general. Except as otherwise provided in this Act:
| 22 |
| (1) A notice of deficiency shall be issued not later | 23 |
| than 3 years
after the date the return was filed, and
| 24 |
| (2) No deficiency shall be assessed or collected with | 25 |
| respect to the
year for which the return was filed unless | 26 |
| such notice is issued within such
period.
| 27 |
| (b) Substantial omission of items. | 28 |
| (1) Omission of more than 25% of income. If the | 29 |
| taxpayer omits
from base income an amount properly | 30 |
| includible therein which is in
excess of 25% of the amount | 31 |
| of base income stated in the return, a
notice of deficiency | 32 |
| may be issued not later than 6 years after the
return was | 33 |
| filed. For purposes of this paragraph, there shall not be
|
|
|
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| taken into account any amount which is omitted in the | 2 |
| return if such
amount is disclosed in the return, or in a | 3 |
| statement attached to the
return, in a manner adequate to | 4 |
| apprise the Department of the nature and
the amount of such | 5 |
| item.
| 6 |
| (2) Reportable transactions. If a taxpayer fails to | 7 |
| include on any return or statement for any taxable year any | 8 |
| information with respect to a reportable transaction, as | 9 |
| required under Section 501(b) of this Act, a notice of | 10 |
| deficiency may be issued not later than 6 years after the | 11 |
| return is filed with respect to the taxable year in which | 12 |
| the taxpayer participated in the reportable transaction | 13 |
| and said deficiency is limited to the non-disclosed item.
| 14 |
| (c) No return or fraudulent return. If no return is filed | 15 |
| or a
false and fraudulent return is filed with intent to evade | 16 |
| the tax
imposed by this Act, a notice of deficiency may be | 17 |
| issued at any time.
| 18 |
| (d) Failure to report federal change. If a taxpayer fails | 19 |
| to
notify the Department in any case where notification is | 20 |
| required by
Section 304(c) or 506(b), or fails to report a | 21 |
| change or correction which is
treated in the same manner as if | 22 |
| it were a deficiency for federal income
tax purposes, a notice | 23 |
| of deficiency may be issued (i) at any time or
(ii) on or after | 24 |
| August 13, 1999, at any time for the
taxable year for which the | 25 |
| notification is required or for any taxable year to
which the | 26 |
| taxpayer may carry an Article 2 credit, or a Section 207 loss,
| 27 |
| earned, incurred, or used in the year for which the | 28 |
| notification is required;
provided, however, that the amount of | 29 |
| any proposed assessment set forth in the
notice shall be | 30 |
| limited to the amount of any deficiency resulting under this
| 31 |
| Act from the recomputation of the taxpayer's net income, | 32 |
| Article 2 credits, or
Section 207 loss earned, incurred, or | 33 |
| used in the taxable year for which the
notification is required | 34 |
| after giving effect to the item or items required to
be |
|
|
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| reported.
| 2 |
| (e) Report of federal change.
| 3 |
| (1) Before August 13, 1999, in any case where | 4 |
| notification of
an alteration is given as required by | 5 |
| Section 506(b), a notice of
deficiency may be issued at any | 6 |
| time within 2 years after the date such
notification is | 7 |
| given, provided, however, that the amount of any
proposed | 8 |
| assessment set forth in such notice shall be limited to the
| 9 |
| amount of any deficiency resulting under this Act from | 10 |
| recomputation of
the taxpayer's net income, net loss, or | 11 |
| Article 2 credits
for the taxable year after giving
effect | 12 |
| to the item
or items reflected in the reported alteration.
| 13 |
| (2) On and after August 13, 1999, in any case where | 14 |
| notification of
an alteration is given as required by | 15 |
| Section 506(b), a notice of
deficiency may be issued at any | 16 |
| time within 2 years after the date such
notification is | 17 |
| given for the taxable year for which the notification is
| 18 |
| given or for any taxable year to which the taxpayer may | 19 |
| carry an Article 2
credit, or a Section 207 loss, earned, | 20 |
| incurred, or used in the year for which
the notification is | 21 |
| given, provided, however, that the amount of any
proposed | 22 |
| assessment set forth in such notice shall be limited to the
| 23 |
| amount of any deficiency resulting under this Act from | 24 |
| recomputation of
the taxpayer's net income, Article 2 | 25 |
| credits, or Section 207
loss earned, incurred, or used in
| 26 |
| the taxable year for which the notification is given after | 27 |
| giving
effect to the item
or items reflected in the | 28 |
| reported alteration.
| 29 |
| (f) Extension by agreement. Where, before the expiration of | 30 |
| the
time prescribed in this Section for the issuance of a | 31 |
| notice of
deficiency, both the Department and the taxpayer | 32 |
| shall have consented in
writing to its issuance after such | 33 |
| time, such notice may be issued at
any time prior to the | 34 |
| expiration of the period agreed upon.
In the case of a taxpayer |
|
|
|
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| who is a partnership, Subchapter S corporation, or
trust and | 2 |
| who enters into an agreement with the Department pursuant to | 3 |
| this
subsection on or after January 1, 2003, a notice of | 4 |
| deficiency may be issued to
the partners, shareholders, or | 5 |
| beneficiaries of the taxpayer at any time prior
to the | 6 |
| expiration of the period agreed upon. Any
proposed assessment | 7 |
| set forth in the notice, however, shall be limited to the
| 8 |
| amount of
any deficiency resulting under this Act from | 9 |
| recomputation of items of income,
deduction, credits, or other | 10 |
| amounts of the taxpayer that are taken into
account by the | 11 |
| partner, shareholder, or beneficiary in computing its | 12 |
| liability
under this Act.
The period
so agreed upon may be | 13 |
| extended by subsequent agreements in writing made
before the | 14 |
| expiration of the period previously agreed upon.
| 15 |
| (g) Erroneous refunds. In any case in which there has been | 16 |
| an
erroneous refund of tax payable under this Act, a notice of | 17 |
| deficiency
may be issued at any time within 2 years from the | 18 |
| making of such refund,
or within 5 years from the making of | 19 |
| such refund if it appears that any
part of the refund was | 20 |
| induced by fraud or the misrepresentation of a
material fact, | 21 |
| provided, however, that the amount of any proposed
assessment | 22 |
| set forth in such notice shall be limited to the amount of
such | 23 |
| erroneous refund.
| 24 |
| Beginning July 1, 1993, in any case in which there has been | 25 |
| a refund of tax
payable under this Act attributable to a net | 26 |
| loss carryback as provided for in
Section 207, and that refund | 27 |
| is subsequently determined to be an erroneous
refund due to a | 28 |
| reduction in the amount of the net loss which was originally
| 29 |
| carried back, a notice of deficiency for the erroneous refund | 30 |
| amount may be
issued at any time during the same time period in | 31 |
| which a notice of deficiency
can be issued on the loss year | 32 |
| creating the carryback amount and subsequent
erroneous refund. | 33 |
| The amount of any proposed assessment set forth in the notice
| 34 |
| shall be limited to the amount of such erroneous refund.
|
|
|
|
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| (h) Time return deemed filed. For purposes of this Section | 2 |
| a tax
return filed before the last day prescribed by law | 3 |
| (including any
extension thereof) shall be deemed to have been | 4 |
| filed on such last day.
| 5 |
| (i) Request for prompt determination of liability. For | 6 |
| purposes
of subsection (a)(1), in the case of a tax return | 7 |
| required under this
Act in respect of a decedent, or by his | 8 |
| estate during the period of
administration, or by a | 9 |
| corporation, the period referred to in such
Subsection shall be | 10 |
| 18 months after a written request for prompt
determination of | 11 |
| liability is filed with the Department (at such time
and in | 12 |
| such form and manner as the Department shall by regulations
| 13 |
| prescribe) by the executor, administrator, or other fiduciary
| 14 |
| representing the estate of such decedent, or by such | 15 |
| corporation, but
not more than 3 years after the date the | 16 |
| return was filed. This
subsection shall not apply in the case | 17 |
| of a corporation unless:
| 18 |
| (1) (A) such written request notifies the Department | 19 |
| that the
corporation contemplates dissolution at or before | 20 |
| the expiration of such
18-month period, (B) the dissolution | 21 |
| is begun in good faith before the
expiration of such | 22 |
| 18-month period, and (C) the dissolution is completed;
| 23 |
| (2) (A) such written request notifies the Department | 24 |
| that a
dissolution has in good faith been begun, and (B) | 25 |
| the dissolution is
completed; or
| 26 |
| (3) a dissolution has been completed at the time such | 27 |
| written
request is made.
| 28 |
| (j) Withholding tax. In the case of returns required under | 29 |
| Article 7
of this Act (with respect to any amounts withheld as | 30 |
| tax or any amounts
required to have been withheld as tax) a | 31 |
| notice of deficiency shall be
issued not later than 3 years | 32 |
| after the 15th day of the 4th month
following the close of the | 33 |
| calendar year in which such withholding was
required.
| 34 |
| (k) Penalties for failure to make information reports. A |
|
|
|
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| 1 |
| notice of
deficiency for the penalties provided by Subsection | 2 |
| 1405.1(c) of this Act may
not be issued more than 3 years after | 3 |
| the due date of the reports with respect
to which the penalties | 4 |
| are asserted.
| 5 |
| (l) Penalty for failure to file withholding returns. A | 6 |
| notice of deficiency
for penalties provided by Section 1004 of | 7 |
| this Act for taxpayer's failure
to file withholding returns may | 8 |
| not be issued more than three years after
the 15th day of the | 9 |
| 4th month following the close of the calendar year in
which the | 10 |
| withholding giving rise to taxpayer's obligation to file those
| 11 |
| returns occurred.
| 12 |
| (m) Transferee liability. A notice of deficiency may be | 13 |
| issued to a
transferee relative to a liability asserted under | 14 |
| Section 1405 during time
periods defined as follows:
| 15 |
| 1) Initial Transferee. In the case of the liability of | 16 |
| an initial
transferee, up to 2 years after the expiration | 17 |
| of the period of limitation for
assessment against the | 18 |
| transferor, except that if a court proceeding for review
of | 19 |
| the assessment against the transferor has begun, then up to | 20 |
| 2 years after
the return of the certified copy of the | 21 |
| judgment in the court proceeding.
| 22 |
| 2) Transferee of Transferee. In the case of the | 23 |
| liability of a
transferee,
up to 2 years after the | 24 |
| expiration of the period of limitation for assessment
| 25 |
| against the preceding transferee, but not more than 3 years | 26 |
| after the
expiration of the period of limitation for | 27 |
| assessment against the initial
transferor; except that if, | 28 |
| before the expiration of the period of limitation
for the | 29 |
| assessment of the liability of the transferee, a court | 30 |
| proceeding for
the collection of the tax or liability in | 31 |
| respect thereof has been begun
against the initial | 32 |
| transferor or the last preceding transferee, as the case
| 33 |
| may be, then the period of limitation for assessment of the | 34 |
| liability of the
transferee shall expire 2 years after the |
|
|
|
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| 1 |
| return of the certified copy of the
judgment in the court | 2 |
| proceeding.
| 3 |
| (n) Notice of decrease in net loss. On and after the | 4 |
| effective date of
this amendatory Act of the 92nd General | 5 |
| Assembly, no notice of deficiency shall
be issued as the result | 6 |
| of a decrease determined by the Department in the net
loss | 7 |
| incurred by a taxpayer under Section 207 of this Act unless the | 8 |
| Department
has notified the taxpayer of the proposed decrease | 9 |
| within 3 years after the
return reporting the loss was filed or | 10 |
| within one year after an amended return
reporting an increase | 11 |
| in the loss was filed, provided that in the case of an
amended | 12 |
| return, a decrease proposed by the Department more than 3 years | 13 |
| after
the original return was filed may not exceed the increase | 14 |
| claimed by the
taxpayer on the original return.
| 15 |
| (Source: P.A. 91-541, eff. 8-13-99; 92-846, eff.
8-23-02.)
| 16 |
| (35 ILCS 5/1001) (from Ch. 120, par. 10-1001)
| 17 |
| Sec. 1001. Failure to File Tax Returns.
| 18 |
| (a) Failure to file tax return. In case of failure to file | 19 |
| any
tax return required under this Act on the date prescribed | 20 |
| therefor,
(determined with regard to any extensions of time for | 21 |
| filing) there shall
be added as a penalty the amount prescribed | 22 |
| by Section 3-3 of the Uniform
Penalty and Interest Act.
| 23 |
| (b) Failure to disclose reportable transaction. Any | 24 |
| taxpayer who fails to comply with the requirements of Section | 25 |
| 501(b) of this Act shall pay a penalty in the amount determined | 26 |
| under this subsection. Such penalty shall be deemed assessed | 27 |
| upon the date of filing of the return for the taxable year in | 28 |
| which the taxpayer participates in the reportable transaction. | 29 |
| A taxpayer shall not be considered to have complied with the | 30 |
| requirements of Section 501(b) of this Act unless the | 31 |
| disclosure statement filed with the Department includes all of | 32 |
| the information required to be disclosed with respect to a | 33 |
| reportable transaction pursuant to Treasury Regulations |
|
|
|
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| 1 |
| Section 1.6011-4 (26 CFR 1.6011-4) and regulations promulgated | 2 |
| by the Department under Section 501(b) of this Act. | 3 |
| (1) Amount of penalty. Except as provided in paragraph (2), | 4 |
| the amount of the penalty under this subsection shall be | 5 |
| $15,000 for each failure to comply with the requirements of | 6 |
| Section 501(b). | 7 |
| (2) Increase in penalty for listed transactions. In the | 8 |
| case of a failure to comply with the requirements of Section | 9 |
| 501(b) with respect to a "listed transaction", the penalty | 10 |
| under this subsection shall be $30,000 for each failure. | 11 |
| (3) Authority to rescind penalty. The Department may | 12 |
| rescind all or any portion of any penalty imposed by this | 13 |
| subsection with respect to any violation, if any of the | 14 |
| following apply: | 15 |
| (A) It is determined that failure to comply did not | 16 |
| jeopardize the best interests of the State and is not due | 17 |
| to any willful neglect or any intent not to comply; | 18 |
| (B) The person on whom the penalty is imposed has a | 19 |
| history of complying with the requirements of this Act; | 20 |
| (C) It is shown that the violation is due to an | 21 |
| unintentional mistake of fact; | 22 |
| (D) Imposing the penalty would be against equity and | 23 |
| good conscience; | 24 |
| (E) Rescinding the penalty would promote compliance | 25 |
| with the requirements of this Act and effective tax | 26 |
| administration; or | 27 |
| (F) The taxpayer can show that there was a reasonable | 28 |
| cause for the failure to disclose and that the taxpayer | 29 |
| acted in good faith. | 30 |
| A determination made under this subparagraph (3) may be | 31 |
| reviewed in any administrative or judicial proceeding. | 32 |
| (4) Coordination with other penalties. The penalty imposed | 33 |
| by this subsection is in addition to any penalty imposed by | 34 |
| this Act or the Uniform Penalty and Interest Act. The doubling |
|
|
|
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| 1 |
| of penalties and interest authorized by the Illinois Tax | 2 |
| Delinquency Amnesty Act (P.A. 93-26) are not applicable to the | 3 |
| reportable penalties under subsection (b). | 4 |
| (c) The total penalty imposed under subsection (b) of this | 5 |
| Section with respect to any taxable year shall not exceed 10% | 6 |
| of the increase in net income (or reduction in Illinois net | 7 |
| loss under Section 207 of this Act) that would result had the | 8 |
| taxpayer not participated in any reportable transaction | 9 |
| affecting its net income for such taxable year. | 10 |
| (Source: P.A. 87-205 .)
| 11 |
| (35 ILCS 5/1002) (from Ch. 120, par. 10-1002)
| 12 |
| Sec. 1002. Failure to Pay Tax.
| 13 |
| (a) Negligence. If any part of a deficiency is due to | 14 |
| negligence or
intentional disregard of rules and regulations | 15 |
| (but without intent to
defraud) there shall be added to the tax | 16 |
| as a penalty the amount prescribed
by Section 3-5 of the | 17 |
| Uniform Penalty and Interest Act.
| 18 |
| (b) Fraud. If any part of a deficiency is due to fraud, | 19 |
| there
shall be added to the tax as a penalty the amount | 20 |
| prescribed
by Section 3-6 of the Uniform Penalty and Interest | 21 |
| Act.
| 22 |
| (c) Nonwillful failure to pay withholding tax. If any | 23 |
| employer, without
intent to evade or defeat any tax imposed by | 24 |
| this Act or the payment
thereof, shall fail to make a return | 25 |
| and pay a tax withheld by him at the
time required by or under | 26 |
| the provisions of this Act, such employer shall
be liable for | 27 |
| such taxes and shall pay the same together with the interest
| 28 |
| and the penalty provided by Sections 3-2 and 3-3, respectively, | 29 |
| of the
Uniform Penalty and Interest Act and such interest and | 30 |
| penalty shall not be
charged to or collected from the employee | 31 |
| by the employer.
| 32 |
| (d) Willful failure to collect and pay over tax. Any person
| 33 |
| required to collect, truthfully account for, and pay over the |
|
|
|
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| 1 |
| tax
imposed by this Act who willfully fails to collect such tax | 2 |
| or
truthfully account for and pay over such tax or willfully | 3 |
| attempts in
any manner to evade or defeat the tax or the | 4 |
| payment thereof, shall, in
addition to other penalties provided | 5 |
| by law, be liable for the penalty
imposed by Section 3-7 of the | 6 |
| Uniform Penalty and Interest Act.
| 7 |
| (e) Penalties assessable.
| 8 |
| (1) In general. Except as otherwise provided in this | 9 |
| Act
provided in paragraphs (2), (3) and (4) , the
penalties | 10 |
| provided by this Act shall be paid upon notice and demand | 11 |
| and
shall be assessed, collected, and paid in the same | 12 |
| manner as taxes and any
reference in this Act to the tax | 13 |
| imposed by this Act shall be deemed also
to refer to | 14 |
| penalties provided by this Act.
| 15 |
| (2) Procedure for assessing certain penalties. For the | 16 |
| purposes of
Article 9 any penalty under Section 804(a) or | 17 |
| Section 1001 shall be deemed
assessed upon the filing of | 18 |
| the return for the taxable year.
| 19 |
| (3) Procedure for assessing the penalty for failure to | 20 |
| file withholding
returns or annual transmittal forms for | 21 |
| wage and tax statements. The penalty
imposed by Section | 22 |
| 1004 will be asserted by the Department's issuance of
a | 23 |
| notice of deficiency. If taxpayer files a timely protest, | 24 |
| the procedures
of Section 908 will be followed. If taxpayer | 25 |
| does not file a timely protest,
the notice of deficiency | 26 |
| will constitute an assessment pursuant to subsection
(c) of | 27 |
| Section 904.
| 28 |
| (4) Assessment of penalty under Section 1005(b). The | 29 |
| penalty imposed under Section 1005(b) shall be deemed | 30 |
| assessed upon the assessment of the tax to which such | 31 |
| penalty relates and shall be collected and paid on notice | 32 |
| and demand in the same manner as the tax.
| 33 |
| (f) Determination of deficiency. For purposes of | 34 |
| subsections (a)
and (b), the amount shown as the tax by the |
|
|
|
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| 1 |
| taxpayer upon his return
shall be taken into account in | 2 |
| determining the amount of the deficiency
only if such return | 3 |
| was filed on or before the last day prescribed by
law for the | 4 |
| filing of such return, including any extensions of the time
for | 5 |
| such filing.
| 6 |
| (Source: P.A. 89-379, eff. 1-1-96.)
| 7 |
| (35 ILCS 5/1005) (from Ch. 120, par. 10-1005)
| 8 |
| Sec. 1005. Penalty for Underpayment of Tax.
| 9 |
| (a) In general. If any amount of tax required to be shown | 10 |
| on a return
prescribed by this Act is not paid on or before the | 11 |
| date required for
filing such return (determined without regard | 12 |
| to any extension of time to
file), a penalty shall be imposed | 13 |
| in the manner and at the rate prescribed
by the Uniform Penalty | 14 |
| and Interest Act.
| 15 |
| (b) Reportable transaction penalty. If a taxpayer has a | 16 |
| reportable transaction understatement for any taxable year, | 17 |
| there shall be added to the tax an amount equal to 20% of the | 18 |
| amount of that understatement. This penalty shall be deemed | 19 |
| assessed upon the assessment of the tax to which such penalty | 20 |
| relates and shall be collected and paid on notice and demand in | 21 |
| the same manner as the tax. | 22 |
| (1) Reportable transaction understatement. For | 23 |
| purposes of this Section, the term "reportable transaction | 24 |
| understatement" means the sum of subparagraphs (A) and (B): | 25 |
| (A) The product of (i) the amount of the increase | 26 |
| (if any) in Illinois net income, as determined by | 27 |
| reference to the amount of post-apportioned income | 28 |
| that results from a difference between the proper tax | 29 |
| treatment of an item to which this subsection applies | 30 |
| and the taxpayer's treatment of that item (as shown on | 31 |
| the taxpayer's return of tax), including an amended | 32 |
| return filed prior to the date the taxpayer is first | 33 |
| contacted by the Department regarding the examination |
|
|
|
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| 1 |
| of the return, and (ii) the applicable tax rates under | 2 |
| Section 201 of this Act. | 3 |
| (B) Special rules in the case of carrybacks and | 4 |
| carryovers. The penalty for an understatement of | 5 |
| income attributable to a reportable transaction | 6 |
| applies to any portion of an understatement for a year | 7 |
| to which a loss, deduction, or credit is carried that | 8 |
| is attributable to a reportable transaction for that | 9 |
| year in which the carryback or carryover of the loss, | 10 |
| deduction, or credit arises (the "loss or credit | 11 |
| year"). | 12 |
| (2) Items to which subsection applies. This subsection | 13 |
| shall apply to any item which is attributable to either of | 14 |
| the following: (i) any listed transaction as defined in | 15 |
| Treasury Regulations Section 1.6011-4, and (ii) any | 16 |
| reportable transaction as defined in Treasury Regulations | 17 |
| Section 1.6011-4 (other than a listed transaction) if a | 18 |
| significant purpose of the transaction is the avoidance or | 19 |
| evasion of federal income tax. | 20 |
| (3) Subsection (b) shall be applied by substituting | 21 |
| "30%" for "20%" with respect to the portion of any | 22 |
| reportable transaction understatement with respect to | 23 |
| which the requirements of (4)(B)(i) of this subsection are | 24 |
| not met. | 25 |
| (4) Reasonable cause exception. | 26 |
| (A) In general. No penalty shall be imposed under | 27 |
| this subsection with respect to any portion of a | 28 |
| reportable transaction understatement if it is shown | 29 |
| that there was a reasonable cause for such portion and | 30 |
| that the taxpayer acted in good faith with respect to | 31 |
| such portion. | 32 |
| (B) Special rules. Subparagraph (A) does not apply | 33 |
| to any reportable transaction (including listed | 34 |
| transaction) unless all of the following requirements |
|
|
|
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| 1 |
| are met: | 2 |
| (i) The relevant facts affecting the tax | 3 |
| treatment of the item are adequately disclosed in | 4 |
| accordance with Section 501(b) of this Act. A | 5 |
| taxpayer failing to adequately disclose in | 6 |
| accordance with Section 501(b) shall be treated as | 7 |
| meeting the requirements of this subparagraph (i) | 8 |
| if the penalty for that failure was rescinded under | 9 |
| Section 1001(b)(3) of this Act; | 10 |
| (ii) There is or was substantial authority for | 11 |
| such treatment; and | 12 |
| (iii) The taxpayer reasonably believed that | 13 |
| such treatment was more likely than not the proper | 14 |
| treatment. | 15 |
| (C) Rules relating to reasonable belief. For | 16 |
| purposes of subparagraph (B), a taxpayer shall be | 17 |
| treated as having a reasonable belief with respect to | 18 |
| the tax treatment of an item only if such belief meets | 19 |
| the requirements of this subparagraph (C): | 20 |
| (i) Such belief must be based on the facts and | 21 |
| law that exist at the time the return of tax that | 22 |
| includes that tax treatment is filed; | 23 |
| (ii) Such belief must relate solely to the | 24 |
| taxpayer's chances of success on the merits of that | 25 |
| treatment and does not take into account the | 26 |
| possibility that the return will not be audited, | 27 |
| that the treatment will not be raised on audit, or | 28 |
| that the treatment will be resolved through | 29 |
| settlement if it is raised; and | 30 |
| (iii) Such belief is not solely based on the | 31 |
| opinion of a disqualified tax advisor or on a | 32 |
| disqualified opinion. | 33 |
| (5) Definitions. | 34 |
| (A) Disqualified tax advisor. The term |
|
|
|
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| "disqualified tax advisor" is a tax advisor that meets | 2 |
| any of the following conditions: | 3 |
| (I) Is a material advisor who participates in | 4 |
| the organization, management, promotion, or sale | 5 |
| of the transaction or who is related (within the | 6 |
| meaning of Sections 267(b) or 707(b)(1) of the | 7 |
| Internal Revenue Code) to any person who so | 8 |
| participates; | 9 |
| (II) Is compensated directly or indirectly by | 10 |
| a material advisor with respect to the | 11 |
| transaction; | 12 |
| (III) Has a fee arrangement with respect to the | 13 |
| transaction that is contingent on all or part of | 14 |
| the intended tax benefits from the transaction | 15 |
| being sustained; or | 16 |
| (IV) As determined under regulations | 17 |
| prescribed by either the Secretary of the Treasury | 18 |
| for federal income tax purposes or the Department, | 19 |
| has a continuing financial interest with respect | 20 |
| to the transaction. | 21 |
| (B) Disqualified opinion. The term "disqualified | 22 |
| opinion" means an opinion that meets any of the | 23 |
| following conditions: | 24 |
| (I) Is based on unreasonable factual or legal | 25 |
| assumptions (including assumptions as to future | 26 |
| events); | 27 |
| (II) Unreasonably relies on representations, | 28 |
| statements, findings, or agreements of the | 29 |
| taxpayer or any other person; | 30 |
| (III) Does not identify and consider all | 31 |
| relevant facts; or | 32 |
| (IV) Fails to meet any other requirement as | 33 |
| either the Secretary of the Treasury for federal | 34 |
| income tax purposes or the Department may |
|
|
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| prescribe. | 2 |
| (C) Material Advisor. The term "material advisor" | 3 |
| shall have substantially the same meaning as the same | 4 |
| term is defined under Treasury Regulations Section | 5 |
| 301.6112-1, (26 CFR 301.6112-1) and shall include any | 6 |
| person that is a material advisor for federal income | 7 |
| tax purposes under such regulation. | 8 |
| (6) Effective date. This subsection shall apply to | 9 |
| taxable years ending on and after December 31, 2004, except | 10 |
| that a reportable transaction understatement shall include | 11 |
| an understatement (as determined under paragraph (1)) with | 12 |
| respect to any taxable year for which the limitations | 13 |
| period on assessment has not expired as of January 1, 2005 | 14 |
| that is attributable to a transaction which the taxpayer | 15 |
| has entered into after February 28, 2000 and before | 16 |
| December 31, 2004 that becomes a listed transaction (as | 17 |
| defined in Treasury Regulations Section 1.6011-4(b)(2) at | 18 |
| any time. | 19 |
| (c) 100% interest penalty. If a taxpayer has been contacted | 20 |
| by the Internal Revenue Service or the Department regarding the | 21 |
| use of a potential tax avoidance transaction with respect to a | 22 |
| taxable year and has a deficiency with respect to such taxable | 23 |
| year or years, there shall be added to the tax attributable to | 24 |
| the potential tax avoidance transaction (determined as | 25 |
| described in subsection (b)(1) of Section 1005) an amount equal | 26 |
| to 100% of the interest assessed under the Uniform Penalty and | 27 |
| Interest Act (determined without regard to subsection (f) of | 28 |
| Section 3-2 of such Act) for the period beginning on the last | 29 |
| date prescribed by law for the payment of such tax and ending | 30 |
| on the date of the notice of deficiency. Such penalty shall be | 31 |
| deemed assessed upon the assessment of the interest to which | 32 |
| such penalty relates and shall be collected and paid in the | 33 |
| same manner as such interest. The penalty imposed by this | 34 |
| subsection is in addition to any penalty imposed by this Act or |
|
|
|
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| the Uniform Penalty and Interest Act. For purposes of this | 2 |
| subsection and subsection (d) of this Section, the term | 3 |
| "potential tax avoidance transaction" means any tax shelter as | 4 |
| defined in Section 6111 of the Internal Revenue Code. This | 5 |
| subsection shall apply to taxable years ending on and after | 6 |
| December 31, 2004, except that the penalty may also be imposed | 7 |
| with respect to any taxable year for which the limitations | 8 |
| period on assessment has not expired as of January 1, 2005 that | 9 |
| is attributable to a transaction in which the taxpayer has | 10 |
| entered into after February 28, 2000 and before December 31, | 11 |
| 2004, which transaction becomes a listed transaction (as | 12 |
| defined in Treasury Regulations Section 1.6011-4(b)(2)) at any | 13 |
| time. | 14 |
| (d) 150% interest rate. For taxable years ending on and | 15 |
| after July 1, 2002, for any notice of deficiency issued before | 16 |
| the taxpayer is contacted by the Internal Revenue Service or | 17 |
| the Department regarding a potential tax avoidance | 18 |
| transaction, the taxpayer is subject to interest as provided | 19 |
| under Section 3-2 of the Uniform Penalty and Interest Act, but | 20 |
| with respect to any deficiency attributable to a potential tax | 21 |
| avoidance transaction, the taxpayer is subject to interest at a | 22 |
| rate of 150% of the otherwise applicable rate. | 23 |
| (e) Coordination with other penalties. Except as provided | 24 |
| in regulations, the penalties imposed by this Section are in | 25 |
| addition to any other penalty imposed by this Act or the | 26 |
| Uniform Penalty and Interest Act. The doubling of penalties and | 27 |
| interest authorized by the Illinois Tax Delinquency Amnesty Act | 28 |
| (P.A. 93-26), are not applicable to the reportable transaction | 29 |
| penalties and interest under subsections (b), (c), and (d). | 30 |
|
The provisions of this Section shall apply to all taxable | 31 |
| years ending
on or after January 1, 1986.
| 32 |
| (Source: P.A. 87-205 .)
| 33 |
| (35 ILCS 5/1007 new) |
|
|
|
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| Sec. 1007. Failure to register tax shelter or maintain | 2 |
| list.
| 3 |
| (a) Penalty Imposed. Any person that fails to comply with | 4 |
| the requirements of Section 1405.5 or Section 1405.6 shall | 5 |
| incur a penalty as provided in this Section. A person shall not | 6 |
| be in compliance with the requirements of Section 1405.5 unless | 7 |
| and until the required registration has been filed and contains | 8 |
| all of the information required to be included with such | 9 |
| registration under Section 6111 of the Internal Revenue Code or | 10 |
| such Section 1405.5. A person shall not be in compliance with | 11 |
| the requirements of Section 1405.6 unless, at the time the | 12 |
| required list is made available to the Department, such list | 13 |
| contains all of the information required to be maintained under | 14 |
| Section 6112 of the Internal Revenue Code or such Section | 15 |
| 1405.6. | 16 |
| (b) Amount of Penalty. The following penalties apply: | 17 |
| (1) In the case of each failure to comply with the | 18 |
| requirements of subsection (a), subsection (b), or | 19 |
| subsection (e) of Section 1405.5, the penalty shall be | 20 |
| $15,000. | 21 |
| (2) If the failure is with respect to a listed | 22 |
| transaction under subsection (c) of Section 1405.5, the | 23 |
| penalty shall be $100,000. | 24 |
| (3) In the case of each failure to comply with the | 25 |
| requirements of subsection (a) or subsection (b) of Section | 26 |
| 1405.6, the penalty shall be $15,000. | 27 |
| (4) If the failure is with respect to a listed | 28 |
| transaction under subsection (c) of Section 1405.6, the | 29 |
| penalty shall be $100,000. | 30 |
| (c) Authority to rescind penalty. The Director of the Board | 31 |
| of Appeals may rescind all or any portion of any penalty | 32 |
| imposed by this Section with respect to any violation, if any | 33 |
| of the following apply: | 34 |
| (1) It is determined that failure to comply did not |
|
|
|
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| 1 |
| jeopardize the best interests of the State and is not due | 2 |
| to any willful neglect or any intent not to comply; | 3 |
| (2) The person on whom the penalty is imposed has a | 4 |
| history of complying with the requirements of this Act; | 5 |
| (3) It is shown that the violation is due to an | 6 |
| unintentional mistake of fact; | 7 |
| (4) Imposing the penalty would be against equity and | 8 |
| good conscience; | 9 |
| (5) Rescinding the penalty would promote compliance | 10 |
| with the requirements of this Act and effective tax | 11 |
| administration; or | 12 |
| (6) The taxpayer can show that there was reasonable | 13 |
| cause for the failure to disclose and that the taxpayer | 14 |
| acted in good faith.
| 15 |
| (d) Coordination with other penalties. The penalty imposed | 16 |
| by this Section is in addition to any penalty imposed by this | 17 |
| Act or the Uniform Penalty and Interest Act. | 18 |
| (35 ILCS 5/1008 new) | 19 |
| Sec. 1008. Promoting tax shelters.
Except as herein | 20 |
| provided, the provisions of Section 6700 of the Internal | 21 |
| Revenue Code shall apply for purposes of this Act as if such | 22 |
| Section applied to an Illinois deduction, credit, exclusion | 23 |
| from income, allocation or apportionment rule, or other | 24 |
| Illinois tax benefit. Notwithstanding Section 6700(a) of the | 25 |
| Internal Revenue Code, if an activity with respect to which a | 26 |
| penalty imposed under Section 6700(a) of the Internal Revenue | 27 |
| Code, as applied for purposes of this Act, involves a statement | 28 |
| described in Section 6700(a)(2)(A) of the Internal Revenue | 29 |
| Code, as applied for purposes of this Act, the amount of the | 30 |
| penalty imposed under this Section shall be the greater of | 31 |
| $10,000 or 50% of the gross income received (or to be received) | 32 |
| from any person to whom such statement is furnished that is | 33 |
| required to file a return under Section 502 of this Act. |
|
|
|
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| (35 ILCS 5/1405.5 new)
| 2 |
| Sec. 1405.5. Registration of tax shelters. | 3 |
| (a) Federal tax shelter. Any tax shelter organizer required | 4 |
| to register a tax shelter under Section 6111 of the Internal | 5 |
| Revenue Code shall send a duplicate of the federal registration | 6 |
| information to the Department not later than the day on which | 7 |
| registration is required under federal law. Any person required | 8 |
| to register under Section 6111 of the Internal Revenue Code who | 9 |
| receives a tax registration number from the Secretary of the | 10 |
| Treasury shall, within 30 days after request by the Department, | 11 |
| file a statement of that registration number. | 12 |
| (b) Additional requirements for listed transactions. In | 13 |
| addition to the requirements of subsection (a), for any | 14 |
| transactions entered into on or after February 28, 2000 that | 15 |
| become listed transactions (as defined under Treasury | 16 |
| Regulations Section 1.6011-4) at any time, those transactions | 17 |
| shall be registered with the Department (in the form and manner | 18 |
| prescribed by the Department) by the later of (i) 60 days after | 19 |
| entering into the transaction, (ii) 60 days after the | 20 |
| transaction becomes a listed transaction, or (iii) December 31, | 21 |
| 2004. | 22 |
| (c) Tax shelters subject to this Section. The provisions of | 23 |
| this Section apply to any tax shelter herein described that | 24 |
| additionally satisfies any of the following conditions: (1) is | 25 |
| organized in this State; (2) is doing business in this State; | 26 |
| or (3) is deriving income from sources in this State. | 27 |
| (d) Tax shelter identification number.
Any person required | 28 |
| to file a return under this Act and required to include on the | 29 |
| person's federal tax return a tax shelter identification number | 30 |
| pursuant to Section 6111 of the Internal Revenue Code shall | 31 |
| furnish such number upon filing of the person's Illinois | 32 |
| return. |
|
|
|
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| (35 ILCS 5/1405.6 new)
| 2 |
| Sec. 1405.6. Investor lists. | 3 |
| (a) Federal abusive tax shelter. Any person required to | 4 |
| maintain a list under Section 6112 of the Internal Revenue Code | 5 |
| and Treasury Regulations Section 301.6112-1 with respect to a | 6 |
| potentially abusive tax shelter shall furnish such list to the | 7 |
| Department not later than the time such list is required to be | 8 |
| furnished to the Internal Revenue Service under federal income | 9 |
| tax law. | 10 |
| The list required under this Section shall include the same | 11 |
| information required with respect to a potentially abusive tax | 12 |
| shelter under Treasury Regulations Section 301.6112-1 and any | 13 |
| other information as the Department may require. | 14 |
| (b) Additional requirements for listed transactions. For | 15 |
| transactions entered into on or after February 28, 2000 that | 16 |
| become listed transactions (as defined under Treasury | 17 |
| Regulations Section 1.6011-4) at any time, the list shall be | 18 |
| furnished to the Department by the later of (i) 60 days after | 19 |
| entering into the transaction, (ii) 60 days after the | 20 |
| transaction becomes a listed transaction, or (iii) December 31, | 21 |
| 2004. | 22 |
| (d) Tax Shelters subject to this Section. The provisions of | 23 |
| this Section apply to any tax shelter herein described that | 24 |
| additionally satisfies any of the following conditions: | 25 |
| (1) Organized in this State; | 26 |
| (2) Doing Business in this State; or | 27 |
| (3) Deriving income from sources in this State. |
|
28 |
| ARTICLE 40 |
29 |
| Section 40-5. The Illinois Income Tax Act is amended by | 30 |
| changing Section 201 as follows:
| 31 |
| (35 ILCS 5/201) (from Ch. 120, par. 2-201)
|
|
|
|
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| 1 |
| Sec. 201. Tax Imposed.
| 2 |
| (a) In general. A tax measured by net income is hereby | 3 |
| imposed on every
individual, corporation, trust and estate for | 4 |
| each taxable year ending
after July 31, 1969 on the privilege | 5 |
| of earning or receiving income in or
as a resident of this | 6 |
| State. Such tax shall be in addition to all other
occupation or | 7 |
| privilege taxes imposed by this State or by any municipal
| 8 |
| corporation or political subdivision thereof.
| 9 |
| (b) Rates. The tax imposed by subsection (a) of this | 10 |
| Section shall be
determined as follows, except as adjusted by | 11 |
| subsection (d-1):
| 12 |
| (1) In the case of an individual, trust or estate, for | 13 |
| taxable years
ending prior to July 1, 1989, an amount equal | 14 |
| to 2 1/2% of the taxpayer's
net income for the taxable | 15 |
| year.
| 16 |
| (2) In the case of an individual, trust or estate, for | 17 |
| taxable years
beginning prior to July 1, 1989 and ending | 18 |
| after June 30, 1989, an amount
equal to the sum of (i) 2 | 19 |
| 1/2% of the taxpayer's net income for the period
prior to | 20 |
| July 1, 1989, as calculated under Section 202.3, and (ii) | 21 |
| 3% of the
taxpayer's net income for the period after June | 22 |
| 30, 1989, as calculated
under Section 202.3.
| 23 |
| (3) In the case of an individual, trust or estate, for | 24 |
| taxable years
beginning after June 30, 1989, an amount | 25 |
| equal to 3% of the taxpayer's net
income for the taxable | 26 |
| year.
| 27 |
| (4) (Blank).
| 28 |
| (5) (Blank).
| 29 |
| (6) In the case of a corporation, for taxable years
| 30 |
| ending prior to July 1, 1989, an amount equal to 4% of the
| 31 |
| taxpayer's net income for the taxable year.
| 32 |
| (7) In the case of a corporation, for taxable years | 33 |
| beginning prior to
July 1, 1989 and ending after June 30, | 34 |
| 1989, an amount equal to the sum of
(i) 4% of the |
|
|
|
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| taxpayer's net income for the period prior to July 1, 1989,
| 2 |
| as calculated under Section 202.3, and (ii) 4.8% of the | 3 |
| taxpayer's net
income for the period after June 30, 1989, | 4 |
| as calculated under Section
202.3.
| 5 |
| (8) In the case of a corporation, for taxable years | 6 |
| beginning after
June 30, 1989, an amount equal to 4.8% of | 7 |
| the taxpayer's net income for the
taxable year.
| 8 |
| (c) Personal Property Tax Replacement Income Tax.
| 9 |
| Beginning on July 1, 1979 and thereafter, in addition to such | 10 |
| income
tax, there is also hereby imposed the Personal Property | 11 |
| Tax Replacement
Income Tax measured by net income on every | 12 |
| corporation (including Subchapter
S corporations), partnership | 13 |
| and trust, for each taxable year ending after
June 30, 1979. | 14 |
| Such taxes are imposed on the privilege of earning or
receiving | 15 |
| income in or as a resident of this State. The Personal Property
| 16 |
| Tax Replacement Income Tax shall be in addition to the income | 17 |
| tax imposed
by subsections (a) and (b) of this Section and in | 18 |
| addition to all other
occupation or privilege taxes imposed by | 19 |
| this State or by any municipal
corporation or political | 20 |
| subdivision thereof.
| 21 |
| (d) Additional Personal Property Tax Replacement Income | 22 |
| Tax Rates.
The personal property tax replacement income tax | 23 |
| imposed by this subsection
and subsection (c) of this Section | 24 |
| in the case of a corporation, other
than a Subchapter S | 25 |
| corporation and except as adjusted by subsection (d-1),
shall | 26 |
| be an additional amount equal to
2.85% of such taxpayer's net | 27 |
| income for the taxable year, except that
beginning on January | 28 |
| 1, 1981, and thereafter, the rate of 2.85% specified
in this | 29 |
| subsection shall be reduced to 2.5%, and in the case of a
| 30 |
| partnership, trust or a Subchapter S corporation shall be an | 31 |
| additional
amount equal to 1.5% of such taxpayer's net income | 32 |
| for the taxable year.
| 33 |
| (d-1) Rate reduction for certain foreign insurers. In the | 34 |
| case of a
foreign insurer, as defined by Section 35A-5 of the |
|
|
|
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| 1 |
| Illinois Insurance Code,
whose state or country of domicile | 2 |
| imposes on insurers domiciled in Illinois
a retaliatory tax | 3 |
| (excluding any insurer
whose premiums from reinsurance assumed | 4 |
| are 50% or more of its total insurance
premiums as determined | 5 |
| under paragraph (2) of subsection (b) of Section 304,
except | 6 |
| that for purposes of this determination premiums from | 7 |
| reinsurance do
not include premiums from inter-affiliate | 8 |
| reinsurance arrangements),
beginning with taxable years ending | 9 |
| on or after December 31, 1999,
the sum of
the rates of tax | 10 |
| imposed by subsections (b) and (d) shall be reduced (but not
| 11 |
| increased) to the rate at which the total amount of tax imposed | 12 |
| under this Act,
net of all credits allowed under this Act, | 13 |
| shall equal (i) the total amount of
tax that would be imposed | 14 |
| on the foreign insurer's net income allocable to
Illinois for | 15 |
| the taxable year by such foreign insurer's state or country of
| 16 |
| domicile if that net income were subject to all income taxes | 17 |
| and taxes
measured by net income imposed by such foreign | 18 |
| insurer's state or country of
domicile, net of all credits | 19 |
| allowed or (ii) a rate of zero if no such tax is
imposed on such | 20 |
| income by the foreign insurer's state of domicile.
For the | 21 |
| purposes of this subsection (d-1), an inter-affiliate includes | 22 |
| a
mutual insurer under common management.
| 23 |
| (1) For the purposes of subsection (d-1), in no event | 24 |
| shall the sum of the
rates of tax imposed by subsections | 25 |
| (b) and (d) be reduced below the rate at
which the sum of:
| 26 |
| (A) the total amount of tax imposed on such foreign | 27 |
| insurer under
this Act for a taxable year, net of all | 28 |
| credits allowed under this Act, plus
| 29 |
| (B) the privilege tax imposed by Section 409 of the | 30 |
| Illinois Insurance
Code, the fire insurance company | 31 |
| tax imposed by Section 12 of the Fire
Investigation | 32 |
| Act, and the fire department taxes imposed under | 33 |
| Section 11-10-1
of the Illinois Municipal Code,
| 34 |
| equals 1.25% for taxable years ending prior to December 31, |
|
|
|
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| 2003, or
1.75% for taxable years ending on or after | 2 |
| December 31, 2003, of the net
taxable premiums written for | 3 |
| the taxable year,
as described by subsection (1) of Section | 4 |
| 409 of the Illinois Insurance Code.
This paragraph will in | 5 |
| no event increase the rates imposed under subsections
(b) | 6 |
| and (d).
| 7 |
| (2) Any reduction in the rates of tax imposed by this | 8 |
| subsection shall be
applied first against the rates imposed | 9 |
| by subsection (b) and only after the
tax imposed by | 10 |
| subsection (a) net of all credits allowed under this | 11 |
| Section
other than the credit allowed under subsection (i) | 12 |
| has been reduced to zero,
against the rates imposed by | 13 |
| subsection (d).
| 14 |
| This subsection (d-1) is exempt from the provisions of | 15 |
| Section 250.
| 16 |
| (e) Investment credit. A taxpayer shall be allowed a credit
| 17 |
| against the Personal Property Tax Replacement Income Tax for
| 18 |
| investment in qualified property.
| 19 |
| (1) A taxpayer shall be allowed a credit equal to .5% | 20 |
| of
the basis of qualified property placed in service during | 21 |
| the taxable year,
provided such property is placed in | 22 |
| service on or after
July 1, 1984. There shall be allowed an | 23 |
| additional credit equal
to .5% of the basis of qualified | 24 |
| property placed in service during the
taxable year, | 25 |
| provided such property is placed in service on or
after | 26 |
| July 1, 1986, and the taxpayer's base employment
within | 27 |
| Illinois has increased by 1% or more over the preceding | 28 |
| year as
determined by the taxpayer's employment records | 29 |
| filed with the
Illinois Department of Employment Security. | 30 |
| Taxpayers who are new to
Illinois shall be deemed to have | 31 |
| met the 1% growth in base employment for
the first year in | 32 |
| which they file employment records with the Illinois
| 33 |
| Department of Employment Security. The provisions added to | 34 |
| this Section by
Public Act 85-1200 (and restored by Public |
|
|
|
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| 1 |
| Act 87-895) shall be
construed as declaratory of existing | 2 |
| law and not as a new enactment. If,
in any year, the | 3 |
| increase in base employment within Illinois over the
| 4 |
| preceding year is less than 1%, the additional credit shall | 5 |
| be limited to that
percentage times a fraction, the | 6 |
| numerator of which is .5% and the denominator
of which is | 7 |
| 1%, but shall not exceed .5%. The investment credit shall | 8 |
| not be
allowed to the extent that it would reduce a | 9 |
| taxpayer's liability in any tax
year below zero, nor may | 10 |
| any credit for qualified property be allowed for any
year | 11 |
| other than the year in which the property was placed in | 12 |
| service in
Illinois. For tax years ending on or after | 13 |
| December 31, 1987, and on or
before December 31, 1988, the | 14 |
| credit shall be allowed for the tax year in
which the | 15 |
| property is placed in service, or, if the amount of the | 16 |
| credit
exceeds the tax liability for that year, whether it | 17 |
| exceeds the original
liability or the liability as later | 18 |
| amended, such excess may be carried
forward and applied to | 19 |
| the tax liability of the 5 taxable years following
the | 20 |
| excess credit years if the taxpayer (i) makes investments | 21 |
| which cause
the creation of a minimum of 2,000 full-time | 22 |
| equivalent jobs in Illinois,
(ii) is located in an | 23 |
| enterprise zone established pursuant to the Illinois
| 24 |
| Enterprise Zone Act and (iii) is certified by the | 25 |
| Department of Commerce
and Community Affairs (now | 26 |
| Department of Commerce and Economic Opportunity) as | 27 |
| complying with the requirements specified in
clause (i) and | 28 |
| (ii) by July 1, 1986. The Department of Commerce and
| 29 |
| Community Affairs (now Department of Commerce and Economic | 30 |
| Opportunity) shall notify the Department of Revenue of all | 31 |
| such
certifications immediately. For tax years ending | 32 |
| after December 31, 1988,
the credit shall be allowed for | 33 |
| the tax year in which the property is
placed in service, | 34 |
| or, if the amount of the credit exceeds the tax
liability |
|
|
|
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| 1 |
| for that year, whether it exceeds the original liability or | 2 |
| the
liability as later amended, such excess may be carried | 3 |
| forward and applied
to the tax liability of the 5 taxable | 4 |
| years following the excess credit
years. The credit shall | 5 |
| be applied to the earliest year for which there is
a | 6 |
| liability. If there is credit from more than one tax year | 7 |
| that is
available to offset a liability, earlier credit | 8 |
| shall be applied first.
| 9 |
| (2) The term "qualified property" means property | 10 |
| which:
| 11 |
| (A) is tangible, whether new or used, including | 12 |
| buildings and structural
components of buildings and | 13 |
| signs that are real property, but not including
land or | 14 |
| improvements to real property that are not a structural | 15 |
| component of a
building such as landscaping, sewer | 16 |
| lines, local access roads, fencing, parking
lots, and | 17 |
| other appurtenances;
| 18 |
| (B) is depreciable pursuant to Section 167 of the | 19 |
| Internal Revenue Code,
except that "3-year property" | 20 |
| as defined in Section 168(c)(2)(A) of that
Code is not | 21 |
| eligible for the credit provided by this subsection | 22 |
| (e);
| 23 |
| (C) is acquired by purchase as defined in Section | 24 |
| 179(d) of
the Internal Revenue Code;
| 25 |
| (D) is used in Illinois by a taxpayer who is | 26 |
| primarily engaged in
manufacturing, or in mining coal | 27 |
| or fluorite, or in retailing; and
| 28 |
| (E) has not previously been used in Illinois in | 29 |
| such a manner and by
such a person as would qualify for | 30 |
| the credit provided by this subsection
(e) or | 31 |
| subsection (f).
| 32 |
| (3) For purposes of this subsection (e), | 33 |
| "manufacturing" means
the material staging and production | 34 |
| of tangible personal property by
procedures commonly |
|
|
|
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| 1 |
| regarded as manufacturing, processing, fabrication, or
| 2 |
| assembling which changes some existing material into new | 3 |
| shapes, new
qualities, or new combinations. For purposes of | 4 |
| this subsection
(e) the term "mining" shall have the same | 5 |
| meaning as the term "mining" in
Section 613(c) of the | 6 |
| Internal Revenue Code. For purposes of this subsection
(e), | 7 |
| the term "retailing" means the sale of tangible personal | 8 |
| property or
services rendered in conjunction with the sale | 9 |
| of tangible consumer goods
or commodities.
| 10 |
| (4) The basis of qualified property shall be the basis
| 11 |
| used to compute the depreciation deduction for federal | 12 |
| income tax purposes.
| 13 |
| (5) If the basis of the property for federal income tax | 14 |
| depreciation
purposes is increased after it has been placed | 15 |
| in service in Illinois by
the taxpayer, the amount of such | 16 |
| increase shall be deemed property placed
in service on the | 17 |
| date of such increase in basis.
| 18 |
| (6) The term "placed in service" shall have the same
| 19 |
| meaning as under Section 46 of the Internal Revenue Code.
| 20 |
| (7) If during any taxable year, any property ceases to
| 21 |
| be qualified property in the hands of the taxpayer within | 22 |
| 48 months after
being placed in service, or the situs of | 23 |
| any qualified property is
moved outside Illinois within 48 | 24 |
| months after being placed in service, the
Personal Property | 25 |
| Tax Replacement Income Tax for such taxable year shall be
| 26 |
| increased. Such increase shall be determined by (i) | 27 |
| recomputing the
investment credit which would have been | 28 |
| allowed for the year in which
credit for such property was | 29 |
| originally allowed by eliminating such
property from such | 30 |
| computation and, (ii) subtracting such recomputed credit
| 31 |
| from the amount of credit previously allowed. For the | 32 |
| purposes of this
paragraph (7), a reduction of the basis of | 33 |
| qualified property resulting
from a redetermination of the | 34 |
| purchase price shall be deemed a disposition
of qualified |
|
|
|
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| 1 |
| property to the extent of such reduction.
| 2 |
| (8) Unless the investment credit is extended by law, | 3 |
| the
basis of qualified property shall not include costs | 4 |
| incurred after
December 31, 2003, except for costs incurred | 5 |
| pursuant to a binding
contract entered into on or before | 6 |
| December 31, 2003.
| 7 |
| (9) Each taxable year ending before December 31, 2000, | 8 |
| a partnership may
elect to pass through to its
partners the | 9 |
| credits to which the partnership is entitled under this | 10 |
| subsection
(e) for the taxable year. A partner may use the | 11 |
| credit allocated to him or her
under this paragraph only | 12 |
| against the tax imposed in subsections (c) and (d) of
this | 13 |
| Section. If the partnership makes that election, those | 14 |
| credits shall be
allocated among the partners in the | 15 |
| partnership in accordance with the rules
set forth in | 16 |
| Section 704(b) of the Internal Revenue Code, and the rules
| 17 |
| promulgated under that Section, and the allocated amount of | 18 |
| the credits shall
be allowed to the partners for that | 19 |
| taxable year. The partnership shall make
this election on | 20 |
| its Personal Property Tax Replacement Income Tax return for
| 21 |
| that taxable year. The election to pass through the credits | 22 |
| shall be
irrevocable.
| 23 |
| For taxable years ending on or after December 31, 2000, | 24 |
| a
partner that qualifies its
partnership for a subtraction | 25 |
| under subparagraph (I) of paragraph (2) of
subsection (d) | 26 |
| of Section 203 or a shareholder that qualifies a Subchapter | 27 |
| S
corporation for a subtraction under subparagraph (S) of | 28 |
| paragraph (2) of
subsection (b) of Section 203 shall be | 29 |
| allowed a credit under this subsection
(e) equal to its | 30 |
| share of the credit earned under this subsection (e) during
| 31 |
| the taxable year by the partnership or Subchapter S | 32 |
| corporation, determined in
accordance with the | 33 |
| determination of income and distributive share of
income | 34 |
| under Sections 702 and 704 and Subchapter S of the Internal |
|
|
|
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| 1 |
| Revenue
Code. This paragraph is exempt from the provisions | 2 |
| of Section 250.
| 3 |
| (f) Investment credit; Enterprise Zone.
| 4 |
| (1) A taxpayer shall be allowed a credit against the | 5 |
| tax imposed
by subsections (a) and (b) of this Section for | 6 |
| investment in qualified
property which is placed in service | 7 |
| in an Enterprise Zone created
pursuant to the Illinois | 8 |
| Enterprise Zone Act. For partners, shareholders
of | 9 |
| Subchapter S corporations, and owners of limited liability | 10 |
| companies,
if the liability company is treated as a | 11 |
| partnership for purposes of
federal and State income | 12 |
| taxation, there shall be allowed a credit under
this | 13 |
| subsection (f) to be determined in accordance with the | 14 |
| determination
of income and distributive share of income | 15 |
| under Sections 702 and 704 and
Subchapter S of the Internal | 16 |
| Revenue Code. The credit shall be .5% of the
basis for such | 17 |
| property. The credit shall be available only in the taxable
| 18 |
| year in which the property is placed in service in the | 19 |
| Enterprise Zone and
shall not be allowed to the extent that | 20 |
| it would reduce a taxpayer's
liability for the tax imposed | 21 |
| by subsections (a) and (b) of this Section to
below zero. | 22 |
| For tax years ending on or after December 31, 1985, the | 23 |
| credit
shall be allowed for the tax year in which the | 24 |
| property is placed in
service, or, if the amount of the | 25 |
| credit exceeds the tax liability for that
year, whether it | 26 |
| exceeds the original liability or the liability as later
| 27 |
| amended, such excess may be carried forward and applied to | 28 |
| the tax
liability of the 5 taxable years following the | 29 |
| excess credit year.
The credit shall be applied to the | 30 |
| earliest year for which there is a
liability. If there is | 31 |
| credit from more than one tax year that is available
to | 32 |
| offset a liability, the credit accruing first in time shall | 33 |
| be applied
first.
| 34 |
| (2) The term qualified property means property which:
|
|
|
|
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| 1 |
| (A) is tangible, whether new or used, including | 2 |
| buildings and
structural components of buildings;
| 3 |
| (B) is depreciable pursuant to Section 167 of the | 4 |
| Internal Revenue
Code, except that "3-year property" | 5 |
| as defined in Section 168(c)(2)(A) of
that Code is not | 6 |
| eligible for the credit provided by this subsection | 7 |
| (f);
| 8 |
| (C) is acquired by purchase as defined in Section | 9 |
| 179(d) of
the Internal Revenue Code;
| 10 |
| (D) is used in the Enterprise Zone by the taxpayer; | 11 |
| and
| 12 |
| (E) has not been previously used in Illinois in | 13 |
| such a manner and by
such a person as would qualify for | 14 |
| the credit provided by this subsection
(f) or | 15 |
| subsection (e).
| 16 |
| (3) The basis of qualified property shall be the basis | 17 |
| used to compute
the depreciation deduction for federal | 18 |
| income tax purposes.
| 19 |
| (4) If the basis of the property for federal income tax | 20 |
| depreciation
purposes is increased after it has been placed | 21 |
| in service in the Enterprise
Zone by the taxpayer, the | 22 |
| amount of such increase shall be deemed property
placed in | 23 |
| service on the date of such increase in basis.
| 24 |
| (5) The term "placed in service" shall have the same | 25 |
| meaning as under
Section 46 of the Internal Revenue Code.
| 26 |
| (6) If during any taxable year, any property ceases to | 27 |
| be qualified
property in the hands of the taxpayer within | 28 |
| 48 months after being placed
in service, or the situs of | 29 |
| any qualified property is moved outside the
Enterprise Zone | 30 |
| within 48 months after being placed in service, the tax
| 31 |
| imposed under subsections (a) and (b) of this Section for | 32 |
| such taxable year
shall be increased. Such increase shall | 33 |
| be determined by (i) recomputing
the investment credit | 34 |
| which would have been allowed for the year in which
credit |
|
|
|
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| 1 |
| for such property was originally allowed by eliminating | 2 |
| such
property from such computation, and (ii) subtracting | 3 |
| such recomputed credit
from the amount of credit previously | 4 |
| allowed. For the purposes of this
paragraph (6), a | 5 |
| reduction of the basis of qualified property resulting
from | 6 |
| a redetermination of the purchase price shall be deemed a | 7 |
| disposition
of qualified property to the extent of such | 8 |
| reduction.
| 9 |
| (g) Jobs Tax Credit; Enterprise Zone and Foreign Trade | 10 |
| Zone or Sub-Zone.
| 11 |
| (1) A taxpayer conducting a trade or business in an | 12 |
| enterprise zone
or a High Impact Business designated by the | 13 |
| Department of Commerce and
Economic Opportunity
Community | 14 |
| Affairs conducting a trade or business in a federally | 15 |
| designated
Foreign Trade Zone or Sub-Zone shall be allowed | 16 |
| a credit against the tax
imposed by subsections (a) and (b) | 17 |
| of this Section in the amount of $500
per eligible employee | 18 |
| hired to work in the zone during the taxable year.
| 19 |
| (2) To qualify for the credit:
| 20 |
| (A) the taxpayer must hire 5 or more eligible | 21 |
| employees to work in an
enterprise zone or federally | 22 |
| designated Foreign Trade Zone or Sub-Zone
during the | 23 |
| taxable year;
| 24 |
| (B) the taxpayer's total employment within the | 25 |
| enterprise zone or
federally designated Foreign Trade | 26 |
| Zone or Sub-Zone must
increase by 5 or more full-time | 27 |
| employees beyond the total employed in that
zone at the | 28 |
| end of the previous tax year for which a jobs tax
| 29 |
| credit under this Section was taken, or beyond the | 30 |
| total employed by the
taxpayer as of December 31, 1985, | 31 |
| whichever is later; and
| 32 |
| (C) the eligible employees must be employed 180 | 33 |
| consecutive days in
order to be deemed hired for | 34 |
| purposes of this subsection.
|
|
|
|
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|
| 1 |
| (3) An "eligible employee" means an employee who is:
| 2 |
| (A) Certified by the Department of Commerce and | 3 |
| Economic Opportunity
Community Affairs
as "eligible | 4 |
| for services" pursuant to regulations promulgated in
| 5 |
| accordance with Title II of the Job Training | 6 |
| Partnership Act, Training
Services for the | 7 |
| Disadvantaged or Title III of the Job Training | 8 |
| Partnership
Act, Employment and Training Assistance | 9 |
| for Dislocated Workers Program.
| 10 |
| (B) Hired after the enterprise zone or federally | 11 |
| designated Foreign
Trade Zone or Sub-Zone was | 12 |
| designated or the trade or
business was located in that | 13 |
| zone, whichever is later.
| 14 |
| (C) Employed in the enterprise zone or Foreign | 15 |
| Trade Zone or
Sub-Zone. An employee is employed in an
| 16 |
| enterprise zone or federally designated Foreign Trade | 17 |
| Zone or Sub-Zone
if his services are rendered there or | 18 |
| it is the base of
operations for the services | 19 |
| performed.
| 20 |
| (D) A full-time employee working 30 or more hours | 21 |
| per week.
| 22 |
| (4) For tax years ending on or after December 31, 1985 | 23 |
| and prior to
December 31, 1988, the credit shall be allowed | 24 |
| for the tax year in which
the eligible employees are hired. | 25 |
| For tax years ending on or after
December 31, 1988, the | 26 |
| credit shall be allowed for the tax year immediately
| 27 |
| following the tax year in which the eligible employees are | 28 |
| hired. If the
amount of the credit exceeds the tax | 29 |
| liability for that year, whether it
exceeds the original | 30 |
| liability or the liability as later amended, such
excess | 31 |
| may be carried forward and applied to the tax liability of | 32 |
| the 5
taxable years following the excess credit year. The | 33 |
| credit shall be
applied to the earliest year for which | 34 |
| there is a liability. If there is
credit from more than one |
|
|
|
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|
| 1 |
| tax year that is available to offset a liability,
earlier | 2 |
| credit shall be applied first.
| 3 |
| (5) The Department of Revenue shall promulgate such | 4 |
| rules and regulations
as may be deemed necessary to carry | 5 |
| out the purposes of this subsection (g).
| 6 |
| (6) The credit shall be available for eligible | 7 |
| employees hired on or
after January 1, 1986.
| 8 |
| (h) Investment credit; High Impact Business.
| 9 |
| (1) Subject to subsections (b) and (b-5) of Section
5.5 | 10 |
| of the Illinois Enterprise Zone Act, a taxpayer shall be | 11 |
| allowed a credit
against the tax imposed by subsections (a) | 12 |
| and (b) of this Section for
investment in qualified
| 13 |
| property which is placed in service by a Department of | 14 |
| Commerce and Economic Opportunity
Community
Affairs
| 15 |
| designated High Impact Business. The credit shall be .5% of | 16 |
| the basis
for such property. The credit shall not be | 17 |
| available (i) until the minimum
investments in qualified | 18 |
| property set forth in subdivision (a)(3)(A) of
Section 5.5 | 19 |
| of the Illinois
Enterprise Zone Act have been satisfied
or | 20 |
| (ii) until the time authorized in subsection (b-5) of the | 21 |
| Illinois
Enterprise Zone Act for entities designated as | 22 |
| High Impact Businesses under
subdivisions (a)(3)(B), | 23 |
| (a)(3)(C), and (a)(3)(D) of Section 5.5 of the Illinois
| 24 |
| Enterprise Zone Act, and shall not be allowed to the extent | 25 |
| that it would
reduce a taxpayer's liability for the tax | 26 |
| imposed by subsections (a) and (b) of
this Section to below | 27 |
| zero. The credit applicable to such investments shall be
| 28 |
| taken in the taxable year in which such investments have | 29 |
| been completed. The
credit for additional investments | 30 |
| beyond the minimum investment by a designated
high impact | 31 |
| business authorized under subdivision (a)(3)(A) of Section | 32 |
| 5.5 of
the Illinois Enterprise Zone Act shall be available | 33 |
| only in the taxable year in
which the property is placed in | 34 |
| service and shall not be allowed to the extent
that it |
|
|
|
09300SB2207ham002 |
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|
| 1 |
| would reduce a taxpayer's liability for the tax imposed by | 2 |
| subsections
(a) and (b) of this Section to below zero.
For | 3 |
| tax years ending on or after December 31, 1987, the credit | 4 |
| shall be
allowed for the tax year in which the property is | 5 |
| placed in service, or, if
the amount of the credit exceeds | 6 |
| the tax liability for that year, whether
it exceeds the | 7 |
| original liability or the liability as later amended, such
| 8 |
| excess may be carried forward and applied to the tax | 9 |
| liability of the 5
taxable years following the excess | 10 |
| credit year. The credit shall be
applied to the earliest | 11 |
| year for which there is a liability. If there is
credit | 12 |
| from more than one tax year that is available to offset a | 13 |
| liability,
the credit accruing first in time shall be | 14 |
| applied first.
| 15 |
| Changes made in this subdivision (h)(1) by Public Act | 16 |
| 88-670
restore changes made by Public Act 85-1182 and | 17 |
| reflect existing law.
| 18 |
| (2) The term qualified property means property which:
| 19 |
| (A) is tangible, whether new or used, including | 20 |
| buildings and
structural components of buildings;
| 21 |
| (B) is depreciable pursuant to Section 167 of the | 22 |
| Internal Revenue
Code, except that "3-year property" | 23 |
| as defined in Section 168(c)(2)(A) of
that Code is not | 24 |
| eligible for the credit provided by this subsection | 25 |
| (h);
| 26 |
| (C) is acquired by purchase as defined in Section | 27 |
| 179(d) of the
Internal Revenue Code; and
| 28 |
| (D) is not eligible for the Enterprise Zone | 29 |
| Investment Credit provided
by subsection (f) of this | 30 |
| Section.
| 31 |
| (3) The basis of qualified property shall be the basis | 32 |
| used to compute
the depreciation deduction for federal | 33 |
| income tax purposes.
| 34 |
| (4) If the basis of the property for federal income tax |
|
|
|
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| 1 |
| depreciation
purposes is increased after it has been placed | 2 |
| in service in a federally
designated Foreign Trade Zone or | 3 |
| Sub-Zone located in Illinois by the taxpayer,
the amount of | 4 |
| such increase shall be deemed property placed in service on
| 5 |
| the date of such increase in basis.
| 6 |
| (5) The term "placed in service" shall have the same | 7 |
| meaning as under
Section 46 of the Internal Revenue Code.
| 8 |
| (6) If during any taxable year ending on or before | 9 |
| December 31, 1996,
any property ceases to be qualified
| 10 |
| property in the hands of the taxpayer within 48 months | 11 |
| after being placed
in service, or the situs of any | 12 |
| qualified property is moved outside
Illinois within 48 | 13 |
| months after being placed in service, the tax imposed
under | 14 |
| subsections (a) and (b) of this Section for such taxable | 15 |
| year shall
be increased. Such increase shall be determined | 16 |
| by (i) recomputing the
investment credit which would have | 17 |
| been allowed for the year in which
credit for such property | 18 |
| was originally allowed by eliminating such
property from | 19 |
| such computation, and (ii) subtracting such recomputed | 20 |
| credit
from the amount of credit previously allowed. For | 21 |
| the purposes of this
paragraph (6), a reduction of the | 22 |
| basis of qualified property resulting
from a | 23 |
| redetermination of the purchase price shall be deemed a | 24 |
| disposition
of qualified property to the extent of such | 25 |
| reduction.
| 26 |
| (7) Beginning with tax years ending after December 31, | 27 |
| 1996, if a
taxpayer qualifies for the credit under this | 28 |
| subsection (h) and thereby is
granted a tax abatement and | 29 |
| the taxpayer relocates its entire facility in
violation of | 30 |
| the explicit terms and length of the contract under Section
| 31 |
| 18-183 of the Property Tax Code, the tax imposed under | 32 |
| subsections
(a) and (b) of this Section shall be increased | 33 |
| for the taxable year
in which the taxpayer relocated its | 34 |
| facility by an amount equal to the
amount of credit |
|
|
|
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| 1 |
| received by the taxpayer under this subsection (h).
| 2 |
| (i) Credit for Personal Property Tax Replacement Income | 3 |
| Tax.
For tax years ending prior to December 31, 2003, a credit | 4 |
| shall be allowed
against the tax imposed by
subsections (a) and | 5 |
| (b) of this Section for the tax imposed by subsections (c)
and | 6 |
| (d) of this Section. This credit shall be computed by | 7 |
| multiplying the tax
imposed by subsections (c) and (d) of this | 8 |
| Section by a fraction, the numerator
of which is base income | 9 |
| allocable to Illinois and the denominator of which is
Illinois | 10 |
| base income, and further multiplying the product by the tax | 11 |
| rate
imposed by subsections (a) and (b) of this Section.
| 12 |
| Any credit earned on or after December 31, 1986 under
this | 13 |
| subsection which is unused in the year
the credit is computed | 14 |
| because it exceeds the tax liability imposed by
subsections (a) | 15 |
| and (b) for that year (whether it exceeds the original
| 16 |
| liability or the liability as later amended) may be carried | 17 |
| forward and
applied to the tax liability imposed by subsections | 18 |
| (a) and (b) of the 5
taxable years following the excess credit | 19 |
| year, provided that no credit may
be carried forward to any | 20 |
| year ending on or
after December 31, 2003. This credit shall be
| 21 |
| applied first to the earliest year for which there is a | 22 |
| liability. If
there is a credit under this subsection from more | 23 |
| than one tax year that is
available to offset a liability the | 24 |
| earliest credit arising under this
subsection shall be applied | 25 |
| first.
| 26 |
| If, during any taxable year ending on or after December 31, | 27 |
| 1986, the
tax imposed by subsections (c) and (d) of this | 28 |
| Section for which a taxpayer
has claimed a credit under this | 29 |
| subsection (i) is reduced, the amount of
credit for such tax | 30 |
| shall also be reduced. Such reduction shall be
determined by | 31 |
| recomputing the credit to take into account the reduced tax
| 32 |
| imposed by subsections (c) and (d). If any portion of the
| 33 |
| reduced amount of credit has been carried to a different | 34 |
| taxable year, an
amended return shall be filed for such taxable |
|
|
|
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| 1 |
| year to reduce the amount of
credit claimed.
| 2 |
| (j) Training expense credit. Beginning with tax years | 3 |
| ending on or
after December 31, 1986 and prior to December 31, | 4 |
| 2003, a taxpayer shall be
allowed a credit against the
tax | 5 |
| imposed by subsections (a) and (b) under this Section
for all | 6 |
| amounts paid or accrued, on behalf of all persons
employed by | 7 |
| the taxpayer in Illinois or Illinois residents employed
outside | 8 |
| of Illinois by a taxpayer, for educational or vocational | 9 |
| training in
semi-technical or technical fields or semi-skilled | 10 |
| or skilled fields, which
were deducted from gross income in the | 11 |
| computation of taxable income. The
credit against the tax | 12 |
| imposed by subsections (a) and (b) shall be 1.6% of
such | 13 |
| training expenses. For partners, shareholders of subchapter S
| 14 |
| corporations, and owners of limited liability companies, if the | 15 |
| liability
company is treated as a partnership for purposes of | 16 |
| federal and State income
taxation, there shall be allowed a | 17 |
| credit under this subsection (j) to be
determined in accordance | 18 |
| with the determination of income and distributive
share of | 19 |
| income under Sections 702 and 704 and subchapter S of the | 20 |
| Internal
Revenue Code.
| 21 |
| Any credit allowed under this subsection which is unused in | 22 |
| the year
the credit is earned may be carried forward to each of | 23 |
| the 5 taxable
years following the year for which the credit is | 24 |
| first computed until it is
used. This credit shall be applied | 25 |
| first to the earliest year for which
there is a liability. If | 26 |
| there is a credit under this subsection from more
than one tax | 27 |
| year that is available to offset a liability the earliest
| 28 |
| credit arising under this subsection shall be applied first. No | 29 |
| carryforward
credit may be claimed in any tax year ending on or | 30 |
| after
December 31, 2003.
| 31 |
| (k) Research and development credit.
| 32 |
| For tax years ending after July 1, 1990 and prior to
| 33 |
| December 31, 2003, and beginning again for tax years ending on | 34 |
| or after December 31, 2004, a taxpayer shall be
allowed a |
|
|
|
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| credit against the tax imposed by subsections (a) and (b) of | 2 |
| this
Section for increasing research activities in this State. | 3 |
| The credit
allowed against the tax imposed by subsections (a) | 4 |
| and (b) shall be equal
to 6 1/2% of the qualifying expenditures | 5 |
| for increasing research activities
in this State. For partners, | 6 |
| shareholders of subchapter S corporations, and
owners of | 7 |
| limited liability companies, if the liability company is | 8 |
| treated as a
partnership for purposes of federal and State | 9 |
| income taxation, there shall be
allowed a credit under this | 10 |
| subsection to be determined in accordance with the
| 11 |
| determination of income and distributive share of income under | 12 |
| Sections 702 and
704 and subchapter S of the Internal Revenue | 13 |
| Code.
| 14 |
| For purposes of this subsection, "qualifying expenditures" | 15 |
| means the
qualifying expenditures as defined for the federal | 16 |
| credit for increasing
research activities which would be | 17 |
| allowable under Section 41 of the
Internal Revenue Code and | 18 |
| which are conducted in this State, "qualifying
expenditures for | 19 |
| increasing research activities in this State" means the
excess | 20 |
| of qualifying expenditures for the taxable year in which | 21 |
| incurred
over qualifying expenditures for the base period, | 22 |
| "qualifying expenditures
for the base period" means the average | 23 |
| of the qualifying expenditures for
each year in the base | 24 |
| period, and "base period" means the 3 taxable years
immediately | 25 |
| preceding the taxable year for which the determination is
being | 26 |
| made.
| 27 |
| Any credit in excess of the tax liability for the taxable | 28 |
| year
may be carried forward. A taxpayer may elect to have the
| 29 |
| unused credit shown on its final completed return carried over | 30 |
| as a credit
against the tax liability for the following 5 | 31 |
| taxable years or until it has
been fully used, whichever occurs | 32 |
| first ; provided that no credit earned in a tax year ending | 33 |
| prior to December 31, 2003 may be carried forward to any year | 34 |
| ending on or after December 31, 2003.
; provided that no credit |
|
|
|
09300SB2207ham002 |
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| 1 |
| may be
carried forward to any year ending on or
after December | 2 |
| 31, 2003.
| 3 |
| If an unused credit is carried forward to a given year from | 4 |
| 2 or more
earlier years, that credit arising in the earliest | 5 |
| year will be applied
first against the tax liability for the | 6 |
| given year. If a tax liability for
the given year still | 7 |
| remains, the credit from the next earliest year will
then be | 8 |
| applied, and so on, until all credits have been used or no tax
| 9 |
| liability for the given year remains. Any remaining unused | 10 |
| credit or
credits then will be carried forward to the next | 11 |
| following year in which a
tax liability is incurred, except | 12 |
| that no credit can be carried forward to
a year which is more | 13 |
| than 5 years after the year in which the expense for
which the | 14 |
| credit is given was incurred.
| 15 |
| No inference shall be drawn from this amendatory Act of the | 16 |
| 91st General
Assembly in construing this Section for taxable | 17 |
| years beginning before January
1, 1999.
| 18 |
| (l) Environmental Remediation Tax Credit.
| 19 |
| (i) For tax years ending after December 31, 1997 and on | 20 |
| or before
December 31, 2001, a taxpayer shall be allowed a | 21 |
| credit against the tax
imposed by subsections (a) and (b) | 22 |
| of this Section for certain amounts paid
for unreimbursed | 23 |
| eligible remediation costs, as specified in this | 24 |
| subsection.
For purposes of this Section, "unreimbursed | 25 |
| eligible remediation costs" means
costs approved by the | 26 |
| Illinois Environmental Protection Agency ("Agency") under
| 27 |
| Section 58.14 of the Environmental Protection Act that were | 28 |
| paid in performing
environmental remediation at a site for | 29 |
| which a No Further Remediation Letter
was issued by the | 30 |
| Agency and recorded under Section 58.10 of the | 31 |
| Environmental
Protection Act. The credit must be claimed | 32 |
| for the taxable year in which
Agency approval of the | 33 |
| eligible remediation costs is granted. The credit is
not | 34 |
| available to any taxpayer if the taxpayer or any related |
|
|
|
09300SB2207ham002 |
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| party caused or
contributed to, in any material respect, a | 2 |
| release of regulated substances on,
in, or under the site | 3 |
| that was identified and addressed by the remedial
action | 4 |
| pursuant to the Site Remediation Program of the | 5 |
| Environmental Protection
Act. After the Pollution Control | 6 |
| Board rules are adopted pursuant to the
Illinois | 7 |
| Administrative Procedure Act for the administration and | 8 |
| enforcement of
Section 58.9 of the Environmental | 9 |
| Protection Act, determinations as to credit
availability | 10 |
| for purposes of this Section shall be made consistent with | 11 |
| those
rules. For purposes of this Section, "taxpayer" | 12 |
| includes a person whose tax
attributes the taxpayer has | 13 |
| succeeded to under Section 381 of the Internal
Revenue Code | 14 |
| and "related party" includes the persons disallowed a | 15 |
| deduction
for losses by paragraphs (b), (c), and (f)(1) of | 16 |
| Section 267 of the Internal
Revenue Code by virtue of being | 17 |
| a related taxpayer, as well as any of its
partners. The | 18 |
| credit allowed against the tax imposed by subsections (a) | 19 |
| and
(b) shall be equal to 25% of the unreimbursed eligible | 20 |
| remediation costs in
excess of $100,000 per site, except | 21 |
| that the $100,000 threshold shall not apply
to any site | 22 |
| contained in an enterprise zone as determined by the | 23 |
| Department of
Commerce and Community Affairs (now | 24 |
| Department of Commerce and Economic Opportunity) . The | 25 |
| total credit allowed shall not exceed
$40,000 per year with | 26 |
| a maximum total of $150,000 per site. For partners and
| 27 |
| shareholders of subchapter S corporations, there shall be | 28 |
| allowed a credit
under this subsection to be determined in | 29 |
| accordance with the determination of
income and | 30 |
| distributive share of income under Sections 702 and 704 and
| 31 |
| subchapter S of the Internal Revenue Code.
| 32 |
| (ii) A credit allowed under this subsection that is | 33 |
| unused in the year
the credit is earned may be carried | 34 |
| forward to each of the 5 taxable years
following the year |
|
|
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| for which the credit is first earned until it is used.
The | 2 |
| term "unused credit" does not include any amounts of | 3 |
| unreimbursed eligible
remediation costs in excess of the | 4 |
| maximum credit per site authorized under
paragraph (i). | 5 |
| This credit shall be applied first to the earliest year
for | 6 |
| which there is a liability. If there is a credit under this | 7 |
| subsection
from more than one tax year that is available to | 8 |
| offset a liability, the
earliest credit arising under this | 9 |
| subsection shall be applied first. A
credit allowed under | 10 |
| this subsection may be sold to a buyer as part of a sale
of | 11 |
| all or part of the remediation site for which the credit | 12 |
| was granted. The
purchaser of a remediation site and the | 13 |
| tax credit shall succeed to the unused
credit and remaining | 14 |
| carry-forward period of the seller. To perfect the
| 15 |
| transfer, the assignor shall record the transfer in the | 16 |
| chain of title for the
site and provide written notice to | 17 |
| the Director of the Illinois Department of
Revenue of the | 18 |
| assignor's intent to sell the remediation site and the | 19 |
| amount of
the tax credit to be transferred as a portion of | 20 |
| the sale. In no event may a
credit be transferred to any | 21 |
| taxpayer if the taxpayer or a related party would
not be | 22 |
| eligible under the provisions of subsection (i).
| 23 |
| (iii) For purposes of this Section, the term "site" | 24 |
| shall have the same
meaning as under Section 58.2 of the | 25 |
| Environmental Protection Act.
| 26 |
| (m) Education expense credit. Beginning with tax years | 27 |
| ending after
December 31, 1999, a taxpayer who
is the custodian | 28 |
| of one or more qualifying pupils shall be allowed a credit
| 29 |
| against the tax imposed by subsections (a) and (b) of this | 30 |
| Section for
qualified education expenses incurred on behalf of | 31 |
| the qualifying pupils.
The credit shall be equal to 25% of | 32 |
| qualified education expenses, but in no
event may the total | 33 |
| credit under this subsection claimed by a
family that is the
| 34 |
| custodian of qualifying pupils exceed $500. In no event shall a |
|
|
|
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| credit under
this subsection reduce the taxpayer's liability | 2 |
| under this Act to less than
zero. This subsection is exempt | 3 |
| from the provisions of Section 250 of this
Act.
| 4 |
| For purposes of this subsection:
| 5 |
| "Qualifying pupils" means individuals who (i) are | 6 |
| residents of the State of
Illinois, (ii) are under the age of | 7 |
| 21 at the close of the school year for
which a credit is | 8 |
| sought, and (iii) during the school year for which a credit
is | 9 |
| sought were full-time pupils enrolled in a kindergarten through | 10 |
| twelfth
grade education program at any school, as defined in | 11 |
| this subsection.
| 12 |
| "Qualified education expense" means the amount incurred
on | 13 |
| behalf of a qualifying pupil in excess of $250 for tuition, | 14 |
| book fees, and
lab fees at the school in which the pupil is | 15 |
| enrolled during the regular school
year.
| 16 |
| "School" means any public or nonpublic elementary or | 17 |
| secondary school in
Illinois that is in compliance with Title | 18 |
| VI of the Civil Rights Act of 1964
and attendance at which | 19 |
| satisfies the requirements of Section 26-1 of the
School Code, | 20 |
| except that nothing shall be construed to require a child to
| 21 |
| attend any particular public or nonpublic school to qualify for | 22 |
| the credit
under this Section.
| 23 |
| "Custodian" means, with respect to qualifying pupils, an | 24 |
| Illinois resident
who is a parent, the parents, a legal | 25 |
| guardian, or the legal guardians of the
qualifying pupils.
| 26 |
| (Source: P.A. 92-12, eff.
7-1-01; 92-16, eff. 6-28-01; 92-651, | 27 |
| eff. 7-11-02; 92-846, eff. 8-23-02; 93-29,
eff. 6-20-03; | 28 |
| revised 12-6-03.)
|
|
29 |
| ARTICLE 45 |
30 |
| Section 45-5. The Environmental Protection Act is amended |
31 |
| by changing Sections 12.5 as follows: |
1 |
| (415 ILCS 5/12.5)
| 2 |
| Sec. 12.5. NPDES discharge fees; sludge permit fees.
| 3 |
| (a) Beginning July 1, 2003, the Agency shall assess and | 4 |
| collect annual fees
(i) in the amounts set forth in subsection | 5 |
| (e) for all discharges that require
an NPDES permit under | 6 |
| subsection (f) of Section 12, from each person holding an
NPDES | 7 |
| permit authorizing those discharges (including a person who | 8 |
| continues to
discharge under an expired permit pending | 9 |
| renewal), and (ii) in the amounts
set forth in subsection (f) | 10 |
| of this Section for all activities that require a
permit under | 11 |
| subsection (b) of Section 12, from each person holding a | 12 |
| domestic
sewage sludge generator or user permit.
| 13 |
| Each person subject to this Section must remit the | 14 |
| applicable annual fee to
the Agency in accordance with the | 15 |
| requirements set forth in this Section and
any rules adopted | 16 |
| pursuant to this Section.
| 17 |
| (b) Within 30 days after the effective date of this | 18 |
| Section, and by
May 31 of each year thereafter, the Agency | 19 |
| shall send a fee notice by mail
to each existing permittee | 20 |
| subject to a fee under this Section at his or her
address of | 21 |
| record. The notice shall state the amount of the applicable | 22 |
| annual
fee and the date by which payment is required.
| 23 |
| Except as provided in subsection (c) with respect to | 24 |
| initial fees under
new permits and certain modifications of | 25 |
| existing permits, fees payable under
this Section for the 12 | 26 |
| months beginning July 1, 2003 are due by the date
specified in | 27 |
| the fee notice, which shall be no less than 30 days after the | 28 |
| date
the fee notice is mailed by the Agency , and fees payable | 29 |
| under this Section for
subsequent years shall be due on July 1 | 30 |
| or as otherwise required in any rules
that may be adopted | 31 |
| pursuant to this Section .
| 32 |
| (c) The initial annual fee for discharges under a new | 33 |
| individual NPDES
permit or for activity under a new individual | 34 |
| sludge generator or sludge user
permit must be remitted to the |
|
|
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| Agency prior to the issuance of the permit.
The Agency shall | 2 |
| provide notice of the amount of the fee to the applicant
during | 3 |
| its review of the application. In the case of a new individual | 4 |
| NPDES
or sludge permit issued during the months of January | 5 |
| through June, the Agency
may prorate the initial annual fee | 6 |
| payable under this Section.
| 7 |
| The initial annual fee for discharges or other activity | 8 |
| under a general
NPDES permit must be remitted to the Agency as | 9 |
| part of the application
for coverage under that general permit.
| 10 |
| If a requested modification to an existing NPDES permit | 11 |
| causes a change in
the applicable fee categories under | 12 |
| subsection (e) that results in an increase
in the required fee, | 13 |
| the permittee must pay to the Agency the amount of the
| 14 |
| increase, prorated for the number of months remaining before | 15 |
| the next July 1,
before the modification is granted.
| 16 |
| (d) Failure to submit the fee required under this Section | 17 |
| by the due
date constitutes a violation of this Section. Late | 18 |
| payments shall incur an
interest penalty, calculated at the | 19 |
| rate in effect from time to time for tax
delinquencies under | 20 |
| subsection (a) of Section 1003 of the Illinois Income Tax
Act, | 21 |
| from the date the fee is due until the date the fee payment is | 22 |
| received
by the Agency.
| 23 |
| (e) The annual fees applicable to discharges under NPDES | 24 |
| permits are as
follows:
| 25 |
| (1) For NPDES permits for publicly owned treatment | 26 |
| works, other
facilities for which the wastewater being | 27 |
| treated and discharged is primarily
domestic sewage, and | 28 |
| wastewater discharges from the operation of public water
| 29 |
| supply treatment facilities, the fee is:
| 30 |
| (i) $1,500 for the 12 months beginning July 1, 2003 | 31 |
| and $500 for each subsequent year, for facilities with | 32 |
| a Design Average Flow rate of less than
100,000 gallons | 33 |
| per day;
| 34 |
| (ii) $5,000 for the 12 months beginning July 1, |
|
|
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| 2003 and $2,500 for each subsequent year, for | 2 |
| facilities with a Design Average Flow rate of at least
| 3 |
| 100,000 gallons per day but less than 500,000 gallons | 4 |
| per day;
| 5 |
| (iii) $7,500 for facilities with a Design Average | 6 |
| Flow rate of at least
500,000 gallons per day but less | 7 |
| than 1,000,000 gallons per day;
| 8 |
| (iv) $15,000 for facilities with a Design Average | 9 |
| Flow rate of at least
1,000,000 gallons per day but | 10 |
| less than 5,000,000 gallons per day;
| 11 |
| (v) $30,000 for facilities with a Design Average | 12 |
| Flow rate of at least
5,000,000 gallons per day but | 13 |
| less than 10,000,000 gallons per day; and
| 14 |
| (vi) $50,000 for facilities with a Design Average | 15 |
| Flow rate of
10,000,000 gallons per day or more.
| 16 |
| (2) For NPDES permits for treatment works or sewer | 17 |
| collection systems
that include combined sewer overflow | 18 |
| outfalls, the fee is:
| 19 |
| (i) $1,000 for systems serving a tributary | 20 |
| population of 10,000 or less;
| 21 |
| (ii) $5,000 for systems serving a tributary | 22 |
| population that is greater
than 10,000 but not more | 23 |
| than 25,000; and
| 24 |
| (iii) $20,000 for systems serving a tributary | 25 |
| population that is greater
than 25,000.
| 26 |
| The fee amounts in this subdivision (e)(2) are in | 27 |
| addition to the fees
stated in subdivision (e)(1) when the | 28 |
| combined sewer overflow outfall is
contained within a | 29 |
| permit subject to subsection (e)(1) fees.
| 30 |
| (3) For NPDES permits for mines producing coal, the fee | 31 |
| is $5,000.
| 32 |
| (4) For NPDES permits for mines other than mines | 33 |
| producing coal, the fee
is $5,000.
| 34 |
| (5) For NPDES permits for industrial activity where |
|
|
|
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| toxic substances are
not regulated, other than permits | 2 |
| covered under subdivision (e)(3) or (e)(4),
the fee is:
| 3 |
| (i) $1,000 for a facility with a Design Average | 4 |
| Flow rate that is not
more than 10,000 gallons per day;
| 5 |
| (ii) $2,500 for a facility with a Design Average | 6 |
| Flow rate that is more
than 10,000 gallons per day but | 7 |
| not more than 100,000 gallons per day; and
| 8 |
| (iii) $10,000 for a facility with a Design Average | 9 |
| Flow rate that is
more than 100,000 gallons per day.
| 10 |
| (6) For NPDES permits for industrial activity where | 11 |
| toxic substances are
regulated, other than permits covered | 12 |
| under subdivision (e)(3) or (e)(4), the
fee is:
| 13 |
| (i) $15,000 for a facility with a Design Average | 14 |
| Flow rate that is not
more than 250,000 gallons per | 15 |
| day; and
| 16 |
| (ii) $20,000 for a facility with a Design Average | 17 |
| Flow rate that is
more than 250,000 gallons per day.
| 18 |
| (7) For NPDES permits for industrial activity | 19 |
| classified by USEPA as a
major discharge, other than | 20 |
| permits covered under subdivision (e)(3) or (e)(4),
the fee | 21 |
| is:
| 22 |
| (i) $30,000 for a facility where toxic substances | 23 |
| are not regulated; and
| 24 |
| (ii) $50,000 for a facility where toxic substances | 25 |
| are regulated.
| 26 |
| (8) For NPDES permits for municipal separate storm | 27 |
| sewer systems, the fee
is $1,000.
| 28 |
| (9) For NPDES permits for construction site or | 29 |
| industrial storm water,
the fee is $500.
| 30 |
| (f) The annual fee for activities under a permit that | 31 |
| authorizes applying
sludge on land is $2,500 for a sludge | 32 |
| generator permit and $5,000 for a sludge
user permit.
| 33 |
| (g) More than one of the annual fees specified in | 34 |
| subsections (e) and (f)
may be applicable to a permit holder. |
|
|
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| These fees are in addition to any other
fees required under | 2 |
| this Act.
| 3 |
| (h) The fees imposed under this Section do not apply to the | 4 |
| State or any
department or agency of the State, nor to any | 5 |
| school district , or to any private sewage disposal system as | 6 |
| defined in the Private Sewage Disposal Licensing Act (225 ILCS | 7 |
| 225/) .
| 8 |
| (i) The Agency may adopt rules to administer the fee | 9 |
| program established
in this Section. The Agency may include | 10 |
| provisions pertaining to invoices,
notice of late payment, and | 11 |
| disputes concerning the amount or timeliness of
payment. The | 12 |
| Agency may set forth procedures and criteria for the acceptance
| 13 |
| of payments. The absence of such rules does not affect the duty | 14 |
| of the Agency
to immediately begin the assessment and | 15 |
| collection of fees under this Section.
| 16 |
| (j) All fees and interest penalties collected by the Agency | 17 |
| under this
Section shall be deposited into the Illinois Clean | 18 |
| Water Fund, which is
hereby created as a special fund in the | 19 |
| State treasury. Gifts,
supplemental environmental project | 20 |
| funds, and grants may be deposited into
the Fund. Investment | 21 |
| earnings on moneys held in the Fund shall be credited
to the | 22 |
| Fund.
| 23 |
| Subject to appropriation, the moneys in the Fund shall be | 24 |
| used by the
Agency to carry out the Agency's clean water | 25 |
| activities.
| 26 |
| (k) Except as provided in subsection (l), fees
Fees paid to | 27 |
| the Agency under this Section are not refundable.
| 28 |
| (l) The Agency may refund the difference between (a) the | 29 |
| amount paid by any person under subsection (e)(1)(i) or | 30 |
| (e)(1)(ii) of this Section for the 12 months beginning July 1, | 31 |
| 2004 and (b) the amount due under subsection (e)(1)(i) or | 32 |
| (e)(1)(ii) as established by this amendatory Act of the 93rd | 33 |
| General Assembly.
| 34 |
| (Source: P.A. 93-32, eff. 7-1-03.)
|
|