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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||||||||
4 | Section 5. The Retailers' Occupation Tax Act is amended by | ||||||||||||||||||||||||||||||
5 | changing Section 2a as follows:
| ||||||||||||||||||||||||||||||
6 | (35 ILCS 120/2a) (from Ch. 120, par. 441a)
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7 | Sec. 2a. It is unlawful for any person to engage in the | ||||||||||||||||||||||||||||||
8 | business of
selling tangible personal property at retail in | ||||||||||||||||||||||||||||||
9 | this State without a
certificate of registration from the | ||||||||||||||||||||||||||||||
10 | Department. Application
for a certificate of registration | ||||||||||||||||||||||||||||||
11 | shall be made to the Department upon
forms furnished by it. | ||||||||||||||||||||||||||||||
12 | Each such application shall be signed and verified
and shall | ||||||||||||||||||||||||||||||
13 | state: (1) the name and social security number of the
| ||||||||||||||||||||||||||||||
14 | applicant; (2) the address of his principal place
of business; | ||||||||||||||||||||||||||||||
15 | (3) the address of the principal place of business from which
| ||||||||||||||||||||||||||||||
16 | he engages in the business of selling tangible personal | ||||||||||||||||||||||||||||||
17 | property at retail
in this State and the addresses of all other | ||||||||||||||||||||||||||||||
18 | places of business, if any
(enumerating such addresses, if any, | ||||||||||||||||||||||||||||||
19 | in a separate list attached to and
made a part of the | ||||||||||||||||||||||||||||||
20 | application), from which he engages in the business of
selling | ||||||||||||||||||||||||||||||
21 | tangible personal property at retail in this State; (4)
the
| ||||||||||||||||||||||||||||||
22 | name and address of the person or persons who will be | ||||||||||||||||||||||||||||||
23 | responsible for
filing returns and payment of taxes due under |
| |||||||
| |||||||
1 | this Act; (5) in the
case of
a corporation, the name, title, | ||||||
2 | and social security number of
each corporate officer; (6) in | ||||||
3 | the case of a limited liability
company, the
name, social | ||||||
4 | security number, and FEIN number of
each
manager and member; | ||||||
5 | and (7) such other information
as the Department may reasonably | ||||||
6 | require. The application shall contain
an acceptance of | ||||||
7 | responsibility signed by the person or persons who will be
| ||||||
8 | responsible for filing returns and payment of the taxes due | ||||||
9 | under this
Act. If the applicant will sell tangible personal | ||||||
10 | property at retail
through vending machines, his application to | ||||||
11 | register shall indicate the
number of vending machines to be so | ||||||
12 | operated; and thereafter, he shall
notify the Department by | ||||||
13 | January 31 of the number of vending machines which
such person | ||||||
14 | was using in his business of selling tangible personal property
| ||||||
15 | at retail on the preceding December 31.
| ||||||
16 | The Department may deny a certificate of registration to | ||||||
17 | any applicant
if the owner, any partner, any manager or member | ||||||
18 | of a limited liability
company, or a corporate officer of the | ||||||
19 | applicant, is or
has been the owner, a partner, a manager or | ||||||
20 | member of a limited
liability company, or a corporate officer, | ||||||
21 | of another retailer
that is in default for moneys due under | ||||||
22 | this Act.
| ||||||
23 | The Department may require every
Every applicant for a | ||||||
24 | certificate of registration hereunder shall, at
the time of | ||||||
25 | filing such application, furnish a bond from a surety company
| ||||||
26 | authorized to do business in the State of Illinois, or an |
| |||||||
| |||||||
1 | irrevocable
bank letter of credit or a bond signed by 2
| ||||||
2 | personal sureties who have filed, with the Department, sworn | ||||||
3 | statements
disclosing net assets equal to at least 3 times the | ||||||
4 | amount of the bond to
be required of such applicant, or a bond | ||||||
5 | secured by an assignment of a bank
account or certificate of | ||||||
6 | deposit, stocks or bonds, conditioned upon the
applicant paying | ||||||
7 | to the State of Illinois all moneys becoming due under
this Act | ||||||
8 | and under any other State tax law or municipal or county tax
| ||||||
9 | ordinance or resolution under which the certificate of | ||||||
10 | registration that is
issued to the applicant under this Act | ||||||
11 | will permit the applicant to engage
in business without | ||||||
12 | registering separately under such other law, ordinance
or | ||||||
13 | resolution. In making a determination as to whether to require | ||||||
14 | a bond or other security and
The Department shall fix the | ||||||
15 | amount of such security in each
case, the Department shall take
| ||||||
16 | taking into consideration the amount of money expected to | ||||||
17 | become due
from the applicant under this Act and under any | ||||||
18 | other State tax law or
municipal or county tax ordinance or | ||||||
19 | resolution under which the certificate
of registration that is | ||||||
20 | issued to the applicant under this Act will permit
the | ||||||
21 | applicant to engage in business without registering separately | ||||||
22 | under
such other law, ordinance or resolution. The amount of | ||||||
23 | security required by
the Department shall be such as, in its | ||||||
24 | opinion, will protect the State of
Illinois against failure to | ||||||
25 | pay the amount which may become due from the
applicant under | ||||||
26 | this Act and under any other State tax law or municipal or
|
| |||||||
| |||||||
1 | county tax ordinance or resolution under which the certificate | ||||||
2 | of
registration that is issued to the applicant under this Act | ||||||
3 | will permit the
applicant to engage in business without | ||||||
4 | registering separately under such
other law, ordinance or | ||||||
5 | resolution, but the amount of the security required
by the | ||||||
6 | Department shall not exceed three times the amount of the
| ||||||
7 | applicant's average monthly tax liability, or $50,000.00, | ||||||
8 | whichever amount
is lower. The Department may waive the bond or | ||||||
9 | other security requirement if it determines that the | ||||||
10 | administrative costs to the State associated with | ||||||
11 | administering and enforcing the bond or other security | ||||||
12 | provisions of this Section exceed the amount that is likely to | ||||||
13 | be recovered from the bonds or other security.
| ||||||
14 | No certificate of registration under this Act shall be | ||||||
15 | issued by the
Department until the applicant provides the | ||||||
16 | Department with satisfactory
security , if required, as herein | ||||||
17 | provided for.
| ||||||
18 | Upon receipt of the application for certificate of | ||||||
19 | registration in
proper form, and upon approval by the | ||||||
20 | Department of the security furnished
by the applicant or waiver | ||||||
21 | of that requirement , the Department shall issue to such | ||||||
22 | applicant a
certificate of registration which shall permit the | ||||||
23 | person to whom it is
issued to engage in the business of | ||||||
24 | selling tangible personal property at
retail in this State. The | ||||||
25 | certificate of registration shall be
conspicuously displayed | ||||||
26 | at the place of business which the person so
registered states |
| |||||||
| |||||||
1 | in his application to be the principal place of business
from | ||||||
2 | which he engages in the business of selling tangible personal | ||||||
3 | property
at retail in this State.
| ||||||
4 | No certificate of registration issued to a taxpayer who | ||||||
5 | files returns
required by this Act on a monthly basis shall be | ||||||
6 | valid after the expiration
of 5 years from the date of its | ||||||
7 | issuance or last renewal. The expiration
date of a | ||||||
8 | sub-certificate of registration shall be that of the | ||||||
9 | certificate
of registration to which the sub-certificate | ||||||
10 | relates. A certificate of
registration shall automatically be | ||||||
11 | renewed, subject to revocation as
provided by this Act, for an | ||||||
12 | additional 5 years from the date of its
expiration unless | ||||||
13 | otherwise notified by the Department as provided by this
| ||||||
14 | paragraph. Where a taxpayer to whom a certificate of | ||||||
15 | registration is
issued under this Act is in default to the | ||||||
16 | State of Illinois for delinquent
returns or for moneys due
| ||||||
17 | under this Act or any other State tax law or municipal or | ||||||
18 | county ordinance
administered or enforced by the Department, | ||||||
19 | the Department shall, not less
than 120 days before the | ||||||
20 | expiration date of such certificate of
registration, give | ||||||
21 | notice to the taxpayer to whom the certificate was
issued of | ||||||
22 | the account period of the delinquent returns, the amount of
| ||||||
23 | tax,
penalty and interest due and owing from the
taxpayer, and | ||||||
24 | that the certificate of registration shall not be
automatically | ||||||
25 | renewed upon its expiration date unless the taxpayer, on or
| ||||||
26 | before the date of expiration, has filed and paid the |
| |||||||
| |||||||
1 | delinquent returns or
paid the defaulted amount in full. A
| ||||||
2 | taxpayer to whom such a notice is issued shall be deemed an | ||||||
3 | applicant for
renewal. The Department shall promulgate | ||||||
4 | regulations establishing
procedures for taxpayers who file | ||||||
5 | returns on a monthly basis but desire and
qualify to change to | ||||||
6 | a quarterly or yearly filing basis and will no longer
be | ||||||
7 | subject to renewal under this Section, and for taxpayers who | ||||||
8 | file
returns on a yearly or quarterly basis but who desire or | ||||||
9 | are required to
change to a monthly filing basis and will be | ||||||
10 | subject to renewal under
this Section.
| ||||||
11 | The Department may in its discretion approve renewal by an | ||||||
12 | applicant
who is in default if, at the time of application for | ||||||
13 | renewal, the applicant
files all of the delinquent returns or | ||||||
14 | pays to the Department such
percentage of the defaulted amount | ||||||
15 | as may be
determined by the Department and agrees in writing to | ||||||
16 | waive all limitations
upon the Department for collection of the | ||||||
17 | remaining defaulted amount to the
Department over a period not | ||||||
18 | to exceed 5 years from the date of renewal of
the certificate; | ||||||
19 | however, no renewal application submitted by an applicant
who | ||||||
20 | is in default shall be approved if the immediately preceding | ||||||
21 | renewal by
the applicant was conditioned upon the installment | ||||||
22 | payment
agreement described in this Section. The payment | ||||||
23 | agreement herein provided
for shall be in addition to and not | ||||||
24 | in lieu of the security required by
this Section of a taxpayer | ||||||
25 | who is no longer considered a prior continuous
compliance | ||||||
26 | taxpayer. The execution of the payment agreement as provided in
|
| |||||||
| |||||||
1 | this Act shall not toll the accrual of interest at the | ||||||
2 | statutory rate.
| ||||||
3 | A certificate of registration issued under this Act more | ||||||
4 | than 5 years
before the effective date of this amendatory Act | ||||||
5 | of 1989 shall expire and
be subject to the renewal provisions | ||||||
6 | of this Section on the next
anniversary of the date of issuance | ||||||
7 | of such certificate which occurs more
than 6 months after the | ||||||
8 | effective date of this amendatory Act of 1989. A
certificate of | ||||||
9 | registration issued less than 5 years before the effective
date | ||||||
10 | of this amendatory Act of 1989 shall expire and be subject to | ||||||
11 | the
renewal provisions of this Section on the 5th anniversary | ||||||
12 | of the issuance
of the certificate.
| ||||||
13 | If the person so registered states that he operates other | ||||||
14 | places of
business from which he engages in the business of | ||||||
15 | selling tangible personal
property at retail in this State, the | ||||||
16 | Department shall furnish him with a
sub-certificate of | ||||||
17 | registration for each such place of business, and the
applicant | ||||||
18 | shall display the appropriate sub-certificate of registration | ||||||
19 | at
each such place of business. All sub-certificates of | ||||||
20 | registration shall
bear the same registration number as that | ||||||
21 | appearing upon the certificate of
registration to which such | ||||||
22 | sub-certificates relate.
| ||||||
23 | If the applicant will sell tangible personal property at | ||||||
24 | retail through
vending machines, the Department shall furnish | ||||||
25 | him with a sub-certificate
of registration for each such | ||||||
26 | vending machine, and the applicant shall
display the |
| |||||||
| |||||||
1 | appropriate sub-certificate of registration on each such
| ||||||
2 | vending machine by attaching the sub-certificate of | ||||||
3 | registration to a
conspicuous part of such vending machine.
| ||||||
4 | Where the same person engages in 2 or more businesses of | ||||||
5 | selling
tangible personal property at retail in this State, | ||||||
6 | which businesses are
substantially different in character or | ||||||
7 | engaged in under different trade
names or engaged in under | ||||||
8 | other substantially dissimilar circumstances (so
that it is | ||||||
9 | more practicable, from an accounting, auditing or bookkeeping
| ||||||
10 | standpoint, for such businesses to be separately registered), | ||||||
11 | the
Department may require or permit such person (subject to | ||||||
12 | the same
requirements concerning the furnishing of security as | ||||||
13 | those that are
provided for hereinbefore in this Section as to | ||||||
14 | each application for a
certificate of registration) to apply | ||||||
15 | for and obtain a separate certificate
of registration for each | ||||||
16 | such business or for any of such businesses, under
a single | ||||||
17 | certificate of registration supplemented by related
| ||||||
18 | sub-certificates of registration.
| ||||||
19 | Any person who is registered under the "Retailers' | ||||||
20 | Occupation Tax Act"
as of March 8, 1963, and who, during the | ||||||
21 | 3-year period immediately prior to
March 8, 1963, or during a | ||||||
22 | continuous 3-year period part of which passed
immediately | ||||||
23 | before and the remainder of which passes immediately after
| ||||||
24 | March 8, 1963, has been so registered continuously and who is | ||||||
25 | determined by
the Department not to have been either delinquent | ||||||
26 | or deficient in the
payment of tax liability during that period |
| |||||||
| |||||||
1 | under this Act or under any
other State tax law or municipal or | ||||||
2 | county tax ordinance or resolution
under which the certificate | ||||||
3 | of registration that is issued to the
registrant under this Act | ||||||
4 | will permit the registrant to engage in business
without | ||||||
5 | registering separately under such other law, ordinance or
| ||||||
6 | resolution, shall be considered to be a Prior Continuous | ||||||
7 | Compliance
taxpayer. Also any taxpayer who has, as verified by | ||||||
8 | the Department,
faithfully and continuously complied with the | ||||||
9 | condition of his bond or
other security under the provisions of | ||||||
10 | this Act for a period of 3
consecutive years shall be | ||||||
11 | considered to be a Prior Continuous Compliance
taxpayer.
| ||||||
12 | Every Prior Continuous Compliance taxpayer shall be exempt | ||||||
13 | from all
requirements under this Act concerning the furnishing | ||||||
14 | of security as a
condition precedent to his being authorized to | ||||||
15 | engage in the business of
selling tangible personal property at | ||||||
16 | retail in this State. This exemption
shall continue for each | ||||||
17 | such taxpayer until such time as he may be
determined by the | ||||||
18 | Department to be delinquent in the filing of any returns,
or is | ||||||
19 | determined by the Department (either through the Department's
| ||||||
20 | issuance of a final assessment which has become final under the | ||||||
21 | Act, or by
the taxpayer's filing of a return which admits tax | ||||||
22 | that is not paid to be
due) to be delinquent or deficient in | ||||||
23 | the paying of any tax under this Act
or under any other State | ||||||
24 | tax law or municipal or county tax ordinance or
resolution | ||||||
25 | under which the certificate of registration that is issued to
| ||||||
26 | the registrant under this Act will permit the registrant to |
| |||||||
| |||||||
1 | engage in
business without registering separately under such | ||||||
2 | other law, ordinance or
resolution, at which time that taxpayer | ||||||
3 | shall become subject to all the
financial responsibility | ||||||
4 | requirements of this Act and, as a condition of
being allowed | ||||||
5 | to continue to engage in the business of selling tangible
| ||||||
6 | personal property at retail, may
shall be required to post bond | ||||||
7 | or other
acceptable security with the Department covering | ||||||
8 | liability which such
taxpayer may thereafter incur. Any | ||||||
9 | taxpayer who fails to pay an admitted or
established liability | ||||||
10 | under this Act may also be required to post bond or
other | ||||||
11 | acceptable security with this Department guaranteeing the | ||||||
12 | payment of
such admitted or established liability.
| ||||||
13 | No certificate of registration shall be issued to any | ||||||
14 | person who is in
default to the State of Illinois for moneys | ||||||
15 | due under this Act or under any
other State tax law or | ||||||
16 | municipal or county tax ordinance or resolution
under which the | ||||||
17 | certificate of registration that is issued to the applicant
| ||||||
18 | under this Act will permit the applicant to engage in business | ||||||
19 | without
registering separately under such other law, ordinance | ||||||
20 | or resolution.
| ||||||
21 | Any person aggrieved by any decision of the Department | ||||||
22 | under this
Section may, within 20 days after notice of such | ||||||
23 | decision, protest and
request a hearing, whereupon the | ||||||
24 | Department shall give notice to such
person of the time and | ||||||
25 | place fixed for such hearing and shall hold a
hearing in | ||||||
26 | conformity with the provisions of this Act and then issue its
|
| |||||||
| |||||||
1 | final administrative decision in the matter to such person. In | ||||||
2 | the absence
of such a protest within 20 days, the Department's | ||||||
3 | decision shall become
final without any further determination | ||||||
4 | being made or notice given.
| ||||||
5 | With respect to security other than bonds (upon which the | ||||||
6 | Department may
sue in the event of a forfeiture), if the | ||||||
7 | taxpayer fails to pay, when due,
any amount whose payment such | ||||||
8 | security guarantees, the Department shall,
after such | ||||||
9 | liability is admitted by the taxpayer or established by the
| ||||||
10 | Department through the issuance of a final assessment that has | ||||||
11 | become final
under the law, convert the security which that | ||||||
12 | taxpayer has furnished into
money for the State, after first | ||||||
13 | giving the taxpayer at least 10 days'
written notice, by | ||||||
14 | registered or certified mail, to pay the liability or
forfeit | ||||||
15 | such security to the Department. If the security consists of | ||||||
16 | stocks
or bonds or other securities which are listed on a | ||||||
17 | public exchange, the
Department shall sell such securities | ||||||
18 | through such public exchange. If
the security consists of an | ||||||
19 | irrevocable bank letter of credit, the
Department shall convert | ||||||
20 | the security in the manner provided for in the
Uniform | ||||||
21 | Commercial Code. If the security consists of a bank certificate | ||||||
22 | of
deposit, the Department shall convert the security into | ||||||
23 | money by demanding
and collecting the amount of such bank | ||||||
24 | certificate of deposit from the bank
which issued such | ||||||
25 | certificate. If the security consists of a type of stocks
or | ||||||
26 | other securities which are not listed on a public exchange, the
|
| |||||||
| |||||||
1 | Department shall sell such security to the highest and best | ||||||
2 | bidder after
giving at least 10 days' notice of the date, time | ||||||
3 | and place of the intended
sale by publication in the "State | ||||||
4 | Official Newspaper". If the Department
realizes more than the | ||||||
5 | amount of such liability from the security, plus the
expenses | ||||||
6 | incurred by the Department in converting the security into | ||||||
7 | money,
the Department shall pay such excess to the taxpayer who | ||||||
8 | furnished such
security, and the balance shall be paid into the | ||||||
9 | State Treasury.
| ||||||
10 | The Department shall discharge any surety and shall release | ||||||
11 | and return
any security deposited, assigned, pledged or | ||||||
12 | otherwise provided to it by
a taxpayer under this Section | ||||||
13 | within 30 days after:
| ||||||
14 | (1) such taxpayer becomes a Prior Continuous | ||||||
15 | Compliance taxpayer; or
| ||||||
16 | (2) such taxpayer has ceased to collect receipts on | ||||||
17 | which he is required
to remit tax to the Department, has | ||||||
18 | filed a final tax return, and has paid
to the Department an | ||||||
19 | amount sufficient to discharge his remaining tax
| ||||||
20 | liability, as determined by the Department, under this Act | ||||||
21 | and under every
other State tax law or municipal or county | ||||||
22 | tax ordinance or resolution
under which the certificate of | ||||||
23 | registration issued under this Act permits
the registrant | ||||||
24 | to engage in business without registering separately under
| ||||||
25 | such other law, ordinance or resolution. The Department | ||||||
26 | shall make a final
determination of the taxpayer's |
| |||||||
| |||||||
1 | outstanding tax liability as expeditiously
as possible | ||||||
2 | after his final tax return has been filed; if the | ||||||
3 | Department
cannot make such final determination within 45 | ||||||
4 | days after receiving the
final tax return, within such | ||||||
5 | period it shall so notify the taxpayer,
stating its reasons | ||||||
6 | therefor.
| ||||||
7 | (Source: P.A. 90-491, eff. 1-1-98; 91-357, eff. 7-29-99.)
| ||||||
8 | Section 10. The Cigarette Tax Act is amended by changing | ||||||
9 | Section 4 as follows:
| ||||||
10 | (35 ILCS 130/4) (from Ch. 120, par. 453.4)
| ||||||
11 | Sec. 4. Distributor's license. No person may engage in | ||||||
12 | business as a distributor of cigarettes in this
State within | ||||||
13 | the meaning of the first 2 definitions of distributor in
| ||||||
14 | Section 1 of this Act without first having obtained a license | ||||||
15 | therefor from
the Department. Application for license shall be | ||||||
16 | made to the Department in
form as furnished and prescribed by | ||||||
17 | the Department. Each applicant for a
license under this Section | ||||||
18 | shall furnish to the Department on the form
signed and verified | ||||||
19 | by the applicant the following information:
| ||||||
20 | (a) The name and address of the applicant;
| ||||||
21 | (b) The address of the location at which the applicant | ||||||
22 | proposes to
engage in business as a distributor of | ||||||
23 | cigarettes in this State;
| ||||||
24 | (c) Such other additional information as the |
| |||||||
| |||||||
1 | Department may lawfully
require by its rules and | ||||||
2 | regulations.
| ||||||
3 | The annual license fee payable to the Department for each | ||||||
4 | distributor's
license shall be $250. The purpose of such annual | ||||||
5 | license fee is to defray
the cost, to the Department, of
| ||||||
6 | serializing cigarette tax stamps. Each applicant for license | ||||||
7 | shall pay such
fee to the Department at the time of submitting | ||||||
8 | his application for license
to the Department.
| ||||||
9 | The Department may require every
Every applicant who is | ||||||
10 | required to procure a distributor's license shall
file with his | ||||||
11 | application a joint and several bond. If required, such
Such
| ||||||
12 | bond shall be
executed to the Department of Revenue, with good | ||||||
13 | and sufficient surety or
sureties residing or licensed to do | ||||||
14 | business within the State of Illinois,
in the amount of $2,500, | ||||||
15 | conditioned upon the true and faithful compliance
by the | ||||||
16 | licensee with all of the provisions of this Act. If required, | ||||||
17 | such
Such bond, or a
reissue thereof, or a substitute therefor, | ||||||
18 | shall be kept in effect during
the entire period covered by the | ||||||
19 | license. A separate application for
license shall be made, a | ||||||
20 | separate annual license fee paid, and , if required, a separate
| ||||||
21 | bond filed, for each place of business at which a person who is | ||||||
22 | required to
procure a distributor's license under this Section | ||||||
23 | proposes to engage in
business as a distributor in Illinois | ||||||
24 | under this Act. The Department may waive the bond requirement | ||||||
25 | if it determines that the administrative costs to the State | ||||||
26 | associated with administering and enforcing the bond |
| |||||||
| |||||||
1 | provisions of this Section exceed the amount that is likely to | ||||||
2 | be recovered from the bonds.
| ||||||
3 | The following are ineligible to receive a distributor's | ||||||
4 | license under
this Act:
| ||||||
5 | (1) a person who is not of good character and | ||||||
6 | reputation in the
community in which he resides;
| ||||||
7 | (2) a person who has been convicted of a felony | ||||||
8 | under any Federal or
State law, if the Department, | ||||||
9 | after investigation and a hearing, if
requested by the | ||||||
10 | applicant, determines that such person has not been
| ||||||
11 | sufficiently rehabilitated to warrant the public | ||||||
12 | trust;
| ||||||
13 | (3) a corporation, if any officer, manager or | ||||||
14 | director thereof, or any
stockholder or stockholders | ||||||
15 | owning in the aggregate more than 5% of the
stock of | ||||||
16 | such corporation, would not be eligible to receive a | ||||||
17 | license under
this Act for any reason.
| ||||||
18 | The Department, upon receipt of an application, license fee | ||||||
19 | and , if required, bond in
proper form, from a person who is | ||||||
20 | eligible to receive a distributor's
license under this Act, | ||||||
21 | shall issue to such applicant a license in form as
prescribed | ||||||
22 | by the Department, which license shall permit the applicant to
| ||||||
23 | which it is issued to engage in business as a distributor at | ||||||
24 | the place
shown in his application. All licenses issued by the | ||||||
25 | Department under this
Act shall be valid for not to exceed one | ||||||
26 | year after issuance unless sooner
revoked, canceled or |
| |||||||
| |||||||
1 | suspended as provided in this Act. No license issued
under this | ||||||
2 | Act is transferable or assignable. Such license shall be
| ||||||
3 | conspicuously displayed in the place of business conducted by | ||||||
4 | the licensee
in Illinois under such license.
| ||||||
5 | Any person aggrieved by any decision of the Department | ||||||
6 | under this Section
may, within 20 days after notice of the | ||||||
7 | decision, protest and request a
hearing. Upon receiving a | ||||||
8 | request for a hearing, the Department shall give
notice to the | ||||||
9 | person requesting the hearing of the time and place fixed for | ||||||
10 | the
hearing and shall hold a hearing in conformity with the | ||||||
11 | provisions of this Act
and then issue its final administrative | ||||||
12 | decision in the matter to that person.
In the absence of a | ||||||
13 | protest and request for a hearing within 20 days, the
| ||||||
14 | Department's decision shall become final without any further | ||||||
15 | determination
being made or notice given.
| ||||||
16 | (Source: P.A. 91-901, eff. 1-1-01; 92-322, eff. 1-1-02.)
| ||||||
17 | Section 15. The Cigarette Use Tax Act is amended by | ||||||
18 | changing Section 4 as follows:
| ||||||
19 | (35 ILCS 135/4) (from Ch. 120, par. 453.34)
| ||||||
20 | Sec. 4. Distributor's license. A distributor maintaining a | ||||||
21 | place of business in this State, if required
to procure a | ||||||
22 | license or allowed to obtain a permit as a distributor under
| ||||||
23 | the Cigarette Tax Act, need not obtain an additional license or | ||||||
24 | permit
under this Act, but shall be deemed to be sufficiently |
| |||||||
| |||||||
1 | licensed or
registered by virtue of his being licensed or | ||||||
2 | registered under the
Cigarette Tax Act.
| ||||||
3 | Every distributor maintaining a place of business in this | ||||||
4 | State, if not
required to procure a license or allowed to | ||||||
5 | obtain a permit as a
distributor under the Cigarette Tax Act, | ||||||
6 | shall make a verified application
to the Department (upon a | ||||||
7 | form prescribed and furnished by the Department)
for a license | ||||||
8 | to act as a distributor under this Act. In completing such
| ||||||
9 | application, the applicant shall furnish such information as | ||||||
10 | the Department
may reasonably require.
| ||||||
11 | The annual license fee payable to the Department for each | ||||||
12 | distributor's
license shall be $250. The purpose of such annual | ||||||
13 | license fee is to defray
the cost, to the Department, of
| ||||||
14 | serializing cigarette tax stamps. The applicant for license | ||||||
15 | shall pay such
fee to the Department at the time of submitting | ||||||
16 | the application for license
to the Department.
| ||||||
17 | The Department may require such
Such applicant to
shall
| ||||||
18 | file, with his application, a joint and several
bond. If | ||||||
19 | required, such
Such bond shall be executed to the Department of | ||||||
20 | Revenue, with good
and sufficient surety or sureties residing | ||||||
21 | or licensed to do business
within the State of Illinois, in the | ||||||
22 | amount of $2,500, conditioned upon the
true and faithful | ||||||
23 | compliance by the licensee with all of the provisions of
this | ||||||
24 | Act. If required, such
Such bond, or a reissue thereof, or a | ||||||
25 | substitute therefor, shall
be kept in effect during the entire | ||||||
26 | period covered by the license. A
separate application for |
| |||||||
| |||||||
1 | license shall be made, a separate annual license
fee paid, and , | ||||||
2 | if required, a separate bond filed, for each place of business | ||||||
3 | at or from
which the applicant proposes to act as a distributor | ||||||
4 | under this Act and for
which the applicant is not required to | ||||||
5 | procure a license or allowed to
obtain a permit as a | ||||||
6 | distributor under the Cigarette Tax Act. The Department may | ||||||
7 | waive the bond requirement if it determines that the | ||||||
8 | administrative costs to the State associated with | ||||||
9 | administering and enforcing the bond provisions of this Section | ||||||
10 | exceed the amount that is likely to be recovered from the | ||||||
11 | bonds.
| ||||||
12 | The following are ineligible to receive a distributor's | ||||||
13 | license under
this Act:
| ||||||
14 | (1) a person who is not of good character and | ||||||
15 | reputation in the
community in which he resides;
| ||||||
16 | (2) a person who has been convicted of a felony under | ||||||
17 | any Federal or
State law, if the Department, after | ||||||
18 | investigation and a hearing, if
requested by the applicant, | ||||||
19 | determines that such person has not been
sufficiently | ||||||
20 | rehabilitated to warrant the public trust;
| ||||||
21 | (3) a corporation, if any officer, manager or director | ||||||
22 | thereof, or any
stockholder or stockholders owning in the | ||||||
23 | aggregate more than 5% of the
stock of such corporation, | ||||||
24 | would not be eligible to receive a license
hereunder for | ||||||
25 | any reason.
| ||||||
26 | Upon approval of such application and , if required, bond |
| |||||||
| |||||||
1 | and payment of the required
annual license fee, the Department | ||||||
2 | shall issue a license to the applicant.
Such license shall | ||||||
3 | permit the applicant to engage in business as a
distributor at | ||||||
4 | or from the place shown in his application. All licenses
issued | ||||||
5 | by the Department under this Act shall be valid for not to | ||||||
6 | exceed
one year after issuance unless sooner revoked, canceled | ||||||
7 | or suspended as in
this Act provided. No license issued under | ||||||
8 | this Act is transferable or
assignable. Such license shall be | ||||||
9 | conspicuously displayed at the place of
business for which it | ||||||
10 | is issued.
| ||||||
11 | Any person aggrieved by any decision of the Department | ||||||
12 | under this Section
may, within 20 days after notice of the | ||||||
13 | decision, protest and request a
hearing. Upon receiving a | ||||||
14 | request for a hearing, the Department shall give
notice to the | ||||||
15 | person requesting the hearing of the time and place fixed for | ||||||
16 | the
hearing and shall hold a hearing in conformity with the | ||||||
17 | provisions of this Act
and then issue its final administrative | ||||||
18 | decision in the matter to that person.
In the absence of a | ||||||
19 | protest and request for a hearing within 20 days, the
| ||||||
20 | Department's decision shall become final without any further | ||||||
21 | determination
being made or notice given.
| ||||||
22 | (Source: P.A. 91-901, eff. 1-1-01; 92-322, eff. 1-1-02.)
| ||||||
23 | Section 20. The Liquor Control Act of 1934 is amended by | ||||||
24 | changing Section 8-2 as follows:
|
| |||||||
| |||||||
1 | (235 ILCS 5/8-2) (from Ch. 43, par. 159)
| ||||||
2 | Sec. 8-2. It is the duty of each manufacturer with respect | ||||||
3 | to alcoholic
liquor produced or imported by such manufacturer, | ||||||
4 | or purchased tax-free by
such manufacturer from another | ||||||
5 | manufacturer or importing
distributor, and of each importing | ||||||
6 | distributor as to alcoholic liquor
purchased by such importing | ||||||
7 | distributor from foreign importers or from
anyone from any | ||||||
8 | point in the United States outside of this State or
purchased | ||||||
9 | tax-free from another manufacturer or importing
distributor, | ||||||
10 | to pay the tax imposed by Section 8-1 to the
Department of | ||||||
11 | Revenue on or before the 15th day of the calendar month
| ||||||
12 | following the calendar month in which such alcoholic liquor is | ||||||
13 | sold or used
by such manufacturer or by such importing | ||||||
14 | distributor other than in an
authorized tax-free manner or to | ||||||
15 | pay that tax electronically as provided in
this Section.
| ||||||
16 | Each manufacturer and each importing distributor shall
| ||||||
17 | make payment under one of the following methods: (1) on or | ||||||
18 | before the
15th day of each calendar month, file in person or | ||||||
19 | by United States
first-class
mail, postage pre-paid,
with the | ||||||
20 | Department of Revenue, on
forms prescribed and furnished by the | ||||||
21 | Department, a report in writing in
such form as may be required | ||||||
22 | by the Department in order to compute, and
assure the accuracy | ||||||
23 | of, the tax due on all taxable sales and uses of
alcoholic | ||||||
24 | liquor occurring during the preceding month. Payment of the tax
| ||||||
25 | in the amount disclosed by the report shall accompany the | ||||||
26 | report or, (2) on
or
before the 15th day of each calendar |
| |||||||
| |||||||
1 | month, electronically file with the
Department of Revenue, on | ||||||
2 | forms prescribed and furnished by the Department, an
electronic | ||||||
3 | report in such form as may be required by the Department in | ||||||
4 | order to
compute,
and assure the accuracy of, the tax due on | ||||||
5 | all taxable sales and uses of
alcoholic liquor
occurring during | ||||||
6 | the preceding month. An electronic payment of the tax in the
| ||||||
7 | amount
disclosed by the report shall accompany the report. A | ||||||
8 | manufacturer or
distributor who
files an electronic report and | ||||||
9 | electronically pays the tax imposed pursuant to
Section 8-1
to | ||||||
10 | the Department of Revenue on or before the 15th day of the | ||||||
11 | calendar month
following
the calendar month in which such | ||||||
12 | alcoholic liquor is sold or used by that
manufacturer or
| ||||||
13 | importing distributor other than in an authorized tax-free | ||||||
14 | manner shall pay to
the
Department the amount of the tax | ||||||
15 | imposed pursuant to Section 8-1, less a
discount
which is | ||||||
16 | allowed to reimburse the manufacturer or importing distributor
| ||||||
17 | for the
expenses incurred in keeping and maintaining records, | ||||||
18 | preparing and filing the
electronic
returns, remitting the tax, | ||||||
19 | and supplying data to the Department upon
request.
| ||||||
20 | The discount shall be in an amount as follows:
| ||||||
21 | (1) For original returns due on or after January 1, | ||||||
22 | 2003 through
September 30, 2003, the discount shall be | ||||||
23 | 1.75% or $1,250 per return, whichever
is less;
| ||||||
24 | (2) For original returns due on or after October 1, | ||||||
25 | 2003 through September
30, 2004, the discount shall be 2% | ||||||
26 | or $3,000 per return, whichever is less; and
|
| |||||||
| |||||||
1 | (3) For original returns due on or after October 1, | ||||||
2 | 2004, the discount
shall
be 2% or $2,000 per return, | ||||||
3 | whichever is less.
| ||||||
4 | The Department may, if it deems it necessary in order to | ||||||
5 | insure the
payment of the tax imposed by this Article, require | ||||||
6 | returns to be made
more frequently than and covering periods of | ||||||
7 | less than a month. Such return
shall contain such further | ||||||
8 | information as the Department may reasonably
require.
| ||||||
9 | It shall be presumed that all alcoholic liquors acquired or | ||||||
10 | made by any
importing distributor or manufacturer have been | ||||||
11 | sold or used by him in this
State and are the basis for the tax | ||||||
12 | imposed by this Article unless proven,
to the satisfaction of | ||||||
13 | the Department, that such alcoholic liquors are (1)
still in | ||||||
14 | the possession of such importing distributor or manufacturer, | ||||||
15 | or
(2) prior to the termination of possession have been lost by | ||||||
16 | theft or
through unintentional destruction, or (3) that such | ||||||
17 | alcoholic liquors are
otherwise exempt from taxation under this | ||||||
18 | Act.
| ||||||
19 | The Department may require any foreign importer to file | ||||||
20 | monthly
information returns, by the 15th day of the month | ||||||
21 | following the month which
any such return covers, if the | ||||||
22 | Department determines this to be necessary
to the proper | ||||||
23 | performance of the Department's functions and duties under
this | ||||||
24 | Act. Such return shall contain such information as the | ||||||
25 | Department may
reasonably require.
| ||||||
26 | The Department may require every
Every manufacturer and |
| |||||||
| |||||||
1 | importing distributor to
shall also file, with the
Department, | ||||||
2 | a bond in an amount not less than $1,000 and not to exceed
| ||||||
3 | $100,000 on a form to be approved by, and with a surety or | ||||||
4 | sureties
satisfactory to, the Department. If required, such
| ||||||
5 | Such bond shall be conditioned upon the
manufacturer or | ||||||
6 | importing distributor paying to the Department all monies
| ||||||
7 | becoming due from such manufacturer or importing distributor | ||||||
8 | under this
Article. In making a determination as to whether to | ||||||
9 | require a bond and the amount at which to
The Department shall
| ||||||
10 | fix the penalty of such bond in each case,
the Department shall | ||||||
11 | take
taking into consideration the amount of alcoholic liquor | ||||||
12 | expected to be
sold and used by such manufacturer or importing | ||||||
13 | distributor, and , if a bond requirement is imposed, the
penalty | ||||||
14 | fixed by the Department shall be sufficient, in the | ||||||
15 | Department's
opinion, to protect the State of Illinois against | ||||||
16 | failure to pay any amount
due under this Article, but the | ||||||
17 | amount of the penalty fixed by the
Department shall not exceed | ||||||
18 | twice the amount of tax liability of a monthly
return , nor | ||||||
19 | shall the amount of such penalty be less than $1,000 . The | ||||||
20 | Department may waive the bond requirement if it determines that | ||||||
21 | the administrative costs to the State associated with | ||||||
22 | administering and enforcing the bond provisions of this Section | ||||||
23 | exceed the amount that is likely to be recovered from the | ||||||
24 | bonds. The
Department shall notify the Commission of the | ||||||
25 | Department's approval or
disapproval of any such | ||||||
26 | manufacturer's or importing distributor's bond, or
of the |
| |||||||
| |||||||
1 | termination or cancellation of any such bond, or of the | ||||||
2 | Department's
direction to a manufacturer or importing | ||||||
3 | distributor that he must file
additional bond in order to | ||||||
4 | comply with this Section. The Commission shall
not issue a | ||||||
5 | license to any applicant for a manufacturer's or importing
| ||||||
6 | distributor's license unless the Commission has received a | ||||||
7 | notification
from the Department showing that such applicant | ||||||
8 | has filed a satisfactory
bond with the Department hereunder and | ||||||
9 | that such bond has been approved by
the Department or that such | ||||||
10 | bond requirement has been waived . Failure by any licensed | ||||||
11 | manufacturer or importing
distributor to keep a satisfactory | ||||||
12 | bond in effect with the Department , if required, or to
furnish | ||||||
13 | additional bond to the Department, when required hereunder by | ||||||
14 | the
Department to do so, shall be grounds for the revocation or | ||||||
15 | suspension of
such manufacturer's or importing distributor's | ||||||
16 | license by the Commission.
If a manufacturer or importing | ||||||
17 | distributor fails to pay any amount due
under this Article, his | ||||||
18 | bond with the Department shall be deemed forfeited,
and the | ||||||
19 | Department may institute a suit in its own name on such bond.
| ||||||
20 | After notice and opportunity for a hearing the State | ||||||
21 | Commission may
revoke or suspend the license of any | ||||||
22 | manufacturer or importing distributor
who fails to comply with | ||||||
23 | the provisions of this Section. Notice of such
hearing and the | ||||||
24 | time and place thereof shall be in writing and shall
contain a | ||||||
25 | statement of the charges against the licensee. Such notice may | ||||||
26 | be
given by United States registered or certified mail with |
| |||||||
| |||||||
1 | return receipt
requested, addressed to the person concerned at | ||||||
2 | his last known address and
shall be given not less than 7 days | ||||||
3 | prior to the date fixed for the
hearing. An order revoking or | ||||||
4 | suspending a license under the provisions of
this Section may | ||||||
5 | be reviewed in the manner provided in Section 7-10
of this Act. | ||||||
6 | No new license shall be granted to a person
whose license has | ||||||
7 | been revoked for a violation of this Section or, in case
of | ||||||
8 | suspension, shall such suspension be terminated until he has | ||||||
9 | paid to the
Department all taxes and penalties which he owes | ||||||
10 | the State under the
provisions of this Act.
| ||||||
11 | Every manufacturer or importing distributor who has, as | ||||||
12 | verified by
the Department, continuously complied with the | ||||||
13 | conditions of the bond under
this Act for a period of 2 years | ||||||
14 | shall be considered to be a prior
continuous compliance | ||||||
15 | taxpayer. In determining the consecutive period of
time for | ||||||
16 | qualification as a prior continuous compliance taxpayer, any
| ||||||
17 | consecutive period of time of qualifying compliance | ||||||
18 | immediately prior to
the effective date of this amendatory Act | ||||||
19 | of 1987 shall be credited to any
manufacturer or importing | ||||||
20 | distributor.
| ||||||
21 | Every prior continuous compliance taxpayer shall be exempt | ||||||
22 | from the bond
requirements of this Act until the Department has | ||||||
23 | determined the taxpayer
to be delinquent in the filing of any | ||||||
24 | return or deficient in the payment of
any tax under this Act. | ||||||
25 | Any taxpayer who fails to pay an admitted or
established | ||||||
26 | liability under this Act may also be required to post bond or
|
| |||||||
| |||||||
1 | other acceptable security with the Department guaranteeing the | ||||||
2 | payment of
such admitted or established liability.
| ||||||
3 | The Department shall discharge any surety and shall release | ||||||
4 | and return
any bond or security deposit assigned, pledged or | ||||||
5 | otherwise provided to it
by a taxpayer under this Section | ||||||
6 | within 30 days after: (1) such taxpayer
becomes a prior | ||||||
7 | continuous compliance taxpayer; or (2) such taxpayer has
ceased | ||||||
8 | to collect receipts on which he is required to remit tax to the
| ||||||
9 | Department, has filed a final tax return, and has paid to the | ||||||
10 | Department an
amount sufficient to discharge his remaining tax | ||||||
11 | liability as determined by
the Department under this Act.
| ||||||
12 | (Source: P.A. 92-393, eff. 1-1-03; 93-22, eff. 6-20-03.)
| ||||||
13 | Section 99. Effective date. This Act takes effect upon | ||||||
14 | becoming law.
|