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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,
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3 | represented in the General Assembly:
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4 | Section 5. The Retailers' Occupation Tax Act is amended by | |||||||||||||||||||
5 | changing Section 2a as follows:
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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
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14 | applicant; (2) the address of his principal place
of business; | |||||||||||||||||||
15 | (3) the address of the principal place of business from which
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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
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22 | name and address of the person or persons who will be | |||||||||||||||||||
23 | responsible for
filing returns and payment of taxes due under |
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1 | this Act; (5) in the case of a publicly-traded corporation, the | ||||||
2 | name and title of each corporate officer and in the
case of
all | ||||||
3 | other corporations a corporation , the name, title, and social | ||||||
4 | security number of
each corporate officer; (6) in the case of a | ||||||
5 | limited liability
company, the
name, social security number, | ||||||
6 | and FEIN number of
each
manager and member; and (7) such other | ||||||
7 | information
as the Department may reasonably require. The | ||||||
8 | application shall contain
an acceptance of responsibility | ||||||
9 | signed by the person or persons who will be
responsible for | ||||||
10 | filing returns and payment of the taxes due under this
Act. If | ||||||
11 | the applicant will sell tangible personal property at retail
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12 | through vending machines, his application to register shall | ||||||
13 | indicate the
number of vending machines to be so operated; and | ||||||
14 | thereafter, he shall
notify the Department by January 31 of the | ||||||
15 | number of vending machines which
such person was using in his | ||||||
16 | business of selling tangible personal property
at retail on the | ||||||
17 | preceding December 31.
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18 | The Department may deny a certificate of registration to | ||||||
19 | any applicant
if the owner, any partner, any manager or member | ||||||
20 | of a limited liability
company, or a corporate officer of the | ||||||
21 | applicant, is or
has been the owner, a partner, a manager or | ||||||
22 | member of a limited
liability company, or a corporate officer, | ||||||
23 | of another retailer
that is in default for moneys due under | ||||||
24 | this Act.
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25 | Every applicant for a certificate of registration | ||||||
26 | hereunder shall, at
the time of filing such application, |
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1 | furnish a bond from a surety company
authorized to do business | ||||||
2 | in the State of Illinois, or an irrevocable
bank letter of | ||||||
3 | credit or a bond signed by 2
personal sureties who have filed, | ||||||
4 | with the Department, sworn statements
disclosing net assets | ||||||
5 | equal to at least 3 times the amount of the bond to
be required | ||||||
6 | of such applicant, or a bond secured by an assignment of a bank
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7 | account or certificate of deposit, stocks or bonds, conditioned | ||||||
8 | upon the
applicant paying to the State of Illinois all moneys | ||||||
9 | becoming due under
this Act and under any other State tax law | ||||||
10 | or municipal or county tax
ordinance or resolution under which | ||||||
11 | the certificate of registration that is
issued to the applicant | ||||||
12 | under this Act will permit the applicant to engage
in business | ||||||
13 | without registering separately under such other law, ordinance
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14 | or resolution. The Department shall fix the amount of such | ||||||
15 | security in each
case, taking into consideration the amount of | ||||||
16 | money expected to become due
from the applicant under this Act | ||||||
17 | and under any other State tax law or
municipal or county tax | ||||||
18 | ordinance or resolution under which the certificate
of | ||||||
19 | registration that is issued to the applicant under this Act | ||||||
20 | will permit
the applicant to engage in business without | ||||||
21 | registering separately under
such other law, ordinance or | ||||||
22 | resolution. The amount of security required by
the Department | ||||||
23 | shall be such as, in its opinion, will protect the State of
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24 | Illinois against failure to pay the amount which may become due | ||||||
25 | from the
applicant under this Act and under any other State tax | ||||||
26 | law or municipal or
county tax ordinance or resolution under |
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1 | which the certificate of
registration that is issued to the | ||||||
2 | applicant under this Act will permit the
applicant to engage in | ||||||
3 | business without registering separately under such
other law, | ||||||
4 | ordinance or resolution, but the amount of the security | ||||||
5 | required
by the Department shall not exceed three times the | ||||||
6 | amount of the
applicant's average monthly tax liability, or | ||||||
7 | $50,000.00, whichever amount
is lower.
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8 | No certificate of registration under this Act shall be | ||||||
9 | issued by the
Department until the applicant provides the | ||||||
10 | Department with satisfactory
security as herein provided for.
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11 | Upon receipt of the application for certificate of | ||||||
12 | registration in
proper form, and upon approval by the | ||||||
13 | Department of the security furnished
by the applicant, the | ||||||
14 | Department shall issue to such applicant a
certificate of | ||||||
15 | registration which shall permit the person to whom it is
issued | ||||||
16 | to engage in the business of selling tangible personal property | ||||||
17 | at
retail in this State. The certificate of registration shall | ||||||
18 | be
conspicuously displayed at the place of business which the | ||||||
19 | person so
registered states in his application to be the | ||||||
20 | principal place of business
from which he engages in the | ||||||
21 | business of selling tangible personal property
at retail in | ||||||
22 | this State.
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23 | No certificate of registration issued to a taxpayer who | ||||||
24 | files returns
required by this Act on a monthly basis shall be | ||||||
25 | valid after the expiration
of 5 years from the date of its | ||||||
26 | issuance or last renewal. The expiration
date of a |
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1 | sub-certificate of registration shall be that of the | ||||||
2 | certificate
of registration to which the sub-certificate | ||||||
3 | relates. A certificate of
registration shall automatically be | ||||||
4 | renewed, subject to revocation as
provided by this Act, for an | ||||||
5 | additional 5 years from the date of its
expiration unless | ||||||
6 | otherwise notified by the Department as provided by this
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7 | paragraph. Where a taxpayer to whom a certificate of | ||||||
8 | registration is
issued under this Act is in default to the | ||||||
9 | State of Illinois for delinquent
returns or for moneys due
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10 | under this Act or any other State tax law or municipal or | ||||||
11 | county ordinance
administered or enforced by the Department, | ||||||
12 | the Department shall, not less
than 120 days before the | ||||||
13 | expiration date of such certificate of
registration, give | ||||||
14 | notice to the taxpayer to whom the certificate was
issued of | ||||||
15 | the account period of the delinquent returns, the amount of
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16 | tax,
penalty and interest due and owing from the
taxpayer, and | ||||||
17 | that the certificate of registration shall not be
automatically | ||||||
18 | renewed upon its expiration date unless the taxpayer, on or
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19 | before the date of expiration, has filed and paid the | ||||||
20 | delinquent returns or
paid the defaulted amount in full. A
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21 | taxpayer to whom such a notice is issued shall be deemed an | ||||||
22 | applicant for
renewal. The Department shall promulgate | ||||||
23 | regulations establishing
procedures for taxpayers who file | ||||||
24 | returns on a monthly basis but desire and
qualify to change to | ||||||
25 | a quarterly or yearly filing basis and will no longer
be | ||||||
26 | subject to renewal under this Section, and for taxpayers who |
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1 | file
returns on a yearly or quarterly basis but who desire or | ||||||
2 | are required to
change to a monthly filing basis and will be | ||||||
3 | subject to renewal under
this Section.
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4 | The Department may in its discretion approve renewal by an | ||||||
5 | applicant
who is in default if, at the time of application for | ||||||
6 | renewal, the applicant
files all of the delinquent returns or | ||||||
7 | pays to the Department such
percentage of the defaulted amount | ||||||
8 | as may be
determined by the Department and agrees in writing to | ||||||
9 | waive all limitations
upon the Department for collection of the | ||||||
10 | remaining defaulted amount to the
Department over a period not | ||||||
11 | to exceed 5 years from the date of renewal of
the certificate; | ||||||
12 | however, no renewal application submitted by an applicant
who | ||||||
13 | is in default shall be approved if the immediately preceding | ||||||
14 | renewal by
the applicant was conditioned upon the installment | ||||||
15 | payment
agreement described in this Section. The payment | ||||||
16 | agreement herein provided
for shall be in addition to and not | ||||||
17 | in lieu of the security required by
this Section of a taxpayer | ||||||
18 | who is no longer considered a prior continuous
compliance | ||||||
19 | taxpayer. The execution of the payment agreement as provided in
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20 | this Act shall not toll the accrual of interest at the | ||||||
21 | statutory rate.
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22 | A certificate of registration issued under this Act more | ||||||
23 | than 5 years
before the effective date of this amendatory Act | ||||||
24 | of 1989 shall expire and
be subject to the renewal provisions | ||||||
25 | of this Section on the next
anniversary of the date of issuance | ||||||
26 | of such certificate which occurs more
than 6 months after the |
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1 | effective date of this amendatory Act of 1989. A
certificate of | ||||||
2 | registration issued less than 5 years before the effective
date | ||||||
3 | of this amendatory Act of 1989 shall expire and be subject to | ||||||
4 | the
renewal provisions of this Section on the 5th anniversary | ||||||
5 | of the issuance
of the certificate.
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6 | If the person so registered states that he operates other | ||||||
7 | places of
business from which he engages in the business of | ||||||
8 | selling tangible personal
property at retail in this State, the | ||||||
9 | Department shall furnish him with a
sub-certificate of | ||||||
10 | registration for each such place of business, and the
applicant | ||||||
11 | shall display the appropriate sub-certificate of registration | ||||||
12 | at
each such place of business. All sub-certificates of | ||||||
13 | registration shall
bear the same registration number as that | ||||||
14 | appearing upon the certificate of
registration to which such | ||||||
15 | sub-certificates relate.
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16 | If the applicant will sell tangible personal property at | ||||||
17 | retail through
vending machines, the Department shall furnish | ||||||
18 | him with a sub-certificate
of registration for each such | ||||||
19 | vending machine, and the applicant shall
display the | ||||||
20 | appropriate sub-certificate of registration on each such
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21 | vending machine by attaching the sub-certificate of | ||||||
22 | registration to a
conspicuous part of such vending machine.
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23 | Where the same person engages in 2 or more businesses of | ||||||
24 | selling
tangible personal property at retail in this State, | ||||||
25 | which businesses are
substantially different in character or | ||||||
26 | engaged in under different trade
names or engaged in under |
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1 | other substantially dissimilar circumstances (so
that it is | ||||||
2 | more practicable, from an accounting, auditing or bookkeeping
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3 | standpoint, for such businesses to be separately registered), | ||||||
4 | the
Department may require or permit such person (subject to | ||||||
5 | the same
requirements concerning the furnishing of security as | ||||||
6 | those that are
provided for hereinbefore in this Section as to | ||||||
7 | each application for a
certificate of registration) to apply | ||||||
8 | for and obtain a separate certificate
of registration for each | ||||||
9 | such business or for any of such businesses, under
a single | ||||||
10 | certificate of registration supplemented by related
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11 | sub-certificates of registration.
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12 | Any person who is registered under the "Retailers' | ||||||
13 | Occupation Tax Act"
as of March 8, 1963, and who, during the | ||||||
14 | 3-year period immediately prior to
March 8, 1963, or during a | ||||||
15 | continuous 3-year period part of which passed
immediately | ||||||
16 | before and the remainder of which passes immediately after
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17 | March 8, 1963, has been so registered continuously and who is | ||||||
18 | determined by
the Department not to have been either delinquent | ||||||
19 | or deficient in the
payment of tax liability during that period | ||||||
20 | under this Act or under any
other State tax law or municipal or | ||||||
21 | county tax ordinance or resolution
under which the certificate | ||||||
22 | of registration that is issued to the
registrant under this Act | ||||||
23 | will permit the registrant to engage in business
without | ||||||
24 | registering separately under such other law, ordinance or
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25 | resolution, shall be considered to be a Prior Continuous | ||||||
26 | Compliance
taxpayer. Also any taxpayer who has, as verified by |
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1 | the Department,
faithfully and continuously complied with the | ||||||
2 | condition of his bond or
other security under the provisions of | ||||||
3 | this Act for a period of 3
consecutive years shall be | ||||||
4 | considered to be a Prior Continuous Compliance
taxpayer.
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5 | Every Prior Continuous Compliance taxpayer shall be exempt | ||||||
6 | from all
requirements under this Act concerning the furnishing | ||||||
7 | of security as a
condition precedent to his being authorized to | ||||||
8 | engage in the business of
selling tangible personal property at | ||||||
9 | retail in this State. This exemption
shall continue for each | ||||||
10 | such taxpayer until such time as he may be
determined by the | ||||||
11 | Department to be delinquent in the filing of any returns,
or is | ||||||
12 | determined by the Department (either through the Department's
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13 | issuance of a final assessment which has become final under the | ||||||
14 | Act, or by
the taxpayer's filing of a return which admits tax | ||||||
15 | that is not paid to be
due) to be delinquent or deficient in | ||||||
16 | the paying of any tax under this Act
or under any other State | ||||||
17 | tax law or municipal or county tax ordinance or
resolution | ||||||
18 | under which the certificate of registration that is issued to
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19 | the registrant under this Act will permit the registrant to | ||||||
20 | engage in
business without registering separately under such | ||||||
21 | other law, ordinance or
resolution, at which time that taxpayer | ||||||
22 | shall become subject to all the
financial responsibility | ||||||
23 | requirements of this Act and, as a condition of
being allowed | ||||||
24 | to continue to engage in the business of selling tangible
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25 | personal property at retail, shall be required to post bond or | ||||||
26 | other
acceptable security with the Department covering |
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1 | liability which such
taxpayer may thereafter incur. Any | ||||||
2 | taxpayer who fails to pay an admitted or
established liability | ||||||
3 | under this Act may also be required to post bond or
other | ||||||
4 | acceptable security with this Department guaranteeing the | ||||||
5 | payment of
such admitted or established liability.
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6 | No certificate of registration shall be issued to any | ||||||
7 | person who is in
default to the State of Illinois for moneys | ||||||
8 | due under this Act or under any
other State tax law or | ||||||
9 | municipal or county tax ordinance or resolution
under which the | ||||||
10 | certificate of registration that is issued to the applicant
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11 | under this Act will permit the applicant to engage in business | ||||||
12 | without
registering separately under such other law, ordinance | ||||||
13 | or resolution.
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14 | Any person aggrieved by any decision of the Department | ||||||
15 | under this
Section may, within 20 days after notice of such | ||||||
16 | decision, protest and
request a hearing, whereupon the | ||||||
17 | Department shall give notice to such
person of the time and | ||||||
18 | place fixed for such hearing and shall hold a
hearing in | ||||||
19 | conformity with the provisions of this Act and then issue its
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20 | final administrative decision in the matter to such person. In | ||||||
21 | the absence
of such a protest within 20 days, the Department's | ||||||
22 | decision shall become
final without any further determination | ||||||
23 | being made or notice given.
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24 | With respect to security other than bonds (upon which the | ||||||
25 | Department may
sue in the event of a forfeiture), if the | ||||||
26 | taxpayer fails to pay, when due,
any amount whose payment such |
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1 | security guarantees, the Department shall,
after such | ||||||
2 | liability is admitted by the taxpayer or established by the
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3 | Department through the issuance of a final assessment that has | ||||||
4 | become final
under the law, convert the security which that | ||||||
5 | taxpayer has furnished into
money for the State, after first | ||||||
6 | giving the taxpayer at least 10 days'
written notice, by | ||||||
7 | registered or certified mail, to pay the liability or
forfeit | ||||||
8 | such security to the Department. If the security consists of | ||||||
9 | stocks
or bonds or other securities which are listed on a | ||||||
10 | public exchange, the
Department shall sell such securities | ||||||
11 | through such public exchange. If
the security consists of an | ||||||
12 | irrevocable bank letter of credit, the
Department shall convert | ||||||
13 | the security in the manner provided for in the
Uniform | ||||||
14 | Commercial Code. If the security consists of a bank certificate | ||||||
15 | of
deposit, the Department shall convert the security into | ||||||
16 | money by demanding
and collecting the amount of such bank | ||||||
17 | certificate of deposit from the bank
which issued such | ||||||
18 | certificate. If the security consists of a type of stocks
or | ||||||
19 | other securities which are not listed on a public exchange, the
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20 | Department shall sell such security to the highest and best | ||||||
21 | bidder after
giving at least 10 days' notice of the date, time | ||||||
22 | and place of the intended
sale by publication in the "State | ||||||
23 | Official Newspaper". If the Department
realizes more than the | ||||||
24 | amount of such liability from the security, plus the
expenses | ||||||
25 | incurred by the Department in converting the security into | ||||||
26 | money,
the Department shall pay such excess to the taxpayer who |
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1 | furnished such
security, and the balance shall be paid into the | ||||||
2 | State Treasury.
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3 | The Department shall discharge any surety and shall release | ||||||
4 | and return
any security deposited, assigned, pledged or | ||||||
5 | otherwise provided to it by
a taxpayer under this Section | ||||||
6 | within 30 days after:
| ||||||
7 | (1) such taxpayer becomes a Prior Continuous | ||||||
8 | Compliance taxpayer; or
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9 | (2) such taxpayer has ceased to collect receipts on | ||||||
10 | which he is required
to remit tax to the Department, has | ||||||
11 | filed a final tax return, and has paid
to the Department an | ||||||
12 | amount sufficient to discharge his remaining tax
| ||||||
13 | liability, as determined by the Department, under this Act | ||||||
14 | and under every
other State tax law or municipal or county | ||||||
15 | tax ordinance or resolution
under which the certificate of | ||||||
16 | registration issued under this Act permits
the registrant | ||||||
17 | to engage in business without registering separately under
| ||||||
18 | such other law, ordinance or resolution. The Department | ||||||
19 | shall make a final
determination of the taxpayer's | ||||||
20 | outstanding tax liability as expeditiously
as possible | ||||||
21 | after his final tax return has been filed; if the | ||||||
22 | Department
cannot make such final determination within 45 | ||||||
23 | days after receiving the
final tax return, within such | ||||||
24 | period it shall so notify the taxpayer,
stating its reasons | ||||||
25 | therefor.
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26 | (Source: P.A. 90-491, eff. 1-1-98; 91-357, eff. 7-29-99.)
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1 | Section 99. Effective date. This Act takes effect upon | ||||||
2 | becoming law.
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