96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB3831

 

Introduced 2/25/2009, by Rep. Frank J. Mautino

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 2505/2505-255 new
30 ILCS 210/9 new
35 ILCS 5/303   from Ch. 120, par. 3-303
35 ILCS 5/304   from Ch. 120, par. 3-304
35 ILCS 5/605   from Ch. 120, par. 6-605
35 ILCS 5/701   from Ch. 120, par. 7-701
35 ILCS 5/710   from Ch. 120, par. 7-710
35 ILCS 120/5   from Ch. 120, par. 444
35 ILCS 120/5f   from Ch. 120, par. 444f
625 ILCS 5/2-123   from Ch. 95 1/2, par. 2-123

    Amends the Illinois State Collection Act of 1986. Provides that, in the case of any liability referred to a collection agency, any fee charged to the State by the collection agency is considered an additional liability owed to the State. Amends the Department of Revenue Law of the Civil Administrative Code of Illinois and the Illinois Income Tax Act to authorize the Department of Revenue to adopt rules and regulations for payments by credit card. Amends the Illinois Income Tax Act. Provides that certain lottery and gambling winnings are allocable to the State. Makes other changes. Amends the Retailers' Occupation Tax Act. Makes changes concerning actions by the Department to recover unpaid taxes, penalties, and interest. Amends the Illinois Vehicle Code. Authorizes the Secretary of State to disclose or otherwise make available to the Department of Revenue social security numbers for use by the Department in the administration of any tax administered by the Department of Revenue or in the collection of any tax or debt that the Department of Revenue is authorized or required by law to collect. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning revenue.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Department of Revenue Law of the Civil
5 Administrative Code of Illinois is amended by adding Section
6 2505-255 as follows:
 
7     (20 ILCS 2505/2505-255 new)
8     Sec. 2505-255. Payment by credit card. The Department may
9 adopt rules and regulations for payment by credit card of any
10 amount due under any Act administered by the Department
11 provided that, prior to December 31, 2009, the Department may
12 accept payment by credit card only when the Department is not
13 required to pay a discount fee charged by the credit card
14 issuer.
 
15     Section 10. The Illinois State Collection Act of 1986 is
16 amended by adding Section 9 as follows:
 
17     (30 ILCS 210/9 new)
18     Sec. 9. Collection agency fees. Except where prohibited by
19 federal law or regulation, in the case of any liability
20 referred to a collection agency on or after July 1, 2009, any
21 fee charged to the State by the collection agency is considered

 

 

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1 an additional liability owed to the State, is immediately
2 subject to all collection procedures applicable to the
3 liability referred to the collection agency, and must be
4 separately stated in any statement or notice of the liability
5 issued by the collection agency to the taxpayer.
 
6     Section 15. The Illinois Income Tax Act is amended by
7 changing Sections 303, 304, 605, 701, and 710 as follows:
 
8     (35 ILCS 5/303)  (from Ch. 120, par. 3-303)
9     Sec. 303. (a) In general. Any item of capital gain or loss,
10 and any item of income from rents or royalties from real or
11 tangible personal property, interest, dividends, and patent or
12 copyright royalties, and prizes awarded under the Illinois
13 Lottery Law, and, for taxable years ending on or after December
14 31, 2009, wagering and gambling winnings from Illinois sources
15 as set forth in subsection (e), to the extent such item
16 constitutes nonbusiness income, together with any item of
17 deduction directly allocable thereto, shall be allocated by any
18 person other than a resident as provided in this Section.
19     (b) Capital gains and losses. (1) Real property. Capital
20 gains and losses from sales or exchanges of real property are
21 allocable to this State if the property is located in this
22 State.
23     (2) Tangible personal property. Capital gains and losses
24 from sales or exchanges of tangible personal property are

 

 

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1 allocable to this State if, at the time of such sale or
2 exchange:
3     (A) The property had its situs in this State; or
4     (B) The taxpayer had its commercial domicile in this State
5 and was not taxable in the state in which the property had its
6 situs.
7     (3) Intangibles. Capital gains and losses from sales or
8 exchanges of intangible personal property are allocable to this
9 State if the taxpayer had its commercial domicile in this State
10 at the time of such sale or exchange.
11     (c) Rents and royalties. (1) Real property. Rents and
12 royalties from real property are allocable to this State if the
13 property is located in this State.
14     (2) Tangible personal property. Rents and royalties from
15 tangible personal property are allocable to this State:
16     (A) If and to the extent that the property is utilized in
17 this State; or
18     (B) In their entirety if, at the time such rents or
19 royalties were paid or accrued, the taxpayer had its commercial
20 domicile in this State and was not organized under the laws of
21 or taxable with respect to such rents or royalties in the state
22 in which the property was utilized. The extent of utilization
23 of tangible personal property in a state is determined by
24 multiplying the rents or royalties derived from such property
25 by a fraction, the numerator of which is the number of days of
26 physical location of the property in the state during the

 

 

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1 rental or royalty period in the taxable year and the
2 denominator of which is the number of days of physical location
3 of the property everywhere during all rental or royalty periods
4 in the taxable year. If the physical location of the property
5 during the rental or royalty period is unknown or
6 unascertainable by the taxpayer, tangible personal property is
7 utilized in the state in which the property was located at the
8 time the rental or royalty payer obtained possession.
9     (d) Patent and copyright royalties.
10     (1) Allocation. Patent and copyright royalties are
11 allocable to this State:
12     (A) If and to the extent that the patent or copyright is
13 utilized by the payer in this State; or
14     (B) If and to the extent that the patent or copyright is
15 utilized by the payer in a state in which the taxpayer is not
16 taxable with respect to such royalties and, at the time such
17 royalties were paid or accrued, the taxpayer had its commercial
18 domicile in this State.
19     (2) Utilization.
20     (A) A patent is utilized in a state to the extent that it
21 is employed in production, fabrication, manufacturing or other
22 processing in the state or to the extent that a patented
23 product is produced in the state. If the basis of receipts from
24 patent royalties does not permit allocation to states or if the
25 accounting procedures do not reflect states of utilization, the
26 patent is utilized in this State if the taxpayer has its

 

 

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1 commercial domicile in this State.
2     (B) A copyright is utilized in a state to the extent that
3 printing or other publication originates in the state. If the
4 basis of receipts from copyright royalties does not permit
5 allocation to states or if the accounting procedures do not
6 reflect states of utilization, the copyright is utilized in
7 this State if the taxpayer has its commercial domicile in this
8 State.
9     (e) Illinois lottery; wagering and gambling winnings
10 prizes. Prizes awarded under the Illinois Lottery Law "Illinois
11 Lottery Law", approved December 14, 1973, are allocable to this
12 State. Payments received in taxable years ending on or after
13 December 31, 2009 from (i) the assignment of a prize under
14 Section 13.1 of the Illinois Lottery Law, (ii) payments of
15 winnings from pari-mutuel wagering conducted at a wagering
16 facility licensed under the Illinois Horse Racing Act of 1975,
17 and (iii) gambling games conducted on a riverboat licensed
18 under the Riverboat Gambling Act are allocable to this State.
19     (f) Taxability in other state. For purposes of allocation
20 of income pursuant to this Section, a taxpayer is taxable in
21 another state if:
22     (1) In that state he is subject to a net income tax, a
23 franchise tax measured by net income, a franchise tax for the
24 privilege of doing business, or a corporate stock tax; or
25     (2) That state has jurisdiction to subject the taxpayer to
26 a net income tax regardless of whether, in fact, the state does

 

 

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1 or does not.
2     (g) Cross references. (1) For allocation of interest and
3 dividends by persons other than residents, see Section
4 301(c)(2).
5     (2) For allocation of nonbusiness income by residents, see
6 Section 301(a).
7 (Source: P.A. 79-743.)
 
8     (35 ILCS 5/304)  (from Ch. 120, par. 3-304)
9     Sec. 304. Business income of persons other than residents.
10     (a) In general. The business income of a person other than
11 a resident shall be allocated to this State if such person's
12 business income is derived solely from this State. If a person
13 other than a resident derives business income from this State
14 and one or more other states, then, for tax years ending on or
15 before December 30, 1998, and except as otherwise provided by
16 this Section, such person's business income shall be
17 apportioned to this State by multiplying the income by a
18 fraction, the numerator of which is the sum of the property
19 factor (if any), the payroll factor (if any) and 200% of the
20 sales factor (if any), and the denominator of which is 4
21 reduced by the number of factors other than the sales factor
22 which have a denominator of zero and by an additional 2 if the
23 sales factor has a denominator of zero. For tax years ending on
24 or after December 31, 1998, and except as otherwise provided by
25 this Section, persons other than residents who derive business

 

 

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1 income from this State and one or more other states shall
2 compute their apportionment factor by weighting their
3 property, payroll, and sales factors as provided in subsection
4 (h) of this Section.
5     (1) Property factor.
6         (A) The property factor is a fraction, the numerator of
7     which is the average value of the person's real and
8     tangible personal property owned or rented and used in the
9     trade or business in this State during the taxable year and
10     the denominator of which is the average value of all the
11     person's real and tangible personal property owned or
12     rented and used in the trade or business during the taxable
13     year.
14         (B) Property owned by the person is valued at its
15     original cost. Property rented by the person is valued at 8
16     times the net annual rental rate. Net annual rental rate is
17     the annual rental rate paid by the person less any annual
18     rental rate received by the person from sub-rentals.
19         (C) The average value of property shall be determined
20     by averaging the values at the beginning and ending of the
21     taxable year but the Director may require the averaging of
22     monthly values during the taxable year if reasonably
23     required to reflect properly the average value of the
24     person's property.
25     (2) Payroll factor.
26         (A) The payroll factor is a fraction, the numerator of

 

 

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1     which is the total amount paid in this State during the
2     taxable year by the person for compensation, and the
3     denominator of which is the total compensation paid
4     everywhere during the taxable year.
5         (B) Compensation is paid in this State if:
6             (i) The individual's service is performed entirely
7         within this State;
8             (ii) The individual's service is performed both
9         within and without this State, but the service
10         performed without this State is incidental to the
11         individual's service performed within this State; or
12             (iii) Some of the service is performed within this
13         State and either the base of operations, or if there is
14         no base of operations, the place from which the service
15         is directed or controlled is within this State, or the
16         base of operations or the place from which the service
17         is directed or controlled is not in any state in which
18         some part of the service is performed, but the
19         individual's residence is in this State.
20             (iv) Compensation paid to nonresident professional
21         athletes.
22             (a) General. The Illinois source income of a
23         nonresident individual who is a member of a
24         professional athletic team includes the portion of the
25         individual's total compensation for services performed
26         as a member of a professional athletic team during the

 

 

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1         taxable year which the number of duty days spent within
2         this State performing services for the team in any
3         manner during the taxable year bears to the total
4         number of duty days spent both within and without this
5         State during the taxable year.
6             (b) Travel days. Travel days that do not involve
7         either a game, practice, team meeting, or other similar
8         team event are not considered duty days spent in this
9         State. However, such travel days are considered in the
10         total duty days spent both within and without this
11         State.
12             (c) Definitions. For purposes of this subpart
13         (iv):
14                 (1) The term "professional athletic team"
15             includes, but is not limited to, any professional
16             baseball, basketball, football, soccer, or hockey
17             team.
18                 (2) The term "member of a professional
19             athletic team" includes those employees who are
20             active players, players on the disabled list, and
21             any other persons required to travel and who travel
22             with and perform services on behalf of a
23             professional athletic team on a regular basis.
24             This includes, but is not limited to, coaches,
25             managers, and trainers.
26                 (3) Except as provided in items (C) and (D) of

 

 

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1             this subpart (3), the term "duty days" means all
2             days during the taxable year from the beginning of
3             the professional athletic team's official
4             pre-season training period through the last game
5             in which the team competes or is scheduled to
6             compete. Duty days shall be counted for the year in
7             which they occur, including where a team's
8             official pre-season training period through the
9             last game in which the team competes or is
10             scheduled to compete, occurs during more than one
11             tax year.
12                     (A) Duty days shall also include days on
13                 which a member of a professional athletic team
14                 performs service for a team on a date that does
15                 not fall within the foregoing period (e.g.,
16                 participation in instructional leagues, the
17                 "All Star Game", or promotional "caravans").
18                 Performing a service for a professional
19                 athletic team includes conducting training and
20                 rehabilitation activities, when such
21                 activities are conducted at team facilities.
22                     (B) Also included in duty days are game
23                 days, practice days, days spent at team
24                 meetings, promotional caravans, preseason
25                 training camps, and days served with the team
26                 through all post-season games in which the team

 

 

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1                 competes or is scheduled to compete.
2                     (C) Duty days for any person who joins a
3                 team during the period from the beginning of
4                 the professional athletic team's official
5                 pre-season training period through the last
6                 game in which the team competes, or is
7                 scheduled to compete, shall begin on the day
8                 that person joins the team. Conversely, duty
9                 days for any person who leaves a team during
10                 this period shall end on the day that person
11                 leaves the team. Where a person switches teams
12                 during a taxable year, a separate duty-day
13                 calculation shall be made for the period the
14                 person was with each team.
15                     (D) Days for which a member of a
16                 professional athletic team is not compensated
17                 and is not performing services for the team in
18                 any manner, including days when such member of
19                 a professional athletic team has been
20                 suspended without pay and prohibited from
21                 performing any services for the team, shall not
22                 be treated as duty days.
23                     (E) Days for which a member of a
24                 professional athletic team is on the disabled
25                 list and does not conduct rehabilitation
26                 activities at facilities of the team, and is

 

 

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1                 not otherwise performing services for the team
2                 in Illinois, shall not be considered duty days
3                 spent in this State. All days on the disabled
4                 list, however, are considered to be included in
5                 total duty days spent both within and without
6                 this State.
7                 (4) The term "total compensation for services
8             performed as a member of a professional athletic
9             team" means the total compensation received during
10             the taxable year for services performed:
11                     (A) from the beginning of the official
12                 pre-season training period through the last
13                 game in which the team competes or is scheduled
14                 to compete during that taxable year; and
15                     (B) during the taxable year on a date which
16                 does not fall within the foregoing period
17                 (e.g., participation in instructional leagues,
18                 the "All Star Game", or promotional caravans).
19                 This compensation shall include, but is not
20             limited to, salaries, wages, bonuses as described
21             in this subpart, and any other type of compensation
22             paid during the taxable year to a member of a
23             professional athletic team for services performed
24             in that year. This compensation does not include
25             strike benefits, severance pay, termination pay,
26             contract or option year buy-out payments,

 

 

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1             expansion or relocation payments, or any other
2             payments not related to services performed for the
3             team.
4                 For purposes of this subparagraph, "bonuses"
5             included in "total compensation for services
6             performed as a member of a professional athletic
7             team" subject to the allocation described in
8             Section 302(c)(1) are: bonuses earned as a result
9             of play (i.e., performance bonuses) during the
10             season, including bonuses paid for championship,
11             playoff or "bowl" games played by a team, or for
12             selection to all-star league or other honorary
13             positions; and bonuses paid for signing a
14             contract, unless the payment of the signing bonus
15             is not conditional upon the signee playing any
16             games for the team or performing any subsequent
17             services for the team or even making the team, the
18             signing bonus is payable separately from the
19             salary and any other compensation, and the signing
20             bonus is nonrefundable.
21     (3) Sales factor.
22         (A) The sales factor is a fraction, the numerator of
23     which is the total sales of the person in this State during
24     the taxable year, and the denominator of which is the total
25     sales of the person everywhere during the taxable year.
26         (B) Sales of tangible personal property are in this

 

 

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1     State if:
2             (i) The property is delivered or shipped to a
3         purchaser, other than the United States government,
4         within this State regardless of the f. o. b. point or
5         other conditions of the sale; or
6             (ii) The property is shipped from an office, store,
7         warehouse, factory or other place of storage in this
8         State and either the purchaser is the United States
9         government or the person is not taxable in the state of
10         the purchaser; provided, however, that premises owned
11         or leased by a person who has independently contracted
12         with the seller for the printing of newspapers,
13         periodicals or books shall not be deemed to be an
14         office, store, warehouse, factory or other place of
15         storage for purposes of this Section. Sales of tangible
16         personal property are not in this State if the seller
17         and purchaser would be members of the same unitary
18         business group but for the fact that either the seller
19         or purchaser is a person with 80% or more of total
20         business activity outside of the United States and the
21         property is purchased for resale.
22         (B-1) Patents, copyrights, trademarks, and similar
23     items of intangible personal property.
24             (i) Gross receipts from the licensing, sale, or
25         other disposition of a patent, copyright, trademark,
26         or similar item of intangible personal property are in

 

 

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1         this State to the extent the item is utilized in this
2         State during the year the gross receipts are included
3         in gross income.
4             (ii) Place of utilization.
5                 (I) A patent is utilized in a state to the
6             extent that it is employed in production,
7             fabrication, manufacturing, or other processing in
8             the state or to the extent that a patented product
9             is produced in the state. If a patent is utilized
10             in more than one state, the extent to which it is
11             utilized in any one state shall be a fraction equal
12             to the gross receipts of the licensee or purchaser
13             from sales or leases of items produced,
14             fabricated, manufactured, or processed within that
15             state using the patent and of patented items
16             produced within that state, divided by the total of
17             such gross receipts for all states in which the
18             patent is utilized.
19                 (II) A copyright is utilized in a state to the
20             extent that printing or other publication
21             originates in the state. If a copyright is utilized
22             in more than one state, the extent to which it is
23             utilized in any one state shall be a fraction equal
24             to the gross receipts from sales or licenses of
25             materials printed or published in that state
26             divided by the total of such gross receipts for all

 

 

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1             states in which the copyright is utilized.
2                 (III) Trademarks and other items of intangible
3             personal property governed by this paragraph (B-1)
4             are utilized in the state in which the commercial
5             domicile of the licensee or purchaser is located.
6             (iii) If the state of utilization of an item of
7         property governed by this paragraph (B-1) cannot be
8         determined from the taxpayer's books and records or
9         from the books and records of any person related to the
10         taxpayer within the meaning of Section 267(b) of the
11         Internal Revenue Code, 26 U.S.C. 267, the gross
12         receipts attributable to that item shall be excluded
13         from both the numerator and the denominator of the
14         sales factor.
15         (B-2) Gross receipts from the license, sale, or other
16     disposition of patents, copyrights, trademarks, and
17     similar items of intangible personal property may be
18     included in the numerator or denominator of the sales
19     factor only if gross receipts from licenses, sales, or
20     other disposition of such items comprise more than 50% of
21     the taxpayer's total gross receipts included in gross
22     income during the tax year and during each of the 2
23     immediately preceding tax years; provided that, when a
24     taxpayer is a member of a unitary business group, such
25     determination shall be made on the basis of the gross
26     receipts of the entire unitary business group.

 

 

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1         (B-5) For taxable years ending on or after December 31,
2     2008, except as provided in subsections (ii) through (vii),
3     receipts from the sale of telecommunications service or
4     mobile telecommunications service are in this State if the
5     customer's service address is in this State.
6             (i) For purposes of this subparagraph (B-5), the
7         follow terms have the following meanings:
8             "Ancillary services" means services that are
9         associated with or incidental to the provision of
10         "telecommunications services", including but not
11         limited to "detailed telecommunications billing",
12         "directory assistance", "vertical service", and "voice
13         mail services".
14             "Air-to-Ground Radiotelephone service" means a
15         radio service, as that term is defined in 47 CFR 22.99,
16         in which common carriers are authorized to offer and
17         provide radio telecommunications service for hire to
18         subscribers in aircraft.
19             "Call-by-call Basis" means any method of charging
20         for telecommunications services where the price is
21         measured by individual calls.
22             "Communications Channel" means a physical or
23         virtual path of communications over which signals are
24         transmitted between or among customer channel
25         termination points.
26             "Conference bridging service" means an "ancillary

 

 

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1         service" that links two or more participants of an
2         audio or video conference call and may include the
3         provision of a telephone number. "Conference bridging
4         service" does not include the "telecommunications
5         services" used to reach the conference bridge.
6             "Customer Channel Termination Point" means the
7         location where the customer either inputs or receives
8         the communications.
9             "Detailed telecommunications billing service"
10         means an "ancillary service" of separately stating
11         information pertaining to individual calls on a
12         customer's billing statement.
13             "Directory assistance" means an "ancillary
14         service" of providing telephone number information,
15         and/or address information.
16             "Home service provider" means the facilities based
17         carrier or reseller with which the customer contracts
18         for the provision of mobile telecommunications
19         services.
20             "Mobile telecommunications service" means
21         commercial mobile radio service, as defined in Section
22         20.3 of Title 47 of the Code of Federal Regulations as
23         in effect on June 1, 1999.
24             "Place of primary use" means the street address
25         representative of where the customer's use of the
26         telecommunications service primarily occurs, which

 

 

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1         must be the residential street address or the primary
2         business street address of the customer. In the case of
3         mobile telecommunications services, "place of primary
4         use" must be within the licensed service area of the
5         home service provider.
6             "Post-paid telecommunication service" means the
7         telecommunications service obtained by making a
8         payment on a call-by-call basis either through the use
9         of a credit card or payment mechanism such as a bank
10         card, travel card, credit card, or debit card, or by
11         charge made to a telephone number which is not
12         associated with the origination or termination of the
13         telecommunications service. A post-paid calling
14         service includes telecommunications service, except a
15         prepaid wireless calling service, that would be a
16         prepaid calling service except it is not exclusively a
17         telecommunication service.
18             "Prepaid telecommunication service" means the
19         right to access exclusively telecommunications
20         services, which must be paid for in advance and which
21         enables the origination of calls using an access number
22         or authorization code, whether manually or
23         electronically dialed, and that is sold in
24         predetermined units or dollars of which the number
25         declines with use in a known amount.
26             "Prepaid Mobile telecommunication service" means a

 

 

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1         telecommunications service that provides the right to
2         utilize mobile wireless service as well as other
3         non-telecommunication services, including but not
4         limited to ancillary services, which must be paid for
5         in advance that is sold in predetermined units or
6         dollars of which the number declines with use in a
7         known amount.
8             "Private communication service" means a
9         telecommunication service that entitles the customer
10         to exclusive or priority use of a communications
11         channel or group of channels between or among
12         termination points, regardless of the manner in which
13         such channel or channels are connected, and includes
14         switching capacity, extension lines, stations, and any
15         other associated services that are provided in
16         connection with the use of such channel or channels.
17             "Service address" means:
18                 (a) The location of the telecommunications
19             equipment to which a customer's call is charged and
20             from which the call originates or terminates,
21             regardless of where the call is billed or paid;
22                 (b) If the location in line (a) is not known,
23             service address means the origination point of the
24             signal of the telecommunications services first
25             identified by either the seller's
26             telecommunications system or in information

 

 

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1             received by the seller from its service provider
2             where the system used to transport such signals is
3             not that of the seller; and
4                 (c) If the locations in line (a) and line (b)
5             are not known, the service address means the
6             location of the customer's place of primary use.
7             "Telecommunications service" means the electronic
8         transmission, conveyance, or routing of voice, data,
9         audio, video, or any other information or signals to a
10         point, or between or among points. The term
11         "telecommunications service" includes such
12         transmission, conveyance, or routing in which computer
13         processing applications are used to act on the form,
14         code or protocol of the content for purposes of
15         transmission, conveyance or routing without regard to
16         whether such service is referred to as voice over
17         Internet protocol services or is classified by the
18         Federal Communications Commission as enhanced or value
19         added. "Telecommunications service" does not include:
20                 (a) Data processing and information services
21             that allow data to be generated, acquired, stored,
22             processed, or retrieved and delivered by an
23             electronic transmission to a purchaser when such
24             purchaser's primary purpose for the underlying
25             transaction is the processed data or information;
26                 (b) Installation or maintenance of wiring or

 

 

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1             equipment on a customer's premises;
2                 (c) Tangible personal property;
3                 (d) Advertising, including but not limited to
4             directory advertising.
5                 (e) Billing and collection services provided
6             to third parties;
7                 (f) Internet access service;
8                 (g) Radio and television audio and video
9             programming services, regardless of the medium,
10             including the furnishing of transmission,
11             conveyance and routing of such services by the
12             programming service provider. Radio and television
13             audio and video programming services shall include
14             but not be limited to cable service as defined in
15             47 USC 522(6) and audio and video programming
16             services delivered by commercial mobile radio
17             service providers, as defined in 47 CFR 20.3;
18                 (h) "Ancillary services"; or
19                 (i) Digital products "delivered
20             electronically", including but not limited to
21             software, music, video, reading materials or ring
22             tones.
23             "Vertical service" means an "ancillary service"
24         that is offered in connection with one or more
25         "telecommunications services", which offers advanced
26         calling features that allow customers to identify

 

 

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1         callers and to manage multiple calls and call
2         connections, including "conference bridging services".
3             "Voice mail service" means an "ancillary service"
4         that enables the customer to store, send or receive
5         recorded messages. "Voice mail service" does not
6         include any "vertical services" that the customer may
7         be required to have in order to utilize the "voice mail
8         service".
9             (ii) Receipts from the sale of telecommunications
10         service sold on an individual call-by-call basis are in
11         this State if either of the following applies:
12                 (a) The call both originates and terminates in
13             this State.
14                 (b) The call either originates or terminates
15             in this State and the service address is located in
16             this State.
17             (iii) Receipts from the sale of postpaid
18         telecommunications service at retail are in this State
19         if the origination point of the telecommunication
20         signal, as first identified by the service provider's
21         telecommunication system or as identified by
22         information received by the seller from its service
23         provider if the system used to transport
24         telecommunication signals is not the seller's, is
25         located in this State.
26             (iv) Receipts from the sale of prepaid

 

 

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1         telecommunications service or prepaid mobile
2         telecommunications service at retail are in this State
3         if the purchaser obtains the prepaid card or similar
4         means of conveyance at a location in this State.
5         Receipts from recharging a prepaid telecommunications
6         service or mobile telecommunications service is in
7         this State if the purchaser's billing information
8         indicates a location in this State.
9             (v) Receipts from the sale of private
10         communication services are in this State as follows:
11                 (a) 100% of receipts from charges imposed at
12             each channel termination point in this State.
13                 (b) 100% of receipts from charges for the total
14             channel mileage between each channel termination
15             point in this State.
16                 (c) 50% of the total receipts from charges for
17             service segments when those segments are between 2
18             customer channel termination points, 1 of which is
19             located in this State and the other is located
20             outside of this State, which segments are
21             separately charged.
22                 (d) The receipts from charges for service
23             segments with a channel termination point located
24             in this State and in two or more other states, and
25             which segments are not separately billed, are in
26             this State based on a percentage determined by

 

 

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1             dividing the number of customer channel
2             termination points in this State by the total
3             number of customer channel termination points.
4             (vi) Receipts from charges for ancillary services
5         for telecommunications service sold to customers at
6         retail are in this State if the customer's primary
7         place of use of telecommunications services associated
8         with those ancillary services is in this State. If the
9         seller of those ancillary services cannot determine
10         where the associated telecommunications are located,
11         then the ancillary services shall be based on the
12         location of the purchaser.
13             (vii) Receipts to access a carrier's network or
14         from the sale of telecommunication services or
15         ancillary services for resale are in this State as
16         follows:
17                 (a) 100% of the receipts from access fees
18             attributable to intrastate telecommunications
19             service that both originates and terminates in
20             this State.
21                 (b) 50% of the receipts from access fees
22             attributable to interstate telecommunications
23             service if the interstate call either originates
24             or terminates in this State.
25                 (c) 100% of the receipts from interstate end
26             user access line charges, if the customer's

 

 

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1             service address is in this State. As used in this
2             subdivision, "interstate end user access line
3             charges" includes, but is not limited to, the
4             surcharge approved by the federal communications
5             commission and levied pursuant to 47 CFR 69.
6                 (d) Gross receipts from sales of
7             telecommunication services or from ancillary
8             services for telecommunications services sold to
9             other telecommunication service providers for
10             resale shall be sourced to this State using the
11             apportionment concepts used for non-resale
12             receipts of telecommunications services if the
13             information is readily available to make that
14             determination. If the information is not readily
15             available, then the taxpayer may use any other
16             reasonable and consistent method.
17         (B-10) Gross receipts from winnings under the Illinois
18     Lottery Law, from the assignment of a prize under Section
19     13.1 of the Illinois Lottery Law, from winnings from
20     pari-mutuel wagering conducted at a wagering facility
21     licensed under the Illinois Horse Racing Act of 1975, and
22     from winnings from gambling games conducted on a riverboat
23     licensed under the Riverboat Gambling Act are in this
24     State. This paragraph (B-10) applies only to taxable years
25     ending on or after December 31, 2009.
26         (C) For taxable years ending before December 31, 2008,

 

 

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1     sales, other than sales governed by paragraphs (B), (B-1),
2     and (B-2), are in this State if:
3             (i) The income-producing activity is performed in
4         this State; or
5             (ii) The income-producing activity is performed
6         both within and without this State and a greater
7         proportion of the income-producing activity is
8         performed within this State than without this State,
9         based on performance costs.
10         (C-5) For taxable years ending on or after December 31,
11     2008, sales, other than sales governed by paragraphs (B),
12     (B-1), (B-2), and (B-5), and (B-10) are in this State if
13     any of the following criteria are met:
14             (i) Sales from the sale or lease of real property
15         are in this State if the property is located in this
16         State.
17             (ii) Sales from the lease or rental of tangible
18         personal property are in this State if the property is
19         located in this State during the rental period. Sales
20         from the lease or rental of tangible personal property
21         that is characteristically moving property, including,
22         but not limited to, motor vehicles, rolling stock,
23         aircraft, vessels, or mobile equipment are in this
24         State to the extent that the property is used in this
25         State.
26             (iii) In the case of interest, net gains (but not

 

 

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1         less than zero) and other items of income from
2         intangible personal property, the sale is in this State
3         if:
4                 (a) in the case of a taxpayer who is a dealer
5             in the item of intangible personal property within
6             the meaning of Section 475 of the Internal Revenue
7             Code, the income or gain is received from a
8             customer in this State. For purposes of this
9             subparagraph, a customer is in this State if the
10             customer is an individual, trust or estate who is a
11             resident of this State and, for all other
12             customers, if the customer's commercial domicile
13             is in this State. Unless the dealer has actual
14             knowledge of the residence or commercial domicile
15             of a customer during a taxable year, the customer
16             shall be deemed to be a customer in this State if
17             the billing address of the customer, as shown in
18             the records of the dealer, is in this State; or
19                 (b) in all other cases, if the
20             income-producing activity of the taxpayer is
21             performed in this State or, if the
22             income-producing activity of the taxpayer is
23             performed both within and without this State, if a
24             greater proportion of the income-producing
25             activity of the taxpayer is performed within this
26             State than in any other state, based on performance

 

 

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1             costs.
2             (iv) Sales of services are in this State if the
3         services are received in this State. For the purposes
4         of this section, gross receipts from the performance of
5         services provided to a corporation, partnership, or
6         trust may only be attributed to a state where that
7         corporation, partnership, or trust has a fixed place of
8         business. If the state where the services are received
9         is not readily determinable or is a state where the
10         corporation, partnership, or trust receiving the
11         service does not have a fixed place of business, the
12         services shall be deemed to be received at the location
13         of the office of the customer from which the services
14         were ordered in the regular course of the customer's
15         trade or business. If the ordering office cannot be
16         determined, the services shall be deemed to be received
17         at the office of the customer to which the services are
18         billed. If the taxpayer is not taxable in the state in
19         which the services are received, the sale must be
20         excluded from both the numerator and the denominator of
21         the sales factor. The Department shall adopt rules
22         prescribing where specific types of service are
23         received, including, but not limited to, broadcast,
24         cable, advertising, publishing, and utility service.
25         (D) For taxable years ending on or after December 31,
26     1995, the following items of income shall not be included

 

 

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1     in the numerator or denominator of the sales factor:
2     dividends; amounts included under Section 78 of the
3     Internal Revenue Code; and Subpart F income as defined in
4     Section 952 of the Internal Revenue Code. No inference
5     shall be drawn from the enactment of this paragraph (D) in
6     construing this Section for taxable years ending before
7     December 31, 1995.
8         (E) Paragraphs (B-1) and (B-2) shall apply to tax years
9     ending on or after December 31, 1999, provided that a
10     taxpayer may elect to apply the provisions of these
11     paragraphs to prior tax years. Such election shall be made
12     in the form and manner prescribed by the Department, shall
13     be irrevocable, and shall apply to all tax years; provided
14     that, if a taxpayer's Illinois income tax liability for any
15     tax year, as assessed under Section 903 prior to January 1,
16     1999, was computed in a manner contrary to the provisions
17     of paragraphs (B-1) or (B-2), no refund shall be payable to
18     the taxpayer for that tax year to the extent such refund is
19     the result of applying the provisions of paragraph (B-1) or
20     (B-2) retroactively. In the case of a unitary business
21     group, such election shall apply to all members of such
22     group for every tax year such group is in existence, but
23     shall not apply to any taxpayer for any period during which
24     that taxpayer is not a member of such group.
25     (b) Insurance companies.
26         (1) In general. Except as otherwise provided by

 

 

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1     paragraph (2), business income of an insurance company for
2     a taxable year shall be apportioned to this State by
3     multiplying such income by a fraction, the numerator of
4     which is the direct premiums written for insurance upon
5     property or risk in this State, and the denominator of
6     which is the direct premiums written for insurance upon
7     property or risk everywhere. For purposes of this
8     subsection, the term "direct premiums written" means the
9     total amount of direct premiums written, assessments and
10     annuity considerations as reported for the taxable year on
11     the annual statement filed by the company with the Illinois
12     Director of Insurance in the form approved by the National
13     Convention of Insurance Commissioners or such other form as
14     may be prescribed in lieu thereof.
15         (2) Reinsurance. If the principal source of premiums
16     written by an insurance company consists of premiums for
17     reinsurance accepted by it, the business income of such
18     company shall be apportioned to this State by multiplying
19     such income by a fraction, the numerator of which is the
20     sum of (i) direct premiums written for insurance upon
21     property or risk in this State, plus (ii) premiums written
22     for reinsurance accepted in respect of property or risk in
23     this State, and the denominator of which is the sum of
24     (iii) direct premiums written for insurance upon property
25     or risk everywhere, plus (iv) premiums written for
26     reinsurance accepted in respect of property or risk

 

 

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1     everywhere. For taxable years ending before December 31,
2     2008, for purposes of this paragraph, premiums written for
3     reinsurance accepted in respect of property or risk in this
4     State, whether or not otherwise determinable, may, at the
5     election of the company, be determined on the basis of the
6     proportion which premiums written for reinsurance accepted
7     from companies commercially domiciled in Illinois bears to
8     premiums written for reinsurance accepted from all
9     sources, or, alternatively, in the proportion which the sum
10     of the direct premiums written for insurance upon property
11     or risk in this State by each ceding company from which
12     reinsurance is accepted bears to the sum of the total
13     direct premiums written by each such ceding company for the
14     taxable year.
15     (c) Financial organizations.
16         (1) In general. For taxable years ending before
17     December 31, 2008, business income of a financial
18     organization shall be apportioned to this State by
19     multiplying such income by a fraction, the numerator of
20     which is its business income from sources within this
21     State, and the denominator of which is its business income
22     from all sources. For the purposes of this subsection, the
23     business income of a financial organization from sources
24     within this State is the sum of the amounts referred to in
25     subparagraphs (A) through (E) following, but excluding the
26     adjusted income of an international banking facility as

 

 

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1     determined in paragraph (2):
2             (A) Fees, commissions or other compensation for
3         financial services rendered within this State;
4             (B) Gross profits from trading in stocks, bonds or
5         other securities managed within this State;
6             (C) Dividends, and interest from Illinois
7         customers, which are received within this State;
8             (D) Interest charged to customers at places of
9         business maintained within this State for carrying
10         debit balances of margin accounts, without deduction
11         of any costs incurred in carrying such accounts; and
12             (E) Any other gross income resulting from the
13         operation as a financial organization within this
14         State. In computing the amounts referred to in
15         paragraphs (A) through (E) of this subsection, any
16         amount received by a member of an affiliated group
17         (determined under Section 1504(a) of the Internal
18         Revenue Code but without reference to whether any such
19         corporation is an "includible corporation" under
20         Section 1504(b) of the Internal Revenue Code) from
21         another member of such group shall be included only to
22         the extent such amount exceeds expenses of the
23         recipient directly related thereto.
24         (2) International Banking Facility. For taxable years
25     ending before December 31, 2008:
26             (A) Adjusted Income. The adjusted income of an

 

 

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1         international banking facility is its income reduced
2         by the amount of the floor amount.
3             (B) Floor Amount. The floor amount shall be the
4         amount, if any, determined by multiplying the income of
5         the international banking facility by a fraction, not
6         greater than one, which is determined as follows:
7                 (i) The numerator shall be:
8                 The average aggregate, determined on a
9             quarterly basis, of the financial organization's
10             loans to banks in foreign countries, to foreign
11             domiciled borrowers (except where secured
12             primarily by real estate) and to foreign
13             governments and other foreign official
14             institutions, as reported for its branches,
15             agencies and offices within the state on its
16             "Consolidated Report of Condition", Schedule A,
17             Lines 2.c., 5.b., and 7.a., which was filed with
18             the Federal Deposit Insurance Corporation and
19             other regulatory authorities, for the year 1980,
20             minus
21                 The average aggregate, determined on a
22             quarterly basis, of such loans (other than loans of
23             an international banking facility), as reported by
24             the financial institution for its branches,
25             agencies and offices within the state, on the
26             corresponding Schedule and lines of the

 

 

HB3831 - 35 - LRB096 11651 HLH 22226 b

1             Consolidated Report of Condition for the current
2             taxable year, provided, however, that in no case
3             shall the amount determined in this clause (the
4             subtrahend) exceed the amount determined in the
5             preceding clause (the minuend); and
6                 (ii) the denominator shall be the average
7             aggregate, determined on a quarterly basis, of the
8             international banking facility's loans to banks in
9             foreign countries, to foreign domiciled borrowers
10             (except where secured primarily by real estate)
11             and to foreign governments and other foreign
12             official institutions, which were recorded in its
13             financial accounts for the current taxable year.
14             (C) Change to Consolidated Report of Condition and
15         in Qualification. In the event the Consolidated Report
16         of Condition which is filed with the Federal Deposit
17         Insurance Corporation and other regulatory authorities
18         is altered so that the information required for
19         determining the floor amount is not found on Schedule
20         A, lines 2.c., 5.b. and 7.a., the financial institution
21         shall notify the Department and the Department may, by
22         regulations or otherwise, prescribe or authorize the
23         use of an alternative source for such information. The
24         financial institution shall also notify the Department
25         should its international banking facility fail to
26         qualify as such, in whole or in part, or should there

 

 

HB3831 - 36 - LRB096 11651 HLH 22226 b

1         be any amendment or change to the Consolidated Report
2         of Condition, as originally filed, to the extent such
3         amendment or change alters the information used in
4         determining the floor amount.
5         (3) For taxable years ending on or after December 31,
6     2008, the business income of a financial organization shall
7     be apportioned to this State by multiplying such income by
8     a fraction, the numerator of which is its gross receipts
9     from sources in this State or otherwise attributable to
10     this State's marketplace and the denominator of which is
11     its gross receipts everywhere during the taxable year.
12     "Gross receipts" for purposes of this subparagraph (3)
13     means gross income, including net taxable gain on
14     disposition of assets, including securities and money
15     market instruments, when derived from transactions and
16     activities in the regular course of the financial
17     organization's trade or business. The following examples
18     are illustrative:
19             (i) Receipts from the lease or rental of real or
20         tangible personal property are in this State if the
21         property is located in this State during the rental
22         period. Receipts from the lease or rental of tangible
23         personal property that is characteristically moving
24         property, including, but not limited to, motor
25         vehicles, rolling stock, aircraft, vessels, or mobile
26         equipment are from sources in this State to the extent

 

 

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1         that the property is used in this State.
2             (ii) Interest income, commissions, fees, gains on
3         disposition, and other receipts from assets in the
4         nature of loans that are secured primarily by real
5         estate or tangible personal property are from sources
6         in this State if the security is located in this State.
7             (iii) Interest income, commissions, fees, gains on
8         disposition, and other receipts from consumer loans
9         that are not secured by real or tangible personal
10         property are from sources in this State if the debtor
11         is a resident of this State.
12             (iv) Interest income, commissions, fees, gains on
13         disposition, and other receipts from commercial loans
14         and installment obligations that are not secured by
15         real or tangible personal property are from sources in
16         this State if the proceeds of the loan are to be
17         applied in this State. If it cannot be determined where
18         the funds are to be applied, the income and receipts
19         are from sources in this State if the office of the
20         borrower from which the loan was negotiated in the
21         regular course of business is located in this State. If
22         the location of this office cannot be determined, the
23         income and receipts shall be excluded from the
24         numerator and denominator of the sales factor.
25             (v) Interest income, fees, gains on disposition,
26         service charges, merchant discount income, and other

 

 

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1         receipts from credit card receivables are from sources
2         in this State if the card charges are regularly billed
3         to a customer in this State.
4             (vi) Receipts from the performance of services,
5         including, but not limited to, fiduciary, advisory,
6         and brokerage services, are in this State if the
7         services are received in this State within the meaning
8         of subparagraph (a)(3)(C-5)(iv) of this Section.
9             (vii) Receipts from the issuance of travelers
10         checks and money orders are from sources in this State
11         if the checks and money orders are issued from a
12         location within this State.
13             (viii) Receipts from investment assets and
14         activities and trading assets and activities are
15         included in the receipts factor as follows:
16                 (1) Interest, dividends, net gains (but not
17             less than zero) and other income from investment
18             assets and activities from trading assets and
19             activities shall be included in the receipts
20             factor. Investment assets and activities and
21             trading assets and activities include but are not
22             limited to: investment securities; trading account
23             assets; federal funds; securities purchased and
24             sold under agreements to resell or repurchase;
25             options; futures contracts; forward contracts;
26             notional principal contracts such as swaps;

 

 

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1             equities; and foreign currency transactions. With
2             respect to the investment and trading assets and
3             activities described in subparagraphs (A) and (B)
4             of this paragraph, the receipts factor shall
5             include the amounts described in such
6             subparagraphs.
7                     (A) The receipts factor shall include the
8                 amount by which interest from federal funds
9                 sold and securities purchased under resale
10                 agreements exceeds interest expense on federal
11                 funds purchased and securities sold under
12                 repurchase agreements.
13                     (B) The receipts factor shall include the
14                 amount by which interest, dividends, gains and
15                 other income from trading assets and
16                 activities, including but not limited to
17                 assets and activities in the matched book, in
18                 the arbitrage book, and foreign currency
19                 transactions, exceed amounts paid in lieu of
20                 interest, amounts paid in lieu of dividends,
21                 and losses from such assets and activities.
22                 (2) The numerator of the receipts factor
23             includes interest, dividends, net gains (but not
24             less than zero), and other income from investment
25             assets and activities and from trading assets and
26             activities described in paragraph (1) of this

 

 

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1             subsection that are attributable to this State.
2                     (A) The amount of interest, dividends, net
3                 gains (but not less than zero), and other
4                 income from investment assets and activities
5                 in the investment account to be attributed to
6                 this State and included in the numerator is
7                 determined by multiplying all such income from
8                 such assets and activities by a fraction, the
9                 numerator of which is the gross income from
10                 such assets and activities which are properly
11                 assigned to a fixed place of business of the
12                 taxpayer within this State and the denominator
13                 of which is the gross income from all such
14                 assets and activities.
15                     (B) The amount of interest from federal
16                 funds sold and purchased and from securities
17                 purchased under resale agreements and
18                 securities sold under repurchase agreements
19                 attributable to this State and included in the
20                 numerator is determined by multiplying the
21                 amount described in subparagraph (A) of
22                 paragraph (1) of this subsection from such
23                 funds and such securities by a fraction, the
24                 numerator of which is the gross income from
25                 such funds and such securities which are
26                 properly assigned to a fixed place of business

 

 

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1                 of the taxpayer within this State and the
2                 denominator of which is the gross income from
3                 all such funds and such securities.
4                     (C) The amount of interest, dividends,
5                 gains, and other income from trading assets and
6                 activities, including but not limited to
7                 assets and activities in the matched book, in
8                 the arbitrage book and foreign currency
9                 transactions (but excluding amounts described
10                 in subparagraphs (A) or (B) of this paragraph),
11                 attributable to this State and included in the
12                 numerator is determined by multiplying the
13                 amount described in subparagraph (B) of
14                 paragraph (1) of this subsection by a fraction,
15                 the numerator of which is the gross income from
16                 such trading assets and activities which are
17                 properly assigned to a fixed place of business
18                 of the taxpayer within this State and the
19                 denominator of which is the gross income from
20                 all such assets and activities.
21                     (D) Properly assigned, for purposes of
22                 this paragraph (2) of this subsection, means
23                 the investment or trading asset or activity is
24                 assigned to the fixed place of business with
25                 which it has a preponderance of substantive
26                 contacts. An investment or trading asset or

 

 

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1                 activity assigned by the taxpayer to a fixed
2                 place of business without the State shall be
3                 presumed to have been properly assigned if:
4                         (i) the taxpayer has assigned, in the
5                     regular course of its business, such asset
6                     or activity on its records to a fixed place
7                     of business consistent with federal or
8                     state regulatory requirements;
9                         (ii) such assignment on its records is
10                     based upon substantive contacts of the
11                     asset or activity to such fixed place of
12                     business; and
13                         (iii) the taxpayer uses such records
14                     reflecting assignment of such assets or
15                     activities for the filing of all state and
16                     local tax returns for which an assignment
17                     of such assets or activities to a fixed
18                     place of business is required.
19                     (E) The presumption of proper assignment
20                 of an investment or trading asset or activity
21                 provided in subparagraph (D) of paragraph (2)
22                 of this subsection may be rebutted upon a
23                 showing by the Department, supported by a
24                 preponderance of the evidence, that the
25                 preponderance of substantive contacts
26                 regarding such asset or activity did not occur

 

 

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1                 at the fixed place of business to which it was
2                 assigned on the taxpayer's records. If the
3                 fixed place of business that has a
4                 preponderance of substantive contacts cannot
5                 be determined for an investment or trading
6                 asset or activity to which the presumption in
7                 subparagraph (D) of paragraph (2) of this
8                 subsection does not apply or with respect to
9                 which that presumption has been rebutted, that
10                 asset or activity is properly assigned to the
11                 state in which the taxpayer's commercial
12                 domicile is located. For purposes of this
13                 subparagraph (E), it shall be presumed,
14                 subject to rebuttal, that taxpayer's
15                 commercial domicile is in the state of the
16                 United States or the District of Columbia to
17                 which the greatest number of employees are
18                 regularly connected with the management of the
19                 investment or trading income or out of which
20                 they are working, irrespective of where the
21                 services of such employees are performed, as of
22                 the last day of the taxable year.
23         (4) (Blank).
24         (5) (Blank).
25     (d) Transportation services. For taxable years ending
26 before December 31, 2008, business income derived from

 

 

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1 furnishing transportation services shall be apportioned to
2 this State in accordance with paragraphs (1) and (2):
3         (1) Such business income (other than that derived from
4     transportation by pipeline) shall be apportioned to this
5     State by multiplying such income by a fraction, the
6     numerator of which is the revenue miles of the person in
7     this State, and the denominator of which is the revenue
8     miles of the person everywhere. For purposes of this
9     paragraph, a revenue mile is the transportation of 1
10     passenger or 1 net ton of freight the distance of 1 mile
11     for a consideration. Where a person is engaged in the
12     transportation of both passengers and freight, the
13     fraction above referred to shall be determined by means of
14     an average of the passenger revenue mile fraction and the
15     freight revenue mile fraction, weighted to reflect the
16     person's
17             (A) relative railway operating income from total
18         passenger and total freight service, as reported to the
19         Interstate Commerce Commission, in the case of
20         transportation by railroad, and
21             (B) relative gross receipts from passenger and
22         freight transportation, in case of transportation
23         other than by railroad.
24         (2) Such business income derived from transportation
25     by pipeline shall be apportioned to this State by
26     multiplying such income by a fraction, the numerator of

 

 

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1     which is the revenue miles of the person in this State, and
2     the denominator of which is the revenue miles of the person
3     everywhere. For the purposes of this paragraph, a revenue
4     mile is the transportation by pipeline of 1 barrel of oil,
5     1,000 cubic feet of gas, or of any specified quantity of
6     any other substance, the distance of 1 mile for a
7     consideration.
8         (3) For taxable years ending on or after December 31,
9     2008, business income derived from providing
10     transportation services other than airline services shall
11     be apportioned to this State by using a fraction, (a) the
12     numerator of which shall be (i) all receipts from any
13     movement or shipment of people, goods, mail, oil, gas, or
14     any other substance (other than by airline) that both
15     originates and terminates in this State, plus (ii) that
16     portion of the person's gross receipts from movements or
17     shipments of people, goods, mail, oil, gas, or any other
18     substance (other than by airline) that originates in one
19     state or jurisdiction and terminates in another state or
20     jurisdiction, that is determined by the ratio that the
21     miles traveled in this State bears to total miles
22     everywhere and (b) the denominator of which shall be all
23     revenue derived from the movement or shipment of people,
24     goods, mail, oil, gas, or any other substance (other than
25     by airline). Where a taxpayer is engaged in the
26     transportation of both passengers and freight, the

 

 

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1     fraction above referred to shall first be determined
2     separately for passenger miles and freight miles. Then an
3     average of the passenger miles fraction and the freight
4     miles fraction shall be weighted to reflect the taxpayer's:
5             (A) relative railway operating income from total
6         passenger and total freight service, as reported to the
7         Surface Transportation Board, in the case of
8         transportation by railroad; and
9             (B) relative gross receipts from passenger and
10         freight transportation, in case of transportation
11         other than by railroad.
12         (4) For taxable years ending on or after December 31,
13     2008, business income derived from furnishing airline
14     transportation services shall be apportioned to this State
15     by multiplying such income by a fraction, the numerator of
16     which is the revenue miles of the person in this State, and
17     the denominator of which is the revenue miles of the person
18     everywhere. For purposes of this paragraph, a revenue mile
19     is the transportation of one passenger or one net ton of
20     freight the distance of one mile for a consideration. If a
21     person is engaged in the transportation of both passengers
22     and freight, the fraction above referred to shall be
23     determined by means of an average of the passenger revenue
24     mile fraction and the freight revenue mile fraction,
25     weighted to reflect the person's relative gross receipts
26     from passenger and freight airline transportation.

 

 

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1     (e) Combined apportionment. Where 2 or more persons are
2 engaged in a unitary business as described in subsection
3 (a)(27) of Section 1501, a part of which is conducted in this
4 State by one or more members of the group, the business income
5 attributable to this State by any such member or members shall
6 be apportioned by means of the combined apportionment method.
7     (f) Alternative allocation. If the allocation and
8 apportionment provisions of subsections (a) through (e) and of
9 subsection (h) do not fairly represent the extent of a person's
10 business activity in this State, the person may petition for,
11 or the Director may, without a petition, permit or require, in
12 respect of all or any part of the person's business activity,
13 if reasonable:
14         (1) Separate accounting;
15         (2) The exclusion of any one or more factors;
16         (3) The inclusion of one or more additional factors
17     which will fairly represent the person's business
18     activities in this State; or
19         (4) The employment of any other method to effectuate an
20     equitable allocation and apportionment of the person's
21     business income.
22     (g) Cross reference. For allocation of business income by
23 residents, see Section 301(a).
24     (h) For tax years ending on or after December 31, 1998, the
25 apportionment factor of persons who apportion their business
26 income to this State under subsection (a) shall be equal to:

 

 

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1         (1) for tax years ending on or after December 31, 1998
2     and before December 31, 1999, 16 2/3% of the property
3     factor plus 16 2/3% of the payroll factor plus 66 2/3% of
4     the sales factor;
5         (2) for tax years ending on or after December 31, 1999
6     and before December 31, 2000, 8 1/3% of the property factor
7     plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
8     factor;
9         (3) for tax years ending on or after December 31, 2000,
10     the sales factor.
11 If, in any tax year ending on or after December 31, 1998 and
12 before December 31, 2000, the denominator of the payroll,
13 property, or sales factor is zero, the apportionment factor
14 computed in paragraph (1) or (2) of this subsection for that
15 year shall be divided by an amount equal to 100% minus the
16 percentage weight given to each factor whose denominator is
17 equal to zero.
18 (Source: P.A. 94-247, eff. 1-1-06; 95-233, eff. 8-16-07;
19 95-707, eff. 1-11-08.)
 
20     (35 ILCS 5/605)  (from Ch. 120, par. 6-605)
21     Sec. 605. The Department may adopt rules and regulations
22 for payment of taxes due under this Act by credit card,
23 provided that, prior to December 31, 2009, the Department may
24 accept payment by credit card only when the Department is not
25 required to pay a discount fee charged by the credit card

 

 

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1 issuer.
2 (Source: P.A. 87-1175; 87-1189.)
 
3     (35 ILCS 5/701)  (from Ch. 120, par. 7-701)
4     Sec. 701. Requirement and Amount of Withholding.
5     (a) In General. Every employer maintaining an office or
6 transacting business within this State and required under the
7 provisions of the Internal Revenue Code to withhold a tax on:
8         (1) compensation paid in this State (as determined
9     under Section 304(a)(2)(B) to an individual; or
10         (2) payments described in subsection (b) shall deduct
11     and withhold from such compensation for each payroll period
12     (as defined in Section 3401 of the Internal Revenue Code)
13     an amount equal to the amount by which such individual's
14     compensation exceeds the proportionate part of this
15     withholding exemption (computed as provided in Section
16     702) attributable to the payroll period for which such
17     compensation is payable multiplied by a percentage equal to
18     the percentage tax rate for individuals provided in
19     subsection (b) of Section 201.
20     (b) Payment to Residents. Any payment (including
21 compensation, but not including a payment from which
22 withholding is required under Section 710 of this Act) to a
23 resident by a payor maintaining an office or transacting
24 business within this State (including any agency, officer, or
25 employee of this State or of any political subdivision of this

 

 

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1 State) and on which withholding of tax is required under the
2 provisions of the Internal Revenue Code shall be deemed to be
3 compensation paid in this State by an employer to an employee
4 for the purposes of Article 7 and Section 601(b)(1) to the
5 extent such payment is included in the recipient's base income
6 and not subjected to withholding by another state.
7 Notwithstanding any other provision to the contrary, no amount
8 shall be withheld from unemployment insurance benefit payments
9 made to an individual pursuant to the Unemployment Insurance
10 Act unless the individual has voluntarily elected the
11 withholding pursuant to rules promulgated by the Director of
12 Employment Security.
13     (c) Special Definitions. Withholding shall be considered
14 required under the provisions of the Internal Revenue Code to
15 the extent the Internal Revenue Code either requires
16 withholding or allows for voluntary withholding the payor and
17 recipient have entered into such a voluntary withholding
18 agreement. For the purposes of Article 7 and Section 1002(c)
19 the term "employer" includes any payor who is required to
20 withhold tax pursuant to this Section.
21     (d) Reciprocal Exemption. The Director may enter into an
22 agreement with the taxing authorities of any state which
23 imposes a tax on or measured by income to provide that
24 compensation paid in such state to residents of this State
25 shall be exempt from withholding of such tax; in such case, any
26 compensation paid in this State to residents of such state

 

 

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1 shall be exempt from withholding. All reciprocal agreements
2 shall be subject to the requirements of Section 2505-575 of the
3 Department of Revenue Law (20 ILCS 2505/2505-575).
4     (e) Notwithstanding subsection (a)(2) of this Section, no
5 withholding is required on payments for which withholding is
6 required under Section 3405 or 3406 of the Internal Revenue
7 Code of 1954.
8 (Source: P.A. 92-846, eff. 8-23-02; 93-634, eff. 1-1-04.)
 
9     (35 ILCS 5/710)  (from Ch. 120, par. 7-710)
10     Sec. 710. Withholding from lottery, wagering, and gambling
11 winnings. (a) In General.
12         (1) Any person making a payment to a resident or
13     nonresident of winnings under the Illinois Lottery Law and
14     not required to withhold Illinois income tax from such
15     payment under Subsection (b) of Section 701 of this Act
16     because those winnings are not subject to Federal income
17     tax withholding, must withhold Illinois income tax from
18     such payment at a rate equal to the percentage tax rate for
19     individuals provided in subsection (b) of Section 201,
20     provided that withholding is not required if such payment
21     of winnings is less than $1,000.
22         (2) In the case of an assignment of a lottery prize
23     under Section 13.1 of the Illinois Lottery Law, any person
24     making a payment of the purchase price after December 31,
25     2009, shall withhold from the amount of each payment at a

 

 

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1     rate equal to the percentage tax rate for individuals
2     provided in subsection (b) of Section 201.
3         (3) Any person making a payment after December 31,
4     2009, to a resident or nonresident of winnings from
5     pari-mutuel wagering conducted at a wagering facility
6     licensed under the Illinois Horse Racing Act of 1975 or
7     from gambling games conducted on a riverboat licensed under
8     the Riverboat Gambling Act must withhold Illinois income
9     tax from such payment at a rate equal to the percentage tax
10     rate for individuals provided in subsection (b) of Section
11     201, provided that withholding is required only if the
12     payment must be reported to the Internal Revenue Service by
13     the person making the payment.
14     (b) Credit for taxes withheld. Any amount withheld under
15 Subsection (a) shall be a credit against the Illinois income
16 tax liability of the person to whom the payment of winnings was
17 made for the taxable year in which that person incurred an
18 Illinois income tax liability with respect to those winnings.
19 (Source: P.A. 85-731.)
 
20     Section 20. The Retailers' Occupation Tax Act is amended by
21 changing Sections 5 and 5f as follows:
 
22     (35 ILCS 120/5)  (from Ch. 120, par. 444)
23     Sec. 5. In case any person engaged in the business of
24 selling tangible personal property at retail fails to file a

 

 

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1 return when and as herein required, but thereafter, prior to
2 the Department's issuance of a notice of tax liability under
3 this Section, files a return and pays the tax, he shall also
4 pay a penalty in an amount determined in accordance with
5 Section 3-3 of the Uniform Penalty and Interest Act.
6     In case any person engaged in the business of selling
7 tangible personal property at retail files the return at the
8 time required by this Act but fails to pay the tax, or any part
9 thereof, when due, a penalty in an amount determined in
10 accordance with Section 3-3 of the Uniform Penalty and Interest
11 Act shall be added thereto.
12     In case any person engaged in the business of selling
13 tangible personal property at retail fails to file a return
14 when and as herein required, but thereafter, prior to the
15 Department's issuance of a notice of tax liability under this
16 Section, files a return but fails to pay the entire tax, a
17 penalty in an amount determined in accordance with Section 3-3
18 of the Uniform Penalty and Interest Act shall be added thereto.
19     In case any person engaged in the business of selling
20 tangible personal property at retail fails to file a return,
21 the Department shall determine the amount of tax due from him
22 according to its best judgment and information, which amount so
23 fixed by the Department shall be prima facie correct and shall
24 be prima facie evidence of the correctness of the amount of tax
25 due, as shown in such determination. In making any such
26 determination of tax due, it shall be permissible for the

 

 

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1 Department to show a figure that represents the tax due for any
2 given period of 6 months instead of showing the amount of tax
3 due for each month separately. Proof of such determination by
4 the Department may be made at any hearing before the Department
5 or in any legal proceeding by a reproduced copy or computer
6 print-out of the Department's record relating thereto in the
7 name of the Department under the certificate of the Director of
8 Revenue. If reproduced copies of the Department's records are
9 offered as proof of such determination, the Director must
10 certify that those copies are true and exact copies of records
11 on file with the Department. If computer print-outs of the
12 Department's records are offered as proof of such
13 determination, the Director must certify that those computer
14 print-outs are true and exact representations of records
15 properly entered into standard electronic computing equipment,
16 in the regular course of the Department's business, at or
17 reasonably near the time of the occurrence of the facts
18 recorded, from trustworthy and reliable information. Such
19 certified reproduced copy or certified computer print-out
20 shall, without further proof, be admitted into evidence before
21 the Department or in any legal proceeding and shall be prima
22 facie proof of the correctness of the amount of tax due, as
23 shown therein. The Department shall issue the taxpayer a notice
24 of tax liability for the amount of tax claimed by the
25 Department to be due, together with a penalty of 30% thereof.
26     However, where the failure to file any tax return required

 

 

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1 under this Act on the date prescribed therefor (including any
2 extensions thereof), is shown to be unintentional and
3 nonfraudulent and has not occurred in the 6 2 years immediately
4 preceding the failure to file on the prescribed date or is due
5 to other reasonable cause the penalties imposed by this Act
6 shall not apply.
7     If such person or the legal representative of such person
8 files, within 60 days after such notice, a protest to such
9 notice of tax liability and requests a hearing thereon, the
10 Department shall give notice to such person or the legal
11 representative of such person of the time and place fixed for
12 such hearing, and shall hold a hearing in conformity with the
13 provisions of this Act, and pursuant thereto shall issue a
14 final assessment to such person or to the legal representative
15 of such person for the amount found to be due as a result of
16 such hearing.
17     If a protest to the notice of tax liability and a request
18 for a hearing thereon is not filed within 60 days after such
19 notice, such notice of tax liability shall become final without
20 the necessity of a final assessment being issued and shall be
21 deemed to be a final assessment.
22     After the issuance of a final assessment, or a notice of
23 tax liability which becomes final without the necessity of
24 actually issuing a final assessment as hereinbefore provided,
25 the Department, at any time before such assessment is reduced
26 to judgment, may (subject to rules of the Department) grant a

 

 

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1 rehearing (or grant departmental review and hold an original
2 hearing if no previous hearing in the matter has been held)
3 upon the application of the person aggrieved. Pursuant to such
4 hearing or rehearing, the Department shall issue a revised
5 final assessment to such person or his legal representative for
6 the amount found to be due as a result of such hearing or
7 rehearing.
8     Except in case of failure to file a return, or with the
9 consent of the person to whom the notice of tax liability is to
10 be issued, no notice of tax liability shall be issued on and
11 after each July 1 and January 1 covering gross receipts
12 received during any month or period of time more than 3 years
13 prior to such July 1 and January 1, respectively, except that
14 if a return is not filed at the required time, a notice of tax
15 liability may be issued not later than 3 years after the time
16 the return is filed. The foregoing limitations upon the
17 issuance of a notice of tax liability shall not apply to the
18 issuance of any such notice with respect to any period of time
19 prior thereto in cases where the Department has, within the
20 period of limitation then provided, notified a person of the
21 amount of tax computed even though the Department had not
22 determined the amount of tax due from such person in the manner
23 required herein prior to the issuance of such notice, but in no
24 case shall the amount of any such notice of tax liability for
25 any period otherwise barred by this Act exceed for such period
26 the amount shown in the notice theretofore issued.

 

 

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1     If, when a tax or penalty under this Act becomes due and
2 payable, the person alleged to be liable therefor is out of the
3 State, the notice of tax liability may be issued within the
4 times herein limited after his or her coming into or return to
5 the State; and if, after the tax or penalty under this Act
6 becomes due and payable, the person alleged to be liable
7 therefor departs from and remains out of the State, the time of
8 his or her absence is no part of the time limited for the
9 issuance of the notice of tax liability; but the foregoing
10 provisions concerning absence from the State shall not apply to
11 any case in which, at the time when a tax or penalty becomes
12 due under this Act, the person allegedly liable therefor is not
13 a resident of this State.
14     The time limitation period on the Department's right to
15 issue a notice of tax liability shall not run during any period
16 of time in which the order of any court has the effect of
17 enjoining or restraining the Department from issuing the notice
18 of tax liability.
19     In case of failure to pay the tax, or any portion thereof,
20 or any penalty provided for in this Act, or interest, when due,
21 the Department may bring suit to recover the amount of such
22 tax, or portion thereof, or penalty or interest; or, if the
23 taxpayer has died or become a person under legal disability,
24 may file a claim therefor against his estate; provided that no
25 such suit with respect to any tax, or portion thereof, or
26 penalty, or interest shall be instituted more than 6 2 years

 

 

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1 after the date any proceedings in court for review thereof have
2 terminated or the time for the taking thereof has expired
3 without such proceedings being instituted, except with the
4 consent of the person from whom such tax or penalty or interest
5 is due; nor, except with such consent, shall such suit be
6 instituted more than 6 2 years after the date any return is
7 filed with the Department in cases where the return constitutes
8 the basis for the suit for unpaid tax, or portion thereof, or
9 penalty provided for in this Act, or interest: Provided that
10 the time limitation period on the Department's right to bring
11 any such suit shall not run during any period of time in which
12 the order of any court has the effect of enjoining or
13 restraining the Department from bringing such suit.
14     After the expiration of the period within which the person
15 assessed may file an action for judicial review under the
16 Administrative Review Law without such an action being filed, a
17 certified copy of the final assessment or revised final
18 assessment of the Department may be filed with the Circuit
19 Court of the county in which the taxpayer has his principal
20 place of business, or of Sangamon County in those cases in
21 which the taxpayer does not have his principal place of
22 business in this State. The certified copy of the final
23 assessment or revised final assessment shall be accompanied by
24 a certification which recites facts that are sufficient to show
25 that the Department complied with the jurisdictional
26 requirements of the Act in arriving at its final assessment or

 

 

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1 its revised final assessment and that the taxpayer had his
2 opportunity for an administrative hearing and for judicial
3 review, whether he availed himself or herself of either or both
4 of these opportunities or not. If the court is satisfied that
5 the Department complied with the jurisdictional requirements
6 of the Act in arriving at its final assessment or its revised
7 final assessment and that the taxpayer had his opportunity for
8 an administrative hearing and for judicial review, whether he
9 availed himself of either or both of these opportunities or
10 not, the court shall render judgment in favor of the Department
11 and against the taxpayer for the amount shown to be due by the
12 final assessment or the revised final assessment, plus any
13 interest which may be due, and such judgment shall be entered
14 in the judgment docket of the court. Such judgment shall bear
15 the rate of interest as set by the Uniform Penalty and Interest
16 Act, but otherwise shall have the same effect as other
17 judgments. The judgment may be enforced, and all laws
18 applicable to sales for the enforcement of a judgment shall be
19 applicable to sales made under such judgments. The Department
20 shall file the certified copy of its assessment, as herein
21 provided, with the Circuit Court within 6 2 years after such
22 assessment becomes final except when the taxpayer consents in
23 writing to an extension of such filing period, and except that
24 the time limitation period on the Department's right to file
25 the certified copy of its assessment with the Circuit Court
26 shall not run during any period of time in which the order of

 

 

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1 any court has the effect of enjoining or restraining the
2 Department from filing such certified copy of its assessment
3 with the Circuit Court.
4     If, when the cause of action for a proceeding in court
5 accrues against a person, he or she is out of the State, the
6 action may be commenced within the times herein limited, after
7 his or her coming into or return to the State; and if, after
8 the cause of action accrues, he or she departs from and remains
9 out of the State, the time of his or her absence is no part of
10 the time limited for the commencement of the action; but the
11 foregoing provisions concerning absence from the State shall
12 not apply to any case in which, at the time the cause of action
13 accrues, the party against whom the cause of action accrues is
14 not a resident of this State. The time within which a court
15 action is to be commenced by the Department hereunder shall not
16 run from the date the taxpayer files a petition in bankruptcy
17 under the Federal Bankruptcy Act until 30 days after notice of
18 termination or expiration of the automatic stay imposed by the
19 Federal Bankruptcy Act.
20     No claim shall be filed against the estate of any deceased
21 person or any person under legal disability for any tax or
22 penalty or part of either, or interest, except in the manner
23 prescribed and within the time limited by the Probate Act of
24 1975, as amended.
25     The collection of tax or penalty or interest by any means
26 provided for herein shall not be a bar to any prosecution under

 

 

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1 this Act.
2     In addition to any penalty provided for in this Act, any
3 amount of tax which is not paid when due shall bear interest at
4 the rate and in the manner specified in Sections 3-2 and 3-9 of
5 the Uniform Penalty and Interest Act from the date when such
6 tax becomes past due until such tax is paid or a judgment
7 therefor is obtained by the Department. If the time for making
8 or completing an audit of a taxpayer's books and records is
9 extended with the taxpayer's consent, at the request of and for
10 the convenience of the Department, beyond the date on which the
11 statute of limitations upon the issuance of a notice of tax
12 liability by the Department otherwise would run, no interest
13 shall accrue during the period of such extension or until a
14 Notice of Tax Liability is issued, whichever occurs first.
15     In addition to any other remedy provided by this Act, and
16 regardless of whether the Department is making or intends to
17 make use of such other remedy, where a corporation or limited
18 liability company registered under this Act violates the
19 provisions of this Act or of any rule or regulation promulgated
20 thereunder, the Department may give notice to the Attorney
21 General of the identity of such a corporation or limited
22 liability company and of the violations committed by such a
23 corporation or limited liability company, for such action as is
24 not already provided for by this Act and as the Attorney
25 General may deem appropriate.
26     If the Department determines that an amount of tax or

 

 

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1 penalty or interest was incorrectly assessed, whether as the
2 result of a mistake of fact or an error of law, the Department
3 shall waive the amount of tax or penalty or interest that
4 accrued due to the incorrect assessment.
5 (Source: P.A. 87-193; 87-205; 87-895; 88-480.)
 
6     (35 ILCS 120/5f)  (from Ch. 120, par. 444f)
7     Sec. 5f. In addition to any other remedy provided for by
8 the laws of this State, if the tax imposed by this Act is not
9 paid within the time required by this Act, the Department, or
10 some person designated by it, may cause a demand to be made on
11 the taxpayer for the payment of the tax. If the tax remains
12 unpaid for 10 days after demand has been made and no
13 proceedings have been taken for review, the Department may
14 issue a warrant directed to the sheriff of any county of the
15 State or to any State officer authorized to serve process,
16 commanding the sheriff or other officer to levy upon property
17 and rights to property (whether real or personal, tangible or
18 intangible) of the taxpayer, without exemption, found within
19 his or her jurisdiction, for the payment of the amount of
20 unpaid tax with the added penalties, interest and the cost of
21 executing the warrant. The term "levy" includes the power of
22 distraint and seizure by any means. In any case in which the
23 warrant to levy has been issued, the sheriff or other person to
24 whom the warrant was directed may seize and sell such property
25 or rights to property. Such warrant shall be returned to the

 

 

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1 Department together with the money collected by virtue of the
2 warrant within the time specified in the warrant, which may not
3 be less than 20 nor more than 90 days from the date of the
4 warrant. The sheriff or other officer to whom such warrant is
5 directed shall proceed in the same manner as is prescribed by
6 law for proceeding against property to enforce judgments which
7 are entered by a circuit court of this State, and is entitled
8 to the same fees for his or her services in executing the
9 warrant, to be collected in the same manner. The Department, or
10 some officer, employee or agent designated by it, may bid for
11 and purchase any such property sold.
12     No proceedings for a levy under this Section may be
13 commenced more than 20 years after the latest date for filing
14 of the notice of lien under Section 5b of this Act, without
15 regard to whether such notice was actually filed.
16     Any officer or employee of the Department designated in
17 writing by the Director is authorized to serve process under
18 this Section to levy upon accounts or other intangible assets
19 of a taxpayer held by a financial organization, as defined by
20 Section 1501 of the Illinois Income Tax Act. In addition to any
21 other provisions of this Section, any officer or employee of
22 the Department designated in writing by the Director may levy
23 upon the following property and rights to property belonging to
24 a taxpayer: contractual payments, accounts and notes
25 receivable and other evidences of debt, and interest on bonds,
26 by serving a notice of levy on the person making such payment.

 

 

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1 Levy shall not be made until the Department has caused a demand
2 to be made on the taxpayer in the manner provided above. In
3 addition to any other provisions of this Section, any officer
4 or employee of the Department designated in writing by the
5 Director, may levy upon the salary, wages, commissions and
6 bonuses of any employee, including officers, employees, or
7 elected officials of the United States as authorized by Section
8 5520a of the Government Organization and Employees Act (5
9 U.S.C. 5520a), but not upon the salary or wages of officers,
10 employees, or elected officials of any state other than this
11 State, by serving a notice of levy on the employer. Levy shall
12 not be made until the Department has caused a demand to be made
13 on the employee in the manner provided above. The provisions of
14 Section 12-803 of the Code of Civil Procedure relating to
15 maximum compensation subject to collection under wage
16 deduction orders shall apply to all levies made upon
17 compensation under this Section. To the extent of the amount
18 due on the levy, the employer or other person making payments
19 to the taxpayer shall hold any non-exempt wages or other
20 payments due or which subsequently come due. The levy or
21 balance due thereon is a lien on wages or other payments due at
22 the time of the service of the notice of levy, and such lien
23 shall continue as to subsequent earnings and other payments
24 until the total amount due upon the levy is paid, except that
25 such lien on subsequent earnings or other payments shall
26 terminate sooner if the employment relationship is terminated

 

 

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1 or if the notice of levy is rescinded or modified. The employer
2 or other person making payments to the taxpayer shall file, on
3 or before the return dates stated in the notice of levy (which
4 shall not be more often than bimonthly) a written answer under
5 oath to interrogatories, setting forth the amount due as wages
6 or other payments to the taxpayer for the payment periods
7 ending immediately prior to the appropriate return date. An
8 employer or other person failing to file, before the return
9 date stated in the notice of levy, a written answer under oath
10 to interrogatories, setting forth the amount due as wages or
11 other payments to the taxpayer for the payment periods ending
12 immediately prior to the appropriate return date is guilty of a
13 petty offense and shall be fined $500 for a first offense and
14 $1,000 for a second or any subsequent offense. A lien obtained
15 hereunder shall have priority over any subsequent lien obtained
16 pursuant to Section 12-808 of the Code of Civil Procedure,
17 except that liens for the support of a spouse or dependent
18 children shall have priority over all liens obtained hereunder.
19     In any case where property or rights to property have been
20 seized by an officer of the Illinois Department of Law
21 Enforcement, or successor agency thereto, under the authority
22 of a warrant to levy issued by the Department of Revenue, the
23 Department of Revenue may take possession of and may sell such
24 property or rights to property and the Department of Revenue
25 may contract with third persons to conduct sales of such
26 property or rights to the property. In the conduct of such

 

 

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1 sales, the Department of Revenue shall proceed in the same
2 manner as is prescribed by law for proceeding against property
3 to enforce judgments which are entered by a circuit court of
4 this State. If, in the Department's opinion, no offer to
5 purchase at such sale is acceptable and the State's interest
6 would be better served by retaining the property for sale at a
7 later date, then the Department may decline to accept any bid
8 and may retain the property for sale at a later date.
9 (Source: P.A. 89-399, eff. 8-20-95.)
 
10     Section 25. The Illinois Vehicle Code is amended by
11 changing Section 2-123 as follows:
 
12     (625 ILCS 5/2-123)  (from Ch. 95 1/2, par. 2-123)
13     Sec. 2-123. Sale and Distribution of Information.
14     (a) Except as otherwise provided in this Section, the
15 Secretary may make the driver's license, vehicle and title
16 registration lists, in part or in whole, and any statistical
17 information derived from these lists available to local
18 governments, elected state officials, state educational
19 institutions, and all other governmental units of the State and
20 Federal Government requesting them for governmental purposes.
21 The Secretary shall require any such applicant for services to
22 pay for the costs of furnishing such services and the use of
23 the equipment involved, and in addition is empowered to
24 establish prices and charges for the services so furnished and

 

 

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1 for the use of the electronic equipment utilized.
2     (b) The Secretary is further empowered to and he may, in
3 his discretion, furnish to any applicant, other than listed in
4 subsection (a) of this Section, vehicle or driver data on a
5 computer tape, disk, other electronic format or computer
6 processable medium, or printout at a fixed fee of $250 for
7 orders received before October 1, 2003 and $500 for orders
8 received on or after October 1, 2003, in advance, and require
9 in addition a further sufficient deposit based upon the
10 Secretary of State's estimate of the total cost of the
11 information requested and a charge of $25 for orders received
12 before October 1, 2003 and $50 for orders received on or after
13 October 1, 2003, per 1,000 units or part thereof identified or
14 the actual cost, whichever is greater. The Secretary is
15 authorized to refund any difference between the additional
16 deposit and the actual cost of the request. This service shall
17 not be in lieu of an abstract of a driver's record nor of a
18 title or registration search. This service may be limited to
19 entities purchasing a minimum number of records as required by
20 administrative rule. The information sold pursuant to this
21 subsection shall be the entire vehicle or driver data list, or
22 part thereof. The information sold pursuant to this subsection
23 shall not contain personally identifying information unless
24 the information is to be used for one of the purposes
25 identified in subsection (f-5) of this Section. Commercial
26 purchasers of driver and vehicle record databases shall enter

 

 

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1 into a written agreement with the Secretary of State that
2 includes disclosure of the commercial use of the information to
3 be purchased.
4     (b-1) The Secretary is further empowered to and may, in his
5 or her discretion, furnish vehicle or driver data on a computer
6 tape, disk, or other electronic format or computer processible
7 medium, at no fee, to any State or local governmental agency
8 that uses the information provided by the Secretary to transmit
9 data back to the Secretary that enables the Secretary to
10 maintain accurate driving records, including dispositions of
11 traffic cases. This information may be provided without fee not
12 more often than once every 6 months.
13     (c) Secretary of State may issue registration lists. The
14 Secretary of State may compile a list of all registered
15 vehicles. Each list of registered vehicles shall be arranged
16 serially according to the registration numbers assigned to
17 registered vehicles and may contain in addition the names and
18 addresses of registered owners and a brief description of each
19 vehicle including the serial or other identifying number
20 thereof. Such compilation may be in such form as in the
21 discretion of the Secretary of State may seem best for the
22 purposes intended.
23     (d) The Secretary of State shall furnish no more than 2
24 current available lists of such registrations to the sheriffs
25 of all counties and to the chiefs of police of all cities and
26 villages and towns of 2,000 population and over in this State

 

 

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1 at no cost. Additional copies may be purchased by the sheriffs
2 or chiefs of police at the fee of $500 each or at the cost of
3 producing the list as determined by the Secretary of State.
4 Such lists are to be used for governmental purposes only.
5     (e) (Blank).
6     (e-1) (Blank).
7     (f) The Secretary of State shall make a title or
8 registration search of the records of his office and a written
9 report on the same for any person, upon written application of
10 such person, accompanied by a fee of $5 for each registration
11 or title search. The written application shall set forth the
12 intended use of the requested information. No fee shall be
13 charged for a title or registration search, or for the
14 certification thereof requested by a government agency. The
15 report of the title or registration search shall not contain
16 personally identifying information unless the request for a
17 search was made for one of the purposes identified in
18 subsection (f-5) of this Section. The report of the title or
19 registration search shall not contain highly restricted
20 personal information unless specifically authorized by this
21 Code.
22     The Secretary of State shall certify a title or
23 registration record upon written request. The fee for
24 certification shall be $5 in addition to the fee required for a
25 title or registration search. Certification shall be made under
26 the signature of the Secretary of State and shall be

 

 

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1 authenticated by Seal of the Secretary of State.
2     The Secretary of State may notify the vehicle owner or
3 registrant of the request for purchase of his title or
4 registration information as the Secretary deems appropriate.
5     No information shall be released to the requestor until
6 expiration of a 10 day period. This 10 day period shall not
7 apply to requests for information made by law enforcement
8 officials, government agencies, financial institutions,
9 attorneys, insurers, employers, automobile associated
10 businesses, persons licensed as a private detective or firms
11 licensed as a private detective agency under the Private
12 Detective, Private Alarm, Private Security, Fingerprint
13 Vendor, and Locksmith Act of 2004, who are employed by or are
14 acting on behalf of law enforcement officials, government
15 agencies, financial institutions, attorneys, insurers,
16 employers, automobile associated businesses, and other
17 business entities for purposes consistent with the Illinois
18 Vehicle Code, the vehicle owner or registrant or other entities
19 as the Secretary may exempt by rule and regulation.
20     Any misrepresentation made by a requestor of title or
21 vehicle information shall be punishable as a petty offense,
22 except in the case of persons licensed as a private detective
23 or firms licensed as a private detective agency which shall be
24 subject to disciplinary sanctions under Section 40-10 of the
25 Private Detective, Private Alarm, Private Security,
26 Fingerprint Vendor, and Locksmith Act of 2004.

 

 

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1     (f-5) The Secretary of State shall not disclose or
2 otherwise make available to any person or entity any personally
3 identifying information obtained by the Secretary of State in
4 connection with a driver's license, vehicle, or title
5 registration record unless the information is disclosed for one
6 of the following purposes:
7         (1) For use by any government agency, including any
8     court or law enforcement agency, in carrying out its
9     functions, or any private person or entity acting on behalf
10     of a federal, State, or local agency in carrying out its
11     functions.
12         (2) For use in connection with matters of motor vehicle
13     or driver safety and theft; motor vehicle emissions; motor
14     vehicle product alterations, recalls, or advisories;
15     performance monitoring of motor vehicles, motor vehicle
16     parts, and dealers; and removal of non-owner records from
17     the original owner records of motor vehicle manufacturers.
18         (3) For use in the normal course of business by a
19     legitimate business or its agents, employees, or
20     contractors, but only:
21             (A) to verify the accuracy of personal information
22         submitted by an individual to the business or its
23         agents, employees, or contractors; and
24             (B) if such information as so submitted is not
25         correct or is no longer correct, to obtain the correct
26         information, but only for the purposes of preventing

 

 

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1         fraud by, pursuing legal remedies against, or
2         recovering on a debt or security interest against, the
3         individual.
4         (4) For use in research activities and for use in
5     producing statistical reports, if the personally
6     identifying information is not published, redisclosed, or
7     used to contact individuals.
8         (5) For use in connection with any civil, criminal,
9     administrative, or arbitral proceeding in any federal,
10     State, or local court or agency or before any
11     self-regulatory body, including the service of process,
12     investigation in anticipation of litigation, and the
13     execution or enforcement of judgments and orders, or
14     pursuant to an order of a federal, State, or local court.
15         (6) For use by any insurer or insurance support
16     organization or by a self-insured entity or its agents,
17     employees, or contractors in connection with claims
18     investigation activities, antifraud activities, rating, or
19     underwriting.
20         (7) For use in providing notice to the owners of towed
21     or impounded vehicles.
22         (8) For use by any person licensed as a private
23     detective or firm licensed as a private detective agency
24     under the Private Detective, Private Alarm, Private
25     Security, Fingerprint Vendor, and Locksmith Act of 2004,
26     private investigative agency or security service licensed

 

 

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1     in Illinois for any purpose permitted under this
2     subsection.
3         (9) For use by an employer or its agent or insurer to
4     obtain or verify information relating to a holder of a
5     commercial driver's license that is required under chapter
6     313 of title 49 of the United States Code.
7         (10) For use in connection with the operation of
8     private toll transportation facilities.
9         (11) For use by any requester, if the requester
10     demonstrates it has obtained the written consent of the
11     individual to whom the information pertains.
12         (12) For use by members of the news media, as defined
13     in Section 1-148.5, for the purpose of newsgathering when
14     the request relates to the operation of a motor vehicle or
15     public safety.
16         (13) For any other use specifically authorized by law,
17     if that use is related to the operation of a motor vehicle
18     or public safety.
19         (14) For use by the Department of Revenue in the
20     administration of any tax administered by the Department of
21     Revenue or in the collection of any tax or debt that the
22     Department of Revenue is authorized or required by law to
23     collect. The Secretary of State may disclose or otherwise
24     make available to the Department social security numbers
25     for these purposes.
26     (f-6) The Secretary of State shall not disclose or

 

 

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1 otherwise make available to any person or entity any highly
2 restricted personal information obtained by the Secretary of
3 State in connection with a driver's license, vehicle, or title
4 registration record unless specifically authorized by this
5 Code.
6     (g) 1. The Secretary of State may, upon receipt of a
7     written request and a fee of $6 before October 1, 2003 and
8     a fee of $12 on and after October 1, 2003, furnish to the
9     person or agency so requesting a driver's record. Such
10     document may include a record of: current driver's license
11     issuance information, except that the information on
12     judicial driving permits shall be available only as
13     otherwise provided by this Code; convictions; orders
14     entered revoking, suspending or cancelling a driver's
15     license or privilege; and notations of accident
16     involvement. All other information, unless otherwise
17     permitted by this Code, shall remain confidential.
18     Information released pursuant to a request for a driver's
19     record shall not contain personally identifying
20     information, unless the request for the driver's record was
21     made for one of the purposes set forth in subsection (f-5)
22     of this Section. The Secretary of State may, without fee,
23     allow a parent or guardian of a person under the age of 18
24     years, who holds an instruction permit or graduated
25     driver's license, to view that person's driving record
26     online, through a computer connection. The parent or

 

 

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1     guardian's online access to the driving record will
2     terminate when the instruction permit or graduated
3     driver's license holder reaches the age of 18.
4         2. The Secretary of State shall not disclose or
5     otherwise make available to any person or entity any highly
6     restricted personal information obtained by the Secretary
7     of State in connection with a driver's license, vehicle, or
8     title registration record unless specifically authorized
9     by this Code. The Secretary of State may certify an
10     abstract of a driver's record upon written request
11     therefor. Such certification shall be made under the
12     signature of the Secretary of State and shall be
13     authenticated by the Seal of his office.
14         3. All requests for driving record information shall be
15     made in a manner prescribed by the Secretary and shall set
16     forth the intended use of the requested information.
17         The Secretary of State may notify the affected driver
18     of the request for purchase of his driver's record as the
19     Secretary deems appropriate.
20         No information shall be released to the requester until
21     expiration of a 10 day period. This 10 day period shall not
22     apply to requests for information made by law enforcement
23     officials, government agencies, financial institutions,
24     attorneys, insurers, employers, automobile associated
25     businesses, persons licensed as a private detective or
26     firms licensed as a private detective agency under the

 

 

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1     Private Detective, Private Alarm, Private Security,
2     Fingerprint Vendor, and Locksmith Act of 2004, who are
3     employed by or are acting on behalf of law enforcement
4     officials, government agencies, financial institutions,
5     attorneys, insurers, employers, automobile associated
6     businesses, and other business entities for purposes
7     consistent with the Illinois Vehicle Code, the affected
8     driver or other entities as the Secretary may exempt by
9     rule and regulation.
10         Any misrepresentation made by a requestor of driver
11     information shall be punishable as a petty offense, except
12     in the case of persons licensed as a private detective or
13     firms licensed as a private detective agency which shall be
14     subject to disciplinary sanctions under Section 40-10 of
15     the Private Detective, Private Alarm, Private Security,
16     Fingerprint Vendor, and Locksmith Act of 2004.
17         4. The Secretary of State may furnish without fee, upon
18     the written request of a law enforcement agency, any
19     information from a driver's record on file with the
20     Secretary of State when such information is required in the
21     enforcement of this Code or any other law relating to the
22     operation of motor vehicles, including records of
23     dispositions; documented information involving the use of
24     a motor vehicle; whether such individual has, or previously
25     had, a driver's license; and the address and personal
26     description as reflected on said driver's record.

 

 

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1         5. Except as otherwise provided in this Section, the
2     Secretary of State may furnish, without fee, information
3     from an individual driver's record on file, if a written
4     request therefor is submitted by any public transit system
5     or authority, public defender, law enforcement agency, a
6     state or federal agency, or an Illinois local
7     intergovernmental association, if the request is for the
8     purpose of a background check of applicants for employment
9     with the requesting agency, or for the purpose of an
10     official investigation conducted by the agency, or to
11     determine a current address for the driver so public funds
12     can be recovered or paid to the driver, or for any other
13     purpose set forth in subsection (f-5) of this Section.
14         The Secretary may also furnish the courts a copy of an
15     abstract of a driver's record, without fee, subsequent to
16     an arrest for a violation of Section 11-501 or a similar
17     provision of a local ordinance. Such abstract may include
18     records of dispositions; documented information involving
19     the use of a motor vehicle as contained in the current
20     file; whether such individual has, or previously had, a
21     driver's license; and the address and personal description
22     as reflected on said driver's record.
23         6. Any certified abstract issued by the Secretary of
24     State or transmitted electronically by the Secretary of
25     State pursuant to this Section, to a court or on request of
26     a law enforcement agency, for the record of a named person

 

 

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1     as to the status of the person's driver's license shall be
2     prima facie evidence of the facts therein stated and if the
3     name appearing in such abstract is the same as that of a
4     person named in an information or warrant, such abstract
5     shall be prima facie evidence that the person named in such
6     information or warrant is the same person as the person
7     named in such abstract and shall be admissible for any
8     prosecution under this Code and be admitted as proof of any
9     prior conviction or proof of records, notices, or orders
10     recorded on individual driving records maintained by the
11     Secretary of State.
12         7. Subject to any restrictions contained in the
13     Juvenile Court Act of 1987, and upon receipt of a proper
14     request and a fee of $6 before October 1, 2003 and a fee of
15     $12 on or after October 1, 2003, the Secretary of State
16     shall provide a driver's record to the affected driver, or
17     the affected driver's attorney, upon verification. Such
18     record shall contain all the information referred to in
19     paragraph 1 of this subsection (g) plus: any recorded
20     accident involvement as a driver; information recorded
21     pursuant to subsection (e) of Section 6-117 and paragraph
22     (4) of subsection (a) of Section 6-204 of this Code. All
23     other information, unless otherwise permitted by this
24     Code, shall remain confidential.
25     (h) The Secretary shall not disclose social security
26 numbers or any associated information obtained from the Social

 

 

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1 Security Administration except pursuant to a written request
2 by, or with the prior written consent of, the individual
3 except: (1) to officers and employees of the Secretary who have
4 a need to know the social security numbers in performance of
5 their official duties, (2) to law enforcement officials for a
6 lawful, civil or criminal law enforcement investigation, and if
7 the head of the law enforcement agency has made a written
8 request to the Secretary specifying the law enforcement
9 investigation for which the social security numbers are being
10 sought, (3) to the United States Department of Transportation,
11 or any other State, pursuant to the administration and
12 enforcement of the Commercial Motor Vehicle Safety Act of 1986,
13 (4) pursuant to the order of a court of competent jurisdiction,
14 or (5) to the Department of Healthcare and Family Services
15 (formerly Department of Public Aid) for utilization in the
16 child support enforcement duties assigned to that Department
17 under provisions of the Illinois Public Aid Code after the
18 individual has received advanced meaningful notification of
19 what redisclosure is sought by the Secretary in accordance with
20 the federal Privacy Act.
21     (i) (Blank).
22     (j) Medical statements or medical reports received in the
23 Secretary of State's Office shall be confidential. No
24 confidential information may be open to public inspection or
25 the contents disclosed to anyone, except officers and employees
26 of the Secretary who have a need to know the information

 

 

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1 contained in the medical reports and the Driver License Medical
2 Advisory Board, unless so directed by an order of a court of
3 competent jurisdiction.
4     (k) All fees collected under this Section shall be paid
5 into the Road Fund of the State Treasury, except that (i) for
6 fees collected before October 1, 2003, $3 of the $6 fee for a
7 driver's record shall be paid into the Secretary of State
8 Special Services Fund, (ii) for fees collected on and after
9 October 1, 2003, of the $12 fee for a driver's record, $3 shall
10 be paid into the Secretary of State Special Services Fund and
11 $6 shall be paid into the General Revenue Fund, and (iii) for
12 fees collected on and after October 1, 2003, 50% of the amounts
13 collected pursuant to subsection (b) shall be paid into the
14 General Revenue Fund.
15     (l) (Blank).
16     (m) Notations of accident involvement that may be disclosed
17 under this Section shall not include notations relating to
18 damage to a vehicle or other property being transported by a
19 tow truck. This information shall remain confidential,
20 provided that nothing in this subsection (m) shall limit
21 disclosure of any notification of accident involvement to any
22 law enforcement agency or official.
23     (n) Requests made by the news media for driver's license,
24 vehicle, or title registration information may be furnished
25 without charge or at a reduced charge, as determined by the
26 Secretary, when the specific purpose for requesting the

 

 

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1 documents is deemed to be in the public interest. Waiver or
2 reduction of the fee is in the public interest if the principal
3 purpose of the request is to access and disseminate information
4 regarding the health, safety, and welfare or the legal rights
5 of the general public and is not for the principal purpose of
6 gaining a personal or commercial benefit. The information
7 provided pursuant to this subsection shall not contain
8 personally identifying information unless the information is
9 to be used for one of the purposes identified in subsection
10 (f-5) of this Section.
11     (o) The redisclosure of personally identifying information
12 obtained pursuant to this Section is prohibited, except to the
13 extent necessary to effectuate the purpose for which the
14 original disclosure of the information was permitted.
15     (p) The Secretary of State is empowered to adopt rules to
16 effectuate this Section.
17 (Source: P.A. 94-56, eff. 6-17-05; 95-201, eff. 1-1-08; 95-287,
18 eff. 1-1-08; 95-331, eff. 8-21-07; 95-613, eff. 9-11-07;
19 95-876, eff. 8-21-08.)
 
20     Section 99. Effective date. This Act takes effect upon
21 becoming law.