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| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB5422 Introduced , by Rep. Natalie A. Manley SYNOPSIS AS INTRODUCED: |
| 35 ILCS 120/11 | from Ch. 120, par. 450 | 65 ILCS 5/8-11-16 | from Ch. 24, par. 8-11-16 |
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Amends the Retailers' Occupation Tax Act and the Illinois Municipal Code. Provides that, upon resolution of a municipality, the Department shall permit any duly authorized officer of employee of the municipality, or any other person designated by that municipality, to examine all of the records reported to the Department pertaining to the collection of use and occupation taxes for the municipality by the Department. Provides that designated individuals, other than officers and employees of the municipality, must meet certain criteria before they are allowed to examine the records. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
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1 | | AN ACT concerning revenue.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Retailers' Occupation Tax Act is amended by |
5 | | changing Section 11 as follows:
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6 | | (35 ILCS 120/11) (from Ch. 120, par. 450)
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7 | | Sec. 11. All information received by the Department from |
8 | | returns filed
under this Act, or from any investigation |
9 | | conducted under this Act, shall
be confidential, except for |
10 | | official purposes, and any person who divulges
any such |
11 | | information in any manner, except in accordance with a proper
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12 | | judicial order or as otherwise provided by law, shall be guilty |
13 | | of a Class
B misdemeanor.
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14 | | Nothing in this Act prevents the Director of Revenue from |
15 | | publishing or
making available to the public the names and |
16 | | addresses of persons filing
returns under this Act, or |
17 | | reasonable statistics concerning the operation
of the tax by |
18 | | grouping the contents of returns so the information in any
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19 | | individual return is not disclosed.
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20 | | Nothing in this Act prevents the Director of Revenue from |
21 | | divulging to
the United States Government or the government of |
22 | | any other state, or any
municipality village that does not levy |
23 | | any real property taxes for village operations
and that |
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1 | | receives more than 60% of its general corporate revenue from
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2 | | taxes under the Use Tax Act, the Service Use Tax Act, the |
3 | | Service
Occupation Tax Act, and the Retailers' Occupation Tax |
4 | | Act , or any
designated officer , authorized agent, or agency |
5 | | thereof, for exclusively official purposes, information
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6 | | received by the Department in administering this Act, provided |
7 | | that such
other governmental agency agrees to divulge requested |
8 | | tax information to
the Department.
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9 | | The Department's furnishing of information derived from a |
10 | | taxpayer's
return or from an investigation conducted under this |
11 | | Act to the surety on a
taxpayer's bond that has been furnished |
12 | | to the Department under this Act,
either to provide notice to |
13 | | such surety of its potential liability under
the bond or, in |
14 | | order to support the Department's demand for payment from
such |
15 | | surety under the bond, is an official purpose within the |
16 | | meaning of
this Section.
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17 | | The furnishing upon request of information obtained by the |
18 | | Department
from returns filed under this Act or investigations |
19 | | conducted under this
Act to the Illinois Liquor Control |
20 | | Commission for official use is deemed to
be an official purpose |
21 | | within the meaning of this Section.
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22 | | Notice to a surety of potential liability shall not be |
23 | | given unless the
taxpayer has first been notified, not less |
24 | | than 10 days prior thereto, of
the Department's intent to so |
25 | | notify the surety.
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26 | | The furnishing upon request of the Auditor General, or his |
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1 | | authorized agents,
for official use, of returns filed and |
2 | | information related thereto under
this Act is deemed to be an |
3 | | official purpose within the meaning of this
Section.
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4 | | Where an appeal or a protest has been filed on behalf of a |
5 | | taxpayer, the
furnishing upon request of the attorney for the |
6 | | taxpayer of returns filed
by the taxpayer and information |
7 | | related thereto under this Act is deemed
to be an official |
8 | | purpose within the meaning of this Section.
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9 | | When requested by resolution of the corporate authorities |
10 | | of a municipality, the Department shall permit any duly |
11 | | authorized officer of employee of the municipality, or any |
12 | | other person designated by that municipality, to examine all of |
13 | | the records reported to the Department pertaining to the |
14 | | collection of use and occupation taxes for the municipality by |
15 | | the Department pursuant to the Reciprocal Agreement on Exchange |
16 | | of Information with the Department. The resolution shall |
17 | | certify that the person designated by the resolution meets all |
18 | | of the following conditions: |
19 | | (1) the person has an existing contract with the |
20 | | municipality to examine those use and occupation tax |
21 | | records; |
22 | | (2) the person is required by that contract to disclose |
23 | | information contained in or derived from those records only |
24 | | to an officer or employee of the municipality who is |
25 | | authorized by the resolution to examine the information; |
26 | | (3) the person is prohibited by the contract from |
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1 | | performing consulting services for any retailer during the |
2 | | term of the contract; and |
3 | | (4) the person is prohibited by the contract from |
4 | | retaining the information contained in or derived from |
5 | | those records after the contract has expired. |
6 | | An officer or employee of the municipality is not required |
7 | | to meet the criteria set forth in items (1) through (4). |
8 | | This Section shall not be construed to allow any officer, |
9 | | employee, or other person authorized or designated by a |
10 | | municipality to examine use and occupation tax records, except |
11 | | as specifically provided in this Section. |
12 | | The furnishing of financial information to a municipality |
13 | | home rule unit or non-home rule unit that has
imposed a tax |
14 | | similar to that imposed by this Act pursuant to
its home rule |
15 | | powers or the successful passage of a public referendum by a |
16 | | majority of the registered voters of the community, or to any
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17 | | village that does not levy any real property taxes for village |
18 | | operations
and that receives more than 60% of its general |
19 | | corporate revenue from
taxes under the Use Tax Act, the Service |
20 | | Use Tax Act, the Service Occupation
Tax Act, and the Retailers' |
21 | | Occupation Tax Act, upon request of the corporate authorities |
22 | | Chief
Executive thereof, is an official purpose within the |
23 | | meaning of this Section,
provided the corporate authorities of |
24 | | the municipality agree home rule unit, non-home rule unit with |
25 | | referendum approval, or village that does not levy any real |
26 | | property
taxes for village operations and that receives more |
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1 | | than 60% of its general
corporate revenue from taxes under the |
2 | | Use Tax Act, the Service Use Tax Act,
the Service Occupation |
3 | | Tax Act, and the Retailers' Occupation Tax Act agrees in
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4 | | writing to the requirements of this Section.
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5 | | For a village that does not levy any real property taxes |
6 | | for village
operations and that receives more than 60% of its |
7 | | general corporate revenue
from taxes under the Use Tax Act, |
8 | | Service Use Tax Act, Service Occupation Tax
Act, and Retailers' |
9 | | Occupation Tax Act, the officers eligible to receive
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10 | | information from the Department of Revenue under this Section |
11 | | are the village
manager and the chief financial officer of the |
12 | | village.
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13 | | Information so provided shall be subject to all |
14 | | confidentiality provisions
of this Section. The written |
15 | | agreement shall provide for reciprocity,
limitations on |
16 | | access, disclosure, and procedures for requesting information.
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17 | | The Department may make available to the Board of Trustees |
18 | | of any Metro
East Mass Transit District information contained |
19 | | on transaction reporting
returns required to be filed under |
20 | | Section 3 of this Act that report sales made
within the |
21 | | boundary of the taxing authority of that Metro East Mass |
22 | | Transit
District, as provided in Section 5.01 of the Local Mass |
23 | | Transit District Act.
The disclosure shall be made pursuant to |
24 | | a written agreement between the
Department and the Board of |
25 | | Trustees of a Metro East Mass Transit District,
which is an |
26 | | official purpose within the meaning of this Section. The |
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1 | | written
agreement between the Department and the Board of |
2 | | Trustees of a Metro East
Mass Transit District shall provide |
3 | | for reciprocity, limitations on access,
disclosure, and |
4 | | procedures for requesting information. Information so provided
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5 | | shall be subject to all confidentiality provisions of this |
6 | | Section.
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7 | | The Director may make available to any State agency, |
8 | | including the
Illinois Supreme Court, which licenses persons to |
9 | | engage in any occupation,
information that a person licensed by |
10 | | such agency has failed to file
returns under this Act or pay |
11 | | the tax, penalty and interest shown therein,
or has failed to |
12 | | pay any final assessment of tax, penalty or interest due
under |
13 | | this Act.
The Director may make available to any State agency, |
14 | | including the Illinois
Supreme
Court, information regarding |
15 | | whether a bidder, contractor, or an affiliate of a
bidder or
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16 | | contractor has failed to collect and remit Illinois Use tax on |
17 | | sales into
Illinois, or any tax
under this Act or pay the tax, |
18 | | penalty, and interest shown therein, or has
failed to pay any
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19 | | final assessment of tax, penalty, or interest due under this |
20 | | Act, for the
limited purpose of
enforcing bidder and contractor |
21 | | certifications. The Director may make available
to units
of |
22 | | local government and school districts that require bidder and |
23 | | contractor
certifications,
as set forth in Sections 50-11 and |
24 | | 50-12 of the Illinois Procurement Code,
information
regarding |
25 | | whether a bidder, contractor, or an affiliate of a bidder or
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26 | | contractor has failed
to collect and remit Illinois Use tax on |
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1 | | sales into Illinois, file returns under
this Act, or
pay the |
2 | | tax, penalty, and interest shown therein, or has failed to pay |
3 | | any final
assessment
of tax, penalty, or interest due under |
4 | | this Act, for the limited purpose of
enforcing bidder
and |
5 | | contractor certifications. For purposes of this Section, the |
6 | | term
"affiliate" means any
entity that (1) directly, |
7 | | indirectly, or constructively controls another
entity,
(2) is |
8 | | directly,
indirectly, or constructively controlled by another |
9 | | entity, or (3) is subject
to
the control of
a common entity. |
10 | | For purposes of this Section, an entity controls another
entity
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11 | | if it owns,
directly or individually, more than 10% of the |
12 | | voting securities of that
entity.
As used in
this Section, the |
13 | | term "voting security" means a security that (1) confers upon
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14 | | the holder
the right to vote for the election of members of the |
15 | | board of directors or
similar governing
body of the business or |
16 | | (2) is convertible into, or entitles the holder to
receive upon |
17 | | its
exercise, a security that confers such a right to vote. A |
18 | | general partnership
interest is a
voting security.
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19 | | The Director may make available to any State agency, |
20 | | including the
Illinois
Supreme Court, units of local |
21 | | government, and school districts, information
regarding
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22 | | whether a bidder or contractor is an affiliate of a person who |
23 | | is not
collecting
and
remitting Illinois Use taxes for the |
24 | | limited purpose of enforcing bidder and
contractor
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25 | | certifications.
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26 | | The Director may also make available to the Secretary of |
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1 | | State
information that a limited liability company, which has |
2 | | filed articles of
organization with the Secretary of State, or |
3 | | corporation which has been
issued a certificate of |
4 | | incorporation by the Secretary of State has failed to
file |
5 | | returns under this Act or pay the tax, penalty and interest |
6 | | shown therein,
or has failed to pay any final assessment of |
7 | | tax, penalty or interest due under
this Act. An assessment is |
8 | | final when all proceedings in court for review of
such |
9 | | assessment have terminated or the time for the taking thereof |
10 | | has expired
without such proceedings being instituted.
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11 | | The Director shall make available for public inspection in |
12 | | the Department's
principal office and for publication, at cost, |
13 | | administrative decisions issued
on or after January 1, 1995. |
14 | | These decisions are to be made available in a
manner so that |
15 | | the following taxpayer information is not disclosed:
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16 | | (1) The names, addresses, and identification numbers |
17 | | of the taxpayer,
related entities, and employees.
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18 | | (2) At the sole discretion of the Director, trade |
19 | | secrets
or other confidential information identified as |
20 | | such by the taxpayer, no later
than 30 days after receipt |
21 | | of an administrative decision, by such means as the
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22 | | Department shall provide by rule.
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23 | | The Director shall determine the appropriate extent of the |
24 | | deletions allowed
in paragraph (2). In the event the taxpayer |
25 | | does not submit deletions, the
Director shall make only the |
26 | | deletions specified in paragraph (1).
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1 | | The Director shall make available for public inspection and |
2 | | publication an
administrative decision within 180 days after |
3 | | the issuance of the
administrative decision. The term |
4 | | "administrative decision" has the same
meaning as defined in |
5 | | Section 3-101 of Article III of the Code of Civil
Procedure. |
6 | | Costs collected under this Section shall be paid into the Tax
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7 | | Compliance and Administration Fund.
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8 | | Nothing contained in this Act shall prevent the Director |
9 | | from divulging
information to any person pursuant to a request |
10 | | or authorization made by the
taxpayer or by an authorized |
11 | | representative of the taxpayer.
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12 | | (Source: P.A. 93-25, eff. 6-20-03; 93-939, eff. 8-13-04; |
13 | | 94-1074, eff. 12-26-06.)
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14 | | Section 10. The Illinois Municipal Code is amended by |
15 | | changing Section 8-11-16 as follows:
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16 | | (65 ILCS 5/8-11-16) (from Ch. 24, par. 8-11-16)
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17 | | Sec. 8-11-16.
The Department of Revenue shall submit to |
18 | | each
municipality each year a list of those persons within that |
19 | | municipality who
are registered with the Department under the |
20 | | Retailers' Occupation Tax Act.
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21 | | The list shall indicate the street address of each retail |
22 | | outlet operated
in the municipality by the persons so |
23 | | registered and the name under which
the retailer conducts |
24 | | business, if different from the corporate name. Any duly |
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1 | | authorized officer or employee of the municipality, or any |
2 | | designated authorized agent The
municipal clerk shall forward |
3 | | any changes or corrections to the list to the
Department within |
4 | | 6 months. The Department shall update and correct its
records |
5 | | to reflect such changes, or notify the municipality in writing |
6 | | that
the suggested changes are erroneous, within 90 days. The |
7 | | Department shall
also provide monthly updates to each |
8 | | municipality showing additions or
deletions to the list of |
9 | | retail outlets within the municipality. The
Department shall |
10 | | provide a copy of the annual listing herein provided for
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11 | | contiguous jurisdictions when a municipality so requests. The |
12 | | list
required by this Section shall contain only the names and |
13 | | street addresses
of persons who are registered with the |
14 | | Department and shall not include the
amount of tax paid by such |
15 | | persons. The list required by this Section
shall be provided to |
16 | | each municipality no later than September 1 annually.
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17 | | When certifying the amount of a monthly disbursement to a |
18 | | municipality
under Section 8-11-1, 8-11-5, 8-11-6 of this Act |
19 | | or Section 6z-18 of "An
Act in relation to State finance", the |
20 | | Department shall increase or
decrease such amount by an amount |
21 | | necessary to offset any misallocation of
previous |
22 | | disbursements. The offset amount shall be the amount |
23 | | erroneously
disbursed within the previous 6 months from the |
24 | | time a misallocation is
discovered.
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25 | | The Department of Revenue must upon the request of any |
26 | | municipality
received pursuant to the provisions of this |
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1 | | paragraph furnish to such
municipality data setting forth the |
2 | | aggregate amount of retailers'
occupation tax collected on |
3 | | behalf of such municipality from any shopping
center identified |
4 | | in such request and located within such municipality for
each |
5 | | month beginning with the first month following the month within |
6 | | which
such a request is received by the Department, provided |
7 | | that such data may
be provided only with respect to shopping |
8 | | centers (1) which consist of
50 or more persons registered with |
9 | | the Department to pay Retailers'
Occupation Tax, and (2) where |
10 | | the developers or owners thereof or their
predecessors in |
11 | | interest have entered into written agreements with the
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12 | | municipality to transfer property to or perform services for or |
13 | | on behalf
of such municipality in exchange for payments based |
14 | | solely or in part on
the amount of retailers' occupation tax |
15 | | collected on behalf of the municipality
from persons within |
16 | | such shopping centers. Data given pursuant to this
paragraph |
17 | | shall not identify by amounts the individual sources of such
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18 | | taxes. A request for data pursuant to this paragraph shall |
19 | | first be
submitted to the Department of Revenue by the |
20 | | Municipal Clerk, City Council
or Village Board of Trustees. The |
21 | | Department of Revenue shall review each
such request to |
22 | | determine whether the requirements of item (2) of the first
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23 | | sentence of this paragraph have been met and, within 30 days |
24 | | following its
receipt of such a request, shall either certify |
25 | | that the request meets such
requirements, or notify the person |
26 | | submitting the request that the request
does not meet such |
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1 | | requirements.
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2 | | As used in this Section, "Municipal" or "Municipality" |
3 | | means or refers to
a city, village or incorporated town, |
4 | | including an incorporated town which
has superseded a civil |
5 | | township, and "shopping center" means a group of
retail stores |
6 | | and other business and service establishments in an
integrated |
7 | | building arrangement operated under common ownership or |
8 | | diverse
ownership under unified control involving common |
9 | | parking areas and mutual
easements.
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10 | | (Source: P.A. 91-51, eff. 6-30-99.)
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11 | | Section 99. Effective date. This Act takes effect upon |
12 | | becoming law.
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