100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3600

 

Introduced , by Rep. LaToya Greenwood

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-10
35 ILCS 105/9  from Ch. 120, par. 439.9
35 ILCS 110/3-10  from Ch. 120, par. 439.33-10
35 ILCS 110/9  from Ch. 120, par. 439.39
35 ILCS 115/3-10  from Ch. 120, par. 439.103-10
35 ILCS 115/9  from Ch. 120, par. 439.109
35 ILCS 120/2-10
35 ILCS 120/3  from Ch. 120, par. 442

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reduces the rate of tax on diapers and baby wipes to 1% (currently, 6.25%). Makes changes concerning the distribution of the proceeds from the tax imposed on diapers and baby wipes.


LRB100 09169 HLH 19324 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3600LRB100 09169 HLH 19324 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Sections
53-10 and 9 as follows:
 
6    (35 ILCS 105/3-10)
7    Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9either the selling price or the fair market value, if any, of
10the tangible personal property. In all cases where property
11functionally used or consumed is the same as the property that
12was purchased at retail, then the tax is imposed on the selling
13price of the property. In all cases where property functionally
14used or consumed is a by-product or waste product that has been
15refined, manufactured, or produced from property purchased at
16retail, then the tax is imposed on the lower of the fair market
17value, if any, of the specific property so used in this State
18or on the selling price of the property purchased at retail.
19For purposes of this Section "fair market value" means the
20price at which property would change hands between a willing
21buyer and a willing seller, neither being under any compulsion
22to buy or sell and both having reasonable knowledge of the
23relevant facts. The fair market value shall be established by

 

 

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1Illinois sales by the taxpayer of the same property as that
2functionally used or consumed, or if there are no such sales by
3the taxpayer, then comparable sales or purchases of property of
4like kind and character in Illinois.
5    Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9    Beginning on August 6, 2010 through August 15, 2010, with
10respect to sales tax holiday items as defined in Section 3-6 of
11this Act, the tax is imposed at the rate of 1.25%.
12    With respect to gasohol, the tax imposed by this Act
13applies to (i) 70% of the proceeds of sales made on or after
14January 1, 1990, and before July 1, 2003, (ii) 80% of the
15proceeds of sales made on or after July 1, 2003 and on or
16before December 31, 2018, and (iii) 100% of the proceeds of
17sales made thereafter. If, at any time, however, the tax under
18this Act on sales of gasohol is imposed at the rate of 1.25%,
19then the tax imposed by this Act applies to 100% of the
20proceeds of sales of gasohol made during that time.
21    With respect to majority blended ethanol fuel, the tax
22imposed by this Act does not apply to the proceeds of sales
23made on or after July 1, 2003 and on or before December 31,
242018 but applies to 100% of the proceeds of sales made
25thereafter.
26    With respect to biodiesel blends with no less than 1% and

 

 

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1no more than 10% biodiesel, the tax imposed by this Act applies
2to (i) 80% of the proceeds of sales made on or after July 1,
32003 and on or before December 31, 2018 and (ii) 100% of the
4proceeds of sales made thereafter. If, at any time, however,
5the tax under this Act on sales of biodiesel blends with no
6less than 1% and no more than 10% biodiesel is imposed at the
7rate of 1.25%, then the tax imposed by this Act applies to 100%
8of the proceeds of sales of biodiesel blends with no less than
91% and no more than 10% biodiesel made during that time.
10    With respect to 100% biodiesel and biodiesel blends with
11more than 10% but no more than 99% biodiesel, the tax imposed
12by this Act does not apply to the proceeds of sales made on or
13after July 1, 2003 and on or before December 31, 2018 but
14applies to 100% of the proceeds of sales made thereafter.
15    With respect to food for human consumption that is to be
16consumed off the premises where it is sold (other than
17alcoholic beverages, soft drinks, and food that has been
18prepared for immediate consumption) and prescription and
19nonprescription medicines, drugs, medical appliances, products
20classified as Class III medical devices by the United States
21Food and Drug Administration that are used for cancer treatment
22pursuant to a prescription, as well as any accessories and
23components related to those devices, modifications to a motor
24vehicle for the purpose of rendering it usable by a person with
25a disability, diapers, baby wipes, and insulin, urine testing
26materials, syringes, and needles used by diabetics, for human

 

 

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1use, the tax is imposed at the rate of 1%. For the purposes of
2this Section, until September 1, 2009: the term "soft drinks"
3means any complete, finished, ready-to-use, non-alcoholic
4drink, whether carbonated or not, including but not limited to
5soda water, cola, fruit juice, vegetable juice, carbonated
6water, and all other preparations commonly known as soft drinks
7of whatever kind or description that are contained in any
8closed or sealed bottle, can, carton, or container, regardless
9of size; but "soft drinks" does not include coffee, tea,
10non-carbonated water, infant formula, milk or milk products as
11defined in the Grade A Pasteurized Milk and Milk Products Act,
12or drinks containing 50% or more natural fruit or vegetable
13juice.
14    Notwithstanding any other provisions of this Act,
15beginning September 1, 2009, "soft drinks" means non-alcoholic
16beverages that contain natural or artificial sweeteners. "Soft
17drinks" do not include beverages that contain milk or milk
18products, soy, rice or similar milk substitutes, or greater
19than 50% of vegetable or fruit juice by volume.
20    Until August 1, 2009, and notwithstanding any other
21provisions of this Act, "food for human consumption that is to
22be consumed off the premises where it is sold" includes all
23food sold through a vending machine, except soft drinks and
24food products that are dispensed hot from a vending machine,
25regardless of the location of the vending machine. Beginning
26August 1, 2009, and notwithstanding any other provisions of

 

 

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1this Act, "food for human consumption that is to be consumed
2off the premises where it is sold" includes all food sold
3through a vending machine, except soft drinks, candy, and food
4products that are dispensed hot from a vending machine,
5regardless of the location of the vending machine.
6    Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "food for human consumption that
8is to be consumed off the premises where it is sold" does not
9include candy. For purposes of this Section, "candy" means a
10preparation of sugar, honey, or other natural or artificial
11sweeteners in combination with chocolate, fruits, nuts or other
12ingredients or flavorings in the form of bars, drops, or
13pieces. "Candy" does not include any preparation that contains
14flour or requires refrigeration.
15    Notwithstanding any other provisions of this Act,
16beginning September 1, 2009, "nonprescription medicines and
17drugs" does not include grooming and hygiene products. For
18purposes of this Section, "grooming and hygiene products"
19includes, but is not limited to, soaps and cleaning solutions,
20shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
21lotions and screens, unless those products are available by
22prescription only, regardless of whether the products meet the
23definition of "over-the-counter-drugs". For the purposes of
24this paragraph, "over-the-counter-drug" means a drug for human
25use that contains a label that identifies the product as a drug
26as required by 21 C.F.R. 201.66. The "over-the-counter-drug"

 

 

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1label includes:
2        (A) A "Drug Facts" panel; or
3        (B) A statement of the "active ingredient(s)" with a
4    list of those ingredients contained in the compound,
5    substance or preparation.
6    Beginning on the effective date of this amendatory Act of
7the 98th General Assembly, "prescription and nonprescription
8medicines and drugs" includes medical cannabis purchased from a
9registered dispensing organization under the Compassionate Use
10of Medical Cannabis Pilot Program Act.
11    If the property that is purchased at retail from a retailer
12is acquired outside Illinois and used outside Illinois before
13being brought to Illinois for use here and is taxable under
14this Act, the "selling price" on which the tax is computed
15shall be reduced by an amount that represents a reasonable
16allowance for depreciation for the period of prior out-of-state
17use.
18(Source: P.A. 98-122, eff. 1-1-14; 99-143, eff. 7-27-15;
1999-858, eff. 8-19-16.)
 
20    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
21    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
22and trailers that are required to be registered with an agency
23of this State, each retailer required or authorized to collect
24the tax imposed by this Act shall pay to the Department the
25amount of such tax (except as otherwise provided) at the time

 

 

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1when he is required to file his return for the period during
2which such tax was collected, less a discount of 2.1% prior to
3January 1, 1990, and 1.75% on and after January 1, 1990, or $5
4per calendar year, whichever is greater, which is allowed to
5reimburse the retailer for expenses incurred in collecting the
6tax, keeping records, preparing and filing returns, remitting
7the tax and supplying data to the Department on request. In the
8case of retailers who report and pay the tax on a transaction
9by transaction basis, as provided in this Section, such
10discount shall be taken with each such tax remittance instead
11of when such retailer files his periodic return. The Department
12may disallow the discount for retailers whose certificate of
13registration is revoked at the time the return is filed, but
14only if the Department's decision to revoke the certificate of
15registration has become final. A retailer need not remit that
16part of any tax collected by him to the extent that he is
17required to remit and does remit the tax imposed by the
18Retailers' Occupation Tax Act, with respect to the sale of the
19same property.
20    Where such tangible personal property is sold under a
21conditional sales contract, or under any other form of sale
22wherein the payment of the principal sum, or a part thereof, is
23extended beyond the close of the period for which the return is
24filed, the retailer, in collecting the tax (except as to motor
25vehicles, watercraft, aircraft, and trailers that are required
26to be registered with an agency of this State), may collect for

 

 

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1each tax return period, only the tax applicable to that part of
2the selling price actually received during such tax return
3period.
4    Except as provided in this Section, on or before the
5twentieth day of each calendar month, such retailer shall file
6a return for the preceding calendar month. Such return shall be
7filed on forms prescribed by the Department and shall furnish
8such information as the Department may reasonably require.
9    The Department may require returns to be filed on a
10quarterly basis. If so required, a return for each calendar
11quarter shall be filed on or before the twentieth day of the
12calendar month following the end of such calendar quarter. The
13taxpayer shall also file a return with the Department for each
14of the first two months of each calendar quarter, on or before
15the twentieth day of the following calendar month, stating:
16        1. The name of the seller;
17        2. The address of the principal place of business from
18    which he engages in the business of selling tangible
19    personal property at retail in this State;
20        3. The total amount of taxable receipts received by him
21    during the preceding calendar month from sales of tangible
22    personal property by him during such preceding calendar
23    month, including receipts from charge and time sales, but
24    less all deductions allowed by law;
25        4. The amount of credit provided in Section 2d of this
26    Act;

 

 

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1        5. The amount of tax due;
2        5-5. The signature of the taxpayer; and
3        6. Such other reasonable information as the Department
4    may require.
5    If a taxpayer fails to sign a return within 30 days after
6the proper notice and demand for signature by the Department,
7the return shall be considered valid and any amount shown to be
8due on the return shall be deemed assessed.
9    Beginning October 1, 1993, a taxpayer who has an average
10monthly tax liability of $150,000 or more shall make all
11payments required by rules of the Department by electronic
12funds transfer. Beginning October 1, 1994, a taxpayer who has
13an average monthly tax liability of $100,000 or more shall make
14all payments required by rules of the Department by electronic
15funds transfer. Beginning October 1, 1995, a taxpayer who has
16an average monthly tax liability of $50,000 or more shall make
17all payments required by rules of the Department by electronic
18funds transfer. Beginning October 1, 2000, a taxpayer who has
19an annual tax liability of $200,000 or more shall make all
20payments required by rules of the Department by electronic
21funds transfer. The term "annual tax liability" shall be the
22sum of the taxpayer's liabilities under this Act, and under all
23other State and local occupation and use tax laws administered
24by the Department, for the immediately preceding calendar year.
25The term "average monthly tax liability" means the sum of the
26taxpayer's liabilities under this Act, and under all other

 

 

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1State and local occupation and use tax laws administered by the
2Department, for the immediately preceding calendar year
3divided by 12. Beginning on October 1, 2002, a taxpayer who has
4a tax liability in the amount set forth in subsection (b) of
5Section 2505-210 of the Department of Revenue Law shall make
6all payments required by rules of the Department by electronic
7funds transfer.
8    Before August 1 of each year beginning in 1993, the
9Department shall notify all taxpayers required to make payments
10by electronic funds transfer. All taxpayers required to make
11payments by electronic funds transfer shall make those payments
12for a minimum of one year beginning on October 1.
13    Any taxpayer not required to make payments by electronic
14funds transfer may make payments by electronic funds transfer
15with the permission of the Department.
16    All taxpayers required to make payment by electronic funds
17transfer and any taxpayers authorized to voluntarily make
18payments by electronic funds transfer shall make those payments
19in the manner authorized by the Department.
20    The Department shall adopt such rules as are necessary to
21effectuate a program of electronic funds transfer and the
22requirements of this Section.
23    Before October 1, 2000, if the taxpayer's average monthly
24tax liability to the Department under this Act, the Retailers'
25Occupation Tax Act, the Service Occupation Tax Act, the Service
26Use Tax Act was $10,000 or more during the preceding 4 complete

 

 

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1calendar quarters, he shall file a return with the Department
2each month by the 20th day of the month next following the
3month during which such tax liability is incurred and shall
4make payments to the Department on or before the 7th, 15th,
522nd and last day of the month during which such liability is
6incurred. On and after October 1, 2000, if the taxpayer's
7average monthly tax liability to the Department under this Act,
8the Retailers' Occupation Tax Act, the Service Occupation Tax
9Act, and the Service Use Tax Act was $20,000 or more during the
10preceding 4 complete calendar quarters, he shall file a return
11with the Department each month by the 20th day of the month
12next following the month during which such tax liability is
13incurred and shall make payment to the Department on or before
14the 7th, 15th, 22nd and last day of the month during which such
15liability is incurred. If the month during which such tax
16liability is incurred began prior to January 1, 1985, each
17payment shall be in an amount equal to 1/4 of the taxpayer's
18actual liability for the month or an amount set by the
19Department not to exceed 1/4 of the average monthly liability
20of the taxpayer to the Department for the preceding 4 complete
21calendar quarters (excluding the month of highest liability and
22the month of lowest liability in such 4 quarter period). If the
23month during which such tax liability is incurred begins on or
24after January 1, 1985, and prior to January 1, 1987, each
25payment shall be in an amount equal to 22.5% of the taxpayer's
26actual liability for the month or 27.5% of the taxpayer's

 

 

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1liability for the same calendar month of the preceding year. If
2the month during which such tax liability is incurred begins on
3or after January 1, 1987, and prior to January 1, 1988, each
4payment shall be in an amount equal to 22.5% of the taxpayer's
5actual liability for the month or 26.25% of the taxpayer's
6liability for the same calendar month of the preceding year. If
7the month during which such tax liability is incurred begins on
8or after January 1, 1988, and prior to January 1, 1989, or
9begins on or after January 1, 1996, each payment shall be in an
10amount equal to 22.5% of the taxpayer's actual liability for
11the month or 25% of the taxpayer's liability for the same
12calendar month of the preceding year. If the month during which
13such tax liability is incurred begins on or after January 1,
141989, and prior to January 1, 1996, each payment shall be in an
15amount equal to 22.5% of the taxpayer's actual liability for
16the month or 25% of the taxpayer's liability for the same
17calendar month of the preceding year or 100% of the taxpayer's
18actual liability for the quarter monthly reporting period. The
19amount of such quarter monthly payments shall be credited
20against the final tax liability of the taxpayer's return for
21that month. Before October 1, 2000, once applicable, the
22requirement of the making of quarter monthly payments to the
23Department shall continue until such taxpayer's average
24monthly liability to the Department during the preceding 4
25complete calendar quarters (excluding the month of highest
26liability and the month of lowest liability) is less than

 

 

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1$9,000, or until such taxpayer's average monthly liability to
2the Department as computed for each calendar quarter of the 4
3preceding complete calendar quarter period is less than
4$10,000. However, if a taxpayer can show the Department that a
5substantial change in the taxpayer's business has occurred
6which causes the taxpayer to anticipate that his average
7monthly tax liability for the reasonably foreseeable future
8will fall below the $10,000 threshold stated above, then such
9taxpayer may petition the Department for change in such
10taxpayer's reporting status. On and after October 1, 2000, once
11applicable, the requirement of the making of quarter monthly
12payments to the Department shall continue until such taxpayer's
13average monthly liability to the Department during the
14preceding 4 complete calendar quarters (excluding the month of
15highest liability and the month of lowest liability) is less
16than $19,000 or until such taxpayer's average monthly liability
17to the Department as computed for each calendar quarter of the
184 preceding complete calendar quarter period is less than
19$20,000. However, if a taxpayer can show the Department that a
20substantial change in the taxpayer's business has occurred
21which causes the taxpayer to anticipate that his average
22monthly tax liability for the reasonably foreseeable future
23will fall below the $20,000 threshold stated above, then such
24taxpayer may petition the Department for a change in such
25taxpayer's reporting status. The Department shall change such
26taxpayer's reporting status unless it finds that such change is

 

 

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1seasonal in nature and not likely to be long term. If any such
2quarter monthly payment is not paid at the time or in the
3amount required by this Section, then the taxpayer shall be
4liable for penalties and interest on the difference between the
5minimum amount due and the amount of such quarter monthly
6payment actually and timely paid, except insofar as the
7taxpayer has previously made payments for that month to the
8Department in excess of the minimum payments previously due as
9provided in this Section. The Department shall make reasonable
10rules and regulations to govern the quarter monthly payment
11amount and quarter monthly payment dates for taxpayers who file
12on other than a calendar monthly basis.
13    If any such payment provided for in this Section exceeds
14the taxpayer's liabilities under this Act, the Retailers'
15Occupation Tax Act, the Service Occupation Tax Act and the
16Service Use Tax Act, as shown by an original monthly return,
17the Department shall issue to the taxpayer a credit memorandum
18no later than 30 days after the date of payment, which
19memorandum may be submitted by the taxpayer to the Department
20in payment of tax liability subsequently to be remitted by the
21taxpayer to the Department or be assigned by the taxpayer to a
22similar taxpayer under this Act, the Retailers' Occupation Tax
23Act, the Service Occupation Tax Act or the Service Use Tax Act,
24in accordance with reasonable rules and regulations to be
25prescribed by the Department, except that if such excess
26payment is shown on an original monthly return and is made

 

 

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1after December 31, 1986, no credit memorandum shall be issued,
2unless requested by the taxpayer. If no such request is made,
3the taxpayer may credit such excess payment against tax
4liability subsequently to be remitted by the taxpayer to the
5Department under this Act, the Retailers' Occupation Tax Act,
6the Service Occupation Tax Act or the Service Use Tax Act, in
7accordance with reasonable rules and regulations prescribed by
8the Department. If the Department subsequently determines that
9all or any part of the credit taken was not actually due to the
10taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
11be reduced by 2.1% or 1.75% of the difference between the
12credit taken and that actually due, and the taxpayer shall be
13liable for penalties and interest on such difference.
14    If the retailer is otherwise required to file a monthly
15return and if the retailer's average monthly tax liability to
16the Department does not exceed $200, the Department may
17authorize his returns to be filed on a quarter annual basis,
18with the return for January, February, and March of a given
19year being due by April 20 of such year; with the return for
20April, May and June of a given year being due by July 20 of such
21year; with the return for July, August and September of a given
22year being due by October 20 of such year, and with the return
23for October, November and December of a given year being due by
24January 20 of the following year.
25    If the retailer is otherwise required to file a monthly or
26quarterly return and if the retailer's average monthly tax

 

 

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1liability to the Department does not exceed $50, the Department
2may authorize his returns to be filed on an annual basis, with
3the return for a given year being due by January 20 of the
4following year.
5    Such quarter annual and annual returns, as to form and
6substance, shall be subject to the same requirements as monthly
7returns.
8    Notwithstanding any other provision in this Act concerning
9the time within which a retailer may file his return, in the
10case of any retailer who ceases to engage in a kind of business
11which makes him responsible for filing returns under this Act,
12such retailer shall file a final return under this Act with the
13Department not more than one month after discontinuing such
14business.
15    In addition, with respect to motor vehicles, watercraft,
16aircraft, and trailers that are required to be registered with
17an agency of this State, every retailer selling this kind of
18tangible personal property shall file, with the Department,
19upon a form to be prescribed and supplied by the Department, a
20separate return for each such item of tangible personal
21property which the retailer sells, except that if, in the same
22transaction, (i) a retailer of aircraft, watercraft, motor
23vehicles or trailers transfers more than one aircraft,
24watercraft, motor vehicle or trailer to another aircraft,
25watercraft, motor vehicle or trailer retailer for the purpose
26of resale or (ii) a retailer of aircraft, watercraft, motor

 

 

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1vehicles, or trailers transfers more than one aircraft,
2watercraft, motor vehicle, or trailer to a purchaser for use as
3a qualifying rolling stock as provided in Section 3-55 of this
4Act, then that seller may report the transfer of all the
5aircraft, watercraft, motor vehicles or trailers involved in
6that transaction to the Department on the same uniform
7invoice-transaction reporting return form. For purposes of
8this Section, "watercraft" means a Class 2, Class 3, or Class 4
9watercraft as defined in Section 3-2 of the Boat Registration
10and Safety Act, a personal watercraft, or any boat equipped
11with an inboard motor.
12    The transaction reporting return in the case of motor
13vehicles or trailers that are required to be registered with an
14agency of this State, shall be the same document as the Uniform
15Invoice referred to in Section 5-402 of the Illinois Vehicle
16Code and must show the name and address of the seller; the name
17and address of the purchaser; the amount of the selling price
18including the amount allowed by the retailer for traded-in
19property, if any; the amount allowed by the retailer for the
20traded-in tangible personal property, if any, to the extent to
21which Section 2 of this Act allows an exemption for the value
22of traded-in property; the balance payable after deducting such
23trade-in allowance from the total selling price; the amount of
24tax due from the retailer with respect to such transaction; the
25amount of tax collected from the purchaser by the retailer on
26such transaction (or satisfactory evidence that such tax is not

 

 

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1due in that particular instance, if that is claimed to be the
2fact); the place and date of the sale; a sufficient
3identification of the property sold; such other information as
4is required in Section 5-402 of the Illinois Vehicle Code, and
5such other information as the Department may reasonably
6require.
7    The transaction reporting return in the case of watercraft
8and aircraft must show the name and address of the seller; the
9name and address of the purchaser; the amount of the selling
10price including the amount allowed by the retailer for
11traded-in property, if any; the amount allowed by the retailer
12for the traded-in tangible personal property, if any, to the
13extent to which Section 2 of this Act allows an exemption for
14the value of traded-in property; the balance payable after
15deducting such trade-in allowance from the total selling price;
16the amount of tax due from the retailer with respect to such
17transaction; the amount of tax collected from the purchaser by
18the retailer on such transaction (or satisfactory evidence that
19such tax is not due in that particular instance, if that is
20claimed to be the fact); the place and date of the sale, a
21sufficient identification of the property sold, and such other
22information as the Department may reasonably require.
23    Such transaction reporting return shall be filed not later
24than 20 days after the date of delivery of the item that is
25being sold, but may be filed by the retailer at any time sooner
26than that if he chooses to do so. The transaction reporting

 

 

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1return and tax remittance or proof of exemption from the tax
2that is imposed by this Act may be transmitted to the
3Department by way of the State agency with which, or State
4officer with whom, the tangible personal property must be
5titled or registered (if titling or registration is required)
6if the Department and such agency or State officer determine
7that this procedure will expedite the processing of
8applications for title or registration.
9    With each such transaction reporting return, the retailer
10shall remit the proper amount of tax due (or shall submit
11satisfactory evidence that the sale is not taxable if that is
12the case), to the Department or its agents, whereupon the
13Department shall issue, in the purchaser's name, a tax receipt
14(or a certificate of exemption if the Department is satisfied
15that the particular sale is tax exempt) which such purchaser
16may submit to the agency with which, or State officer with
17whom, he must title or register the tangible personal property
18that is involved (if titling or registration is required) in
19support of such purchaser's application for an Illinois
20certificate or other evidence of title or registration to such
21tangible personal property.
22    No retailer's failure or refusal to remit tax under this
23Act precludes a user, who has paid the proper tax to the
24retailer, from obtaining his certificate of title or other
25evidence of title or registration (if titling or registration
26is required) upon satisfying the Department that such user has

 

 

HB3600- 20 -LRB100 09169 HLH 19324 b

1paid the proper tax (if tax is due) to the retailer. The
2Department shall adopt appropriate rules to carry out the
3mandate of this paragraph.
4    If the user who would otherwise pay tax to the retailer
5wants the transaction reporting return filed and the payment of
6tax or proof of exemption made to the Department before the
7retailer is willing to take these actions and such user has not
8paid the tax to the retailer, such user may certify to the fact
9of such delay by the retailer, and may (upon the Department
10being satisfied of the truth of such certification) transmit
11the information required by the transaction reporting return
12and the remittance for tax or proof of exemption directly to
13the Department and obtain his tax receipt or exemption
14determination, in which event the transaction reporting return
15and tax remittance (if a tax payment was required) shall be
16credited by the Department to the proper retailer's account
17with the Department, but without the 2.1% or 1.75% discount
18provided for in this Section being allowed. When the user pays
19the tax directly to the Department, he shall pay the tax in the
20same amount and in the same form in which it would be remitted
21if the tax had been remitted to the Department by the retailer.
22    Where a retailer collects the tax with respect to the
23selling price of tangible personal property which he sells and
24the purchaser thereafter returns such tangible personal
25property and the retailer refunds the selling price thereof to
26the purchaser, such retailer shall also refund, to the

 

 

HB3600- 21 -LRB100 09169 HLH 19324 b

1purchaser, the tax so collected from the purchaser. When filing
2his return for the period in which he refunds such tax to the
3purchaser, the retailer may deduct the amount of the tax so
4refunded by him to the purchaser from any other use tax which
5such retailer may be required to pay or remit to the
6Department, as shown by such return, if the amount of the tax
7to be deducted was previously remitted to the Department by
8such retailer. If the retailer has not previously remitted the
9amount of such tax to the Department, he is entitled to no
10deduction under this Act upon refunding such tax to the
11purchaser.
12    Any retailer filing a return under this Section shall also
13include (for the purpose of paying tax thereon) the total tax
14covered by such return upon the selling price of tangible
15personal property purchased by him at retail from a retailer,
16but as to which the tax imposed by this Act was not collected
17from the retailer filing such return, and such retailer shall
18remit the amount of such tax to the Department when filing such
19return.
20    If experience indicates such action to be practicable, the
21Department may prescribe and furnish a combination or joint
22return which will enable retailers, who are required to file
23returns hereunder and also under the Retailers' Occupation Tax
24Act, to furnish all the return information required by both
25Acts on the one form.
26    Where the retailer has more than one business registered

 

 

HB3600- 22 -LRB100 09169 HLH 19324 b

1with the Department under separate registration under this Act,
2such retailer may not file each return that is due as a single
3return covering all such registered businesses, but shall file
4separate returns for each such registered business.
5    Beginning January 1, 1990, each month the Department shall
6pay into the State and Local Sales Tax Reform Fund, a special
7fund in the State Treasury which is hereby created, the net
8revenue realized for the preceding month from the 1% tax on
9sales of food for human consumption which is to be consumed off
10the premises where it is sold (other than alcoholic beverages,
11soft drinks and food which has been prepared for immediate
12consumption) and prescription and nonprescription medicines,
13drugs, medical appliances, products classified as Class III
14medical devices by the United States Food and Drug
15Administration that are used for cancer treatment pursuant to a
16prescription, as well as any accessories and components related
17to those devices, diapers, baby wipes, and insulin, urine
18testing materials, syringes and needles used by diabetics.
19    Beginning January 1, 1990, each month the Department shall
20pay into the County and Mass Transit District Fund 4% of the
21net revenue realized for the preceding month from the 6.25%
22general rate on the selling price of tangible personal property
23which is purchased outside Illinois at retail from a retailer
24and which is titled or registered by an agency of this State's
25government.
26    Beginning January 1, 1990, each month the Department shall

 

 

HB3600- 23 -LRB100 09169 HLH 19324 b

1pay into the State and Local Sales Tax Reform Fund, a special
2fund in the State Treasury, 20% of the net revenue realized for
3the preceding month from the 6.25% general rate on the selling
4price of tangible personal property, other than tangible
5personal property which is purchased outside Illinois at retail
6from a retailer and which is titled or registered by an agency
7of this State's government.
8    Beginning August 1, 2000, each month the Department shall
9pay into the State and Local Sales Tax Reform Fund 100% of the
10net revenue realized for the preceding month from the 1.25%
11rate on the selling price of motor fuel and gasohol. Beginning
12September 1, 2010, each month the Department shall pay into the
13State and Local Sales Tax Reform Fund 100% of the net revenue
14realized for the preceding month from the 1.25% rate on the
15selling price of sales tax holiday items.
16    Beginning January 1, 1990, each month the Department shall
17pay into the Local Government Tax Fund 16% of the net revenue
18realized for the preceding month from the 6.25% general rate on
19the selling price of tangible personal property which is
20purchased outside Illinois at retail from a retailer and which
21is titled or registered by an agency of this State's
22government.
23    Beginning October 1, 2009, each month the Department shall
24pay into the Capital Projects Fund an amount that is equal to
25an amount estimated by the Department to represent 80% of the
26net revenue realized for the preceding month from the sale of

 

 

HB3600- 24 -LRB100 09169 HLH 19324 b

1candy, grooming and hygiene products, and soft drinks that had
2been taxed at a rate of 1% prior to September 1, 2009 but that
3are now taxed at 6.25%.
4    Beginning July 1, 2011, each month the Department shall pay
5into the Clean Air Act Permit Fund 80% of the net revenue
6realized for the preceding month from the 6.25% general rate on
7the selling price of sorbents used in Illinois in the process
8of sorbent injection as used to comply with the Environmental
9Protection Act or the federal Clean Air Act, but the total
10payment into the Clean Air Act Permit Fund under this Act and
11the Retailers' Occupation Tax Act shall not exceed $2,000,000
12in any fiscal year.
13    Beginning July 1, 2013, each month the Department shall pay
14into the Underground Storage Tank Fund from the proceeds
15collected under this Act, the Service Use Tax Act, the Service
16Occupation Tax Act, and the Retailers' Occupation Tax Act an
17amount equal to the average monthly deficit in the Underground
18Storage Tank Fund during the prior year, as certified annually
19by the Illinois Environmental Protection Agency, but the total
20payment into the Underground Storage Tank Fund under this Act,
21the Service Use Tax Act, the Service Occupation Tax Act, and
22the Retailers' Occupation Tax Act shall not exceed $18,000,000
23in any State fiscal year. As used in this paragraph, the
24"average monthly deficit" shall be equal to the difference
25between the average monthly claims for payment by the fund and
26the average monthly revenues deposited into the fund, excluding

 

 

HB3600- 25 -LRB100 09169 HLH 19324 b

1payments made pursuant to this paragraph.
2    Beginning July 1, 2015, of the remainder of the moneys
3received by the Department under this Act, the Service Use Tax
4Act, the Service Occupation Tax Act, and the Retailers'
5Occupation Tax Act, each month the Department shall deposit
6$500,000 into the State Crime Laboratory Fund.
7    Of the remainder of the moneys received by the Department
8pursuant to this Act, (a) 1.75% thereof shall be paid into the
9Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
10and after July 1, 1989, 3.8% thereof shall be paid into the
11Build Illinois Fund; provided, however, that if in any fiscal
12year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
13may be, of the moneys received by the Department and required
14to be paid into the Build Illinois Fund pursuant to Section 3
15of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
16Act, Section 9 of the Service Use Tax Act, and Section 9 of the
17Service Occupation Tax Act, such Acts being hereinafter called
18the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
19may be, of moneys being hereinafter called the "Tax Act
20Amount", and (2) the amount transferred to the Build Illinois
21Fund from the State and Local Sales Tax Reform Fund shall be
22less than the Annual Specified Amount (as defined in Section 3
23of the Retailers' Occupation Tax Act), an amount equal to the
24difference shall be immediately paid into the Build Illinois
25Fund from other moneys received by the Department pursuant to
26the Tax Acts; and further provided, that if on the last

 

 

HB3600- 26 -LRB100 09169 HLH 19324 b

1business day of any month the sum of (1) the Tax Act Amount
2required to be deposited into the Build Illinois Bond Account
3in the Build Illinois Fund during such month and (2) the amount
4transferred during such month to the Build Illinois Fund from
5the State and Local Sales Tax Reform Fund shall have been less
6than 1/12 of the Annual Specified Amount, an amount equal to
7the difference shall be immediately paid into the Build
8Illinois Fund from other moneys received by the Department
9pursuant to the Tax Acts; and, further provided, that in no
10event shall the payments required under the preceding proviso
11result in aggregate payments into the Build Illinois Fund
12pursuant to this clause (b) for any fiscal year in excess of
13the greater of (i) the Tax Act Amount or (ii) the Annual
14Specified Amount for such fiscal year; and, further provided,
15that the amounts payable into the Build Illinois Fund under
16this clause (b) shall be payable only until such time as the
17aggregate amount on deposit under each trust indenture securing
18Bonds issued and outstanding pursuant to the Build Illinois
19Bond Act is sufficient, taking into account any future
20investment income, to fully provide, in accordance with such
21indenture, for the defeasance of or the payment of the
22principal of, premium, if any, and interest on the Bonds
23secured by such indenture and on any Bonds expected to be
24issued thereafter and all fees and costs payable with respect
25thereto, all as certified by the Director of the Bureau of the
26Budget (now Governor's Office of Management and Budget). If on

 

 

HB3600- 27 -LRB100 09169 HLH 19324 b

1the last business day of any month in which Bonds are
2outstanding pursuant to the Build Illinois Bond Act, the
3aggregate of the moneys deposited in the Build Illinois Bond
4Account in the Build Illinois Fund in such month shall be less
5than the amount required to be transferred in such month from
6the Build Illinois Bond Account to the Build Illinois Bond
7Retirement and Interest Fund pursuant to Section 13 of the
8Build Illinois Bond Act, an amount equal to such deficiency
9shall be immediately paid from other moneys received by the
10Department pursuant to the Tax Acts to the Build Illinois Fund;
11provided, however, that any amounts paid to the Build Illinois
12Fund in any fiscal year pursuant to this sentence shall be
13deemed to constitute payments pursuant to clause (b) of the
14preceding sentence and shall reduce the amount otherwise
15payable for such fiscal year pursuant to clause (b) of the
16preceding sentence. The moneys received by the Department
17pursuant to this Act and required to be deposited into the
18Build Illinois Fund are subject to the pledge, claim and charge
19set forth in Section 12 of the Build Illinois Bond Act.
20    Subject to payment of amounts into the Build Illinois Fund
21as provided in the preceding paragraph or in any amendment
22thereto hereafter enacted, the following specified monthly
23installment of the amount requested in the certificate of the
24Chairman of the Metropolitan Pier and Exposition Authority
25provided under Section 8.25f of the State Finance Act, but not
26in excess of the sums designated as "Total Deposit", shall be

 

 

HB3600- 28 -LRB100 09169 HLH 19324 b

1deposited in the aggregate from collections under Section 9 of
2the Use Tax Act, Section 9 of the Service Use Tax Act, Section
39 of the Service Occupation Tax Act, and Section 3 of the
4Retailers' Occupation Tax Act into the McCormick Place
5Expansion Project Fund in the specified fiscal years.
6Fiscal YearTotal Deposit
71993         $0
81994 53,000,000
91995 58,000,000
101996 61,000,000
111997 64,000,000
121998 68,000,000
131999 71,000,000
142000 75,000,000
152001 80,000,000
162002 93,000,000
172003 99,000,000
182004103,000,000
192005108,000,000
202006113,000,000
212007119,000,000
222008126,000,000
232009132,000,000
242010139,000,000
252011146,000,000
262012153,000,000

 

 

HB3600- 29 -LRB100 09169 HLH 19324 b

12013161,000,000
22014170,000,000
32015179,000,000
42016189,000,000
52017199,000,000
62018210,000,000
72019221,000,000
82020233,000,000
92021246,000,000
102022260,000,000
112023275,000,000
122024 275,000,000
132025 275,000,000
142026 279,000,000
152027 292,000,000
162028 307,000,000
172029 322,000,000
182030 338,000,000
192031 350,000,000
202032 350,000,000
21and
22each fiscal year
23thereafter that bonds
24are outstanding under
25Section 13.2 of the
26Metropolitan Pier and

 

 

HB3600- 30 -LRB100 09169 HLH 19324 b

1Exposition Authority Act,
2but not after fiscal year 2060.
3    Beginning July 20, 1993 and in each month of each fiscal
4year thereafter, one-eighth of the amount requested in the
5certificate of the Chairman of the Metropolitan Pier and
6Exposition Authority for that fiscal year, less the amount
7deposited into the McCormick Place Expansion Project Fund by
8the State Treasurer in the respective month under subsection
9(g) of Section 13 of the Metropolitan Pier and Exposition
10Authority Act, plus cumulative deficiencies in the deposits
11required under this Section for previous months and years,
12shall be deposited into the McCormick Place Expansion Project
13Fund, until the full amount requested for the fiscal year, but
14not in excess of the amount specified above as "Total Deposit",
15has been deposited.
16    Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning July 1, 1993 and ending on September 30,
202013, the Department shall each month pay into the Illinois Tax
21Increment Fund 0.27% of 80% of the net revenue realized for the
22preceding month from the 6.25% general rate on the selling
23price of tangible personal property.
24    Subject to payment of amounts into the Build Illinois Fund
25and the McCormick Place Expansion Project Fund pursuant to the
26preceding paragraphs or in any amendments thereto hereafter

 

 

HB3600- 31 -LRB100 09169 HLH 19324 b

1enacted, beginning with the receipt of the first report of
2taxes paid by an eligible business and continuing for a 25-year
3period, the Department shall each month pay into the Energy
4Infrastructure Fund 80% of the net revenue realized from the
56.25% general rate on the selling price of Illinois-mined coal
6that was sold to an eligible business. For purposes of this
7paragraph, the term "eligible business" means a new electric
8generating facility certified pursuant to Section 605-332 of
9the Department of Commerce and Economic Opportunity Law of the
10Civil Administrative Code of Illinois.
11    Subject to payment of amounts into the Build Illinois Fund,
12the McCormick Place Expansion Project Fund, the Illinois Tax
13Increment Fund, and the Energy Infrastructure Fund pursuant to
14the preceding paragraphs or in any amendments to this Section
15hereafter enacted, beginning on the first day of the first
16calendar month to occur on or after August 26, 2014 (the
17effective date of Public Act 98-1098) this amendatory Act of
18the 98th General Assembly, each month, from the collections
19made under Section 9 of the Use Tax Act, Section 9 of the
20Service Use Tax Act, Section 9 of the Service Occupation Tax
21Act, and Section 3 of the Retailers' Occupation Tax Act, the
22Department shall pay into the Tax Compliance and Administration
23Fund, to be used, subject to appropriation, to fund additional
24auditors and compliance personnel at the Department of Revenue,
25an amount equal to 1/12 of 5% of 80% of the cash receipts
26collected during the preceding fiscal year by the Audit Bureau

 

 

HB3600- 32 -LRB100 09169 HLH 19324 b

1of the Department under the Use Tax Act, the Service Use Tax
2Act, the Service Occupation Tax Act, the Retailers' Occupation
3Tax Act, and associated local occupation and use taxes
4administered by the Department.
5    Of the remainder of the moneys received by the Department
6pursuant to this Act, 75% thereof shall be paid into the State
7Treasury and 25% shall be reserved in a special account and
8used only for the transfer to the Common School Fund as part of
9the monthly transfer from the General Revenue Fund in
10accordance with Section 8a of the State Finance Act.
11    As soon as possible after the first day of each month, upon
12certification of the Department of Revenue, the Comptroller
13shall order transferred and the Treasurer shall transfer from
14the General Revenue Fund to the Motor Fuel Tax Fund an amount
15equal to 1.7% of 80% of the net revenue realized under this Act
16for the second preceding month. Beginning April 1, 2000, this
17transfer is no longer required and shall not be made.
18    Net revenue realized for a month shall be the revenue
19collected by the State pursuant to this Act, less the amount
20paid out during that month as refunds to taxpayers for
21overpayment of liability.
22    For greater simplicity of administration, manufacturers,
23importers and wholesalers whose products are sold at retail in
24Illinois by numerous retailers, and who wish to do so, may
25assume the responsibility for accounting and paying to the
26Department all tax accruing under this Act with respect to such

 

 

HB3600- 33 -LRB100 09169 HLH 19324 b

1sales, if the retailers who are affected do not make written
2objection to the Department to this arrangement.
3(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
498-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff.
58-26-14; 99-352, eff. 8-12-15; 99-858, eff. 8-19-16; 99-933,
6eff. 1-27-17; revised 2-3-17.)
 
7    Section 10. The Service Use Tax Act is amended by changing
8Sections 3-10 and 9 as follows:
 
9    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
10    Sec. 3-10. Rate of tax. Unless otherwise provided in this
11Section, the tax imposed by this Act is at the rate of 6.25% of
12the selling price of tangible personal property transferred as
13an incident to the sale of service, but, for the purpose of
14computing this tax, in no event shall the selling price be less
15than the cost price of the property to the serviceman.
16    Beginning on July 1, 2000 and through December 31, 2000,
17with respect to motor fuel, as defined in Section 1.1 of the
18Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
19the Use Tax Act, the tax is imposed at the rate of 1.25%.
20    With respect to gasohol, as defined in the Use Tax Act, the
21tax imposed by this Act applies to (i) 70% of the selling price
22of property transferred as an incident to the sale of service
23on or after January 1, 1990, and before July 1, 2003, (ii) 80%
24of the selling price of property transferred as an incident to

 

 

HB3600- 34 -LRB100 09169 HLH 19324 b

1the sale of service on or after July 1, 2003 and on or before
2December 31, 2018, and (iii) 100% of the selling price
3thereafter. If, at any time, however, the tax under this Act on
4sales of gasohol, as defined in the Use Tax Act, is imposed at
5the rate of 1.25%, then the tax imposed by this Act applies to
6100% of the proceeds of sales of gasohol made during that time.
7    With respect to majority blended ethanol fuel, as defined
8in the Use Tax Act, the tax imposed by this Act does not apply
9to the selling price of property transferred as an incident to
10the sale of service on or after July 1, 2003 and on or before
11December 31, 2018 but applies to 100% of the selling price
12thereafter.
13    With respect to biodiesel blends, as defined in the Use Tax
14Act, with no less than 1% and no more than 10% biodiesel, the
15tax imposed by this Act applies to (i) 80% of the selling price
16of property transferred as an incident to the sale of service
17on or after July 1, 2003 and on or before December 31, 2018 and
18(ii) 100% of the proceeds of the selling price thereafter. If,
19at any time, however, the tax under this Act on sales of
20biodiesel blends, as defined in the Use Tax Act, with no less
21than 1% and no more than 10% biodiesel is imposed at the rate
22of 1.25%, then the tax imposed by this Act applies to 100% of
23the proceeds of sales of biodiesel blends with no less than 1%
24and no more than 10% biodiesel made during that time.
25    With respect to 100% biodiesel, as defined in the Use Tax
26Act, and biodiesel blends, as defined in the Use Tax Act, with

 

 

HB3600- 35 -LRB100 09169 HLH 19324 b

1more than 10% but no more than 99% biodiesel, the tax imposed
2by this Act does not apply to the proceeds of the selling price
3of property transferred as an incident to the sale of service
4on or after July 1, 2003 and on or before December 31, 2018 but
5applies to 100% of the selling price thereafter.
6    At the election of any registered serviceman made for each
7fiscal year, sales of service in which the aggregate annual
8cost price of tangible personal property transferred as an
9incident to the sales of service is less than 35%, or 75% in
10the case of servicemen transferring prescription drugs or
11servicemen engaged in graphic arts production, of the aggregate
12annual total gross receipts from all sales of service, the tax
13imposed by this Act shall be based on the serviceman's cost
14price of the tangible personal property transferred as an
15incident to the sale of those services.
16    The tax shall be imposed at the rate of 1% on food prepared
17for immediate consumption and transferred incident to a sale of
18service subject to this Act or the Service Occupation Tax Act
19by an entity licensed under the Hospital Licensing Act, the
20Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
21Act, the Specialized Mental Health Rehabilitation Act of 2013,
22or the Child Care Act of 1969. The tax shall also be imposed at
23the rate of 1% on food for human consumption that is to be
24consumed off the premises where it is sold (other than
25alcoholic beverages, soft drinks, and food that has been
26prepared for immediate consumption and is not otherwise

 

 

HB3600- 36 -LRB100 09169 HLH 19324 b

1included in this paragraph) and prescription and
2nonprescription medicines, drugs, medical appliances, products
3classified as Class III medical devices by the United States
4Food and Drug Administration that are used for cancer treatment
5pursuant to a prescription, as well as any accessories and
6components related to those devices, modifications to a motor
7vehicle for the purpose of rendering it usable by a person with
8a disability, diapers, baby wipes, and insulin, urine testing
9materials, syringes, and needles used by diabetics, for human
10use. For the purposes of this Section, until September 1, 2009:
11the term "soft drinks" means any complete, finished,
12ready-to-use, non-alcoholic drink, whether carbonated or not,
13including but not limited to soda water, cola, fruit juice,
14vegetable juice, carbonated water, and all other preparations
15commonly known as soft drinks of whatever kind or description
16that are contained in any closed or sealed bottle, can, carton,
17or container, regardless of size; but "soft drinks" does not
18include coffee, tea, non-carbonated water, infant formula,
19milk or milk products as defined in the Grade A Pasteurized
20Milk and Milk Products Act, or drinks containing 50% or more
21natural fruit or vegetable juice.
22    Notwithstanding any other provisions of this Act,
23beginning September 1, 2009, "soft drinks" means non-alcoholic
24beverages that contain natural or artificial sweeteners. "Soft
25drinks" do not include beverages that contain milk or milk
26products, soy, rice or similar milk substitutes, or greater

 

 

HB3600- 37 -LRB100 09169 HLH 19324 b

1than 50% of vegetable or fruit juice by volume.
2    Until August 1, 2009, and notwithstanding any other
3provisions of this Act, "food for human consumption that is to
4be consumed off the premises where it is sold" includes all
5food sold through a vending machine, except soft drinks and
6food products that are dispensed hot from a vending machine,
7regardless of the location of the vending machine. Beginning
8August 1, 2009, and notwithstanding any other provisions of
9this Act, "food for human consumption that is to be consumed
10off the premises where it is sold" includes all food sold
11through a vending machine, except soft drinks, candy, and food
12products that are dispensed hot from a vending machine,
13regardless of the location of the vending machine.
14    Notwithstanding any other provisions of this Act,
15beginning September 1, 2009, "food for human consumption that
16is to be consumed off the premises where it is sold" does not
17include candy. For purposes of this Section, "candy" means a
18preparation of sugar, honey, or other natural or artificial
19sweeteners in combination with chocolate, fruits, nuts or other
20ingredients or flavorings in the form of bars, drops, or
21pieces. "Candy" does not include any preparation that contains
22flour or requires refrigeration.
23    Notwithstanding any other provisions of this Act,
24beginning September 1, 2009, "nonprescription medicines and
25drugs" does not include grooming and hygiene products. For
26purposes of this Section, "grooming and hygiene products"

 

 

HB3600- 38 -LRB100 09169 HLH 19324 b

1includes, but is not limited to, soaps and cleaning solutions,
2shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
3lotions and screens, unless those products are available by
4prescription only, regardless of whether the products meet the
5definition of "over-the-counter-drugs". For the purposes of
6this paragraph, "over-the-counter-drug" means a drug for human
7use that contains a label that identifies the product as a drug
8as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
9label includes:
10        (A) A "Drug Facts" panel; or
11        (B) A statement of the "active ingredient(s)" with a
12    list of those ingredients contained in the compound,
13    substance or preparation.
14    Beginning on January 1, 2014 (the effective date of Public
15Act 98-122), "prescription and nonprescription medicines and
16drugs" includes medical cannabis purchased from a registered
17dispensing organization under the Compassionate Use of Medical
18Cannabis Pilot Program Act.
19    If the property that is acquired from a serviceman is
20acquired outside Illinois and used outside Illinois before
21being brought to Illinois for use here and is taxable under
22this Act, the "selling price" on which the tax is computed
23shall be reduced by an amount that represents a reasonable
24allowance for depreciation for the period of prior out-of-state
25use.
26(Source: P.A. 98-104, eff. 7-22-13; 98-122, eff. 1-1-14;

 

 

HB3600- 39 -LRB100 09169 HLH 19324 b

198-756, eff. 7-16-14; 99-143, eff. 7-27-15; 99-180, eff.
27-29-15; 99-642, eff. 7-28-16; 99-858, eff. 8-19-16.)
 
3    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
4    Sec. 9. Each serviceman required or authorized to collect
5the tax herein imposed shall pay to the Department the amount
6of such tax (except as otherwise provided) at the time when he
7is required to file his return for the period during which such
8tax was collected, less a discount of 2.1% prior to January 1,
91990 and 1.75% on and after January 1, 1990, or $5 per calendar
10year, whichever is greater, which is allowed to reimburse the
11serviceman for expenses incurred in collecting the tax, keeping
12records, preparing and filing returns, remitting the tax and
13supplying data to the Department on request. The Department may
14disallow the discount for servicemen whose certificate of
15registration is revoked at the time the return is filed, but
16only if the Department's decision to revoke the certificate of
17registration has become final. A serviceman need not remit that
18part of any tax collected by him to the extent that he is
19required to pay and does pay the tax imposed by the Service
20Occupation Tax Act with respect to his sale of service
21involving the incidental transfer by him of the same property.
22    Except as provided hereinafter in this Section, on or
23before the twentieth day of each calendar month, such
24serviceman shall file a return for the preceding calendar month
25in accordance with reasonable Rules and Regulations to be

 

 

HB3600- 40 -LRB100 09169 HLH 19324 b

1promulgated by the Department. Such return shall be filed on a
2form prescribed by the Department and shall contain such
3information as the Department may reasonably require.
4    The Department may require returns to be filed on a
5quarterly basis. If so required, a return for each calendar
6quarter shall be filed on or before the twentieth day of the
7calendar month following the end of such calendar quarter. The
8taxpayer shall also file a return with the Department for each
9of the first two months of each calendar quarter, on or before
10the twentieth day of the following calendar month, stating:
11        1. The name of the seller;
12        2. The address of the principal place of business from
13    which he engages in business as a serviceman in this State;
14        3. The total amount of taxable receipts received by him
15    during the preceding calendar month, including receipts
16    from charge and time sales, but less all deductions allowed
17    by law;
18        4. The amount of credit provided in Section 2d of this
19    Act;
20        5. The amount of tax due;
21        5-5. The signature of the taxpayer; and
22        6. Such other reasonable information as the Department
23    may require.
24    If a taxpayer fails to sign a return within 30 days after
25the proper notice and demand for signature by the Department,
26the return shall be considered valid and any amount shown to be

 

 

HB3600- 41 -LRB100 09169 HLH 19324 b

1due on the return shall be deemed assessed.
2    Beginning October 1, 1993, a taxpayer who has an average
3monthly tax liability of $150,000 or more shall make all
4payments required by rules of the Department by electronic
5funds transfer. Beginning October 1, 1994, a taxpayer who has
6an average monthly tax liability of $100,000 or more shall make
7all payments required by rules of the Department by electronic
8funds transfer. Beginning October 1, 1995, a taxpayer who has
9an average monthly tax liability of $50,000 or more shall make
10all payments required by rules of the Department by electronic
11funds transfer. Beginning October 1, 2000, a taxpayer who has
12an annual tax liability of $200,000 or more shall make all
13payments required by rules of the Department by electronic
14funds transfer. The term "annual tax liability" shall be the
15sum of the taxpayer's liabilities under this Act, and under all
16other State and local occupation and use tax laws administered
17by the Department, for the immediately preceding calendar year.
18The term "average monthly tax liability" means the sum of the
19taxpayer's liabilities under this Act, and under all other
20State and local occupation and use tax laws administered by the
21Department, for the immediately preceding calendar year
22divided by 12. Beginning on October 1, 2002, a taxpayer who has
23a tax liability in the amount set forth in subsection (b) of
24Section 2505-210 of the Department of Revenue Law shall make
25all payments required by rules of the Department by electronic
26funds transfer.

 

 

HB3600- 42 -LRB100 09169 HLH 19324 b

1    Before August 1 of each year beginning in 1993, the
2Department shall notify all taxpayers required to make payments
3by electronic funds transfer. All taxpayers required to make
4payments by electronic funds transfer shall make those payments
5for a minimum of one year beginning on October 1.
6    Any taxpayer not required to make payments by electronic
7funds transfer may make payments by electronic funds transfer
8with the permission of the Department.
9    All taxpayers required to make payment by electronic funds
10transfer and any taxpayers authorized to voluntarily make
11payments by electronic funds transfer shall make those payments
12in the manner authorized by the Department.
13    The Department shall adopt such rules as are necessary to
14effectuate a program of electronic funds transfer and the
15requirements of this Section.
16    If the serviceman is otherwise required to file a monthly
17return and if the serviceman's average monthly tax liability to
18the Department does not exceed $200, the Department may
19authorize his returns to be filed on a quarter annual basis,
20with the return for January, February and March of a given year
21being due by April 20 of such year; with the return for April,
22May and June of a given year being due by July 20 of such year;
23with the return for July, August and September of a given year
24being due by October 20 of such year, and with the return for
25October, November and December of a given year being due by
26January 20 of the following year.

 

 

HB3600- 43 -LRB100 09169 HLH 19324 b

1    If the serviceman is otherwise required to file a monthly
2or quarterly return and if the serviceman's average monthly tax
3liability to the Department does not exceed $50, the Department
4may authorize his returns to be filed on an annual basis, with
5the return for a given year being due by January 20 of the
6following year.
7    Such quarter annual and annual returns, as to form and
8substance, shall be subject to the same requirements as monthly
9returns.
10    Notwithstanding any other provision in this Act concerning
11the time within which a serviceman may file his return, in the
12case of any serviceman who ceases to engage in a kind of
13business which makes him responsible for filing returns under
14this Act, such serviceman shall file a final return under this
15Act with the Department not more than 1 month after
16discontinuing such business.
17    Where a serviceman collects the tax with respect to the
18selling price of property which he sells and the purchaser
19thereafter returns such property and the serviceman refunds the
20selling price thereof to the purchaser, such serviceman shall
21also refund, to the purchaser, the tax so collected from the
22purchaser. When filing his return for the period in which he
23refunds such tax to the purchaser, the serviceman may deduct
24the amount of the tax so refunded by him to the purchaser from
25any other Service Use Tax, Service Occupation Tax, retailers'
26occupation tax or use tax which such serviceman may be required

 

 

HB3600- 44 -LRB100 09169 HLH 19324 b

1to pay or remit to the Department, as shown by such return,
2provided that the amount of the tax to be deducted shall
3previously have been remitted to the Department by such
4serviceman. If the serviceman shall not previously have
5remitted the amount of such tax to the Department, he shall be
6entitled to no deduction hereunder upon refunding such tax to
7the purchaser.
8    Any serviceman filing a return hereunder shall also include
9the total tax upon the selling price of tangible personal
10property purchased for use by him as an incident to a sale of
11service, and such serviceman shall remit the amount of such tax
12to the Department when filing such return.
13    If experience indicates such action to be practicable, the
14Department may prescribe and furnish a combination or joint
15return which will enable servicemen, who are required to file
16returns hereunder and also under the Service Occupation Tax
17Act, to furnish all the return information required by both
18Acts on the one form.
19    Where the serviceman has more than one business registered
20with the Department under separate registration hereunder,
21such serviceman shall not file each return that is due as a
22single return covering all such registered businesses, but
23shall file separate returns for each such registered business.
24    Beginning January 1, 1990, each month the Department shall
25pay into the State and Local Tax Reform Fund, a special fund in
26the State Treasury, the net revenue realized for the preceding

 

 

HB3600- 45 -LRB100 09169 HLH 19324 b

1month from the 1% tax on sales of food for human consumption
2which is to be consumed off the premises where it is sold
3(other than alcoholic beverages, soft drinks and food which has
4been prepared for immediate consumption) and prescription and
5nonprescription medicines, drugs, medical appliances, products
6classified as Class III medical devices, by the United States
7Food and Drug Administration that are used for cancer treatment
8pursuant to a prescription, as well as any accessories and
9components related to those devices, diapers, baby wipes, and
10insulin, urine testing materials, syringes and needles used by
11diabetics.
12    Beginning January 1, 1990, each month the Department shall
13pay into the State and Local Sales Tax Reform Fund 20% of the
14net revenue realized for the preceding month from the 6.25%
15general rate on transfers of tangible personal property, other
16than tangible personal property which is purchased outside
17Illinois at retail from a retailer and which is titled or
18registered by an agency of this State's government.
19    Beginning August 1, 2000, each month the Department shall
20pay into the State and Local Sales Tax Reform Fund 100% of the
21net revenue realized for the preceding month from the 1.25%
22rate on the selling price of motor fuel and gasohol.
23    Beginning October 1, 2009, each month the Department shall
24pay into the Capital Projects Fund an amount that is equal to
25an amount estimated by the Department to represent 80% of the
26net revenue realized for the preceding month from the sale of

 

 

HB3600- 46 -LRB100 09169 HLH 19324 b

1candy, grooming and hygiene products, and soft drinks that had
2been taxed at a rate of 1% prior to September 1, 2009 but that
3are now taxed at 6.25%.
4    Beginning July 1, 2013, each month the Department shall pay
5into the Underground Storage Tank Fund from the proceeds
6collected under this Act, the Use Tax Act, the Service
7Occupation Tax Act, and the Retailers' Occupation Tax Act an
8amount equal to the average monthly deficit in the Underground
9Storage Tank Fund during the prior year, as certified annually
10by the Illinois Environmental Protection Agency, but the total
11payment into the Underground Storage Tank Fund under this Act,
12the Use Tax Act, the Service Occupation Tax Act, and the
13Retailers' Occupation Tax Act shall not exceed $18,000,000 in
14any State fiscal year. As used in this paragraph, the "average
15monthly deficit" shall be equal to the difference between the
16average monthly claims for payment by the fund and the average
17monthly revenues deposited into the fund, excluding payments
18made pursuant to this paragraph.
19    Beginning July 1, 2015, of the remainder of the moneys
20received by the Department under the Use Tax Act, this Act, the
21Service Occupation Tax Act, and the Retailers' Occupation Tax
22Act, each month the Department shall deposit $500,000 into the
23State Crime Laboratory Fund.
24    Of the remainder of the moneys received by the Department
25pursuant to this Act, (a) 1.75% thereof shall be paid into the
26Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on

 

 

HB3600- 47 -LRB100 09169 HLH 19324 b

1and after July 1, 1989, 3.8% thereof shall be paid into the
2Build Illinois Fund; provided, however, that if in any fiscal
3year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
4may be, of the moneys received by the Department and required
5to be paid into the Build Illinois Fund pursuant to Section 3
6of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
7Act, Section 9 of the Service Use Tax Act, and Section 9 of the
8Service Occupation Tax Act, such Acts being hereinafter called
9the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
10may be, of moneys being hereinafter called the "Tax Act
11Amount", and (2) the amount transferred to the Build Illinois
12Fund from the State and Local Sales Tax Reform Fund shall be
13less than the Annual Specified Amount (as defined in Section 3
14of the Retailers' Occupation Tax Act), an amount equal to the
15difference shall be immediately paid into the Build Illinois
16Fund from other moneys received by the Department pursuant to
17the Tax Acts; and further provided, that if on the last
18business day of any month the sum of (1) the Tax Act Amount
19required to be deposited into the Build Illinois Bond Account
20in the Build Illinois Fund during such month and (2) the amount
21transferred during such month to the Build Illinois Fund from
22the State and Local Sales Tax Reform Fund shall have been less
23than 1/12 of the Annual Specified Amount, an amount equal to
24the difference shall be immediately paid into the Build
25Illinois Fund from other moneys received by the Department
26pursuant to the Tax Acts; and, further provided, that in no

 

 

HB3600- 48 -LRB100 09169 HLH 19324 b

1event shall the payments required under the preceding proviso
2result in aggregate payments into the Build Illinois Fund
3pursuant to this clause (b) for any fiscal year in excess of
4the greater of (i) the Tax Act Amount or (ii) the Annual
5Specified Amount for such fiscal year; and, further provided,
6that the amounts payable into the Build Illinois Fund under
7this clause (b) shall be payable only until such time as the
8aggregate amount on deposit under each trust indenture securing
9Bonds issued and outstanding pursuant to the Build Illinois
10Bond Act is sufficient, taking into account any future
11investment income, to fully provide, in accordance with such
12indenture, for the defeasance of or the payment of the
13principal of, premium, if any, and interest on the Bonds
14secured by such indenture and on any Bonds expected to be
15issued thereafter and all fees and costs payable with respect
16thereto, all as certified by the Director of the Bureau of the
17Budget (now Governor's Office of Management and Budget). If on
18the last business day of any month in which Bonds are
19outstanding pursuant to the Build Illinois Bond Act, the
20aggregate of the moneys deposited in the Build Illinois Bond
21Account in the Build Illinois Fund in such month shall be less
22than the amount required to be transferred in such month from
23the Build Illinois Bond Account to the Build Illinois Bond
24Retirement and Interest Fund pursuant to Section 13 of the
25Build Illinois Bond Act, an amount equal to such deficiency
26shall be immediately paid from other moneys received by the

 

 

HB3600- 49 -LRB100 09169 HLH 19324 b

1Department pursuant to the Tax Acts to the Build Illinois Fund;
2provided, however, that any amounts paid to the Build Illinois
3Fund in any fiscal year pursuant to this sentence shall be
4deemed to constitute payments pursuant to clause (b) of the
5preceding sentence and shall reduce the amount otherwise
6payable for such fiscal year pursuant to clause (b) of the
7preceding sentence. The moneys received by the Department
8pursuant to this Act and required to be deposited into the
9Build Illinois Fund are subject to the pledge, claim and charge
10set forth in Section 12 of the Build Illinois Bond Act.
11    Subject to payment of amounts into the Build Illinois Fund
12as provided in the preceding paragraph or in any amendment
13thereto hereafter enacted, the following specified monthly
14installment of the amount requested in the certificate of the
15Chairman of the Metropolitan Pier and Exposition Authority
16provided under Section 8.25f of the State Finance Act, but not
17in excess of the sums designated as "Total Deposit", shall be
18deposited in the aggregate from collections under Section 9 of
19the Use Tax Act, Section 9 of the Service Use Tax Act, Section
209 of the Service Occupation Tax Act, and Section 3 of the
21Retailers' Occupation Tax Act into the McCormick Place
22Expansion Project Fund in the specified fiscal years.
23Fiscal YearTotal Deposit
241993         $0
251994 53,000,000

 

 

HB3600- 50 -LRB100 09169 HLH 19324 b

11995 58,000,000
21996 61,000,000
31997 64,000,000
41998 68,000,000
51999 71,000,000
62000 75,000,000
72001 80,000,000
82002 93,000,000
92003 99,000,000
102004103,000,000
112005108,000,000
122006113,000,000
132007119,000,000
142008126,000,000
152009132,000,000
162010139,000,000
172011146,000,000
182012153,000,000
192013161,000,000
202014170,000,000
212015179,000,000
222016189,000,000
232017199,000,000
242018210,000,000
252019221,000,000
262020233,000,000

 

 

HB3600- 51 -LRB100 09169 HLH 19324 b

12021246,000,000
22022260,000,000
32023275,000,000
42024 275,000,000
52025 275,000,000
62026 279,000,000
72027 292,000,000
82028 307,000,000
92029 322,000,000
102030 338,000,000
112031 350,000,000
122032 350,000,000
13and
14each fiscal year
15thereafter that bonds
16are outstanding under
17Section 13.2 of the
18Metropolitan Pier and
19Exposition Authority Act,
20but not after fiscal year 2060.
21    Beginning July 20, 1993 and in each month of each fiscal
22year thereafter, one-eighth of the amount requested in the
23certificate of the Chairman of the Metropolitan Pier and
24Exposition Authority for that fiscal year, less the amount
25deposited into the McCormick Place Expansion Project Fund by
26the State Treasurer in the respective month under subsection

 

 

HB3600- 52 -LRB100 09169 HLH 19324 b

1(g) of Section 13 of the Metropolitan Pier and Exposition
2Authority Act, plus cumulative deficiencies in the deposits
3required under this Section for previous months and years,
4shall be deposited into the McCormick Place Expansion Project
5Fund, until the full amount requested for the fiscal year, but
6not in excess of the amount specified above as "Total Deposit",
7has been deposited.
8    Subject to payment of amounts into the Build Illinois Fund
9and the McCormick Place Expansion Project Fund pursuant to the
10preceding paragraphs or in any amendments thereto hereafter
11enacted, beginning July 1, 1993 and ending on September 30,
122013, the Department shall each month pay into the Illinois Tax
13Increment Fund 0.27% of 80% of the net revenue realized for the
14preceding month from the 6.25% general rate on the selling
15price of tangible personal property.
16    Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning with the receipt of the first report of
20taxes paid by an eligible business and continuing for a 25-year
21period, the Department shall each month pay into the Energy
22Infrastructure Fund 80% of the net revenue realized from the
236.25% general rate on the selling price of Illinois-mined coal
24that was sold to an eligible business. For purposes of this
25paragraph, the term "eligible business" means a new electric
26generating facility certified pursuant to Section 605-332 of

 

 

HB3600- 53 -LRB100 09169 HLH 19324 b

1the Department of Commerce and Economic Opportunity Law of the
2Civil Administrative Code of Illinois.
3    Subject to payment of amounts into the Build Illinois Fund,
4the McCormick Place Expansion Project Fund, the Illinois Tax
5Increment Fund, and the Energy Infrastructure Fund pursuant to
6the preceding paragraphs or in any amendments to this Section
7hereafter enacted, beginning on the first day of the first
8calendar month to occur on or after the effective date of this
9amendatory Act of the 98th General Assembly, each month, from
10the collections made under Section 9 of the Use Tax Act,
11Section 9 of the Service Use Tax Act, Section 9 of the Service
12Occupation Tax Act, and Section 3 of the Retailers' Occupation
13Tax Act, the Department shall pay into the Tax Compliance and
14Administration Fund, to be used, subject to appropriation, to
15fund additional auditors and compliance personnel at the
16Department of Revenue, an amount equal to 1/12 of 5% of 80% of
17the cash receipts collected during the preceding fiscal year by
18the Audit Bureau of the Department under the Use Tax Act, the
19Service Use Tax Act, the Service Occupation Tax Act, the
20Retailers' Occupation Tax Act, and associated local occupation
21and use taxes administered by the Department.
22    Of the remainder of the moneys received by the Department
23pursuant to this Act, 75% thereof shall be paid into the
24General Revenue Fund of the State Treasury and 25% shall be
25reserved in a special account and used only for the transfer to
26the Common School Fund as part of the monthly transfer from the

 

 

HB3600- 54 -LRB100 09169 HLH 19324 b

1General Revenue Fund in accordance with Section 8a of the State
2Finance Act.
3    As soon as possible after the first day of each month, upon
4certification of the Department of Revenue, the Comptroller
5shall order transferred and the Treasurer shall transfer from
6the General Revenue Fund to the Motor Fuel Tax Fund an amount
7equal to 1.7% of 80% of the net revenue realized under this Act
8for the second preceding month. Beginning April 1, 2000, this
9transfer is no longer required and shall not be made.
10    Net revenue realized for a month shall be the revenue
11collected by the State pursuant to this Act, less the amount
12paid out during that month as refunds to taxpayers for
13overpayment of liability.
14(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
1598-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
1698-1098, eff. 8-26-14; 99-352, eff. 8-12-15; 99-858, eff.
178-19-16.)
 
18    Section 15. The Service Occupation Tax Act is amended by
19changing Sections 3-10 and 9 as follows:
 
20    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
21    Sec. 3-10. Rate of tax. Unless otherwise provided in this
22Section, the tax imposed by this Act is at the rate of 6.25% of
23the "selling price", as defined in Section 2 of the Service Use
24Tax Act, of the tangible personal property. For the purpose of

 

 

HB3600- 55 -LRB100 09169 HLH 19324 b

1computing this tax, in no event shall the "selling price" be
2less than the cost price to the serviceman of the tangible
3personal property transferred. The selling price of each item
4of tangible personal property transferred as an incident of a
5sale of service may be shown as a distinct and separate item on
6the serviceman's billing to the service customer. If the
7selling price is not so shown, the selling price of the
8tangible personal property is deemed to be 50% of the
9serviceman's entire billing to the service customer. When,
10however, a serviceman contracts to design, develop, and produce
11special order machinery or equipment, the tax imposed by this
12Act shall be based on the serviceman's cost price of the
13tangible personal property transferred incident to the
14completion of the contract.
15    Beginning on July 1, 2000 and through December 31, 2000,
16with respect to motor fuel, as defined in Section 1.1 of the
17Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
18the Use Tax Act, the tax is imposed at the rate of 1.25%.
19    With respect to gasohol, as defined in the Use Tax Act, the
20tax imposed by this Act shall apply to (i) 70% of the cost
21price of property transferred as an incident to the sale of
22service on or after January 1, 1990, and before July 1, 2003,
23(ii) 80% of the selling price of property transferred as an
24incident to the sale of service on or after July 1, 2003 and on
25or before December 31, 2018, and (iii) 100% of the cost price
26thereafter. If, at any time, however, the tax under this Act on

 

 

HB3600- 56 -LRB100 09169 HLH 19324 b

1sales of gasohol, as defined in the Use Tax Act, is imposed at
2the rate of 1.25%, then the tax imposed by this Act applies to
3100% of the proceeds of sales of gasohol made during that time.
4    With respect to majority blended ethanol fuel, as defined
5in the Use Tax Act, the tax imposed by this Act does not apply
6to the selling price of property transferred as an incident to
7the sale of service on or after July 1, 2003 and on or before
8December 31, 2018 but applies to 100% of the selling price
9thereafter.
10    With respect to biodiesel blends, as defined in the Use Tax
11Act, with no less than 1% and no more than 10% biodiesel, the
12tax imposed by this Act applies to (i) 80% of the selling price
13of property transferred as an incident to the sale of service
14on or after July 1, 2003 and on or before December 31, 2018 and
15(ii) 100% of the proceeds of the selling price thereafter. If,
16at any time, however, the tax under this Act on sales of
17biodiesel blends, as defined in the Use Tax Act, with no less
18than 1% and no more than 10% biodiesel is imposed at the rate
19of 1.25%, then the tax imposed by this Act applies to 100% of
20the proceeds of sales of biodiesel blends with no less than 1%
21and no more than 10% biodiesel made during that time.
22    With respect to 100% biodiesel, as defined in the Use Tax
23Act, and biodiesel blends, as defined in the Use Tax Act, with
24more than 10% but no more than 99% biodiesel material, the tax
25imposed by this Act does not apply to the proceeds of the
26selling price of property transferred as an incident to the

 

 

HB3600- 57 -LRB100 09169 HLH 19324 b

1sale of service on or after July 1, 2003 and on or before
2December 31, 2018 but applies to 100% of the selling price
3thereafter.
4    At the election of any registered serviceman made for each
5fiscal year, sales of service in which the aggregate annual
6cost price of tangible personal property transferred as an
7incident to the sales of service is less than 35%, or 75% in
8the case of servicemen transferring prescription drugs or
9servicemen engaged in graphic arts production, of the aggregate
10annual total gross receipts from all sales of service, the tax
11imposed by this Act shall be based on the serviceman's cost
12price of the tangible personal property transferred incident to
13the sale of those services.
14    The tax shall be imposed at the rate of 1% on food prepared
15for immediate consumption and transferred incident to a sale of
16service subject to this Act or the Service Occupation Tax Act
17by an entity licensed under the Hospital Licensing Act, the
18Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
19Act, the Specialized Mental Health Rehabilitation Act of 2013,
20or the Child Care Act of 1969. The tax shall also be imposed at
21the rate of 1% on food for human consumption that is to be
22consumed off the premises where it is sold (other than
23alcoholic beverages, soft drinks, and food that has been
24prepared for immediate consumption and is not otherwise
25included in this paragraph) and prescription and
26nonprescription medicines, drugs, medical appliances, products

 

 

HB3600- 58 -LRB100 09169 HLH 19324 b

1classified as Class III medical devices by the United States
2Food and Drug Administration that are used for cancer treatment
3pursuant to a prescription, as well as any accessories and
4components related to those devices, modifications to a motor
5vehicle for the purpose of rendering it usable by a person with
6a disability, diapers, baby wipes, and insulin, urine testing
7materials, syringes, and needles used by diabetics, for human
8use. For the purposes of this Section, until September 1, 2009:
9the term "soft drinks" means any complete, finished,
10ready-to-use, non-alcoholic drink, whether carbonated or not,
11including but not limited to soda water, cola, fruit juice,
12vegetable juice, carbonated water, and all other preparations
13commonly known as soft drinks of whatever kind or description
14that are contained in any closed or sealed can, carton, or
15container, regardless of size; but "soft drinks" does not
16include coffee, tea, non-carbonated water, infant formula,
17milk or milk products as defined in the Grade A Pasteurized
18Milk and Milk Products Act, or drinks containing 50% or more
19natural fruit or vegetable juice.
20    Notwithstanding any other provisions of this Act,
21beginning September 1, 2009, "soft drinks" means non-alcoholic
22beverages that contain natural or artificial sweeteners. "Soft
23drinks" do not include beverages that contain milk or milk
24products, soy, rice or similar milk substitutes, or greater
25than 50% of vegetable or fruit juice by volume.
26    Until August 1, 2009, and notwithstanding any other

 

 

HB3600- 59 -LRB100 09169 HLH 19324 b

1provisions of this Act, "food for human consumption that is to
2be consumed off the premises where it is sold" includes all
3food sold through a vending machine, except soft drinks and
4food products that are dispensed hot from a vending machine,
5regardless of the location of the vending machine. Beginning
6August 1, 2009, and notwithstanding any other provisions of
7this Act, "food for human consumption that is to be consumed
8off the premises where it is sold" includes all food sold
9through a vending machine, except soft drinks, candy, and food
10products that are dispensed hot from a vending machine,
11regardless of the location of the vending machine.
12    Notwithstanding any other provisions of this Act,
13beginning September 1, 2009, "food for human consumption that
14is to be consumed off the premises where it is sold" does not
15include candy. For purposes of this Section, "candy" means a
16preparation of sugar, honey, or other natural or artificial
17sweeteners in combination with chocolate, fruits, nuts or other
18ingredients or flavorings in the form of bars, drops, or
19pieces. "Candy" does not include any preparation that contains
20flour or requires refrigeration.
21    Notwithstanding any other provisions of this Act,
22beginning September 1, 2009, "nonprescription medicines and
23drugs" does not include grooming and hygiene products. For
24purposes of this Section, "grooming and hygiene products"
25includes, but is not limited to, soaps and cleaning solutions,
26shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

 

 

HB3600- 60 -LRB100 09169 HLH 19324 b

1lotions and screens, unless those products are available by
2prescription only, regardless of whether the products meet the
3definition of "over-the-counter-drugs". For the purposes of
4this paragraph, "over-the-counter-drug" means a drug for human
5use that contains a label that identifies the product as a drug
6as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
7label includes:
8        (A) A "Drug Facts" panel; or
9        (B) A statement of the "active ingredient(s)" with a
10    list of those ingredients contained in the compound,
11    substance or preparation.
12    Beginning on January 1, 2014 (the effective date of Public
13Act 98-122), "prescription and nonprescription medicines and
14drugs" includes medical cannabis purchased from a registered
15dispensing organization under the Compassionate Use of Medical
16Cannabis Pilot Program Act.
17(Source: P.A. 98-104, eff. 7-22-13; 98-122, eff. 1-1-14;
1898-756, eff. 7-16-14; 99-143, eff. 7-27-15; 99-180, eff.
197-29-15; 99-642, eff. 7-28-16; 99-858, eff. 8-19-16.)
 
20    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
21    Sec. 9. Each serviceman required or authorized to collect
22the tax herein imposed shall pay to the Department the amount
23of such tax at the time when he is required to file his return
24for the period during which such tax was collectible, less a
25discount of 2.1% prior to January 1, 1990, and 1.75% on and

 

 

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1after January 1, 1990, or $5 per calendar year, whichever is
2greater, which is allowed to reimburse the serviceman for
3expenses incurred in collecting the tax, keeping records,
4preparing and filing returns, remitting the tax and supplying
5data to the Department on request. The Department may disallow
6the discount for servicemen whose certificate of registration
7is revoked at the time the return is filed, but only if the
8Department's decision to revoke the certificate of
9registration has become final.
10    Where such tangible personal property is sold under a
11conditional sales contract, or under any other form of sale
12wherein the payment of the principal sum, or a part thereof, is
13extended beyond the close of the period for which the return is
14filed, the serviceman, in collecting the tax may collect, for
15each tax return period, only the tax applicable to the part of
16the selling price actually received during such tax return
17period.
18    Except as provided hereinafter in this Section, on or
19before the twentieth day of each calendar month, such
20serviceman shall file a return for the preceding calendar month
21in accordance with reasonable rules and regulations to be
22promulgated by the Department of Revenue. Such return shall be
23filed on a form prescribed by the Department and shall contain
24such information as the Department may reasonably require.
25    The Department may require returns to be filed on a
26quarterly basis. If so required, a return for each calendar

 

 

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1quarter shall be filed on or before the twentieth day of the
2calendar month following the end of such calendar quarter. The
3taxpayer shall also file a return with the Department for each
4of the first two months of each calendar quarter, on or before
5the twentieth day of the following calendar month, stating:
6        1. The name of the seller;
7        2. The address of the principal place of business from
8    which he engages in business as a serviceman in this State;
9        3. The total amount of taxable receipts received by him
10    during the preceding calendar month, including receipts
11    from charge and time sales, but less all deductions allowed
12    by law;
13        4. The amount of credit provided in Section 2d of this
14    Act;
15        5. The amount of tax due;
16        5-5. The signature of the taxpayer; and
17        6. Such other reasonable information as the Department
18    may require.
19    If a taxpayer fails to sign a return within 30 days after
20the proper notice and demand for signature by the Department,
21the return shall be considered valid and any amount shown to be
22due on the return shall be deemed assessed.
23    Prior to October 1, 2003, and on and after September 1,
242004 a serviceman may accept a Manufacturer's Purchase Credit
25certification from a purchaser in satisfaction of Service Use
26Tax as provided in Section 3-70 of the Service Use Tax Act if

 

 

HB3600- 63 -LRB100 09169 HLH 19324 b

1the purchaser provides the appropriate documentation as
2required by Section 3-70 of the Service Use Tax Act. A
3Manufacturer's Purchase Credit certification, accepted prior
4to October 1, 2003 or on or after September 1, 2004 by a
5serviceman as provided in Section 3-70 of the Service Use Tax
6Act, may be used by that serviceman to satisfy Service
7Occupation Tax liability in the amount claimed in the
8certification, not to exceed 6.25% of the receipts subject to
9tax from a qualifying purchase. A Manufacturer's Purchase
10Credit reported on any original or amended return filed under
11this Act after October 20, 2003 for reporting periods prior to
12September 1, 2004 shall be disallowed. Manufacturer's Purchase
13Credit reported on annual returns due on or after January 1,
142005 will be disallowed for periods prior to September 1, 2004.
15No Manufacturer's Purchase Credit may be used after September
1630, 2003 through August 31, 2004 to satisfy any tax liability
17imposed under this Act, including any audit liability.
18    If the serviceman's average monthly tax liability to the
19Department does not exceed $200, the Department may authorize
20his returns to be filed on a quarter annual basis, with the
21return for January, February and March of a given year being
22due by April 20 of such year; with the return for April, May
23and June of a given year being due by July 20 of such year; with
24the return for July, August and September of a given year being
25due by October 20 of such year, and with the return for
26October, November and December of a given year being due by

 

 

HB3600- 64 -LRB100 09169 HLH 19324 b

1January 20 of the following year.
2    If the serviceman's average monthly tax liability to the
3Department does not exceed $50, the Department may authorize
4his returns to be filed on an annual basis, with the return for
5a given year being due by January 20 of the following year.
6    Such quarter annual and annual returns, as to form and
7substance, shall be subject to the same requirements as monthly
8returns.
9    Notwithstanding any other provision in this Act concerning
10the time within which a serviceman may file his return, in the
11case of any serviceman who ceases to engage in a kind of
12business which makes him responsible for filing returns under
13this Act, such serviceman shall file a final return under this
14Act with the Department not more than 1 month after
15discontinuing such business.
16    Beginning October 1, 1993, a taxpayer who has an average
17monthly tax liability of $150,000 or more shall make all
18payments required by rules of the Department by electronic
19funds transfer. Beginning October 1, 1994, a taxpayer who has
20an average monthly tax liability of $100,000 or more shall make
21all payments required by rules of the Department by electronic
22funds transfer. Beginning October 1, 1995, a taxpayer who has
23an average monthly tax liability of $50,000 or more shall make
24all payments required by rules of the Department by electronic
25funds transfer. Beginning October 1, 2000, a taxpayer who has
26an annual tax liability of $200,000 or more shall make all

 

 

HB3600- 65 -LRB100 09169 HLH 19324 b

1payments required by rules of the Department by electronic
2funds transfer. The term "annual tax liability" shall be the
3sum of the taxpayer's liabilities under this Act, and under all
4other State and local occupation and use tax laws administered
5by the Department, for the immediately preceding calendar year.
6The term "average monthly tax liability" means the sum of the
7taxpayer's liabilities under this Act, and under all other
8State and local occupation and use tax laws administered by the
9Department, for the immediately preceding calendar year
10divided by 12. Beginning on October 1, 2002, a taxpayer who has
11a tax liability in the amount set forth in subsection (b) of
12Section 2505-210 of the Department of Revenue Law shall make
13all payments required by rules of the Department by electronic
14funds transfer.
15    Before August 1 of each year beginning in 1993, the
16Department shall notify all taxpayers required to make payments
17by electronic funds transfer. All taxpayers required to make
18payments by electronic funds transfer shall make those payments
19for a minimum of one year beginning on October 1.
20    Any taxpayer not required to make payments by electronic
21funds transfer may make payments by electronic funds transfer
22with the permission of the Department.
23    All taxpayers required to make payment by electronic funds
24transfer and any taxpayers authorized to voluntarily make
25payments by electronic funds transfer shall make those payments
26in the manner authorized by the Department.

 

 

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1    The Department shall adopt such rules as are necessary to
2effectuate a program of electronic funds transfer and the
3requirements of this Section.
4    Where a serviceman collects the tax with respect to the
5selling price of tangible personal property which he sells and
6the purchaser thereafter returns such tangible personal
7property and the serviceman refunds the selling price thereof
8to the purchaser, such serviceman shall also refund, to the
9purchaser, the tax so collected from the purchaser. When filing
10his return for the period in which he refunds such tax to the
11purchaser, the serviceman may deduct the amount of the tax so
12refunded by him to the purchaser from any other Service
13Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
14Use Tax which such serviceman may be required to pay or remit
15to the Department, as shown by such return, provided that the
16amount of the tax to be deducted shall previously have been
17remitted to the Department by such serviceman. If the
18serviceman shall not previously have remitted the amount of
19such tax to the Department, he shall be entitled to no
20deduction hereunder upon refunding such tax to the purchaser.
21    If experience indicates such action to be practicable, the
22Department may prescribe and furnish a combination or joint
23return which will enable servicemen, who are required to file
24returns hereunder and also under the Retailers' Occupation Tax
25Act, the Use Tax Act or the Service Use Tax Act, to furnish all
26the return information required by all said Acts on the one

 

 

HB3600- 67 -LRB100 09169 HLH 19324 b

1form.
2    Where the serviceman has more than one business registered
3with the Department under separate registrations hereunder,
4such serviceman shall file separate returns for each registered
5business.
6    Beginning January 1, 1990, each month the Department shall
7pay into the Local Government Tax Fund the revenue realized for
8the preceding month from the 1% tax on sales of food for human
9consumption which is to be consumed off the premises where it
10is sold (other than alcoholic beverages, soft drinks and food
11which has been prepared for immediate consumption) and
12prescription and nonprescription medicines, drugs, medical
13appliances, products classified as Class III medical devices by
14the United States Food and Drug Administration that are used
15for cancer treatment pursuant to a prescription, as well as any
16accessories and components related to those devices, diapers,
17baby wipes, and insulin, urine testing materials, syringes and
18needles used by diabetics.
19    Beginning January 1, 1990, each month the Department shall
20pay into the County and Mass Transit District Fund 4% of the
21revenue realized for the preceding month from the 6.25% general
22rate.
23    Beginning August 1, 2000, each month the Department shall
24pay into the County and Mass Transit District Fund 20% of the
25net revenue realized for the preceding month from the 1.25%
26rate on the selling price of motor fuel and gasohol.

 

 

HB3600- 68 -LRB100 09169 HLH 19324 b

1    Beginning January 1, 1990, each month the Department shall
2pay into the Local Government Tax Fund 16% of the revenue
3realized for the preceding month from the 6.25% general rate on
4transfers of tangible personal property.
5    Beginning August 1, 2000, each month the Department shall
6pay into the Local Government Tax Fund 80% of the net revenue
7realized for the preceding month from the 1.25% rate on the
8selling price of motor fuel and gasohol.
9    Beginning October 1, 2009, each month the Department shall
10pay into the Capital Projects Fund an amount that is equal to
11an amount estimated by the Department to represent 80% of the
12net revenue realized for the preceding month from the sale of
13candy, grooming and hygiene products, and soft drinks that had
14been taxed at a rate of 1% prior to September 1, 2009 but that
15are now taxed at 6.25%.
16    Beginning July 1, 2013, each month the Department shall pay
17into the Underground Storage Tank Fund from the proceeds
18collected under this Act, the Use Tax Act, the Service Use Tax
19Act, and the Retailers' Occupation Tax Act an amount equal to
20the average monthly deficit in the Underground Storage Tank
21Fund during the prior year, as certified annually by the
22Illinois Environmental Protection Agency, but the total
23payment into the Underground Storage Tank Fund under this Act,
24the Use Tax Act, the Service Use Tax Act, and the Retailers'
25Occupation Tax Act shall not exceed $18,000,000 in any State
26fiscal year. As used in this paragraph, the "average monthly

 

 

HB3600- 69 -LRB100 09169 HLH 19324 b

1deficit" shall be equal to the difference between the average
2monthly claims for payment by the fund and the average monthly
3revenues deposited into the fund, excluding payments made
4pursuant to this paragraph.
5    Beginning July 1, 2015, of the remainder of the moneys
6received by the Department under the Use Tax Act, the Service
7Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
8each month the Department shall deposit $500,000 into the State
9Crime Laboratory Fund.
10    Of the remainder of the moneys received by the Department
11pursuant to this Act, (a) 1.75% thereof shall be paid into the
12Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
13and after July 1, 1989, 3.8% thereof shall be paid into the
14Build Illinois Fund; provided, however, that if in any fiscal
15year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
16may be, of the moneys received by the Department and required
17to be paid into the Build Illinois Fund pursuant to Section 3
18of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
19Act, Section 9 of the Service Use Tax Act, and Section 9 of the
20Service Occupation Tax Act, such Acts being hereinafter called
21the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
22may be, of moneys being hereinafter called the "Tax Act
23Amount", and (2) the amount transferred to the Build Illinois
24Fund from the State and Local Sales Tax Reform Fund shall be
25less than the Annual Specified Amount (as defined in Section 3
26of the Retailers' Occupation Tax Act), an amount equal to the

 

 

HB3600- 70 -LRB100 09169 HLH 19324 b

1difference shall be immediately paid into the Build Illinois
2Fund from other moneys received by the Department pursuant to
3the Tax Acts; and further provided, that if on the last
4business day of any month the sum of (1) the Tax Act Amount
5required to be deposited into the Build Illinois Account in the
6Build Illinois Fund during such month and (2) the amount
7transferred during such month to the Build Illinois Fund from
8the State and Local Sales Tax Reform Fund shall have been less
9than 1/12 of the Annual Specified Amount, an amount equal to
10the difference shall be immediately paid into the Build
11Illinois Fund from other moneys received by the Department
12pursuant to the Tax Acts; and, further provided, that in no
13event shall the payments required under the preceding proviso
14result in aggregate payments into the Build Illinois Fund
15pursuant to this clause (b) for any fiscal year in excess of
16the greater of (i) the Tax Act Amount or (ii) the Annual
17Specified Amount for such fiscal year; and, further provided,
18that the amounts payable into the Build Illinois Fund under
19this clause (b) shall be payable only until such time as the
20aggregate amount on deposit under each trust indenture securing
21Bonds issued and outstanding pursuant to the Build Illinois
22Bond Act is sufficient, taking into account any future
23investment income, to fully provide, in accordance with such
24indenture, for the defeasance of or the payment of the
25principal of, premium, if any, and interest on the Bonds
26secured by such indenture and on any Bonds expected to be

 

 

HB3600- 71 -LRB100 09169 HLH 19324 b

1issued thereafter and all fees and costs payable with respect
2thereto, all as certified by the Director of the Bureau of the
3Budget (now Governor's Office of Management and Budget). If on
4the last business day of any month in which Bonds are
5outstanding pursuant to the Build Illinois Bond Act, the
6aggregate of the moneys deposited in the Build Illinois Bond
7Account in the Build Illinois Fund in such month shall be less
8than the amount required to be transferred in such month from
9the Build Illinois Bond Account to the Build Illinois Bond
10Retirement and Interest Fund pursuant to Section 13 of the
11Build Illinois Bond Act, an amount equal to such deficiency
12shall be immediately paid from other moneys received by the
13Department pursuant to the Tax Acts to the Build Illinois Fund;
14provided, however, that any amounts paid to the Build Illinois
15Fund in any fiscal year pursuant to this sentence shall be
16deemed to constitute payments pursuant to clause (b) of the
17preceding sentence and shall reduce the amount otherwise
18payable for such fiscal year pursuant to clause (b) of the
19preceding sentence. The moneys received by the Department
20pursuant to this Act and required to be deposited into the
21Build Illinois Fund are subject to the pledge, claim and charge
22set forth in Section 12 of the Build Illinois Bond Act.
23    Subject to payment of amounts into the Build Illinois Fund
24as provided in the preceding paragraph or in any amendment
25thereto hereafter enacted, the following specified monthly
26installment of the amount requested in the certificate of the

 

 

HB3600- 72 -LRB100 09169 HLH 19324 b

1Chairman of the Metropolitan Pier and Exposition Authority
2provided under Section 8.25f of the State Finance Act, but not
3in excess of the sums designated as "Total Deposit", shall be
4deposited in the aggregate from collections under Section 9 of
5the Use Tax Act, Section 9 of the Service Use Tax Act, Section
69 of the Service Occupation Tax Act, and Section 3 of the
7Retailers' Occupation Tax Act into the McCormick Place
8Expansion Project Fund in the specified fiscal years.
9Fiscal YearTotal Deposit
101993         $0
111994 53,000,000
121995 58,000,000
131996 61,000,000
141997 64,000,000
151998 68,000,000
161999 71,000,000
172000 75,000,000
182001 80,000,000
192002 93,000,000
202003 99,000,000
212004103,000,000
222005108,000,000
232006113,000,000
242007119,000,000
252008126,000,000

 

 

HB3600- 73 -LRB100 09169 HLH 19324 b

12009132,000,000
22010139,000,000
32011146,000,000
42012153,000,000
52013161,000,000
62014170,000,000
72015179,000,000
82016189,000,000
92017199,000,000
102018210,000,000
112019221,000,000
122020233,000,000
132021246,000,000
142022260,000,000
152023275,000,000
162024 275,000,000
172025 275,000,000
182026 279,000,000
192027 292,000,000
202028 307,000,000
212029 322,000,000
222030 338,000,000
232031 350,000,000
242032 350,000,000
25and
26each fiscal year

 

 

HB3600- 74 -LRB100 09169 HLH 19324 b

1thereafter that bonds
2are outstanding under
3Section 13.2 of the
4Metropolitan Pier and
5Exposition Authority Act,
6but not after fiscal year 2060.
7    Beginning July 20, 1993 and in each month of each fiscal
8year thereafter, one-eighth of the amount requested in the
9certificate of the Chairman of the Metropolitan Pier and
10Exposition Authority for that fiscal year, less the amount
11deposited into the McCormick Place Expansion Project Fund by
12the State Treasurer in the respective month under subsection
13(g) of Section 13 of the Metropolitan Pier and Exposition
14Authority Act, plus cumulative deficiencies in the deposits
15required under this Section for previous months and years,
16shall be deposited into the McCormick Place Expansion Project
17Fund, until the full amount requested for the fiscal year, but
18not in excess of the amount specified above as "Total Deposit",
19has been deposited.
20    Subject to payment of amounts into the Build Illinois Fund
21and the McCormick Place Expansion Project Fund pursuant to the
22preceding paragraphs or in any amendments thereto hereafter
23enacted, beginning July 1, 1993 and ending on September 30,
242013, the Department shall each month pay into the Illinois Tax
25Increment Fund 0.27% of 80% of the net revenue realized for the
26preceding month from the 6.25% general rate on the selling

 

 

HB3600- 75 -LRB100 09169 HLH 19324 b

1price of tangible personal property.
2    Subject to payment of amounts into the Build Illinois Fund
3and the McCormick Place Expansion Project Fund pursuant to the
4preceding paragraphs or in any amendments thereto hereafter
5enacted, beginning with the receipt of the first report of
6taxes paid by an eligible business and continuing for a 25-year
7period, the Department shall each month pay into the Energy
8Infrastructure Fund 80% of the net revenue realized from the
96.25% general rate on the selling price of Illinois-mined coal
10that was sold to an eligible business. For purposes of this
11paragraph, the term "eligible business" means a new electric
12generating facility certified pursuant to Section 605-332 of
13the Department of Commerce and Economic Opportunity Law of the
14Civil Administrative Code of Illinois.
15    Subject to payment of amounts into the Build Illinois Fund,
16the McCormick Place Expansion Project Fund, the Illinois Tax
17Increment Fund, and the Energy Infrastructure Fund pursuant to
18the preceding paragraphs or in any amendments to this Section
19hereafter enacted, beginning on the first day of the first
20calendar month to occur on or after the effective date of this
21amendatory Act of the 98th General Assembly, each month, from
22the collections made under Section 9 of the Use Tax Act,
23Section 9 of the Service Use Tax Act, Section 9 of the Service
24Occupation Tax Act, and Section 3 of the Retailers' Occupation
25Tax Act, the Department shall pay into the Tax Compliance and
26Administration Fund, to be used, subject to appropriation, to

 

 

HB3600- 76 -LRB100 09169 HLH 19324 b

1fund additional auditors and compliance personnel at the
2Department of Revenue, an amount equal to 1/12 of 5% of 80% of
3the cash receipts collected during the preceding fiscal year by
4the Audit Bureau of the Department under the Use Tax Act, the
5Service Use Tax Act, the Service Occupation Tax Act, the
6Retailers' Occupation Tax Act, and associated local occupation
7and use taxes administered by the Department.
8    Of the remainder of the moneys received by the Department
9pursuant to this Act, 75% shall be paid into the General
10Revenue Fund of the State Treasury and 25% shall be reserved in
11a special account and used only for the transfer to the Common
12School Fund as part of the monthly transfer from the General
13Revenue Fund in accordance with Section 8a of the State Finance
14Act.
15    The Department may, upon separate written notice to a
16taxpayer, require the taxpayer to prepare and file with the
17Department on a form prescribed by the Department within not
18less than 60 days after receipt of the notice an annual
19information return for the tax year specified in the notice.
20Such annual return to the Department shall include a statement
21of gross receipts as shown by the taxpayer's last Federal
22income tax return. If the total receipts of the business as
23reported in the Federal income tax return do not agree with the
24gross receipts reported to the Department of Revenue for the
25same period, the taxpayer shall attach to his annual return a
26schedule showing a reconciliation of the 2 amounts and the

 

 

HB3600- 77 -LRB100 09169 HLH 19324 b

1reasons for the difference. The taxpayer's annual return to the
2Department shall also disclose the cost of goods sold by the
3taxpayer during the year covered by such return, opening and
4closing inventories of such goods for such year, cost of goods
5used from stock or taken from stock and given away by the
6taxpayer during such year, pay roll information of the
7taxpayer's business during such year and any additional
8reasonable information which the Department deems would be
9helpful in determining the accuracy of the monthly, quarterly
10or annual returns filed by such taxpayer as hereinbefore
11provided for in this Section.
12    If the annual information return required by this Section
13is not filed when and as required, the taxpayer shall be liable
14as follows:
15        (i) Until January 1, 1994, the taxpayer shall be liable
16    for a penalty equal to 1/6 of 1% of the tax due from such
17    taxpayer under this Act during the period to be covered by
18    the annual return for each month or fraction of a month
19    until such return is filed as required, the penalty to be
20    assessed and collected in the same manner as any other
21    penalty provided for in this Act.
22        (ii) On and after January 1, 1994, the taxpayer shall
23    be liable for a penalty as described in Section 3-4 of the
24    Uniform Penalty and Interest Act.
25    The chief executive officer, proprietor, owner or highest
26ranking manager shall sign the annual return to certify the

 

 

HB3600- 78 -LRB100 09169 HLH 19324 b

1accuracy of the information contained therein. Any person who
2willfully signs the annual return containing false or
3inaccurate information shall be guilty of perjury and punished
4accordingly. The annual return form prescribed by the
5Department shall include a warning that the person signing the
6return may be liable for perjury.
7    The foregoing portion of this Section concerning the filing
8of an annual information return shall not apply to a serviceman
9who is not required to file an income tax return with the
10United States Government.
11    As soon as possible after the first day of each month, upon
12certification of the Department of Revenue, the Comptroller
13shall order transferred and the Treasurer shall transfer from
14the General Revenue Fund to the Motor Fuel Tax Fund an amount
15equal to 1.7% of 80% of the net revenue realized under this Act
16for the second preceding month. Beginning April 1, 2000, this
17transfer is no longer required and shall not be made.
18    Net revenue realized for a month shall be the revenue
19collected by the State pursuant to this Act, less the amount
20paid out during that month as refunds to taxpayers for
21overpayment of liability.
22    For greater simplicity of administration, it shall be
23permissible for manufacturers, importers and wholesalers whose
24products are sold by numerous servicemen in Illinois, and who
25wish to do so, to assume the responsibility for accounting and
26paying to the Department all tax accruing under this Act with

 

 

HB3600- 79 -LRB100 09169 HLH 19324 b

1respect to such sales, if the servicemen who are affected do
2not make written objection to the Department to this
3arrangement.
4(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
598-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
698-1098, eff. 8-26-14; 99-352, eff. 8-12-15; 99-858, eff.
78-19-16.)
 
8    Section 20. The Retailers' Occupation Tax Act is amended by
9changing Sections 2-10 and 3 as follows:
 
10    (35 ILCS 120/2-10)
11    Sec. 2-10. Rate of tax. Unless otherwise provided in this
12Section, the tax imposed by this Act is at the rate of 6.25% of
13gross receipts from sales of tangible personal property made in
14the course of business.
15    Beginning on July 1, 2000 and through December 31, 2000,
16with respect to motor fuel, as defined in Section 1.1 of the
17Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
18the Use Tax Act, the tax is imposed at the rate of 1.25%.
19    Beginning on August 6, 2010 through August 15, 2010, with
20respect to sales tax holiday items as defined in Section 2-8 of
21this Act, the tax is imposed at the rate of 1.25%.
22    Within 14 days after the effective date of this amendatory
23Act of the 91st General Assembly, each retailer of motor fuel
24and gasohol shall cause the following notice to be posted in a

 

 

HB3600- 80 -LRB100 09169 HLH 19324 b

1prominently visible place on each retail dispensing device that
2is used to dispense motor fuel or gasohol in the State of
3Illinois: "As of July 1, 2000, the State of Illinois has
4eliminated the State's share of sales tax on motor fuel and
5gasohol through December 31, 2000. The price on this pump
6should reflect the elimination of the tax." The notice shall be
7printed in bold print on a sign that is no smaller than 4
8inches by 8 inches. The sign shall be clearly visible to
9customers. Any retailer who fails to post or maintain a
10required sign through December 31, 2000 is guilty of a petty
11offense for which the fine shall be $500 per day per each
12retail premises where a violation occurs.
13    With respect to gasohol, as defined in the Use Tax Act, the
14tax imposed by this Act applies to (i) 70% of the proceeds of
15sales made on or after January 1, 1990, and before July 1,
162003, (ii) 80% of the proceeds of sales made on or after July
171, 2003 and on or before December 31, 2018, and (iii) 100% of
18the proceeds of sales made thereafter. If, at any time,
19however, the tax under this Act on sales of gasohol, as defined
20in the Use Tax Act, is imposed at the rate of 1.25%, then the
21tax imposed by this Act applies to 100% of the proceeds of
22sales of gasohol made during that time.
23    With respect to majority blended ethanol fuel, as defined
24in the Use Tax Act, the tax imposed by this Act does not apply
25to the proceeds of sales made on or after July 1, 2003 and on or
26before December 31, 2018 but applies to 100% of the proceeds of

 

 

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1sales made thereafter.
2    With respect to biodiesel blends, as defined in the Use Tax
3Act, with no less than 1% and no more than 10% biodiesel, the
4tax imposed by this Act applies to (i) 80% of the proceeds of
5sales made on or after July 1, 2003 and on or before December
631, 2018 and (ii) 100% of the proceeds of sales made
7thereafter. If, at any time, however, the tax under this Act on
8sales of biodiesel blends, as defined in the Use Tax Act, with
9no less than 1% and no more than 10% biodiesel is imposed at
10the rate of 1.25%, then the tax imposed by this Act applies to
11100% of the proceeds of sales of biodiesel blends with no less
12than 1% and no more than 10% biodiesel made during that time.
13    With respect to 100% biodiesel, as defined in the Use Tax
14Act, and biodiesel blends, as defined in the Use Tax Act, with
15more than 10% but no more than 99% biodiesel, the tax imposed
16by this Act does not apply to the proceeds of sales made on or
17after July 1, 2003 and on or before December 31, 2018 but
18applies to 100% of the proceeds of sales made thereafter.
19    With respect to food for human consumption that is to be
20consumed off the premises where it is sold (other than
21alcoholic beverages, soft drinks, and food that has been
22prepared for immediate consumption) and prescription and
23nonprescription medicines, drugs, medical appliances, products
24classified as Class III medical devices by the United States
25Food and Drug Administration that are used for cancer treatment
26pursuant to a prescription, as well as any accessories and

 

 

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1components related to those devices, modifications to a motor
2vehicle for the purpose of rendering it usable by a person with
3a disability, diapers, baby wipes, and insulin, urine testing
4materials, syringes, and needles used by diabetics, for human
5use, the tax is imposed at the rate of 1%. For the purposes of
6this Section, until September 1, 2009: the term "soft drinks"
7means any complete, finished, ready-to-use, non-alcoholic
8drink, whether carbonated or not, including but not limited to
9soda water, cola, fruit juice, vegetable juice, carbonated
10water, and all other preparations commonly known as soft drinks
11of whatever kind or description that are contained in any
12closed or sealed bottle, can, carton, or container, regardless
13of size; but "soft drinks" does not include coffee, tea,
14non-carbonated water, infant formula, milk or milk products as
15defined in the Grade A Pasteurized Milk and Milk Products Act,
16or drinks containing 50% or more natural fruit or vegetable
17juice.
18    Notwithstanding any other provisions of this Act,
19beginning September 1, 2009, "soft drinks" means non-alcoholic
20beverages that contain natural or artificial sweeteners. "Soft
21drinks" do not include beverages that contain milk or milk
22products, soy, rice or similar milk substitutes, or greater
23than 50% of vegetable or fruit juice by volume.
24    Until August 1, 2009, and notwithstanding any other
25provisions of this Act, "food for human consumption that is to
26be consumed off the premises where it is sold" includes all

 

 

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1food sold through a vending machine, except soft drinks and
2food products that are dispensed hot from a vending machine,
3regardless of the location of the vending machine. Beginning
4August 1, 2009, and notwithstanding any other provisions of
5this Act, "food for human consumption that is to be consumed
6off the premises where it is sold" includes all food sold
7through a vending machine, except soft drinks, candy, and food
8products that are dispensed hot from a vending machine,
9regardless of the location of the vending machine.
10    Notwithstanding any other provisions of this Act,
11beginning September 1, 2009, "food for human consumption that
12is to be consumed off the premises where it is sold" does not
13include candy. For purposes of this Section, "candy" means a
14preparation of sugar, honey, or other natural or artificial
15sweeteners in combination with chocolate, fruits, nuts or other
16ingredients or flavorings in the form of bars, drops, or
17pieces. "Candy" does not include any preparation that contains
18flour or requires refrigeration.
19    Notwithstanding any other provisions of this Act,
20beginning September 1, 2009, "nonprescription medicines and
21drugs" does not include grooming and hygiene products. For
22purposes of this Section, "grooming and hygiene products"
23includes, but is not limited to, soaps and cleaning solutions,
24shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
25lotions and screens, unless those products are available by
26prescription only, regardless of whether the products meet the

 

 

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1definition of "over-the-counter-drugs". For the purposes of
2this paragraph, "over-the-counter-drug" means a drug for human
3use that contains a label that identifies the product as a drug
4as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
5label includes:
6        (A) A "Drug Facts" panel; or
7        (B) A statement of the "active ingredient(s)" with a
8    list of those ingredients contained in the compound,
9    substance or preparation.
10    Beginning on the effective date of this amendatory Act of
11the 98th General Assembly, "prescription and nonprescription
12medicines and drugs" includes medical cannabis purchased from a
13registered dispensing organization under the Compassionate Use
14of Medical Cannabis Pilot Program Act.
15(Source: P.A. 98-122, eff. 1-1-14; 99-143, eff. 7-27-15;
1699-858, eff. 8-19-16.)
 
17    (35 ILCS 120/3)  (from Ch. 120, par. 442)
18    Sec. 3. Except as provided in this Section, on or before
19the twentieth day of each calendar month, every person engaged
20in the business of selling tangible personal property at retail
21in this State during the preceding calendar month shall file a
22return with the Department, stating:
23        1. The name of the seller;
24        2. His residence address and the address of his
25    principal place of business and the address of the

 

 

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1    principal place of business (if that is a different
2    address) from which he engages in the business of selling
3    tangible personal property at retail in this State;
4        3. Total amount of receipts received by him during the
5    preceding calendar month or quarter, as the case may be,
6    from sales of tangible personal property, and from services
7    furnished, by him during such preceding calendar month or
8    quarter;
9        4. Total amount received by him during the preceding
10    calendar month or quarter on charge and time sales of
11    tangible personal property, and from services furnished,
12    by him prior to the month or quarter for which the return
13    is filed;
14        5. Deductions allowed by law;
15        6. Gross receipts which were received by him during the
16    preceding calendar month or quarter and upon the basis of
17    which the tax is imposed;
18        7. The amount of credit provided in Section 2d of this
19    Act;
20        8. The amount of tax due;
21        9. The signature of the taxpayer; and
22        10. Such other reasonable information as the
23    Department may require.
24    If a taxpayer fails to sign a return within 30 days after
25the proper notice and demand for signature by the Department,
26the return shall be considered valid and any amount shown to be

 

 

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1due on the return shall be deemed assessed.
2    Each return shall be accompanied by the statement of
3prepaid tax issued pursuant to Section 2e for which credit is
4claimed.
5    Prior to October 1, 2003, and on and after September 1,
62004 a retailer may accept a Manufacturer's Purchase Credit
7certification from a purchaser in satisfaction of Use Tax as
8provided in Section 3-85 of the Use Tax Act if the purchaser
9provides the appropriate documentation as required by Section
103-85 of the Use Tax Act. A Manufacturer's Purchase Credit
11certification, accepted by a retailer prior to October 1, 2003
12and on and after September 1, 2004 as provided in Section 3-85
13of the Use Tax Act, may be used by that retailer to satisfy
14Retailers' Occupation Tax liability in the amount claimed in
15the certification, not to exceed 6.25% of the receipts subject
16to tax from a qualifying purchase. A Manufacturer's Purchase
17Credit reported on any original or amended return filed under
18this Act after October 20, 2003 for reporting periods prior to
19September 1, 2004 shall be disallowed. Manufacturer's
20Purchaser Credit reported on annual returns due on or after
21January 1, 2005 will be disallowed for periods prior to
22September 1, 2004. No Manufacturer's Purchase Credit may be
23used after September 30, 2003 through August 31, 2004 to
24satisfy any tax liability imposed under this Act, including any
25audit liability.
26    The Department may require returns to be filed on a

 

 

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1quarterly basis. If so required, a return for each calendar
2quarter shall be filed on or before the twentieth day of the
3calendar month following the end of such calendar quarter. The
4taxpayer shall also file a return with the Department for each
5of the first two months of each calendar quarter, on or before
6the twentieth day of the following calendar month, stating:
7        1. The name of the seller;
8        2. The address of the principal place of business from
9    which he engages in the business of selling tangible
10    personal property at retail in this State;
11        3. The total amount of taxable receipts received by him
12    during the preceding calendar month from sales of tangible
13    personal property by him during such preceding calendar
14    month, including receipts from charge and time sales, but
15    less all deductions allowed by law;
16        4. The amount of credit provided in Section 2d of this
17    Act;
18        5. The amount of tax due; and
19        6. Such other reasonable information as the Department
20    may require.
21    Beginning on October 1, 2003, any person who is not a
22licensed distributor, importing distributor, or manufacturer,
23as defined in the Liquor Control Act of 1934, but is engaged in
24the business of selling, at retail, alcoholic liquor shall file
25a statement with the Department of Revenue, in a format and at
26a time prescribed by the Department, showing the total amount

 

 

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1paid for alcoholic liquor purchased during the preceding month
2and such other information as is reasonably required by the
3Department. The Department may adopt rules to require that this
4statement be filed in an electronic or telephonic format. Such
5rules may provide for exceptions from the filing requirements
6of this paragraph. For the purposes of this paragraph, the term
7"alcoholic liquor" shall have the meaning prescribed in the
8Liquor Control Act of 1934.
9    Beginning on October 1, 2003, every distributor, importing
10distributor, and manufacturer of alcoholic liquor as defined in
11the Liquor Control Act of 1934, shall file a statement with the
12Department of Revenue, no later than the 10th day of the month
13for the preceding month during which transactions occurred, by
14electronic means, showing the total amount of gross receipts
15from the sale of alcoholic liquor sold or distributed during
16the preceding month to purchasers; identifying the purchaser to
17whom it was sold or distributed; the purchaser's tax
18registration number; and such other information reasonably
19required by the Department. A distributor, importing
20distributor, or manufacturer of alcoholic liquor must
21personally deliver, mail, or provide by electronic means to
22each retailer listed on the monthly statement a report
23containing a cumulative total of that distributor's, importing
24distributor's, or manufacturer's total sales of alcoholic
25liquor to that retailer no later than the 10th day of the month
26for the preceding month during which the transaction occurred.

 

 

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1The distributor, importing distributor, or manufacturer shall
2notify the retailer as to the method by which the distributor,
3importing distributor, or manufacturer will provide the sales
4information. If the retailer is unable to receive the sales
5information by electronic means, the distributor, importing
6distributor, or manufacturer shall furnish the sales
7information by personal delivery or by mail. For purposes of
8this paragraph, the term "electronic means" includes, but is
9not limited to, the use of a secure Internet website, e-mail,
10or facsimile.
11    If a total amount of less than $1 is payable, refundable or
12creditable, such amount shall be disregarded if it is less than
1350 cents and shall be increased to $1 if it is 50 cents or more.
14    Beginning October 1, 1993, a taxpayer who has an average
15monthly tax liability of $150,000 or more shall make all
16payments required by rules of the Department by electronic
17funds transfer. Beginning October 1, 1994, a taxpayer who has
18an average monthly tax liability of $100,000 or more shall make
19all payments required by rules of the Department by electronic
20funds transfer. Beginning October 1, 1995, a taxpayer who has
21an average monthly tax liability of $50,000 or more shall make
22all payments required by rules of the Department by electronic
23funds transfer. Beginning October 1, 2000, a taxpayer who has
24an annual tax liability of $200,000 or more shall make all
25payments required by rules of the Department by electronic
26funds transfer. The term "annual tax liability" shall be the

 

 

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1sum of the taxpayer's liabilities under this Act, and under all
2other State and local occupation and use tax laws administered
3by the Department, for the immediately preceding calendar year.
4The term "average monthly tax liability" shall be the sum of
5the taxpayer's liabilities under this Act, and under all other
6State and local occupation and use tax laws administered by the
7Department, for the immediately preceding calendar year
8divided by 12. Beginning on October 1, 2002, a taxpayer who has
9a tax liability in the amount set forth in subsection (b) of
10Section 2505-210 of the Department of Revenue Law shall make
11all payments required by rules of the Department by electronic
12funds transfer.
13    Before August 1 of each year beginning in 1993, the
14Department shall notify all taxpayers required to make payments
15by electronic funds transfer. All taxpayers required to make
16payments by electronic funds transfer shall make those payments
17for a minimum of one year beginning on October 1.
18    Any taxpayer not required to make payments by electronic
19funds transfer may make payments by electronic funds transfer
20with the permission of the Department.
21    All taxpayers required to make payment by electronic funds
22transfer and any taxpayers authorized to voluntarily make
23payments by electronic funds transfer shall make those payments
24in the manner authorized by the Department.
25    The Department shall adopt such rules as are necessary to
26effectuate a program of electronic funds transfer and the

 

 

HB3600- 91 -LRB100 09169 HLH 19324 b

1requirements of this Section.
2    Any amount which is required to be shown or reported on any
3return or other document under this Act shall, if such amount
4is not a whole-dollar amount, be increased to the nearest
5whole-dollar amount in any case where the fractional part of a
6dollar is 50 cents or more, and decreased to the nearest
7whole-dollar amount where the fractional part of a dollar is
8less than 50 cents.
9    If the retailer is otherwise required to file a monthly
10return and if the retailer's average monthly tax liability to
11the Department does not exceed $200, the Department may
12authorize his returns to be filed on a quarter annual basis,
13with the return for January, February and March of a given year
14being due by April 20 of such year; with the return for April,
15May and June of a given year being due by July 20 of such year;
16with the return for July, August and September of a given year
17being due by October 20 of such year, and with the return for
18October, November and December of a given year being due by
19January 20 of the following year.
20    If the retailer is otherwise required to file a monthly or
21quarterly return and if the retailer's average monthly tax
22liability with the Department does not exceed $50, the
23Department may authorize his returns to be filed on an annual
24basis, with the return for a given year being due by January 20
25of the following year.
26    Such quarter annual and annual returns, as to form and

 

 

HB3600- 92 -LRB100 09169 HLH 19324 b

1substance, shall be subject to the same requirements as monthly
2returns.
3    Notwithstanding any other provision in this Act concerning
4the time within which a retailer may file his return, in the
5case of any retailer who ceases to engage in a kind of business
6which makes him responsible for filing returns under this Act,
7such retailer shall file a final return under this Act with the
8Department not more than one month after discontinuing such
9business.
10    Where the same person has more than one business registered
11with the Department under separate registrations under this
12Act, such person may not file each return that is due as a
13single return covering all such registered businesses, but
14shall file separate returns for each such registered business.
15    In addition, with respect to motor vehicles, watercraft,
16aircraft, and trailers that are required to be registered with
17an agency of this State, every retailer selling this kind of
18tangible personal property shall file, with the Department,
19upon a form to be prescribed and supplied by the Department, a
20separate return for each such item of tangible personal
21property which the retailer sells, except that if, in the same
22transaction, (i) a retailer of aircraft, watercraft, motor
23vehicles or trailers transfers more than one aircraft,
24watercraft, motor vehicle or trailer to another aircraft,
25watercraft, motor vehicle retailer or trailer retailer for the
26purpose of resale or (ii) a retailer of aircraft, watercraft,

 

 

HB3600- 93 -LRB100 09169 HLH 19324 b

1motor vehicles, or trailers transfers more than one aircraft,
2watercraft, motor vehicle, or trailer to a purchaser for use as
3a qualifying rolling stock as provided in Section 2-5 of this
4Act, then that seller may report the transfer of all aircraft,
5watercraft, motor vehicles or trailers involved in that
6transaction to the Department on the same uniform
7invoice-transaction reporting return form. For purposes of
8this Section, "watercraft" means a Class 2, Class 3, or Class 4
9watercraft as defined in Section 3-2 of the Boat Registration
10and Safety Act, a personal watercraft, or any boat equipped
11with an inboard motor.
12    Any retailer who sells only motor vehicles, watercraft,
13aircraft, or trailers that are required to be registered with
14an agency of this State, so that all retailers' occupation tax
15liability is required to be reported, and is reported, on such
16transaction reporting returns and who is not otherwise required
17to file monthly or quarterly returns, need not file monthly or
18quarterly returns. However, those retailers shall be required
19to file returns on an annual basis.
20    The transaction reporting return, in the case of motor
21vehicles or trailers that are required to be registered with an
22agency of this State, shall be the same document as the Uniform
23Invoice referred to in Section 5-402 of The Illinois Vehicle
24Code and must show the name and address of the seller; the name
25and address of the purchaser; the amount of the selling price
26including the amount allowed by the retailer for traded-in

 

 

HB3600- 94 -LRB100 09169 HLH 19324 b

1property, if any; the amount allowed by the retailer for the
2traded-in tangible personal property, if any, to the extent to
3which Section 1 of this Act allows an exemption for the value
4of traded-in property; the balance payable after deducting such
5trade-in allowance from the total selling price; the amount of
6tax due from the retailer with respect to such transaction; the
7amount of tax collected from the purchaser by the retailer on
8such transaction (or satisfactory evidence that such tax is not
9due in that particular instance, if that is claimed to be the
10fact); the place and date of the sale; a sufficient
11identification of the property sold; such other information as
12is required in Section 5-402 of The Illinois Vehicle Code, and
13such other information as the Department may reasonably
14require.
15    The transaction reporting return in the case of watercraft
16or aircraft must show the name and address of the seller; the
17name and address of the purchaser; the amount of the selling
18price including the amount allowed by the retailer for
19traded-in property, if any; the amount allowed by the retailer
20for the traded-in tangible personal property, if any, to the
21extent to which Section 1 of this Act allows an exemption for
22the value of traded-in property; the balance payable after
23deducting such trade-in allowance from the total selling price;
24the amount of tax due from the retailer with respect to such
25transaction; the amount of tax collected from the purchaser by
26the retailer on such transaction (or satisfactory evidence that

 

 

HB3600- 95 -LRB100 09169 HLH 19324 b

1such tax is not due in that particular instance, if that is
2claimed to be the fact); the place and date of the sale, a
3sufficient identification of the property sold, and such other
4information as the Department may reasonably require.
5    Such transaction reporting return shall be filed not later
6than 20 days after the day of delivery of the item that is
7being sold, but may be filed by the retailer at any time sooner
8than that if he chooses to do so. The transaction reporting
9return and tax remittance or proof of exemption from the
10Illinois use tax may be transmitted to the Department by way of
11the State agency with which, or State officer with whom the
12tangible personal property must be titled or registered (if
13titling or registration is required) if the Department and such
14agency or State officer determine that this procedure will
15expedite the processing of applications for title or
16registration.
17    With each such transaction reporting return, the retailer
18shall remit the proper amount of tax due (or shall submit
19satisfactory evidence that the sale is not taxable if that is
20the case), to the Department or its agents, whereupon the
21Department shall issue, in the purchaser's name, a use tax
22receipt (or a certificate of exemption if the Department is
23satisfied that the particular sale is tax exempt) which such
24purchaser may submit to the agency with which, or State officer
25with whom, he must title or register the tangible personal
26property that is involved (if titling or registration is

 

 

HB3600- 96 -LRB100 09169 HLH 19324 b

1required) in support of such purchaser's application for an
2Illinois certificate or other evidence of title or registration
3to such tangible personal property.
4    No retailer's failure or refusal to remit tax under this
5Act precludes a user, who has paid the proper tax to the
6retailer, from obtaining his certificate of title or other
7evidence of title or registration (if titling or registration
8is required) upon satisfying the Department that such user has
9paid the proper tax (if tax is due) to the retailer. The
10Department shall adopt appropriate rules to carry out the
11mandate of this paragraph.
12    If the user who would otherwise pay tax to the retailer
13wants the transaction reporting return filed and the payment of
14the tax or proof of exemption made to the Department before the
15retailer is willing to take these actions and such user has not
16paid the tax to the retailer, such user may certify to the fact
17of such delay by the retailer and may (upon the Department
18being satisfied of the truth of such certification) transmit
19the information required by the transaction reporting return
20and the remittance for tax or proof of exemption directly to
21the Department and obtain his tax receipt or exemption
22determination, in which event the transaction reporting return
23and tax remittance (if a tax payment was required) shall be
24credited by the Department to the proper retailer's account
25with the Department, but without the 2.1% or 1.75% discount
26provided for in this Section being allowed. When the user pays

 

 

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1the tax directly to the Department, he shall pay the tax in the
2same amount and in the same form in which it would be remitted
3if the tax had been remitted to the Department by the retailer.
4    Refunds made by the seller during the preceding return
5period to purchasers, on account of tangible personal property
6returned to the seller, shall be allowed as a deduction under
7subdivision 5 of his monthly or quarterly return, as the case
8may be, in case the seller had theretofore included the
9receipts from the sale of such tangible personal property in a
10return filed by him and had paid the tax imposed by this Act
11with respect to such receipts.
12    Where the seller is a corporation, the return filed on
13behalf of such corporation shall be signed by the president,
14vice-president, secretary or treasurer or by the properly
15accredited agent of such corporation.
16    Where the seller is a limited liability company, the return
17filed on behalf of the limited liability company shall be
18signed by a manager, member, or properly accredited agent of
19the limited liability company.
20    Except as provided in this Section, the retailer filing the
21return under this Section shall, at the time of filing such
22return, pay to the Department the amount of tax imposed by this
23Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
24on and after January 1, 1990, or $5 per calendar year,
25whichever is greater, which is allowed to reimburse the
26retailer for the expenses incurred in keeping records,

 

 

HB3600- 98 -LRB100 09169 HLH 19324 b

1preparing and filing returns, remitting the tax and supplying
2data to the Department on request. Any prepayment made pursuant
3to Section 2d of this Act shall be included in the amount on
4which such 2.1% or 1.75% discount is computed. In the case of
5retailers who report and pay the tax on a transaction by
6transaction basis, as provided in this Section, such discount
7shall be taken with each such tax remittance instead of when
8such retailer files his periodic return. The Department may
9disallow the discount for retailers whose certificate of
10registration is revoked at the time the return is filed, but
11only if the Department's decision to revoke the certificate of
12registration has become final.
13    Before October 1, 2000, if the taxpayer's average monthly
14tax liability to the Department under this Act, the Use Tax
15Act, the Service Occupation Tax Act, and the Service Use Tax
16Act, excluding any liability for prepaid sales tax to be
17remitted in accordance with Section 2d of this Act, was $10,000
18or more during the preceding 4 complete calendar quarters, he
19shall file a return with the Department each month by the 20th
20day of the month next following the month during which such tax
21liability is incurred and shall make payments to the Department
22on or before the 7th, 15th, 22nd and last day of the month
23during which such liability is incurred. On and after October
241, 2000, if the taxpayer's average monthly tax liability to the
25Department under this Act, the Use Tax Act, the Service
26Occupation Tax Act, and the Service Use Tax Act, excluding any

 

 

HB3600- 99 -LRB100 09169 HLH 19324 b

1liability for prepaid sales tax to be remitted in accordance
2with Section 2d of this Act, was $20,000 or more during the
3preceding 4 complete calendar quarters, he shall file a return
4with the Department each month by the 20th day of the month
5next following the month during which such tax liability is
6incurred and shall make payment to the Department on or before
7the 7th, 15th, 22nd and last day of the month during which such
8liability is incurred. If the month during which such tax
9liability is incurred began prior to January 1, 1985, each
10payment shall be in an amount equal to 1/4 of the taxpayer's
11actual liability for the month or an amount set by the
12Department not to exceed 1/4 of the average monthly liability
13of the taxpayer to the Department for the preceding 4 complete
14calendar quarters (excluding the month of highest liability and
15the month of lowest liability in such 4 quarter period). If the
16month during which such tax liability is incurred begins on or
17after January 1, 1985 and prior to January 1, 1987, each
18payment shall be in an amount equal to 22.5% of the taxpayer's
19actual liability for the month or 27.5% of the taxpayer's
20liability for the same calendar month of the preceding year. If
21the month during which such tax liability is incurred begins on
22or after January 1, 1987 and prior to January 1, 1988, each
23payment shall be in an amount equal to 22.5% of the taxpayer's
24actual liability for the month or 26.25% of the taxpayer's
25liability for the same calendar month of the preceding year. If
26the month during which such tax liability is incurred begins on

 

 

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1or after January 1, 1988, and prior to January 1, 1989, or
2begins on or after January 1, 1996, each payment shall be in an
3amount equal to 22.5% of the taxpayer's actual liability for
4the month or 25% of the taxpayer's liability for the same
5calendar month of the preceding year. If the month during which
6such tax liability is incurred begins on or after January 1,
71989, and prior to January 1, 1996, each payment shall be in an
8amount equal to 22.5% of the taxpayer's actual liability for
9the month or 25% of the taxpayer's liability for the same
10calendar month of the preceding year or 100% of the taxpayer's
11actual liability for the quarter monthly reporting period. The
12amount of such quarter monthly payments shall be credited
13against the final tax liability of the taxpayer's return for
14that month. Before October 1, 2000, once applicable, the
15requirement of the making of quarter monthly payments to the
16Department by taxpayers having an average monthly tax liability
17of $10,000 or more as determined in the manner provided above
18shall continue until such taxpayer's average monthly liability
19to the Department during the preceding 4 complete calendar
20quarters (excluding the month of highest liability and the
21month of lowest liability) is less than $9,000, or until such
22taxpayer's average monthly liability to the Department as
23computed for each calendar quarter of the 4 preceding complete
24calendar quarter period is less than $10,000. However, if a
25taxpayer can show the Department that a substantial change in
26the taxpayer's business has occurred which causes the taxpayer

 

 

HB3600- 101 -LRB100 09169 HLH 19324 b

1to anticipate that his average monthly tax liability for the
2reasonably foreseeable future will fall below the $10,000
3threshold stated above, then such taxpayer may petition the
4Department for a change in such taxpayer's reporting status. On
5and after October 1, 2000, once applicable, the requirement of
6the making of quarter monthly payments to the Department by
7taxpayers having an average monthly tax liability of $20,000 or
8more as determined in the manner provided above shall continue
9until such taxpayer's average monthly liability to the
10Department during the preceding 4 complete calendar quarters
11(excluding the month of highest liability and the month of
12lowest liability) is less than $19,000 or until such taxpayer's
13average monthly liability to the Department as computed for
14each calendar quarter of the 4 preceding complete calendar
15quarter period is less than $20,000. However, if a taxpayer can
16show the Department that a substantial change in the taxpayer's
17business has occurred which causes the taxpayer to anticipate
18that his average monthly tax liability for the reasonably
19foreseeable future will fall below the $20,000 threshold stated
20above, then such taxpayer may petition the Department for a
21change in such taxpayer's reporting status. The Department
22shall change such taxpayer's reporting status unless it finds
23that such change is seasonal in nature and not likely to be
24long term. If any such quarter monthly payment is not paid at
25the time or in the amount required by this Section, then the
26taxpayer shall be liable for penalties and interest on the

 

 

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1difference between the minimum amount due as a payment and the
2amount of such quarter monthly payment actually and timely
3paid, except insofar as the taxpayer has previously made
4payments for that month to the Department in excess of the
5minimum payments previously due as provided in this Section.
6The Department shall make reasonable rules and regulations to
7govern the quarter monthly payment amount and quarter monthly
8payment dates for taxpayers who file on other than a calendar
9monthly basis.
10    The provisions of this paragraph apply before October 1,
112001. Without regard to whether a taxpayer is required to make
12quarter monthly payments as specified above, any taxpayer who
13is required by Section 2d of this Act to collect and remit
14prepaid taxes and has collected prepaid taxes which average in
15excess of $25,000 per month during the preceding 2 complete
16calendar quarters, shall file a return with the Department as
17required by Section 2f and shall make payments to the
18Department on or before the 7th, 15th, 22nd and last day of the
19month during which such liability is incurred. If the month
20during which such tax liability is incurred began prior to
21September 1, 1985 (the effective date of Public Act 84-221)
22this amendatory Act of 1985, each payment shall be in an amount
23not less than 22.5% of the taxpayer's actual liability under
24Section 2d. If the month during which such tax liability is
25incurred begins on or after January 1, 1986, each payment shall
26be in an amount equal to 22.5% of the taxpayer's actual

 

 

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1liability for the month or 27.5% of the taxpayer's liability
2for the same calendar month of the preceding calendar year. If
3the month during which such tax liability is incurred begins on
4or after January 1, 1987, each payment shall be in an amount
5equal to 22.5% of the taxpayer's actual liability for the month
6or 26.25% of the taxpayer's liability for the same calendar
7month of the preceding year. The amount of such quarter monthly
8payments shall be credited against the final tax liability of
9the taxpayer's return for that month filed under this Section
10or Section 2f, as the case may be. Once applicable, the
11requirement of the making of quarter monthly payments to the
12Department pursuant to this paragraph shall continue until such
13taxpayer's average monthly prepaid tax collections during the
14preceding 2 complete calendar quarters is $25,000 or less. If
15any such quarter monthly payment is not paid at the time or in
16the amount required, the taxpayer shall be liable for penalties
17and interest on such difference, except insofar as the taxpayer
18has previously made payments for that month in excess of the
19minimum payments previously due.
20    The provisions of this paragraph apply on and after October
211, 2001. Without regard to whether a taxpayer is required to
22make quarter monthly payments as specified above, any taxpayer
23who is required by Section 2d of this Act to collect and remit
24prepaid taxes and has collected prepaid taxes that average in
25excess of $20,000 per month during the preceding 4 complete
26calendar quarters shall file a return with the Department as

 

 

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1required by Section 2f and shall make payments to the
2Department on or before the 7th, 15th, 22nd and last day of the
3month during which the liability is incurred. Each payment
4shall be in an amount equal to 22.5% of the taxpayer's actual
5liability for the month or 25% of the taxpayer's liability for
6the same calendar month of the preceding year. The amount of
7the quarter monthly payments shall be credited against the
8final tax liability of the taxpayer's return for that month
9filed under this Section or Section 2f, as the case may be.
10Once applicable, the requirement of the making of quarter
11monthly payments to the Department pursuant to this paragraph
12shall continue until the taxpayer's average monthly prepaid tax
13collections during the preceding 4 complete calendar quarters
14(excluding the month of highest liability and the month of
15lowest liability) is less than $19,000 or until such taxpayer's
16average monthly liability to the Department as computed for
17each calendar quarter of the 4 preceding complete calendar
18quarters is less than $20,000. If any such quarter monthly
19payment is not paid at the time or in the amount required, the
20taxpayer shall be liable for penalties and interest on such
21difference, except insofar as the taxpayer has previously made
22payments for that month in excess of the minimum payments
23previously due.
24    If any payment provided for in this Section exceeds the
25taxpayer's liabilities under this Act, the Use Tax Act, the
26Service Occupation Tax Act and the Service Use Tax Act, as

 

 

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1shown on an original monthly return, the Department shall, if
2requested by the taxpayer, issue to the taxpayer a credit
3memorandum no later than 30 days after the date of payment. The
4credit evidenced by such credit memorandum may be assigned by
5the taxpayer to a similar taxpayer under this Act, the Use Tax
6Act, the Service Occupation Tax Act or the Service Use Tax Act,
7in accordance with reasonable rules and regulations to be
8prescribed by the Department. If no such request is made, the
9taxpayer may credit such excess payment against tax liability
10subsequently to be remitted to the Department under this Act,
11the Use Tax Act, the Service Occupation Tax Act or the Service
12Use Tax Act, in accordance with reasonable rules and
13regulations prescribed by the Department. If the Department
14subsequently determined that all or any part of the credit
15taken was not actually due to the taxpayer, the taxpayer's 2.1%
16and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
17of the difference between the credit taken and that actually
18due, and that taxpayer shall be liable for penalties and
19interest on such difference.
20    If a retailer of motor fuel is entitled to a credit under
21Section 2d of this Act which exceeds the taxpayer's liability
22to the Department under this Act for the month which the
23taxpayer is filing a return, the Department shall issue the
24taxpayer a credit memorandum for the excess.
25    Beginning January 1, 1990, each month the Department shall
26pay into the Local Government Tax Fund, a special fund in the

 

 

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1State treasury which is hereby created, the net revenue
2realized for the preceding month from the 1% tax on sales of
3food for human consumption which is to be consumed off the
4premises where it is sold (other than alcoholic beverages, soft
5drinks and food which has been prepared for immediate
6consumption) and prescription and nonprescription medicines,
7drugs, medical appliances, products classified as Class III
8medical devices by the United States Food and Drug
9Administration that are used for cancer treatment pursuant to a
10prescription, as well as any accessories and components related
11to those devices, diapers, baby wipes, and insulin, urine
12testing materials, syringes and needles used by diabetics.
13    Beginning January 1, 1990, each month the Department shall
14pay into the County and Mass Transit District Fund, a special
15fund in the State treasury which is hereby created, 4% of the
16net revenue realized for the preceding month from the 6.25%
17general rate.
18    Beginning August 1, 2000, each month the Department shall
19pay into the County and Mass Transit District Fund 20% of the
20net revenue realized for the preceding month from the 1.25%
21rate on the selling price of motor fuel and gasohol. Beginning
22September 1, 2010, each month the Department shall pay into the
23County and Mass Transit District Fund 20% of the net revenue
24realized for the preceding month from the 1.25% rate on the
25selling price of sales tax holiday items.
26    Beginning January 1, 1990, each month the Department shall

 

 

HB3600- 107 -LRB100 09169 HLH 19324 b

1pay into the Local Government Tax Fund 16% of the net revenue
2realized for the preceding month from the 6.25% general rate on
3the selling price of tangible personal property.
4    Beginning August 1, 2000, each month the Department shall
5pay into the Local Government Tax Fund 80% of the net revenue
6realized for the preceding month from the 1.25% rate on the
7selling price of motor fuel and gasohol. Beginning September 1,
82010, each month the Department shall pay into the Local
9Government Tax Fund 80% of the net revenue realized for the
10preceding month from the 1.25% rate on the selling price of
11sales tax holiday items.
12    Beginning October 1, 2009, each month the Department shall
13pay into the Capital Projects Fund an amount that is equal to
14an amount estimated by the Department to represent 80% of the
15net revenue realized for the preceding month from the sale of
16candy, grooming and hygiene products, and soft drinks that had
17been taxed at a rate of 1% prior to September 1, 2009 but that
18are now taxed at 6.25%.
19    Beginning July 1, 2011, each month the Department shall pay
20into the Clean Air Act Permit Fund 80% of the net revenue
21realized for the preceding month from the 6.25% general rate on
22the selling price of sorbents used in Illinois in the process
23of sorbent injection as used to comply with the Environmental
24Protection Act or the federal Clean Air Act, but the total
25payment into the Clean Air Act Permit Fund under this Act and
26the Use Tax Act shall not exceed $2,000,000 in any fiscal year.

 

 

HB3600- 108 -LRB100 09169 HLH 19324 b

1    Beginning July 1, 2013, each month the Department shall pay
2into the Underground Storage Tank Fund from the proceeds
3collected under this Act, the Use Tax Act, the Service Use Tax
4Act, and the Service Occupation Tax Act an amount equal to the
5average monthly deficit in the Underground Storage Tank Fund
6during the prior year, as certified annually by the Illinois
7Environmental Protection Agency, but the total payment into the
8Underground Storage Tank Fund under this Act, the Use Tax Act,
9the Service Use Tax Act, and the Service Occupation Tax Act
10shall not exceed $18,000,000 in any State fiscal year. As used
11in this paragraph, the "average monthly deficit" shall be equal
12to the difference between the average monthly claims for
13payment by the fund and the average monthly revenues deposited
14into the fund, excluding payments made pursuant to this
15paragraph.
16    Beginning July 1, 2015, of the remainder of the moneys
17received by the Department under the Use Tax Act, the Service
18Use Tax Act, the Service Occupation Tax Act, and this Act, each
19month the Department shall deposit $500,000 into the State
20Crime Laboratory Fund.
21    Of the remainder of the moneys received by the Department
22pursuant to this Act, (a) 1.75% thereof shall be paid into the
23Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
24and after July 1, 1989, 3.8% thereof shall be paid into the
25Build Illinois Fund; provided, however, that if in any fiscal
26year the sum of (1) the aggregate of 2.2% or 3.8%, as the case

 

 

HB3600- 109 -LRB100 09169 HLH 19324 b

1may be, of the moneys received by the Department and required
2to be paid into the Build Illinois Fund pursuant to this Act,
3Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
4Act, and Section 9 of the Service Occupation Tax Act, such Acts
5being hereinafter called the "Tax Acts" and such aggregate of
62.2% or 3.8%, as the case may be, of moneys being hereinafter
7called the "Tax Act Amount", and (2) the amount transferred to
8the Build Illinois Fund from the State and Local Sales Tax
9Reform Fund shall be less than the Annual Specified Amount (as
10hereinafter defined), an amount equal to the difference shall
11be immediately paid into the Build Illinois Fund from other
12moneys received by the Department pursuant to the Tax Acts; the
13"Annual Specified Amount" means the amounts specified below for
14fiscal years 1986 through 1993:
15Fiscal YearAnnual Specified Amount
161986$54,800,000
171987$76,650,000
181988$80,480,000
191989$88,510,000
201990$115,330,000
211991$145,470,000
221992$182,730,000
231993$206,520,000;
24and means the Certified Annual Debt Service Requirement (as
25defined in Section 13 of the Build Illinois Bond Act) or the
26Tax Act Amount, whichever is greater, for fiscal year 1994 and

 

 

HB3600- 110 -LRB100 09169 HLH 19324 b

1each fiscal year thereafter; and further provided, that if on
2the last business day of any month the sum of (1) the Tax Act
3Amount required to be deposited into the Build Illinois Bond
4Account in the Build Illinois Fund during such month and (2)
5the amount transferred to the Build Illinois Fund from the
6State and Local Sales Tax Reform Fund shall have been less than
71/12 of the Annual Specified Amount, an amount equal to the
8difference shall be immediately paid into the Build Illinois
9Fund from other moneys received by the Department pursuant to
10the Tax Acts; and, further provided, that in no event shall the
11payments required under the preceding proviso result in
12aggregate payments into the Build Illinois Fund pursuant to
13this clause (b) for any fiscal year in excess of the greater of
14(i) the Tax Act Amount or (ii) the Annual Specified Amount for
15such fiscal year. The amounts payable into the Build Illinois
16Fund under clause (b) of the first sentence in this paragraph
17shall be payable only until such time as the aggregate amount
18on deposit under each trust indenture securing Bonds issued and
19outstanding pursuant to the Build Illinois Bond Act is
20sufficient, taking into account any future investment income,
21to fully provide, in accordance with such indenture, for the
22defeasance of or the payment of the principal of, premium, if
23any, and interest on the Bonds secured by such indenture and on
24any Bonds expected to be issued thereafter and all fees and
25costs payable with respect thereto, all as certified by the
26Director of the Bureau of the Budget (now Governor's Office of

 

 

HB3600- 111 -LRB100 09169 HLH 19324 b

1Management and Budget). If on the last business day of any
2month in which Bonds are outstanding pursuant to the Build
3Illinois Bond Act, the aggregate of moneys deposited in the
4Build Illinois Bond Account in the Build Illinois Fund in such
5month shall be less than the amount required to be transferred
6in such month from the Build Illinois Bond Account to the Build
7Illinois Bond Retirement and Interest Fund pursuant to Section
813 of the Build Illinois Bond Act, an amount equal to such
9deficiency shall be immediately paid from other moneys received
10by the Department pursuant to the Tax Acts to the Build
11Illinois Fund; provided, however, that any amounts paid to the
12Build Illinois Fund in any fiscal year pursuant to this
13sentence shall be deemed to constitute payments pursuant to
14clause (b) of the first sentence of this paragraph and shall
15reduce the amount otherwise payable for such fiscal year
16pursuant to that clause (b). The moneys received by the
17Department pursuant to this Act and required to be deposited
18into the Build Illinois Fund are subject to the pledge, claim
19and charge set forth in Section 12 of the Build Illinois Bond
20Act.
21    Subject to payment of amounts into the Build Illinois Fund
22as provided in the preceding paragraph or in any amendment
23thereto hereafter enacted, the following specified monthly
24installment of the amount requested in the certificate of the
25Chairman of the Metropolitan Pier and Exposition Authority
26provided under Section 8.25f of the State Finance Act, but not

 

 

HB3600- 112 -LRB100 09169 HLH 19324 b

1in excess of sums designated as "Total Deposit", shall be
2deposited in the aggregate from collections under Section 9 of
3the Use Tax Act, Section 9 of the Service Use Tax Act, Section
49 of the Service Occupation Tax Act, and Section 3 of the
5Retailers' Occupation Tax Act into the McCormick Place
6Expansion Project Fund in the specified fiscal years.
7Fiscal YearTotal Deposit
81993         $0
91994 53,000,000
101995 58,000,000
111996 61,000,000
121997 64,000,000
131998 68,000,000
141999 71,000,000
152000 75,000,000
162001 80,000,000
172002 93,000,000
182003 99,000,000
192004103,000,000
202005108,000,000
212006113,000,000
222007119,000,000
232008126,000,000
242009132,000,000
252010139,000,000

 

 

HB3600- 113 -LRB100 09169 HLH 19324 b

12011146,000,000
22012153,000,000
32013161,000,000
42014170,000,000
52015179,000,000
62016189,000,000
72017199,000,000
82018210,000,000
92019221,000,000
102020233,000,000
112021246,000,000
122022260,000,000
132023275,000,000
142024 275,000,000
152025 275,000,000
162026 279,000,000
172027 292,000,000
182028 307,000,000
192029 322,000,000
202030 338,000,000
212031 350,000,000
222032 350,000,000
23and
24each fiscal year
25thereafter that bonds
26are outstanding under

 

 

HB3600- 114 -LRB100 09169 HLH 19324 b

1Section 13.2 of the
2Metropolitan Pier and
3Exposition Authority Act,
4but not after fiscal year 2060.
5    Beginning July 20, 1993 and in each month of each fiscal
6year thereafter, one-eighth of the amount requested in the
7certificate of the Chairman of the Metropolitan Pier and
8Exposition Authority for that fiscal year, less the amount
9deposited into the McCormick Place Expansion Project Fund by
10the State Treasurer in the respective month under subsection
11(g) of Section 13 of the Metropolitan Pier and Exposition
12Authority Act, plus cumulative deficiencies in the deposits
13required under this Section for previous months and years,
14shall be deposited into the McCormick Place Expansion Project
15Fund, until the full amount requested for the fiscal year, but
16not in excess of the amount specified above as "Total Deposit",
17has been deposited.
18    Subject to payment of amounts into the Build Illinois Fund
19and the McCormick Place Expansion Project Fund pursuant to the
20preceding paragraphs or in any amendments thereto hereafter
21enacted, beginning July 1, 1993 and ending on September 30,
222013, the Department shall each month pay into the Illinois Tax
23Increment Fund 0.27% of 80% of the net revenue realized for the
24preceding month from the 6.25% general rate on the selling
25price of tangible personal property.
26    Subject to payment of amounts into the Build Illinois Fund

 

 

HB3600- 115 -LRB100 09169 HLH 19324 b

1and the McCormick Place Expansion Project Fund pursuant to the
2preceding paragraphs or in any amendments thereto hereafter
3enacted, beginning with the receipt of the first report of
4taxes paid by an eligible business and continuing for a 25-year
5period, the Department shall each month pay into the Energy
6Infrastructure Fund 80% of the net revenue realized from the
76.25% general rate on the selling price of Illinois-mined coal
8that was sold to an eligible business. For purposes of this
9paragraph, the term "eligible business" means a new electric
10generating facility certified pursuant to Section 605-332 of
11the Department of Commerce and Economic Opportunity Law of the
12Civil Administrative Code of Illinois.
13    Subject to payment of amounts into the Build Illinois Fund,
14the McCormick Place Expansion Project Fund, the Illinois Tax
15Increment Fund, and the Energy Infrastructure Fund pursuant to
16the preceding paragraphs or in any amendments to this Section
17hereafter enacted, beginning on the first day of the first
18calendar month to occur on or after August 26, 2014 (the
19effective date of Public Act 98-1098) this amendatory Act of
20the 98th General Assembly, each month, from the collections
21made under Section 9 of the Use Tax Act, Section 9 of the
22Service Use Tax Act, Section 9 of the Service Occupation Tax
23Act, and Section 3 of the Retailers' Occupation Tax Act, the
24Department shall pay into the Tax Compliance and Administration
25Fund, to be used, subject to appropriation, to fund additional
26auditors and compliance personnel at the Department of Revenue,

 

 

HB3600- 116 -LRB100 09169 HLH 19324 b

1an amount equal to 1/12 of 5% of 80% of the cash receipts
2collected during the preceding fiscal year by the Audit Bureau
3of the Department under the Use Tax Act, the Service Use Tax
4Act, the Service Occupation Tax Act, the Retailers' Occupation
5Tax Act, and associated local occupation and use taxes
6administered by the Department.
7    Of the remainder of the moneys received by the Department
8pursuant to this Act, 75% thereof shall be paid into the State
9Treasury and 25% shall be reserved in a special account and
10used only for the transfer to the Common School Fund as part of
11the monthly transfer from the General Revenue Fund in
12accordance with Section 8a of the State Finance Act.
13    The Department may, upon separate written notice to a
14taxpayer, require the taxpayer to prepare and file with the
15Department on a form prescribed by the Department within not
16less than 60 days after receipt of the notice an annual
17information return for the tax year specified in the notice.
18Such annual return to the Department shall include a statement
19of gross receipts as shown by the retailer's last Federal
20income tax return. If the total receipts of the business as
21reported in the Federal income tax return do not agree with the
22gross receipts reported to the Department of Revenue for the
23same period, the retailer shall attach to his annual return a
24schedule showing a reconciliation of the 2 amounts and the
25reasons for the difference. The retailer's annual return to the
26Department shall also disclose the cost of goods sold by the

 

 

HB3600- 117 -LRB100 09169 HLH 19324 b

1retailer during the year covered by such return, opening and
2closing inventories of such goods for such year, costs of goods
3used from stock or taken from stock and given away by the
4retailer during such year, payroll information of the
5retailer's business during such year and any additional
6reasonable information which the Department deems would be
7helpful in determining the accuracy of the monthly, quarterly
8or annual returns filed by such retailer as provided for in
9this Section.
10    If the annual information return required by this Section
11is not filed when and as required, the taxpayer shall be liable
12as follows:
13        (i) Until January 1, 1994, the taxpayer shall be liable
14    for a penalty equal to 1/6 of 1% of the tax due from such
15    taxpayer under this Act during the period to be covered by
16    the annual return for each month or fraction of a month
17    until such return is filed as required, the penalty to be
18    assessed and collected in the same manner as any other
19    penalty provided for in this Act.
20        (ii) On and after January 1, 1994, the taxpayer shall
21    be liable for a penalty as described in Section 3-4 of the
22    Uniform Penalty and Interest Act.
23    The chief executive officer, proprietor, owner or highest
24ranking manager shall sign the annual return to certify the
25accuracy of the information contained therein. Any person who
26willfully signs the annual return containing false or

 

 

HB3600- 118 -LRB100 09169 HLH 19324 b

1inaccurate information shall be guilty of perjury and punished
2accordingly. The annual return form prescribed by the
3Department shall include a warning that the person signing the
4return may be liable for perjury.
5    The provisions of this Section concerning the filing of an
6annual information return do not apply to a retailer who is not
7required to file an income tax return with the United States
8Government.
9    As soon as possible after the first day of each month, upon
10certification of the Department of Revenue, the Comptroller
11shall order transferred and the Treasurer shall transfer from
12the General Revenue Fund to the Motor Fuel Tax Fund an amount
13equal to 1.7% of 80% of the net revenue realized under this Act
14for the second preceding month. Beginning April 1, 2000, this
15transfer is no longer required and shall not be made.
16    Net revenue realized for a month shall be the revenue
17collected by the State pursuant to this Act, less the amount
18paid out during that month as refunds to taxpayers for
19overpayment of liability.
20    For greater simplicity of administration, manufacturers,
21importers and wholesalers whose products are sold at retail in
22Illinois by numerous retailers, and who wish to do so, may
23assume the responsibility for accounting and paying to the
24Department all tax accruing under this Act with respect to such
25sales, if the retailers who are affected do not make written
26objection to the Department to this arrangement.

 

 

HB3600- 119 -LRB100 09169 HLH 19324 b

1    Any person who promotes, organizes, provides retail
2selling space for concessionaires or other types of sellers at
3the Illinois State Fair, DuQuoin State Fair, county fairs,
4local fairs, art shows, flea markets and similar exhibitions or
5events, including any transient merchant as defined by Section
62 of the Transient Merchant Act of 1987, is required to file a
7report with the Department providing the name of the merchant's
8business, the name of the person or persons engaged in
9merchant's business, the permanent address and Illinois
10Retailers Occupation Tax Registration Number of the merchant,
11the dates and location of the event and other reasonable
12information that the Department may require. The report must be
13filed not later than the 20th day of the month next following
14the month during which the event with retail sales was held.
15Any person who fails to file a report required by this Section
16commits a business offense and is subject to a fine not to
17exceed $250.
18    Any person engaged in the business of selling tangible
19personal property at retail as a concessionaire or other type
20of seller at the Illinois State Fair, county fairs, art shows,
21flea markets and similar exhibitions or events, or any
22transient merchants, as defined by Section 2 of the Transient
23Merchant Act of 1987, may be required to make a daily report of
24the amount of such sales to the Department and to make a daily
25payment of the full amount of tax due. The Department shall
26impose this requirement when it finds that there is a

 

 

HB3600- 120 -LRB100 09169 HLH 19324 b

1significant risk of loss of revenue to the State at such an
2exhibition or event. Such a finding shall be based on evidence
3that a substantial number of concessionaires or other sellers
4who are not residents of Illinois will be engaging in the
5business of selling tangible personal property at retail at the
6exhibition or event, or other evidence of a significant risk of
7loss of revenue to the State. The Department shall notify
8concessionaires and other sellers affected by the imposition of
9this requirement. In the absence of notification by the
10Department, the concessionaires and other sellers shall file
11their returns as otherwise required in this Section.
12(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
1398-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff.
148-26-14; 99-352, eff. 8-12-15; 99-858, eff. 8-19-16; 99-933,
15eff. 1-27-17; revised 2-3-17.)