95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB2445

 

Introduced 2/15/2008, by Sen. Deanna Demuzio

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/6z-18   from Ch. 127, par. 142z-18
35 ILCS 115/9   from Ch. 120, par. 439.109
35 ILCS 120/3   from Ch. 120, par. 442

    Amends the Service Occupation Tax Act and the Retailers' Occupation Tax Act. Requires that 28% of the tax proceeds under those Acts realized from the sale or transfer of coal be deposited to the Local Government Tax Fund, and provides that no amounts realized from the sale or transfer of coal be deposited into the County and Mass Transit District Fund. Amends the State Finance Act concerning the administration of the Local Government Tax Fund. Requires the Department of Revenue to certify the amount to be disbursed to a municipality or county that is realized from the 6.25% general rate on the selling price of coal. Limits the municipality's or county's use of that certified amount to certain economic-development purposes. Effective immediately.


LRB095 19491 BDD 45787 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2445 LRB095 19491 BDD 45787 b

1     AN ACT concerning revenue.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The State Finance Act is amended by changing
5 Section 6z-18 as follows:
 
6     (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
7     Sec. 6z-18. A portion of the money paid into the Local
8 Government Tax Fund from sales of food for human consumption
9 which is to be consumed off the premises where it is sold
10 (other than alcoholic beverages, soft drinks and food which has
11 been prepared for immediate consumption) and prescription and
12 nonprescription medicines, drugs, medical appliances and
13 insulin, urine testing materials, syringes and needles used by
14 diabetics, which occurred in municipalities, shall be
15 distributed to each municipality based upon the sales which
16 occurred in that municipality. The remainder shall be
17 distributed to each county based upon the sales which occurred
18 in the unincorporated area of that county.
19     A portion of the money paid into the Local Government Tax
20 Fund from the 6.25% general use tax rate on the selling price
21 of tangible personal property which is purchased outside
22 Illinois at retail from a retailer and which is titled or
23 registered by any agency of this State's government shall be

 

 

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1 distributed to municipalities as provided in this paragraph.
2 Each municipality shall receive the amount attributable to
3 sales for which Illinois addresses for titling or registration
4 purposes are given as being in such municipality. The remainder
5 of the money paid into the Local Government Tax Fund from such
6 sales shall be distributed to counties. Each county shall
7 receive the amount attributable to sales for which Illinois
8 addresses for titling or registration purposes are given as
9 being located in the unincorporated area of such county.
10     A portion of the money paid into the Local Government Tax
11 Fund from the 6.25% general rate (and, beginning July 1, 2000
12 and through December 31, 2000, the 1.25% rate on motor fuel and
13 gasohol) on sales subject to taxation under the Retailers'
14 Occupation Tax Act and the Service Occupation Tax Act, which
15 occurred in municipalities, shall be distributed to each
16 municipality, based upon the sales which occurred in that
17 municipality. The remainder shall be distributed to each
18 county, based upon the sales which occurred in the
19 unincorporated area of such county.
20     For the purpose of determining allocation to the local
21 government unit, a retail sale by a producer of coal or other
22 mineral mined in Illinois is a sale at retail at the place
23 where the coal or other mineral mined in Illinois is extracted
24 from the earth. This paragraph does not apply to coal or other
25 mineral when it is delivered or shipped by the seller to the
26 purchaser at a point outside Illinois so that the sale is

 

 

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1 exempt under the United States Constitution as a sale in
2 interstate or foreign commerce.
3     Whenever the Department determines that a refund of money
4 paid into the Local Government Tax Fund should be made to a
5 claimant instead of issuing a credit memorandum, the Department
6 shall notify the State Comptroller, who shall cause the order
7 to be drawn for the amount specified, and to the person named,
8 in such notification from the Department. Such refund shall be
9 paid by the State Treasurer out of the Local Government Tax
10 Fund.
11     On or before the 25th day of each calendar month, the
12 Department shall prepare and certify to the Comptroller the
13 disbursement of stated sums of money to named municipalities
14 and counties, the municipalities and counties to be those
15 entitled to distribution of taxes or penalties paid to the
16 Department during the second preceding calendar month. The
17 amount to be paid to each municipality or county shall be the
18 amount (not including credit memoranda) collected during the
19 second preceding calendar month by the Department and paid into
20 the Local Government Tax Fund, plus an amount the Department
21 determines is necessary to offset any amounts which were
22 erroneously paid to a different taxing body, and not including
23 an amount equal to the amount of refunds made during the second
24 preceding calendar month by the Department, and not including
25 any amount which the Department determines is necessary to
26 offset any amounts which are payable to a different taxing body

 

 

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1 but were erroneously paid to the municipality or county. Within
2 10 days after receipt, by the Comptroller, of the disbursement
3 certification to the municipalities and counties, provided for
4 in this Section to be given to the Comptroller by the
5 Department, the Comptroller shall cause the orders to be drawn
6 for the respective amounts in accordance with the directions
7 contained in such certification.
8     When certifying the amount of monthly disbursement to a
9 municipality or county under this Section, the Department shall
10 increase or decrease that amount by an amount necessary to
11 offset any misallocation of previous disbursements. The offset
12 amount shall be the amount erroneously disbursed within the 6
13 months preceding the time a misallocation is discovered.
14     When certifying the amount of monthly disbursement to a
15 municipality or county under this Section, the Department shall
16 certify the amount to be disbursed to that municipality or
17 county that is realized for the preceding month from the 6.25%
18 general rate on the selling price of coal. The county or
19 municipality may use that certified amount only for the
20 following purposes:
21         (1) operational support for multiple
22     county-regional-development partnerships;
23         (2) business development, business site selection and
24     development, public infrastructure development, tourism,
25     regional development efforts, technical support, and
26     professional services;

 

 

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1         (3) technical assistance on business development and
2     financing issues relating to assisting small business in
3     retaining current levels of employment and expanding
4     levels of employment;
5         (4) incentive packages to attract out-of-state
6     businesses to relocate in Illinois;
7         (5) all costs associated with the development of
8     business parks;
9         (6) infrastructure expansion related directly to the
10     creation or retention of jobs;
11         (7) workforce development and workforce training and
12     retraining;
13         (8) the research, development, and delivery of
14     alternate energy, biofuels, and ethanol; and
15         (9) reclamation activities and sight redevelopment
16     activities of mining operations that have shut down.
17     The provisions directing the distributions from the
18 special fund in the State Treasury provided for in this Section
19 shall constitute an irrevocable and continuing appropriation
20 of all amounts as provided herein. The State Treasurer and
21 State Comptroller are hereby authorized to make distributions
22 as provided in this Section.
23     In construing any development, redevelopment, annexation,
24 preannexation or other lawful agreement in effect prior to
25 September 1, 1990, which describes or refers to receipts from a
26 county or municipal retailers' occupation tax, use tax or

 

 

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1 service occupation tax which now cannot be imposed, such
2 description or reference shall be deemed to include the
3 replacement revenue for such abolished taxes, distributed from
4 the Local Government Tax Fund.
5 (Source: P.A. 90-491, eff. 1-1-98; 91-51, eff. 6-30-99; 91-872,
6 eff. 7-1-00.)
 
7     Section 10. The Service Occupation Tax Act is amended by
8 changing Section 9 as follows:
 
9     (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
10     Sec. 9. Each serviceman required or authorized to collect
11 the tax herein imposed shall pay to the Department the amount
12 of such tax at the time when he is required to file his return
13 for the period during which such tax was collectible, less a
14 discount of 2.1% prior to January 1, 1990, and 1.75% on and
15 after January 1, 1990, or $5 per calendar year, whichever is
16 greater, which is allowed to reimburse the serviceman for
17 expenses incurred in collecting the tax, keeping records,
18 preparing and filing returns, remitting the tax and supplying
19 data to the Department on request.
20     Where such tangible personal property is sold under a
21 conditional sales contract, or under any other form of sale
22 wherein the payment of the principal sum, or a part thereof, is
23 extended beyond the close of the period for which the return is
24 filed, the serviceman, in collecting the tax may collect, for

 

 

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1 each tax return period, only the tax applicable to the part of
2 the selling price actually received during such tax return
3 period.
4     Except as provided hereinafter in this Section, on or
5 before the twentieth day of each calendar month, such
6 serviceman shall file a return for the preceding calendar month
7 in accordance with reasonable rules and regulations to be
8 promulgated by the Department of Revenue. Such return shall be
9 filed on a form prescribed by the Department and shall contain
10 such information as the Department may reasonably require.
11     The Department may require returns to be filed on a
12 quarterly basis. If so required, a return for each calendar
13 quarter shall be filed on or before the twentieth day of the
14 calendar month following the end of such calendar quarter. The
15 taxpayer shall also file a return with the Department for each
16 of the first two months of each calendar quarter, on or before
17 the twentieth day of the following calendar month, stating:
18         1. The name of the seller;
19         2. The address of the principal place of business from
20     which he engages in business as a serviceman in this State;
21         3. The total amount of taxable receipts received by him
22     during the preceding calendar month, including receipts
23     from charge and time sales, but less all deductions allowed
24     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
6 the proper notice and demand for signature by the Department,
7 the return shall be considered valid and any amount shown to be
8 due on the return shall be deemed assessed.
9     Prior to October 1, 2003, and on and after September 1,
10 2004 a serviceman may accept a Manufacturer's Purchase Credit
11 certification from a purchaser in satisfaction of Service Use
12 Tax as provided in Section 3-70 of the Service Use Tax Act if
13 the purchaser provides the appropriate documentation as
14 required by Section 3-70 of the Service Use Tax Act. A
15 Manufacturer's Purchase Credit certification, accepted prior
16 to October 1, 2003 or on or after September 1, 2004 by a
17 serviceman as provided in Section 3-70 of the Service Use Tax
18 Act, may be used by that serviceman to satisfy Service
19 Occupation Tax liability in the amount claimed in the
20 certification, not to exceed 6.25% of the receipts subject to
21 tax from a qualifying purchase. A Manufacturer's Purchase
22 Credit reported on any original or amended return filed under
23 this Act after October 20, 2003 for reporting periods prior to
24 September 1, 2004 shall be disallowed. Manufacturer's Purchase
25 Credit reported on annual returns due on or after January 1,
26 2005 will be disallowed for periods prior to September 1, 2004.

 

 

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1 No Manufacturer's Purchase Credit may be used after September
2 30, 2003 through August 31, 2004 to satisfy any tax liability
3 imposed under this Act, including any audit liability.
4     If the serviceman's average monthly tax liability to the
5 Department does not exceed $200, the Department may authorize
6 his returns to be filed on a quarter annual basis, with the
7 return for January, February and March of a given year being
8 due by April 20 of such year; with the return for April, May
9 and June of a given year being due by July 20 of such year; with
10 the return for July, August and September of a given year being
11 due by October 20 of such year, and with the return for
12 October, November and December of a given year being due by
13 January 20 of the following year.
14     If the serviceman's average monthly tax liability to the
15 Department does not exceed $50, the Department may authorize
16 his returns to be filed on an annual basis, with the return for
17 a given year being due by January 20 of the following year.
18     Such quarter annual and annual returns, as to form and
19 substance, shall be subject to the same requirements as monthly
20 returns.
21     Notwithstanding any other provision in this Act concerning
22 the time within which a serviceman may file his return, in the
23 case of any serviceman who ceases to engage in a kind of
24 business which makes him responsible for filing returns under
25 this Act, such serviceman shall file a final return under this
26 Act with the Department not more than 1 month after

 

 

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

 

 

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1     Before August 1 of each year beginning in 1993, the
2 Department shall notify all taxpayers required to make payments
3 by electronic funds transfer. All taxpayers required to make
4 payments by electronic funds transfer shall make those payments
5 for a minimum of one year beginning on October 1.
6     Any taxpayer not required to make payments by electronic
7 funds transfer may make payments by electronic funds transfer
8 with the permission of the Department.
9     All taxpayers required to make payment by electronic funds
10 transfer and any taxpayers authorized to voluntarily make
11 payments by electronic funds transfer shall make those payments
12 in the manner authorized by the Department.
13     The Department shall adopt such rules as are necessary to
14 effectuate a program of electronic funds transfer and the
15 requirements of this Section.
16     Where a serviceman collects the tax with respect to the
17 selling price of tangible personal property which he sells and
18 the purchaser thereafter returns such tangible personal
19 property and the serviceman refunds the selling price thereof
20 to the purchaser, such serviceman shall also refund, to the
21 purchaser, the tax so collected from the purchaser. When filing
22 his return for the period in which he refunds such tax to the
23 purchaser, the serviceman may deduct the amount of the tax so
24 refunded by him to the purchaser from any other Service
25 Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
26 Use Tax which such serviceman may be required to pay or remit

 

 

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1 to the Department, as shown by such return, provided that the
2 amount of the tax to be deducted shall previously have been
3 remitted to the Department by such serviceman. If the
4 serviceman shall not previously have remitted the amount of
5 such tax to the Department, he shall be entitled to no
6 deduction hereunder upon refunding such tax to the purchaser.
7     If experience indicates such action to be practicable, the
8 Department may prescribe and furnish a combination or joint
9 return which will enable servicemen, who are required to file
10 returns hereunder and also under the Retailers' Occupation Tax
11 Act, the Use Tax Act or the Service Use Tax Act, to furnish all
12 the return information required by all said Acts on the one
13 form.
14     Where the serviceman has more than one business registered
15 with the Department under separate registrations hereunder,
16 such serviceman shall file separate returns for each registered
17 business.
18     Beginning January 1, 1990, each month the Department shall
19 pay into the Local Government Tax Fund the revenue realized for
20 the preceding month from the 1% tax on sales of food for human
21 consumption which is to be consumed off the premises where it
22 is sold (other than alcoholic beverages, soft drinks and food
23 which has been prepared for immediate consumption) and
24 prescription and nonprescription medicines, drugs, medical
25 appliances and insulin, urine testing materials, syringes and
26 needles used by diabetics.

 

 

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1     Beginning January 1, 1990, each month the Department shall
2 pay into the County and Mass Transit District Fund 4% of the
3 revenue realized for the preceding month from the 6.25% general
4 rate, but beginning July 1, 2008, the Department shall not pay
5 into the County and Mass Transit District Fund any revenue
6 realized from the 6.25% general rate on the selling price of
7 coal.
8     Beginning August 1, 2000, each month the Department shall
9 pay into the County and Mass Transit District Fund 20% of the
10 net revenue realized for the preceding month from the 1.25%
11 rate on the selling price of motor fuel and gasohol.
12     Through June 30, 2008 Beginning January 1, 1990, each month
13 the Department shall pay into the Local Government Tax Fund 16%
14 of the revenue realized for the preceding month from the 6.25%
15 general rate on transfers of tangible personal property, and
16 beginning July 1, 2008, each month the Department shall pay
17 into the Local Government Tax Fund 28% of the net revenue
18 realized for the preceding month from the 6.25% general rate on
19 the selling price of coal and 16% of the net revenue realized
20 for the preceding month from the 6.25% general rate on the
21 selling price of all other tangible personal property.
22     Beginning August 1, 2000, each month the Department shall
23 pay into the Local Government Tax Fund 80% of the net revenue
24 realized for the preceding month from the 1.25% rate on the
25 selling price of motor fuel and gasohol.
26     Of the remainder of the moneys received by the Department

 

 

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

 

 

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

 

 

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

 

 

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11993         $0
21994 53,000,000
31995 58,000,000
41996 61,000,000
51997 64,000,000
61998 68,000,000
71999 71,000,000
82000 75,000,000
92001 80,000,000
102002 93,000,000
112003 99,000,000
122004103,000,000
132005108,000,000
142006113,000,000
152007119,000,000
162008126,000,000
172009132,000,000
182010139,000,000
192011146,000,000
202012153,000,000
212013161,000,000
222014170,000,000
232015179,000,000
242016189,000,000
252017199,000,000
262018210,000,000

 

 

SB2445 - 18 - LRB095 19491 BDD 45787 b

12019221,000,000
22020233,000,000
32021246,000,000
42022260,000,000
52023 and275,000,000
6each fiscal year
7thereafter that bonds
8are outstanding under
9Section 13.2 of the
10Metropolitan Pier and
11Exposition Authority Act,
12but not after fiscal year 2042.
13     Beginning July 20, 1993 and in each month of each fiscal
14 year thereafter, one-eighth of the amount requested in the
15 certificate of the Chairman of the Metropolitan Pier and
16 Exposition Authority for that fiscal year, less the amount
17 deposited into the McCormick Place Expansion Project Fund by
18 the State Treasurer in the respective month under subsection
19 (g) of Section 13 of the Metropolitan Pier and Exposition
20 Authority Act, plus cumulative deficiencies in the deposits
21 required under this Section for previous months and years,
22 shall be deposited into the McCormick Place Expansion Project
23 Fund, until the full amount requested for the fiscal year, but
24 not in excess of the amount specified above as "Total Deposit",
25 has been deposited.
26     Subject to payment of amounts into the Build Illinois Fund

 

 

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1 and the McCormick Place Expansion Project Fund pursuant to the
2 preceding paragraphs or in any amendments thereto hereafter
3 enacted, beginning July 1, 1993, the Department shall each
4 month pay into the Illinois Tax Increment Fund 0.27% of 80% of
5 the net revenue realized for the preceding month from the 6.25%
6 general rate on the selling price of tangible personal
7 property.
8     Subject to payment of amounts into the Build Illinois Fund
9 and the McCormick Place Expansion Project Fund pursuant to the
10 preceding paragraphs or in any amendments thereto hereafter
11 enacted, beginning with the receipt of the first report of
12 taxes paid by an eligible business and continuing for a 25-year
13 period, the Department shall each month pay into the Energy
14 Infrastructure Fund 80% of the net revenue realized from the
15 6.25% general rate on the selling price of Illinois-mined coal
16 that was sold to an eligible business. For purposes of this
17 paragraph, the term "eligible business" means a new electric
18 generating facility certified pursuant to Section 605-332 of
19 the Department of Commerce and Economic Opportunity Law of the
20 Civil Administrative Code of Illinois.
21     Remaining moneys received by the Department pursuant to
22 this Act shall be paid into the General Revenue Fund of the
23 State Treasury.
24     The Department may, upon separate written notice to a
25 taxpayer, require the taxpayer to prepare and file with the
26 Department on a form prescribed by the Department within not

 

 

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1 less than 60 days after receipt of the notice an annual
2 information return for the tax year specified in the notice.
3 Such annual return to the Department shall include a statement
4 of gross receipts as shown by the taxpayer's last Federal
5 income tax return. If the total receipts of the business as
6 reported in the Federal income tax return do not agree with the
7 gross receipts reported to the Department of Revenue for the
8 same period, the taxpayer shall attach to his annual return a
9 schedule showing a reconciliation of the 2 amounts and the
10 reasons for the difference. The taxpayer's annual return to the
11 Department shall also disclose the cost of goods sold by the
12 taxpayer during the year covered by such return, opening and
13 closing inventories of such goods for such year, cost of goods
14 used from stock or taken from stock and given away by the
15 taxpayer during such year, pay roll information of the
16 taxpayer's business during such year and any additional
17 reasonable information which the Department deems would be
18 helpful in determining the accuracy of the monthly, quarterly
19 or annual returns filed by such taxpayer as hereinbefore
20 provided for in this Section.
21     If the annual information return required by this Section
22 is not filed when and as required, the taxpayer shall be liable
23 as follows:
24         (i) Until January 1, 1994, the taxpayer shall be liable
25     for a penalty equal to 1/6 of 1% of the tax due from such
26     taxpayer under this Act during the period to be covered by

 

 

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1     the annual return for each month or fraction of a month
2     until such return is filed as required, the penalty to be
3     assessed and collected in the same manner as any other
4     penalty provided for in this Act.
5         (ii) On and after January 1, 1994, the taxpayer shall
6     be liable for a penalty as described in Section 3-4 of the
7     Uniform Penalty and Interest Act.
8     The chief executive officer, proprietor, owner or highest
9 ranking manager shall sign the annual return to certify the
10 accuracy of the information contained therein. Any person who
11 willfully signs the annual return containing false or
12 inaccurate information shall be guilty of perjury and punished
13 accordingly. The annual return form prescribed by the
14 Department shall include a warning that the person signing the
15 return may be liable for perjury.
16     The foregoing portion of this Section concerning the filing
17 of an annual information return shall not apply to a serviceman
18 who is not required to file an income tax return with the
19 United States Government.
20     As soon as possible after the first day of each month, upon
21 certification of the Department of Revenue, the Comptroller
22 shall order transferred and the Treasurer shall transfer from
23 the General Revenue Fund to the Motor Fuel Tax Fund an amount
24 equal to 1.7% of 80% of the net revenue realized under this Act
25 for the second preceding month. Beginning April 1, 2000, this
26 transfer is no longer required and shall not be made.

 

 

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1     Net revenue realized for a month shall be the revenue
2 collected by the State pursuant to this Act, less the amount
3 paid out during that month as refunds to taxpayers for
4 overpayment of liability.
5     For greater simplicity of administration, it shall be
6 permissible for manufacturers, importers and wholesalers whose
7 products are sold by numerous servicemen in Illinois, and who
8 wish to do so, to assume the responsibility for accounting and
9 paying to the Department all tax accruing under this Act with
10 respect to such sales, if the servicemen who are affected do
11 not make written objection to the Department to this
12 arrangement.
13 (Source: P.A. 93-24, eff. 6-20-03; 93-840, eff. 7-30-04;
14 94-1074, eff. 12-26-06.)
 
15     Section 15. The Retailers' Occupation Tax Act is amended by
16 changing Section 3 as follows:
 
17     (35 ILCS 120/3)  (from Ch. 120, par. 442)
18     Sec. 3. Except as provided in this Section, on or before
19 the twentieth day of each calendar month, every person engaged
20 in the business of selling tangible personal property at retail
21 in this State during the preceding calendar month shall file a
22 return with the Department, stating:
23         1. The name of the seller;
24         2. His residence address and the address of his

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1 with the Department each month by the 20th day of the month
2 next following the month during which such tax liability is
3 incurred and shall make payment to the Department on or before
4 the 7th, 15th, 22nd and last day of the month during which such
5 liability is incurred. If the month during which such tax
6 liability is incurred began prior to January 1, 1985, each
7 payment shall be in an amount equal to 1/4 of the taxpayer's
8 actual liability for the month or an amount set by the
9 Department not to exceed 1/4 of the average monthly liability
10 of the taxpayer to the Department for the preceding 4 complete
11 calendar quarters (excluding the month of highest liability and
12 the month of lowest liability in such 4 quarter period). If the
13 month during which such tax liability is incurred begins on or
14 after January 1, 1985 and prior to January 1, 1987, each
15 payment shall be in an amount equal to 22.5% of the taxpayer's
16 actual liability for the month or 27.5% of the taxpayer's
17 liability for the same calendar month of the preceding year. If
18 the month during which such tax liability is incurred begins on
19 or after January 1, 1987 and prior to January 1, 1988, each
20 payment shall be in an amount equal to 22.5% of the taxpayer's
21 actual liability for the month or 26.25% of the taxpayer's
22 liability for the same calendar month of the preceding year. If
23 the month during which such tax liability is incurred begins on
24 or after January 1, 1988, and prior to January 1, 1989, or
25 begins on or after January 1, 1996, each payment shall be in an
26 amount equal to 22.5% of the taxpayer's actual liability for

 

 

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

 

 

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

 

 

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1 payments for that month to the Department in excess of the
2 minimum payments previously due as provided in this Section.
3 The Department shall make reasonable rules and regulations to
4 govern the quarter monthly payment amount and quarter monthly
5 payment dates for taxpayers who file on other than a calendar
6 monthly basis.
7     The provisions of this paragraph apply before October 1,
8 2001. Without regard to whether a taxpayer is required to make
9 quarter monthly payments as specified above, any taxpayer who
10 is required by Section 2d of this Act to collect and remit
11 prepaid taxes and has collected prepaid taxes which average in
12 excess of $25,000 per month during the preceding 2 complete
13 calendar quarters, shall file a return with the Department as
14 required by Section 2f and shall make payments to the
15 Department on or before the 7th, 15th, 22nd and last day of the
16 month during which such liability is incurred. If the month
17 during which such tax liability is incurred began prior to the
18 effective date of this amendatory Act of 1985, each payment
19 shall be in an amount not less than 22.5% of the taxpayer's
20 actual liability under Section 2d. If the month during which
21 such tax liability is incurred begins on or after January 1,
22 1986, each payment shall be in an amount equal to 22.5% of the
23 taxpayer's actual liability for the month or 27.5% of the
24 taxpayer's liability for the same calendar month of the
25 preceding calendar year. If the month during which such tax
26 liability is incurred begins on or after January 1, 1987, each

 

 

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

 

 

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1 shall be in an amount equal to 22.5% of the taxpayer's actual
2 liability for the month or 25% of the taxpayer's liability for
3 the same calendar month of the preceding year. The amount of
4 the quarter monthly payments shall be credited against the
5 final tax liability of the taxpayer's return for that month
6 filed under this Section or Section 2f, as the case may be.
7 Once applicable, the requirement of the making of quarter
8 monthly payments to the Department pursuant to this paragraph
9 shall continue until the taxpayer's average monthly prepaid tax
10 collections during the preceding 4 complete calendar quarters
11 (excluding the month of highest liability and the month of
12 lowest liability) is less than $19,000 or until such taxpayer's
13 average monthly liability to the Department as computed for
14 each calendar quarter of the 4 preceding complete calendar
15 quarters is less than $20,000. If any such quarter monthly
16 payment is not paid at the time or in the amount required, the
17 taxpayer shall be liable for penalties and interest on such
18 difference, except insofar as the taxpayer has previously made
19 payments for that month in excess of the minimum payments
20 previously due.
21     If any payment provided for in this Section exceeds the
22 taxpayer's liabilities under this Act, the Use Tax Act, the
23 Service Occupation Tax Act and the Service Use Tax Act, as
24 shown on an original monthly return, the Department shall, if
25 requested by the taxpayer, issue to the taxpayer a credit
26 memorandum no later than 30 days after the date of payment. The

 

 

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

 

 

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1 premises where it is sold (other than alcoholic beverages, soft
2 drinks and food which has been prepared for immediate
3 consumption) and prescription and nonprescription medicines,
4 drugs, medical appliances and insulin, urine testing
5 materials, syringes and needles used by diabetics.
6     Beginning January 1, 1990, each month the Department shall
7 pay into the County and Mass Transit District Fund, a special
8 fund in the State treasury which is hereby created, 4% of the
9 net revenue realized for the preceding month from the 6.25%
10 general rate, but beginning July 1, 2008, the Department shall
11 not pay into the County and Mass Transit District Fund any
12 revenue realized from the 6.25% general rate on the selling
13 price of coal.
14     Beginning August 1, 2000, each month the Department shall
15 pay into the County and Mass Transit District Fund 20% of the
16 net revenue realized for the preceding month from the 1.25%
17 rate on the selling price of motor fuel and gasohol.
18     Through June 30, 2008, Beginning January 1, 1990, each
19 month the Department shall pay into the Local Government Tax
20 Fund 16% of the net revenue realized for the preceding month
21 from the 6.25% general rate on the selling price of tangible
22 personal property, and beginning July 1, 2008, each month the
23 Department shall pay into the Local Government Tax Fund 28% of
24 the net revenue realized for the preceding month from the 6.25%
25 general rate on the selling price of coal and 16% of the net
26 revenue realized for the preceding month from the 6.25% general

 

 

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1 rate on the selling price of all other tangible personal
2 property.
3     Beginning August 1, 2000, each month the Department shall
4 pay into the Local Government Tax Fund 80% of the net revenue
5 realized for the preceding month from the 1.25% rate on the
6 selling price of motor fuel and gasohol.
7     Of the remainder of the moneys received by the Department
8 pursuant to this Act, (a) 1.75% thereof shall be paid into the
9 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
10 and after July 1, 1989, 3.8% thereof shall be paid into the
11 Build Illinois Fund; provided, however, that if in any fiscal
12 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
13 may be, of the moneys received by the Department and required
14 to be paid into the Build Illinois Fund pursuant to this Act,
15 Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
16 Act, and Section 9 of the Service Occupation Tax Act, such Acts
17 being hereinafter called the "Tax Acts" and such aggregate of
18 2.2% or 3.8%, as the case may be, of moneys being hereinafter
19 called the "Tax Act Amount", and (2) the amount transferred to
20 the Build Illinois Fund from the State and Local Sales Tax
21 Reform Fund shall be less than the Annual Specified Amount (as
22 hereinafter defined), an amount equal to the difference shall
23 be immediately paid into the Build Illinois Fund from other
24 moneys received by the Department pursuant to the Tax Acts; the
25 "Annual Specified Amount" means the amounts specified below for
26 fiscal years 1986 through 1993:

 

 

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1Fiscal YearAnnual Specified Amount
21986$54,800,000
31987$76,650,000
41988$80,480,000
51989$88,510,000
61990$115,330,000
71991$145,470,000
81992$182,730,000
91993$206,520,000;
10 and means the Certified Annual Debt Service Requirement (as
11 defined in Section 13 of the Build Illinois Bond Act) or the
12 Tax Act Amount, whichever is greater, for fiscal year 1994 and
13 each fiscal year thereafter; and further provided, that if on
14 the last business day of any month the sum of (1) the Tax Act
15 Amount required to be deposited into the Build Illinois Bond
16 Account in the Build Illinois Fund during such month and (2)
17 the amount transferred to the Build Illinois Fund from the
18 State and Local Sales Tax Reform Fund shall have been less than
19 1/12 of the Annual Specified Amount, an amount equal to the
20 difference shall be immediately paid into the Build Illinois
21 Fund from other moneys received by the Department pursuant to
22 the Tax Acts; and, further provided, that in no event shall the
23 payments required under the preceding proviso result in
24 aggregate payments into the Build Illinois Fund pursuant to
25 this clause (b) for any fiscal year in excess of the greater of
26 (i) the Tax Act Amount or (ii) the Annual Specified Amount for

 

 

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

 

 

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1 reduce the amount otherwise payable for such fiscal year
2 pursuant to that clause (b). The moneys received by the
3 Department pursuant to this Act and required to be deposited
4 into the Build Illinois Fund are subject to the pledge, claim
5 and charge set forth in Section 12 of the Build Illinois Bond
6 Act.
7     Subject to payment of amounts into the Build Illinois Fund
8 as provided in the preceding paragraph or in any amendment
9 thereto hereafter enacted, the following specified monthly
10 installment of the amount requested in the certificate of the
11 Chairman of the Metropolitan Pier and Exposition Authority
12 provided under Section 8.25f of the State Finance Act, but not
13 in excess of sums designated as "Total Deposit", shall be
14 deposited in the aggregate from collections under Section 9 of
15 the Use Tax Act, Section 9 of the Service Use Tax Act, Section
16 9 of the Service Occupation Tax Act, and Section 3 of the
17 Retailers' Occupation Tax Act into the McCormick Place
18 Expansion Project Fund in the specified fiscal years.
19Fiscal YearTotal Deposit
201993         $0
211994 53,000,000
221995 58,000,000
231996 61,000,000
241997 64,000,000
251998 68,000,000

 

 

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11999 71,000,000
22000 75,000,000
32001 80,000,000
42002 93,000,000
52003 99,000,000
62004103,000,000
72005108,000,000
82006113,000,000
92007119,000,000
102008126,000,000
112009132,000,000
122010139,000,000
132011146,000,000
142012153,000,000
152013161,000,000
162014170,000,000
172015179,000,000
182016189,000,000
192017199,000,000
202018210,000,000
212019221,000,000
222020233,000,000
232021246,000,000
242022260,000,000
252023 and275,000,000
26each fiscal year

 

 

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1thereafter that bonds
2are outstanding under
3Section 13.2 of the
4Metropolitan Pier and
5Exposition Authority Act,
6but not after fiscal year 2042.
7     Beginning July 20, 1993 and in each month of each fiscal
8 year thereafter, one-eighth of the amount requested in the
9 certificate of the Chairman of the Metropolitan Pier and
10 Exposition Authority for that fiscal year, less the amount
11 deposited into the McCormick Place Expansion Project Fund by
12 the State Treasurer in the respective month under subsection
13 (g) of Section 13 of the Metropolitan Pier and Exposition
14 Authority Act, plus cumulative deficiencies in the deposits
15 required under this Section for previous months and years,
16 shall be deposited into the McCormick Place Expansion Project
17 Fund, until the full amount requested for the fiscal year, but
18 not in excess of the amount specified above as "Total Deposit",
19 has been deposited.
20     Subject to payment of amounts into the Build Illinois Fund
21 and the McCormick Place Expansion Project Fund pursuant to the
22 preceding paragraphs or in any amendments thereto hereafter
23 enacted, beginning July 1, 1993, the Department shall each
24 month pay into the Illinois Tax Increment Fund 0.27% of 80% of
25 the net revenue realized for the preceding month from the 6.25%
26 general rate on the selling price of tangible personal

 

 

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1 property.
2     Subject to payment of amounts into the Build Illinois Fund
3 and the McCormick Place Expansion Project Fund pursuant to the
4 preceding paragraphs or in any amendments thereto hereafter
5 enacted, beginning with the receipt of the first report of
6 taxes paid by an eligible business and continuing for a 25-year
7 period, the Department shall each month pay into the Energy
8 Infrastructure Fund 80% of the net revenue realized from the
9 6.25% general rate on the selling price of Illinois-mined coal
10 that was sold to an eligible business. For purposes of this
11 paragraph, the term "eligible business" means a new electric
12 generating facility certified pursuant to Section 605-332 of
13 the Department of Commerce and Economic Opportunity Law of the
14 Civil Administrative Code of Illinois.
15     Of the remainder of the moneys received by the Department
16 pursuant to this Act, 75% thereof shall be paid into the State
17 Treasury and 25% shall be reserved in a special account and
18 used only for the transfer to the Common School Fund as part of
19 the monthly transfer from the General Revenue Fund in
20 accordance with Section 8a of the State Finance Act.
21     The Department may, upon separate written notice to a
22 taxpayer, require the taxpayer to prepare and file with the
23 Department on a form prescribed by the Department within not
24 less than 60 days after receipt of the notice an annual
25 information return for the tax year specified in the notice.
26 Such annual return to the Department shall include a statement

 

 

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1 of gross receipts as shown by the retailer's last Federal
2 income tax return. If the total receipts of the business as
3 reported in the Federal income tax return do not agree with the
4 gross receipts reported to the Department of Revenue for the
5 same period, the retailer shall attach to his annual return a
6 schedule showing a reconciliation of the 2 amounts and the
7 reasons for the difference. The retailer's annual return to the
8 Department shall also disclose the cost of goods sold by the
9 retailer during the year covered by such return, opening and
10 closing inventories of such goods for such year, costs of goods
11 used from stock or taken from stock and given away by the
12 retailer during such year, payroll information of the
13 retailer's business during such year and any additional
14 reasonable information which the Department deems would be
15 helpful in determining the accuracy of the monthly, quarterly
16 or annual returns filed by such retailer as provided for in
17 this Section.
18     If the annual information return required by this Section
19 is not filed when and as required, the taxpayer shall be liable
20 as follows:
21         (i) Until January 1, 1994, the taxpayer shall be liable
22     for a penalty equal to 1/6 of 1% of the tax due from such
23     taxpayer under this Act during the period to be covered by
24     the annual return for each month or fraction of a month
25     until such return is filed as required, the penalty to be
26     assessed and collected in the same manner as any other

 

 

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1     penalty provided for in this Act.
2         (ii) On and after January 1, 1994, the taxpayer shall
3     be liable for a penalty as described in Section 3-4 of the
4     Uniform Penalty and Interest Act.
5     The chief executive officer, proprietor, owner or highest
6 ranking manager shall sign the annual return to certify the
7 accuracy of the information contained therein. Any person who
8 willfully signs the annual return containing false or
9 inaccurate information shall be guilty of perjury and punished
10 accordingly. The annual return form prescribed by the
11 Department shall include a warning that the person signing the
12 return may be liable for perjury.
13     The provisions of this Section concerning the filing of an
14 annual information return do not apply to a retailer who is not
15 required to file an income tax return with the United States
16 Government.
17     As soon as possible after the first day of each month, upon
18 certification of the Department of Revenue, the Comptroller
19 shall order transferred and the Treasurer shall transfer from
20 the General Revenue Fund to the Motor Fuel Tax Fund an amount
21 equal to 1.7% of 80% of the net revenue realized under this Act
22 for the second preceding month. Beginning April 1, 2000, this
23 transfer is no longer required and shall not be made.
24     Net revenue realized for a month shall be the revenue
25 collected by the State pursuant to this Act, less the amount
26 paid out during that month as refunds to taxpayers for

 

 

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1 overpayment of liability.
2     For greater simplicity of administration, manufacturers,
3 importers and wholesalers whose products are sold at retail in
4 Illinois by numerous retailers, and who wish to do so, may
5 assume the responsibility for accounting and paying to the
6 Department all tax accruing under this Act with respect to such
7 sales, if the retailers who are affected do not make written
8 objection to the Department to this arrangement.
9     Any person who promotes, organizes, provides retail
10 selling space for concessionaires or other types of sellers at
11 the Illinois State Fair, DuQuoin State Fair, county fairs,
12 local fairs, art shows, flea markets and similar exhibitions or
13 events, including any transient merchant as defined by Section
14 2 of the Transient Merchant Act of 1987, is required to file a
15 report with the Department providing the name of the merchant's
16 business, the name of the person or persons engaged in
17 merchant's business, the permanent address and Illinois
18 Retailers Occupation Tax Registration Number of the merchant,
19 the dates and location of the event and other reasonable
20 information that the Department may require. The report must be
21 filed not later than the 20th day of the month next following
22 the month during which the event with retail sales was held.
23 Any person who fails to file a report required by this Section
24 commits a business offense and is subject to a fine not to
25 exceed $250.
26     Any person engaged in the business of selling tangible

 

 

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1 personal property at retail as a concessionaire or other type
2 of seller at the Illinois State Fair, county fairs, art shows,
3 flea markets and similar exhibitions or events, or any
4 transient merchants, as defined by Section 2 of the Transient
5 Merchant Act of 1987, may be required to make a daily report of
6 the amount of such sales to the Department and to make a daily
7 payment of the full amount of tax due. The Department shall
8 impose this requirement when it finds that there is a
9 significant risk of loss of revenue to the State at such an
10 exhibition or event. Such a finding shall be based on evidence
11 that a substantial number of concessionaires or other sellers
12 who are not residents of Illinois will be engaging in the
13 business of selling tangible personal property at retail at the
14 exhibition or event, or other evidence of a significant risk of
15 loss of revenue to the State. The Department shall notify
16 concessionaires and other sellers affected by the imposition of
17 this requirement. In the absence of notification by the
18 Department, the concessionaires and other sellers shall file
19 their returns as otherwise required in this Section.
20 (Source: P.A. 94-1074, eff. 12-26-06; 95-331, eff. 8-21-07.)
 
21     Section 99. Effective date. This Act takes effect upon
22 becoming law.