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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Lottery Law is amended by adding | ||||||||||||||||||||||||
5 | Section 21.9 as follows: | ||||||||||||||||||||||||
6 | (20 ILCS 1605/21.9 new) | ||||||||||||||||||||||||
7 | Sec. 21.9. Special drawings to benefit Illinois Lottery | ||||||||||||||||||||||||
8 | scratch-off game beneficiary funds. | ||||||||||||||||||||||||
9 | (a) The Department may, from time to time, designate | ||||||||||||||||||||||||
10 | specific lottery game drawings to benefit the various | ||||||||||||||||||||||||
11 | scratch-off game funds identified in Sections 21.5 through 21.8 | ||||||||||||||||||||||||
12 | of this Act. Each special drawing designation shall be publicly | ||||||||||||||||||||||||
13 | announced by the Department in advance of the drawing date, | ||||||||||||||||||||||||
14 | along with the name of the fund that will benefit from the | ||||||||||||||||||||||||
15 | drawing and any special criteria for the transfer of moneys to | ||||||||||||||||||||||||
16 | the beneficiary fund, such as minimum sales or a net proceeds | ||||||||||||||||||||||||
17 | threshold. | ||||||||||||||||||||||||
18 | (b) Proceeds from specially designated drawings shall be | ||||||||||||||||||||||||
19 | deposited into the designated beneficiary fund for | ||||||||||||||||||||||||
20 | appropriation by the General Assembly for the same purposes and | ||||||||||||||||||||||||
21 | in accordance with the same requirements as outlined in | ||||||||||||||||||||||||
22 | Sections 21.5 through 21.8 of this Act. |
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1 | Section 10. The Department of Revenue Law of the
Civil | ||||||
2 | Administrative Code of Illinois is amended by changing Section | ||||||
3 | 2505-380 as follows:
| ||||||
4 | (20 ILCS 2505/2505-380) (was 20 ILCS 2505/39b47)
| ||||||
5 | Sec. 2505-380.
Revocation of or refusal to issue a | ||||||
6 | certificate of
registration, permit, or license. The | ||||||
7 | Department has the power to
refuse to issue or, after notice | ||||||
8 | and an opportunity for
a hearing, to revoke a certificate of | ||||||
9 | registration, permit, or license
issued or authorized to be | ||||||
10 | issued by the Department if the applicant for
or holder of the | ||||||
11 | certificate of registration, permit, or
license fails to
file a | ||||||
12 | return, or to pay the tax, fee, penalty, or interest shown in a
| ||||||
13 | filed
return, or to pay any final assessment of tax, fee,
| ||||||
14 | penalty, or interest, as required by the tax or fee Act under | ||||||
15 | which the
certificate
of registration, permit, or license is | ||||||
16 | required or any other tax or fee Act
administered
by the | ||||||
17 | Department. The Department may refuse to issue, or after notice | ||||||
18 | and an opportunity for a hearing, may revoke a certificate of | ||||||
19 | registration, permit, or license issued or authorized to be | ||||||
20 | issued by the Department if the owner, any partner, or a | ||||||
21 | corporate officer, and in the case of a limited liability | ||||||
22 | company, any manager or member, of the applicant for or holder | ||||||
23 | of the certificate of registration, permit or license, is or | ||||||
24 | has been the owner, a partner, a corporate officer, and in the | ||||||
25 | case of a limited liability company, a manager or member, of a |
| |||||||
| |||||||
1 | person that is in default for moneys due to the Department | ||||||
2 | under the tax or fee Act upon which the certificate of | ||||||
3 | registration, permit, or license is required or any other tax | ||||||
4 | or fee Act administered by the Department. For purposes of this | ||||||
5 | Section, "person" means any natural individual, firm, | ||||||
6 | partnership, association, joint stock company, joint | ||||||
7 | adventure, public or private corporation, limited liability | ||||||
8 | company, or a receiver, executor, trustee, guardian or other | ||||||
9 | representative appointed by order of any court.
| ||||||
10 | The procedure for notice and hearing prior to revocation | ||||||
11 | shall be as
provided under the Act pursuant to which the | ||||||
12 | certificate of registration,
permit, or license was issued.
| ||||||
13 | (Source: P.A. 91-239, eff. 1-1-00.)
| ||||||
14 | Section 15. The State Finance Act is amended by changing | ||||||
15 | Section 13.3 as follows:
| ||||||
16 | (30 ILCS 105/13.3) (from Ch. 127, par. 149.3)
| ||||||
17 | Sec. 13.3. Petty cash funds; purchasing cards.
| ||||||
18 | (a) Any State agency may establish and maintain petty cash
| ||||||
19 | funds for the purpose of making change, purchasing items of | ||||||
20 | small cost,
payment of postage due, and for other nominal | ||||||
21 | expenditures which cannot
be administered economically and | ||||||
22 | efficiently through customary procurement
practices.
| ||||||
23 | Petty cash funds may be established and maintained from | ||||||
24 | moneys which
are appropriated to the agency for Contractual |
| |||||||
| |||||||
1 | Services. In the case of
an agency which receives a single | ||||||
2 | appropriation for its ordinary and
contingent expenses, the | ||||||
3 | agency may establish a petty cash fund from the
appropriated | ||||||
4 | funds.
| ||||||
5 | Before the establishment of any petty cash fund, the agency | ||||||
6 | shall
submit to the State Comptroller a survey of the need for | ||||||
7 | the fund. The
survey shall also establish that sufficient | ||||||
8 | internal accounting controls
exist. The Comptroller shall | ||||||
9 | investigate such need and if he determines
that it exists and | ||||||
10 | that adequate accounting controls exist, shall
approve the | ||||||
11 | establishment of the fund. The Comptroller shall have the
power | ||||||
12 | to revoke any approval previously made under this Section.
| ||||||
13 | Petty cash funds established under this Section shall be | ||||||
14 | operated and
maintained on the imprest system and no fund shall | ||||||
15 | exceed $1,000, except that
the Department of Revenue may | ||||||
16 | maintain a fund not exceeding $2,000 for each Department of | ||||||
17 | Revenue facility and the Secretary of State may maintain a fund | ||||||
18 | of not exceeding $2,000 for each
Chicago Motor Vehicle | ||||||
19 | Facility, each Springfield Public Service Facility, and
the | ||||||
20 | Motor Vehicle Facilities in Champaign, Decatur, Marion, | ||||||
21 | Naperville, Peoria,
Rockford, Granite City, Quincy, and | ||||||
22 | Carbondale, to be used solely for the
purpose of making change. | ||||||
23 | Except for purchases made by procurement card as
provided in | ||||||
24 | subsection (b) of this Section, single transactions shall be
| ||||||
25 | limited to amounts less
than $50, and all transactions | ||||||
26 | occurring in the fund shall be reported and
accounted for as |
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| |||||||
1 | may be provided in the uniform accounting system developed by
| ||||||
2 | the State Comptroller and the rules and regulations | ||||||
3 | implementing that
accounting system. All amounts in any such | ||||||
4 | fund of less than $1,000 but over
$100 shall be kept in a | ||||||
5 | checking account in a bank, or savings and loan
association or | ||||||
6 | trust company which is insured by the United States government
| ||||||
7 | or any agency of the United States government, except that in | ||||||
8 | funds maintained
in each Department of Revenue Facility, | ||||||
9 | Chicago Motor Vehicle Facilities, each Springfield Public | ||||||
10 | Service Facility,
and the Motor Vehicle Facilities in | ||||||
11 | Champaign, Decatur, Marion, Naperville,
Peoria, Rockford, | ||||||
12 | Granite City, Quincy, and Carbondale, all amounts in the fund
| ||||||
13 | may be retained on the premises of such facilities.
| ||||||
14 | No bank or savings and loan association shall receive | ||||||
15 | public funds as
permitted by this Section, unless it has | ||||||
16 | complied with the requirements
established pursuant to Section | ||||||
17 | 6 of "An Act relating to certain
investments of public funds by | ||||||
18 | public agencies", approved July 23, 1943, as
now or hereafter | ||||||
19 | amended.
| ||||||
20 | An internal audit shall be performed of any petty cash fund | ||||||
21 | which
receives reimbursements of more than $5,000 in a fiscal | ||||||
22 | year.
| ||||||
23 | Upon succession in the custodianship of any petty cash | ||||||
24 | fund, both the
former and successor custodians shall sign a | ||||||
25 | statement, in triplicate,
showing the exact status of the fund | ||||||
26 | at the time of the transfer. The
original copy shall be kept on |
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| |||||||
1 | file in the office wherein the fund
exists, and each signer | ||||||
2 | shall be entitled to retain one copy.
| ||||||
3 | (b) The Comptroller may provide by rule for the use of | ||||||
4 | purchasing cards by
State agencies to pay for purchases that | ||||||
5 | otherwise may be paid out of the
agency's petty cash fund. Any | ||||||
6 | rule adopted hereunder shall impose a single
transaction limit, | ||||||
7 | which shall not be greater than $500.
| ||||||
8 | The rules of the Comptroller may include but shall not be | ||||||
9 | limited to:
| ||||||
10 | (1) standards for the issuance of purchasing cards to | ||||||
11 | State agencies
based upon the best interests of the State;
| ||||||
12 | (2) procedures for recording purchasing card | ||||||
13 | transactions
within the State accounting system, which may | ||||||
14 | provide for summary reporting;
| ||||||
15 | (3) procedures for auditing purchasing card | ||||||
16 | transactions on a
post-payment basis;
| ||||||
17 | (4) standards for awarding contracts with a purchasing | ||||||
18 | card vendor to
acquire purchasing cards for use by State | ||||||
19 | agencies; and
| ||||||
20 | (5) procedures for the Comptroller to charge against | ||||||
21 | State agency
appropriations for payment of purchasing card | ||||||
22 | expenditures without the
use of the voucher and warrant | ||||||
23 | system.
| ||||||
24 | (c) As used in this Section, "State agency" means any | ||||||
25 | department,
officer, authority, public corporation, | ||||||
26 | quasi-public corporation,
commission, board, institution, |
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| |||||||
1 | State college or university, or other
public agency created by | ||||||
2 | the State, other than units of local government
and school | ||||||
3 | districts.
| ||||||
4 | (Source: P.A. 90-33, eff. 6-27-97; 91-704, eff. 7-1-00.)
| ||||||
5 | Section 20. The Illinois Income Tax Act is amended by | ||||||
6 | changing Sections 303, 304, 701, 710, and 905 as follows:
| ||||||
7 | (35 ILCS 5/303) (from Ch. 120, par. 3-303)
| ||||||
8 | Sec. 303. (a) In general. Any item of capital gain or loss, | ||||||
9 | and any
item of income from rents or royalties from real or | ||||||
10 | tangible personal
property, interest, dividends, and patent or | ||||||
11 | copyright royalties, and prizes
awarded under the Illinois | ||||||
12 | Lottery Law, to the extent such item constitutes
nonbusiness | ||||||
13 | income, together with any item of deduction directly allocable
| ||||||
14 | thereto, shall be allocated by any person other than a resident | ||||||
15 | as provided
in this Section.
| ||||||
16 | (b) Capital gains and losses. | ||||||
17 | (1) Real property. Capital gains and
losses from sales | ||||||
18 | or exchanges of real property are allocable to this State
| ||||||
19 | if the property is located in this State.
| ||||||
20 | (2) Tangible personal property. Capital gains and | ||||||
21 | losses from sales
or exchanges of tangible personal | ||||||
22 | property are allocable to this State if,
at the time of | ||||||
23 | such sale or exchange:
| ||||||
24 | (A) The property had its situs in this State; or
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| |||||||
1 | (B) The taxpayer had its commercial domicile in | ||||||
2 | this State and was not
taxable in the state in which | ||||||
3 | the property had its situs.
| ||||||
4 | (3) Intangibles. Capital gains and losses from sales or | ||||||
5 | exchanges of
intangible personal property are allocable to | ||||||
6 | this State if the taxpayer
had its commercial domicile in | ||||||
7 | this State at the time of such sale or
exchange.
| ||||||
8 | (c) Rents and royalties. | ||||||
9 | (1) Real property. Rents and royalties
from real | ||||||
10 | property are allocable to this State if the property is | ||||||
11 | located
in this State.
| ||||||
12 | (2) Tangible personal property. Rents and royalties | ||||||
13 | from tangible
personal property are allocable to this | ||||||
14 | State:
| ||||||
15 | (A) If and to the extent that the property is | ||||||
16 | utilized in this State; or
| ||||||
17 | (B) In their entirety if, at the time such rents or | ||||||
18 | royalties were paid
or accrued, the taxpayer had its | ||||||
19 | commercial domicile in this State and was
not organized | ||||||
20 | under the laws of or taxable with respect to such rents | ||||||
21 | or
royalties in the state in which the property was | ||||||
22 | utilized.
The extent of utilization of tangible | ||||||
23 | personal property in a state is
determined by | ||||||
24 | multiplying the rents or royalties derived from such | ||||||
25 | property
by a fraction, the numerator of which is the | ||||||
26 | number of days of physical
location of the property in |
| |||||||
| |||||||
1 | the state during the rental or royalty period
in the | ||||||
2 | taxable year and the denominator of which is the number | ||||||
3 | of days of
physical location of the property everywhere | ||||||
4 | during all rental or royalty
periods in the taxable | ||||||
5 | year. If the physical location of the property
during | ||||||
6 | the rental or royalty period is unknown or | ||||||
7 | unascertainable by the
taxpayer, tangible personal | ||||||
8 | property is utilized in the state in which the
property | ||||||
9 | was located at the time the rental or royalty payer | ||||||
10 | obtained
possession.
| ||||||
11 | (d) Patent and copyright royalties.
| ||||||
12 | (1) Allocation. Patent and copyright royalties are | ||||||
13 | allocable to this
State:
| ||||||
14 | (A) If and to the extent that the patent or | ||||||
15 | copyright is utilized by the
payer in this State; or
| ||||||
16 | (B) If and to the extent that the patent or | ||||||
17 | copyright is utilized by the
payer in a state in which | ||||||
18 | the taxpayer is not taxable with respect to such
| ||||||
19 | royalties and, at the time such royalties were paid or | ||||||
20 | accrued, the
taxpayer had its commercial domicile in | ||||||
21 | this State.
| ||||||
22 | (2) Utilization.
| ||||||
23 | (A) A patent is utilized in a state to the extent | ||||||
24 | that it is employed in
production, fabrication, | ||||||
25 | manufacturing or other processing in the state or
to | ||||||
26 | the extent that a patented product is produced in the |
| |||||||
| |||||||
1 | state. If the
basis of receipts from patent royalties | ||||||
2 | does not permit allocation to
states or if the | ||||||
3 | accounting procedures do not reflect states of
| ||||||
4 | utilization, the patent is utilized in this State if | ||||||
5 | the taxpayer has its
commercial domicile in this State.
| ||||||
6 | (B) A copyright is utilized in a state to the | ||||||
7 | extent that printing or
other publication originates | ||||||
8 | in the state. If the basis of receipts from
copyright | ||||||
9 | royalties does not permit allocation to states or if | ||||||
10 | the
accounting procedures do not reflect states of | ||||||
11 | utilization, the copyright
is utilized in this State if | ||||||
12 | the taxpayer has its commercial domicile in
this State.
| ||||||
13 | (e) Illinois lottery prizes. Prizes awarded under the | ||||||
14 | Illinois Lottery Law "Illinois Lottery
Law", approved December | ||||||
15 | 14, 1973, are allocable to this State. Payments received in | ||||||
16 | taxable years ending on or after December 31, 2013, from the | ||||||
17 | assignment of a prize under Section 13.1 of the Illinois | ||||||
18 | Lottery Law are allocable to this State.
| ||||||
19 | (e-5) Unemployment benefits. Unemployment benefits paid by | ||||||
20 | the Illinois Department of Employment Security are allocable to | ||||||
21 | this State. | ||||||
22 | (f) Taxability in other state. For purposes of allocation | ||||||
23 | of income
pursuant to this Section, a taxpayer is taxable in | ||||||
24 | another state if:
| ||||||
25 | (1) In that state he is subject to a net income tax, a | ||||||
26 | franchise tax
measured by net income, a franchise tax for |
| |||||||
| |||||||
1 | the privilege of doing
business, or a corporate stock tax; | ||||||
2 | or
| ||||||
3 | (2) That state has jurisdiction to subject the taxpayer | ||||||
4 | to a net income
tax regardless of whether, in fact, the | ||||||
5 | state does or does not.
| ||||||
6 | (g) Cross references. | ||||||
7 | (1) For allocation of interest and dividends by
persons | ||||||
8 | other than residents, see Section 301(c)(2).
| ||||||
9 | (2) For allocation of nonbusiness income by residents, | ||||||
10 | see Section
301(a).
| ||||||
11 | (Source: P.A. 97-709, eff. 7-1-12.)
| ||||||
12 | (35 ILCS 5/304) (from Ch. 120, par. 3-304)
| ||||||
13 | Sec. 304. Business income of persons other than residents.
| ||||||
14 | (a) In general. The business income of a person other than | ||||||
15 | a
resident shall be allocated to this State if such person's | ||||||
16 | business
income is derived solely from this State. If a person | ||||||
17 | other than a
resident derives business income from this State | ||||||
18 | and one or more other
states, then, for tax years ending on or | ||||||
19 | before December 30, 1998, and
except as otherwise provided by | ||||||
20 | this Section, such
person's business income shall be | ||||||
21 | apportioned to this State by
multiplying the income by a | ||||||
22 | fraction, the numerator of which is the sum
of the property | ||||||
23 | factor (if any), the payroll factor (if any) and 200% of the
| ||||||
24 | sales factor (if any), and the denominator of which is 4 | ||||||
25 | reduced by the
number of factors other than the sales factor |
| |||||||
| |||||||
1 | which have a denominator
of zero and by an additional 2 if the | ||||||
2 | sales factor has a denominator of zero.
For tax years ending on | ||||||
3 | or after December 31, 1998, and except as otherwise
provided by | ||||||
4 | this Section, persons other than
residents who derive business | ||||||
5 | income from this State and one or more other
states shall | ||||||
6 | compute their apportionment factor by weighting their | ||||||
7 | property,
payroll, and sales factors as provided in
subsection | ||||||
8 | (h) of this Section.
| ||||||
9 | (1) Property factor.
| ||||||
10 | (A) The property factor is a fraction, the numerator of | ||||||
11 | which is the
average value of the person's real and | ||||||
12 | tangible personal property owned
or rented and used in the | ||||||
13 | trade or business in this State during the
taxable year and | ||||||
14 | the denominator of which is the average value of all
the | ||||||
15 | person's real and tangible personal property owned or | ||||||
16 | rented and
used in the trade or business during the taxable | ||||||
17 | year.
| ||||||
18 | (B) Property owned by the person is valued at its | ||||||
19 | original cost.
Property rented by the person is valued at 8 | ||||||
20 | times the net annual rental
rate. Net annual rental rate is | ||||||
21 | the annual rental rate paid by the
person less any annual | ||||||
22 | rental rate received by the person from
sub-rentals.
| ||||||
23 | (C) The average value of property shall be determined | ||||||
24 | by averaging
the values at the beginning and ending of the | ||||||
25 | taxable year but the
Director may require the averaging of | ||||||
26 | monthly values during the taxable
year if reasonably |
| |||||||
| |||||||
1 | required to reflect properly the average value of the
| ||||||
2 | person's property.
| ||||||
3 | (2) Payroll factor.
| ||||||
4 | (A) The payroll factor is a fraction, the numerator of | ||||||
5 | which is the
total amount paid in this State during the | ||||||
6 | taxable year by the person
for compensation, and the | ||||||
7 | denominator of which is the total compensation
paid | ||||||
8 | everywhere during the taxable year.
| ||||||
9 | (B) Compensation is paid in this State if:
| ||||||
10 | (i) The individual's service is performed entirely | ||||||
11 | within this
State;
| ||||||
12 | (ii) The individual's service is performed both | ||||||
13 | within and without
this State, but the service | ||||||
14 | performed without this State is incidental
to the | ||||||
15 | individual's service performed within this State; or
| ||||||
16 | (iii) Some of the service is performed within this | ||||||
17 | State and either
the base of operations, or if there is | ||||||
18 | no base of operations, the place
from which the service | ||||||
19 | is directed or controlled is within this State,
or the | ||||||
20 | base of operations or the place from which the service | ||||||
21 | is
directed or controlled is not in any state in which | ||||||
22 | some part of the
service is performed, but the | ||||||
23 | individual's residence is in this State.
| ||||||
24 | (iv) Compensation paid to nonresident professional | ||||||
25 | athletes. | ||||||
26 | (a) General. The Illinois source income of a |
| |||||||
| |||||||
1 | nonresident individual who is a member of a | ||||||
2 | professional athletic team includes the portion of the | ||||||
3 | individual's total compensation for services performed | ||||||
4 | as a member of a professional athletic team during the | ||||||
5 | taxable year which the number of duty days spent within | ||||||
6 | this State performing services for the team in any | ||||||
7 | manner during the taxable year bears to the total | ||||||
8 | number of duty days spent both within and without this | ||||||
9 | State during the taxable year. | ||||||
10 | (b) Travel days. Travel days that do not involve | ||||||
11 | either a game, practice, team meeting, or other similar | ||||||
12 | team event are not considered duty days spent in this | ||||||
13 | State. However, such travel days are considered in the | ||||||
14 | total duty days spent both within and without this | ||||||
15 | State. | ||||||
16 | (c) Definitions. For purposes of this subpart | ||||||
17 | (iv): | ||||||
18 | (1) The term "professional athletic team" | ||||||
19 | includes, but is not limited to, any professional | ||||||
20 | baseball, basketball, football, soccer, or hockey | ||||||
21 | team. | ||||||
22 | (2) The term "member of a professional | ||||||
23 | athletic team" includes those employees who are | ||||||
24 | active players, players on the disabled list, and | ||||||
25 | any other persons required to travel and who travel | ||||||
26 | with and perform services on behalf of a |
| |||||||
| |||||||
1 | professional athletic team on a regular basis. | ||||||
2 | This includes, but is not limited to, coaches, | ||||||
3 | managers, and trainers. | ||||||
4 | (3) Except as provided in items (C) and (D) of | ||||||
5 | this subpart (3), the term "duty days" means all | ||||||
6 | days during the taxable year from the beginning of | ||||||
7 | the professional athletic team's official | ||||||
8 | pre-season training period through the last game | ||||||
9 | in which the team competes or is scheduled to | ||||||
10 | compete. Duty days shall be counted for the year in | ||||||
11 | which they occur, including where a team's | ||||||
12 | official pre-season training period through the | ||||||
13 | last game in which the team competes or is | ||||||
14 | scheduled to compete, occurs during more than one | ||||||
15 | tax year. | ||||||
16 | (A) Duty days shall also include days on | ||||||
17 | which a member of a professional athletic team | ||||||
18 | performs service for a team on a date that does | ||||||
19 | not fall within the foregoing period (e.g., | ||||||
20 | participation in instructional leagues, the | ||||||
21 | "All Star Game", or promotional "caravans"). | ||||||
22 | Performing a service for a professional | ||||||
23 | athletic team includes conducting training and | ||||||
24 | rehabilitation activities, when such | ||||||
25 | activities are conducted at team facilities. | ||||||
26 | (B) Also included in duty days are game |
| |||||||
| |||||||
1 | days, practice days, days spent at team | ||||||
2 | meetings, promotional caravans, preseason | ||||||
3 | training camps, and days served with the team | ||||||
4 | through all post-season games in which the team | ||||||
5 | competes or is scheduled to compete. | ||||||
6 | (C) Duty days for any person who joins a | ||||||
7 | team during the period from the beginning of | ||||||
8 | the professional athletic team's official | ||||||
9 | pre-season training period through the last | ||||||
10 | game in which the team competes, or is | ||||||
11 | scheduled to compete, shall begin on the day | ||||||
12 | that person joins the team. Conversely, duty | ||||||
13 | days for any person who leaves a team during | ||||||
14 | this period shall end on the day that person | ||||||
15 | leaves the team. Where a person switches teams | ||||||
16 | during a taxable year, a separate duty-day | ||||||
17 | calculation shall be made for the period the | ||||||
18 | person was with each team. | ||||||
19 | (D) Days for which a member of a | ||||||
20 | professional athletic team is not compensated | ||||||
21 | and is not performing services for the team in | ||||||
22 | any manner, including days when such member of | ||||||
23 | a professional athletic team has been | ||||||
24 | suspended without pay and prohibited from | ||||||
25 | performing any services for the team, shall not | ||||||
26 | be treated as duty days. |
| |||||||
| |||||||
1 | (E) Days for which a member of a | ||||||
2 | professional athletic team is on the disabled | ||||||
3 | list and does not conduct rehabilitation | ||||||
4 | activities at facilities of the team, and is | ||||||
5 | not otherwise performing services for the team | ||||||
6 | in Illinois, shall not be considered duty days | ||||||
7 | spent in this State. All days on the disabled | ||||||
8 | list, however, are considered to be included in | ||||||
9 | total duty days spent both within and without | ||||||
10 | this State. | ||||||
11 | (4) The term "total compensation for services | ||||||
12 | performed as a member of a professional athletic | ||||||
13 | team" means the total compensation received during | ||||||
14 | the taxable year for services performed: | ||||||
15 | (A) from the beginning of the official | ||||||
16 | pre-season training period through the last | ||||||
17 | game in which the team competes or is scheduled | ||||||
18 | to compete during that taxable year; and | ||||||
19 | (B) during the taxable year on a date which | ||||||
20 | does not fall within the foregoing period | ||||||
21 | (e.g., participation in instructional leagues, | ||||||
22 | the "All Star Game", or promotional caravans). | ||||||
23 | This compensation shall include, but is not | ||||||
24 | limited to, salaries, wages, bonuses as described | ||||||
25 | in this subpart, and any other type of compensation | ||||||
26 | paid during the taxable year to a member of a |
| |||||||
| |||||||
1 | professional athletic team for services performed | ||||||
2 | in that year. This compensation does not include | ||||||
3 | strike benefits, severance pay, termination pay, | ||||||
4 | contract or option year buy-out payments, | ||||||
5 | expansion or relocation payments, or any other | ||||||
6 | payments not related to services performed for the | ||||||
7 | team. | ||||||
8 | For purposes of this subparagraph, "bonuses" | ||||||
9 | included in "total compensation for services | ||||||
10 | performed as a member of a professional athletic | ||||||
11 | team" subject to the allocation described in | ||||||
12 | Section 302(c)(1) are: bonuses earned as a result | ||||||
13 | of play (i.e., performance bonuses) during the | ||||||
14 | season, including bonuses paid for championship, | ||||||
15 | playoff or "bowl" games played by a team, or for | ||||||
16 | selection to all-star league or other honorary | ||||||
17 | positions; and bonuses paid for signing a | ||||||
18 | contract, unless the payment of the signing bonus | ||||||
19 | is not conditional upon the signee playing any | ||||||
20 | games for the team or performing any subsequent | ||||||
21 | services for the team or even making the team, the | ||||||
22 | signing bonus is payable separately from the | ||||||
23 | salary and any other compensation, and the signing | ||||||
24 | bonus is nonrefundable.
| ||||||
25 | (3) Sales factor.
| ||||||
26 | (A) The sales factor is a fraction, the numerator of |
| |||||||
| |||||||
1 | which is the
total sales of the person in this State during | ||||||
2 | the taxable year, and the
denominator of which is the total | ||||||
3 | sales of the person everywhere during
the taxable year.
| ||||||
4 | (B) Sales of tangible personal property are in this | ||||||
5 | State if:
| ||||||
6 | (i) The property is delivered or shipped to a | ||||||
7 | purchaser, other than
the United States government, | ||||||
8 | within this State regardless of the f. o.
b. point or | ||||||
9 | other conditions of the sale; or
| ||||||
10 | (ii) The property is shipped from an office, store, | ||||||
11 | warehouse,
factory or other place of storage in this | ||||||
12 | State and either the purchaser
is the United States | ||||||
13 | government or the person is not taxable in the
state of | ||||||
14 | the purchaser; provided, however, that premises owned | ||||||
15 | or leased
by a person who has independently contracted | ||||||
16 | with the seller for the printing
of newspapers, | ||||||
17 | periodicals or books shall not be deemed to be an | ||||||
18 | office,
store, warehouse, factory or other place of | ||||||
19 | storage for purposes of this
Section.
Sales of tangible | ||||||
20 | personal property are not in this State if the
seller | ||||||
21 | and purchaser would be members of the same unitary | ||||||
22 | business group
but for the fact that either the seller | ||||||
23 | or purchaser is a person with 80%
or more of total | ||||||
24 | business activity outside of the United States and the
| ||||||
25 | property is purchased for resale.
| ||||||
26 | (B-1) Patents, copyrights, trademarks, and similar |
| |||||||
| |||||||
1 | items of intangible
personal property.
| ||||||
2 | (i) Gross receipts from the licensing, sale, or | ||||||
3 | other disposition of a
patent, copyright, trademark, | ||||||
4 | or similar item of intangible personal property, other | ||||||
5 | than gross receipts governed by paragraph (B-7) of this | ||||||
6 | item (3),
are in this State to the extent the item is | ||||||
7 | utilized in this State during the
year the gross | ||||||
8 | receipts are included in gross income.
| ||||||
9 | (ii) Place of utilization.
| ||||||
10 | (I) A patent is utilized in a state to the | ||||||
11 | extent that it is employed
in production, | ||||||
12 | fabrication, manufacturing, or other processing in | ||||||
13 | the state or
to the extent that a patented product | ||||||
14 | is produced in the state. If a patent is
utilized | ||||||
15 | in
more than one state, the extent to which it is | ||||||
16 | utilized in any one state shall
be a fraction equal | ||||||
17 | to the gross receipts of the licensee or purchaser | ||||||
18 | from
sales or leases of items produced, | ||||||
19 | fabricated, manufactured, or processed
within that | ||||||
20 | state using the patent and of patented items | ||||||
21 | produced within that
state, divided by the total of | ||||||
22 | such gross receipts for all states in which the
| ||||||
23 | patent is utilized.
| ||||||
24 | (II) A copyright is utilized in a state to the | ||||||
25 | extent that printing or
other publication | ||||||
26 | originates in the state. If a copyright is utilized |
| |||||||
| |||||||
1 | in more
than one state, the extent to which it is | ||||||
2 | utilized in any one state shall be a
fraction equal | ||||||
3 | to the gross receipts from sales or licenses of | ||||||
4 | materials
printed or published in that state | ||||||
5 | divided by the total of such gross receipts
for all | ||||||
6 | states in which the copyright is utilized.
| ||||||
7 | (III) Trademarks and other items of intangible | ||||||
8 | personal property
governed by this paragraph (B-1) | ||||||
9 | are utilized in the state in which the
commercial | ||||||
10 | domicile of the licensee or purchaser is located.
| ||||||
11 | (iii) If the state of utilization of an item of | ||||||
12 | property governed by
this paragraph (B-1) cannot be | ||||||
13 | determined from the taxpayer's books and
records or | ||||||
14 | from the books and records of any person related to the | ||||||
15 | taxpayer
within the meaning of Section 267(b) of the | ||||||
16 | Internal Revenue Code, 26 U.S.C.
267, the gross
| ||||||
17 | receipts attributable to that item shall be excluded | ||||||
18 | from both the numerator
and the denominator of the | ||||||
19 | sales factor.
| ||||||
20 | (B-2) Gross receipts from the license, sale, or other | ||||||
21 | disposition of
patents, copyrights, trademarks, and | ||||||
22 | similar items of intangible personal
property, other than | ||||||
23 | gross receipts governed by paragraph (B-7) of this item | ||||||
24 | (3), may be included in the numerator or denominator of the | ||||||
25 | sales factor
only if gross receipts from licenses, sales, | ||||||
26 | or other disposition of such items
comprise more than 50% |
| |||||||
| |||||||
1 | of the taxpayer's total gross receipts included in gross
| ||||||
2 | income during the tax year and during each of the 2 | ||||||
3 | immediately preceding tax
years; provided that, when a | ||||||
4 | taxpayer is a member of a unitary business group,
such | ||||||
5 | determination shall be made on the basis of the gross | ||||||
6 | receipts of the
entire unitary business group.
| ||||||
7 | (B-5) For taxable years ending on or after December 31, | ||||||
8 | 2008, except as provided in subsections (ii) through (vii), | ||||||
9 | receipts from the sale of telecommunications service or | ||||||
10 | mobile telecommunications service are in this State if the | ||||||
11 | customer's service address is in this State. | ||||||
12 | (i) For purposes of this subparagraph (B-5), the | ||||||
13 | following terms have the following meanings: | ||||||
14 | "Ancillary services" means services that are | ||||||
15 | associated with or incidental to the provision of | ||||||
16 | "telecommunications services", including but not | ||||||
17 | limited to "detailed telecommunications billing", | ||||||
18 | "directory assistance", "vertical service", and "voice | ||||||
19 | mail services". | ||||||
20 | "Air-to-Ground Radiotelephone service" means a | ||||||
21 | radio service, as that term is defined in 47 CFR 22.99, | ||||||
22 | in which common carriers are authorized to offer and | ||||||
23 | provide radio telecommunications service for hire to | ||||||
24 | subscribers in aircraft. | ||||||
25 | "Call-by-call Basis" means any method of charging | ||||||
26 | for telecommunications services where the price is |
| |||||||
| |||||||
1 | measured by individual calls. | ||||||
2 | "Communications Channel" means a physical or | ||||||
3 | virtual path of communications over which signals are | ||||||
4 | transmitted between or among customer channel | ||||||
5 | termination points. | ||||||
6 | "Conference bridging service" means an "ancillary | ||||||
7 | service" that links two or more participants of an | ||||||
8 | audio or video conference call and may include the | ||||||
9 | provision of a telephone number. "Conference bridging | ||||||
10 | service" does not include the "telecommunications | ||||||
11 | services" used to reach the conference bridge. | ||||||
12 | "Customer Channel Termination Point" means the | ||||||
13 | location where the customer either inputs or receives | ||||||
14 | the communications. | ||||||
15 | "Detailed telecommunications billing service" | ||||||
16 | means an "ancillary service" of separately stating | ||||||
17 | information pertaining to individual calls on a | ||||||
18 | customer's billing statement. | ||||||
19 | "Directory assistance" means an "ancillary | ||||||
20 | service" of providing telephone number information, | ||||||
21 | and/or address information. | ||||||
22 | "Home service provider" means the facilities based | ||||||
23 | carrier or reseller with which the customer contracts | ||||||
24 | for the provision of mobile telecommunications | ||||||
25 | services. | ||||||
26 | "Mobile telecommunications service" means |
| |||||||
| |||||||
1 | commercial mobile radio service, as defined in Section | ||||||
2 | 20.3 of Title 47 of the Code of Federal Regulations as | ||||||
3 | in effect on June 1, 1999. | ||||||
4 | "Place of primary use" means the street address | ||||||
5 | representative of where the customer's use of the | ||||||
6 | telecommunications service primarily occurs, which | ||||||
7 | must be the residential street address or the primary | ||||||
8 | business street address of the customer. In the case of | ||||||
9 | mobile telecommunications services, "place of primary | ||||||
10 | use" must be within the licensed service area of the | ||||||
11 | home service provider. | ||||||
12 | "Post-paid telecommunication service" means the | ||||||
13 | telecommunications service obtained by making a | ||||||
14 | payment on a call-by-call basis either through the use | ||||||
15 | of a credit card or payment mechanism such as a bank | ||||||
16 | card, travel card, credit card, or debit card, or by | ||||||
17 | charge made to a telephone number which is not | ||||||
18 | associated with the origination or termination of the | ||||||
19 | telecommunications service. A post-paid calling | ||||||
20 | service includes telecommunications service, except a | ||||||
21 | prepaid wireless calling service, that would be a | ||||||
22 | prepaid calling service except it is not exclusively a | ||||||
23 | telecommunication service. | ||||||
24 | "Prepaid telecommunication service" means the | ||||||
25 | right to access exclusively telecommunications | ||||||
26 | services, which must be paid for in advance and which |
| |||||||
| |||||||
1 | enables the origination of calls using an access number | ||||||
2 | or authorization code, whether manually or | ||||||
3 | electronically dialed, and that is sold in | ||||||
4 | predetermined units or dollars of which the number | ||||||
5 | declines with use in a known amount. | ||||||
6 | "Prepaid Mobile telecommunication service" means a | ||||||
7 | telecommunications service that provides the right to | ||||||
8 | utilize mobile wireless service as well as other | ||||||
9 | non-telecommunication services, including but not | ||||||
10 | limited to ancillary services, which must be paid for | ||||||
11 | in advance that is sold in predetermined units or | ||||||
12 | dollars of which the number declines with use in a | ||||||
13 | known amount. | ||||||
14 | "Private communication service" means a | ||||||
15 | telecommunication service that entitles the customer | ||||||
16 | to exclusive or priority use of a communications | ||||||
17 | channel or group of channels between or among | ||||||
18 | termination points, regardless of the manner in which | ||||||
19 | such channel or channels are connected, and includes | ||||||
20 | switching capacity, extension lines, stations, and any | ||||||
21 | other associated services that are provided in | ||||||
22 | connection with the use of such channel or channels. | ||||||
23 | "Service address" means: | ||||||
24 | (a) The location of the telecommunications | ||||||
25 | equipment to which a customer's call is charged and | ||||||
26 | from which the call originates or terminates, |
| |||||||
| |||||||
1 | regardless of where the call is billed or paid; | ||||||
2 | (b) If the location in line (a) is not known, | ||||||
3 | service address means the origination point of the | ||||||
4 | signal of the telecommunications services first | ||||||
5 | identified by either the seller's | ||||||
6 | telecommunications system or in information | ||||||
7 | received by the seller from its service provider | ||||||
8 | where the system used to transport such signals is | ||||||
9 | not that of the seller; and | ||||||
10 | (c) If the locations in line (a) and line (b) | ||||||
11 | are not known, the service address means the | ||||||
12 | location of the customer's place of primary use. | ||||||
13 | "Telecommunications service" means the electronic | ||||||
14 | transmission, conveyance, or routing of voice, data, | ||||||
15 | audio, video, or any other information or signals to a | ||||||
16 | point, or between or among points. The term | ||||||
17 | "telecommunications service" includes such | ||||||
18 | transmission, conveyance, or routing in which computer | ||||||
19 | processing applications are used to act on the form, | ||||||
20 | code or protocol of the content for purposes of | ||||||
21 | transmission, conveyance or routing without regard to | ||||||
22 | whether such service is referred to as voice over | ||||||
23 | Internet protocol services or is classified by the | ||||||
24 | Federal Communications Commission as enhanced or value | ||||||
25 | added. "Telecommunications service" does not include: | ||||||
26 | (a) Data processing and information services |
| |||||||
| |||||||
1 | that allow data to be generated, acquired, stored, | ||||||
2 | processed, or retrieved and delivered by an | ||||||
3 | electronic transmission to a purchaser when such | ||||||
4 | purchaser's primary purpose for the underlying | ||||||
5 | transaction is the processed data or information; | ||||||
6 | (b) Installation or maintenance of wiring or | ||||||
7 | equipment on a customer's premises; | ||||||
8 | (c) Tangible personal property; | ||||||
9 | (d) Advertising, including but not limited to | ||||||
10 | directory advertising. | ||||||
11 | (e) Billing and collection services provided | ||||||
12 | to third parties; | ||||||
13 | (f) Internet access service; | ||||||
14 | (g) Radio and television audio and video | ||||||
15 | programming services, regardless of the medium, | ||||||
16 | including the furnishing of transmission, | ||||||
17 | conveyance and routing of such services by the | ||||||
18 | programming service provider. Radio and television | ||||||
19 | audio and video programming services shall include | ||||||
20 | but not be limited to cable service as defined in | ||||||
21 | 47 USC 522(6) and audio and video programming | ||||||
22 | services delivered by commercial mobile radio | ||||||
23 | service providers, as defined in 47 CFR 20.3; | ||||||
24 | (h) "Ancillary services"; or | ||||||
25 | (i) Digital products "delivered | ||||||
26 | electronically", including but not limited to |
| |||||||
| |||||||
1 | software, music, video, reading materials or ring | ||||||
2 | tones. | ||||||
3 | "Vertical service" means an "ancillary service" | ||||||
4 | that is offered in connection with one or more | ||||||
5 | "telecommunications services", which offers advanced | ||||||
6 | calling features that allow customers to identify | ||||||
7 | callers and to manage multiple calls and call | ||||||
8 | connections, including "conference bridging services". | ||||||
9 | "Voice mail service" means an "ancillary service" | ||||||
10 | that enables the customer to store, send or receive | ||||||
11 | recorded messages. "Voice mail service" does not | ||||||
12 | include any "vertical services" that the customer may | ||||||
13 | be required to have in order to utilize the "voice mail | ||||||
14 | service". | ||||||
15 | (ii) Receipts from the sale of telecommunications | ||||||
16 | service sold on an individual call-by-call basis are in | ||||||
17 | this State if either of the following applies: | ||||||
18 | (a) The call both originates and terminates in | ||||||
19 | this State. | ||||||
20 | (b) The call either originates or terminates | ||||||
21 | in this State and the service address is located in | ||||||
22 | this State. | ||||||
23 | (iii) Receipts from the sale of postpaid | ||||||
24 | telecommunications service at retail are in this State | ||||||
25 | if the origination point of the telecommunication | ||||||
26 | signal, as first identified by the service provider's |
| |||||||
| |||||||
1 | telecommunication system or as identified by | ||||||
2 | information received by the seller from its service | ||||||
3 | provider if the system used to transport | ||||||
4 | telecommunication signals is not the seller's, is | ||||||
5 | located in this State. | ||||||
6 | (iv) Receipts from the sale of prepaid | ||||||
7 | telecommunications service or prepaid mobile | ||||||
8 | telecommunications service at retail are in this State | ||||||
9 | if the purchaser obtains the prepaid card or similar | ||||||
10 | means of conveyance at a location in this State. | ||||||
11 | Receipts from recharging a prepaid telecommunications | ||||||
12 | service or mobile telecommunications service is in | ||||||
13 | this State if the purchaser's billing information | ||||||
14 | indicates a location in this State. | ||||||
15 | (v) Receipts from the sale of private | ||||||
16 | communication services are in this State as follows: | ||||||
17 | (a) 100% of receipts from charges imposed at | ||||||
18 | each channel termination point in this State. | ||||||
19 | (b) 100% of receipts from charges for the total | ||||||
20 | channel mileage between each channel termination | ||||||
21 | point in this State. | ||||||
22 | (c) 50% of the total receipts from charges for | ||||||
23 | service segments when those segments are between 2 | ||||||
24 | customer channel termination points, 1 of which is | ||||||
25 | located in this State and the other is located | ||||||
26 | outside of this State, which segments are |
| |||||||
| |||||||
1 | separately charged. | ||||||
2 | (d) The receipts from charges for service | ||||||
3 | segments with a channel termination point located | ||||||
4 | in this State and in two or more other states, and | ||||||
5 | which segments are not separately billed, are in | ||||||
6 | this State based on a percentage determined by | ||||||
7 | dividing the number of customer channel | ||||||
8 | termination points in this State by the total | ||||||
9 | number of customer channel termination points. | ||||||
10 | (vi) Receipts from charges for ancillary services | ||||||
11 | for telecommunications service sold to customers at | ||||||
12 | retail are in this State if the customer's primary | ||||||
13 | place of use of telecommunications services associated | ||||||
14 | with those ancillary services is in this State. If the | ||||||
15 | seller of those ancillary services cannot determine | ||||||
16 | where the associated telecommunications are located, | ||||||
17 | then the ancillary services shall be based on the | ||||||
18 | location of the purchaser. | ||||||
19 | (vii) Receipts to access a carrier's network or | ||||||
20 | from the sale of telecommunication services or | ||||||
21 | ancillary services for resale are in this State as | ||||||
22 | follows: | ||||||
23 | (a) 100% of the receipts from access fees | ||||||
24 | attributable to intrastate telecommunications | ||||||
25 | service that both originates and terminates in | ||||||
26 | this State. |
| |||||||
| |||||||
1 | (b) 50% of the receipts from access fees | ||||||
2 | attributable to interstate telecommunications | ||||||
3 | service if the interstate call either originates | ||||||
4 | or terminates in this State. | ||||||
5 | (c) 100% of the receipts from interstate end | ||||||
6 | user access line charges, if the customer's | ||||||
7 | service address is in this State. As used in this | ||||||
8 | subdivision, "interstate end user access line | ||||||
9 | charges" includes, but is not limited to, the | ||||||
10 | surcharge approved by the federal communications | ||||||
11 | commission and levied pursuant to 47 CFR 69. | ||||||
12 | (d) Gross receipts from sales of | ||||||
13 | telecommunication services or from ancillary | ||||||
14 | services for telecommunications services sold to | ||||||
15 | other telecommunication service providers for | ||||||
16 | resale shall be sourced to this State using the | ||||||
17 | apportionment concepts used for non-resale | ||||||
18 | receipts of telecommunications services if the | ||||||
19 | information is readily available to make that | ||||||
20 | determination. If the information is not readily | ||||||
21 | available, then the taxpayer may use any other | ||||||
22 | reasonable and consistent method. | ||||||
23 | (B-7) For taxable years ending on or after December 31, | ||||||
24 | 2008, receipts from the sale of broadcasting services are | ||||||
25 | in this State if the broadcasting services are received in | ||||||
26 | this State. For purposes of this paragraph (B-7), the |
| |||||||
| |||||||
1 | following terms have the following meanings: | ||||||
2 | "Advertising revenue" means consideration received | ||||||
3 | by the taxpayer in exchange for broadcasting services | ||||||
4 | or allowing the broadcasting of commercials or | ||||||
5 | announcements in connection with the broadcasting of | ||||||
6 | film or radio programming, from sponsorships of the | ||||||
7 | programming, or from product placements in the | ||||||
8 | programming. | ||||||
9 | "Audience factor" means the ratio that the | ||||||
10 | audience or subscribers located in this State of a | ||||||
11 | station, a network, or a cable system bears to the | ||||||
12 | total audience or total subscribers for that station, | ||||||
13 | network, or cable system. The audience factor for film | ||||||
14 | or radio programming shall be determined by reference | ||||||
15 | to the books and records of the taxpayer or by | ||||||
16 | reference to published rating statistics provided the | ||||||
17 | method used by the taxpayer is consistently used from | ||||||
18 | year to year for this purpose and fairly represents the | ||||||
19 | taxpayer's activity in this State. | ||||||
20 | "Broadcast" or "broadcasting" or "broadcasting | ||||||
21 | services" means the transmission or provision of film | ||||||
22 | or radio programming, whether through the public | ||||||
23 | airwaves, by cable, by direct or indirect satellite | ||||||
24 | transmission, or by any other means of communication, | ||||||
25 | either through a station, a network, or a cable system. | ||||||
26 | "Film" or "film programming" means the broadcast |
| |||||||
| |||||||
1 | on television of any and all performances, events, or | ||||||
2 | productions, including but not limited to news, | ||||||
3 | sporting events, plays, stories, or other literary, | ||||||
4 | commercial, educational, or artistic works, either | ||||||
5 | live or through the use of video tape, disc, or any | ||||||
6 | other type of format or medium. Each episode of a | ||||||
7 | series of films produced for television shall | ||||||
8 | constitute separate "film" notwithstanding that the | ||||||
9 | series relates to the same principal subject and is | ||||||
10 | produced during one or more tax periods. | ||||||
11 | "Radio" or "radio programming" means the broadcast | ||||||
12 | on radio of any and all performances, events, or | ||||||
13 | productions, including but not limited to news, | ||||||
14 | sporting events, plays, stories, or other literary, | ||||||
15 | commercial, educational, or artistic works, either | ||||||
16 | live or through the use of an audio tape, disc, or any | ||||||
17 | other format or medium. Each episode in a series of | ||||||
18 | radio programming produced for radio broadcast shall | ||||||
19 | constitute a separate "radio programming" | ||||||
20 | notwithstanding that the series relates to the same | ||||||
21 | principal subject and is produced during one or more | ||||||
22 | tax periods. | ||||||
23 | (i) In the case of advertising revenue from | ||||||
24 | broadcasting, the customer is the advertiser and | ||||||
25 | the service is received in this State if the | ||||||
26 | commercial domicile of the advertiser is in this |
| |||||||
| |||||||
1 | State. | ||||||
2 | (ii) In the case where film or radio | ||||||
3 | programming is broadcast by a station, a network, | ||||||
4 | or a cable system for a fee or other remuneration | ||||||
5 | received from the recipient of the broadcast, the | ||||||
6 | portion of the service that is received in this | ||||||
7 | State is measured by the portion of the recipients | ||||||
8 | of the broadcast located in this State. | ||||||
9 | Accordingly, the fee or other remuneration for | ||||||
10 | such service that is included in the Illinois | ||||||
11 | numerator of the sales factor is the total of those | ||||||
12 | fees or other remuneration received from | ||||||
13 | recipients in Illinois. For purposes of this | ||||||
14 | paragraph, a taxpayer may determine the location | ||||||
15 | of the recipients of its broadcast using the | ||||||
16 | address of the recipient shown in its contracts | ||||||
17 | with the recipient or using the billing address of | ||||||
18 | the recipient in the taxpayer's records. | ||||||
19 | (iii) In the case where film or radio | ||||||
20 | programming is broadcast by a station, a network, | ||||||
21 | or a cable system for a fee or other remuneration | ||||||
22 | from the person providing the programming, the | ||||||
23 | portion of the broadcast service that is received | ||||||
24 | by such station, network, or cable system in this | ||||||
25 | State is measured by the portion of recipients of | ||||||
26 | the broadcast located in this State. Accordingly, |
| |||||||
| |||||||
1 | the amount of revenue related to such an | ||||||
2 | arrangement that is included in the Illinois | ||||||
3 | numerator of the sales factor is the total fee or | ||||||
4 | other total remuneration from the person providing | ||||||
5 | the programming related to that broadcast | ||||||
6 | multiplied by the Illinois audience factor for | ||||||
7 | that broadcast. | ||||||
8 | (iv) In the case where film or radio | ||||||
9 | programming is provided by a taxpayer that is a | ||||||
10 | network or station to a customer for broadcast in | ||||||
11 | exchange for a fee or other remuneration from that | ||||||
12 | customer the broadcasting service is received at | ||||||
13 | the location of the office of the customer from | ||||||
14 | which the services were ordered in the regular | ||||||
15 | course of the customer's trade or business. | ||||||
16 | Accordingly, in such a case the revenue derived by | ||||||
17 | the taxpayer that is included in the taxpayer's | ||||||
18 | Illinois numerator of the sales factor is the | ||||||
19 | revenue from such customers who receive the | ||||||
20 | broadcasting service in Illinois. | ||||||
21 | (v) In the case where film or radio programming | ||||||
22 | is provided by a taxpayer that is not a network or | ||||||
23 | station to another person for broadcasting in | ||||||
24 | exchange for a fee or other remuneration from that | ||||||
25 | person, the broadcasting service is received at | ||||||
26 | the location of the office of the customer from |
| |||||||
| |||||||
1 | which the services were ordered in the regular | ||||||
2 | course of the customer's trade or business. | ||||||
3 | Accordingly, in such a case the revenue derived by | ||||||
4 | the taxpayer that is included in the taxpayer's | ||||||
5 | Illinois numerator of the sales factor is the | ||||||
6 | revenue from such customers who receive the | ||||||
7 | broadcasting service in Illinois. | ||||||
8 | (B-8) Gross receipts from winnings under the Illinois | ||||||
9 | Lottery Law from the assignment of a prize under Section | ||||||
10 | 13-1 of the Illinois Lottery Law are received in this | ||||||
11 | State. This paragraph (B-8) applies only to taxable years | ||||||
12 | ending on or after December 31, 2013.
| ||||||
13 | (C) For taxable years ending before December 31, 2008, | ||||||
14 | sales, other than sales governed by paragraphs (B), (B-1), | ||||||
15 | and (B-2), and (B-8) are in
this State if:
| ||||||
16 | (i) The income-producing activity is performed in | ||||||
17 | this State; or
| ||||||
18 | (ii) The income-producing activity is performed | ||||||
19 | both within and
without this State and a greater | ||||||
20 | proportion of the income-producing
activity is | ||||||
21 | performed within this State than without this State, | ||||||
22 | based
on performance costs.
| ||||||
23 | (C-5) For taxable years ending on or after December 31, | ||||||
24 | 2008, sales, other than sales governed by paragraphs (B), | ||||||
25 | (B-1), (B-2), (B-5), and (B-7), are in this State if any of | ||||||
26 | the following criteria are met: |
| |||||||
| |||||||
1 | (i) Sales from the sale or lease of real property | ||||||
2 | are in this State if the property is located in this | ||||||
3 | State. | ||||||
4 | (ii) Sales from the lease or rental of tangible | ||||||
5 | personal property are in this State if the property is | ||||||
6 | located in this State during the rental period. Sales | ||||||
7 | from the lease or rental of tangible personal property | ||||||
8 | that is characteristically moving property, including, | ||||||
9 | but not limited to, motor vehicles, rolling stock, | ||||||
10 | aircraft, vessels, or mobile equipment are in this | ||||||
11 | State to the extent that the property is used in this | ||||||
12 | State. | ||||||
13 | (iii) In the case of interest, net gains (but not | ||||||
14 | less than zero) and other items of income from | ||||||
15 | intangible personal property, the sale is in this State | ||||||
16 | if: | ||||||
17 | (a) in the case of a taxpayer who is a dealer | ||||||
18 | in the item of intangible personal property within | ||||||
19 | the meaning of Section 475 of the Internal Revenue | ||||||
20 | Code, the income or gain is received from a | ||||||
21 | customer in this State. For purposes of this | ||||||
22 | subparagraph, a customer is in this State if the | ||||||
23 | customer is an individual, trust or estate who is a | ||||||
24 | resident of this State and, for all other | ||||||
25 | customers, if the customer's commercial domicile | ||||||
26 | is in this State. Unless the dealer has actual |
| |||||||
| |||||||
1 | knowledge of the residence or commercial domicile | ||||||
2 | of a customer during a taxable year, the customer | ||||||
3 | shall be deemed to be a customer in this State if | ||||||
4 | the billing address of the customer, as shown in | ||||||
5 | the records of the dealer, is in this State; or | ||||||
6 | (b) in all other cases, if the | ||||||
7 | income-producing activity of the taxpayer is | ||||||
8 | performed in this State or, if the | ||||||
9 | income-producing activity of the taxpayer is | ||||||
10 | performed both within and without this State, if a | ||||||
11 | greater proportion of the income-producing | ||||||
12 | activity of the taxpayer is performed within this | ||||||
13 | State than in any other state, based on performance | ||||||
14 | costs. | ||||||
15 | (iv) Sales of services are in this State if the | ||||||
16 | services are received in this State. For the purposes | ||||||
17 | of this section, gross receipts from the performance of | ||||||
18 | services provided to a corporation, partnership, or | ||||||
19 | trust may only be attributed to a state where that | ||||||
20 | corporation, partnership, or trust has a fixed place of | ||||||
21 | business. If the state where the services are received | ||||||
22 | is not readily determinable or is a state where the | ||||||
23 | corporation, partnership, or trust receiving the | ||||||
24 | service does not have a fixed place of business, the | ||||||
25 | services shall be deemed to be received at the location | ||||||
26 | of the office of the customer from which the services |
| |||||||
| |||||||
1 | were ordered in the regular course of the customer's | ||||||
2 | trade or business. If the ordering office cannot be | ||||||
3 | determined, the services shall be deemed to be received | ||||||
4 | at the office of the customer to which the services are | ||||||
5 | billed. If the taxpayer is not taxable in the state in | ||||||
6 | which the services are received, the sale must be | ||||||
7 | excluded from both the numerator and the denominator of | ||||||
8 | the sales factor. The Department shall adopt rules | ||||||
9 | prescribing where specific types of service are | ||||||
10 | received, including, but not limited to, publishing, | ||||||
11 | and utility service.
| ||||||
12 | (D) For taxable years ending on or after December 31, | ||||||
13 | 1995, the following
items of income shall not be included | ||||||
14 | in the numerator or denominator of the
sales factor: | ||||||
15 | dividends; amounts included under Section 78 of the | ||||||
16 | Internal
Revenue Code; and Subpart F income as defined in | ||||||
17 | Section 952 of the Internal
Revenue Code.
No inference | ||||||
18 | shall be drawn from the enactment of this paragraph (D) in
| ||||||
19 | construing this Section for taxable years ending before | ||||||
20 | December 31, 1995.
| ||||||
21 | (E) Paragraphs (B-1) and (B-2) shall apply to tax years | ||||||
22 | ending on or
after December 31, 1999, provided that a | ||||||
23 | taxpayer may elect to apply the
provisions of these | ||||||
24 | paragraphs to prior tax years. Such election shall be made
| ||||||
25 | in the form and manner prescribed by the Department, shall | ||||||
26 | be irrevocable, and
shall apply to all tax years; provided |
| |||||||
| |||||||
1 | that, if a taxpayer's Illinois income
tax liability for any | ||||||
2 | tax year, as assessed under Section 903 prior to January
1, | ||||||
3 | 1999, was computed in a manner contrary to the provisions | ||||||
4 | of paragraphs
(B-1) or (B-2), no refund shall be payable to | ||||||
5 | the taxpayer for that tax year to
the extent such refund is | ||||||
6 | the result of applying the provisions of paragraph
(B-1) or | ||||||
7 | (B-2) retroactively. In the case of a unitary business | ||||||
8 | group, such
election shall apply to all members of such | ||||||
9 | group for every tax year such group
is in existence, but | ||||||
10 | shall not apply to any taxpayer for any period during
which | ||||||
11 | that taxpayer is not a member of such group.
| ||||||
12 | (b) Insurance companies.
| ||||||
13 | (1) In general. Except as otherwise
provided by | ||||||
14 | paragraph (2), business income of an insurance company for | ||||||
15 | a
taxable year shall be apportioned to this State by | ||||||
16 | multiplying such
income by a fraction, the numerator of | ||||||
17 | which is the direct premiums
written for insurance upon | ||||||
18 | property or risk in this State, and the
denominator of | ||||||
19 | which is the direct premiums written for insurance upon
| ||||||
20 | property or risk everywhere. For purposes of this | ||||||
21 | subsection, the term
"direct premiums written" means the | ||||||
22 | total amount of direct premiums
written, assessments and | ||||||
23 | annuity considerations as reported for the
taxable year on | ||||||
24 | the annual statement filed by the company with the
Illinois | ||||||
25 | Director of Insurance in the form approved by the National
| ||||||
26 | Convention of Insurance Commissioners
or such other form as |
| |||||||
| |||||||
1 | may be
prescribed in lieu thereof.
| ||||||
2 | (2) Reinsurance. If the principal source of premiums | ||||||
3 | written by an
insurance company consists of premiums for | ||||||
4 | reinsurance accepted by it,
the business income of such | ||||||
5 | company shall be apportioned to this State
by multiplying | ||||||
6 | such income by a fraction, the numerator of which is the
| ||||||
7 | sum of (i) direct premiums written for insurance upon | ||||||
8 | property or risk
in this State, plus (ii) premiums written | ||||||
9 | for reinsurance accepted in
respect of property or risk in | ||||||
10 | this State, and the denominator of which
is the sum of | ||||||
11 | (iii) direct premiums written for insurance upon property
| ||||||
12 | or risk everywhere, plus (iv) premiums written for | ||||||
13 | reinsurance accepted
in respect of property or risk | ||||||
14 | everywhere. For purposes of this
paragraph, premiums | ||||||
15 | written for reinsurance accepted in respect of
property or | ||||||
16 | risk in this State, whether or not otherwise determinable,
| ||||||
17 | may, at the election of the company, be determined on the | ||||||
18 | basis of the
proportion which premiums written for | ||||||
19 | reinsurance accepted from
companies commercially domiciled | ||||||
20 | in Illinois bears to premiums written
for reinsurance | ||||||
21 | accepted from all sources, or, alternatively, in the
| ||||||
22 | proportion which the sum of the direct premiums written for | ||||||
23 | insurance
upon property or risk in this State by each | ||||||
24 | ceding company from which
reinsurance is accepted bears to | ||||||
25 | the sum of the total direct premiums
written by each such | ||||||
26 | ceding company for the taxable year. The election made by a |
| |||||||
| |||||||
1 | company under this paragraph for its first taxable year | ||||||
2 | ending on or after December 31, 2011, shall be binding for | ||||||
3 | that company for that taxable year and for all subsequent | ||||||
4 | taxable years, and may be altered only with the written | ||||||
5 | permission of the Department, which shall not be | ||||||
6 | unreasonably withheld.
| ||||||
7 | (c) Financial organizations.
| ||||||
8 | (1) In general. For taxable years ending before | ||||||
9 | December 31, 2008, business income of a financial
| ||||||
10 | organization shall be apportioned to this State by | ||||||
11 | multiplying such
income by a fraction, the numerator of | ||||||
12 | which is its business income from
sources within this | ||||||
13 | State, and the denominator of which is its business
income | ||||||
14 | from all sources. For the purposes of this subsection, the
| ||||||
15 | business income of a financial organization from sources | ||||||
16 | within this
State is the sum of the amounts referred to in | ||||||
17 | subparagraphs (A) through
(E) following, but excluding the | ||||||
18 | adjusted income of an international banking
facility as | ||||||
19 | determined in paragraph (2):
| ||||||
20 | (A) Fees, commissions or other compensation for | ||||||
21 | financial services
rendered within this State;
| ||||||
22 | (B) Gross profits from trading in stocks, bonds or | ||||||
23 | other securities
managed within this State;
| ||||||
24 | (C) Dividends, and interest from Illinois | ||||||
25 | customers, which are received
within this State;
| ||||||
26 | (D) Interest charged to customers at places of |
| |||||||
| |||||||
1 | business maintained
within this State for carrying | ||||||
2 | debit balances of margin accounts,
without deduction | ||||||
3 | of any costs incurred in carrying such accounts; and
| ||||||
4 | (E) Any other gross income resulting from the | ||||||
5 | operation as a
financial organization within this | ||||||
6 | State. In computing the amounts
referred to in | ||||||
7 | paragraphs (A) through (E) of this subsection, any | ||||||
8 | amount
received by a member of an affiliated group | ||||||
9 | (determined under Section
1504(a) of the Internal | ||||||
10 | Revenue Code but without reference to whether
any such | ||||||
11 | corporation is an "includible corporation" under | ||||||
12 | Section
1504(b) of the Internal Revenue Code) from | ||||||
13 | another member of such group
shall be included only to | ||||||
14 | the extent such amount exceeds expenses of the
| ||||||
15 | recipient directly related thereto.
| ||||||
16 | (2) International Banking Facility. For taxable years | ||||||
17 | ending before December 31, 2008:
| ||||||
18 | (A) Adjusted Income. The adjusted income of an | ||||||
19 | international banking
facility is its income reduced | ||||||
20 | by the amount of the floor amount.
| ||||||
21 | (B) Floor Amount. The floor amount shall be the | ||||||
22 | amount, if any,
determined
by multiplying the income of | ||||||
23 | the international banking facility by a fraction,
not | ||||||
24 | greater than one, which is determined as follows:
| ||||||
25 | (i) The numerator shall be:
| ||||||
26 | The average aggregate, determined on a |
| |||||||
| |||||||
1 | quarterly basis, of the
financial
organization's | ||||||
2 | loans to banks in foreign countries, to foreign | ||||||
3 | domiciled
borrowers (except where secured | ||||||
4 | primarily by real estate) and to foreign
| ||||||
5 | governments and other foreign official | ||||||
6 | institutions, as reported for its
branches, | ||||||
7 | agencies and offices within the state on its | ||||||
8 | "Consolidated Report
of Condition", Schedule A, | ||||||
9 | Lines 2.c., 5.b., and 7.a., which was filed with
| ||||||
10 | the Federal Deposit Insurance Corporation and | ||||||
11 | other regulatory authorities,
for the year 1980, | ||||||
12 | minus
| ||||||
13 | The average aggregate, determined on a | ||||||
14 | quarterly basis, of such loans
(other
than loans of | ||||||
15 | an international banking facility), as reported by | ||||||
16 | the financial
institution for its branches, | ||||||
17 | agencies and offices within the state, on
the | ||||||
18 | corresponding Schedule and lines of the | ||||||
19 | Consolidated Report of Condition
for the current | ||||||
20 | taxable year, provided, however, that in no case | ||||||
21 | shall the
amount determined in this clause (the | ||||||
22 | subtrahend) exceed the amount determined
in the | ||||||
23 | preceding clause (the minuend); and
| ||||||
24 | (ii) the denominator shall be the average | ||||||
25 | aggregate, determined on a
quarterly basis, of the | ||||||
26 | international banking facility's loans to banks in
|
| |||||||
| |||||||
1 | foreign countries, to foreign domiciled borrowers | ||||||
2 | (except where secured
primarily by real estate) | ||||||
3 | and to foreign governments and other foreign
| ||||||
4 | official institutions, which were recorded in its | ||||||
5 | financial accounts for
the current taxable year.
| ||||||
6 | (C) Change to Consolidated Report of Condition and | ||||||
7 | in Qualification.
In the event the Consolidated Report | ||||||
8 | of Condition which is filed with the
Federal Deposit | ||||||
9 | Insurance Corporation and other regulatory authorities | ||||||
10 | is
altered so that the information required for | ||||||
11 | determining the floor amount
is not found on Schedule | ||||||
12 | A, lines 2.c., 5.b. and 7.a., the financial
institution | ||||||
13 | shall notify the Department and the Department may, by
| ||||||
14 | regulations or otherwise, prescribe or authorize the | ||||||
15 | use of an alternative
source for such information. The | ||||||
16 | financial institution shall also notify
the Department | ||||||
17 | should its international banking facility fail to | ||||||
18 | qualify as
such, in whole or in part, or should there | ||||||
19 | be any amendment or change to
the Consolidated Report | ||||||
20 | of Condition, as originally filed, to the extent
such | ||||||
21 | amendment or change alters the information used in | ||||||
22 | determining the floor
amount.
| ||||||
23 | (3) For taxable years ending on or after December 31, | ||||||
24 | 2008, the business income of a financial organization shall | ||||||
25 | be apportioned to this State by multiplying such income by | ||||||
26 | a fraction, the numerator of which is its gross receipts |
| |||||||
| |||||||
1 | from sources in this State or otherwise attributable to | ||||||
2 | this State's marketplace and the denominator of which is | ||||||
3 | its gross receipts everywhere during the taxable year. | ||||||
4 | "Gross receipts" for purposes of this subparagraph (3) | ||||||
5 | means gross income, including net taxable gain on | ||||||
6 | disposition of assets, including securities and money | ||||||
7 | market instruments, when derived from transactions and | ||||||
8 | activities in the regular course of the financial | ||||||
9 | organization's trade or business. The following examples | ||||||
10 | are illustrative:
| ||||||
11 | (i) Receipts from the lease or rental of real or | ||||||
12 | tangible personal property are in this State if the | ||||||
13 | property is located in this State during the rental | ||||||
14 | period. Receipts from the lease or rental of tangible | ||||||
15 | personal property that is characteristically moving | ||||||
16 | property, including, but not limited to, motor | ||||||
17 | vehicles, rolling stock, aircraft, vessels, or mobile | ||||||
18 | equipment are from sources in this State to the extent | ||||||
19 | that the property is used in this State. | ||||||
20 | (ii) Interest income, commissions, fees, gains on | ||||||
21 | disposition, and other receipts from assets in the | ||||||
22 | nature of loans that are secured primarily by real | ||||||
23 | estate or tangible personal property are from sources | ||||||
24 | in this State if the security is located in this State. | ||||||
25 | (iii) Interest income, commissions, fees, gains on | ||||||
26 | disposition, and other receipts from consumer loans |
| |||||||
| |||||||
1 | that are not secured by real or tangible personal | ||||||
2 | property are from sources in this State if the debtor | ||||||
3 | is a resident of this State. | ||||||
4 | (iv) Interest income, commissions, fees, gains on | ||||||
5 | disposition, and other receipts from commercial loans | ||||||
6 | and installment obligations that are not secured by | ||||||
7 | real or tangible personal property are from sources in | ||||||
8 | this State if the proceeds of the loan are to be | ||||||
9 | applied in this State. If it cannot be determined where | ||||||
10 | the funds are to be applied, the income and receipts | ||||||
11 | are from sources in this State if the office of the | ||||||
12 | borrower from which the loan was negotiated in the | ||||||
13 | regular course of business is located in this State. If | ||||||
14 | the location of this office cannot be determined, the | ||||||
15 | income and receipts shall be excluded from the | ||||||
16 | numerator and denominator of the sales factor.
| ||||||
17 | (v) Interest income, fees, gains on disposition, | ||||||
18 | service charges, merchant discount income, and other | ||||||
19 | receipts from credit card receivables are from sources | ||||||
20 | in this State if the card charges are regularly billed | ||||||
21 | to a customer in this State. | ||||||
22 | (vi) Receipts from the performance of services, | ||||||
23 | including, but not limited to, fiduciary, advisory, | ||||||
24 | and brokerage services, are in this State if the | ||||||
25 | services are received in this State within the meaning | ||||||
26 | of subparagraph (a)(3)(C-5)(iv) of this Section. |
| |||||||
| |||||||
1 | (vii) Receipts from the issuance of travelers | ||||||
2 | checks and money orders are from sources in this State | ||||||
3 | if the checks and money orders are issued from a | ||||||
4 | location within this State. | ||||||
5 | (viii) Receipts from investment assets and | ||||||
6 | activities and trading assets and activities are | ||||||
7 | included in the receipts factor as follows: | ||||||
8 | (1) Interest, dividends, net gains (but not | ||||||
9 | less than zero) and other income from investment | ||||||
10 | assets and activities from trading assets and | ||||||
11 | activities shall be included in the receipts | ||||||
12 | factor. Investment assets and activities and | ||||||
13 | trading assets and activities include but are not | ||||||
14 | limited to: investment securities; trading account | ||||||
15 | assets; federal funds; securities purchased and | ||||||
16 | sold under agreements to resell or repurchase; | ||||||
17 | options; futures contracts; forward contracts; | ||||||
18 | notional principal contracts such as swaps; | ||||||
19 | equities; and foreign currency transactions. With | ||||||
20 | respect to the investment and trading assets and | ||||||
21 | activities described in subparagraphs (A) and (B) | ||||||
22 | of this paragraph, the receipts factor shall | ||||||
23 | include the amounts described in such | ||||||
24 | subparagraphs. | ||||||
25 | (A) The receipts factor shall include the | ||||||
26 | amount by which interest from federal funds |
| |||||||
| |||||||
1 | sold and securities purchased under resale | ||||||
2 | agreements exceeds interest expense on federal | ||||||
3 | funds purchased and securities sold under | ||||||
4 | repurchase agreements. | ||||||
5 | (B) The receipts factor shall include the | ||||||
6 | amount by which interest, dividends, gains and | ||||||
7 | other income from trading assets and | ||||||
8 | activities, including but not limited to | ||||||
9 | assets and activities in the matched book, in | ||||||
10 | the arbitrage book, and foreign currency | ||||||
11 | transactions, exceed amounts paid in lieu of | ||||||
12 | interest, amounts paid in lieu of dividends, | ||||||
13 | and losses from such assets and activities. | ||||||
14 | (2) The numerator of the receipts factor | ||||||
15 | includes interest, dividends, net gains (but not | ||||||
16 | less than zero), and other income from investment | ||||||
17 | assets and activities and from trading assets and | ||||||
18 | activities described in paragraph (1) of this | ||||||
19 | subsection that are attributable to this State. | ||||||
20 | (A) The amount of interest, dividends, net | ||||||
21 | gains (but not less than zero), and other | ||||||
22 | income from investment assets and activities | ||||||
23 | in the investment account to be attributed to | ||||||
24 | this State and included in the numerator is | ||||||
25 | determined by multiplying all such income from | ||||||
26 | such assets and activities by a fraction, the |
| |||||||
| |||||||
1 | numerator of which is the gross income from | ||||||
2 | such assets and activities which are properly | ||||||
3 | assigned to a fixed place of business of the | ||||||
4 | taxpayer within this State and the denominator | ||||||
5 | of which is the gross income from all such | ||||||
6 | assets and activities. | ||||||
7 | (B) The amount of interest from federal | ||||||
8 | funds sold and purchased and from securities | ||||||
9 | purchased under resale agreements and | ||||||
10 | securities sold under repurchase agreements | ||||||
11 | attributable to this State and included in the | ||||||
12 | numerator is determined by multiplying the | ||||||
13 | amount described in subparagraph (A) of | ||||||
14 | paragraph (1) of this subsection from such | ||||||
15 | funds and such securities by a fraction, the | ||||||
16 | numerator of which is the gross income from | ||||||
17 | such funds and such securities which are | ||||||
18 | properly assigned to a fixed place of business | ||||||
19 | of the taxpayer within this State and the | ||||||
20 | denominator of which is the gross income from | ||||||
21 | all such funds and such securities. | ||||||
22 | (C) The amount of interest, dividends, | ||||||
23 | gains, and other income from trading assets and | ||||||
24 | activities, including but not limited to | ||||||
25 | assets and activities in the matched book, in | ||||||
26 | the arbitrage book and foreign currency |
| |||||||
| |||||||
1 | transactions (but excluding amounts described | ||||||
2 | in subparagraphs (A) or (B) of this paragraph), | ||||||
3 | attributable to this State and included in the | ||||||
4 | numerator is determined by multiplying the | ||||||
5 | amount described in subparagraph (B) of | ||||||
6 | paragraph (1) of this subsection by a fraction, | ||||||
7 | the numerator of which is the gross income from | ||||||
8 | such trading assets and activities which are | ||||||
9 | properly assigned to a fixed place of business | ||||||
10 | of the taxpayer within this State and the | ||||||
11 | denominator of which is the gross income from | ||||||
12 | all such assets and activities. | ||||||
13 | (D) Properly assigned, for purposes of | ||||||
14 | this paragraph (2) of this subsection, means | ||||||
15 | the investment or trading asset or activity is | ||||||
16 | assigned to the fixed place of business with | ||||||
17 | which it has a preponderance of substantive | ||||||
18 | contacts. An investment or trading asset or | ||||||
19 | activity assigned by the taxpayer to a fixed | ||||||
20 | place of business without the State shall be | ||||||
21 | presumed to have been properly assigned if: | ||||||
22 | (i) the taxpayer has assigned, in the | ||||||
23 | regular course of its business, such asset | ||||||
24 | or activity on its records to a fixed place | ||||||
25 | of business consistent with federal or | ||||||
26 | state regulatory requirements; |
| |||||||
| |||||||
1 | (ii) such assignment on its records is | ||||||
2 | based upon substantive contacts of the | ||||||
3 | asset or activity to such fixed place of | ||||||
4 | business; and | ||||||
5 | (iii) the taxpayer uses such records | ||||||
6 | reflecting assignment of such assets or | ||||||
7 | activities for the filing of all state and | ||||||
8 | local tax returns for which an assignment | ||||||
9 | of such assets or activities to a fixed | ||||||
10 | place of business is required. | ||||||
11 | (E) The presumption of proper assignment | ||||||
12 | of an investment or trading asset or activity | ||||||
13 | provided in subparagraph (D) of paragraph (2) | ||||||
14 | of this subsection may be rebutted upon a | ||||||
15 | showing by the Department, supported by a | ||||||
16 | preponderance of the evidence, that the | ||||||
17 | preponderance of substantive contacts | ||||||
18 | regarding such asset or activity did not occur | ||||||
19 | at the fixed place of business to which it was | ||||||
20 | assigned on the taxpayer's records. If the | ||||||
21 | fixed place of business that has a | ||||||
22 | preponderance of substantive contacts cannot | ||||||
23 | be determined for an investment or trading | ||||||
24 | asset or activity to which the presumption in | ||||||
25 | subparagraph (D) of paragraph (2) of this | ||||||
26 | subsection does not apply or with respect to |
| |||||||
| |||||||
1 | which that presumption has been rebutted, that | ||||||
2 | asset or activity is properly assigned to the | ||||||
3 | state in which the taxpayer's commercial | ||||||
4 | domicile is located. For purposes of this | ||||||
5 | subparagraph (E), it shall be presumed, | ||||||
6 | subject to rebuttal, that taxpayer's | ||||||
7 | commercial domicile is in the state of the | ||||||
8 | United States or the District of Columbia to | ||||||
9 | which the greatest number of employees are | ||||||
10 | regularly connected with the management of the | ||||||
11 | investment or trading income or out of which | ||||||
12 | they are working, irrespective of where the | ||||||
13 | services of such employees are performed, as of | ||||||
14 | the last day of the taxable year.
| ||||||
15 | (4) (Blank). | ||||||
16 | (5) (Blank). | ||||||
17 | (c-1) Federally regulated exchanges. For taxable years | ||||||
18 | ending on or after December 31, 2012, business income of a | ||||||
19 | federally regulated exchange shall, at the option of the | ||||||
20 | federally regulated exchange, be apportioned to this State by | ||||||
21 | multiplying such income by a fraction, the numerator of which | ||||||
22 | is its business income from sources within this State, and the | ||||||
23 | denominator of which is its business income from all sources. | ||||||
24 | For purposes of this subsection, the business income within | ||||||
25 | this State of a federally regulated exchange is the sum of the | ||||||
26 | following: |
| |||||||
| |||||||
1 | (1) Receipts attributable to transactions executed on | ||||||
2 | a physical trading floor if that physical trading floor is | ||||||
3 | located in this State. | ||||||
4 | (2) Receipts attributable to all other matching, | ||||||
5 | execution, or clearing transactions, including without | ||||||
6 | limitation receipts from the provision of matching, | ||||||
7 | execution, or clearing services to another entity, | ||||||
8 | multiplied by (i) for taxable years ending on or after | ||||||
9 | December 31, 2012 but before December 31, 2013, 63.77%; and | ||||||
10 | (ii) for taxable years ending on or after December 31, | ||||||
11 | 2013, 27.54%. | ||||||
12 | (3) All other receipts not governed by subparagraphs | ||||||
13 | (1) or (2) of this subsection (c-1), to the extent the | ||||||
14 | receipts would be characterized as "sales in this State" | ||||||
15 | under item (3) of subsection (a) of this Section. | ||||||
16 | "Federally regulated exchange" means (i) a "registered | ||||||
17 | entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B), | ||||||
18 | or (C), (ii) an "exchange" or "clearing agency" within the | ||||||
19 | meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such | ||||||
20 | entities regulated under any successor regulatory structure to | ||||||
21 | the foregoing, and (iv) all taxpayers who are members of the | ||||||
22 | same unitary business group as a federally regulated exchange, | ||||||
23 | determined without regard to the prohibition in Section | ||||||
24 | 1501(a)(27) of this Act against including in a unitary business | ||||||
25 | group taxpayers who are ordinarily required to apportion | ||||||
26 | business income under different subsections of this Section; |
| |||||||
| |||||||
1 | provided that this subparagraph (iv) shall apply only if 50% or | ||||||
2 | more of the business receipts of the unitary business group | ||||||
3 | determined by application of this subparagraph (iv) for the | ||||||
4 | taxable year are attributable to the matching, execution, or | ||||||
5 | clearing of transactions conducted by an entity described in | ||||||
6 | subparagraph (i), (ii), or (iii) of this paragraph. | ||||||
7 | In no event shall the Illinois apportionment percentage | ||||||
8 | computed in accordance with this subsection (c-1) for any | ||||||
9 | taxpayer for any tax year be less than the Illinois | ||||||
10 | apportionment percentage computed under this subsection (c-1) | ||||||
11 | for that taxpayer for the first full tax year ending on or | ||||||
12 | after December 31, 2013 for which this subsection (c-1) applied | ||||||
13 | to the taxpayer. | ||||||
14 | (d) Transportation services. For taxable years ending | ||||||
15 | before December 31, 2008, business income derived from | ||||||
16 | furnishing
transportation services shall be apportioned to | ||||||
17 | this State in accordance
with paragraphs (1) and (2):
| ||||||
18 | (1) Such business income (other than that derived from
| ||||||
19 | transportation by pipeline) shall be apportioned to this | ||||||
20 | State by
multiplying such income by a fraction, the | ||||||
21 | numerator of which is the
revenue miles of the person in | ||||||
22 | this State, and the denominator of which
is the revenue | ||||||
23 | miles of the person everywhere. For purposes of this
| ||||||
24 | paragraph, a revenue mile is the transportation of 1 | ||||||
25 | passenger or 1 net
ton of freight the distance of 1 mile | ||||||
26 | for a consideration. Where a
person is engaged in the |
| |||||||
| |||||||
1 | transportation of both passengers and freight,
the | ||||||
2 | fraction above referred to shall be determined by means of | ||||||
3 | an
average of the passenger revenue mile fraction and the | ||||||
4 | freight revenue
mile fraction, weighted to reflect the | ||||||
5 | person's
| ||||||
6 | (A) relative railway operating income from total | ||||||
7 | passenger and total
freight service, as reported to the | ||||||
8 | Interstate Commerce Commission, in
the case of | ||||||
9 | transportation by railroad, and
| ||||||
10 | (B) relative gross receipts from passenger and | ||||||
11 | freight
transportation, in case of transportation | ||||||
12 | other than by railroad.
| ||||||
13 | (2) Such business income derived from transportation | ||||||
14 | by pipeline
shall be apportioned to this State by | ||||||
15 | multiplying such income by a
fraction, the numerator of | ||||||
16 | which is the revenue miles of the person in
this State, and | ||||||
17 | the denominator of which is the revenue miles of the
person | ||||||
18 | everywhere. For the purposes of this paragraph, a revenue | ||||||
19 | mile is
the transportation by pipeline of 1 barrel of oil, | ||||||
20 | 1,000 cubic feet of
gas, or of any specified quantity of | ||||||
21 | any other substance, the distance
of 1 mile for a | ||||||
22 | consideration.
| ||||||
23 | (3) For taxable years ending on or after December 31, | ||||||
24 | 2008, business income derived from providing | ||||||
25 | transportation services other than airline services shall | ||||||
26 | be apportioned to this State by using a fraction, (a) the |
| |||||||
| |||||||
1 | numerator of which shall be (i) all receipts from any | ||||||
2 | movement or shipment of people, goods, mail, oil, gas, or | ||||||
3 | any other substance (other than by airline) that both | ||||||
4 | originates and terminates in this State, plus (ii) that | ||||||
5 | portion of the person's gross receipts from movements or | ||||||
6 | shipments of people, goods, mail, oil, gas, or any other | ||||||
7 | substance (other than by airline) that originates in one | ||||||
8 | state or jurisdiction and terminates in another state or | ||||||
9 | jurisdiction, that is determined by the ratio that the | ||||||
10 | miles traveled in this State bears to total miles | ||||||
11 | everywhere and (b) the denominator of which shall be all | ||||||
12 | revenue derived from the movement or shipment of people, | ||||||
13 | goods, mail, oil, gas, or any other substance (other than | ||||||
14 | by airline). Where a taxpayer is engaged in the | ||||||
15 | transportation of both passengers and freight, the | ||||||
16 | fraction above referred to shall first be determined | ||||||
17 | separately for passenger miles and freight miles. Then an | ||||||
18 | average of the passenger miles fraction and the freight | ||||||
19 | miles fraction shall be weighted to reflect the taxpayer's: | ||||||
20 | (A) relative railway operating income from total | ||||||
21 | passenger and total freight service, as reported to the | ||||||
22 | Surface Transportation Board, in the case of | ||||||
23 | transportation by railroad; and
| ||||||
24 | (B) relative gross receipts from passenger and | ||||||
25 | freight transportation, in case of transportation | ||||||
26 | other than by railroad.
|
| |||||||
| |||||||
1 | (4) For taxable years ending on or after December 31, | ||||||
2 | 2008, business income derived from furnishing airline
| ||||||
3 | transportation services shall be apportioned to this State | ||||||
4 | by
multiplying such income by a fraction, the numerator of | ||||||
5 | which is the
revenue miles of the person in this State, and | ||||||
6 | the denominator of which
is the revenue miles of the person | ||||||
7 | everywhere. For purposes of this
paragraph, a revenue mile | ||||||
8 | is the transportation of one passenger or one net
ton of | ||||||
9 | freight the distance of one mile for a consideration. If a
| ||||||
10 | person is engaged in the transportation of both passengers | ||||||
11 | and freight,
the fraction above referred to shall be | ||||||
12 | determined by means of an
average of the passenger revenue | ||||||
13 | mile fraction and the freight revenue
mile fraction, | ||||||
14 | weighted to reflect the person's relative gross receipts | ||||||
15 | from passenger and freight
airline transportation.
| ||||||
16 | (e) Combined apportionment. Where 2 or more persons are | ||||||
17 | engaged in
a unitary business as described in subsection | ||||||
18 | (a)(27) of
Section 1501,
a part of which is conducted in this | ||||||
19 | State by one or more members of the
group, the business income | ||||||
20 | attributable to this State by any such member
or members shall | ||||||
21 | be apportioned by means of the combined apportionment method.
| ||||||
22 | (f) Alternative allocation. If the allocation and | ||||||
23 | apportionment
provisions of subsections (a) through (e) and of | ||||||
24 | subsection (h) do not
fairly represent the
extent of a person's | ||||||
25 | business activity in this State, the person may
petition for, | ||||||
26 | or the Director may, without a petition, permit or require, in |
| |||||||
| |||||||
1 | respect of all or any part
of the person's business activity, | ||||||
2 | if reasonable:
| ||||||
3 | (1) Separate accounting;
| ||||||
4 | (2) The exclusion of any one or more factors;
| ||||||
5 | (3) The inclusion of one or more additional factors | ||||||
6 | which will
fairly represent the person's business | ||||||
7 | activities in this State; or
| ||||||
8 | (4) The employment of any other method to effectuate an | ||||||
9 | equitable
allocation and apportionment of the person's | ||||||
10 | business income.
| ||||||
11 | (g) Cross reference. For allocation of business income by | ||||||
12 | residents,
see Section 301(a).
| ||||||
13 | (h) For tax years ending on or after December 31, 1998, the | ||||||
14 | apportionment
factor of persons who apportion their business | ||||||
15 | income to this State under
subsection (a) shall be equal to:
| ||||||
16 | (1) for tax years ending on or after December 31, 1998 | ||||||
17 | and before December
31, 1999, 16 2/3% of the property | ||||||
18 | factor plus 16 2/3% of the payroll factor
plus
66 2/3% of | ||||||
19 | the sales factor;
| ||||||
20 | (2) for tax years ending on or after December 31, 1999 | ||||||
21 | and before December
31,
2000, 8 1/3% of the property factor | ||||||
22 | plus 8 1/3% of the payroll factor plus 83
1/3%
of the sales | ||||||
23 | factor;
| ||||||
24 | (3) for tax years ending on or after December 31, 2000, | ||||||
25 | the sales factor.
| ||||||
26 | If, in any tax year ending on or after December 31, 1998 and |
| |||||||
| |||||||
1 | before December
31, 2000, the denominator of the payroll, | ||||||
2 | property, or sales factor is zero,
the apportionment
factor | ||||||
3 | computed in paragraph (1) or (2) of this subsection for that | ||||||
4 | year shall
be divided by an amount equal to 100% minus the | ||||||
5 | percentage weight given to each
factor whose denominator is | ||||||
6 | equal to zero.
| ||||||
7 | (Source: P.A. 96-763, eff. 8-25-09; 97-507, eff. 8-23-11; | ||||||
8 | 97-636, eff. 6-1-12 .)
| ||||||
9 | (35 ILCS 5/701) (from Ch. 120, par. 7-701) | ||||||
10 | Sec. 701. Requirement and Amount of Withholding.
| ||||||
11 | (a) In General. Every
employer maintaining an office or | ||||||
12 | transacting business within this State
and required under the | ||||||
13 | provisions of the Internal Revenue Code to
withhold a tax on:
| ||||||
14 | (1) compensation paid in this State (as determined | ||||||
15 | under Section
304(a)(2)(B) to an individual; or
| ||||||
16 | (2) payments described in subsection (b) shall deduct | ||||||
17 | and withhold from
such compensation for each payroll period | ||||||
18 | (as defined in Section 3401 of
the Internal Revenue Code) | ||||||
19 | an amount equal to the amount by which such
individual's
| ||||||
20 | compensation exceeds the proportionate part of this | ||||||
21 | withholding exemption
(computed as provided in Section | ||||||
22 | 702) attributable to the payroll period
for which such | ||||||
23 | compensation is payable multiplied by a percentage equal
to | ||||||
24 | the percentage tax rate for individuals provided in | ||||||
25 | subsection (b) of
Section 201.
|
| |||||||
| |||||||
1 | (b) Payment to Residents. Any payment (including | ||||||
2 | compensation , but not including a payment from which | ||||||
3 | withholding is required under Section 710 of this Act ) to a
| ||||||
4 | resident
by a payor maintaining an office or transacting | ||||||
5 | business within this State
(including any agency, officer, or | ||||||
6 | employee of this State or of any political
subdivision of this | ||||||
7 | State) and on which withholding of tax is required under
the | ||||||
8 | provisions of the
Internal Revenue Code shall be deemed to be | ||||||
9 | compensation paid in this State
by an employer to an employee | ||||||
10 | for the purposes of Article 7 and Section
601(b)(1) to the | ||||||
11 | extent such payment is included in the recipient's base
income | ||||||
12 | and not subjected to withholding by another state.
| ||||||
13 | Notwithstanding any other provision to the contrary, no amount | ||||||
14 | shall be
withheld from unemployment insurance benefit payments | ||||||
15 | made to an individual
pursuant to the Unemployment Insurance | ||||||
16 | Act unless the individual has
voluntarily elected the | ||||||
17 | withholding pursuant to rules promulgated by the
Director of | ||||||
18 | Employment Security.
| ||||||
19 | (c) Special Definitions. Withholding shall be considered | ||||||
20 | required under
the provisions of the Internal Revenue Code to | ||||||
21 | the extent the Internal Revenue
Code either requires | ||||||
22 | withholding or allows for voluntary withholding the
payor and | ||||||
23 | recipient have entered into such a voluntary withholding | ||||||
24 | agreement.
For the purposes of Article 7 and Section 1002(c) | ||||||
25 | the term "employer" includes
any payor who is required to | ||||||
26 | withhold tax pursuant to this Section.
|
| |||||||
| |||||||
1 | (d) Reciprocal Exemption. The Director may enter into an | ||||||
2 | agreement with
the taxing authorities of any state which | ||||||
3 | imposes a tax on or measured by
income to provide that | ||||||
4 | compensation paid in such state to residents of this
State | ||||||
5 | shall be exempt from withholding of such tax; in such case, any
| ||||||
6 | compensation paid in this State to residents of such state | ||||||
7 | shall be exempt
from withholding.
All reciprocal agreements | ||||||
8 | shall be subject to the requirements of Section
2505-575 of the | ||||||
9 | Department of Revenue Law (20 ILCS
2505/2505-575).
| ||||||
10 | (e) Notwithstanding subsection (a)(2) of this Section, no | ||||||
11 | withholding
is required on payments for which withholding is | ||||||
12 | required under Section
3405 or 3406 of the Internal Revenue | ||||||
13 | Code.
| ||||||
14 | (Source: P.A. 97-507, eff. 8-23-11.)
| ||||||
15 | (35 ILCS 5/710) (from Ch. 120, par. 7-710)
| ||||||
16 | Sec. 710. Withholding from lottery winnings. (a) In | ||||||
17 | General. | ||||||
18 | (1) Any person
making a payment to a resident or | ||||||
19 | nonresident of winnings under the Illinois
Lottery Law and | ||||||
20 | not required to withhold Illinois income tax from such | ||||||
21 | payment
under Subsection (b) of Section 701 of this Act | ||||||
22 | because those winnings are
not subject to Federal income | ||||||
23 | tax withholding, must withhold Illinois income
tax from | ||||||
24 | such payment at a rate equal to the percentage tax rate for | ||||||
25 | individuals
provided in subsection (b) of Section 201, |
| |||||||
| |||||||
1 | provided that withholding is
not required if such payment | ||||||
2 | of winnings is less than $1,000.
| ||||||
3 | (2) In the case of an assignment of a lottery prize | ||||||
4 | under Section 13.1 of the Illinois Lottery Law, any person | ||||||
5 | making a payment of the purchase price after December 31, | ||||||
6 | 2013, shall withhold from the amount of each payment at a | ||||||
7 | rate equal to the percentage tax rate for individuals | ||||||
8 | provided in subsection (b) of Section 201. | ||||||
9 | (b) Credit for taxes withheld. Any amount withheld under | ||||||
10 | Subsection (a)
shall be a credit against the Illinois income | ||||||
11 | tax liability of the person
to whom the payment of winnings was | ||||||
12 | made for the taxable year in which that
person incurred an | ||||||
13 | Illinois income tax liability with respect to those winnings.
| ||||||
14 | (Source: P.A. 85-731.)
| ||||||
15 | (35 ILCS 5/905) (from Ch. 120, par. 9-905)
| ||||||
16 | Sec. 905. Limitations on Notices of Deficiency.
| ||||||
17 | (a) In general. Except as otherwise provided in this Act:
| ||||||
18 | (1) A notice of deficiency shall be issued not later | ||||||
19 | than 3 years
after the date the return was filed, and
| ||||||
20 | (2) No deficiency shall be assessed or collected with | ||||||
21 | respect to the
year for which the return was filed unless | ||||||
22 | such notice is issued within such
period.
| ||||||
23 | (b) Substantial omission of items. | ||||||
24 | (1) Omission of more than 25% of income. If the | ||||||
25 | taxpayer omits
from base income an amount properly |
| |||||||
| |||||||
1 | includible therein which is in
excess of 25% of the amount | ||||||
2 | of base income stated in the return, a
notice of deficiency | ||||||
3 | may be issued not later than 6 years after the
return was | ||||||
4 | filed. For purposes of this paragraph, there shall not be
| ||||||
5 | taken into account any amount which is omitted in the | ||||||
6 | return if such
amount is disclosed in the return, or in a | ||||||
7 | statement attached to the
return, in a manner adequate to | ||||||
8 | apprise the Department of the nature and
the amount of such | ||||||
9 | item.
| ||||||
10 | (2) Reportable transactions. If a taxpayer fails to | ||||||
11 | include on any return or statement for any taxable year any | ||||||
12 | information with respect to a reportable transaction, as | ||||||
13 | required under Section 501(b) of this Act, a notice of | ||||||
14 | deficiency may be issued not later than 6 years after the | ||||||
15 | return is filed with respect to the taxable year in which | ||||||
16 | the taxpayer participated in the reportable transaction | ||||||
17 | and said deficiency is limited to the non-disclosed item.
| ||||||
18 | (3) Withholding. If an employer omits from a return | ||||||
19 | required under Section 704A of this Act for any period | ||||||
20 | beginning on or after January 1, 2013, an amount required | ||||||
21 | to be withheld and to be reported on that return which is | ||||||
22 | in excess of 25% of the total amount of withholding | ||||||
23 | required to be reported on that return, a notice of | ||||||
24 | deficiency may be issued not later than 6 years after the | ||||||
25 | return was filed. | ||||||
26 | (c) No return or fraudulent return. If no return is filed |
| |||||||
| |||||||
1 | or a
false and fraudulent return is filed with intent to evade | ||||||
2 | the tax
imposed by this Act, a notice of deficiency may be | ||||||
3 | issued at any time. For purposes of this subsection (c), any | ||||||
4 | taxpayer who is required to join in the filing of a return | ||||||
5 | filed under the provisions of subsection (e) of Section 502 of | ||||||
6 | this Act for a taxable year ending on or after December 31, | ||||||
7 | 2013 and who is not included on that return and does not file | ||||||
8 | its own return for that taxable year shall be deemed to have | ||||||
9 | failed to file a return; provided that the amount of any | ||||||
10 | proposed assessment set forth in a notice of deficiency issued | ||||||
11 | under this subsection (c) shall be limited to the amount of any | ||||||
12 | increase in liability under this Act that should have reported | ||||||
13 | on the return required under the provisions of subsection (e) | ||||||
14 | of Section 502 of this Act for that taxable year resulting from | ||||||
15 | proper inclusion of that taxpayer on that return.
| ||||||
16 | (d) Failure to report federal change. If a taxpayer fails | ||||||
17 | to
notify the Department in any case where notification is | ||||||
18 | required by
Section 304(c) or 506(b), or fails to report a | ||||||
19 | change or correction which is
treated in the same manner as if | ||||||
20 | it were a deficiency for federal income
tax purposes, a notice | ||||||
21 | of deficiency may be issued (i) at any time or
(ii) on or after | ||||||
22 | August 13, 1999, at any time for the
taxable year for which the | ||||||
23 | notification is required or for any taxable year to
which the | ||||||
24 | taxpayer may carry an Article 2 credit, or a Section 207 loss,
| ||||||
25 | earned, incurred, or used in the year for which the | ||||||
26 | notification is required;
provided, however, that the amount of |
| |||||||
| |||||||
1 | any proposed assessment set forth in the
notice shall be | ||||||
2 | limited to the amount of any deficiency resulting under this
| ||||||
3 | Act from the recomputation of the taxpayer's net income, | ||||||
4 | Article 2 credits, or
Section 207 loss earned, incurred, or | ||||||
5 | used in the taxable year for which the
notification is required | ||||||
6 | after giving effect to the item or items required to
be | ||||||
7 | reported.
| ||||||
8 | (e) Report of federal change.
| ||||||
9 | (1) Before August 13, 1999, in any case where | ||||||
10 | notification of
an alteration is given as required by | ||||||
11 | Section 506(b), a notice of
deficiency may be issued at any | ||||||
12 | time within 2 years after the date such
notification is | ||||||
13 | given, provided, however, that the amount of any
proposed | ||||||
14 | assessment set forth in such notice shall be limited to the
| ||||||
15 | amount of any deficiency resulting under this Act from | ||||||
16 | recomputation of
the taxpayer's net income, net loss, or | ||||||
17 | Article 2 credits
for the taxable year after giving
effect | ||||||
18 | to the item
or items reflected in the reported alteration.
| ||||||
19 | (2) On and after August 13, 1999, in any case where | ||||||
20 | notification of
an alteration is given as required by | ||||||
21 | Section 506(b), a notice of
deficiency may be issued at any | ||||||
22 | time within 2 years after the date such
notification is | ||||||
23 | given for the taxable year for which the notification is
| ||||||
24 | given or for any taxable year to which the taxpayer may | ||||||
25 | carry an Article 2
credit, or a Section 207 loss, earned, | ||||||
26 | incurred, or used in the year for which
the notification is |
| |||||||
| |||||||
1 | given, provided, however, that the amount of any
proposed | ||||||
2 | assessment set forth in such notice shall be limited to the
| ||||||
3 | amount of any deficiency resulting under this Act from | ||||||
4 | recomputation of
the taxpayer's net income, Article 2 | ||||||
5 | credits, or Section 207
loss earned, incurred, or used in
| ||||||
6 | the taxable year for which the notification is given after | ||||||
7 | giving
effect to the item
or items reflected in the | ||||||
8 | reported alteration.
| ||||||
9 | (f) Extension by agreement. Where, before the expiration of | ||||||
10 | the
time prescribed in this Section for the issuance of a | ||||||
11 | notice of
deficiency, both the Department and the taxpayer | ||||||
12 | shall have consented in
writing to its issuance after such | ||||||
13 | time, such notice may be issued at
any time prior to the | ||||||
14 | expiration of the period agreed upon.
In the case of a taxpayer | ||||||
15 | who is a partnership, Subchapter S corporation, or
trust and | ||||||
16 | who enters into an agreement with the Department pursuant to | ||||||
17 | this
subsection on or after January 1, 2003, a notice of | ||||||
18 | deficiency may be issued to
the partners, shareholders, or | ||||||
19 | beneficiaries of the taxpayer at any time prior
to the | ||||||
20 | expiration of the period agreed upon. Any
proposed assessment | ||||||
21 | set forth in the notice, however, shall be limited to the
| ||||||
22 | amount of
any deficiency resulting under this Act from | ||||||
23 | recomputation of items of income,
deduction, credits, or other | ||||||
24 | amounts of the taxpayer that are taken into
account by the | ||||||
25 | partner, shareholder, or beneficiary in computing its | ||||||
26 | liability
under this Act.
The period
so agreed upon may be |
| |||||||
| |||||||
1 | extended by subsequent agreements in writing made
before the | ||||||
2 | expiration of the period previously agreed upon.
| ||||||
3 | (g) Erroneous refunds. In any case in which there has been | ||||||
4 | an
erroneous refund of tax payable under this Act, a notice of | ||||||
5 | deficiency
may be issued at any time within 2 years from the | ||||||
6 | making of such refund,
or within 5 years from the making of | ||||||
7 | such refund if it appears that any
part of the refund was | ||||||
8 | induced by fraud or the misrepresentation of a
material fact, | ||||||
9 | provided, however, that the amount of any proposed
assessment | ||||||
10 | set forth in such notice shall be limited to the amount of
such | ||||||
11 | erroneous refund.
| ||||||
12 | Beginning July 1, 1993, in any case in which there has been | ||||||
13 | a refund of tax
payable under this Act attributable to a net | ||||||
14 | loss carryback as provided for in
Section 207, and that refund | ||||||
15 | is subsequently determined to be an erroneous
refund due to a | ||||||
16 | reduction in the amount of the net loss which was originally
| ||||||
17 | carried back, a notice of deficiency for the erroneous refund | ||||||
18 | amount may be
issued at any time during the same time period in | ||||||
19 | which a notice of deficiency
can be issued on the loss year | ||||||
20 | creating the carryback amount and subsequent
erroneous refund. | ||||||
21 | The amount of any proposed assessment set forth in the notice
| ||||||
22 | shall be limited to the amount of such erroneous refund.
| ||||||
23 | (h) Time return deemed filed. For purposes of this Section | ||||||
24 | a tax
return filed before the last day prescribed by law | ||||||
25 | (including any
extension thereof) shall be deemed to have been | ||||||
26 | filed on such last day.
|
| |||||||
| |||||||
1 | (i) Request for prompt determination of liability. For | ||||||
2 | purposes
of subsection (a)(1), in the case of a tax return | ||||||
3 | required under this
Act in respect of a decedent, or by his | ||||||
4 | estate during the period of
administration, or by a | ||||||
5 | corporation, the period referred to in such
Subsection shall be | ||||||
6 | 18 months after a written request for prompt
determination of | ||||||
7 | liability is filed with the Department (at such time
and in | ||||||
8 | such form and manner as the Department shall by regulations
| ||||||
9 | prescribe) by the executor, administrator, or other fiduciary
| ||||||
10 | representing the estate of such decedent, or by such | ||||||
11 | corporation, but
not more than 3 years after the date the | ||||||
12 | return was filed. This
subsection shall not apply in the case | ||||||
13 | of a corporation unless:
| ||||||
14 | (1) (A) such written request notifies the Department | ||||||
15 | that the
corporation contemplates dissolution at or before | ||||||
16 | the expiration of such
18-month period, (B) the dissolution | ||||||
17 | is begun in good faith before the
expiration of such | ||||||
18 | 18-month period, and (C) the dissolution is completed;
| ||||||
19 | (2) (A) such written request notifies the Department | ||||||
20 | that a
dissolution has in good faith been begun, and (B) | ||||||
21 | the dissolution is
completed; or
| ||||||
22 | (3) a dissolution has been completed at the time such | ||||||
23 | written
request is made.
| ||||||
24 | (j) Withholding tax. In the case of returns required under | ||||||
25 | Article 7
of this Act (with respect to any amounts withheld as | ||||||
26 | tax or any amounts
required to have been withheld as tax) a |
| |||||||
| |||||||
1 | notice of deficiency shall be
issued not later than 3 years | ||||||
2 | after the 15th day of the 4th month
following the close of the | ||||||
3 | calendar year in which such withholding was
required.
| ||||||
4 | (k) Penalties for failure to make information reports. A | ||||||
5 | notice of
deficiency for the penalties provided by Subsection | ||||||
6 | 1405.1(c) of this Act may
not be issued more than 3 years after | ||||||
7 | the due date of the reports with respect
to which the penalties | ||||||
8 | are asserted.
| ||||||
9 | (l) Penalty for failure to file withholding returns. A | ||||||
10 | notice of deficiency
for penalties provided by Section 1004 of | ||||||
11 | this Act for taxpayer's failure
to file withholding returns may | ||||||
12 | not be issued more than three years after
the 15th day of the | ||||||
13 | 4th month following the close of the calendar year in
which the | ||||||
14 | withholding giving rise to taxpayer's obligation to file those
| ||||||
15 | returns occurred.
| ||||||
16 | (m) Transferee liability. A notice of deficiency may be | ||||||
17 | issued to a
transferee relative to a liability asserted under | ||||||
18 | Section 1405 during time
periods defined as follows:
| ||||||
19 | 1) Initial Transferee. In the case of the liability of | ||||||
20 | an initial
transferee, up to 2 years after the expiration | ||||||
21 | of the period of limitation for
assessment against the | ||||||
22 | transferor, except that if a court proceeding for review
of | ||||||
23 | the assessment against the transferor has begun, then up to | ||||||
24 | 2 years after
the return of the certified copy of the | ||||||
25 | judgment in the court proceeding.
| ||||||
26 | 2) Transferee of Transferee. In the case of the |
| |||||||
| |||||||
1 | liability of a
transferee,
up to 2 years after the | ||||||
2 | expiration of the period of limitation for assessment
| ||||||
3 | against the preceding transferee, but not more than 3 years | ||||||
4 | after the
expiration of the period of limitation for | ||||||
5 | assessment against the initial
transferor; except that if, | ||||||
6 | before the expiration of the period of limitation
for the | ||||||
7 | assessment of the liability of the transferee, a court | ||||||
8 | proceeding for
the collection of the tax or liability in | ||||||
9 | respect thereof has been begun
against the initial | ||||||
10 | transferor or the last preceding transferee, as the case
| ||||||
11 | may be, then the period of limitation for assessment of the | ||||||
12 | liability of the
transferee shall expire 2 years after the | ||||||
13 | return of the certified copy of the
judgment in the court | ||||||
14 | proceeding.
| ||||||
15 | (n) Notice of decrease in net loss. On and after August 23, | ||||||
16 | 2002, no notice of deficiency shall
be issued as the result of | ||||||
17 | a decrease determined by the Department in the net
loss | ||||||
18 | incurred by a taxpayer in any taxable year ending prior to | ||||||
19 | December 31, 2002 under Section 207 of this Act unless the | ||||||
20 | Department
has notified the taxpayer of the proposed decrease | ||||||
21 | within 3 years after the
return reporting the loss was filed or | ||||||
22 | within one year after an amended return
reporting an increase | ||||||
23 | in the loss was filed, provided that in the case of an
amended | ||||||
24 | return, a decrease proposed by the Department more than 3 years | ||||||
25 | after
the original return was filed may not exceed the increase | ||||||
26 | claimed by the
taxpayer on the original return.
|
| |||||||
| |||||||
1 | (Source: P.A. 93-840, eff. 7-30-04; 94-836, eff. 6-6-06.)
| ||||||
2 | Section 25. The Use Tax Act is amended by changing Section | ||||||
3 | 9 as follows: | ||||||
4 | (35 ILCS 105/9) (from Ch. 120, par. 439.9) | ||||||
5 | Sec. 9. Except as to motor vehicles, watercraft, aircraft, | ||||||
6 | and
trailers that are required to be registered with an agency | ||||||
7 | of this State,
each retailer
required or authorized to collect | ||||||
8 | the tax imposed by this Act shall pay
to the Department the | ||||||
9 | amount of such tax (except as otherwise provided)
at the time | ||||||
10 | when he is required to file his return for the period during
| ||||||
11 | which such tax was collected, less a discount of 2.1% prior to
| ||||||
12 | January 1, 1990, and 1.75% on and after January 1, 1990, or $5 | ||||||
13 | per calendar
year, whichever is greater, which is allowed to | ||||||
14 | reimburse the retailer
for expenses incurred in collecting the | ||||||
15 | tax, keeping records, preparing
and filing returns, remitting | ||||||
16 | the tax and supplying data to the
Department on request. In the | ||||||
17 | case of retailers who report and pay the
tax on a transaction | ||||||
18 | by transaction basis, as provided in this Section,
such | ||||||
19 | discount shall be taken with each such tax remittance instead | ||||||
20 | of
when such retailer files his periodic return. No discount | ||||||
21 | shall be allowed for retailers that do not possess a valid | ||||||
22 | certificate of registration at the time the sale or sales are | ||||||
23 | made upon which the discount is taken. A retailer need not | ||||||
24 | remit
that part of any tax collected by him to the extent that |
| |||||||
| |||||||
1 | he is required
to remit and does remit the tax imposed by the | ||||||
2 | Retailers' Occupation
Tax Act, with respect to the sale of the | ||||||
3 | same property. | ||||||
4 | Where such tangible personal property is sold under a | ||||||
5 | conditional
sales contract, or under any other form of sale | ||||||
6 | wherein the payment of
the principal sum, or a part thereof, is | ||||||
7 | extended beyond the close of
the period for which the return is | ||||||
8 | filed, the retailer, in collecting
the tax (except as to motor | ||||||
9 | vehicles, watercraft, aircraft, and
trailers that are required | ||||||
10 | to be registered with an agency of this State),
may collect for | ||||||
11 | each
tax return period, only the tax applicable to that part of | ||||||
12 | the selling
price actually received during such tax return | ||||||
13 | period. | ||||||
14 | Except as provided in this Section, on or before the | ||||||
15 | twentieth day of each
calendar month, such retailer shall file | ||||||
16 | a return for the preceding
calendar month. Such return shall be | ||||||
17 | filed on forms prescribed by the
Department and shall furnish | ||||||
18 | such information as the Department may
reasonably require. | ||||||
19 | The Department may require returns to be filed on a | ||||||
20 | quarterly basis.
If so required, a return for each calendar | ||||||
21 | quarter shall be filed on or
before the twentieth day of the | ||||||
22 | calendar month following the end of such
calendar quarter. The | ||||||
23 | taxpayer shall also file a return with the
Department for each | ||||||
24 | of the first two months of each calendar quarter, on or
before | ||||||
25 | the twentieth day of the following calendar month, stating: | ||||||
26 | 1. The name of the seller; |
| |||||||
| |||||||
1 | 2. The address of the principal place of business from | ||||||
2 | which he engages
in the business of selling tangible | ||||||
3 | personal property at retail in this State; | ||||||
4 | 3. The total amount of taxable receipts received by him | ||||||
5 | during the
preceding calendar month from sales of tangible | ||||||
6 | personal property by him
during such preceding calendar | ||||||
7 | month, including receipts from charge and
time sales, but | ||||||
8 | less all deductions allowed by law; | ||||||
9 | 4. The amount of credit provided in Section 2d of this | ||||||
10 | Act; | ||||||
11 | 5. The amount of tax due; | ||||||
12 | 5-5. The signature of the taxpayer; and | ||||||
13 | 6. Such other reasonable information as the Department | ||||||
14 | may
require. | ||||||
15 | If a taxpayer fails to sign a return within 30 days after | ||||||
16 | the proper notice
and demand for signature by the Department, | ||||||
17 | the return shall be considered
valid and any amount shown to be | ||||||
18 | due on the return shall be deemed assessed. | ||||||
19 | Beginning October 1, 1993, a taxpayer who has an average | ||||||
20 | monthly tax
liability of $150,000 or more shall make all | ||||||
21 | payments required by rules of the
Department by electronic | ||||||
22 | funds transfer. Beginning October 1, 1994, a taxpayer
who has | ||||||
23 | an average monthly tax liability of $100,000 or more shall make | ||||||
24 | all
payments required by rules of the Department by electronic | ||||||
25 | funds transfer.
Beginning October 1, 1995, a taxpayer who has | ||||||
26 | an average monthly tax liability
of $50,000 or more shall make |
| |||||||
| |||||||
1 | all payments required by rules of the Department
by electronic | ||||||
2 | funds transfer. Beginning October 1, 2000, a taxpayer who has
| ||||||
3 | an annual tax liability of $200,000 or more shall make all | ||||||
4 | payments required by
rules of the Department by electronic | ||||||
5 | funds transfer. The term "annual tax
liability" shall be the | ||||||
6 | sum of the taxpayer's liabilities under this Act, and
under all | ||||||
7 | other State and local occupation and use tax laws administered | ||||||
8 | by the
Department, for the immediately preceding calendar year. | ||||||
9 | The term "average
monthly tax liability" means
the sum of the | ||||||
10 | taxpayer's liabilities under this Act, and under all other | ||||||
11 | State
and local occupation and use tax laws administered by the | ||||||
12 | Department, for the
immediately preceding calendar year | ||||||
13 | divided by 12.
Beginning on October 1, 2002, a taxpayer who has | ||||||
14 | a tax liability in the
amount set forth in subsection (b) of | ||||||
15 | Section 2505-210 of the Department of
Revenue Law shall make | ||||||
16 | all payments required by rules of the Department by
electronic | ||||||
17 | funds transfer. | ||||||
18 | Before August 1 of each year beginning in 1993, the | ||||||
19 | Department shall notify
all taxpayers required to make payments | ||||||
20 | by electronic funds transfer. All
taxpayers required to make | ||||||
21 | payments by electronic funds transfer shall make
those payments | ||||||
22 | for a minimum of one year beginning on October 1. | ||||||
23 | Any taxpayer not required to make payments by electronic | ||||||
24 | funds transfer may
make payments by electronic funds transfer | ||||||
25 | with the permission of the
Department. | ||||||
26 | All taxpayers required to make payment by electronic funds |
| |||||||
| |||||||
1 | transfer and any
taxpayers authorized to voluntarily make | ||||||
2 | payments by electronic funds transfer
shall make those payments | ||||||
3 | in the manner authorized by the Department. | ||||||
4 | The Department shall adopt such rules as are necessary to | ||||||
5 | effectuate a
program of electronic funds transfer and the | ||||||
6 | requirements of this Section. | ||||||
7 | Before October 1, 2000, if the taxpayer's average monthly | ||||||
8 | tax liability
to the Department
under this Act, the Retailers' | ||||||
9 | Occupation Tax Act, the Service
Occupation Tax Act, the Service | ||||||
10 | Use Tax Act was $10,000 or more
during
the preceding 4 complete | ||||||
11 | calendar quarters, he shall file a return with the
Department | ||||||
12 | each month by the 20th day of the month next following the | ||||||
13 | month
during which such tax liability is incurred and shall | ||||||
14 | make payments to the
Department on or before the 7th, 15th, | ||||||
15 | 22nd and last day of the month
during which such liability is | ||||||
16 | incurred.
On and after October 1, 2000, if the taxpayer's | ||||||
17 | average monthly tax liability
to the Department under this Act, | ||||||
18 | the Retailers' Occupation Tax Act,
the
Service Occupation Tax | ||||||
19 | Act, and the Service Use Tax Act was $20,000 or more
during the | ||||||
20 | preceding 4 complete calendar quarters, he shall file a return | ||||||
21 | with
the Department each month by the 20th day of the month | ||||||
22 | next following the month
during which such tax liability is | ||||||
23 | incurred and shall make payment to the
Department on or before | ||||||
24 | the 7th, 15th, 22nd and last day of the
month during
which such | ||||||
25 | liability is incurred.
If the month during which such tax
| ||||||
26 | liability is incurred began prior to January 1, 1985, each |
| |||||||
| |||||||
1 | payment shall be
in an amount equal to 1/4 of the taxpayer's
| ||||||
2 | actual liability for the month or an amount set by the | ||||||
3 | Department not to
exceed 1/4 of the average monthly liability | ||||||
4 | of the taxpayer to the
Department for the preceding 4 complete | ||||||
5 | calendar quarters (excluding the
month of highest liability and | ||||||
6 | the month of lowest liability in such 4
quarter period). If the | ||||||
7 | month during which such tax liability is incurred
begins on or | ||||||
8 | after January 1, 1985, and prior to January 1, 1987, each
| ||||||
9 | payment shall be in an amount equal to 22.5% of the taxpayer's | ||||||
10 | actual liability
for the month or 27.5% of the taxpayer's | ||||||
11 | liability for the same calendar
month of the preceding year. If | ||||||
12 | the month during which such tax liability
is incurred begins on | ||||||
13 | or after January 1, 1987, and prior to January 1,
1988, each | ||||||
14 | payment shall be in an amount equal to 22.5% of the taxpayer's
| ||||||
15 | actual liability for the month or 26.25% of the taxpayer's | ||||||
16 | liability for
the same calendar month of the preceding year. If | ||||||
17 | the month during which such
tax liability is incurred begins on | ||||||
18 | or after January 1, 1988, and prior to
January 1, 1989,
or | ||||||
19 | begins on or after January 1, 1996, each payment shall be in an | ||||||
20 | amount equal
to 22.5% of the taxpayer's actual liability for | ||||||
21 | the month or 25% of the
taxpayer's liability for the same | ||||||
22 | calendar month of the preceding year. If the
month during which | ||||||
23 | such tax liability is incurred begins on or after January 1,
| ||||||
24 | 1989,
and prior to January 1, 1996, each payment shall be in an | ||||||
25 | amount equal to 22.5%
of the taxpayer's actual liability for | ||||||
26 | the month or 25% of the taxpayer's
liability for the same |
| |||||||
| |||||||
1 | calendar month of the preceding year or 100% of the
taxpayer's | ||||||
2 | actual liability for the quarter monthly reporting period. The
| ||||||
3 | amount of such quarter monthly payments shall be credited | ||||||
4 | against the final tax
liability
of the taxpayer's return for | ||||||
5 | that month. Before October 1, 2000, once
applicable, the | ||||||
6 | requirement
of the making of quarter monthly payments to the | ||||||
7 | Department shall continue
until such taxpayer's average | ||||||
8 | monthly liability to the Department during
the preceding 4 | ||||||
9 | complete calendar quarters (excluding the month of highest
| ||||||
10 | liability and the month of lowest liability) is less than
| ||||||
11 | $9,000, or until
such taxpayer's average monthly liability to | ||||||
12 | the Department as computed for
each calendar quarter of the 4 | ||||||
13 | preceding complete calendar quarter period
is less than | ||||||
14 | $10,000. However, if a taxpayer can show the
Department that
a | ||||||
15 | substantial change in the taxpayer's business has occurred | ||||||
16 | which causes
the taxpayer to anticipate that his average | ||||||
17 | monthly tax liability for the
reasonably foreseeable future | ||||||
18 | will fall below the $10,000 threshold
stated above, then
such | ||||||
19 | taxpayer
may petition the Department for change in such | ||||||
20 | taxpayer's reporting status.
On and after October 1, 2000, once | ||||||
21 | applicable, the requirement of the making
of quarter monthly | ||||||
22 | payments to the Department shall continue until such
taxpayer's | ||||||
23 | average monthly liability to the Department during the | ||||||
24 | preceding 4
complete calendar quarters (excluding the month of | ||||||
25 | highest liability and the
month of lowest liability) is less | ||||||
26 | than $19,000 or until such taxpayer's
average monthly liability |
| |||||||
| |||||||
1 | to the Department as computed for each calendar
quarter of the | ||||||
2 | 4 preceding complete calendar quarter period is less than
| ||||||
3 | $20,000. However, if a taxpayer can show the Department that a | ||||||
4 | substantial
change in the taxpayer's business has occurred | ||||||
5 | which causes the taxpayer to
anticipate that his average | ||||||
6 | monthly tax liability for the reasonably
foreseeable future | ||||||
7 | will fall below the $20,000 threshold stated above, then
such | ||||||
8 | taxpayer may petition the Department for a change in such | ||||||
9 | taxpayer's
reporting status.
The Department shall change such | ||||||
10 | taxpayer's reporting status unless it
finds that such change is | ||||||
11 | seasonal in nature and not likely to be long
term. If any such | ||||||
12 | quarter monthly payment is not paid at the time or in
the | ||||||
13 | amount required by this Section, then the taxpayer shall be | ||||||
14 | liable for
penalties and interest on
the difference between the | ||||||
15 | minimum amount due and the amount of such
quarter monthly | ||||||
16 | payment actually and timely paid, except insofar as the
| ||||||
17 | taxpayer has previously made payments for that month to the | ||||||
18 | Department in
excess of the minimum payments previously due as | ||||||
19 | provided in this Section.
The Department shall make reasonable | ||||||
20 | rules and regulations to govern the
quarter monthly payment | ||||||
21 | amount and quarter monthly payment dates for
taxpayers who file | ||||||
22 | on other than a calendar monthly basis. | ||||||
23 | If any such payment provided for in this Section exceeds | ||||||
24 | the taxpayer's
liabilities under this Act, the Retailers' | ||||||
25 | Occupation Tax Act, the Service
Occupation Tax Act and the | ||||||
26 | Service Use Tax Act, as shown by an original
monthly return, |
| |||||||
| |||||||
1 | the Department shall issue to the taxpayer a credit
memorandum | ||||||
2 | no later than 30 days after the date of payment, which
| ||||||
3 | memorandum may be submitted by the taxpayer to the Department | ||||||
4 | in payment of
tax liability subsequently to be remitted by the | ||||||
5 | taxpayer to the Department
or be assigned by the taxpayer to a | ||||||
6 | similar taxpayer under this Act, the
Retailers' Occupation Tax | ||||||
7 | Act, the Service Occupation Tax Act or the
Service Use Tax Act, | ||||||
8 | in accordance with reasonable rules and regulations to
be | ||||||
9 | prescribed by the Department, except that if such excess | ||||||
10 | payment is
shown on an original monthly return and is made | ||||||
11 | after December 31, 1986, no
credit memorandum shall be issued, | ||||||
12 | unless requested by the taxpayer. If no
such request is made, | ||||||
13 | the taxpayer may credit such excess payment against
tax | ||||||
14 | liability subsequently to be remitted by the taxpayer to the | ||||||
15 | Department
under this Act, the Retailers' Occupation Tax Act, | ||||||
16 | the Service Occupation
Tax Act or the Service Use Tax Act, in | ||||||
17 | accordance with reasonable rules and
regulations prescribed by | ||||||
18 | the Department. If the Department subsequently
determines that | ||||||
19 | all or any part of the credit taken was not actually due to
the | ||||||
20 | taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall | ||||||
21 | be
reduced by 2.1% or 1.75% of the difference between the | ||||||
22 | credit taken and
that actually due, and the taxpayer shall be | ||||||
23 | liable for penalties and
interest on such difference. | ||||||
24 | If the retailer is otherwise required to file a monthly | ||||||
25 | return and if the
retailer's average monthly tax liability to | ||||||
26 | the Department
does not exceed $200, the Department may |
| |||||||
| |||||||
1 | authorize his returns to be
filed on a quarter annual basis, | ||||||
2 | with the return for January, February,
and March of a given | ||||||
3 | year being due by April 20 of such year; with the
return for | ||||||
4 | April, May and June of a given year being due by July 20 of
such | ||||||
5 | year; with the return for July, August and September of a given
| ||||||
6 | year being due by October 20 of such year, and with the return | ||||||
7 | for
October, November and December of a given year being due by | ||||||
8 | January 20
of the following year. | ||||||
9 | If the retailer is otherwise required to file a monthly or | ||||||
10 | quarterly
return and if the retailer's average monthly tax | ||||||
11 | liability to the
Department does not exceed $50, the Department | ||||||
12 | may authorize his returns to
be filed on an annual basis, with | ||||||
13 | the return for a given year being due by
January 20 of the | ||||||
14 | following year. | ||||||
15 | Such quarter annual and annual returns, as to form and | ||||||
16 | substance,
shall be subject to the same requirements as monthly | ||||||
17 | returns. | ||||||
18 | Notwithstanding any other provision in this Act concerning | ||||||
19 | the time
within which a retailer may file his return, in the | ||||||
20 | case of any retailer
who ceases to engage in a kind of business | ||||||
21 | which makes him responsible
for filing returns under this Act, | ||||||
22 | such retailer shall file a final
return under this Act with the | ||||||
23 | Department not more than one month after
discontinuing such | ||||||
24 | business. | ||||||
25 | In addition, with respect to motor vehicles, watercraft,
| ||||||
26 | aircraft, and trailers that are required to be registered with |
| |||||||
| |||||||
1 | an agency of
this State, every
retailer selling this kind of | ||||||
2 | tangible personal property shall file,
with the Department, | ||||||
3 | upon a form to be prescribed and supplied by the
Department, a | ||||||
4 | separate return for each such item of tangible personal
| ||||||
5 | property which the retailer sells, except that if, in the same
| ||||||
6 | transaction, (i) a retailer of aircraft, watercraft, motor | ||||||
7 | vehicles or
trailers transfers more than
one aircraft, | ||||||
8 | watercraft, motor
vehicle or trailer to another aircraft, | ||||||
9 | watercraft, motor vehicle or
trailer retailer for the purpose | ||||||
10 | of resale
or (ii) a retailer of aircraft, watercraft, motor | ||||||
11 | vehicles, or trailers
transfers more than one aircraft, | ||||||
12 | watercraft, motor vehicle, or trailer to a
purchaser for use as | ||||||
13 | a qualifying rolling stock as provided in Section 3-55 of
this | ||||||
14 | Act, then
that seller may report the transfer of all the
| ||||||
15 | aircraft, watercraft, motor
vehicles
or trailers involved in | ||||||
16 | that transaction to the Department on the same
uniform
| ||||||
17 | invoice-transaction reporting return form.
For purposes of | ||||||
18 | this Section, "watercraft" means a Class 2, Class 3, or
Class
4 | ||||||
19 | watercraft as defined in Section 3-2 of the Boat Registration | ||||||
20 | and Safety Act,
a
personal watercraft, or any boat equipped | ||||||
21 | with an inboard motor. | ||||||
22 | The transaction reporting return in the case of motor | ||||||
23 | vehicles
or trailers that are required to be registered with an | ||||||
24 | agency of this
State, shall
be the same document as the Uniform | ||||||
25 | Invoice referred to in Section 5-402
of the Illinois Vehicle | ||||||
26 | Code and must show the name and address of the
seller; the name |
| |||||||
| |||||||
1 | and address of the purchaser; the amount of the selling
price | ||||||
2 | including the amount allowed by the retailer for traded-in
| ||||||
3 | property, if any; the amount allowed by the retailer for the | ||||||
4 | traded-in
tangible personal property, if any, to the extent to | ||||||
5 | which Section 2 of
this Act allows an exemption for the value | ||||||
6 | of traded-in property; the
balance payable after deducting such | ||||||
7 | trade-in allowance from the total
selling price; the amount of | ||||||
8 | tax due from the retailer with respect to
such transaction; the | ||||||
9 | amount of tax collected from the purchaser by the
retailer on | ||||||
10 | such transaction (or satisfactory evidence that such tax is
not | ||||||
11 | due in that particular instance, if that is claimed to be the | ||||||
12 | fact);
the place and date of the sale; a sufficient | ||||||
13 | identification of the
property sold; such other information as | ||||||
14 | is required in Section 5-402 of
the Illinois Vehicle Code, and | ||||||
15 | such other information as the Department
may reasonably | ||||||
16 | require. | ||||||
17 | The transaction reporting return in the case of watercraft
| ||||||
18 | and aircraft must show
the name and address of the seller; the | ||||||
19 | name and address of the
purchaser; the amount of the selling | ||||||
20 | price including the amount allowed
by the retailer for | ||||||
21 | traded-in property, if any; the amount allowed by
the retailer | ||||||
22 | for the traded-in tangible personal property, if any, to
the | ||||||
23 | extent to which Section 2 of this Act allows an exemption for | ||||||
24 | the
value of traded-in property; the balance payable after | ||||||
25 | deducting such
trade-in allowance from the total selling price; | ||||||
26 | the amount of tax due
from the retailer with respect to such |
| |||||||
| |||||||
1 | transaction; the amount of tax
collected from the purchaser by | ||||||
2 | the retailer on such transaction (or
satisfactory evidence that | ||||||
3 | such tax is not due in that particular
instance, if that is | ||||||
4 | claimed to be the fact); the place and date of the
sale, a | ||||||
5 | sufficient identification of the property sold, and such other
| ||||||
6 | information as the Department may reasonably require. | ||||||
7 | Such transaction reporting return shall be filed not later | ||||||
8 | than 20
days after the date of delivery of the item that is | ||||||
9 | being sold, but may
be filed by the retailer at any time sooner | ||||||
10 | than that if he chooses to
do so. The transaction reporting | ||||||
11 | return and tax remittance or proof of
exemption from the tax | ||||||
12 | that is imposed by this Act may be transmitted to
the | ||||||
13 | Department by way of the State agency with which, or State | ||||||
14 | officer
with whom, the tangible personal property must be | ||||||
15 | titled or registered
(if titling or registration is required) | ||||||
16 | if the Department and such
agency or State officer determine | ||||||
17 | that this procedure will expedite the
processing of | ||||||
18 | applications for title or registration. | ||||||
19 | With each such transaction reporting return, the retailer | ||||||
20 | shall remit
the proper amount of tax due (or shall submit | ||||||
21 | satisfactory evidence that
the sale is not taxable if that is | ||||||
22 | the case), to the Department or its
agents, whereupon the | ||||||
23 | Department shall issue, in the purchaser's name, a
tax receipt | ||||||
24 | (or a certificate of exemption if the Department is
satisfied | ||||||
25 | that the particular sale is tax exempt) which such purchaser
| ||||||
26 | may submit to the agency with which, or State officer with |
| |||||||
| |||||||
1 | whom, he must
title or register the tangible personal property | ||||||
2 | that is involved (if
titling or registration is required) in | ||||||
3 | support of such purchaser's
application for an Illinois | ||||||
4 | certificate or other evidence of title or
registration to such | ||||||
5 | tangible personal property. | ||||||
6 | No retailer's failure or refusal to remit tax under this | ||||||
7 | Act
precludes a user, who has paid the proper tax to the | ||||||
8 | retailer, from
obtaining his certificate of title or other | ||||||
9 | evidence of title or
registration (if titling or registration | ||||||
10 | is required) upon satisfying
the Department that such user has | ||||||
11 | paid the proper tax (if tax is due) to
the retailer. The | ||||||
12 | Department shall adopt appropriate rules to carry out
the | ||||||
13 | mandate of this paragraph. | ||||||
14 | If the user who would otherwise pay tax to the retailer | ||||||
15 | wants the
transaction reporting return filed and the payment of | ||||||
16 | tax or proof of
exemption made to the Department before the | ||||||
17 | retailer is willing to take
these actions and such user has not | ||||||
18 | paid the tax to the retailer, such
user may certify to the fact | ||||||
19 | of such delay by the retailer, and may
(upon the Department | ||||||
20 | being satisfied of the truth of such certification)
transmit | ||||||
21 | the information required by the transaction reporting return
| ||||||
22 | and the remittance for tax or proof of exemption directly to | ||||||
23 | the
Department and obtain his tax receipt or exemption | ||||||
24 | determination, in
which event the transaction reporting return | ||||||
25 | and tax remittance (if a
tax payment was required) shall be | ||||||
26 | credited by the Department to the
proper retailer's account |
| |||||||
| |||||||
1 | with the Department, but without the 2.1% or 1.75%
discount | ||||||
2 | provided for in this Section being allowed. When the user pays
| ||||||
3 | the tax directly to the Department, he shall pay the tax in the | ||||||
4 | same
amount and in the same form in which it would be remitted | ||||||
5 | if the tax had
been remitted to the Department by the retailer. | ||||||
6 | Where a retailer collects the tax with respect to the | ||||||
7 | selling price
of tangible personal property which he sells and | ||||||
8 | the purchaser
thereafter returns such tangible personal | ||||||
9 | property and the retailer
refunds the selling price thereof to | ||||||
10 | the purchaser, such retailer shall
also refund, to the | ||||||
11 | purchaser, the tax so collected from the purchaser.
When filing | ||||||
12 | his return for the period in which he refunds such tax to
the | ||||||
13 | purchaser, the retailer may deduct the amount of the tax so | ||||||
14 | refunded
by him to the purchaser from any other use tax which | ||||||
15 | such retailer may
be required to pay or remit to the | ||||||
16 | Department, as shown by such return,
if the amount of the tax | ||||||
17 | to be deducted was previously remitted to the
Department by | ||||||
18 | such retailer. If the retailer has not previously
remitted the | ||||||
19 | amount of such tax to the Department, he is entitled to no
| ||||||
20 | deduction under this Act upon refunding such tax to the | ||||||
21 | purchaser. | ||||||
22 | Any retailer filing a return under this Section shall also | ||||||
23 | include
(for the purpose of paying tax thereon) the total tax | ||||||
24 | covered by such
return upon the selling price of tangible | ||||||
25 | personal property purchased by
him at retail from a retailer, | ||||||
26 | but as to which the tax imposed by this
Act was not collected |
| |||||||
| |||||||
1 | from the retailer filing such return, and such
retailer shall | ||||||
2 | remit the amount of such tax to the Department when
filing such | ||||||
3 | return. | ||||||
4 | If experience indicates such action to be practicable, the | ||||||
5 | Department
may prescribe and furnish a combination or joint | ||||||
6 | return which will
enable retailers, who are required to file | ||||||
7 | returns hereunder and also
under the Retailers' Occupation Tax | ||||||
8 | Act, to furnish all the return
information required by both | ||||||
9 | Acts on the one form. | ||||||
10 | Where the retailer has more than one business registered | ||||||
11 | with the
Department under separate registration under this Act, | ||||||
12 | such retailer may
not file each return that is due as a single | ||||||
13 | return covering all such
registered businesses, but shall file | ||||||
14 | separate returns for each such
registered business. | ||||||
15 | Beginning January 1, 1990, each month the Department shall | ||||||
16 | pay into the
State and Local Sales Tax Reform Fund, a special | ||||||
17 | fund in the State Treasury
which is hereby created, the net | ||||||
18 | revenue realized for the preceding month
from the 1% tax on | ||||||
19 | sales of food for human consumption which is to be
consumed off | ||||||
20 | the premises where it is sold (other than alcoholic beverages,
| ||||||
21 | soft drinks and food which has been prepared for immediate | ||||||
22 | consumption) and
prescription and nonprescription medicines, | ||||||
23 | drugs, medical appliances and
insulin, urine testing | ||||||
24 | materials, syringes and needles used by diabetics. | ||||||
25 | Beginning January 1, 1990, each month the Department shall | ||||||
26 | pay into
the County and Mass Transit District Fund 4% of the |
| |||||||
| |||||||
1 | net revenue realized
for the preceding month from the 6.25% | ||||||
2 | general rate
on the selling price of tangible personal property | ||||||
3 | which is purchased
outside Illinois at retail from a retailer | ||||||
4 | and which is titled or
registered by an agency of this State's | ||||||
5 | government. | ||||||
6 | Beginning January 1, 1990, each month the Department shall | ||||||
7 | pay into
the State and Local Sales Tax Reform Fund, a special | ||||||
8 | fund in the State
Treasury, 20% of the net revenue realized
for | ||||||
9 | the preceding month from the 6.25% general rate on the selling
| ||||||
10 | price of tangible personal property, other than tangible | ||||||
11 | personal property
which is purchased outside Illinois at retail | ||||||
12 | from a retailer and which is
titled or registered by an agency | ||||||
13 | of this State's government. | ||||||
14 | Beginning August 1, 2000, each
month the Department shall | ||||||
15 | pay into the
State and Local Sales Tax Reform Fund 100% 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. Beginning | ||||||
18 | September 1, 2010, each
month the Department shall pay into the
| ||||||
19 | State and Local Sales Tax Reform Fund 100% of the net revenue | ||||||
20 | realized for the
preceding month from the 1.25% rate on the | ||||||
21 | selling price of sales tax holiday items. | ||||||
22 | Beginning January 1, 1990, each month the Department shall | ||||||
23 | pay into
the Local Government Tax Fund 16% of the net revenue | ||||||
24 | realized for the
preceding month from the 6.25% general rate on | ||||||
25 | the selling price of
tangible personal property which is | ||||||
26 | purchased outside Illinois at retail
from a retailer and which |
| |||||||
| |||||||
1 | is titled or registered by an agency of this
State's | ||||||
2 | government. | ||||||
3 | Beginning October 1, 2009, each month the Department shall | ||||||
4 | pay into the Capital Projects Fund an amount that is equal to | ||||||
5 | an amount estimated by the Department to represent 80% of the | ||||||
6 | net revenue realized for the preceding month from the sale of | ||||||
7 | candy, grooming and hygiene products, and soft drinks that had | ||||||
8 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
9 | is now taxed at 6.25%. | ||||||
10 | Beginning July 1, 2011, each
month the Department shall pay | ||||||
11 | into the Clean Air Act (CAA) Permit Fund 80% of the net revenue | ||||||
12 | realized for the
preceding month from the 6.25% general rate on | ||||||
13 | the selling price of sorbents used in Illinois in the process | ||||||
14 | of sorbent injection as used to comply with the Environmental | ||||||
15 | Protection Act or the federal Clean Air Act, but the total | ||||||
16 | payment into the Clean Air Act (CAA) Permit Fund under this Act | ||||||
17 | and the Retailers' Occupation Tax Act shall not exceed | ||||||
18 | $2,000,000 in any fiscal year. | ||||||
19 | Of the remainder of the moneys received by the Department | ||||||
20 | pursuant to
this Act, (a) 1.75% thereof shall be paid
into the | ||||||
21 | Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and
on | ||||||
22 | and after July 1, 1989, 3.8% thereof shall be paid into the
| ||||||
23 | Build Illinois Fund; provided, however, that if in any fiscal | ||||||
24 | year the
sum of (1) the aggregate of 2.2% or 3.8%, as the case | ||||||
25 | may be, of the
moneys received by the Department and required | ||||||
26 | to be paid into the Build
Illinois Fund pursuant to Section 3 |
| |||||||
| |||||||
1 | of the Retailers' Occupation Tax Act,
Section 9 of the Use Tax | ||||||
2 | Act, Section 9 of the Service Use
Tax Act, and Section 9 of the | ||||||
3 | Service Occupation Tax Act, such Acts being
hereinafter called | ||||||
4 | the "Tax Acts" and such aggregate of 2.2% or 3.8%, as
the case | ||||||
5 | may be, of moneys being hereinafter called the "Tax Act | ||||||
6 | Amount",
and (2) the amount transferred to the Build Illinois | ||||||
7 | Fund from the State
and Local Sales Tax Reform Fund shall be | ||||||
8 | less than the Annual Specified
Amount (as defined in Section 3 | ||||||
9 | of the Retailers' Occupation Tax Act), an
amount equal to the | ||||||
10 | difference shall be immediately paid into the Build
Illinois | ||||||
11 | Fund from other moneys received by the Department pursuant to | ||||||
12 | the
Tax Acts; and further provided, that if on the last | ||||||
13 | business day of any
month the sum of (1) the Tax Act Amount | ||||||
14 | required to be deposited into the
Build Illinois Bond Account | ||||||
15 | in the Build Illinois Fund during such month
and (2) the amount | ||||||
16 | transferred during such month to the Build Illinois Fund
from | ||||||
17 | the State and Local Sales Tax Reform Fund shall have been less | ||||||
18 | than
1/12 of the Annual Specified Amount, an amount equal to | ||||||
19 | the difference
shall be immediately paid into the Build | ||||||
20 | Illinois Fund from other moneys
received by the Department | ||||||
21 | pursuant to the Tax Acts; and,
further provided, that in no | ||||||
22 | event shall the payments required under the
preceding proviso | ||||||
23 | result in aggregate payments into the Build Illinois Fund
| ||||||
24 | pursuant to this clause (b) for any fiscal year in excess of | ||||||
25 | the greater
of (i) the Tax Act Amount or (ii) the Annual | ||||||
26 | Specified Amount for such
fiscal year; and, further provided, |
| |||||||
| |||||||
1 | that the amounts payable into the Build
Illinois Fund under | ||||||
2 | this clause (b) shall be payable only until such time
as the | ||||||
3 | aggregate amount on deposit under each trust
indenture securing | ||||||
4 | Bonds issued and outstanding pursuant to the Build
Illinois | ||||||
5 | Bond Act is sufficient, taking into account any future | ||||||
6 | investment
income, to fully provide, in accordance with such | ||||||
7 | indenture, for the
defeasance of or the payment of the | ||||||
8 | principal of, premium, if any, and
interest on the Bonds | ||||||
9 | secured by such indenture and on any Bonds expected
to be | ||||||
10 | issued thereafter and all fees and costs payable with respect | ||||||
11 | thereto,
all as certified by the Director of the
Bureau of the | ||||||
12 | Budget (now Governor's Office of Management and Budget). If
on | ||||||
13 | the last
business day of any month in which Bonds are | ||||||
14 | outstanding pursuant to the
Build Illinois Bond Act, the | ||||||
15 | aggregate of the moneys deposited
in the Build Illinois Bond | ||||||
16 | Account in the Build Illinois Fund in such month
shall be less | ||||||
17 | than the amount required to be transferred in such month from
| ||||||
18 | the Build Illinois Bond Account to the Build Illinois Bond | ||||||
19 | Retirement and
Interest Fund pursuant to Section 13 of the | ||||||
20 | Build Illinois Bond Act, an
amount equal to such deficiency | ||||||
21 | shall be immediately paid
from other moneys received by the | ||||||
22 | Department pursuant to the Tax Acts
to the Build Illinois Fund; | ||||||
23 | provided, however, that any amounts paid to the
Build Illinois | ||||||
24 | Fund in any fiscal year pursuant to this sentence shall be
| ||||||
25 | deemed to constitute payments pursuant to clause (b) of the | ||||||
26 | preceding
sentence and shall reduce the amount otherwise |
| |||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||
1 | payable for such fiscal year
pursuant to clause (b) of the | ||||||||||||||||||||||||||||||||||||||||||||||
2 | preceding sentence. The moneys received by
the Department | ||||||||||||||||||||||||||||||||||||||||||||||
3 | pursuant to this Act and required to be deposited into the
| ||||||||||||||||||||||||||||||||||||||||||||||
4 | Build Illinois Fund are subject to the pledge, claim and charge | ||||||||||||||||||||||||||||||||||||||||||||||
5 | set forth
in Section 12 of the Build Illinois Bond Act. | ||||||||||||||||||||||||||||||||||||||||||||||
6 | Subject to payment of amounts into the Build Illinois Fund | ||||||||||||||||||||||||||||||||||||||||||||||
7 | as provided in
the preceding paragraph or in any amendment | ||||||||||||||||||||||||||||||||||||||||||||||
8 | thereto hereafter enacted, the
following specified monthly | ||||||||||||||||||||||||||||||||||||||||||||||
9 | installment of the amount requested in the
certificate of the | ||||||||||||||||||||||||||||||||||||||||||||||
10 | Chairman of the Metropolitan Pier and Exposition
Authority | ||||||||||||||||||||||||||||||||||||||||||||||
11 | provided under Section 8.25f of the State Finance Act, but not | ||||||||||||||||||||||||||||||||||||||||||||||
12 | in
excess of the sums designated as "Total Deposit", shall be
| ||||||||||||||||||||||||||||||||||||||||||||||
13 | deposited in the aggregate from collections under Section 9 of | ||||||||||||||||||||||||||||||||||||||||||||||
14 | the Use Tax
Act, Section 9 of the Service Use Tax Act, Section | ||||||||||||||||||||||||||||||||||||||||||||||
15 | 9 of the Service
Occupation Tax Act, and Section 3 of the | ||||||||||||||||||||||||||||||||||||||||||||||
16 | Retailers' Occupation Tax Act into
the McCormick Place | ||||||||||||||||||||||||||||||||||||||||||||||
17 | Expansion Project Fund in the specified fiscal years. | ||||||||||||||||||||||||||||||||||||||||||||||
|
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15 | Beginning July 20, 1993 and in each month of each fiscal | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
16 | year thereafter,
one-eighth of the amount requested in the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
17 | certificate of the Chairman of
the Metropolitan Pier and | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
18 | Exposition Authority for that fiscal year, less
the amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
19 | deposited into the McCormick Place Expansion Project Fund by | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
20 | the
State Treasurer in the respective month under subsection | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
21 | (g) of Section 13
of the Metropolitan Pier and Exposition | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
22 | Authority Act, plus cumulative
deficiencies in the deposits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
23 | required under this Section for previous
months and years, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
24 | shall be deposited into the McCormick Place Expansion
Project | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
25 | Fund, until the full amount requested for the fiscal year, but | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
26 | not
in excess of the amount specified above as "Total Deposit", |
| |||||||
| |||||||
1 | has been deposited. | ||||||
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 July 1, 1993, the Department shall each | ||||||
6 | month pay into the Illinois
Tax Increment Fund 0.27% of 80% of | ||||||
7 | the net revenue realized for the preceding
month from the 6.25% | ||||||
8 | general rate on the selling price of tangible personal
| ||||||
9 | property. | ||||||
10 | Subject to payment of amounts into the Build Illinois Fund | ||||||
11 | and the
McCormick Place Expansion Project Fund pursuant to the | ||||||
12 | preceding paragraphs or in any
amendments thereto hereafter | ||||||
13 | enacted, beginning with the receipt of the first
report of | ||||||
14 | taxes paid by an eligible business and continuing for a 25-year
| ||||||
15 | period, the Department shall each month pay into the Energy | ||||||
16 | Infrastructure
Fund 80% of the net revenue realized from the | ||||||
17 | 6.25% general rate on the
selling price of Illinois-mined coal | ||||||
18 | that was sold to an eligible business.
For purposes of this | ||||||
19 | paragraph, the term "eligible business" means a new
electric | ||||||
20 | generating facility certified pursuant to Section 605-332 of | ||||||
21 | the
Department of Commerce and
Economic Opportunity Law of the | ||||||
22 | Civil Administrative
Code of Illinois. | ||||||
23 | Of the remainder of the moneys received by the Department | ||||||
24 | pursuant
to this Act, 75% thereof shall be paid into the State | ||||||
25 | Treasury and 25%
shall be reserved in a special account and | ||||||
26 | used only for the transfer to
the Common School Fund as part of |
| |||||||
| |||||||
1 | the monthly transfer from the General
Revenue Fund in | ||||||
2 | accordance with Section 8a of the State
Finance Act. | ||||||
3 | As soon as possible after the first day of each month, upon | ||||||
4 | certification
of the Department of Revenue, the Comptroller | ||||||
5 | shall order transferred and
the Treasurer shall transfer from | ||||||
6 | the General Revenue Fund to the Motor
Fuel Tax Fund an amount | ||||||
7 | equal to 1.7% of 80% of the net revenue realized
under this Act | ||||||
8 | for the second preceding month.
Beginning April 1, 2000, this | ||||||
9 | transfer is no longer required
and shall not be made. | ||||||
10 | Net revenue realized for a month shall be the revenue | ||||||
11 | collected
by the State pursuant to this Act, less the amount | ||||||
12 | paid out during that
month as refunds to taxpayers for | ||||||
13 | overpayment of liability. | ||||||
14 | For greater simplicity of administration, manufacturers, | ||||||
15 | importers
and wholesalers whose products are sold at retail in | ||||||
16 | Illinois by
numerous retailers, and who wish to do so, may | ||||||
17 | assume the responsibility
for accounting and paying to the | ||||||
18 | Department all tax accruing under this
Act with respect to such | ||||||
19 | sales, if the retailers who are affected do not
make written | ||||||
20 | objection to the Department to this arrangement. | ||||||
21 | (Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898, | ||||||
22 | eff. 5-27-10; 96-1012, eff. 7-7-10; 97-95, eff. 7-12-11; | ||||||
23 | 97-333, eff. 8-12-11.) | ||||||
24 | Section 30. The Retailers' Occupation Tax Act is amended by | ||||||
25 | changing Section 2a as follows: |
| |||||||
| |||||||
1 | (35 ILCS 120/2a) (from Ch. 120, par. 441a) | ||||||
2 | Sec. 2a. It is unlawful for any person to engage in the | ||||||
3 | business of
selling tangible personal property at retail in | ||||||
4 | this State without a
certificate of registration from the | ||||||
5 | Department. Application
for a certificate of registration | ||||||
6 | shall be made to the Department upon
forms furnished by it. | ||||||
7 | Each such application shall be signed and verified
and shall | ||||||
8 | state: (1) the name and social security number of the
| ||||||
9 | applicant; (2) the address of his principal place
of business; | ||||||
10 | (3) the address of the principal place of business from which
| ||||||
11 | he engages in the business of selling tangible personal | ||||||
12 | property at retail
in this State and the addresses of all other | ||||||
13 | places of business, if any
(enumerating such addresses, if any, | ||||||
14 | in a separate list attached to and
made a part of the | ||||||
15 | application), from which he engages in the business of
selling | ||||||
16 | tangible personal property at retail in this State; (4)
the
| ||||||
17 | name and address of the person or persons who will be | ||||||
18 | responsible for
filing returns and payment of taxes due under | ||||||
19 | this Act; (5) in the
case of
a corporation, the name, title, | ||||||
20 | and social security number of
each corporate officer; (6) in | ||||||
21 | the case of a limited liability
company, the
name, social | ||||||
22 | security number, and FEIN number of
each
manager and member; | ||||||
23 | and (7) such other information
as the Department may reasonably | ||||||
24 | require. The application shall contain
an acceptance of | ||||||
25 | responsibility signed by the person or persons who will be
|
| |||||||
| |||||||
1 | responsible for filing returns and payment of the taxes due | ||||||
2 | under this
Act. If the applicant will sell tangible personal | ||||||
3 | property at retail
through vending machines, his application to | ||||||
4 | register shall indicate the
number of vending machines to be so | ||||||
5 | operated. If requested by the Department at any time, that | ||||||
6 | person shall verify the total number of vending machines he or | ||||||
7 | she uses in his or her business of selling tangible personal | ||||||
8 | property at retail. | ||||||
9 | The Department may deny a certificate of registration to | ||||||
10 | any applicant
if the owner, any partner, any manager or member | ||||||
11 | of a limited liability
company, or a corporate officer of the | ||||||
12 | applicant, is or
has been the owner, a partner, a manager or | ||||||
13 | member of a limited
liability company, or a corporate officer, | ||||||
14 | of another retailer
that is in default for moneys due under | ||||||
15 | this Act or any other tax or fee Act administered by the | ||||||
16 | Department . | ||||||
17 | The Department may require an applicant for a certificate | ||||||
18 | of registration hereunder to, at
the time of filing such | ||||||
19 | application, furnish a bond from a surety company
authorized to | ||||||
20 | do business in the State of Illinois, or an irrevocable
bank | ||||||
21 | letter of credit or a bond signed by 2
personal sureties who | ||||||
22 | have filed, with the Department, sworn statements
disclosing | ||||||
23 | net assets equal to at least 3 times the amount of the bond to
| ||||||
24 | be required of such applicant, or a bond secured by an | ||||||
25 | assignment of a bank
account or certificate of deposit, stocks | ||||||
26 | or bonds, conditioned upon the
applicant paying to the State of |
| |||||||
| |||||||
1 | Illinois all moneys becoming due under
this Act and under any | ||||||
2 | other State tax law or municipal or county tax
ordinance or | ||||||
3 | resolution under which the certificate of registration that is
| ||||||
4 | issued to the applicant under this Act will permit the | ||||||
5 | applicant to engage
in business without registering separately | ||||||
6 | under such other law, ordinance
or resolution. In making a | ||||||
7 | determination as to whether to require a bond or other | ||||||
8 | security, the Department shall take into consideration whether | ||||||
9 | the owner, any partner, any manager or member of a limited | ||||||
10 | liability company, or a corporate officer of the applicant is | ||||||
11 | or has been the owner, a partner, a manager or member of a | ||||||
12 | limited liability company, or a corporate officer of another | ||||||
13 | retailer that is in default for moneys due under this Act or | ||||||
14 | any other tax or fee Act administered by the Department; and | ||||||
15 | whether the owner, any partner, any manager or member of a | ||||||
16 | limited liability company, or a corporate officer of the | ||||||
17 | applicant is or has been the owner, a partner, a manager or | ||||||
18 | member of a limited liability company, or a corporate officer | ||||||
19 | of another retailer whose certificate of registration has been | ||||||
20 | revoked within the previous 5 years under this Act or any other | ||||||
21 | tax or fee Act administered by the Department. If a bond or | ||||||
22 | other security is required, the Department shall fix the amount | ||||||
23 | of the bond or other security, taking into consideration the | ||||||
24 | amount of money expected to become due from the applicant under | ||||||
25 | this Act and under any other State tax law or municipal or | ||||||
26 | county tax ordinance or resolution under which the certificate |
| |||||||
| |||||||
1 | of registration that is issued to the applicant under this Act | ||||||
2 | will permit the applicant to engage in business without | ||||||
3 | registering separately under such other law, ordinance, or | ||||||
4 | resolution. The amount of security required by
the Department | ||||||
5 | shall be such as, in its opinion, will protect the State of
| ||||||
6 | Illinois against failure to pay the amount which may become due | ||||||
7 | from the
applicant under this Act and under any other State tax | ||||||
8 | law or municipal or
county tax ordinance or resolution under | ||||||
9 | which the certificate of
registration that is issued to the | ||||||
10 | applicant under this Act will permit the
applicant to engage in | ||||||
11 | business without registering separately under such
other law, | ||||||
12 | ordinance or resolution, but the amount of the security | ||||||
13 | required
by the Department shall not exceed three times the | ||||||
14 | amount of the
applicant's average monthly tax liability, or | ||||||
15 | $50,000.00, whichever amount
is lower. | ||||||
16 | No certificate of registration under this Act shall be | ||||||
17 | issued by the
Department until the applicant provides the | ||||||
18 | Department with satisfactory
security, if required, as herein | ||||||
19 | provided for. | ||||||
20 | Upon receipt of the application for certificate of | ||||||
21 | registration in
proper form, and upon approval by the | ||||||
22 | Department of the security furnished
by the applicant, if | ||||||
23 | required, the Department shall issue to such applicant a
| ||||||
24 | certificate of registration which shall permit the person to | ||||||
25 | whom it is
issued to engage in the business of selling tangible | ||||||
26 | personal property at
retail in this State. The certificate of |
| |||||||
| |||||||
1 | registration shall be
conspicuously displayed at the place of | ||||||
2 | business which the person so
registered states in his | ||||||
3 | application to be the principal place of business
from which he | ||||||
4 | engages in the business of selling tangible personal property
| ||||||
5 | at retail in this State. | ||||||
6 | No certificate of registration issued to a taxpayer who | ||||||
7 | files returns
required by this Act on a monthly basis shall be | ||||||
8 | valid after the expiration
of 5 years from the date of its | ||||||
9 | issuance or last renewal. The expiration
date of a | ||||||
10 | sub-certificate of registration shall be that of the | ||||||
11 | certificate
of registration to which the sub-certificate | ||||||
12 | relates. A certificate of
registration shall automatically be | ||||||
13 | renewed, subject to revocation as
provided by this Act, for an | ||||||
14 | additional 5 years from the date of its
expiration unless | ||||||
15 | otherwise notified by the Department as provided by this
| ||||||
16 | paragraph. Where a taxpayer to whom a certificate of | ||||||
17 | registration is
issued under this Act is in default to the | ||||||
18 | State of Illinois for delinquent
returns or for moneys due
| ||||||
19 | under this Act or any other State tax law or municipal or | ||||||
20 | county ordinance
administered or enforced by the Department, | ||||||
21 | the Department shall, not less
than 120 days before the | ||||||
22 | expiration date of such certificate of
registration, give | ||||||
23 | notice to the taxpayer to whom the certificate was
issued of | ||||||
24 | the account period of the delinquent returns, the amount of
| ||||||
25 | tax,
penalty and interest due and owing from the
taxpayer, and | ||||||
26 | that the certificate of registration shall not be
automatically |
| |||||||
| |||||||
1 | renewed upon its expiration date unless the taxpayer, on or
| ||||||
2 | before the date of expiration, has filed and paid the | ||||||
3 | delinquent returns or
paid the defaulted amount in full. A
| ||||||
4 | taxpayer to whom such a notice is issued shall be deemed an | ||||||
5 | applicant for
renewal. The Department shall promulgate | ||||||
6 | regulations establishing
procedures for taxpayers who file | ||||||
7 | returns on a monthly basis but desire and
qualify to change to | ||||||
8 | a quarterly or yearly filing basis and will no longer
be | ||||||
9 | subject to renewal under this Section, and for taxpayers who | ||||||
10 | file
returns on a yearly or quarterly basis but who desire or | ||||||
11 | are required to
change to a monthly filing basis and will be | ||||||
12 | subject to renewal under
this Section. | ||||||
13 | The Department may in its discretion approve renewal by an | ||||||
14 | applicant
who is in default if, at the time of application for | ||||||
15 | renewal, the applicant
files all of the delinquent returns or | ||||||
16 | pays to the Department such
percentage of the defaulted amount | ||||||
17 | as may be
determined by the Department and agrees in writing to | ||||||
18 | waive all limitations
upon the Department for collection of the | ||||||
19 | remaining defaulted amount to the
Department over a period not | ||||||
20 | to exceed 5 years from the date of renewal of
the certificate; | ||||||
21 | however, no renewal application submitted by an applicant
who | ||||||
22 | is in default shall be approved if the immediately preceding | ||||||
23 | renewal by
the applicant was conditioned upon the installment | ||||||
24 | payment
agreement described in this Section. The payment | ||||||
25 | agreement herein provided
for shall be in addition to and not | ||||||
26 | in lieu of the security that may be required by
this Section of |
| |||||||
| |||||||
1 | a taxpayer who is no longer considered a prior continuous
| ||||||
2 | compliance taxpayer. The execution of the payment agreement as | ||||||
3 | provided in
this Act shall not toll the accrual of interest at | ||||||
4 | the statutory rate. | ||||||
5 | The Department may suspend a certificate of registration if | ||||||
6 | the Department finds that the person to whom the certificate of | ||||||
7 | registration has been issued knowingly sold contraband | ||||||
8 | cigarettes. | ||||||
9 | A certificate of registration issued under this Act more | ||||||
10 | than 5 years
before the effective date of this amendatory Act | ||||||
11 | of 1989 shall expire and
be subject to the renewal provisions | ||||||
12 | of this Section on the next
anniversary of the date of issuance | ||||||
13 | of such certificate which occurs more
than 6 months after the | ||||||
14 | effective date of this amendatory Act of 1989. A
certificate of | ||||||
15 | registration issued less than 5 years before the effective
date | ||||||
16 | of this amendatory Act of 1989 shall expire and be subject to | ||||||
17 | the
renewal provisions of this Section on the 5th anniversary | ||||||
18 | of the issuance
of the certificate. | ||||||
19 | If the person so registered states that he operates other | ||||||
20 | places of
business from which he engages in the business of | ||||||
21 | selling tangible personal
property at retail in this State, the | ||||||
22 | Department shall furnish him with a
sub-certificate of | ||||||
23 | registration for each such place of business, and the
applicant | ||||||
24 | shall display the appropriate sub-certificate of registration | ||||||
25 | at
each such place of business. All sub-certificates of | ||||||
26 | registration shall
bear the same registration number as that |
| |||||||
| |||||||
1 | appearing upon the certificate of
registration to which such | ||||||
2 | sub-certificates relate. | ||||||
3 | If the applicant will sell tangible personal property at | ||||||
4 | retail through
vending machines, the Department shall furnish | ||||||
5 | him with a sub-certificate
of registration for each such | ||||||
6 | vending machine, and the applicant shall
display the | ||||||
7 | appropriate sub-certificate of registration on each such
| ||||||
8 | vending machine by attaching the sub-certificate of | ||||||
9 | registration to a
conspicuous part of such vending machine. If | ||||||
10 | a person who is registered to sell tangible personal property | ||||||
11 | at retail through vending machines adds an additional vending | ||||||
12 | machine or additional vending machines to the number of vending | ||||||
13 | machines he or she uses in his or her business of selling | ||||||
14 | tangible personal property at retail, he or she shall notify | ||||||
15 | the Department, on a form prescribed by the Department, to | ||||||
16 | request an additional sub-certificate or additional | ||||||
17 | sub-certificates of registration, as applicable. With each | ||||||
18 | such request, the applicant shall report the number of | ||||||
19 | sub-certificates of registration he or she is requesting as | ||||||
20 | well as the total number of vending machines from which he or | ||||||
21 | she makes retail sales. | ||||||
22 | Where the same person engages in 2 or more businesses of | ||||||
23 | selling
tangible personal property at retail in this State, | ||||||
24 | which businesses are
substantially different in character or | ||||||
25 | engaged in under different trade
names or engaged in under | ||||||
26 | other substantially dissimilar circumstances (so
that it is |
| |||||||
| |||||||
1 | more practicable, from an accounting, auditing or bookkeeping
| ||||||
2 | standpoint, for such businesses to be separately registered), | ||||||
3 | the
Department may require or permit such person (subject to | ||||||
4 | the same
requirements concerning the furnishing of security as | ||||||
5 | those that are
provided for hereinbefore in this Section as to | ||||||
6 | each application for a
certificate of registration) to apply | ||||||
7 | for and obtain a separate certificate
of registration for each | ||||||
8 | such business or for any of such businesses, under
a single | ||||||
9 | certificate of registration supplemented by related
| ||||||
10 | sub-certificates of registration. | ||||||
11 | Any person who is registered under the "Retailers' | ||||||
12 | Occupation Tax Act"
as of March 8, 1963, and who, during the | ||||||
13 | 3-year period immediately prior to
March 8, 1963, or during a | ||||||
14 | continuous 3-year period part of which passed
immediately | ||||||
15 | before and the remainder of which passes immediately after
| ||||||
16 | March 8, 1963, has been so registered continuously and who is | ||||||
17 | determined by
the Department not to have been either delinquent | ||||||
18 | or deficient in the
payment of tax liability during that period | ||||||
19 | under this Act or under any
other State tax law or municipal or | ||||||
20 | county tax ordinance or resolution
under which the certificate | ||||||
21 | of registration that is issued to the
registrant under this Act | ||||||
22 | will permit the registrant to engage in business
without | ||||||
23 | registering separately under such other law, ordinance or
| ||||||
24 | resolution, shall be considered to be a Prior Continuous | ||||||
25 | Compliance
taxpayer. Also any taxpayer who has, as verified by | ||||||
26 | the Department,
faithfully and continuously complied with the |
| |||||||
| |||||||
1 | condition of his bond or
other security under the provisions of | ||||||
2 | this Act for a period of 3
consecutive years shall be | ||||||
3 | considered to be a Prior Continuous Compliance
taxpayer. | ||||||
4 | Every Prior Continuous Compliance taxpayer shall be exempt | ||||||
5 | from all
requirements under this Act concerning the furnishing | ||||||
6 | of a bond or other security as a
condition precedent to his | ||||||
7 | being authorized to engage in the business of
selling tangible | ||||||
8 | personal property at retail in this State. This exemption
shall | ||||||
9 | continue for each such taxpayer until such time as he may be
| ||||||
10 | determined by the Department to be delinquent in the filing of | ||||||
11 | any returns,
or is determined by the Department (either through | ||||||
12 | the Department's
issuance of a final assessment which has | ||||||
13 | become final under the Act, or by
the taxpayer's filing of a | ||||||
14 | return which admits tax that is not paid to be
due) to be | ||||||
15 | delinquent or deficient in the paying of any tax under this Act
| ||||||
16 | or under any other State tax law or municipal or county tax | ||||||
17 | ordinance or
resolution under which the certificate of | ||||||
18 | registration that is issued to
the registrant under this Act | ||||||
19 | will permit the registrant to engage in
business without | ||||||
20 | registering separately under such other law, ordinance or
| ||||||
21 | resolution, at which time that taxpayer shall become subject to | ||||||
22 | all the
financial responsibility requirements of this Act and, | ||||||
23 | as a condition of
being allowed to continue to engage in the | ||||||
24 | business of selling tangible
personal property at retail, may | ||||||
25 | be required to post bond or other
acceptable security with the | ||||||
26 | Department covering liability which such
taxpayer may |
| |||||||
| |||||||
1 | thereafter incur. Any taxpayer who fails to pay an admitted or
| ||||||
2 | established liability under this Act may also be required to | ||||||
3 | post bond or
other acceptable security with this Department | ||||||
4 | guaranteeing the payment of
such admitted or established | ||||||
5 | liability. | ||||||
6 | No certificate of registration shall be issued to any | ||||||
7 | person who is in
default to the State of Illinois for moneys | ||||||
8 | due under this Act or under any
other State tax law or | ||||||
9 | municipal or county tax ordinance or resolution
under which the | ||||||
10 | certificate of registration that is issued to the applicant
| ||||||
11 | under this Act will permit the applicant to engage in business | ||||||
12 | without
registering separately under such other law, ordinance | ||||||
13 | or resolution. | ||||||
14 | Any person aggrieved by any decision of the Department | ||||||
15 | under this
Section may, within 20 days after notice of such | ||||||
16 | decision, protest and
request a hearing, whereupon the | ||||||
17 | Department shall give notice to such
person of the time and | ||||||
18 | place fixed for such hearing and shall hold a
hearing in | ||||||
19 | conformity with the provisions of this Act and then issue its
| ||||||
20 | final administrative decision in the matter to such person. In | ||||||
21 | the absence
of such a protest within 20 days, the Department's | ||||||
22 | decision shall become
final without any further determination | ||||||
23 | being made or notice given. | ||||||
24 | With respect to security other than bonds (upon which the | ||||||
25 | Department may
sue in the event of a forfeiture), if the | ||||||
26 | taxpayer fails to pay, when due,
any amount whose payment such |
| |||||||
| |||||||
1 | security guarantees, the Department shall,
after such | ||||||
2 | liability is admitted by the taxpayer or established by the
| ||||||
3 | Department through the issuance of a final assessment that has | ||||||
4 | become final
under the law, convert the security which that | ||||||
5 | taxpayer has furnished into
money for the State, after first | ||||||
6 | giving the taxpayer at least 10 days'
written notice, by | ||||||
7 | registered or certified mail, to pay the liability or
forfeit | ||||||
8 | such security to the Department. If the security consists of | ||||||
9 | stocks
or bonds or other securities which are listed on a | ||||||
10 | public exchange, the
Department shall sell such securities | ||||||
11 | through such public exchange. If
the security consists of an | ||||||
12 | irrevocable bank letter of credit, the
Department shall convert | ||||||
13 | the security in the manner provided for in the
Uniform | ||||||
14 | Commercial Code. If the security consists of a bank certificate | ||||||
15 | of
deposit, the Department shall convert the security into | ||||||
16 | money by demanding
and collecting the amount of such bank | ||||||
17 | certificate of deposit from the bank
which issued such | ||||||
18 | certificate. If the security consists of a type of stocks
or | ||||||
19 | other securities which are not listed on a public exchange, the
| ||||||
20 | Department shall sell such security to the highest and best | ||||||
21 | bidder after
giving at least 10 days' notice of the date, time | ||||||
22 | and place of the intended
sale by publication in the "State | ||||||
23 | Official Newspaper". If the Department
realizes more than the | ||||||
24 | amount of such liability from the security, plus the
expenses | ||||||
25 | incurred by the Department in converting the security into | ||||||
26 | money,
the Department shall pay such excess to the taxpayer who |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | furnished such
security, and the balance shall be paid into the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | State Treasury. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | The Department shall discharge any surety and shall release | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | and return
any security deposited, assigned, pledged or | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | otherwise provided to it by
a taxpayer under this Section | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | within 30 days after: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | (1) such taxpayer becomes a Prior Continuous | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | Compliance taxpayer; or | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | (2) such taxpayer has ceased to collect receipts on | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10 | which he is required
to remit tax to the Department, has | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11 | filed a final tax return, and has paid
to the Department an | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12 | amount sufficient to discharge his remaining tax
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
13 | liability, as determined by the Department, under this Act | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
14 | and under every
other State tax law or municipal or county | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
15 | tax ordinance or resolution
under which the certificate of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
16 | registration issued under this Act permits
the registrant | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
17 | to engage in business without registering separately under
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
18 | such other law, ordinance or resolution. The Department | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
19 | shall make a final
determination of the taxpayer's | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
20 | outstanding tax liability as expeditiously
as possible | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
21 | after his final tax return has been filed; if the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
22 | Department
cannot make such final determination within 45 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
23 | days after receiving the
final tax return, within such | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
24 | period it shall so notify the taxpayer,
stating its reasons | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
25 | therefor. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
26 | (Source: P.A. 96-1355, eff. 7-28-10; 97-335, eff. 1-1-12.)
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