99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3539

 

Introduced , by Rep. Jeanne M Ives

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/9  from Ch. 120, par. 439.9
35 ILCS 110/9  from Ch. 120, par. 439.39
35 ILCS 115/9  from Ch. 120, par. 439.109
35 ILCS 120/3  from Ch. 120, par. 442
625 ILCS 5/3-1001  from Ch. 95 1/2, par. 3-1001
30 ILCS 105/5.866 new

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and the Illinois Vehicle Code. Provides that, beginning on July 1, 2015, the Department shall pay into the Use and Occupation Tax Refund Fund 0.1% of the net revenue realized for the preceding month from the taxes imposed under those Acts. Provides that moneys in the Fund shall be expended exclusively for the purpose of paying refunds resulting from overpayment of tax liability under those Acts. Amends the State Finance Act to create the Use and Occupation Tax Refund Fund. Effective immediately.


LRB099 09668 HLH 29877 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3539LRB099 09668 HLH 29877 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section 9
5as follows:
 
6    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
7    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
8and trailers that are required to be registered with an agency
9of this State, each retailer required or authorized to collect
10the tax imposed by this Act shall pay to the Department the
11amount of such tax (except as otherwise provided) at the time
12when he is required to file his return for the period during
13which such tax was collected, less a discount of 2.1% prior to
14January 1, 1990, and 1.75% on and after January 1, 1990, or $5
15per calendar year, whichever is greater, which is allowed to
16reimburse the retailer for expenses incurred in collecting the
17tax, keeping records, preparing and filing returns, remitting
18the tax and supplying data to the Department on request. In the
19case of retailers who report and pay the tax on a transaction
20by transaction basis, as provided in this Section, such
21discount shall be taken with each such tax remittance instead
22of when such retailer files his periodic return. The Department
23may disallow the discount for retailers whose certificate of

 

 

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1registration is revoked at the time the return is filed, but
2only if the Department's decision to revoke the certificate of
3registration has become final. A retailer need not remit that
4part of any tax collected by him to the extent that he is
5required to remit and does remit the tax imposed by the
6Retailers' Occupation Tax Act, with respect to the sale of the
7same property.
8    Where such tangible personal property is sold under a
9conditional sales contract, or under any other form of sale
10wherein the payment of the principal sum, or a part thereof, is
11extended beyond the close of the period for which the return is
12filed, the retailer, in collecting the tax (except as to motor
13vehicles, watercraft, aircraft, and trailers that are required
14to be registered with an agency of this State), may collect for
15each tax return period, only the tax applicable to that part of
16the selling price actually received during such tax return
17period.
18    Except as provided in this Section, on or before the
19twentieth day of each calendar month, such retailer shall file
20a return for the preceding calendar month. Such return shall be
21filed on forms prescribed by the Department and shall furnish
22such information as the Department may reasonably require.
23    The Department may require returns to be filed on a
24quarterly basis. If so required, a return for each calendar
25quarter shall be filed on or before the twentieth day of the
26calendar month following the end of such calendar quarter. The

 

 

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1taxpayer shall also file a return with the Department for each
2of the first two months of each calendar quarter, on or before
3the twentieth day of the following calendar month, stating:
4        1. The name of the seller;
5        2. The address of the principal place of business from
6    which he engages in the business of selling tangible
7    personal property at retail in this State;
8        3. The total amount of taxable receipts received by him
9    during the preceding calendar month from sales of tangible
10    personal property by him during such preceding calendar
11    month, including receipts from charge and time sales, but
12    less all deductions allowed by law;
13        4. The amount of credit provided in Section 2d of this
14    Act;
15        5. The amount of tax due;
16        5-5. The signature of the taxpayer; and
17        6. Such other reasonable information as the Department
18    may require.
19    If a taxpayer fails to sign a return within 30 days after
20the proper notice and demand for signature by the Department,
21the return shall be considered valid and any amount shown to be
22due on the return shall be deemed assessed.
23    Beginning October 1, 1993, a taxpayer who has an average
24monthly tax liability of $150,000 or more shall make all
25payments required by rules of the Department by electronic
26funds transfer. Beginning October 1, 1994, a taxpayer who has

 

 

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

 

 

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1    Any taxpayer not required to make payments by electronic
2funds transfer may make payments by electronic funds transfer
3with the permission of the Department.
4    All taxpayers required to make payment by electronic funds
5transfer and any taxpayers authorized to voluntarily make
6payments by electronic funds transfer shall make those payments
7in the manner authorized by the Department.
8    The Department shall adopt such rules as are necessary to
9effectuate a program of electronic funds transfer and the
10requirements of this Section.
11    Before October 1, 2000, if the taxpayer's average monthly
12tax liability to the Department under this Act, the Retailers'
13Occupation Tax Act, the Service Occupation Tax Act, the Service
14Use Tax Act was $10,000 or more during the preceding 4 complete
15calendar quarters, he shall file a return with the Department
16each month by the 20th day of the month next following the
17month during which such tax liability is incurred and shall
18make payments to the Department on or before the 7th, 15th,
1922nd and last day of the month during which such liability is
20incurred. On and after October 1, 2000, if the taxpayer's
21average monthly tax liability to the Department under this Act,
22the Retailers' Occupation Tax Act, the Service Occupation Tax
23Act, and the Service Use Tax Act was $20,000 or more during the
24preceding 4 complete calendar quarters, he shall file a return
25with the Department each month by the 20th day of the month
26next following the month during which such tax liability is

 

 

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

 

 

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1such tax liability is incurred begins on or after January 1,
21989, and prior to January 1, 1996, each payment shall be in an
3amount equal to 22.5% of the taxpayer's actual liability for
4the month or 25% of the taxpayer's liability for the same
5calendar month of the preceding year or 100% of the taxpayer's
6actual liability for the quarter monthly reporting period. The
7amount of such quarter monthly payments shall be credited
8against the final tax liability of the taxpayer's return for
9that month. Before October 1, 2000, once applicable, the
10requirement of the making of quarter monthly payments to the
11Department shall continue until such taxpayer's average
12monthly liability to the Department during the preceding 4
13complete calendar quarters (excluding the month of highest
14liability and the month of lowest liability) is less than
15$9,000, or until such taxpayer's average monthly liability to
16the Department as computed for each calendar quarter of the 4
17preceding complete calendar quarter period is less than
18$10,000. However, if a taxpayer can show the Department that a
19substantial change in the taxpayer's business has occurred
20which causes the taxpayer to anticipate that his average
21monthly tax liability for the reasonably foreseeable future
22will fall below the $10,000 threshold stated above, then such
23taxpayer may petition the Department for change in such
24taxpayer's reporting status. On and after October 1, 2000, once
25applicable, the requirement of the making of quarter monthly
26payments to the Department shall continue until such taxpayer's

 

 

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

 

 

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1    If any such payment provided for in this Section exceeds
2the taxpayer's liabilities under this Act, the Retailers'
3Occupation Tax Act, the Service Occupation Tax Act and the
4Service Use Tax Act, as shown by an original monthly return,
5the Department shall issue to the taxpayer a credit memorandum
6no later than 30 days after the date of payment, which
7memorandum may be submitted by the taxpayer to the Department
8in payment of tax liability subsequently to be remitted by the
9taxpayer to the Department or be assigned by the taxpayer to a
10similar taxpayer under this Act, the Retailers' Occupation Tax
11Act, the Service Occupation Tax Act or the Service Use Tax Act,
12in accordance with reasonable rules and regulations to be
13prescribed by the Department, except that if such excess
14payment is shown on an original monthly return and is made
15after December 31, 1986, no credit memorandum shall be issued,
16unless requested by the taxpayer. If no such request is made,
17the taxpayer may credit such excess payment against tax
18liability subsequently to be remitted by the taxpayer to the
19Department under this Act, the Retailers' Occupation Tax Act,
20the Service Occupation Tax Act or the Service Use Tax Act, in
21accordance with reasonable rules and regulations prescribed by
22the Department. If the Department subsequently determines that
23all or any part of the credit taken was not actually due to the
24taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
25be reduced by 2.1% or 1.75% of the difference between the
26credit taken and that actually due, and the taxpayer shall be

 

 

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1liable for penalties and interest on such difference.
2    If the retailer is otherwise required to file a monthly
3return and if the retailer's average monthly tax liability to
4the Department does not exceed $200, the Department may
5authorize his returns to be filed on a quarter annual basis,
6with the return for January, February, and March of a given
7year being due by April 20 of such year; with the return for
8April, May and June of a given year being due by July 20 of such
9year; with the return for July, August and September of a given
10year being due by October 20 of such year, and with the return
11for October, November and December of a given year being due by
12January 20 of the following year.
13    If the retailer is otherwise required to file a monthly or
14quarterly return and if the retailer's average monthly tax
15liability to the Department does not exceed $50, the Department
16may authorize his returns to be filed on an annual basis, with
17the return for a given year being due by January 20 of the
18following year.
19    Such quarter annual and annual returns, as to form and
20substance, shall be subject to the same requirements as monthly
21returns.
22    Notwithstanding any other provision in this Act concerning
23the time within which a retailer may file his return, in the
24case of any retailer who ceases to engage in a kind of business
25which makes him responsible for filing returns under this Act,
26such retailer shall file a final return under this Act with the

 

 

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1Department not more than one month after discontinuing such
2business.
3    In addition, with respect to motor vehicles, watercraft,
4aircraft, and trailers that are required to be registered with
5an agency of this State, every retailer selling this kind of
6tangible personal property shall file, with the Department,
7upon a form to be prescribed and supplied by the Department, a
8separate return for each such item of tangible personal
9property which the retailer sells, except that if, in the same
10transaction, (i) a retailer of aircraft, watercraft, motor
11vehicles or trailers transfers more than one aircraft,
12watercraft, motor vehicle or trailer to another aircraft,
13watercraft, motor vehicle or trailer retailer for the purpose
14of resale or (ii) a retailer of aircraft, watercraft, motor
15vehicles, or trailers transfers more than one aircraft,
16watercraft, motor vehicle, or trailer to a purchaser for use as
17a qualifying rolling stock as provided in Section 3-55 of this
18Act, then that seller may report the transfer of all the
19aircraft, watercraft, motor vehicles or trailers involved in
20that transaction to the Department on the same uniform
21invoice-transaction reporting return form. For purposes of
22this Section, "watercraft" means a Class 2, Class 3, or Class 4
23watercraft as defined in Section 3-2 of the Boat Registration
24and Safety Act, a personal watercraft, or any boat equipped
25with an inboard motor.
26    The transaction reporting return in the case of motor

 

 

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

 

 

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

 

 

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1Department shall issue, in the purchaser's name, a tax receipt
2(or a certificate of exemption if the Department is satisfied
3that the particular sale is tax exempt) which such purchaser
4may submit to the agency with which, or State officer with
5whom, he must title or register the tangible personal property
6that is involved (if titling or registration is required) in
7support of such purchaser's application for an Illinois
8certificate or other evidence of title or registration to such
9tangible personal property.
10    No retailer's failure or refusal to remit tax under this
11Act precludes a user, who has paid the proper tax to the
12retailer, from obtaining his certificate of title or other
13evidence of title or registration (if titling or registration
14is required) upon satisfying the Department that such user has
15paid the proper tax (if tax is due) to the retailer. The
16Department shall adopt appropriate rules to carry out the
17mandate of this paragraph.
18    If the user who would otherwise pay tax to the retailer
19wants the transaction reporting return filed and the payment of
20tax or proof of exemption made to the Department before the
21retailer is willing to take these actions and such user has not
22paid the tax to the retailer, such user may certify to the fact
23of such delay by the retailer, and may (upon the Department
24being satisfied of the truth of such certification) transmit
25the information required by the transaction reporting return
26and the remittance for tax or proof of exemption directly to

 

 

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1the Department and obtain his tax receipt or exemption
2determination, in which event the transaction reporting return
3and tax remittance (if a tax payment was required) shall be
4credited by the Department to the proper retailer's account
5with the Department, but without the 2.1% or 1.75% discount
6provided for in this Section being allowed. When the user pays
7the tax directly to the Department, he shall pay the tax in the
8same amount and in the same form in which it would be remitted
9if the tax had been remitted to the Department by the retailer.
10    Where a retailer collects the tax with respect to the
11selling price of tangible personal property which he sells and
12the purchaser thereafter returns such tangible personal
13property and the retailer refunds the selling price thereof to
14the purchaser, such retailer shall also refund, to the
15purchaser, the tax so collected from the purchaser. When filing
16his return for the period in which he refunds such tax to the
17purchaser, the retailer may deduct the amount of the tax so
18refunded by him to the purchaser from any other use tax which
19such retailer may be required to pay or remit to the
20Department, as shown by such return, if the amount of the tax
21to be deducted was previously remitted to the Department by
22such retailer. If the retailer has not previously remitted the
23amount of such tax to the Department, he is entitled to no
24deduction under this Act upon refunding such tax to the
25purchaser.
26    Any retailer filing a return under this Section shall also

 

 

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1include (for the purpose of paying tax thereon) the total tax
2covered by such return upon the selling price of tangible
3personal property purchased by him at retail from a retailer,
4but as to which the tax imposed by this Act was not collected
5from the retailer filing such return, and such retailer shall
6remit the amount of such tax to the Department when filing such
7return.
8    If experience indicates such action to be practicable, the
9Department may prescribe and furnish a combination or joint
10return which will enable retailers, who are required to file
11returns hereunder and also under the Retailers' Occupation Tax
12Act, to furnish all the return information required by both
13Acts on the one form.
14    Where the retailer has more than one business registered
15with the Department under separate registration under this Act,
16such retailer may not file each return that is due as a single
17return covering all such registered businesses, but shall file
18separate returns for each such registered business.
19    Beginning January 1, 1990, each month the Department shall
20pay into the State and Local Sales Tax Reform Fund, a special
21fund in the State Treasury which is hereby created, the net
22revenue realized for the preceding month from the 1% tax on
23sales of food for human consumption which is to be consumed off
24the premises where it is sold (other than alcoholic beverages,
25soft drinks and food which has been prepared for immediate
26consumption) and prescription and nonprescription medicines,

 

 

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1drugs, medical appliances and insulin, urine testing
2materials, syringes and needles used by diabetics.
3    Beginning January 1, 1990, each month the Department shall
4pay into the County and Mass Transit District Fund 4% of the
5net revenue realized for the preceding month from the 6.25%
6general rate on the selling price of tangible personal property
7which is purchased outside Illinois at retail from a retailer
8and which is titled or registered by an agency of this State's
9government.
10    Beginning January 1, 1990, each month the Department shall
11pay into the State and Local Sales Tax Reform Fund, a special
12fund in the State Treasury, 20% of the net revenue realized for
13the preceding month from the 6.25% general rate on the selling
14price of tangible personal property, other than tangible
15personal property which is purchased outside Illinois at retail
16from a retailer and which is titled or registered by an agency
17of this State's government.
18    Beginning August 1, 2000, each month the Department shall
19pay into the State and Local Sales Tax Reform Fund 100% of the
20net revenue realized for the preceding month from the 1.25%
21rate on the selling price of motor fuel and gasohol. Beginning
22September 1, 2010, each month the Department shall pay into the
23State and Local Sales Tax Reform Fund 100% of the net revenue
24realized for the preceding month from the 1.25% rate on the
25selling price of sales tax holiday items.
26    Beginning January 1, 1990, each month the Department shall

 

 

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1pay into the Local Government Tax Fund 16% of the net revenue
2realized for the preceding month from the 6.25% general rate on
3the selling price of tangible personal property which is
4purchased outside Illinois at retail from a retailer and which
5is titled or registered by an agency of this State's
6government.
7    Beginning October 1, 2009, each month the Department shall
8pay into the Capital Projects Fund an amount that is equal to
9an amount estimated by the Department to represent 80% of the
10net revenue realized for the preceding month from the sale of
11candy, grooming and hygiene products, and soft drinks that had
12been taxed at a rate of 1% prior to September 1, 2009 but that
13are now taxed at 6.25%.
14    Beginning July 1, 2011, each month the Department shall pay
15into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
16realized for the preceding month from the 6.25% general rate on
17the selling price of sorbents used in Illinois in the process
18of sorbent injection as used to comply with the Environmental
19Protection Act or the federal Clean Air Act, but the total
20payment into the Clean Air Act (CAA) Permit Fund under this Act
21and the Retailers' Occupation Tax Act shall not exceed
22$2,000,000 in any fiscal year.
23    Beginning July 1, 2013, each month the Department shall pay
24into the Underground Storage Tank Fund from the proceeds
25collected under this Act, the Service Use Tax Act, the Service
26Occupation Tax Act, and the Retailers' Occupation Tax Act an

 

 

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1amount equal to the average monthly deficit in the Underground
2Storage Tank Fund during the prior year, as certified annually
3by the Illinois Environmental Protection Agency, but the total
4payment into the Underground Storage Tank Fund under this Act,
5the Service Use Tax Act, the Service Occupation Tax Act, and
6the Retailers' Occupation Tax Act shall not exceed $18,000,000
7in any State fiscal year. As used in this paragraph, the
8"average monthly deficit" shall be equal to the difference
9between the average monthly claims for payment by the fund and
10the average monthly revenues deposited into the fund, excluding
11payments made pursuant to this paragraph.
12    Beginning July 1, 2015, each month the Department shall pay
13into the Use and Occupation Tax Refund Fund, a special fund in
14the State Treasury, 0.1% of the net revenue realized for the
15preceding month from the 6.25% general rate on the selling
16price of tangible personal property. Moneys in the Use and
17Occupation Tax Refund Fund shall be expended exclusively for
18the purpose of paying refunds resulting from overpayment of tax
19liability under this Act, the Service Use Tax Act, the Service
20Occupation Tax Act, the Retailers' Occupation Tax Act, and
21Section 3-1001 of the Illinois Vehicle Code. The Director shall
22order payment of refunds resulting from overpayment of tax
23liability under those Acts from the Use and Occupation Tax
24Refund Fund only to the extent that amounts deposited into the
25Fund pursuant to this paragraph have been deposited and
26retained in the Fund. When making payments from the Use and

 

 

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1Occupation Tax Refund Fund, the Director shall give first
2priority to refunds of overpayments of the vehicle use tax
3under Section 3-1001 of the Illinois Vehicle Code; the Director
4shall give second priority to refunds of overpayments by
5retailers with inactive certificates of registration who have
6ceased conducting active retail operations in the State; the
7Director shall give third priority to all other refunds. This
8amendatory Act of the 99th General Assembly shall constitute an
9irrevocable and continuing appropriation from the Use and
10Occupation Tax Refund Fund for the purpose of paying refunds
11upon the order of the Director in accordance with the
12provisions of this Section.
13    Of the remainder of the moneys received by the Department
14pursuant to this Act, (a) 1.75% thereof shall be paid into the
15Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
16and after July 1, 1989, 3.8% thereof shall be paid into the
17Build Illinois Fund; provided, however, that if in any fiscal
18year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
19may be, of the moneys received by the Department and required
20to be paid into the Build Illinois Fund pursuant to Section 3
21of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
22Act, Section 9 of the Service Use Tax Act, and Section 9 of the
23Service Occupation Tax Act, such Acts being hereinafter called
24the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
25may be, of moneys being hereinafter called the "Tax Act
26Amount", and (2) the amount transferred to the Build Illinois

 

 

HB3539- 21 -LRB099 09668 HLH 29877 b

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

 

 

HB3539- 22 -LRB099 09668 HLH 29877 b

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

 

 

HB3539- 23 -LRB099 09668 HLH 29877 b

1as provided in the preceding paragraph or in any amendment
2thereto hereafter enacted, the following specified monthly
3installment of the amount requested in the certificate of the
4Chairman of the Metropolitan Pier and Exposition Authority
5provided under Section 8.25f of the State Finance Act, but not
6in excess of the sums designated as "Total Deposit", shall be
7deposited in the aggregate from collections under Section 9 of
8the Use Tax Act, Section 9 of the Service Use Tax Act, Section
99 of the Service Occupation Tax Act, and Section 3 of the
10Retailers' Occupation Tax Act into the McCormick Place
11Expansion Project Fund in the specified fiscal years.
12Fiscal YearTotal Deposit
131993         $0
141994 53,000,000
151995 58,000,000
161996 61,000,000
171997 64,000,000
181998 68,000,000
191999 71,000,000
202000 75,000,000
212001 80,000,000
222002 93,000,000
232003 99,000,000
242004103,000,000
252005108,000,000
262006113,000,000

 

 

HB3539- 24 -LRB099 09668 HLH 29877 b

12007119,000,000
22008126,000,000
32009132,000,000
42010139,000,000
52011146,000,000
62012153,000,000
72013161,000,000
82014170,000,000
92015179,000,000
102016189,000,000
112017199,000,000
122018210,000,000
132019221,000,000
142020233,000,000
152021246,000,000
162022260,000,000
172023275,000,000
182024 275,000,000
192025 275,000,000
202026 279,000,000
212027 292,000,000
222028 307,000,000
232029 322,000,000
242030 338,000,000
252031 350,000,000
262032 350,000,000

 

 

HB3539- 25 -LRB099 09668 HLH 29877 b

1and
2each fiscal year
3thereafter that bonds
4are outstanding under
5Section 13.2 of the
6Metropolitan Pier and
7Exposition Authority Act,
8but not after fiscal year 2060.
9    Beginning July 20, 1993 and in each month of each fiscal
10year thereafter, one-eighth of the amount requested in the
11certificate of the Chairman of the Metropolitan Pier and
12Exposition Authority for that fiscal year, less the amount
13deposited into the McCormick Place Expansion Project Fund by
14the State Treasurer in the respective month under subsection
15(g) of Section 13 of the Metropolitan Pier and Exposition
16Authority Act, plus cumulative deficiencies in the deposits
17required under this Section for previous months and years,
18shall be deposited into the McCormick Place Expansion Project
19Fund, until the full amount requested for the fiscal year, but
20not in excess of the amount specified above as "Total Deposit",
21has been deposited.
22    Subject to payment of amounts into the Build Illinois Fund
23and the McCormick Place Expansion Project Fund pursuant to the
24preceding paragraphs or in any amendments thereto hereafter
25enacted, beginning July 1, 1993 and ending on September 30,
262013, the Department shall each month pay into the Illinois Tax

 

 

HB3539- 26 -LRB099 09668 HLH 29877 b

1Increment Fund 0.27% of 80% of the net revenue realized for the
2preceding month from the 6.25% general rate on the selling
3price of tangible personal property.
4    Subject to payment of amounts into the Build Illinois Fund
5and the McCormick Place Expansion Project Fund pursuant to the
6preceding paragraphs or in any amendments thereto hereafter
7enacted, beginning with the receipt of the first report of
8taxes paid by an eligible business and continuing for a 25-year
9period, the Department shall each month pay into the Energy
10Infrastructure Fund 80% of the net revenue realized from the
116.25% general rate on the selling price of Illinois-mined coal
12that was sold to an eligible business. For purposes of this
13paragraph, the term "eligible business" means a new electric
14generating facility certified pursuant to Section 605-332 of
15the Department of Commerce and Economic Opportunity Law of the
16Civil Administrative Code of Illinois.
17    Subject to payment of amounts into the Build Illinois Fund,
18the McCormick Place Expansion Project Fund, the Illinois Tax
19Increment Fund, and the Energy Infrastructure Fund pursuant to
20the preceding paragraphs or in any amendments to this Section
21hereafter enacted, beginning on the first day of the first
22calendar month to occur on or after the effective date of this
23amendatory Act of the 98th General Assembly, each month, from
24the collections made under Section 9 of the Use Tax Act,
25Section 9 of the Service Use Tax Act, Section 9 of the Service
26Occupation Tax Act, and Section 3 of the Retailers' Occupation

 

 

HB3539- 27 -LRB099 09668 HLH 29877 b

1Tax Act, the Department shall pay into the Tax Compliance and
2Administration Fund, to be used, subject to appropriation, to
3fund additional auditors and compliance personnel at the
4Department of Revenue, an amount equal to 1/12 of 5% of 80% of
5the cash receipts collected during the preceding fiscal year by
6the Audit Bureau of the Department under the Use Tax Act, the
7Service Use Tax Act, the Service Occupation Tax Act, the
8Retailers' Occupation Tax Act, and associated local occupation
9and use taxes administered by the Department.
10    Of the remainder of the moneys received by the Department
11pursuant to this Act, 75% thereof shall be paid into the State
12Treasury and 25% shall be reserved in a special account and
13used only for the transfer to the Common School Fund as part of
14the monthly transfer from the General Revenue Fund in
15accordance with Section 8a of the State Finance Act.
16    As soon as possible after the first day of each month, upon
17certification of the Department of Revenue, the Comptroller
18shall order transferred and the Treasurer shall transfer from
19the General Revenue Fund to the Motor Fuel Tax Fund an amount
20equal to 1.7% of 80% of the net revenue realized under this Act
21for the second preceding month. Beginning April 1, 2000, this
22transfer is no longer required and shall not be made.
23    Net revenue realized for a month shall be the revenue
24collected by the State pursuant to this Act, less the amount
25paid out during that month as refunds to taxpayers for
26overpayment of liability.

 

 

HB3539- 28 -LRB099 09668 HLH 29877 b

1    For greater simplicity of administration, manufacturers,
2importers and wholesalers whose products are sold at retail in
3Illinois by numerous retailers, and who wish to do so, may
4assume the responsibility for accounting and paying to the
5Department all tax accruing under this Act with respect to such
6sales, if the retailers who are affected do not make written
7objection to the Department to this arrangement.
8(Source: P.A. 97-95, eff. 7-12-11; 97-333, eff. 8-12-11; 98-24,
9eff. 6-19-13; 98-109, eff. 7-25-13; 98-496, eff. 1-1-14;
1098-756, eff. 7-16-14; 98-1098, eff. 8-26-14.)
 
11    Section 10. The Service Use Tax Act is amended by changing
12Section 9 as follows:
 
13    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
14    Sec. 9. Each serviceman required or authorized to collect
15the tax herein imposed shall pay to the Department the amount
16of such tax (except as otherwise provided) at the time when he
17is required to file his return for the period during which such
18tax was collected, less a discount of 2.1% prior to January 1,
191990 and 1.75% on and after January 1, 1990, or $5 per calendar
20year, whichever is greater, which is allowed to reimburse the
21serviceman for expenses incurred in collecting the tax, keeping
22records, preparing and filing returns, remitting the tax and
23supplying data to the Department on request. The Department may
24disallow the discount for servicemen whose certificate of

 

 

HB3539- 29 -LRB099 09668 HLH 29877 b

1registration is revoked at the time the return is filed, but
2only if the Department's decision to revoke the certificate of
3registration has become final. A serviceman need not remit that
4part of any tax collected by him to the extent that he is
5required to pay and does pay the tax imposed by the Service
6Occupation Tax Act with respect to his sale of service
7involving the incidental transfer by him of the same property.
8    Except as provided hereinafter in this Section, on or
9before the twentieth day of each calendar month, such
10serviceman shall file a return for the preceding calendar month
11in accordance with reasonable Rules and Regulations to be
12promulgated by the Department. Such return shall be filed on a
13form prescribed by the Department and shall contain such
14information as the Department may reasonably require.
15    The Department may require returns to be filed on a
16quarterly basis. If so required, a return for each calendar
17quarter shall be filed on or before the twentieth day of the
18calendar month following the end of such calendar quarter. The
19taxpayer shall also file a return with the Department for each
20of the first two months of each calendar quarter, on or before
21the twentieth day of the following calendar month, stating:
22        1. The name of the seller;
23        2. The address of the principal place of business from
24    which he engages in business as a serviceman in this State;
25        3. The total amount of taxable receipts received by him
26    during the preceding calendar month, including receipts

 

 

HB3539- 30 -LRB099 09668 HLH 29877 b

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

 

 

HB3539- 31 -LRB099 09668 HLH 29877 b

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

 

 

HB3539- 32 -LRB099 09668 HLH 29877 b

1    If the serviceman is otherwise required to file a monthly
2return and if the serviceman's average monthly tax liability to
3the Department does not exceed $200, the Department may
4authorize his returns to be filed on a quarter annual basis,
5with the return for January, February and March of a given year
6being due by April 20 of such year; with the return for April,
7May and June of a given year being due by July 20 of such year;
8with the return for July, August and September of a given year
9being due by October 20 of such year, and with the return for
10October, November and December of a given year being due by
11January 20 of the following year.
12    If the serviceman is otherwise required to file a monthly
13or quarterly return and if the serviceman's average monthly tax
14liability to the Department does not exceed $50, the Department
15may authorize his returns to be filed on an annual basis, with
16the return for a given year being due by January 20 of the
17following year.
18    Such quarter annual and annual returns, as to form and
19substance, shall be subject to the same requirements as monthly
20returns.
21    Notwithstanding any other provision in this Act concerning
22the time within which a serviceman may file his return, in the
23case of any serviceman who ceases to engage in a kind of
24business which makes him responsible for filing returns under
25this Act, such serviceman shall file a final return under this
26Act with the Department not more than 1 month after

 

 

HB3539- 33 -LRB099 09668 HLH 29877 b

1discontinuing such business.
2    Where a serviceman collects the tax with respect to the
3selling price of property which he sells and the purchaser
4thereafter returns such property and the serviceman refunds the
5selling price thereof to the purchaser, such serviceman shall
6also refund, to the purchaser, the tax so collected from the
7purchaser. When filing his return for the period in which he
8refunds such tax to the purchaser, the serviceman may deduct
9the amount of the tax so refunded by him to the purchaser from
10any other Service Use Tax, Service Occupation Tax, retailers'
11occupation tax or use tax which such serviceman may be required
12to pay or remit to the Department, as shown by such return,
13provided that the amount of the tax to be deducted shall
14previously have been remitted to the Department by such
15serviceman. If the serviceman shall not previously have
16remitted the amount of such tax to the Department, he shall be
17entitled to no deduction hereunder upon refunding such tax to
18the purchaser.
19    Any serviceman filing a return hereunder shall also include
20the total tax upon the selling price of tangible personal
21property purchased for use by him as an incident to a sale of
22service, and such serviceman shall remit the amount of such tax
23to the Department when filing such return.
24    If experience indicates such action to be practicable, the
25Department may prescribe and furnish a combination or joint
26return which will enable servicemen, who are required to file

 

 

HB3539- 34 -LRB099 09668 HLH 29877 b

1returns hereunder and also under the Service Occupation Tax
2Act, to furnish all the return information required by both
3Acts on the one form.
4    Where the serviceman has more than one business registered
5with the Department under separate registration hereunder,
6such serviceman shall not file each return that is due as a
7single return covering all such registered businesses, but
8shall file separate returns for each such registered business.
9    Beginning January 1, 1990, each month the Department shall
10pay into the State and Local Tax Reform Fund, a special fund in
11the State Treasury, the net revenue realized for the preceding
12month from the 1% tax on sales of food for human consumption
13which is to be consumed off the premises where it is sold
14(other than alcoholic beverages, soft drinks and food which has
15been prepared for immediate consumption) and prescription and
16nonprescription medicines, drugs, medical appliances and
17insulin, urine testing materials, syringes and needles used by
18diabetics.
19    Beginning January 1, 1990, each month the Department shall
20pay into the State and Local Sales Tax Reform Fund 20% of the
21net revenue realized for the preceding month from the 6.25%
22general rate on transfers of tangible personal property, other
23than tangible personal property which is purchased outside
24Illinois at retail from a retailer and which is titled or
25registered by an agency of this State's government.
26    Beginning August 1, 2000, each month the Department shall

 

 

HB3539- 35 -LRB099 09668 HLH 29877 b

1pay into the State and Local Sales Tax Reform Fund 100% of the
2net revenue realized for the preceding month from the 1.25%
3rate on the selling price of motor fuel and gasohol.
4    Beginning October 1, 2009, each month the Department shall
5pay into the Capital Projects Fund an amount that is equal to
6an amount estimated by the Department to represent 80% of the
7net revenue realized for the preceding month from the sale of
8candy, grooming and hygiene products, and soft drinks that had
9been taxed at a rate of 1% prior to September 1, 2009 but that
10are now taxed at 6.25%.
11    Beginning July 1, 2013, each month the Department shall pay
12into the Underground Storage Tank Fund from the proceeds
13collected under this Act, the Use Tax Act, the Service
14Occupation Tax Act, and the Retailers' Occupation Tax Act an
15amount equal to the average monthly deficit in the Underground
16Storage Tank Fund during the prior year, as certified annually
17by the Illinois Environmental Protection Agency, but the total
18payment into the Underground Storage Tank Fund under this Act,
19the Use Tax Act, the Service Occupation Tax Act, and the
20Retailers' Occupation Tax Act shall not exceed $18,000,000 in
21any State fiscal year. As used in this paragraph, the "average
22monthly deficit" shall be equal to the difference between the
23average monthly claims for payment by the fund and the average
24monthly revenues deposited into the fund, excluding payments
25made pursuant to this paragraph.
26    Beginning July 1, 2015, each month the Department shall pay

 

 

HB3539- 36 -LRB099 09668 HLH 29877 b

1into the Use and Occupation Tax Refund Fund 0.1% of the net
2revenue realized for the preceding month from the 6.25% general
3rate on the transfers of tangible personal property.
4    Of the remainder of the moneys received by the Department
5pursuant to this Act, (a) 1.75% thereof shall be paid into the
6Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
7and after July 1, 1989, 3.8% thereof shall be paid into the
8Build Illinois Fund; provided, however, that if in any fiscal
9year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
10may be, of the moneys received by the Department and required
11to be paid into the Build Illinois Fund pursuant to Section 3
12of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
13Act, Section 9 of the Service Use Tax Act, and Section 9 of the
14Service Occupation Tax Act, such Acts being hereinafter called
15the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
16may be, of moneys being hereinafter called the "Tax Act
17Amount", and (2) the amount transferred to the Build Illinois
18Fund from the State and Local Sales Tax Reform Fund shall be
19less than the Annual Specified Amount (as defined in Section 3
20of the Retailers' Occupation Tax Act), an amount equal to the
21difference shall be immediately paid into the Build Illinois
22Fund from other moneys received by the Department pursuant to
23the Tax Acts; and further provided, that if on the last
24business day of any month the sum of (1) the Tax Act Amount
25required to be deposited into the Build Illinois Bond Account
26in the Build Illinois Fund during such month and (2) the amount

 

 

HB3539- 37 -LRB099 09668 HLH 29877 b

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

 

 

HB3539- 38 -LRB099 09668 HLH 29877 b

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

 

 

HB3539- 39 -LRB099 09668 HLH 29877 b

1Retailers' Occupation Tax Act into the McCormick Place
2Expansion Project Fund in the specified fiscal years.
3Fiscal YearTotal Deposit
41993         $0
51994 53,000,000
61995 58,000,000
71996 61,000,000
81997 64,000,000
91998 68,000,000
101999 71,000,000
112000 75,000,000
122001 80,000,000
132002 93,000,000
142003 99,000,000
152004103,000,000
162005108,000,000
172006113,000,000
182007119,000,000
192008126,000,000
202009132,000,000
212010139,000,000
222011146,000,000
232012153,000,000
242013161,000,000
252014170,000,000

 

 

HB3539- 40 -LRB099 09668 HLH 29877 b

12015179,000,000
22016189,000,000
32017199,000,000
42018210,000,000
52019221,000,000
62020233,000,000
72021246,000,000
82022260,000,000
92023275,000,000
102024 275,000,000
112025 275,000,000
122026 279,000,000
132027 292,000,000
142028 307,000,000
152029 322,000,000
162030 338,000,000
172031 350,000,000
182032 350,000,000
19and
20each fiscal year
21thereafter that bonds
22are outstanding under
23Section 13.2 of the
24Metropolitan Pier and
25Exposition Authority Act,
26but not after fiscal year 2060.

 

 

HB3539- 41 -LRB099 09668 HLH 29877 b

1    Beginning July 20, 1993 and in each month of each fiscal
2year thereafter, one-eighth of the amount requested in the
3certificate of the Chairman of the Metropolitan Pier and
4Exposition Authority for that fiscal year, less the amount
5deposited into the McCormick Place Expansion Project Fund by
6the State Treasurer in the respective month under subsection
7(g) of Section 13 of the Metropolitan Pier and Exposition
8Authority Act, plus cumulative deficiencies in the deposits
9required under this Section for previous months and years,
10shall be deposited into the McCormick Place Expansion Project
11Fund, until the full amount requested for the fiscal year, but
12not in excess of the amount specified above as "Total Deposit",
13has been deposited.
14    Subject to payment of amounts into the Build Illinois Fund
15and the McCormick Place Expansion Project Fund pursuant to the
16preceding paragraphs or in any amendments thereto hereafter
17enacted, beginning July 1, 1993 and ending on September 30,
182013, the Department shall each month pay into the Illinois Tax
19Increment Fund 0.27% of 80% of the net revenue realized for the
20preceding month from the 6.25% general rate on the selling
21price of tangible personal property.
22    Subject to payment of amounts into the Build Illinois Fund
23and the McCormick Place Expansion Project Fund pursuant to the
24preceding paragraphs or in any amendments thereto hereafter
25enacted, beginning with the receipt of the first report of
26taxes paid by an eligible business and continuing for a 25-year

 

 

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1period, the Department shall each month pay into the Energy
2Infrastructure Fund 80% of the net revenue realized from the
36.25% general rate on the selling price of Illinois-mined coal
4that was sold to an eligible business. For purposes of this
5paragraph, the term "eligible business" means a new electric
6generating facility certified pursuant to Section 605-332 of
7the Department of Commerce and Economic Opportunity Law of the
8Civil Administrative Code of Illinois.
9    Subject to payment of amounts into the Build Illinois Fund,
10the McCormick Place Expansion Project Fund, the Illinois Tax
11Increment Fund, and the Energy Infrastructure Fund pursuant to
12the preceding paragraphs or in any amendments to this Section
13hereafter enacted, beginning on the first day of the first
14calendar month to occur on or after the effective date of this
15amendatory Act of the 98th General Assembly, each month, from
16the collections made under Section 9 of the Use Tax Act,
17Section 9 of the Service Use Tax Act, Section 9 of the Service
18Occupation Tax Act, and Section 3 of the Retailers' Occupation
19Tax Act, the Department shall pay into the Tax Compliance and
20Administration Fund, to be used, subject to appropriation, to
21fund additional auditors and compliance personnel at the
22Department of Revenue, an amount equal to 1/12 of 5% of 80% of
23the cash receipts collected during the preceding fiscal year by
24the Audit Bureau of the Department under the Use Tax Act, the
25Service Use Tax Act, the Service Occupation Tax Act, the
26Retailers' Occupation Tax Act, and associated local occupation

 

 

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1and use taxes administered by the Department.
2    Of the remainder of the moneys received by the Department
3pursuant to this Act, 75% thereof shall be paid into the
4General Revenue Fund of the State Treasury and 25% shall be
5reserved in a special account and used only for the transfer to
6the Common School Fund as part of the monthly transfer from the
7General Revenue Fund in accordance with Section 8a of the State
8Finance Act.
9    As soon as possible after the first day of each month, upon
10certification of the Department of Revenue, the Comptroller
11shall order transferred and the Treasurer shall transfer from
12the General Revenue Fund to the Motor Fuel Tax Fund an amount
13equal to 1.7% of 80% of the net revenue realized under this Act
14for the second preceding month. Beginning April 1, 2000, this
15transfer is no longer required and shall not be made.
16    Net revenue realized for a month shall be the revenue
17collected by the State pursuant to this Act, less the amount
18paid out during that month as refunds to taxpayers for
19overpayment of liability.
20(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
2198-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
2298-1098, eff. 8-26-14.)
 
23    Section 15. The Service Occupation Tax Act is amended by
24changing Section 9 as follows:
 

 

 

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1    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
2    Sec. 9. Each serviceman required or authorized to collect
3the tax herein imposed shall pay to the Department the amount
4of such tax at the time when he is required to file his return
5for the period during which such tax was collectible, less a
6discount of 2.1% prior to January 1, 1990, and 1.75% on and
7after January 1, 1990, or $5 per calendar year, whichever is
8greater, which is allowed to reimburse the serviceman for
9expenses incurred in collecting the tax, keeping records,
10preparing and filing returns, remitting the tax and supplying
11data to the Department on request. The Department may disallow
12the discount for servicemen whose certificate of registration
13is revoked at the time the return is filed, but only if the
14Department's decision to revoke the certificate of
15registration has become final.
16    Where such tangible personal property is sold under a
17conditional sales contract, or under any other form of sale
18wherein the payment of the principal sum, or a part thereof, is
19extended beyond the close of the period for which the return is
20filed, the serviceman, in collecting the tax may collect, for
21each tax return period, only the tax applicable to the part of
22the selling price actually received during such tax return
23period.
24    Except as provided hereinafter in this Section, on or
25before the twentieth day of each calendar month, such
26serviceman shall file a return for the preceding calendar month

 

 

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

 

 

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1the return shall be considered valid and any amount shown to be
2due on the return shall be deemed assessed.
3    Prior to October 1, 2003, and on and after September 1,
42004 a serviceman may accept a Manufacturer's Purchase Credit
5certification from a purchaser in satisfaction of Service Use
6Tax as provided in Section 3-70 of the Service Use Tax Act if
7the purchaser provides the appropriate documentation as
8required by Section 3-70 of the Service Use Tax Act. A
9Manufacturer's Purchase Credit certification, accepted prior
10to October 1, 2003 or on or after September 1, 2004 by a
11serviceman as provided in Section 3-70 of the Service Use Tax
12Act, may be used by that serviceman to satisfy Service
13Occupation Tax liability in the amount claimed in the
14certification, not to exceed 6.25% of the receipts subject to
15tax from a qualifying purchase. A Manufacturer's Purchase
16Credit reported on any original or amended return filed under
17this Act after October 20, 2003 for reporting periods prior to
18September 1, 2004 shall be disallowed. Manufacturer's Purchase
19Credit reported on annual returns due on or after January 1,
202005 will be disallowed for periods prior to September 1, 2004.
21No Manufacturer's Purchase Credit may be used after September
2230, 2003 through August 31, 2004 to satisfy any tax liability
23imposed under this Act, including any audit liability.
24    If the serviceman's average monthly tax liability to the
25Department does not exceed $200, the Department may authorize
26his returns to be filed on a quarter annual basis, with the

 

 

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

 

 

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1all payments required by rules of the Department by electronic
2funds transfer. Beginning October 1, 1995, a taxpayer who has
3an average monthly tax liability of $50,000 or more shall make
4all payments required by rules of the Department by electronic
5funds transfer. Beginning October 1, 2000, a taxpayer who has
6an annual tax liability of $200,000 or more shall make all
7payments required by rules of the Department by electronic
8funds transfer. The term "annual tax liability" shall be the
9sum of the taxpayer's liabilities under this Act, and under all
10other State and local occupation and use tax laws administered
11by the Department, for the immediately preceding calendar year.
12The term "average monthly tax liability" means the sum of the
13taxpayer's liabilities under this Act, and under all other
14State and local occupation and use tax laws administered by the
15Department, for the immediately preceding calendar year
16divided by 12. Beginning on October 1, 2002, a taxpayer who has
17a tax liability in the amount set forth in subsection (b) of
18Section 2505-210 of the Department of Revenue Law shall make
19all payments required by rules of the Department by electronic
20funds transfer.
21    Before August 1 of each year beginning in 1993, the
22Department shall notify all taxpayers required to make payments
23by electronic funds transfer. All taxpayers required to make
24payments by electronic funds transfer shall make those payments
25for a minimum of one year beginning on October 1.
26    Any taxpayer not required to make payments by electronic

 

 

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1funds transfer may make payments by electronic funds transfer
2with the permission of the Department.
3    All taxpayers required to make payment by electronic funds
4transfer and any taxpayers authorized to voluntarily make
5payments by electronic funds transfer shall make those payments
6in the manner authorized by the Department.
7    The Department shall adopt such rules as are necessary to
8effectuate a program of electronic funds transfer and the
9requirements of this Section.
10    Where a serviceman collects the tax with respect to the
11selling price of tangible personal property which he sells and
12the purchaser thereafter returns such tangible personal
13property and the serviceman refunds the selling price thereof
14to the purchaser, such serviceman shall also refund, to the
15purchaser, the tax so collected from the purchaser. When filing
16his return for the period in which he refunds such tax to the
17purchaser, the serviceman may deduct the amount of the tax so
18refunded by him to the purchaser from any other Service
19Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
20Use Tax which such serviceman may be required to pay or remit
21to the Department, as shown by such return, provided that the
22amount of the tax to be deducted shall previously have been
23remitted to the Department by such serviceman. If the
24serviceman shall not previously have remitted the amount of
25such tax to the Department, he shall be entitled to no
26deduction hereunder upon refunding such tax to the purchaser.

 

 

HB3539- 50 -LRB099 09668 HLH 29877 b

1    If experience indicates such action to be practicable, the
2Department may prescribe and furnish a combination or joint
3return which will enable servicemen, who are required to file
4returns hereunder and also under the Retailers' Occupation Tax
5Act, the Use Tax Act or the Service Use Tax Act, to furnish all
6the return information required by all said Acts on the one
7form.
8    Where the serviceman has more than one business registered
9with the Department under separate registrations hereunder,
10such serviceman shall file separate returns for each registered
11business.
12    Beginning January 1, 1990, each month the Department shall
13pay into the Local Government Tax Fund the revenue realized for
14the preceding month from the 1% tax on sales of food for human
15consumption which is to be consumed off the premises where it
16is sold (other than alcoholic beverages, soft drinks and food
17which has been prepared for immediate consumption) and
18prescription and nonprescription medicines, drugs, medical
19appliances and insulin, urine testing materials, syringes and
20needles used by diabetics.
21    Beginning January 1, 1990, each month the Department shall
22pay into the County and Mass Transit District Fund 4% of the
23revenue realized for the preceding month from the 6.25% general
24rate.
25    Beginning August 1, 2000, each month the Department shall
26pay into the County and Mass Transit District Fund 20% of the

 

 

HB3539- 51 -LRB099 09668 HLH 29877 b

1net revenue realized for the preceding month from the 1.25%
2rate on the selling price of motor fuel and gasohol.
3    Beginning January 1, 1990, each month the Department shall
4pay into the Local Government Tax Fund 16% of the revenue
5realized for the preceding month from the 6.25% general rate on
6transfers of tangible personal property.
7    Beginning August 1, 2000, each month the Department shall
8pay into the Local Government Tax Fund 80% of the net revenue
9realized for the preceding month from the 1.25% rate on the
10selling price of motor fuel and gasohol.
11    Beginning October 1, 2009, each month the Department shall
12pay into the Capital Projects Fund an amount that is equal to
13an amount estimated by the Department to represent 80% of the
14net revenue realized for the preceding month from the sale of
15candy, grooming and hygiene products, and soft drinks that had
16been taxed at a rate of 1% prior to September 1, 2009 but that
17are now taxed at 6.25%.
18    Beginning July 1, 2013, each month the Department shall pay
19into the Underground Storage Tank Fund from the proceeds
20collected under this Act, the Use Tax Act, the Service Use Tax
21Act, and the Retailers' Occupation Tax Act an amount equal to
22the average monthly deficit in the Underground Storage Tank
23Fund during the prior year, as certified annually by the
24Illinois Environmental Protection Agency, but the total
25payment into the Underground Storage Tank Fund under this Act,
26the Use Tax Act, the Service Use Tax Act, and the Retailers'

 

 

HB3539- 52 -LRB099 09668 HLH 29877 b

1Occupation Tax Act shall not exceed $18,000,000 in any State
2fiscal year. As used in this paragraph, the "average monthly
3deficit" shall be equal to the difference between the average
4monthly claims for payment by the fund and the average monthly
5revenues deposited into the fund, excluding payments made
6pursuant to this paragraph.
7    Beginning July 1, 2015, each month the Department shall pay
8into the Use and Occupation Tax Refund Fund 0.1% of the net
9revenue realized for the preceding month from the 6.25% general
10rate on the transfers of tangible personal property.
11    Of the remainder of the moneys received by the Department
12pursuant to this Act, (a) 1.75% thereof shall be paid into the
13Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
14and after July 1, 1989, 3.8% thereof shall be paid into the
15Build Illinois Fund; provided, however, that if in any fiscal
16year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
17may be, of the moneys received by the Department and required
18to be paid into the Build Illinois Fund pursuant to Section 3
19of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
20Act, Section 9 of the Service Use Tax Act, and Section 9 of the
21Service Occupation Tax Act, such Acts being hereinafter called
22the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
23may be, of moneys being hereinafter called the "Tax Act
24Amount", and (2) the amount transferred to the Build Illinois
25Fund from the State and Local Sales Tax Reform Fund shall be
26less than the Annual Specified Amount (as defined in Section 3

 

 

HB3539- 53 -LRB099 09668 HLH 29877 b

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

 

 

HB3539- 54 -LRB099 09668 HLH 29877 b

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

 

 

HB3539- 55 -LRB099 09668 HLH 29877 b

1installment of the amount requested in the certificate of the
2Chairman of the Metropolitan Pier and Exposition Authority
3provided under Section 8.25f of the State Finance Act, but not
4in excess of the sums designated as "Total Deposit", shall be
5deposited in the aggregate from collections under Section 9 of
6the Use Tax Act, Section 9 of the Service Use Tax Act, Section
79 of the Service Occupation Tax Act, and Section 3 of the
8Retailers' Occupation Tax Act into the McCormick Place
9Expansion Project Fund in the specified fiscal years.
10Fiscal YearTotal Deposit
111993         $0
121994 53,000,000
131995 58,000,000
141996 61,000,000
151997 64,000,000
161998 68,000,000
171999 71,000,000
182000 75,000,000
192001 80,000,000
202002 93,000,000
212003 99,000,000
222004103,000,000
232005108,000,000
242006113,000,000
252007119,000,000

 

 

HB3539- 56 -LRB099 09668 HLH 29877 b

12008126,000,000
22009132,000,000
32010139,000,000
42011146,000,000
52012153,000,000
62013161,000,000
72014170,000,000
82015179,000,000
92016189,000,000
102017199,000,000
112018210,000,000
122019221,000,000
132020233,000,000
142021246,000,000
152022260,000,000
162023275,000,000
172024 275,000,000
182025 275,000,000
192026 279,000,000
202027 292,000,000
212028 307,000,000
222029 322,000,000
232030 338,000,000
242031 350,000,000
252032 350,000,000
26and

 

 

HB3539- 57 -LRB099 09668 HLH 29877 b

1each fiscal year
2thereafter that bonds
3are outstanding under
4Section 13.2 of the
5Metropolitan Pier and
6Exposition Authority Act,
7but not after fiscal year 2060.
8    Beginning July 20, 1993 and in each month of each fiscal
9year thereafter, one-eighth of the amount requested in the
10certificate of the Chairman of the Metropolitan Pier and
11Exposition Authority for that fiscal year, less the amount
12deposited into the McCormick Place Expansion Project Fund by
13the State Treasurer in the respective month under subsection
14(g) of Section 13 of the Metropolitan Pier and Exposition
15Authority Act, plus cumulative deficiencies in the deposits
16required under this Section for previous months and years,
17shall be deposited into the McCormick Place Expansion Project
18Fund, until the full amount requested for the fiscal year, but
19not in excess of the amount specified above as "Total Deposit",
20has been deposited.
21    Subject to payment of amounts into the Build Illinois Fund
22and the McCormick Place Expansion Project Fund pursuant to the
23preceding paragraphs or in any amendments thereto hereafter
24enacted, beginning July 1, 1993 and ending on September 30,
252013, the Department shall each month pay into the Illinois Tax
26Increment Fund 0.27% of 80% of the net revenue realized for the

 

 

HB3539- 58 -LRB099 09668 HLH 29877 b

1preceding month from the 6.25% general rate on the selling
2price of tangible personal property.
3    Subject to payment of amounts into the Build Illinois Fund
4and the McCormick Place Expansion Project Fund pursuant to the
5preceding paragraphs or in any amendments thereto hereafter
6enacted, beginning with the receipt of the first report of
7taxes paid by an eligible business and continuing for a 25-year
8period, the Department shall each month pay into the Energy
9Infrastructure Fund 80% of the net revenue realized from the
106.25% general rate on the selling price of Illinois-mined coal
11that was sold to an eligible business. For purposes of this
12paragraph, the term "eligible business" means a new electric
13generating facility certified pursuant to Section 605-332 of
14the Department of Commerce and Economic Opportunity Law of the
15Civil Administrative Code of Illinois.
16    Subject to payment of amounts into the Build Illinois Fund,
17the McCormick Place Expansion Project Fund, the Illinois Tax
18Increment Fund, and the Energy Infrastructure Fund pursuant to
19the preceding paragraphs or in any amendments to this Section
20hereafter enacted, beginning on the first day of the first
21calendar month to occur on or after the effective date of this
22amendatory Act of the 98th General Assembly, each month, from
23the collections made under Section 9 of the Use Tax Act,
24Section 9 of the Service Use Tax Act, Section 9 of the Service
25Occupation Tax Act, and Section 3 of the Retailers' Occupation
26Tax Act, the Department shall pay into the Tax Compliance and

 

 

HB3539- 59 -LRB099 09668 HLH 29877 b

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

 

 

HB3539- 60 -LRB099 09668 HLH 29877 b

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

 

 

HB3539- 61 -LRB099 09668 HLH 29877 b

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

 

 

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1paying to the Department all tax accruing under this Act with
2respect to such sales, if the servicemen who are affected do
3not make written objection to the Department to this
4arrangement.
5(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
698-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
798-1098, eff. 8-26-14.)
 
8    Section 20. The Retailers' Occupation Tax Act is amended by
9changing Section 3 as follows:
 
10    (35 ILCS 120/3)  (from Ch. 120, par. 442)
11    Sec. 3. Except as provided in this Section, on or before
12the twentieth day of each calendar month, every person engaged
13in the business of selling tangible personal property at retail
14in this State during the preceding calendar month shall file a
15return with the Department, stating:
16        1. The name of the seller;
17        2. His residence address and the address of his
18    principal place of business and the address of the
19    principal place of business (if that is a different
20    address) from which he engages in the business of selling
21    tangible personal property at retail in this State;
22        3. Total amount of receipts received by him during the
23    preceding calendar month or quarter, as the case may be,
24    from sales of tangible personal property, and from services

 

 

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1    furnished, by him during such preceding calendar month or
2    quarter;
3        4. Total amount received by him during the preceding
4    calendar month or quarter on charge and time sales of
5    tangible personal property, and from services furnished,
6    by him prior to the month or quarter for which the return
7    is filed;
8        5. Deductions allowed by law;
9        6. Gross receipts which were received by him during the
10    preceding calendar month or quarter and upon the basis of
11    which the tax is imposed;
12        7. The amount of credit provided in Section 2d of this
13    Act;
14        8. The amount of tax due;
15        9. The signature of the taxpayer; and
16        10. Such other reasonable information as the
17    Department may require.
18    If a taxpayer fails to sign a return within 30 days after
19the proper notice and demand for signature by the Department,
20the return shall be considered valid and any amount shown to be
21due on the return shall be deemed assessed.
22    Each return shall be accompanied by the statement of
23prepaid tax issued pursuant to Section 2e for which credit is
24claimed.
25    Prior to October 1, 2003, and on and after September 1,
262004 a retailer may accept a Manufacturer's Purchase Credit

 

 

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1certification from a purchaser in satisfaction of Use Tax as
2provided in Section 3-85 of the Use Tax Act if the purchaser
3provides the appropriate documentation as required by Section
43-85 of the Use Tax Act. A Manufacturer's Purchase Credit
5certification, accepted by a retailer prior to October 1, 2003
6and on and after September 1, 2004 as provided in Section 3-85
7of the Use Tax Act, may be used by that retailer to satisfy
8Retailers' Occupation Tax liability in the amount claimed in
9the certification, not to exceed 6.25% of the receipts subject
10to tax from a qualifying purchase. A Manufacturer's Purchase
11Credit reported on any original or amended return filed under
12this Act after October 20, 2003 for reporting periods prior to
13September 1, 2004 shall be disallowed. Manufacturer's
14Purchaser Credit reported on annual returns due on or after
15January 1, 2005 will be disallowed for periods prior to
16September 1, 2004. No Manufacturer's Purchase Credit may be
17used after September 30, 2003 through August 31, 2004 to
18satisfy any tax liability imposed under this Act, including any
19audit liability.
20    The Department may require returns to be filed on a
21quarterly basis. If so required, a return for each calendar
22quarter shall be filed on or before the twentieth day of the
23calendar month following the end of such calendar quarter. The
24taxpayer shall also file a return with the Department for each
25of the first two months of each calendar quarter, on or before
26the twentieth day of the following calendar month, stating:

 

 

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1        1. The name of the seller;
2        2. The address of the principal place of business from
3    which he engages in the business of selling tangible
4    personal property at retail in this State;
5        3. The total amount of taxable receipts received by him
6    during the preceding calendar month from sales of tangible
7    personal property by him during such preceding calendar
8    month, including receipts from charge and time sales, but
9    less all deductions allowed by law;
10        4. The amount of credit provided in Section 2d of this
11    Act;
12        5. The amount of tax due; and
13        6. Such other reasonable information as the Department
14    may require.
15    Beginning on October 1, 2003, any person who is not a
16licensed distributor, importing distributor, or manufacturer,
17as defined in the Liquor Control Act of 1934, but is engaged in
18the business of selling, at retail, alcoholic liquor shall file
19a statement with the Department of Revenue, in a format and at
20a time prescribed by the Department, showing the total amount
21paid for alcoholic liquor purchased during the preceding month
22and such other information as is reasonably required by the
23Department. The Department may adopt rules to require that this
24statement be filed in an electronic or telephonic format. Such
25rules may provide for exceptions from the filing requirements
26of this paragraph. For the purposes of this paragraph, the term

 

 

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

 

 

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1information by personal delivery or by mail. For purposes of
2this paragraph, the term "electronic means" includes, but is
3not limited to, the use of a secure Internet website, e-mail,
4or facsimile.
5    If a total amount of less than $1 is payable, refundable or
6creditable, such amount shall be disregarded if it is less than
750 cents and shall be increased to $1 if it is 50 cents or more.
8    Beginning October 1, 1993, a taxpayer who has an average
9monthly tax liability of $150,000 or more shall make all
10payments required by rules of the Department by electronic
11funds transfer. Beginning October 1, 1994, a taxpayer who has
12an average monthly tax liability of $100,000 or more shall make
13all payments required by rules of the Department by electronic
14funds transfer. Beginning October 1, 1995, a taxpayer who has
15an average monthly tax liability of $50,000 or more shall make
16all payments required by rules of the Department by electronic
17funds transfer. Beginning October 1, 2000, a taxpayer who has
18an annual tax liability of $200,000 or more shall make all
19payments required by rules of the Department by electronic
20funds transfer. The term "annual tax liability" shall be the
21sum of the taxpayer's liabilities under this Act, and under all
22other State and local occupation and use tax laws administered
23by the Department, for the immediately preceding calendar year.
24The term "average monthly tax liability" shall be the sum of
25the taxpayer's liabilities under this Act, and under all other
26State and local occupation and use tax laws administered by the

 

 

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1Department, for the immediately preceding calendar year
2divided by 12. Beginning on October 1, 2002, a taxpayer who has
3a tax liability in the amount set forth in subsection (b) of
4Section 2505-210 of the Department of Revenue Law shall make
5all payments required by rules of the Department by electronic
6funds transfer.
7    Before August 1 of each year beginning in 1993, the
8Department shall notify all taxpayers required to make payments
9by electronic funds transfer. All taxpayers required to make
10payments by electronic funds transfer shall make those payments
11for a minimum of one year beginning on October 1.
12    Any taxpayer not required to make payments by electronic
13funds transfer may make payments by electronic funds transfer
14with the permission of the Department.
15    All taxpayers required to make payment by electronic funds
16transfer and any taxpayers authorized to voluntarily make
17payments by electronic funds transfer shall make those payments
18in the manner authorized by the Department.
19    The Department shall adopt such rules as are necessary to
20effectuate a program of electronic funds transfer and the
21requirements of this Section.
22    Any amount which is required to be shown or reported on any
23return or other document under this Act shall, if such amount
24is not a whole-dollar amount, be increased to the nearest
25whole-dollar amount in any case where the fractional part of a
26dollar is 50 cents or more, and decreased to the nearest

 

 

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

 

 

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1such retailer shall file a final return under this Act with the
2Department not more than one month after discontinuing such
3business.
4    Where the same person has more than one business registered
5with the Department under separate registrations under this
6Act, such person may not file each return that is due as a
7single return covering all such registered businesses, but
8shall file separate returns for each such registered business.
9    In addition, with respect to motor vehicles, watercraft,
10aircraft, and trailers that are required to be registered with
11an agency of this State, every retailer selling this kind of
12tangible personal property shall file, with the Department,
13upon a form to be prescribed and supplied by the Department, a
14separate return for each such item of tangible personal
15property which the retailer sells, except that if, in the same
16transaction, (i) a retailer of aircraft, watercraft, motor
17vehicles or trailers transfers more than one aircraft,
18watercraft, motor vehicle or trailer to another aircraft,
19watercraft, motor vehicle retailer or trailer retailer for the
20purpose of resale or (ii) a retailer of aircraft, watercraft,
21motor vehicles, or trailers transfers more than one aircraft,
22watercraft, motor vehicle, or trailer to a purchaser for use as
23a qualifying rolling stock as provided in Section 2-5 of this
24Act, then that seller may report the transfer of all aircraft,
25watercraft, motor vehicles or trailers involved in that
26transaction to the Department on the same uniform

 

 

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1invoice-transaction reporting return form. For purposes of
2this Section, "watercraft" means a Class 2, Class 3, or Class 4
3watercraft as defined in Section 3-2 of the Boat Registration
4and Safety Act, a personal watercraft, or any boat equipped
5with an inboard motor.
6    Any retailer who sells only motor vehicles, watercraft,
7aircraft, or trailers that are required to be registered with
8an agency of this State, so that all retailers' occupation tax
9liability is required to be reported, and is reported, on such
10transaction reporting returns and who is not otherwise required
11to file monthly or quarterly returns, need not file monthly or
12quarterly returns. However, those retailers shall be required
13to file returns on an annual basis.
14    The transaction reporting return, in the case of motor
15vehicles or trailers that are required to be registered with an
16agency of this State, shall be the same document as the Uniform
17Invoice referred to in Section 5-402 of The Illinois Vehicle
18Code and must show the name and address of the seller; the name
19and address of the purchaser; the amount of the selling price
20including the amount allowed by the retailer for traded-in
21property, if any; the amount allowed by the retailer for the
22traded-in tangible personal property, if any, to the extent to
23which Section 1 of this Act allows an exemption for the value
24of traded-in property; the balance payable after deducting such
25trade-in allowance from the total selling price; the amount of
26tax due from the retailer with respect to such transaction; the

 

 

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

 

 

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

 

 

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

 

 

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1subdivision 5 of his monthly or quarterly return, as the case
2may be, in case the seller had theretofore included the
3receipts from the sale of such tangible personal property in a
4return filed by him and had paid the tax imposed by this Act
5with respect to such receipts.
6    Where the seller is a corporation, the return filed on
7behalf of such corporation shall be signed by the president,
8vice-president, secretary or treasurer or by the properly
9accredited agent of such corporation.
10    Where the seller is a limited liability company, the return
11filed on behalf of the limited liability company shall be
12signed by a manager, member, or properly accredited agent of
13the limited liability company.
14    Except as provided in this Section, the retailer filing the
15return under this Section shall, at the time of filing such
16return, pay to the Department the amount of tax imposed by this
17Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
18on and after January 1, 1990, or $5 per calendar year,
19whichever is greater, which is allowed to reimburse the
20retailer for the expenses incurred in keeping records,
21preparing and filing returns, remitting the tax and supplying
22data to the Department on request. Any prepayment made pursuant
23to Section 2d of this Act shall be included in the amount on
24which such 2.1% or 1.75% discount is computed. In the case of
25retailers who report and pay the tax on a transaction by
26transaction basis, as provided in this Section, such discount

 

 

HB3539- 76 -LRB099 09668 HLH 29877 b

1shall be taken with each such tax remittance instead of when
2such retailer files his periodic return. The Department may
3disallow the discount for retailers whose certificate of
4registration is revoked at the time the return is filed, but
5only if the Department's decision to revoke the certificate of
6registration has become final.
7    Before October 1, 2000, if the taxpayer's average monthly
8tax liability to the Department under this Act, the Use Tax
9Act, the Service Occupation Tax Act, and the Service Use Tax
10Act, excluding any liability for prepaid sales tax to be
11remitted in accordance with Section 2d of this Act, was $10,000
12or more during the preceding 4 complete calendar quarters, he
13shall file a return with the Department each month by the 20th
14day of the month next following the month during which such tax
15liability is incurred and shall make payments to the Department
16on or before the 7th, 15th, 22nd and last day of the month
17during which such liability is incurred. On and after October
181, 2000, if the taxpayer's average monthly tax liability to the
19Department under this Act, the Use Tax Act, the Service
20Occupation Tax Act, and the Service Use Tax Act, excluding any
21liability for prepaid sales tax to be remitted in accordance
22with Section 2d of this Act, was $20,000 or more during the
23preceding 4 complete calendar quarters, he shall file a return
24with the Department each month by the 20th day of the month
25next following the month during which such tax liability is
26incurred and shall make payment to the Department on or before

 

 

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

 

 

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11989, and prior to January 1, 1996, each payment shall be in an
2amount equal to 22.5% of the taxpayer's actual liability for
3the month or 25% of the taxpayer's liability for the same
4calendar month of the preceding year or 100% of the taxpayer's
5actual liability for the quarter monthly reporting period. The
6amount of such quarter monthly payments shall be credited
7against the final tax liability of the taxpayer's return for
8that month. Before October 1, 2000, once applicable, the
9requirement of the making of quarter monthly payments to the
10Department by taxpayers having an average monthly tax liability
11of $10,000 or more as determined in the manner provided above
12shall continue until such taxpayer's average monthly liability
13to the Department during the preceding 4 complete calendar
14quarters (excluding the month of highest liability and the
15month of lowest liability) is less than $9,000, or until such
16taxpayer's average monthly liability to the Department as
17computed for each calendar quarter of the 4 preceding complete
18calendar quarter period is less than $10,000. However, if a
19taxpayer can show the Department that a substantial change in
20the taxpayer's business has occurred which causes the taxpayer
21to anticipate that his average monthly tax liability for the
22reasonably foreseeable future will fall below the $10,000
23threshold stated above, then such taxpayer may petition the
24Department for a change in such taxpayer's reporting status. On
25and after October 1, 2000, once applicable, the requirement of
26the making of quarter monthly payments to the Department by

 

 

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

 

 

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1govern the quarter monthly payment amount and quarter monthly
2payment dates for taxpayers who file on other than a calendar
3monthly basis.
4    The provisions of this paragraph apply before October 1,
52001. Without regard to whether a taxpayer is required to make
6quarter monthly payments as specified above, any taxpayer who
7is required by Section 2d of this Act to collect and remit
8prepaid taxes and has collected prepaid taxes which average in
9excess of $25,000 per month during the preceding 2 complete
10calendar quarters, shall file a return with the Department as
11required by Section 2f and shall make payments to the
12Department on or before the 7th, 15th, 22nd and last day of the
13month during which such liability is incurred. If the month
14during which such tax liability is incurred began prior to the
15effective date of this amendatory Act of 1985, each payment
16shall be in an amount not less than 22.5% of the taxpayer's
17actual liability under Section 2d. If the month during which
18such tax liability is incurred begins on or after January 1,
191986, each payment shall be in an amount equal to 22.5% of the
20taxpayer's actual liability for the month or 27.5% of the
21taxpayer's liability for the same calendar month of the
22preceding calendar year. If the month during which such tax
23liability is incurred begins on or after January 1, 1987, each
24payment shall be in an amount equal to 22.5% of the taxpayer's
25actual liability for the month or 26.25% of the taxpayer's
26liability for the same calendar month of the preceding year.

 

 

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1The amount of such quarter monthly payments shall be credited
2against the final tax liability of the taxpayer's return for
3that month filed under this Section or Section 2f, as the case
4may be. Once applicable, the requirement of the making of
5quarter monthly payments to the Department pursuant to this
6paragraph shall continue until such taxpayer's average monthly
7prepaid tax collections during the preceding 2 complete
8calendar quarters is $25,000 or less. If any such quarter
9monthly payment is not paid at the time or in the amount
10required, the taxpayer shall be liable for penalties and
11interest on such difference, except insofar as the taxpayer has
12previously made payments for that month in excess of the
13minimum payments previously due.
14    The provisions of this paragraph apply on and after October
151, 2001. Without regard to whether a taxpayer is required to
16make quarter monthly payments as specified above, any taxpayer
17who is required by Section 2d of this Act to collect and remit
18prepaid taxes and has collected prepaid taxes that average in
19excess of $20,000 per month during the preceding 4 complete
20calendar quarters shall file a return with the Department as
21required by Section 2f and shall make payments to the
22Department on or before the 7th, 15th, 22nd and last day of the
23month during which the liability is incurred. Each payment
24shall be in an amount equal to 22.5% of the taxpayer's actual
25liability for the month or 25% of the taxpayer's liability for
26the same calendar month of the preceding year. The amount of

 

 

HB3539- 82 -LRB099 09668 HLH 29877 b

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

 

 

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

 

 

HB3539- 84 -LRB099 09668 HLH 29877 b

1drugs, medical appliances and insulin, urine testing
2materials, syringes and needles used by diabetics.
3    Beginning January 1, 1990, each month the Department shall
4pay into the County and Mass Transit District Fund, a special
5fund in the State treasury which is hereby created, 4% of the
6net revenue realized for the preceding month from the 6.25%
7general rate.
8    Beginning August 1, 2000, each month the Department shall
9pay into the County and Mass Transit District Fund 20% of the
10net revenue realized for the preceding month from the 1.25%
11rate on the selling price of motor fuel and gasohol. Beginning
12September 1, 2010, each month the Department shall pay into the
13County and Mass Transit District Fund 20% of the net revenue
14realized for the preceding month from the 1.25% rate on the
15selling price of sales tax holiday items.
16    Beginning January 1, 1990, each month the Department shall
17pay into the Local Government Tax Fund 16% of the net revenue
18realized for the preceding month from the 6.25% general rate on
19the selling price of tangible personal property.
20    Beginning August 1, 2000, each month the Department shall
21pay into the Local Government Tax Fund 80% of the net revenue
22realized for the preceding month from the 1.25% rate on the
23selling price of motor fuel and gasohol. Beginning September 1,
242010, each month the Department shall pay into the Local
25Government Tax Fund 80% of the net revenue realized for the
26preceding month from the 1.25% rate on the selling price of

 

 

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

 

 

HB3539- 86 -LRB099 09668 HLH 29877 b

1shall not exceed $18,000,000 in any State fiscal year. As used
2in this paragraph, the "average monthly deficit" shall be equal
3to the difference between the average monthly claims for
4payment by the fund and the average monthly revenues deposited
5into the fund, excluding payments made pursuant to this
6paragraph.
7    Beginning July 1, 2015, each month the Department shall pay
8into the Use and Occupation Tax Refund Fund 0.1% of the net
9revenue realized for the preceding month from the 6.25% general
10rate on the selling price of tangible personal property.
11    Of the remainder of the moneys received by the Department
12pursuant to this Act, (a) 1.75% thereof shall be paid into the
13Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
14and after July 1, 1989, 3.8% thereof shall be paid into the
15Build Illinois Fund; provided, however, that if in any fiscal
16year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
17may be, of the moneys received by the Department and required
18to be paid into the Build Illinois Fund pursuant to this Act,
19Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
20Act, and Section 9 of the Service Occupation Tax Act, such Acts
21being hereinafter called the "Tax Acts" and such aggregate of
222.2% or 3.8%, as the case may be, of moneys being hereinafter
23called the "Tax Act Amount", and (2) the amount transferred to
24the Build Illinois Fund from the State and Local Sales Tax
25Reform Fund shall be less than the Annual Specified Amount (as
26hereinafter defined), an amount equal to the difference shall

 

 

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1be immediately paid into the Build Illinois Fund from other
2moneys received by the Department pursuant to the Tax Acts; the
3"Annual Specified Amount" means the amounts specified below for
4fiscal years 1986 through 1993:
5Fiscal YearAnnual Specified Amount
61986$54,800,000
71987$76,650,000
81988$80,480,000
91989$88,510,000
101990$115,330,000
111991$145,470,000
121992$182,730,000
131993$206,520,000;
14and means the Certified Annual Debt Service Requirement (as
15defined in Section 13 of the Build Illinois Bond Act) or the
16Tax Act Amount, whichever is greater, for fiscal year 1994 and
17each fiscal year thereafter; and further provided, that if on
18the last business day of any month the sum of (1) the Tax Act
19Amount required to be deposited into the Build Illinois Bond
20Account in the Build Illinois Fund during such month and (2)
21the amount transferred to the Build Illinois Fund from the
22State and Local Sales Tax Reform Fund shall have been less than
231/12 of the Annual Specified Amount, an amount equal to the
24difference shall be immediately paid into the Build Illinois
25Fund from other moneys received by the Department pursuant to
26the Tax Acts; and, further provided, that in no event shall the

 

 

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1payments required under the preceding proviso result in
2aggregate payments into the Build Illinois Fund pursuant to
3this clause (b) for any fiscal year in excess of the greater of
4(i) the Tax Act Amount or (ii) the Annual Specified Amount for
5such fiscal year. The amounts payable into the Build Illinois
6Fund under clause (b) of the first sentence in this paragraph
7shall be payable only until such time as the aggregate amount
8on deposit under each trust indenture securing Bonds issued and
9outstanding pursuant to the Build Illinois Bond Act is
10sufficient, taking into account any future investment income,
11to fully provide, in accordance with such indenture, for the
12defeasance of or the payment of the principal of, premium, if
13any, and interest on the Bonds secured by such indenture and on
14any Bonds expected to be issued thereafter and all fees and
15costs payable with respect thereto, all as certified by the
16Director of the Bureau of the Budget (now Governor's Office of
17Management and Budget). If on the last business day of any
18month in which Bonds are outstanding pursuant to the Build
19Illinois Bond Act, the aggregate of moneys deposited in the
20Build Illinois Bond Account in the Build Illinois Fund in such
21month shall be less than the amount required to be transferred
22in such month from the Build Illinois Bond Account to the Build
23Illinois Bond Retirement and Interest Fund pursuant to Section
2413 of the Build Illinois Bond Act, an amount equal to such
25deficiency shall be immediately paid from other moneys received
26by the Department pursuant to the Tax Acts to the Build

 

 

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

 

 

HB3539- 90 -LRB099 09668 HLH 29877 b

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

 

 

HB3539- 91 -LRB099 09668 HLH 29877 b

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

 

 

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

 

 

HB3539- 93 -LRB099 09668 HLH 29877 b

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

 

 

HB3539- 94 -LRB099 09668 HLH 29877 b

1accordance with Section 8a of the State Finance Act.
2    The Department may, upon separate written notice to a
3taxpayer, require the taxpayer to prepare and file with the
4Department on a form prescribed by the Department within not
5less than 60 days after receipt of the notice an annual
6information return for the tax year specified in the notice.
7Such annual return to the Department shall include a statement
8of gross receipts as shown by the retailer's last Federal
9income tax return. If the total receipts of the business as
10reported in the Federal income tax return do not agree with the
11gross receipts reported to the Department of Revenue for the
12same period, the retailer shall attach to his annual return a
13schedule showing a reconciliation of the 2 amounts and the
14reasons for the difference. The retailer's annual return to the
15Department shall also disclose the cost of goods sold by the
16retailer during the year covered by such return, opening and
17closing inventories of such goods for such year, costs of goods
18used from stock or taken from stock and given away by the
19retailer during such year, payroll information of the
20retailer's business during such year and any additional
21reasonable information which the Department deems would be
22helpful in determining the accuracy of the monthly, quarterly
23or annual returns filed by such retailer as provided for in
24this Section.
25    If the annual information return required by this Section
26is not filed when and as required, the taxpayer shall be liable

 

 

HB3539- 95 -LRB099 09668 HLH 29877 b

1as follows:
2        (i) Until January 1, 1994, the taxpayer shall be liable
3    for a penalty equal to 1/6 of 1% of the tax due from such
4    taxpayer under this Act during the period to be covered by
5    the annual return for each month or fraction of a month
6    until such return is filed as required, the penalty to be
7    assessed and collected in the same manner as any other
8    penalty provided for in this Act.
9        (ii) On and after January 1, 1994, the taxpayer shall
10    be liable for a penalty as described in Section 3-4 of the
11    Uniform Penalty and Interest Act.
12    The chief executive officer, proprietor, owner or highest
13ranking manager shall sign the annual return to certify the
14accuracy of the information contained therein. Any person who
15willfully signs the annual return containing false or
16inaccurate information shall be guilty of perjury and punished
17accordingly. The annual return form prescribed by the
18Department shall include a warning that the person signing the
19return may be liable for perjury.
20    The provisions of this Section concerning the filing of an
21annual information return do not apply to a retailer who is not
22required to file an income tax return with the United States
23Government.
24    As soon as possible after the first day of each month, upon
25certification of the Department of Revenue, the Comptroller
26shall order transferred and the Treasurer shall transfer from

 

 

HB3539- 96 -LRB099 09668 HLH 29877 b

1the General Revenue Fund to the Motor Fuel Tax Fund an amount
2equal to 1.7% of 80% of the net revenue realized under this Act
3for the second preceding month. Beginning April 1, 2000, this
4transfer is no longer required and shall not be made.
5    Net revenue realized for a month shall be the revenue
6collected by the State pursuant to this Act, less the amount
7paid out during that month as refunds to taxpayers for
8overpayment of liability.
9    For greater simplicity of administration, manufacturers,
10importers and wholesalers whose products are sold at retail in
11Illinois by numerous retailers, and who wish to do so, may
12assume the responsibility for accounting and paying to the
13Department all tax accruing under this Act with respect to such
14sales, if the retailers who are affected do not make written
15objection to the Department to this arrangement.
16    Any person who promotes, organizes, provides retail
17selling space for concessionaires or other types of sellers at
18the Illinois State Fair, DuQuoin State Fair, county fairs,
19local fairs, art shows, flea markets and similar exhibitions or
20events, including any transient merchant as defined by Section
212 of the Transient Merchant Act of 1987, is required to file a
22report with the Department providing the name of the merchant's
23business, the name of the person or persons engaged in
24merchant's business, the permanent address and Illinois
25Retailers Occupation Tax Registration Number of the merchant,
26the dates and location of the event and other reasonable

 

 

HB3539- 97 -LRB099 09668 HLH 29877 b

1information that the Department may require. The report must be
2filed not later than the 20th day of the month next following
3the month during which the event with retail sales was held.
4Any person who fails to file a report required by this Section
5commits a business offense and is subject to a fine not to
6exceed $250.
7    Any person engaged in the business of selling tangible
8personal property at retail as a concessionaire or other type
9of seller at the Illinois State Fair, county fairs, art shows,
10flea markets and similar exhibitions or events, or any
11transient merchants, as defined by Section 2 of the Transient
12Merchant Act of 1987, may be required to make a daily report of
13the amount of such sales to the Department and to make a daily
14payment of the full amount of tax due. The Department shall
15impose this requirement when it finds that there is a
16significant risk of loss of revenue to the State at such an
17exhibition or event. Such a finding shall be based on evidence
18that a substantial number of concessionaires or other sellers
19who are not residents of Illinois will be engaging in the
20business of selling tangible personal property at retail at the
21exhibition or event, or other evidence of a significant risk of
22loss of revenue to the State. The Department shall notify
23concessionaires and other sellers affected by the imposition of
24this requirement. In the absence of notification by the
25Department, the concessionaires and other sellers shall file
26their returns as otherwise required in this Section.

 

 

HB3539- 98 -LRB099 09668 HLH 29877 b

1(Source: P.A. 97-95, eff. 7-12-11; 97-333, eff. 8-12-11; 98-24,
2eff. 6-19-13; 98-109, eff. 7-25-13; 98-496, eff. 1-1-14;
398-756, eff. 7-16-14; 98-1098, eff. 8-26-14.)
 
4    Section 25. The Illinois Vehicle Code is amended by
5changing Section 3-1001 as follows:
 
6    (625 ILCS 5/3-1001)  (from Ch. 95 1/2, par. 3-1001)
7    Sec. 3-1001. A tax is hereby imposed on the privilege of
8using, in this State, any motor vehicle as defined in Section
91-146 of this Code acquired by gift, transfer, or purchase, and
10having a year model designation preceding the year of
11application for title by 5 or fewer years prior to October 1,
121985 and 10 or fewer years on and after October 1, 1985 and
13prior to January 1, 1988. On and after January 1, 1988, the tax
14shall apply to all motor vehicles without regard to model year.
15Except that the tax shall not apply
16        (i) if the use of the motor vehicle is otherwise taxed
17    under the Use Tax Act;
18        (ii) if the motor vehicle is bought and used by a
19    governmental agency or a society, association, foundation
20    or institution organized and operated exclusively for
21    charitable, religious or educational purposes;
22        (iii) if the use of the motor vehicle is not subject to
23    the Use Tax Act by reason of subsection (a), (b), (c), (d),
24    (e) or (f) of Section 3-55 of that Act dealing with the

 

 

HB3539- 99 -LRB099 09668 HLH 29877 b

1    prevention of actual or likely multistate taxation;
2        (iv) to implements of husbandry;
3        (v) when a junking certificate is issued pursuant to
4    Section 3-117(a) of this Code;
5        (vi) when a vehicle is subject to the replacement
6    vehicle tax imposed by Section 3-2001 of this Act;
7        (vii) when the transfer is a gift to a beneficiary in
8    the administration of an estate and the beneficiary is a
9    surviving spouse.
10    Prior to January 1, 1988, the rate of tax shall be 5% of
11the selling price for each purchase of a motor vehicle covered
12by Section 3-1001 of this Code. Except as hereinafter provided,
13beginning January 1, 1988, the rate of tax shall be as follows
14for transactions in which the selling price of the motor
15vehicle is less than $15,000:
16Number of Years Transpired AfterApplicable Tax
17Model Year of Motor Vehicle
181 or less$390
192290
203215
214165
225115
23690
24780
25865
26950

 

 

HB3539- 100 -LRB099 09668 HLH 29877 b

11040
2over 1025
3Except as hereinafter provided, beginning January 1, 1988, the
4rate of tax shall be as follows for transactions in which the
5selling price of the motor vehicle is $15,000 or more:
6Selling PriceApplicable Tax
7$15,000 - $19,999$ 750
8$20,000 - $24,999$1,000
9$25,000 - $29,999$1,250
10$30,000 and over$1,500
11For the following transactions, the tax rate shall be $15 for
12each motor vehicle acquired in such transaction:
13        (i) when the transferee or purchaser is the spouse,
14    mother, father, brother, sister or child of the transferor;
15        (ii) when the transfer is a gift to a beneficiary in
16    the administration of an estate and the beneficiary is not
17    a surviving spouse;
18        (iii) when a motor vehicle which has once been
19    subjected to the Illinois retailers' occupation tax or use
20    tax is transferred in connection with the organization,
21    reorganization, dissolution or partial liquidation of an
22    incorporated or unincorporated business wherein the
23    beneficial ownership is not changed.
24    A claim that the transaction is taxable under subparagraph
25(i) shall be supported by such proof of family relationship as
26provided by rules of the Department.

 

 

HB3539- 101 -LRB099 09668 HLH 29877 b

1    For a transaction in which a motorcycle, motor driven cycle
2or moped is acquired the tax rate shall be $25.
3    On and after October 1, 1985, 1/12 of $5,000,000 of the
4moneys received by the Department of Revenue pursuant to this
5Section shall be paid each month into the Build Illinois Fund
6and 0.1% of the remaining moneys shall be deposited into the
7Use and Occupation Tax Refund Fund. The the remainder shall be
8deposited into the General Revenue Fund.
9    The tax imposed by this Section shall be abated and no
10longer imposed when the amount deposited to secure the bonds
11issued pursuant to the Build Illinois Bond Act is sufficient to
12provide for the payment of the principal of, and interest and
13premium, if any, on the bonds, as certified to the State
14Comptroller and the Director of Revenue by the Director of the
15Governor's Office of Management and Budget.
16(Source: P.A. 96-554, eff. 1-1-10.)
 
17    Section 30. The State Finance Act is amended by adding
18Section 5.866 as follows:
 
19    (30 ILCS 105/5.866 new)
20    Sec. 5.866. The Use and Occupation Tax Refund Fund.
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.