99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3550

 

Introduced , by Rep. David Harris

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the State Finance Act to create the Sales and Excise Tax Refund Fund. Provides that moneys in the Fund shall be used by the Department of Revenue to pay refunds under various tax Acts. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act to provide that 0.18% of 80% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of tangible personal property shall be deposited each month into the Sales and Excise Tax Refund Fund. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, the Cigarette Machine Operators' Occupation Tax Act, the Cigarette Tax Act, the Cigarette Use Tax Act, the Coin-Operated Amusement Device and Redemption Machine Tax Act, the Messages Tax Act, the Gas Revenue Tax Act, the Public Utilities Revenue Act, the Water Company Invested Capital Tax Act, the Telecommunications Excise Tax Act, and the Liquor Control Act of 1934 to provide that refunds shall be made under those Acts from the Sales and Excise Tax Refund Fund (instead of from appropriations made available for that purpose). Effective July 1, 2015.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3550LRB099 11063 HLH 31454 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 State Finance Act is amended by adding
5Sections 5.866 and 6z-101 as follows:
 
6    (30 ILCS 105/5.866 new)
7    Sec. 5.866. The Sales and Excise Tax Refund Fund.
 
8    (30 ILCS 105/6z-101 new)
9    Sec. 6z-101. The Sales and Excise Tax Refund Fund.
10    (a) The Sales and Excise Tax Refund Fund is hereby created
11as a special fund in the State Treasury. Moneys in the Fund
12shall be used by the Department of Revenue to pay refunds as
13provided in Section 19 of the Use Tax Act, Section 17 of the
14Service Use Tax Act, Section 17 of the Service Occupation Tax
15Act, Section 6 of the Retailers' Occupation Tax Act, Section
161-55 of the Cigarette Machine Operators' Occupation Tax Act,
17Section 9d of the Cigarette Tax Act, Section 14a of the
18Cigarette Use Tax Act, Section 2 of the Coin-Operated Amusement
19Device and Redemption Machine Tax Act, Section 6 of the
20Messages Tax Act, Section 6 of the Gas Revenue Tax Act, Section
216 of the Public Utilities Revenue Act, Section 6 of the Water
22Company Invested Capital Tax Act, Section 10 of the

 

 

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1Telecommunications Excise Tax Act, Section 8-3 of the Liquor
2Control Act, and any other Act that authorizes, either directly
3or by incorporation of provisions of another Act, payment of
4refunds out of the Fund, as well as to pay to the State
5Treasurer the amount of any credit memorandums or refunds under
6the Acts covered by this Section that qualify as unclaimed
7property under the Uniform Disposition of Unclaimed Property
8Act.
9    (b) Moneys in the Sales and Excise Tax Refund Fund shall be
10expended exclusively for the purpose of paying refunds, paying
11unclaimed property, and making transfers, all pursuant to this
12Section.
13    (c) The Director of Revenue shall order payment of refunds
14under this Section from the Sales and Excise Tax Refund Fund
15only to the extent that amounts collected pursuant to Section 3
16of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
17Act, Section 9 of the Service Occupation Tax Act, and Section 9
18of the Service Use Tax Act have been deposited and retained in
19the Fund.
20    As soon as possible after the end of each fiscal year, the
21Director of Revenue shall order transferred and the State
22Treasurer and State Comptroller shall transfer from the Sales
23and Excise Tax Refund Fund to the General Revenue Fund any
24surplus remaining in the Sales and Excise Tax Refund Fund as of
25the end of such fiscal year.
26    This Section shall constitute an irrevocable and

 

 

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1continuing appropriation from the Sales and Excise Tax Refund
2Fund for the purpose of paying refunds and unclaimed property
3upon the order of the Director in accordance with the
4provisions of this Section.
 
5    Section 10. The Use Tax Act is amended by changing Sections
69 and 19 as follows:
 
7    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
8    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
9and trailers that are required to be registered with an agency
10of this State, each retailer required or authorized to collect
11the tax imposed by this Act shall pay to the Department the
12amount of such tax (except as otherwise provided) at the time
13when he is required to file his return for the period during
14which such tax was collected, less a discount of 2.1% prior to
15January 1, 1990, and 1.75% on and after January 1, 1990, or $5
16per calendar year, whichever is greater, which is allowed to
17reimburse the retailer for expenses incurred in collecting the
18tax, keeping records, preparing and filing returns, remitting
19the tax and supplying data to the Department on request. In the
20case of retailers who report and pay the tax on a transaction
21by transaction basis, as provided in this Section, such
22discount shall be taken with each such tax remittance instead
23of when such retailer files his periodic return. The Department
24may 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

 

 

HB3550- 21 -LRB099 11063 HLH 31454 b

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    Of the remainder of the moneys received by the Department
13pursuant to this Act, (a) 1.75% thereof shall be paid into the
14Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
15and after July 1, 1989, 3.8% thereof shall be paid into the
16Build Illinois Fund; provided, however, that if in any fiscal
17year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
18may be, of the moneys received by the Department and required
19to be paid into the Build Illinois Fund pursuant to Section 3
20of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
21Act, Section 9 of the Service Use Tax Act, and Section 9 of the
22Service Occupation Tax Act, such Acts being hereinafter called
23the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
24may be, of moneys being hereinafter called the "Tax Act
25Amount", and (2) the amount transferred to the Build Illinois
26Fund from the State and Local Sales Tax Reform Fund shall be

 

 

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

 

 

HB3550- 23 -LRB099 11063 HLH 31454 b

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

 

 

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1thereto hereafter enacted, the following specified monthly
2installment of the amount requested in the certificate of the
3Chairman of the Metropolitan Pier and Exposition Authority
4provided under Section 8.25f of the State Finance Act, but not
5in excess of the sums designated as "Total Deposit", shall be
6deposited in the aggregate from collections under Section 9 of
7the Use Tax Act, Section 9 of the Service Use Tax Act, Section
89 of the Service Occupation Tax Act, and Section 3 of the
9Retailers' Occupation Tax Act into the McCormick Place
10Expansion Project Fund in the specified fiscal years.
11Fiscal YearTotal Deposit
121993         $0
131994 53,000,000
141995 58,000,000
151996 61,000,000
161997 64,000,000
171998 68,000,000
181999 71,000,000
192000 75,000,000
202001 80,000,000
212002 93,000,000
222003 99,000,000
232004103,000,000
242005108,000,000
252006113,000,000
262007119,000,000

 

 

HB3550- 25 -LRB099 11063 HLH 31454 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

 

 

HB3550- 26 -LRB099 11063 HLH 31454 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    Beginning on July 1, 2015, subject to payment of amounts
22into the Capital Projects Fund, the Clean Air Act (CAA) Permit
23Fund, the Build Illinois Fund, and the McCormick Place
24Expansion Project Fund pursuant to the preceding paragraphs or
25in any amendments thereto hereafter enacted, the Department
26shall each month deposit into the Sales and Excise Tax Refund

 

 

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1Fund 0.18% of 80% of the net revenue realized for the preceding
2month from the 6.25% general rate on the selling price of
3tangible 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 July 1, 1993 and ending on September 30,
82013, the Department shall each month pay into the Illinois Tax
9Increment Fund 0.27% of 80% of the net revenue realized for the
10preceding month from the 6.25% general rate on the selling
11price of tangible personal property.
12    Subject to payment of amounts into the Build Illinois Fund
13and the McCormick Place Expansion Project Fund pursuant to the
14preceding paragraphs or in any amendments thereto hereafter
15enacted, beginning with the receipt of the first report of
16taxes paid by an eligible business and continuing for a 25-year
17period, the Department shall each month pay into the Energy
18Infrastructure Fund 80% of the net revenue realized from the
196.25% general rate on the selling price of Illinois-mined coal
20that was sold to an eligible business. For purposes of this
21paragraph, the term "eligible business" means a new electric
22generating facility certified pursuant to Section 605-332 of
23the Department of Commerce and Economic Opportunity Law of the
24Civil Administrative Code of Illinois.
25    Subject to payment of amounts into the Build Illinois Fund,
26the McCormick Place Expansion Project Fund, the Illinois Tax

 

 

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

 

 

HB3550- 29 -LRB099 11063 HLH 31454 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(Source: P.A. 97-95, eff. 7-12-11; 97-333, eff. 8-12-11; 98-24,
17eff. 6-19-13; 98-109, eff. 7-25-13; 98-496, eff. 1-1-14;
1898-756, eff. 7-16-14; 98-1098, eff. 8-26-14.)
 
19    (35 ILCS 105/19)  (from Ch. 120, par. 439.19)
20    Sec. 19. If it shall appear that an amount of tax or
21penalty or interest has been paid in error hereunder to the
22Department by a purchaser, as distinguished from the retailer,
23whether such amount be paid through a mistake of fact or an
24error of law, such purchaser may file a claim for credit or
25refund with the Department in accordance with Sections 6, 6a,

 

 

HB3550- 30 -LRB099 11063 HLH 31454 b

16b, and 6c of the Retailers' Occupation Tax Act. If it shall
2appear that an amount of tax or penalty or interest has been
3paid in error to the Department hereunder by a retailer who is
4required or authorized to collect and remit the use tax,
5whether such amount be paid through a mistake of fact or an
6error of law, such retailer may file a claim for credit or
7refund with the Department in accordance with Sections 6, 6a,
86b, and 6c of the Retailers' Occupation Tax Act, provided that
9no credit or refund shall be allowed for any amount paid by any
10such retailer unless it shall appear that he bore the burden of
11such amount and did not shift the burden thereof to anyone else
12(as in the case of a duplicated tax payment which the retailer
13made to the Department and did not collect from anyone else),
14or unless it shall appear that he or she or his or her legal
15representative has unconditionally repaid such amount to his
16vendee (1) who bore the burden thereof and has not shifted such
17burden directly or indirectly in any manner whatsoever; (2)
18who, if he has shifted such burden, has repaid unconditionally
19such amount to his or her own vendee, and (3) who is not
20entitled to receive any reimbursement therefor from any other
21source than from his vendor, nor to be relieved of such burden
22in any other manner whatsoever. If it shall appear that an
23amount of tax has been paid in error hereunder by the purchaser
24to a retailer, who retained such tax as reimbursement for his
25or her tax liability on the same sale under the Retailers'
26Occupation Tax Act, and who remitted the amount involved to the

 

 

HB3550- 31 -LRB099 11063 HLH 31454 b

1Department under the Retailers' Occupation Tax Act, whether
2such amount be paid through a mistake of fact or an error of
3law, the procedure for recovering such tax shall be that
4prescribed in Sections 6, 6a, 6b and 6c of the Retailers'
5Occupation Tax Act.
6    Any credit or refund that is allowed under this Section
7shall bear interest at the rate and in the manner specified in
8the Uniform Penalty and Interest Act.
9    Any claim filed hereunder shall be filed upon a form
10prescribed and furnished by the Department. The claim shall be
11signed by the claimant (or by the claimant's legal
12representative if the claimant shall have died or become a
13person under legal disability), or by a duly authorized agent
14of the claimant or his or her legal representative.
15    A claim for credit or refund shall be considered to have
16been filed with the Department on the date upon which it is
17received by the Department. Upon receipt of any claim for
18credit or refund filed under this Act, any officer or employee
19of the Department, authorized in writing by the Director of
20Revenue to acknowledge receipt of such claims on behalf of the
21Department, shall execute on behalf of the Department, and
22shall deliver or mail to the claimant or his duly authorized
23agent, a written receipt, acknowledging that the claim has been
24filed with the Department, describing the claim in sufficient
25detail to identify it and stating the date upon which the claim
26was received by the Department. Such written receipt shall be

 

 

HB3550- 32 -LRB099 11063 HLH 31454 b

1prima facie evidence that the Department received the claim
2described in such receipt and shall be prima facie evidence of
3the date when such claim was received by the Department. In the
4absence of such a written receipt, the records of the
5Department as to when the claim was received by the Department,
6or as to whether or not the claim was received at all by the
7Department, shall be deemed to be prima facie correct upon
8these questions in the event of any dispute between the
9claimant (or his or her legal representative) and the
10Department concerning these questions.
11    In case the Department determines that the claimant is
12entitled to a refund, such refund shall be made only from the
13Sales and Excise Tax Refund Fund such appropriation as may be
14available for that purpose. If it appears unlikely that the
15amount available appropriated would permit everyone having a
16claim allowed during the period covered by such appropriation
17to elect to receive a cash refund, the Department, by rule or
18regulation, shall provide for the payment of refunds in
19hardship cases and shall define what types of cases qualify as
20hardship cases.
21    If a retailer who has failed to pay use tax on gross
22receipts from retail sales is required by the Department to pay
23such tax, such retailer, without filing any formal claim with
24the Department, shall be allowed to take credit against such
25use tax liability to the extent, if any, to which such retailer
26has paid an amount equivalent to retailers' occupation tax or

 

 

HB3550- 33 -LRB099 11063 HLH 31454 b

1has paid use tax in error to his or her vendor or vendors of the
2same tangible personal property which such retailer bought for
3resale and did not first use before selling it, and no penalty
4or interest shall be charged to such retailer on the amount of
5such credit. However, when such credit is allowed to the
6retailer by the Department, the vendor is precluded from
7refunding any of that tax to the retailer and filing a claim
8for credit or refund with respect thereto with the Department.
9The provisions of this amendatory Act shall be applied
10retroactively, regardless of the date of the transaction.
11(Source: P.A. 90-562, eff. 12-16-97.)
 
12    Section 15. The Service Use Tax Act is amended by changing
13Sections 9 and 17 as follows:
 
14    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
15    Sec. 9. Each serviceman required or authorized to collect
16the tax herein imposed shall pay to the Department the amount
17of such tax (except as otherwise provided) at the time when he
18is required to file his return for the period during which such
19tax was collected, less a discount of 2.1% prior to January 1,
201990 and 1.75% on and after January 1, 1990, or $5 per calendar
21year, whichever is greater, which is allowed to reimburse the
22serviceman for expenses incurred in collecting the tax, keeping
23records, preparing and filing returns, remitting the tax and
24supplying data to the Department on request. The Department may

 

 

HB3550- 34 -LRB099 11063 HLH 31454 b

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

 

 

HB3550- 35 -LRB099 11063 HLH 31454 b

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

 

 

HB3550- 36 -LRB099 11063 HLH 31454 b

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

 

 

HB3550- 37 -LRB099 11063 HLH 31454 b

1requirements of this Section.
2    If the serviceman is otherwise required to file a monthly
3return and if the serviceman'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 year
7being due by April 20 of such year; with the return for April,
8May and June of a given year being due by July 20 of such year;
9with the return for July, August and September of a given year
10being due by October 20 of such year, and with the return for
11October, November and December of a given year being due by
12January 20 of the following year.
13    If the serviceman is otherwise required to file a monthly
14or quarterly return and if the serviceman'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 serviceman may file his return, in the
24case of any serviceman who ceases to engage in a kind of
25business which makes him responsible for filing returns under
26this Act, such serviceman shall file a final return under this

 

 

HB3550- 38 -LRB099 11063 HLH 31454 b

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

 

 

HB3550- 39 -LRB099 11063 HLH 31454 b

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

 

 

HB3550- 40 -LRB099 11063 HLH 31454 b

1    Beginning August 1, 2000, each month the Department shall
2pay into the State and Local Sales Tax Reform Fund 100% of the
3net revenue realized for the preceding month from the 1.25%
4rate on the selling price of motor fuel and gasohol.
5    Beginning October 1, 2009, each month the Department shall
6pay into the Capital Projects Fund an amount that is equal to
7an amount estimated by the Department to represent 80% of the
8net revenue realized for the preceding month from the sale of
9candy, grooming and hygiene products, and soft drinks that had
10been taxed at a rate of 1% prior to September 1, 2009 but that
11are now taxed at 6.25%.
12    Beginning July 1, 2013, each month the Department shall pay
13into the Underground Storage Tank Fund from the proceeds
14collected under this Act, the Use Tax Act, the Service
15Occupation Tax Act, and the Retailers' Occupation Tax Act an
16amount equal to the average monthly deficit in the Underground
17Storage Tank Fund during the prior year, as certified annually
18by the Illinois Environmental Protection Agency, but the total
19payment into the Underground Storage Tank Fund under this Act,
20the Use Tax Act, the Service Occupation Tax Act, and the
21Retailers' Occupation Tax Act shall not exceed $18,000,000 in
22any State fiscal year. As used in this paragraph, the "average
23monthly deficit" shall be equal to the difference between the
24average monthly claims for payment by the fund and the average
25monthly revenues deposited into the fund, excluding payments
26made pursuant to this paragraph.

 

 

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

 

 

HB3550- 42 -LRB099 11063 HLH 31454 b

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

 

 

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

 

 

HB3550- 44 -LRB099 11063 HLH 31454 b

1Fiscal YearTotal Deposit
21993         $0
31994 53,000,000
41995 58,000,000
51996 61,000,000
61997 64,000,000
71998 68,000,000
81999 71,000,000
92000 75,000,000
102001 80,000,000
112002 93,000,000
122003 99,000,000
132004103,000,000
142005108,000,000
152006113,000,000
162007119,000,000
172008126,000,000
182009132,000,000
192010139,000,000
202011146,000,000
212012153,000,000
222013161,000,000
232014170,000,000
242015179,000,000
252016189,000,000

 

 

HB3550- 45 -LRB099 11063 HLH 31454 b

12017199,000,000
22018210,000,000
32019221,000,000
42020233,000,000
52021246,000,000
62022260,000,000
72023275,000,000
82024 275,000,000
92025 275,000,000
102026 279,000,000
112027 292,000,000
122028 307,000,000
132029 322,000,000
142030 338,000,000
152031 350,000,000
162032 350,000,000
17and
18each fiscal year
19thereafter that bonds
20are outstanding under
21Section 13.2 of the
22Metropolitan Pier and
23Exposition Authority Act,
24but not after fiscal year 2060.
25    Beginning July 20, 1993 and in each month of each fiscal
26year thereafter, one-eighth of the amount requested in the

 

 

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1certificate of the Chairman of the Metropolitan Pier and
2Exposition Authority for that fiscal year, less the amount
3deposited into the McCormick Place Expansion Project Fund by
4the State Treasurer in the respective month under subsection
5(g) of Section 13 of the Metropolitan Pier and Exposition
6Authority Act, plus cumulative deficiencies in the deposits
7required under this Section for previous months and years,
8shall be deposited into the McCormick Place Expansion Project
9Fund, until the full amount requested for the fiscal year, but
10not in excess of the amount specified above as "Total Deposit",
11has been deposited.
12    Beginning on July 1, 2015, subject to payment of amounts
13into the Capital Projects Fund, the Build Illinois Fund, and
14the McCormick Place Expansion Project Fund pursuant to the
15preceding paragraphs or in any amendments thereto hereafter
16enacted, the Department shall each month deposit into the Sales
17and Excise Tax Refund Fund 0.18% of 80% of the net revenue
18realized for the preceding month from the 6.25% general rate on
19the selling price of tangible personal property.
20    Subject to payment of amounts into the Build Illinois Fund
21and the McCormick Place Expansion Project Fund pursuant to the
22preceding paragraphs or in any amendments thereto hereafter
23enacted, beginning July 1, 1993 and ending on September 30,
242013, the Department shall each month pay into the Illinois Tax
25Increment Fund 0.27% of 80% of the net revenue realized for the
26preceding month from the 6.25% general rate on the selling

 

 

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

 

 

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1fund additional auditors and compliance personnel at the
2Department of Revenue, an amount equal to 1/12 of 5% of 80% of
3the cash receipts collected during the preceding fiscal year by
4the Audit Bureau of the Department under the Use Tax Act, the
5Service Use Tax Act, the Service Occupation Tax Act, the
6Retailers' Occupation Tax Act, and associated local occupation
7and use taxes administered by the Department.
8    Of the remainder of the moneys received by the Department
9pursuant to this Act, 75% thereof shall be paid into the
10General Revenue Fund of the State Treasury and 25% shall be
11reserved in a special account and used only for the transfer to
12the Common School Fund as part of the monthly transfer from the
13General Revenue Fund in accordance with Section 8a of the State
14Finance Act.
15    As soon as possible after the first day of each month, upon
16certification of the Department of Revenue, the Comptroller
17shall order transferred and the Treasurer shall transfer from
18the General Revenue Fund to the Motor Fuel Tax Fund an amount
19equal to 1.7% of 80% of the net revenue realized under this Act
20for the second preceding month. Beginning April 1, 2000, this
21transfer is no longer required and shall not be made.
22    Net revenue realized for a month shall be the revenue
23collected by the State pursuant to this Act, less the amount
24paid out during that month as refunds to taxpayers for
25overpayment of liability.
26(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;

 

 

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198-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
298-1098, eff. 8-26-14.)
 
3    (35 ILCS 110/17)  (from Ch. 120, par. 439.47)
4    Sec. 17. If it shall appear that an amount of tax or
5penalty or interest has been paid in error hereunder to the
6Department by a purchaser, as distinguished from the
7serviceman, whether such amount be paid through a mistake of
8fact or an error of law, such purchaser may file a claim for
9credit or refund with the Department. If it shall appear that
10an amount of tax or penalty or interest has been paid in error
11to the Department hereunder by a serviceman who is required or
12authorized to collect and remit the Service Use Tax, whether
13such amount be paid through a mistake of fact or an error of
14law, such serviceman may file a claim for credit or refund with
15the Department, provided that no credit shall be allowed or
16refund made for any amount paid by any such serviceman unless
17it shall appear that he bore the burden of such amount and did
18not shift the burden thereof to anyone else (as in the case of
19a duplicated tax payment which the serviceman made to the
20Department and did not collect from anyone else), or unless it
21shall appear that he or his legal representative has
22unconditionally repaid such amount to his vendee (1) who bore
23the burden thereof and has not shifted such burden directly or
24indirectly in any manner whatsoever; (2) who, if he has shifted
25such burden, has repaid unconditionally such amount to his own

 

 

HB3550- 50 -LRB099 11063 HLH 31454 b

1vendee, and (3) who is not entitled to receive any
2reimbursement therefor from any other source than from his
3vendor, nor to be relieved of such burden in any other manner
4whatsoever. If it shall appear that an amount of tax has been
5paid in error hereunder by the purchaser to a serviceman, who
6retained such tax as reimbursement for his tax liability on the
7same sale of service under the Service Occupation Tax Act, and
8who paid such tax as required by the Service Occupation Tax
9Act, whether such amount be paid through a mistake of fact or
10an error of law, the procedure for recovering such tax shall be
11that prescribed in Sections 17, 18, 19 and 20 of the Service
12Occupation Tax Act.
13    Any credit or refund that is allowed under this Section
14shall bear interest at the rate and in the manner specified in
15the Uniform Penalty and Interest Act.
16    Any claim filed hereunder shall be filed upon a form
17prescribed and furnished by the Department. The claim shall be
18signed by the claimant (or by the claimant's legal
19representative if the claimant shall have died or become a
20person under legal disability), or by a duly authorized agent
21of the claimant or his or her legal representative.
22    A claim for credit or refund shall be considered to have
23been filed with the Department on the date upon which it is
24received by the Department. Upon receipt of any claim for
25credit or refund filed under this Act, any officer or employee
26of the Department, authorized in writing by the Director of

 

 

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1Revenue to acknowledge receipt of such claims on behalf of the
2Department, shall execute on behalf of the Department, and
3shall deliver or mail to the claimant or his duly authorized
4agent, a written receipt, acknowledging that the claim has been
5filed with the Department, describing the claim in sufficient
6detail to identify it and stating the date upon which the claim
7was received by the Department. Such written receipt shall be
8prima facie evidence that the Department received the claim
9described in such receipt and shall be prima facie evidence of
10the date when such claim was received by the Department. In the
11absence of such a written receipt, the records of the
12Department as to when the claim was received by the Department,
13or as to whether or not the claim was received at all by the
14Department, shall be deemed to be prima facie correct upon
15these questions in the event of any dispute between the
16claimant (or his or her legal representative) and the
17Department concerning these questions.
18    In case the Department determines that the claimant is
19entitled to a refund, such refund shall be made only from the
20Sales and Excise Tax Refund Fund such appropriation as may be
21available for that purpose. If it appears unlikely that the
22amount available appropriated would permit everyone having a
23claim allowed during the period covered by such appropriation
24to elect to receive a cash refund, the Department, by rule or
25regulation, shall provide for the payment of refunds in
26hardship cases and shall define what types of cases qualify as

 

 

HB3550- 52 -LRB099 11063 HLH 31454 b

1hardship cases.
2(Source: P.A. 87-205.)
 
3    Section 20. The Service Occupation Tax Act is amended by
4changing Sections 9 and 17 as follows:
 
5    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
6    Sec. 9. Each serviceman required or authorized to collect
7the tax herein imposed shall pay to the Department the amount
8of such tax at the time when he is required to file his return
9for the period during which such tax was collectible, less a
10discount of 2.1% prior to January 1, 1990, and 1.75% on and
11after January 1, 1990, or $5 per calendar year, whichever is
12greater, which is allowed to reimburse the serviceman for
13expenses incurred in collecting the tax, keeping records,
14preparing and filing returns, remitting the tax and supplying
15data to the Department on request. The Department may disallow
16the discount for servicemen whose certificate of registration
17is revoked at the time the return is filed, but only if the
18Department's decision to revoke the certificate of
19registration has become final.
20    Where such tangible personal property is sold under a
21conditional sales contract, or under any other form of sale
22wherein the payment of the principal sum, or a part thereof, is
23extended beyond the close of the period for which the return is
24filed, the serviceman, in collecting the tax may collect, for

 

 

HB3550- 53 -LRB099 11063 HLH 31454 b

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

 

 

HB3550- 54 -LRB099 11063 HLH 31454 b

1        5. The amount of tax due;
2        5-5. The signature of the taxpayer; and
3        6. Such other reasonable information as the Department
4    may require.
5    If a taxpayer fails to sign a return within 30 days after
6the proper notice and demand for signature by the Department,
7the return shall be considered valid and any amount shown to be
8due on the return shall be deemed assessed.
9    Prior to October 1, 2003, and on and after September 1,
102004 a serviceman may accept a Manufacturer's Purchase Credit
11certification from a purchaser in satisfaction of Service Use
12Tax as provided in Section 3-70 of the Service Use Tax Act if
13the purchaser provides the appropriate documentation as
14required by Section 3-70 of the Service Use Tax Act. A
15Manufacturer's Purchase Credit certification, accepted prior
16to October 1, 2003 or on or after September 1, 2004 by a
17serviceman as provided in Section 3-70 of the Service Use Tax
18Act, may be used by that serviceman to satisfy Service
19Occupation Tax liability in the amount claimed in the
20certification, not to exceed 6.25% of the receipts subject to
21tax from a qualifying purchase. A Manufacturer's Purchase
22Credit reported on any original or amended return filed under
23this Act after October 20, 2003 for reporting periods prior to
24September 1, 2004 shall be disallowed. Manufacturer's Purchase
25Credit reported on annual returns due on or after January 1,
262005 will be disallowed for periods prior to September 1, 2004.

 

 

HB3550- 55 -LRB099 11063 HLH 31454 b

1No Manufacturer's Purchase Credit may be used after September
230, 2003 through August 31, 2004 to satisfy any tax liability
3imposed under this Act, including any audit liability.
4    If the serviceman's average monthly tax liability to the
5Department does not exceed $200, the Department may authorize
6his returns to be filed on a quarter annual basis, with the
7return for January, February and March of a given year being
8due by April 20 of such year; with the return for April, May
9and June of a given year being due by July 20 of such year; with
10the return for July, August and September of a given year being
11due 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 serviceman's average monthly tax liability to the
15Department does not exceed $50, the Department may authorize
16his returns to be filed on an annual basis, with the return for
17a given year being due by January 20 of the following 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

 

 

HB3550- 56 -LRB099 11063 HLH 31454 b

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

 

 

HB3550- 57 -LRB099 11063 HLH 31454 b

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

 

 

HB3550- 58 -LRB099 11063 HLH 31454 b

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

 

 

HB3550- 59 -LRB099 11063 HLH 31454 b

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

 

 

HB3550- 60 -LRB099 11063 HLH 31454 b

1Act, and the Retailers' Occupation Tax Act an amount equal to
2the average monthly deficit in the Underground Storage Tank
3Fund during the prior year, as certified annually by the
4Illinois Environmental Protection Agency, but the total
5payment into the Underground Storage Tank Fund under this Act,
6the Use Tax Act, the Service Use Tax Act, and the Retailers'
7Occupation Tax Act shall not exceed $18,000,000 in any State
8fiscal year. As used in this paragraph, the "average monthly
9deficit" shall be equal to the difference between the average
10monthly claims for payment by the fund and the average monthly
11revenues deposited into the fund, excluding payments made
12pursuant to this paragraph.
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

 

 

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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 Account in the
9Build 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

 

 

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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

 

 

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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

 

 

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12006113,000,000
22007119,000,000
32008126,000,000
42009132,000,000
52010139,000,000
62011146,000,000
72012153,000,000
82013161,000,000
92014170,000,000
102015179,000,000
112016189,000,000
122017199,000,000
132018210,000,000
142019221,000,000
152020233,000,000
162021246,000,000
172022260,000,000
182023275,000,000
192024 275,000,000
202025 275,000,000
212026 279,000,000
222027 292,000,000
232028 307,000,000
242029 322,000,000
252030 338,000,000
262031 350,000,000

 

 

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12032 350,000,000
2and
3each fiscal year
4thereafter that bonds
5are outstanding under
6Section 13.2 of the
7Metropolitan Pier and
8Exposition Authority Act,
9but not after fiscal year 2060.
10    Beginning July 20, 1993 and in each month of each fiscal
11year thereafter, one-eighth of the amount requested in the
12certificate of the Chairman of the Metropolitan Pier and
13Exposition Authority for that fiscal year, less the amount
14deposited into the McCormick Place Expansion Project Fund by
15the State Treasurer in the respective month under subsection
16(g) of Section 13 of the Metropolitan Pier and Exposition
17Authority Act, plus cumulative deficiencies in the deposits
18required under this Section for previous months and years,
19shall be deposited into the McCormick Place Expansion Project
20Fund, until the full amount requested for the fiscal year, but
21not in excess of the amount specified above as "Total Deposit",
22has been deposited.
23    Beginning on July 1, 2015, subject to payment of amounts
24into the Capital Projects Fund, the Build Illinois Fund, and
25the McCormick Place Expansion Project Fund pursuant to the
26preceding paragraphs or in any amendments thereto hereafter

 

 

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1enacted, the Department shall each month deposit into the Sales
2and Excise Tax Refund Fund 0.18% of 80% of the net revenue
3realized for the preceding month from the 6.25% general rate on
4the selling price of tangible personal property.
5    Subject to payment of amounts into the Build Illinois Fund
6and the McCormick Place Expansion Project Fund pursuant to the
7preceding paragraphs or in any amendments thereto hereafter
8enacted, beginning July 1, 1993 and ending on September 30,
92013, the Department shall each month pay into the Illinois Tax
10Increment Fund 0.27% of 80% of the net revenue realized for the
11preceding month from the 6.25% general rate on the selling
12price of tangible personal property.
13    Subject to payment of amounts into the Build Illinois Fund
14and the McCormick Place Expansion Project Fund pursuant to the
15preceding paragraphs or in any amendments thereto hereafter
16enacted, beginning with the receipt of the first report of
17taxes paid by an eligible business and continuing for a 25-year
18period, the Department shall each month pay into the Energy
19Infrastructure Fund 80% of the net revenue realized from the
206.25% general rate on the selling price of Illinois-mined coal
21that was sold to an eligible business. For purposes of this
22paragraph, the term "eligible business" means a new electric
23generating facility certified pursuant to Section 605-332 of
24the Department of Commerce and Economic Opportunity Law of the
25Civil Administrative Code of Illinois.
26    Subject to payment of amounts into the Build Illinois Fund,

 

 

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

 

 

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

 

 

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1    for a penalty equal to 1/6 of 1% of the tax due from such
2    taxpayer under this Act during the period to be covered by
3    the annual return for each month or fraction of a month
4    until such return is filed as required, the penalty to be
5    assessed and collected in the same manner as any other
6    penalty provided for in this Act.
7        (ii) On and after January 1, 1994, the taxpayer shall
8    be liable for a penalty as described in Section 3-4 of the
9    Uniform Penalty and Interest Act.
10    The chief executive officer, proprietor, owner or highest
11ranking manager shall sign the annual return to certify the
12accuracy of the information contained therein. Any person who
13willfully signs the annual return containing false or
14inaccurate information shall be guilty of perjury and punished
15accordingly. The annual return form prescribed by the
16Department shall include a warning that the person signing the
17return may be liable for perjury.
18    The foregoing portion of this Section concerning the filing
19of an annual information return shall not apply to a serviceman
20who is not required to file an income tax return with the
21United States Government.
22    As soon as possible after the first day of each month, upon
23certification of the Department of Revenue, the Comptroller
24shall order transferred and the Treasurer shall transfer from
25the General Revenue Fund to the Motor Fuel Tax Fund an amount
26equal to 1.7% of 80% of the net revenue realized under this Act

 

 

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1for the second preceding month. Beginning April 1, 2000, this
2transfer is no longer required and shall not be made.
3    Net revenue realized for a month shall be the revenue
4collected by the State pursuant to this Act, less the amount
5paid out during that month as refunds to taxpayers for
6overpayment of liability.
7    For greater simplicity of administration, it shall be
8permissible for manufacturers, importers and wholesalers whose
9products are sold by numerous servicemen in Illinois, and who
10wish to do so, to assume the responsibility for accounting and
11paying to the Department all tax accruing under this Act with
12respect to such sales, if the servicemen who are affected do
13not make written objection to the Department to this
14arrangement.
15(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
1698-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
1798-1098, eff. 8-26-14.)
 
18    (35 ILCS 115/17)  (from Ch. 120, par. 439.117)
19    Sec. 17. If it shall appear that an amount of tax or
20penalty or interest has been paid in error hereunder directly
21to the Department by a serviceman, whether such amount be paid
22through a mistake of fact or an error of law, such serviceman
23may file a claim for credit or refund with the Department. If
24it shall appear that an amount of tax or penalty or interest
25has been paid in error to the Department hereunder by a

 

 

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1supplier who is required or authorized to collect and remit the
2Service Occupation Tax, whether such amount be paid through a
3mistake of fact or an error of law, such supplier may file a
4claim for credit or refund with the Department, provided that
5no credit shall be allowed nor any refund made for any amount
6paid by any such supplier unless it shall appear that he bore
7the burden of such amount and did not shift the burden thereof
8to anyone else (as in the case of a duplicated tax payment
9which the supplier made to the Department and did not collect
10from anyone else), or unless it shall appear that he or his
11legal representative has unconditionally repaid such amount to
12his vendee (1) who bore the burden thereof and has not shifted
13such burden directly or indirectly in any manner whatsoever;
14(2) who, if he has shifted such burden, has repaid
15unconditionally such amount to his own vendee, and (3) who is
16not entitled to receive any reimbursement therefor from any
17other source than from his supplier, nor to be relieved of such
18burden in any other manner whatsoever.
19    Any credit or refund that is allowed under this Section
20shall bear interest at the rate and in the manner specified in
21the Uniform Penalty and Interest Act.
22    Any claim filed hereunder shall be filed upon a form
23prescribed and furnished by the Department. The claim shall be
24signed by the claimant (or by the claimant's legal
25representative if the claimant shall have died or become a
26person under legal disability), or by a duly authorized agent

 

 

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1of the claimant or his or her legal representative.
2    A claim for credit or refund shall be considered to have
3been filed with the Department on the date upon which it is
4received by the Department. Upon receipt of any claim for
5credit or refund filed under this Act, any officer or employee
6of the Department, authorized in writing by the Director of
7Revenue to acknowledge receipt of such claims on behalf of the
8Department, shall execute on behalf of the Department, and
9shall deliver or mail to the claimant or his or her duly
10authorized agent, a written receipt, acknowledging that the
11claim has been filed with the Department, describing the claim
12in sufficient detail to identify it and stating the date upon
13which the claim was received by the Department. Such written
14receipt shall be prima facie evidence that the Department
15received the claim described in such receipt and shall be prima
16facie evidence of the date when such claim was received by the
17Department. In the absence of such a written receipt, the
18records of the Department as to when the claim was received by
19the Department, or as to whether or not the claim was received
20at all by the Department, shall be deemed to be prima facie
21correct upon these questions in the event of any dispute
22between the claimant (or his legal representative) and the
23Department concerning these questions.
24    In case the Department determines that the claimant is
25entitled to a refund, such refund shall be made only from the
26Sales and Excise Tax Refund Fund such appropriation as may be

 

 

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1available for that purpose. If it appears unlikely that the
2amount available appropriated would permit everyone having a
3claim allowed during the period covered by such appropriation
4to elect to receive a cash refund, the Department, by rule or
5regulation, shall provide for the payment of refunds in
6hardship cases and shall define what types of cases qualify as
7hardship cases.
8(Source: P.A. 87-205.)
 
9    Section 25. The Retailers' Occupation Tax Act is amended by
10changing Sections 3 and 6 as follows:
 
11    (35 ILCS 120/3)  (from Ch. 120, par. 442)
12    Sec. 3. Except as provided in this Section, on or before
13the twentieth day of each calendar month, every person engaged
14in the business of selling tangible personal property at retail
15in this State during the preceding calendar month shall file a
16return with the Department, stating:
17        1. The name of the seller;
18        2. His residence address and the address of his
19    principal place of business and the address of the
20    principal place of business (if that is a different
21    address) from which he engages in the business of selling
22    tangible personal property at retail in this State;
23        3. Total amount of receipts received by him during the
24    preceding calendar month or quarter, as the case may be,

 

 

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1    from sales of tangible personal property, and from services
2    furnished, by him during such preceding calendar month or
3    quarter;
4        4. Total amount received by him during the preceding
5    calendar month or quarter on charge and time sales of
6    tangible personal property, and from services furnished,
7    by him prior to the month or quarter for which the return
8    is filed;
9        5. Deductions allowed by law;
10        6. Gross receipts which were received by him during the
11    preceding calendar month or quarter and upon the basis of
12    which the tax is imposed;
13        7. The amount of credit provided in Section 2d of this
14    Act;
15        8. The amount of tax due;
16        9. The signature of the taxpayer; and
17        10. Such other reasonable information as the
18    Department 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    Each return shall be accompanied by the statement of
24prepaid tax issued pursuant to Section 2e for which credit is
25claimed.
26    Prior to October 1, 2003, and on and after September 1,

 

 

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12004 a retailer may accept a Manufacturer's Purchase Credit
2certification from a purchaser in satisfaction of Use Tax as
3provided in Section 3-85 of the Use Tax Act if the purchaser
4provides the appropriate documentation as required by Section
53-85 of the Use Tax Act. A Manufacturer's Purchase Credit
6certification, accepted by a retailer prior to October 1, 2003
7and on and after September 1, 2004 as provided in Section 3-85
8of the Use Tax Act, may be used by that retailer to satisfy
9Retailers' Occupation Tax liability in the amount claimed in
10the certification, not to exceed 6.25% of the receipts subject
11to tax from a qualifying purchase. A Manufacturer's Purchase
12Credit reported on any original or amended return filed under
13this Act after October 20, 2003 for reporting periods prior to
14September 1, 2004 shall be disallowed. Manufacturer's
15Purchaser Credit reported on annual returns due on or after
16January 1, 2005 will be disallowed for periods prior to
17September 1, 2004. No Manufacturer's Purchase Credit may be
18used after September 30, 2003 through August 31, 2004 to
19satisfy any tax liability imposed under this Act, including any
20audit liability.
21    The Department may require returns to be filed on a
22quarterly basis. If so required, a return for each calendar
23quarter shall be filed on or before the twentieth day of the
24calendar month following the end of such calendar quarter. The
25taxpayer shall also file a return with the Department for each
26of the first two months of each calendar quarter, on or before

 

 

HB3550- 76 -LRB099 11063 HLH 31454 b

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

 

 

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

 

 

HB3550- 78 -LRB099 11063 HLH 31454 b

1distributor, or manufacturer shall furnish the sales
2information by personal delivery or by mail. For purposes of
3this paragraph, the term "electronic means" includes, but is
4not limited to, the use of a secure Internet website, e-mail,
5or facsimile.
6    If a total amount of less than $1 is payable, refundable or
7creditable, such amount shall be disregarded if it is less than
850 cents and shall be increased to $1 if it is 50 cents or more.
9    Beginning October 1, 1993, a taxpayer who has an average
10monthly tax liability of $150,000 or more shall make all
11payments required by rules of the Department by electronic
12funds transfer. Beginning October 1, 1994, a taxpayer who has
13an average monthly tax liability of $100,000 or more shall make
14all payments required by rules of the Department by electronic
15funds transfer. Beginning October 1, 1995, a taxpayer who has
16an average monthly tax liability of $50,000 or more shall make
17all payments required by rules of the Department by electronic
18funds transfer. Beginning October 1, 2000, a taxpayer who has
19an annual tax liability of $200,000 or more shall make all
20payments required by rules of the Department by electronic
21funds transfer. The term "annual tax liability" shall be the
22sum of the taxpayer's liabilities under this Act, and under all
23other State and local occupation and use tax laws administered
24by the Department, for the immediately preceding calendar year.
25The term "average monthly tax liability" shall be the sum of
26the taxpayer's liabilities under this Act, and under all other

 

 

HB3550- 79 -LRB099 11063 HLH 31454 b

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

 

 

HB3550- 80 -LRB099 11063 HLH 31454 b

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

 

 

HB3550- 81 -LRB099 11063 HLH 31454 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1transaction basis, as provided in this Section, such discount
2shall be taken with each such tax remittance instead of when
3such retailer files his periodic return. The Department may
4disallow the discount for retailers whose certificate of
5registration is revoked at the time the return is filed, but
6only if the Department's decision to revoke the certificate of
7registration has become final.
8    Before October 1, 2000, if the taxpayer's average monthly
9tax liability to the Department under this Act, the Use Tax
10Act, the Service Occupation Tax Act, and the Service Use Tax
11Act, excluding any liability for prepaid sales tax to be
12remitted in accordance with Section 2d of this Act, was $10,000
13or more during the preceding 4 complete calendar quarters, he
14shall file a return with the Department each month by the 20th
15day of the month next following the month during which such tax
16liability is incurred and shall make payments to the Department
17on or before the 7th, 15th, 22nd and last day of the month
18during which such liability is incurred. On and after October
191, 2000, if the taxpayer's average monthly tax liability to the
20Department under this Act, the Use Tax Act, the Service
21Occupation Tax Act, and the Service Use Tax Act, excluding any
22liability for prepaid sales tax to be remitted in accordance
23with Section 2d of this 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

 

 

HB3550- 88 -LRB099 11063 HLH 31454 b

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 by taxpayers having an average monthly tax liability
12of $10,000 or more as determined in the manner provided above
13shall continue until such taxpayer's average monthly liability
14to the Department during the preceding 4 complete calendar
15quarters (excluding the month of highest liability and the
16month of lowest liability) is less than $9,000, or until such
17taxpayer's average monthly liability to the Department as
18computed for each calendar quarter of the 4 preceding complete
19calendar quarter period is less than $10,000. However, if a
20taxpayer can show the Department that a substantial change in
21the taxpayer's business has occurred which causes the taxpayer
22to anticipate that his average monthly tax liability for the
23reasonably foreseeable future will fall below the $10,000
24threshold stated above, then such taxpayer may petition the
25Department for a change in such taxpayer's reporting status. On
26and after October 1, 2000, once applicable, the requirement of

 

 

HB3550- 90 -LRB099 11063 HLH 31454 b

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

 

 

HB3550- 91 -LRB099 11063 HLH 31454 b

1The Department shall make reasonable rules and regulations to
2govern the quarter monthly payment amount and quarter monthly
3payment dates for taxpayers who file on other than a calendar
4monthly basis.
5    The provisions of this paragraph apply before October 1,
62001. Without regard to whether a taxpayer is required to make
7quarter monthly payments as specified above, any taxpayer who
8is required by Section 2d of this Act to collect and remit
9prepaid taxes and has collected prepaid taxes which average in
10excess of $25,000 per month during the preceding 2 complete
11calendar quarters, shall file a return with the Department as
12required by Section 2f and shall make payments to the
13Department on or before the 7th, 15th, 22nd and last day of the
14month during which such liability is incurred. If the month
15during which such tax liability is incurred began prior to the
16effective date of this amendatory Act of 1985, each payment
17shall be in an amount not less than 22.5% of the taxpayer's
18actual liability under Section 2d. If the month during which
19such tax liability is incurred begins on or after January 1,
201986, each payment shall be in an amount equal to 22.5% of the
21taxpayer's actual liability for the month or 27.5% of the
22taxpayer's liability for the same calendar month of the
23preceding calendar year. If the month during which such tax
24liability is incurred begins on or after January 1, 1987, each
25payment shall be in an amount equal to 22.5% of the taxpayer's
26actual liability for the month or 26.25% of the taxpayer's

 

 

HB3550- 92 -LRB099 11063 HLH 31454 b

1liability for the same calendar month of the preceding year.
2The amount of such quarter monthly payments shall be credited
3against the final tax liability of the taxpayer's return for
4that month filed under this Section or Section 2f, as the case
5may be. Once applicable, the requirement of the making of
6quarter monthly payments to the Department pursuant to this
7paragraph shall continue until such taxpayer's average monthly
8prepaid tax collections during the preceding 2 complete
9calendar quarters is $25,000 or less. If any such quarter
10monthly payment is not paid at the time or in the amount
11required, the taxpayer shall be liable for penalties and
12interest on such difference, except insofar as the taxpayer has
13previously made payments for that month in excess of the
14minimum payments previously due.
15    The provisions of this paragraph apply on and after October
161, 2001. Without regard to whether a taxpayer is required to
17make quarter monthly payments as specified above, any taxpayer
18who is required by Section 2d of this Act to collect and remit
19prepaid taxes and has collected prepaid taxes that average in
20excess of $20,000 per month during the preceding 4 complete
21calendar quarters shall file a return with the Department as
22required by Section 2f and shall make payments to the
23Department on or before the 7th, 15th, 22nd and last day of the
24month during which the liability is incurred. Each payment
25shall be in an amount equal to 22.5% of the taxpayer's actual
26liability for the month or 25% of the taxpayer's liability for

 

 

HB3550- 93 -LRB099 11063 HLH 31454 b

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

 

 

HB3550- 94 -LRB099 11063 HLH 31454 b

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

 

 

HB3550- 95 -LRB099 11063 HLH 31454 b

1consumption) and prescription and nonprescription medicines,
2drugs, medical appliances and insulin, urine testing
3materials, syringes and needles used by diabetics.
4    Beginning January 1, 1990, each month the Department shall
5pay into the County and Mass Transit District Fund, a special
6fund in the State treasury which is hereby created, 4% of the
7net revenue realized for the preceding month from the 6.25%
8general rate.
9    Beginning August 1, 2000, each month the Department shall
10pay into the County and Mass Transit District Fund 20% of the
11net revenue realized for the preceding month from the 1.25%
12rate on the selling price of motor fuel and gasohol. Beginning
13September 1, 2010, each month the Department shall pay into the
14County and Mass Transit District Fund 20% of the net revenue
15realized for the preceding month from the 1.25% rate on the
16selling price of sales tax holiday items.
17    Beginning January 1, 1990, each month the Department shall
18pay into the Local Government Tax Fund 16% of the net revenue
19realized for the preceding month from the 6.25% general rate on
20the selling price of tangible personal property.
21    Beginning August 1, 2000, each month the Department shall
22pay into the Local Government Tax Fund 80% of the net revenue
23realized for the preceding month from the 1.25% rate on the
24selling price of motor fuel and gasohol. Beginning September 1,
252010, each month the Department shall pay into the Local
26Government Tax Fund 80% of the net revenue realized for the

 

 

HB3550- 96 -LRB099 11063 HLH 31454 b

1preceding month from the 1.25% rate on the selling price of
2sales tax holiday items.
3    Beginning October 1, 2009, each month the Department shall
4pay into the Capital Projects Fund an amount that is equal to
5an amount estimated by the Department to represent 80% of the
6net revenue realized for the preceding month from the sale of
7candy, grooming and hygiene products, and soft drinks that had
8been taxed at a rate of 1% prior to September 1, 2009 but that
9are now taxed at 6.25%.
10    Beginning July 1, 2011, each month the Department shall pay
11into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
12realized for the preceding month from the 6.25% general rate on
13the selling price of sorbents used in Illinois in the process
14of sorbent injection as used to comply with the Environmental
15Protection Act or the federal Clean Air Act, but the total
16payment into the Clean Air Act (CAA) Permit Fund under this Act
17and the Use Tax Act shall not exceed $2,000,000 in any fiscal
18year.
19    Beginning July 1, 2013, each month the Department shall pay
20into the Underground Storage Tank Fund from the proceeds
21collected under this Act, the Use Tax Act, the Service Use Tax
22Act, and the Service Occupation Tax Act an amount equal to the
23average monthly deficit in the Underground Storage Tank Fund
24during the prior year, as certified annually by the Illinois
25Environmental Protection Agency, but the total payment into the
26Underground Storage Tank Fund under this Act, the Use Tax Act,

 

 

HB3550- 97 -LRB099 11063 HLH 31454 b

1the Service Use Tax Act, and the Service Occupation Tax Act
2shall not exceed $18,000,000 in any State fiscal year. As used
3in this paragraph, the "average monthly deficit" shall be equal
4to the difference between the average monthly claims for
5payment by the fund and the average monthly revenues deposited
6into the fund, excluding payments made pursuant to this
7paragraph.
8    Of the remainder of the moneys received by the Department
9pursuant to this Act, (a) 1.75% thereof shall be paid into the
10Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
11and after July 1, 1989, 3.8% thereof shall be paid into the
12Build Illinois Fund; provided, however, that if in any fiscal
13year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
14may be, of the moneys received by the Department and required
15to be paid into the Build Illinois Fund pursuant to this Act,
16Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
17Act, and Section 9 of the Service Occupation Tax Act, such Acts
18being hereinafter called the "Tax Acts" and such aggregate of
192.2% or 3.8%, as the case may be, of moneys being hereinafter
20called the "Tax Act Amount", and (2) the amount transferred to
21the Build Illinois Fund from the State and Local Sales Tax
22Reform Fund shall be less than the Annual Specified Amount (as
23hereinafter defined), an amount equal to the difference shall
24be immediately paid into the Build Illinois Fund from other
25moneys received by the Department pursuant to the Tax Acts; the
26"Annual Specified Amount" means the amounts specified below for

 

 

HB3550- 98 -LRB099 11063 HLH 31454 b

1fiscal years 1986 through 1993:
2Fiscal YearAnnual Specified Amount
31986$54,800,000
41987$76,650,000
51988$80,480,000
61989$88,510,000
71990$115,330,000
81991$145,470,000
91992$182,730,000
101993$206,520,000;
11and means the Certified Annual Debt Service Requirement (as
12defined in Section 13 of the Build Illinois Bond Act) or the
13Tax Act Amount, whichever is greater, for fiscal year 1994 and
14each fiscal year thereafter; and further provided, that if on
15the last business day of any month the sum of (1) the Tax Act
16Amount required to be deposited into the Build Illinois Bond
17Account in the Build Illinois Fund during such month and (2)
18the amount transferred to the Build Illinois Fund from the
19State and Local Sales Tax Reform Fund shall have been less than
201/12 of the Annual Specified Amount, 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 in no event shall the
24payments required under the preceding proviso result in
25aggregate payments into the Build Illinois Fund pursuant to
26this clause (b) for any fiscal year in excess of the greater of

 

 

HB3550- 99 -LRB099 11063 HLH 31454 b

1(i) the Tax Act Amount or (ii) the Annual Specified Amount for
2such fiscal year. The amounts payable into the Build Illinois
3Fund under clause (b) of the first sentence in this paragraph
4shall be payable only until such time as the aggregate amount
5on deposit under each trust indenture securing Bonds issued and
6outstanding pursuant to the Build Illinois Bond Act is
7sufficient, taking into account any future investment income,
8to fully provide, in accordance with such indenture, for the
9defeasance of or the payment of the principal of, premium, if
10any, and interest on the Bonds secured by such indenture and on
11any Bonds expected to be issued thereafter and all fees and
12costs payable with respect thereto, all as certified by the
13Director of the Bureau of the Budget (now Governor's Office of
14Management and Budget). If on the last business day of any
15month in which Bonds are outstanding pursuant to the Build
16Illinois Bond Act, the aggregate of moneys deposited in the
17Build Illinois Bond Account in the Build Illinois Fund in such
18month shall be less than the amount required to be transferred
19in such month from the Build Illinois Bond Account to the Build
20Illinois Bond Retirement and Interest Fund pursuant to Section
2113 of the Build Illinois Bond Act, an amount equal to such
22deficiency shall be immediately paid from other moneys received
23by the Department pursuant to the Tax Acts to the Build
24Illinois Fund; provided, however, that any amounts paid to the
25Build Illinois Fund in any fiscal year pursuant to this
26sentence shall be deemed to constitute payments pursuant to

 

 

HB3550- 100 -LRB099 11063 HLH 31454 b

1clause (b) of the first sentence of this paragraph and shall
2reduce the amount otherwise payable for such fiscal year
3pursuant to that clause (b). The moneys received by the
4Department pursuant to this Act and required to be deposited
5into the Build Illinois Fund are subject to the pledge, claim
6and charge set forth in Section 12 of the Build Illinois Bond
7Act.
8    Subject to payment of amounts into the Build Illinois Fund
9as provided in the preceding paragraph or in any amendment
10thereto hereafter enacted, the following specified monthly
11installment of the amount requested in the certificate of the
12Chairman of the Metropolitan Pier and Exposition Authority
13provided under Section 8.25f of the State Finance Act, but not
14in excess of sums designated as "Total Deposit", shall be
15deposited in the aggregate from collections under Section 9 of
16the Use Tax Act, Section 9 of the Service Use Tax Act, Section
179 of the Service Occupation Tax Act, and Section 3 of the
18Retailers' Occupation Tax Act into the McCormick Place
19Expansion Project Fund in the specified fiscal years.
20Fiscal YearTotal Deposit
211993         $0
221994 53,000,000
231995 58,000,000
241996 61,000,000
251997 64,000,000

 

 

HB3550- 101 -LRB099 11063 HLH 31454 b

11998 68,000,000
21999 71,000,000
32000 75,000,000
42001 80,000,000
52002 93,000,000
62003 99,000,000
72004103,000,000
82005108,000,000
92006113,000,000
102007119,000,000
112008126,000,000
122009132,000,000
132010139,000,000
142011146,000,000
152012153,000,000
162013161,000,000
172014170,000,000
182015179,000,000
192016189,000,000
202017199,000,000
212018210,000,000
222019221,000,000
232020233,000,000
242021246,000,000
252022260,000,000
262023275,000,000

 

 

HB3550- 102 -LRB099 11063 HLH 31454 b

12024 275,000,000
22025 275,000,000
32026 279,000,000
42027 292,000,000
52028 307,000,000
62029 322,000,000
72030 338,000,000
82031 350,000,000
92032 350,000,000
10and
11each fiscal year
12thereafter that bonds
13are outstanding under
14Section 13.2 of the
15Metropolitan Pier and
16Exposition Authority Act,
17but not after fiscal year 2060.
18    Beginning July 20, 1993 and in each month of each fiscal
19year thereafter, one-eighth of the amount requested in the
20certificate of the Chairman of the Metropolitan Pier and
21Exposition Authority for that fiscal year, less the amount
22deposited into the McCormick Place Expansion Project Fund by
23the State Treasurer in the respective month under subsection
24(g) of Section 13 of the Metropolitan Pier and Exposition
25Authority Act, plus cumulative deficiencies in the deposits
26required under this Section for previous months and years,

 

 

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1shall be deposited into the McCormick Place Expansion Project
2Fund, until the full amount requested for the fiscal year, but
3not in excess of the amount specified above as "Total Deposit",
4has been deposited.
5    Beginning on July 1, 2015, subject to payment of amounts
6into the Capital Projects Fund, the Clean Air Act (CAA) Permit
7Fund, the Build Illinois Fund, and the McCormick Place
8Expansion Project Fund pursuant to the preceding paragraphs or
9in any amendments thereto hereafter enacted, the Department
10shall each month deposit into the Sales and Excise Tax Refund
11Fund 0.18% of 80% of the net revenue realized for the preceding
12month from the 6.25% general rate on the selling price of
13tangible personal property.
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 State
4Treasury and 25% shall be reserved in a special account and
5used only for the transfer to the Common School Fund as part of
6the monthly transfer from the General Revenue Fund in
7accordance with Section 8a of the State Finance Act.
8    The Department may, upon separate written notice to a
9taxpayer, require the taxpayer to prepare and file with the
10Department on a form prescribed by the Department within not
11less than 60 days after receipt of the notice an annual
12information return for the tax year specified in the notice.
13Such annual return to the Department shall include a statement
14of gross receipts as shown by the retailer's last Federal
15income tax return. If the total receipts of the business as
16reported in the Federal income tax return do not agree with the
17gross receipts reported to the Department of Revenue for the
18same period, the retailer shall attach to his annual return a
19schedule showing a reconciliation of the 2 amounts and the
20reasons for the difference. The retailer's annual return to the
21Department shall also disclose the cost of goods sold by the
22retailer during the year covered by such return, opening and
23closing inventories of such goods for such year, costs of goods
24used from stock or taken from stock and given away by the
25retailer during such year, payroll information of the
26retailer's business during such year and any additional

 

 

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

 

 

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1annual information return do not apply to a retailer who is not
2required to file an income tax return with the United States
3Government.
4    As soon as possible after the first day of each month, upon
5certification of the Department of Revenue, the Comptroller
6shall order transferred and the Treasurer shall transfer from
7the General Revenue Fund to the Motor Fuel Tax Fund an amount
8equal to 1.7% of 80% of the net revenue realized under this Act
9for the second preceding month. Beginning April 1, 2000, this
10transfer is no longer required and shall not be made.
11    Net revenue realized for a month shall be the revenue
12collected by the State pursuant to this Act, less the amount
13paid out during that month as refunds to taxpayers for
14overpayment of liability.
15    For greater simplicity of administration, manufacturers,
16importers and wholesalers whose products are sold at retail in
17Illinois by numerous retailers, and who wish to do so, may
18assume the responsibility for accounting and paying to the
19Department all tax accruing under this Act with respect to such
20sales, if the retailers who are affected do not make written
21objection to the Department to this arrangement.
22    Any person who promotes, organizes, provides retail
23selling space for concessionaires or other types of sellers at
24the Illinois State Fair, DuQuoin State Fair, county fairs,
25local fairs, art shows, flea markets and similar exhibitions or
26events, including any transient merchant as defined by Section

 

 

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

 

 

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1exhibition or event, or other evidence of a significant risk of
2loss of revenue to the State. The Department shall notify
3concessionaires and other sellers affected by the imposition of
4this requirement. In the absence of notification by the
5Department, the concessionaires and other sellers shall file
6their returns as otherwise required in this Section.
7(Source: P.A. 97-95, eff. 7-12-11; 97-333, eff. 8-12-11; 98-24,
8eff. 6-19-13; 98-109, eff. 7-25-13; 98-496, eff. 1-1-14;
998-756, eff. 7-16-14; 98-1098, eff. 8-26-14.)
 
10    (35 ILCS 120/6)  (from Ch. 120, par. 445)
11    Sec. 6. Credit memorandum or refund. If it appears, after
12claim therefor filed with the Department, that an amount of tax
13or penalty or interest has been paid which was not due under
14this Act, whether as the result of a mistake of fact or an
15error of law, except as hereinafter provided, then the
16Department shall issue a credit memorandum or refund to the
17person who made the erroneous payment or, if that person died
18or became a person under legal disability, to his or her legal
19representative, as such. For purposes of this Section, the tax
20is deemed to be erroneously paid by a retailer when the
21manufacturer of a motor vehicle sold by the retailer accepts
22the return of that automobile and refunds to the purchaser the
23selling price of that vehicle as provided in the New Vehicle
24Buyer Protection Act. When a motor vehicle is returned for a
25refund of the purchase price under the New Vehicle Buyer

 

 

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1Protection Act, the Department shall issue a credit memorandum
2or a refund for the amount of tax paid by the retailer under
3this Act attributable to the initial sale of that vehicle.
4Claims submitted by the retailer are subject to the same
5restrictions and procedures provided for in this Act. If it is
6determined that the Department should issue a credit memorandum
7or refund, the Department may first apply the amount thereof
8against any tax or penalty or interest due or to become due
9under this Act or under the Use Tax Act, the Service Occupation
10Tax Act, the Service Use Tax Act, any local occupation or use
11tax administered by the Department, Section 4 of the Water
12Commission Act of 1985, subsections (b), (c) and (d) of Section
135.01 of the Local Mass Transit District Act, or subsections
14(e), (f) and (g) of Section 4.03 of the Regional Transportation
15Authority Act, from the person who made the erroneous payment.
16If no tax or penalty or interest is due and no proceeding is
17pending to determine whether such person is indebted to the
18Department for tax or penalty or interest, the credit
19memorandum or refund shall be issued to the claimant; or (in
20the case of a credit memorandum) the credit memorandum may be
21assigned and set over by the lawful holder thereof, subject to
22reasonable rules of the Department, to any other person who is
23subject to this Act, the Use Tax Act, the Service Occupation
24Tax Act, the Service Use Tax Act, any local occupation or use
25tax administered by the Department, Section 4 of the Water
26Commission Act of 1985, subsections (b), (c) and (d) of Section

 

 

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15.01 of the Local Mass Transit District Act, or subsections
2(e), (f) and (g) of Section 4.03 of the Regional Transportation
3Authority Act, and the amount thereof applied by the Department
4against any tax or penalty or interest due or to become due
5under this Act or under the Use Tax Act, the Service Occupation
6Tax Act, the Service Use Tax Act, any local occupation or use
7tax administered by the Department, Section 4 of the Water
8Commission Act of 1985, subsections (b), (c) and (d) of Section
95.01 of the Local Mass Transit District Act, or subsections
10(e), (f) and (g) of Section 4.03 of the Regional Transportation
11Authority Act, from such assignee. However, as to any claim for
12credit or refund filed with the Department on and after each
13January 1 and July 1 no amount of tax or penalty or interest
14erroneously paid (either in total or partial liquidation of a
15tax or penalty or amount of interest under this Act) more than
163 years prior to such January 1 and July 1, respectively, shall
17be credited or refunded, except that if both the Department and
18the taxpayer have agreed to an extension of time to issue a
19notice of tax liability as provided in Section 4 of this Act,
20such claim may be filed at any time prior to the expiration of
21the period agreed upon.
22    No claim may be allowed for any amount paid to the
23Department, whether paid voluntarily or involuntarily, if paid
24in total or partial liquidation of an assessment which had
25become final before the claim for credit or refund to recover
26the amount so paid is filed with the Department, or if paid in

 

 

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1total or partial liquidation of a judgment or order of court.
2No credit may be allowed or refund made for any amount paid by
3or collected from any claimant unless it appears (a) that the
4claimant bore the burden of such amount and has not been
5relieved thereof nor reimbursed therefor and has not shifted
6such burden directly or indirectly through inclusion of such
7amount in the price of the tangible personal property sold by
8him or her or in any manner whatsoever; and that no
9understanding or agreement, written or oral, exists whereby he
10or she or his or her legal representative may be relieved of
11the burden of such amount, be reimbursed therefor or may shift
12the burden thereof; or (b) that he or she or his or her legal
13representative has repaid unconditionally such amount to his or
14her vendee (1) who bore the burden thereof and has not shifted
15such burden directly or indirectly, in any manner whatsoever;
16(2) who, if he or she has shifted such burden, has repaid
17unconditionally such amount to his own vendee; and (3) who is
18not entitled to receive any reimbursement therefor from any
19other source than from his or her vendor, nor to be relieved of
20such burden in any manner whatsoever. No credit may be allowed
21or refund made for any amount paid by or collected from any
22claimant unless it appears that the claimant has
23unconditionally repaid, to the purchaser, any amount collected
24from the purchaser and retained by the claimant with respect to
25the same transaction under the Use Tax Act.
26    Any credit or refund that is allowed under this Section

 

 

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1shall bear interest at the rate and in the manner specified in
2the Uniform Penalty and Interest Act.
3    In case the Department determines that the claimant is
4entitled to a refund, such refund shall be made only from the
5Sales and Excise Tax Refund Fund such appropriation as may be
6available for that purpose. If it appears unlikely that the
7amount available appropriated would permit everyone having a
8claim allowed during the period covered by such appropriation
9to elect to receive a cash refund, the Department, by rule or
10regulation, shall provide for the payment of refunds in
11hardship cases and shall define what types of cases qualify as
12hardship cases.
13    If a retailer who has failed to pay retailers' occupation
14tax on gross receipts from retail sales is required by the
15Department to pay such tax, such retailer, without filing any
16formal claim with the Department, shall be allowed to take
17credit against such retailers' occupation tax liability to the
18extent, if any, to which such retailer has paid an amount
19equivalent to retailers' occupation tax or has paid use tax in
20error to his or her vendor or vendors of the same tangible
21personal property which such retailer bought for resale and did
22not first use before selling it, and no penalty or interest
23shall be charged to such retailer on the amount of such credit.
24However, when such credit is allowed to the retailer by the
25Department, the vendor is precluded from refunding any of that
26tax to the retailer and filing a claim for credit or refund

 

 

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1with respect thereto with the Department. The provisions of
2this amendatory Act shall be applied retroactively, regardless
3of the date of the transaction.
4(Source: P.A. 91-901, eff. 1-1-01.)
 
5    Section 30. The Cigarette Machine Operators' Occupation
6Tax Act is amended by changing Section 1-55 as follows:
 
7    (35 ILCS 128/1-55)
8    Sec. 1-55. Claims; credit memorandum or refunds. If it
9appears, after claim is filed with the Department, that an
10amount of tax or penalty has been paid which was not due under
11this Act, whether as the result of a mistake of fact or an
12error of law, except as hereinafter provided, then the
13Department shall issue a credit memorandum or refund to the
14person who made the erroneous payment or, if that person has
15died or become a person under legal disability, to his or her
16legal representative.
17    If it is determined that the Department should issue a
18credit or refund under this Act, the Department may first apply
19the amount thereof against any amount of tax or penalty due
20under this Act, the Cigarette Tax Act, the Cigarette Use Tax
21Act, or the Tobacco Products Act of 1995 from the person
22entitled to that credit or refund. For this purpose, if
23proceedings are pending to determine whether or not any tax or
24penalty is due under this Act or under the Cigarette Tax Act,

 

 

HB3550- 115 -LRB099 11063 HLH 31454 b

1Cigarette Use Tax Act, or the Tobacco Products Act of 1995 from
2the person, the Department may withhold issuance of the credit
3or refund pending the final disposition of such proceedings and
4may apply such credit or refund against any amount found to be
5due to the Department under this Act, the Cigarette Tax Act,
6the Cigarette Use Tax Act, or the Tobacco Products Act of 1995
7as a result of such proceedings. The balance, if any, of the
8credit or refund shall be issued to the person entitled
9thereto.
10    If no tax or penalty is due and no proceeding is pending to
11determine whether such taxpayer is indebted to the Department
12for the payment of a tax or penalty, the credit memorandum or
13refund shall be issued to the claimant; or (in the case of a
14credit memorandum) the credit memorandum may be assigned and
15set over by the lawful holder thereof, subject to reasonable
16rules of the Department, to any other person who is subject to
17this Act, the Cigarette Tax Act, the Cigarette Use Tax Act, or
18the Tobacco Products Act of 1995, and the amount thereof shall
19be applied by the Department against any tax or penalty due or
20to become due under this Act, the Cigarette Tax Act, the
21Cigarette Use Tax Act, or the Tobacco Products Act of 1995 from
22such assignee.
23    As to any claim filed hereunder with the Department on and
24after each January 1 and July 1, no amount of tax or penalty
25erroneously paid (either in total or partial liquidation of a
26tax or penalty under this Act) more than 3 years prior to such

 

 

HB3550- 116 -LRB099 11063 HLH 31454 b

1January 1 and July 1, respectively, shall be credited or
2refunded, except that, if both the Department and the taxpayer
3have agreed to an extension of time to issue a notice of tax
4liability under this Act, the claim may be filed at any time
5prior to the expiration of the period agreed upon.
6    Any credit or refund that is allowed under this Act shall
7bear interest at the rate and in the manner set forth in the
8Uniform Penalty and Interest Act.
9    In case the Department determines that the claimant is
10entitled to a refund, such refund shall be made only from the
11Sales and Excise Tax Refund Fund as may be appropriations
12available for that purpose. If it appears unlikely that the
13amount available appropriated would permit everyone having a
14claim allowed during the period covered by such appropriation
15to elect to receive a cash refund, the Department, by rule or
16regulation, shall provide for the payment of refunds in
17hardship cases and shall define what types of cases qualify as
18hardship cases.
19    The provisions of Sections 6a, 6b, and 6c of the Retailers'
20Occupation Tax Act which are not inconsistent with this Act
21shall apply, as far as practicable, to the subject matter of
22this Act to the same extent as if such provisions were included
23herein.
24(Source: P.A. 97-688, eff. 6-14-12.)
 
25    Section 35. The Cigarette Tax Act is amended by changing

 

 

HB3550- 117 -LRB099 11063 HLH 31454 b

1Section 9d as follows:
 
2    (35 ILCS 130/9d)  (from Ch. 120, par. 453.9d)
3    Sec. 9d. If it appears, after claim therefor filed with the
4Department, that an amount of tax or penalty has been paid
5which was not due under this Act, whether as the result of a
6mistake of fact or an error of law, except as hereinafter
7provided, then the Department shall issue a credit memorandum
8or refund to the person who made the erroneous payment or, if
9that person has died or become a person under legal disability,
10to his or her legal representative, as such.
11    If it is determined that the Department should issue a
12credit or refund under this Act, the Department may first apply
13the amount thereof against any amount of tax or penalty due
14under this Act or under the Cigarette Use Tax Act from the
15person entitled to such credit or refund. For this purpose, if
16proceedings are pending to determine whether or not any tax or
17penalty is due under this Act or under the Cigarette Use Tax
18Act from such person, the Department may withhold issuance of
19the credit or refund pending the final disposition of such
20proceedings and may apply such credit or refund against any
21amount found to be due to the Department under this Act or
22under the Cigarette Use Tax Act as a result of such
23proceedings. The balance, if any, of the credit or refund shall
24be issued to the person entitled thereto.
25    If no tax or penalty is due and no proceeding is pending to

 

 

HB3550- 118 -LRB099 11063 HLH 31454 b

1determine whether such taxpayer is indebted to the Department
2for tax or penalty, the credit memorandum or refund shall be
3issued to the claimant; or (in the case of a credit memorandum)
4the credit memorandum may be assigned and set over by the
5lawful holder thereof, subject to reasonable rules of the
6Department, to any other person who is subject to this Act or
7the Cigarette Use Tax Act, and the amount thereof shall be
8applied by the Department against any tax or penalty due or to
9become due under this Act or under the Cigarette Use Tax Act
10from such assignee.
11    As to any claim filed hereunder with the Department on and
12after each January 1 and July 1, no amount of tax or penalty
13erroneously paid (either in total or partial liquidation of a
14tax or penalty under this Act) more than 3 years prior to such
15January 1 and July 1, respectively, shall be credited or
16refunded, except that if both the Department and the taxpayer
17have agreed to an extension of time to issue a notice of tax
18liability under this Act, the claim may be filed at any time
19prior to the expiration of the period agreed upon.
20    If the Department approves a claim for stamps affixed to a
21product returned to a manufacturer or for replacement of
22stamps, the credit memorandum shall not exceed the face value
23of stamps originally affixed, and replacement stamps shall be
24issued only in an amount equal to the value of the stamps
25previously affixed. Higher denomination stamps shall not be
26issued as replacements for lower value stamps. Distributors

 

 

HB3550- 119 -LRB099 11063 HLH 31454 b

1must prove the face value of the stamps which have been
2destroyed or returned to manufacturers when filing claims.
3    Any credit or refund that is allowed under this Act shall
4bear interest at the rate and in the manner set forth in the
5Uniform Penalty and Interest Act.
6    In case the Department determines that the claimant is
7entitled to a refund, such refund shall be made only from the
8Sales and Excise Tax Refund Fund such appropriation as may be
9available for that purpose. If it appears unlikely that the
10amount available appropriated would permit everyone having a
11claim allowed during the period covered by such appropriation
12to elect to receive a cash refund, the Department, by rule or
13regulation, shall provide for the payment of refunds in
14hardship cases and shall define what types of cases qualify as
15hardship cases.
16    If the Department approves a claim for the physical
17replacement of cigarette tax stamps, the Department (subject to
18the same limitations as those provided for hereinbefore in this
19Section) may issue an assignable credit memorandum or refund to
20the claimant or to the claimant's legal representative.
21    The provisions of Sections 6a, 6b and 6c of the Retailers'
22Occupation Tax Act which are not inconsistent with this Act,
23shall apply, as far as practicable, to the subject matter of
24this Act to the same extent as if such provisions were included
25herein.
26(Source: P.A. 90-491, eff. 1-1-98.)
 

 

 

HB3550- 120 -LRB099 11063 HLH 31454 b

1    Section 40. The Cigarette Use Tax Act is amended by
2changing Section 14a as follows:
 
3    (35 ILCS 135/14a)  (from Ch. 120, par. 453.44a)
4    Sec. 14a. If it appears, after claim therefor filed with
5the Department, that an amount of tax or penalty has been paid
6which was not due under this Act, whether as the result of a
7mistake of fact or an error of law, except as hereinafter
8provided, then the Department shall issue a credit memorandum
9or refund to the person who made the erroneous payment or, if
10that person has died or become a person under legal disability,
11to his or her legal representative, as such.
12    If it is determined that the Department should issue a
13credit or refund under this Act, the Department may first apply
14the amount thereof against any amount of tax or penalty due
15under this Act or under the Cigarette Tax Act from the person
16entitled to such credit or refund. For this purpose, if
17proceedings are pending to determine whether or not any tax or
18penalty is due under this Act or under the Cigarette Tax Act
19from such person, the Department may withhold issuance of the
20credit or refund pending the final disposition of such
21proceedings and may apply such credit or refund against any
22amount found to be due to the Department under this Act or
23under the Cigarette Tax Act as a result of such proceedings.
24The balance, if any, of the credit or refund shall be issued to

 

 

HB3550- 121 -LRB099 11063 HLH 31454 b

1the person entitled thereto.
2    If no tax or penalty is due and no proceeding is pending to
3determine whether such taxpayer is indebted to the Department
4for tax or penalty, the credit memorandum or refund shall be
5issued to the claimant; or (in the case of a credit memorandum)
6may be assigned and set over by the lawful holder thereof,
7subject to reasonable rules of the Department, to any other
8person who is subject to this Act or the Cigarette Tax Act, and
9the amount thereof shall be applied by the Department against
10any tax or penalty due or to become due under this Act or under
11the Cigarette Tax Act from such assignee.
12    As to any claim filed hereunder with the Department on and
13after each January 1 and July 1, no amount of tax or penalty
14erroneously paid (either in total or partial liquidation of a
15tax or penalty under this Act) more than 3 years prior to such
16January 1 and July 1, respectively, shall be credited or
17refunded, except that if both the Department and the taxpayer
18have agreed to an extension of time to issue a notice of tax
19liability under this Act, the claim may be filed at any time
20prior to the expiration of the period agreed upon.
21    In case the Department determines that the claimant is
22entitled to a refund, such refund shall be made only from the
23Sales and Excise Tax Refund Fund such appropriation as may be
24available for that purpose. If it appears unlikely that the
25amount available appropriated would permit everyone having a
26claim allowed during the period covered by such appropriation

 

 

HB3550- 122 -LRB099 11063 HLH 31454 b

1to elect to receive a cash refund, the Department, by rule or
2regulation, shall provide for the payment of refunds in
3hardship cases and shall define what types of cases qualify as
4hardship cases.
5    If the Department approves a claim for the physical
6replacement of cigarette tax stamps, the Department (subject to
7the same limitations as those provided for hereinbefore in this
8Section) may issue an assignable credit memorandum or refund to
9the claimant or to the claimant's legal representative.
10    Any credit or refund that is allowed under this Act shall
11bear interest at the rate and in the manner set forth in the
12Uniform Penalty and Interest Act.
13    The provisions of Sections 6a, 6b and 6c of the "Retailers'
14Occupation Tax Act", approved June 28, 1933, as amended, in
15effect on the effective date of this amendatory Act, as
16subsequently amended, which are not inconsistent with this Act,
17shall apply, as far as practicable, to the subject matter of
18this Act to the same extent as if such provisions were included
19herein.
20(Source: P.A. 90-491, eff. 1-1-98.)
 
21    Section 45. The Coin-Operated Amusement Device and
22Redemption Machine Tax Act is amended by changing Section 2 as
23follows:
 
24    (35 ILCS 510/2)  (from Ch. 120, par. 481b.2)

 

 

HB3550- 123 -LRB099 11063 HLH 31454 b

1    Sec. 2. (a) Any person, firm, limited liability company, or
2corporation which displays any device described in Section 1,
3to be played or operated by the public at any place owned or
4leased by any such person, firm, limited liability company, or
5corporation, shall before he displays such device, file in the
6Office of the Department of Revenue a form containing
7information regarding such device, setting forth his name and
8address, with a brief description of the device to be displayed
9and the premises where such device will be located, together
10with such other relevant data as the Department of Revenue may
11require. Such form shall be accompanied by the required
12privilege tax for each device. Such privilege tax shall be paid
13to the Department of Revenue of the State of Illinois and all
14monies received by the Department of Revenue under this Act
15shall be paid into the General Revenue Fund in the State
16Treasury. The Department of Revenue shall supply and deliver to
17the person, firm, limited liability company, or corporation
18which displays any device described in Section 1, charges
19prepaid and without additional cost, one privilege tax decal
20for each such device on which the tax has been paid, stating
21the year for which issued. Such privilege tax decal shall
22thereupon be securely affixed to such device.
23    (b) If an amount of tax, penalty, or interest has been paid
24in error to the Department, the taxpayer may file a claim for
25credit or refund with the Department. If it is determined that
26the Department must issue a credit or refund under this Act,

 

 

HB3550- 124 -LRB099 11063 HLH 31454 b

1the Department may first apply the amount of the credit or
2refund due against any amount of tax, penalty, or interest due
3under this Act from the taxpayer entitled to the credit or
4refund. If proceedings are pending to determine if any tax,
5penalty, or interest is due under this Act from the taxpayer,
6the Department may withhold issuance of the credit or refund
7pending the final disposition of those proceedings and may
8apply that credit or refund against any amount determined to be
9due to the Department as a result of those proceedings. The
10balance, if any, of the credit or refund shall be paid to the
11taxpayer.
12    If no tax, penalty, or interest is due and no proceedings
13are pending to determine whether the taxpayer is indebted to
14the Department for tax, penalty, or interest, the credit
15memorandum or refund shall be issued to the taxpayer; or, the
16credit memorandum may be assigned by the taxpayer, subject to
17reasonable rules of the Department, to any other person who is
18subject to this Act, and the amount of the credit memorandum by
19the Department against any tax, penalty, or interest due or to
20become due under this Act from the assignee.
21    For any claim for credit or refund filed with the
22Department on or after each July 1, no amount erroneously paid
23more than 3 years before that July 1, shall be credited or
24refunded.
25    A claim for credit or refund shall be filed on a form
26provided by the Department. As soon as practicable after any

 

 

HB3550- 125 -LRB099 11063 HLH 31454 b

1claim for credit or refund is filed, the Department shall
2determine the amount of credit or refund to which the claimant
3is entitled and shall notify the claimant of that
4determination.
5    A claim for credit or refund shall be filed with the
6Department on the date it is received by the Department. Upon
7receipt of any claim for credit or refund filed under this
8Section, an officer or employee of the Department, authorized
9by the Director of Revenue to acknowledge receipt of such
10claims on behalf of the Department, shall deliver or mail to
11the claimant or his duly authorized agent, a written receipt,
12acknowledging that the claim has been filed with the
13Department, describing the claim in sufficient detail to
14identify it, and stating the date on which the claim was
15received by the Department. The written receipt shall be prima
16facie evidence that the Department received the claim described
17in the receipt and shall be prima facie evidence of the date
18when such claim was received by the Department. In the absence
19of a written receipt, the records of the Department as to
20whether a claim was received, or when the claim was received by
21the Department, shall be deemed to be prima facie correct in
22the event of any dispute between the claimant, or his legal
23representative, and the Department on these issues.
24    Any credit or refund that is allowed under this Article
25shall bear interest at the rate and in the manner specified in
26the Uniform Penalty and Interest Act.

 

 

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1    If the Department determines that the claimant is entitled
2to a refund, the refund shall be made only from the Sales and
3Excise Tax Refund Fund an appropriation to the Department for
4that purpose. If the amount available appropriated is
5insufficient to pay claimants electing to receive a cash
6refund, the Department by rule or regulation shall first
7provide for the payment of refunds in hardship cases as defined
8by the Department.
9(Source: P.A. 93-32, eff. 7-1-03.)
 
10    Section 50. The Messages Tax Act is amended by changing
11Section 6 as follows:
 
12    (35 ILCS 610/6)  (from Ch. 120, par. 467.6)
13    Sec. 6. If it appears, after claim therefor filed with the
14Department, that an amount of tax or penalty or interest has
15been paid which was not due under this Act, whether as the
16result of a mistake of fact or an error of law, except as
17hereinafter provided, then the Department shall issue a credit
18memorandum or refund to the person who made the erroneous
19payment or, if that person has died or become a person under
20legal disability, to his or her legal representative, as such.
21    If it is determined that the Department should issue a
22credit or refund under this Act, the Department may first apply
23the amount thereof against any amount of tax or penalty or
24interest due hereunder from the person entitled to such credit

 

 

HB3550- 127 -LRB099 11063 HLH 31454 b

1or refund. For this purpose, if proceedings are pending to
2determine whether or not any tax or penalty or interest is due
3under this Act from such person, the Department may withhold
4issuance of the credit or refund pending the final disposition
5of such proceedings and may apply such credit or refund against
6any amount found to be due to the Department as a result of
7such proceedings. The balance, if any, of the credit or refund
8shall be issued to the person entitled thereto.
9    If no tax or penalty or interest is due and no proceeding
10is pending to determine whether such person is indebted to the
11Department for tax or penalty or interest, the credit
12memorandum or refund shall be issued to the claimant; or (in
13the case of a credit memorandum) the credit memorandum may be
14assigned and set over by the lawful holder thereof, subject to
15reasonable rules of the Department, to any other person who is
16subject to this Act, and the amount thereof shall be applied by
17the Department against any tax or penalty or interest due or to
18become due under this Act from such assignee.
19    As to any claim for credit or refund filed with the
20Department on or after each January 1 and July 1, no amounts
21erroneously paid more than 3 years prior to such January 1 and
22July 1, respectively, shall be credited or refunded, except
23that if both the Department and the taxpayer have agreed to an
24extension of time to issue a notice of tax liability under this
25Act, the claim may be filed at any time prior to the expiration
26of the period agreed upon.

 

 

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1    Claims for credit or refund shall be filed upon forms
2provided by the Department. As soon as practicable after any
3claim for credit or refund is filed, the Department shall
4examine the same and determine the amount of credit or refund
5to which the claimant is entitled and shall notify the claimant
6of such determination, which amount shall be prima facie
7correct.
8    Any credit or refund that is allowed under this Act shall
9bear interest at the rate and in the manner specified in the
10Uniform Penalty and Interest Act.
11    In case the Department determines that the claimant is
12entitled to a refund, such refund shall be made only from the
13Sales and Excise Tax Refund Fund such appropriation as may be
14available for that purpose. If it appears unlikely that the
15amount available appropriated would permit everyone having a
16claim allowed during the period covered by such appropriation
17to elect to receive a cash refund, the Department, by rule or
18regulation, shall provide for the payment of refunds in
19hardship cases and shall define what types of cases qualify as
20hardship cases.
21(Source: P.A. 90-491, eff. 1-1-98.)
 
22    Section 55. The Gas Revenue Tax Act is amended by changing
23Section 6 as follows:
 
24    (35 ILCS 615/6)  (from Ch. 120, par. 467.21)

 

 

HB3550- 129 -LRB099 11063 HLH 31454 b

1    Sec. 6. If it appears, after claim therefor filed with the
2Department, that an amount of tax or penalty or interest has
3been paid which was not due under this Act, whether as the
4result of a mistake of fact or an error of law, except as
5hereinafter provided, then the Department shall issue a credit
6memorandum or refund to the person who made the erroneous
7payment or, if that person has died or become a person under
8legal disability, to his or her legal representative, as such.
9    If it is determined that the Department should issue a
10credit or refund under this Act, the Department may first apply
11the amount thereof against any amount of tax or penalty or
12interest due hereunder from the person entitled to such credit
13or refund. For this purpose, if proceedings are pending to
14determine whether or not any tax or penalty or interest is due
15under this Act from such person, the Department may withhold
16issuance of the credit or refund pending the final disposition
17of such proceedings and may apply such credit or refund against
18any amount found to be due to the Department as a result of
19such proceedings. The balance, if any, of the credit or refund
20shall be issued to the person entitled thereto.
21    If no tax or penalty or interest is due and no proceeding
22is pending to determine whether such person is indebted to the
23Department for tax or penalty or interest, the credit
24memorandum or refund shall be issued to the claimant; or (in
25the case of a credit memorandum) the credit memorandum may be
26assigned and set over by the lawful holder thereof, subject to

 

 

HB3550- 130 -LRB099 11063 HLH 31454 b

1reasonable rules of the Department, to any other person who is
2subject to this Act, and the amount thereof shall be applied by
3the Department against any tax or penalty or interest due or to
4become due under this Act from such assignee.
5    As to any claim for credit or refund filed with the
6Department on or after each January 1 and July 1, no amounts
7erroneously paid more than 3 years prior to such January 1 and
8July 1, respectively, shall be credited or refunded, except
9that if both the Department and the taxpayer have agreed to an
10extension of time to issue a notice of tax liability under this
11Act, the claim may be filed at any time prior to the expiration
12of the period agreed upon.
13    Claims for credit or refund shall be filed upon forms
14provided by the Department. As soon as practicable after any
15claim for credit or refund is filed, the Department shall
16examine the same and determine the amount of credit or refund
17to which the claimant is entitled and shall notify the claimant
18of such determination, which amount shall be prima facie
19correct.
20    Any credit or refund that is allowed under this Act shall
21bear interest at the rate and in the manner specified in the
22Uniform Penalty and Interest Act.
23    In case the Department determines that the claimant is
24entitled to a refund, such refund shall be made only from the
25Sales and Excise Tax Refund Fund such appropriation as may be
26available for that purpose. If it appears unlikely that the

 

 

HB3550- 131 -LRB099 11063 HLH 31454 b

1amount available appropriated would permit everyone having a
2claim allowed during the period covered by such appropriation
3to elect to receive a cash refund, the Department, by rule or
4regulation, shall provide for the payment of refunds in
5hardship cases and shall define what types of cases qualify as
6hardship cases.
7(Source: P.A. 90-491, eff. 1-1-98.)
 
8    Section 60. The Public Utilities Revenue Act is amended by
9changing Section 6 as follows:
 
10    (35 ILCS 620/6)  (from Ch. 120, par. 473)
11    Sec. 6. If it appears, after claim therefor filed with the
12Department, that an amount of tax or penalty or interest has
13been paid which was not due under this Act, whether as the
14result of a mistake of fact or an error of law, except as
15hereinafter provided, then the Department shall issue a credit
16memorandum or refund to the person who made the erroneous
17payment or, if that person has died or become a person under
18legal disability, to his or her legal representative, as such.
19    If it is determined that the Department should issue a
20credit or refund under this Act, the Department may first apply
21the amount thereof against any amount of tax or penalty or
22interest due hereunder from the person entitled to such credit
23or refund. Any credit memorandum issued under the Electricity
24Excise Tax Law may be applied against any liability incurred

 

 

HB3550- 132 -LRB099 11063 HLH 31454 b

1under the tax previously imposed by Section 2 of this Act. For
2this purpose, if proceedings are pending to determine whether
3or not any tax or penalty or interest is due under this Act
4from such person, the Department may withhold issuance of the
5credit or refund pending the final disposition of such
6proceedings and may apply such credit or refund against any
7amount found to be due to the Department as a result of such
8proceedings. The balance, if any, of the credit or refund shall
9be issued to the person entitled thereto.
10    If no tax or penalty or interest is due and no proceeding
11is pending to determine whether such person is indebted to the
12Department for tax or penalty or interest, the credit
13memorandum or refund shall be issued to the claimant; or (in
14the case of a credit memorandum) the credit memorandum may be
15assigned and set over by the lawful holder thereof, subject to
16reasonable rules of the Department, to any other person who is
17subject to this Act, and the amount thereof shall be applied by
18the Department against any tax or penalty or interest due or to
19become due under this Act from such assignee.
20    As to any claim for credit or refund filed with the
21Department on or after each January 1 and July 1, no amounts
22erroneously paid more than 3 years prior to such January 1 and
23July 1, respectively, shall be credited or refunded, except
24that if both the Department and the taxpayer have agreed to an
25extension of time to issue a notice of tax liability under this
26Act, the claim may be filed at any time prior to the expiration

 

 

HB3550- 133 -LRB099 11063 HLH 31454 b

1of the period agreed upon.
2    Claims for credit or refund shall be filed upon forms
3provided by the Department. As soon as practicable after any
4claim for credit or refund is filed, the Department shall
5examine the same and determine the amount of credit or refund
6to which the claimant is entitled and shall notify the claimant
7of such determination, which amount shall be prima facie
8correct.
9    Any credit or refund that is allowed under this Act shall
10bear interest at the rate and in the manner specified in the
11Uniform Penalty and Interest Act.
12    In case the Department determines that the claimant is
13entitled to a refund, such refund shall be made only from the
14Sales and Excise Tax Refund Fund such appropriation as may be
15available for that purpose. If it appears unlikely that the
16amount available appropriated would permit everyone having a
17claim allowed during the period covered by such appropriation
18to elect to receive a cash refund, the Department, by rule or
19regulation, shall provide for the payment of refunds in
20hardship cases and shall define what types of cases qualify as
21hardship cases.
22(Source: P.A. 90-491, eff. 1-1-98; 90-624, eff. 7-10-98.)
 
23    Section 65. The Water Company Invested Capital Tax Act is
24amended by changing Section 6 as follows:
 

 

 

HB3550- 134 -LRB099 11063 HLH 31454 b

1    (35 ILCS 625/6)  (from Ch. 120, par. 1416)
2    Sec. 6. If it appears, after claim therefor filed with the
3Department, that an amount of tax or penalty or interest has
4been paid which was not due under this Act, whether as the
5result of a mistake of fact or an error of law, except as
6hereinafter provided, then the Department shall issue a credit
7memorandum or refund to the person who made the erroneous
8payment or, if that person has died or become incompetent, to
9his legal representative, as such.
10    If it is determined that the Department should issue a
11credit or refund under this Act, the Department may first apply
12the amount thereof against any amount of tax or penalty or
13interest due hereunder from the person entitled to such credit
14or refund. For this purpose, if proceedings are pending to
15determine whether or not any tax or penalty or interest is due
16under this Act from such person, the Department may withhold
17issuance of the credit or refund pending the final disposition
18of such proceedings and may apply such credit or refund against
19any amount found to be due to the Department as a result of
20such proceedings. The balance, if any, of the credit or refund
21shall be issued to the person entitled thereto.
22    If no tax or penalty or interest is due and no proceeding
23is pending to determine whether such person is indebted to the
24Department for tax or penalty or interest, the credit
25memorandum or refund shall be issued to the claimant; or (in
26the case of a credit memorandum) the credit memorandum may be

 

 

HB3550- 135 -LRB099 11063 HLH 31454 b

1assigned and set over by the lawful holder thereof, subject to
2reasonable rules of the Department, to any other person who is
3subject to this Act, and the amount thereof shall be applied by
4the Department against any tax or penalty or interest due or to
5become due under this Act from such assignee.
6    As to any claim for credit or refund filed with the
7Department on or after each January 1 and July 1, no amounts
8erroneously paid more than 3 years prior to such January 1 and
9July 1, respectively, shall be credited or refunded, except
10that if both the Department and the taxpayer have agreed to an
11extension of time to issue a notice of tax liability under this
12Act, the claim may be filed at any time prior to the expiration
13of the period agreed upon.
14    Claims for credit or refund shall be filed upon forms
15provided by the Department. As soon as practicable after any
16claim for credit or refund is filed, the Department shall
17examine the same and determine the amount of credit or refund
18to which the claimant is entitled and shall notify the claimant
19of such determination, which amount shall be prima facie
20correct.
21    Any credit or refund that is allowed under this Section
22shall bear interest at the rate and in the manner specified in
23the Uniform Penalty and Interest Act.
24    In case the Department determines that the claimant is
25entitled to a refund, such refund shall be made only from the
26Sales and Excise Tax Refund Fund such appropriation as may be

 

 

HB3550- 136 -LRB099 11063 HLH 31454 b

1available for that purpose. If it appears unlikely that the
2amount available appropriated would permit everyone having a
3claim allowed during the period covered by such appropriation
4to elect to receive a cash refund, the Department, by rule or
5regulation, shall provide for the payment of refunds in
6hardship cases and shall define what types of cases qualify as
7hardship cases.
8(Source: P.A. 90-491, eff. 1-1-98.)
 
9    Section 70. The Telecommunications Excise Tax Act is
10amended by changing Section 10 as follows:
 
11    (35 ILCS 630/10)  (from Ch. 120, par. 2010)
12    Sec. 10. If it shall appear that an amount of tax or
13penalty or interest has been paid in error hereunder to the
14Department by a taxpayer, as distinguished from the retailer,
15whether such amount be paid through a mistake of fact or an
16error of law, such taxpayer may file a claim for credit or
17refund with the Department. If it shall appear that an amount
18of tax or penalty or interest has been paid in error to the
19Department hereunder by a retailer who is required or
20authorized to collect and remit the tax imposed by this
21Article, whether such amount be paid through a mistake of fact
22or an error of law, such retailer may file a claim for credit
23or refund with the Department, provided that no credit or
24refund shall be allowed for any amount paid by any such

 

 

HB3550- 137 -LRB099 11063 HLH 31454 b

1retailer unless it shall appear that he bore the burden of such
2amount and did not shift the burden thereof to anyone else, or
3unless it shall appear that he or she or his or her legal
4representative has unconditionally repaid such amount to his
5customer (1) who bore the burden thereof and has not shifted
6such burden directly or indirectly in any manner whatsoever; or
7(2) who, if he or she shifted such burden, has repaid
8unconditionally such amount to his or her own customer; and (3)
9who is not entitled to receive any reimbursement therefor from
10any other source than from his retailer, nor to be relieved of
11such burden in any other manner whatsoever.
12    If it is determined that the Department should issue a
13credit or refund under this Article, the Department may first
14apply the amount thereof against any amount of tax or penalty
15or interest due hereunder from the person entitled to such
16credit or refund. For this purpose, if proceedings are pending
17to determine whether or not any tax or penalty or interest is
18due under this Article from such person, the Department may
19withhold issuance of the credit or refund pending the final
20disposition of such proceedings and may apply such credit or
21refund against any amount found to be due to the Department as
22a result of such proceedings. The balance, if any, of the
23credit or refund shall be issued to the person entitled
24thereto.
25    If no tax or penalty or interest is due and no proceeding
26is pending to determine whether such person is indebted to the

 

 

HB3550- 138 -LRB099 11063 HLH 31454 b

1Department for tax or penalty or interest, the credit
2memorandum or refund shall be issued to the claimant; or (in
3the case of a credit memorandum) the credit memorandum may be
4assigned and set over by the lawful holder thereof, subject to
5reasonable rules of the Department, to any other person who is
6subject to this Article, and the amount thereof shall be
7applied by the Department against any tax or penalty or
8interest due or to become due under this Article from such
9assignee.
10    As to any claim for credit or refund filed with the
11Department on or after each January 1 and July 1, no amounts
12erroneously paid more than three years prior to such January 1
13and July 1, respectively, shall be credited or refunded, except
14that if both the Department and the taxpayer have agreed to an
15extension of time to issue a notice of tax liability under this
16Act, the claim may be filed at any time prior to the expiration
17of the period agreed upon.
18    Claims for credit or refund shall be filed upon forms
19provided by the Department. As soon as practicable after any
20claim for credit or refund is filed, the Department shall
21examine the same and determine the amount of credit or refund
22to which the claimant is entitled and shall notify the claimant
23of such determination, which amount shall be prima facie
24correct.
25    A claim for credit or refund shall be considered to have
26been filed with the Department on the date upon which it is

 

 

HB3550- 139 -LRB099 11063 HLH 31454 b

1received by the Department. Upon receipt of any claim for
2credit or refund filed under this Article, any officer or
3employee of the Department, authorized in writing by the
4Director of Revenue to acknowledge receipt of such claims on
5behalf of the Department, shall execute on behalf of the
6Department, and shall deliver or mail to the claimant or his
7duly authorized agent, a written receipt, acknowledging that
8the claim has been filed with the Department, describing the
9claim in sufficient detail to identify it and stating the date
10upon which the claim was received by the Department. Such
11written receipt shall be prima facie evidence that the
12Department received the claim described in such receipt and
13shall be prima facie evidence of the date when such claim was
14received by the Department. In the absence of such a written
15receipt, the records of the Department as to when the claim was
16received by the Department, or as to whether or not the claim
17was received at all by the Department, shall be deemed to be
18prima facie correct upon these questions in the event of any
19dispute between the claimant (or his or her legal
20representative) and the Department concerning these questions.
21    Any credit or refund that is allowed under this Article
22shall bear interest at the rate and in the manner specified in
23the Uniform Penalty and Interest Act.
24    In case the Department determines that the claimant is
25entitled to a refund, such refund shall be made only from the
26Sales and Excise Tax Refund Fund such appropriation as may be

 

 

HB3550- 140 -LRB099 11063 HLH 31454 b

1available for that purpose. If it appears unlikely that the
2amount available appropriated would permit everyone having a
3claim allowed during the period covered by such appropriation
4to elect to receive a cash refund, the Department by rule or
5regulation shall provide for the payment of refunds in hardship
6cases and shall define what types of cases qualify as hardship
7cases.
8    If a retailer who has failed to pay tax on gross charges
9for telecommunications is required by the Department to pay
10such tax, such retailer, without filing any formal claim with
11the Department, shall be allowed to take credit against such
12tax liability to the extent, if any, to which such retailer has
13paid the tax to its vendor of the telecommunications which such
14retailer purchased and used for resale, and no penalty or
15interest shall be charged to such retailer on the amount of
16such credit. However, when such credit is allowed to the
17retailer by the Department, the vendor is precluded from
18refunding any of the tax to the retailer and filing a claim for
19credit or refund with respect thereto with the Department. The
20provisions of this Section added by this amendatory Act of 1988
21shall be applied retroactively, regardless of the date of the
22transaction.
23(Source: P.A. 90-491, eff. 1-1-98.)
 
24    Section 75. The Liquor Control Act of 1934 is amended by
25changing Section 8-3 as follows:
 

 

 

HB3550- 141 -LRB099 11063 HLH 31454 b

1    (235 ILCS 5/8-3)  (from Ch. 43, par. 159a)
2    Sec. 8-3. If it appears, after claim therefor filed with
3the Department, that an amount of tax or penalty or interest
4has been paid which was not due under this Article, whether as
5the result of a mistake of fact or an error of law, except as
6hereinafter provided, then the Department shall issue a credit
7memorandum or refund to the person who made the erroneous
8payment or, if that person died or became a person under legal
9disability, to his or her legal representative, as such.
10    If it is determined that the Department should issue a
11credit or refund under this Article, the Department may first
12apply the amount thereof against any amount of tax or penalty
13or interest due hereunder from the person entitled to such
14credit or refund. For this purpose, if proceedings are pending
15to determine whether or not any tax or penalty or interest is
16due under this Article from such person, the Department may
17withhold issuance of the credit or refund pending the final
18disposition of such proceedings and may apply such credit or
19refund against any amount found to be due to the Department as
20a result of such proceedings. The balance, if any, of the
21credit or refund shall be issued to the person entitled
22thereto.
23    If no tax or penalty or interest is due and no proceeding
24is pending to determine whether such taxpayer is indebted to
25the Department for tax or penalty or interest the credit

 

 

HB3550- 142 -LRB099 11063 HLH 31454 b

1memorandum or refund shall be issued to the claimant; or (in
2the case of a credit memorandum) the credit memorandum may be
3assigned and set over by the lawful holder thereof, subject to
4reasonable rules of the Department, to any other person who is
5subject to this Article, and the amount thereof shall be
6applied by the Department against any tax or penalty or
7interest due or to become due under this Article from such
8assignee.
9    As to any claim filed hereunder with the Department on and
10after each January 1 and July 1, no amount of tax or penalty or
11interest, erroneously paid (either in total or partial
12liquidation of a tax or penalty or interest under this Article)
13more than 3 years prior to such January 1 and July 1,
14respectively, shall be credited or refunded.
15    Any credit or refund that is allowed under this Act shall
16bear interest at the rate and in the manner specified in the
17Uniform Penalty and Interest Act.
18    In case the Department determines that the claimant is
19entitled to a refund, such refund shall be made only from the
20Sales and Excise Tax Refund Fund such appropriation as may be
21available for that purpose. If it appears unlikely that the
22amount available appropriated would permit everyone having a
23claim allowed during the period covered by such appropriation
24to elect to receive a cash refund, the Department, by rule or
25regulation, shall provide for the payment of refunds in
26hardship cases and shall define what types of cases qualify as

 

 

HB3550- 143 -LRB099 11063 HLH 31454 b

1hardship cases.
2(Source: P.A. 87-205.)
 
3    Section 99. Effective date. This Act takes effect on July
41, 2015.

 

 

HB3550- 144 -LRB099 11063 HLH 31454 b

1 INDEX
2 Statutes amended in order of appearance
3    30 ILCS 105/5.866 new
4    30 ILCS 105/6z-101 new
5    35 ILCS 105/9from Ch. 120, par. 439.9
6    35 ILCS 105/19from Ch. 120, par. 439.19
7    35 ILCS 110/9from Ch. 120, par. 439.39
8    35 ILCS 110/17from Ch. 120, par. 439.47
9    35 ILCS 115/9from Ch. 120, par. 439.109
10    35 ILCS 115/17from Ch. 120, par. 439.117
11    35 ILCS 120/3from Ch. 120, par. 442
12    35 ILCS 120/6from Ch. 120, par. 445
13    35 ILCS 128/1-55
14    35 ILCS 130/9dfrom Ch. 120, par. 453.9d
15    35 ILCS 135/14afrom Ch. 120, par. 453.44a
16    35 ILCS 510/2from Ch. 120, par. 481b.2
17    35 ILCS 610/6from Ch. 120, par. 467.6
18    35 ILCS 615/6from Ch. 120, par. 467.21
19    35 ILCS 620/6from Ch. 120, par. 473
20    35 ILCS 625/6from Ch. 120, par. 1416
21    35 ILCS 630/10from Ch. 120, par. 2010
22    235 ILCS 5/8-3from Ch. 43, par. 159a