99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2218

 

Introduced 1/13/2016, by Sen. Pamela J. Althoff

 

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, 2016.


LRB099 15791 HLH 40098 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2218LRB099 15791 HLH 40098 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 5.875 and 6z-101 as follows:
 
6    (30 ILCS 105/5.875 new)
7    Sec. 5.875. 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

 

 

SB2218- 21 -LRB099 15791 HLH 40098 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    Beginning July 1, 2015, of the remainder of the moneys
13received by the Department under this Act, the Service Use Tax
14Act, the Service Occupation Tax Act, and the Retailers'
15Occupation Tax Act, each month the Department shall deposit
16$500,000 into the State Crime Laboratory Fund.
17    Of the remainder of the moneys received by the Department
18pursuant to this Act, (a) 1.75% thereof shall be paid into the
19Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
20and after July 1, 1989, 3.8% thereof shall be paid into the
21Build Illinois Fund; provided, however, that if in any fiscal
22year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
23may be, of the moneys received by the Department and required
24to be paid into the Build Illinois Fund pursuant to Section 3
25of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
26Act, Section 9 of the Service Use Tax Act, and Section 9 of the

 

 

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

 

 

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

 

 

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1pursuant to this Act and required to be deposited into the
2Build Illinois Fund are subject to the pledge, claim and charge
3set forth in Section 12 of the Build Illinois Bond Act.
4    Subject to payment of amounts into the Build Illinois Fund
5as provided in the preceding paragraph or in any amendment
6thereto hereafter enacted, the following specified monthly
7installment of the amount requested in the certificate of the
8Chairman of the Metropolitan Pier and Exposition Authority
9provided under Section 8.25f of the State Finance Act, but not
10in excess of the sums designated as "Total Deposit", shall be
11deposited in the aggregate from collections under Section 9 of
12the Use Tax Act, Section 9 of the Service Use Tax Act, Section
139 of the Service Occupation Tax Act, and Section 3 of the
14Retailers' Occupation Tax Act into the McCormick Place
15Expansion Project Fund in the specified fiscal years.
16Fiscal YearTotal Deposit
171993         $0
181994 53,000,000
191995 58,000,000
201996 61,000,000
211997 64,000,000
221998 68,000,000
231999 71,000,000
242000 75,000,000
252001 80,000,000
262002 93,000,000

 

 

SB2218- 25 -LRB099 15791 HLH 40098 b

12003 99,000,000
22004103,000,000
32005108,000,000
42006113,000,000
52007119,000,000
62008126,000,000
72009132,000,000
82010139,000,000
92011146,000,000
102012153,000,000
112013161,000,000
122014170,000,000
132015179,000,000
142016189,000,000
152017199,000,000
162018210,000,000
172019221,000,000
182020233,000,000
192021246,000,000
202022260,000,000
212023275,000,000
222024 275,000,000
232025 275,000,000
242026 279,000,000
252027 292,000,000
262028 307,000,000

 

 

SB2218- 26 -LRB099 15791 HLH 40098 b

12029 322,000,000
22030 338,000,000
32031 350,000,000
42032 350,000,000
5and
6each fiscal year
7thereafter that bonds
8are outstanding under
9Section 13.2 of the
10Metropolitan Pier and
11Exposition Authority Act,
12but not after fiscal year 2060.
13    Beginning July 20, 1993 and in each month of each fiscal
14year thereafter, one-eighth of the amount requested in the
15certificate of the Chairman of the Metropolitan Pier and
16Exposition Authority for that fiscal year, less the amount
17deposited into the McCormick Place Expansion Project Fund by
18the State Treasurer in the respective month under subsection
19(g) of Section 13 of the Metropolitan Pier and Exposition
20Authority Act, plus cumulative deficiencies in the deposits
21required under this Section for previous months and years,
22shall be deposited into the McCormick Place Expansion Project
23Fund, until the full amount requested for the fiscal year, but
24not in excess of the amount specified above as "Total Deposit",
25has been deposited.
26    Beginning on July 1, 2016, subject to payment of amounts

 

 

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1into the Capital Projects Fund, the Clean Air Act (CAA) Permit
2Fund, the Build Illinois Fund, and the McCormick Place
3Expansion Project Fund pursuant to the preceding paragraphs or
4in any amendments thereto hereafter enacted, the Department
5shall each month deposit into the Sales and Excise Tax Refund
6Fund 0.18% of 80% of the net revenue realized for the preceding
7month from the 6.25% general rate on the selling price of
8tangible personal property.
9    Subject to payment of amounts into the Build Illinois Fund
10and the McCormick Place Expansion Project Fund pursuant to the
11preceding paragraphs or in any amendments thereto hereafter
12enacted, beginning July 1, 1993 and ending on September 30,
132013, the Department shall each month pay into the Illinois Tax
14Increment Fund 0.27% of 80% of the net revenue realized for the
15preceding month from the 6.25% general rate on the selling
16price of tangible personal property.
17    Subject to payment of amounts into the Build Illinois Fund
18and the McCormick Place Expansion Project Fund pursuant to the
19preceding paragraphs or in any amendments thereto hereafter
20enacted, beginning with the receipt of the first report of
21taxes paid by an eligible business and continuing for a 25-year
22period, the Department shall each month pay into the Energy
23Infrastructure Fund 80% of the net revenue realized from the
246.25% general rate on the selling price of Illinois-mined coal
25that was sold to an eligible business. For purposes of this
26paragraph, the term "eligible business" means a new electric

 

 

SB2218- 28 -LRB099 15791 HLH 40098 b

1generating facility certified pursuant to Section 605-332 of
2the Department of Commerce and Economic Opportunity Law of the
3Civil Administrative Code of Illinois.
4    Subject to payment of amounts into the Build Illinois Fund,
5the McCormick Place Expansion Project Fund, the Illinois Tax
6Increment Fund, and the Energy Infrastructure Fund pursuant to
7the preceding paragraphs or in any amendments to this Section
8hereafter enacted, beginning on the first day of the first
9calendar month to occur on or after the effective date of this
10amendatory Act of the 98th General Assembly, each month, from
11the collections made under Section 9 of the Use Tax Act,
12Section 9 of the Service Use Tax Act, Section 9 of the Service
13Occupation Tax Act, and Section 3 of the Retailers' Occupation
14Tax Act, the Department shall pay into the Tax Compliance and
15Administration Fund, to be used, subject to appropriation, to
16fund additional auditors and compliance personnel at the
17Department of Revenue, an amount equal to 1/12 of 5% of 80% of
18the cash receipts collected during the preceding fiscal year by
19the Audit Bureau of the Department under the Use Tax Act, the
20Service Use Tax Act, the Service Occupation Tax Act, the
21Retailers' Occupation Tax Act, and associated local occupation
22and use taxes administered by the Department.
23    Of the remainder of the moneys received by the Department
24pursuant to this Act, 75% thereof shall be paid into the State
25Treasury and 25% shall be reserved in a special account and
26used only for the transfer to the Common School Fund as part of

 

 

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1the monthly transfer from the General Revenue Fund in
2accordance with Section 8a of the State Finance Act.
3    As soon as possible after the first day of each month, upon
4certification of the Department of Revenue, the Comptroller
5shall order transferred and the Treasurer shall transfer from
6the General Revenue Fund to the Motor Fuel Tax Fund an amount
7equal to 1.7% of 80% of the net revenue realized under this Act
8for the second preceding month. Beginning April 1, 2000, this
9transfer is no longer required and shall not be made.
10    Net revenue realized for a month shall be the revenue
11collected by the State pursuant to this Act, less the amount
12paid out during that month as refunds to taxpayers for
13overpayment of liability.
14    For greater simplicity of administration, manufacturers,
15importers and wholesalers whose products are sold at retail in
16Illinois by numerous retailers, and who wish to do so, may
17assume the responsibility for accounting and paying to the
18Department all tax accruing under this Act with respect to such
19sales, if the retailers who are affected do not make written
20objection to the Department to this arrangement.
21(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
2298-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff.
238-26-14; 99-352, eff. 8-12-15.)
 
24    (35 ILCS 105/19)  (from Ch. 120, par. 439.19)
25    Sec. 19. If it shall appear that an amount of tax or

 

 

SB2218- 30 -LRB099 15791 HLH 40098 b

1penalty or interest has been paid in error hereunder to the
2Department by a purchaser, as distinguished from the retailer,
3whether such amount be paid through a mistake of fact or an
4error of law, such purchaser may file a claim for credit or
5refund with the Department in accordance with Sections 6, 6a,
66b, 6c, and 6d of the Retailers' Occupation Tax Act. If it
7shall appear that an amount of tax or penalty or interest has
8been paid in error to the Department hereunder by a retailer
9who is required or authorized to collect and remit the use tax,
10whether such amount be paid through a mistake of fact or an
11error of law, such retailer may file a claim for credit or
12refund with the Department in accordance with Sections 6, 6a,
136b, 6c, and 6d of the Retailers' Occupation Tax Act, provided
14that no credit or refund shall be allowed for any amount paid
15by any such retailer unless it shall appear that he bore the
16burden of such amount and did not shift the burden thereof to
17anyone else (as in the case of a duplicated tax payment which
18the retailer made to the Department and did not collect from
19anyone else), or unless it shall appear that he or she or his
20or her legal representative has unconditionally repaid such
21amount to his vendee (1) who bore the burden thereof and has
22not shifted such burden directly or indirectly in any manner
23whatsoever; (2) who, if he has shifted such burden, has repaid
24unconditionally such amount to his or her own vendee, and (3)
25who is not entitled to receive any reimbursement therefor from
26any other source than from his vendor, nor to be relieved of

 

 

SB2218- 31 -LRB099 15791 HLH 40098 b

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

 

 

SB2218- 32 -LRB099 15791 HLH 40098 b

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

 

 

SB2218- 33 -LRB099 15791 HLH 40098 b

1receipts from retail sales is required by the Department to pay
2such tax, such retailer, without filing any formal claim with
3the Department, shall be allowed to take credit against such
4use tax liability to the extent, if any, to which such retailer
5has paid an amount equivalent to retailers' occupation tax or
6has paid use tax in error to his or her vendor or vendors of the
7same tangible personal property which such retailer bought for
8resale and did not first use before selling it, and no penalty
9or interest shall be charged to such retailer on the amount of
10such credit. However, when such credit is allowed to the
11retailer by the Department, the vendor is precluded from
12refunding any of that tax to the retailer and filing a claim
13for credit or refund with respect thereto with the Department.
14The provisions of this amendatory Act shall be applied
15retroactively, regardless of the date of the transaction.
16(Source: P.A. 99-217, eff. 7-31-15.)
 
17    Section 15. The Service Use Tax Act is amended by changing
18Sections 9 and 17 as follows:
 
19    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
20    Sec. 9. Each serviceman required or authorized to collect
21the tax herein imposed shall pay to the Department the amount
22of such tax (except as otherwise provided) at the time when he
23is required to file his return for the period during which such
24tax was collected, less a discount of 2.1% prior to January 1,

 

 

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11990 and 1.75% on and after January 1, 1990, or $5 per calendar
2year, whichever is greater, which is allowed to reimburse the
3serviceman for expenses incurred in collecting the tax, keeping
4records, preparing and filing returns, remitting the tax and
5supplying data to the Department on request. The Department may
6disallow the discount for servicemen whose certificate of
7registration is revoked at the time the return is filed, but
8only if the Department's decision to revoke the certificate of
9registration has become final. A serviceman need not remit that
10part of any tax collected by him to the extent that he is
11required to pay and does pay the tax imposed by the Service
12Occupation Tax Act with respect to his sale of service
13involving the incidental transfer by him of the same property.
14    Except as provided hereinafter in this Section, on or
15before the twentieth day of each calendar month, such
16serviceman shall file a return for the preceding calendar month
17in accordance with reasonable Rules and Regulations to be
18promulgated by the Department. Such return shall be filed on a
19form prescribed by the Department and shall contain such
20information as the Department may reasonably require.
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

 

 

SB2218- 35 -LRB099 15791 HLH 40098 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 business as a serviceman in this State;
5        3. The total amount of taxable receipts received by him
6    during the preceding calendar month, including receipts
7    from charge and time sales, but less all deductions allowed
8    by law;
9        4. The amount of credit provided in Section 2d of this
10    Act;
11        5. The amount of tax due;
12        5-5. The signature of the taxpayer; and
13        6. Such other reasonable information as the Department
14    may require.
15    If a taxpayer fails to sign a return within 30 days after
16the proper notice and demand for signature by the Department,
17the return shall be considered valid and any amount shown to be
18due on the return shall be deemed assessed.
19    Beginning October 1, 1993, a taxpayer who has an average
20monthly tax liability of $150,000 or more shall make all
21payments required by rules of the Department by electronic
22funds transfer. Beginning October 1, 1994, a taxpayer who has
23an average monthly tax liability of $100,000 or more shall make
24all payments required by rules of the Department by electronic
25funds transfer. Beginning October 1, 1995, a taxpayer who has
26an average monthly tax liability of $50,000 or more shall make

 

 

SB2218- 36 -LRB099 15791 HLH 40098 b

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

 

 

SB2218- 37 -LRB099 15791 HLH 40098 b

1transfer and any taxpayers authorized to voluntarily make
2payments by electronic funds transfer shall make those payments
3in the manner authorized by the Department.
4    The Department shall adopt such rules as are necessary to
5effectuate a program of electronic funds transfer and the
6requirements of this Section.
7    If the serviceman is otherwise required to file a monthly
8return and if the serviceman's average monthly tax liability to
9the Department does not exceed $200, the Department may
10authorize his returns to be filed on a quarter annual basis,
11with the return for January, February and March of a given year
12being due by April 20 of such year; with the return for April,
13May and June of a given year being due by July 20 of such year;
14with the return for July, August and September of a given year
15being due by October 20 of such year, and with the return for
16October, November and December of a given year being due by
17January 20 of the following year.
18    If the serviceman is otherwise required to file a monthly
19or quarterly return and if the serviceman's average monthly tax
20liability to the Department does not exceed $50, the Department
21may authorize his returns to be filed on an annual basis, with
22the return for a given year being due by January 20 of the
23following year.
24    Such quarter annual and annual returns, as to form and
25substance, shall be subject to the same requirements as monthly
26returns.

 

 

SB2218- 38 -LRB099 15791 HLH 40098 b

1    Notwithstanding any other provision in this Act concerning
2the time within which a serviceman may file his return, in the
3case of any serviceman who ceases to engage in a kind of
4business which makes him responsible for filing returns under
5this Act, such serviceman shall file a final return under this
6Act with the Department not more than 1 month after
7discontinuing such business.
8    Where a serviceman collects the tax with respect to the
9selling price of property which he sells and the purchaser
10thereafter returns such property and the serviceman refunds the
11selling price thereof to the purchaser, such serviceman shall
12also refund, to the purchaser, the tax so collected from the
13purchaser. When filing his return for the period in which he
14refunds such tax to the purchaser, the serviceman may deduct
15the amount of the tax so refunded by him to the purchaser from
16any other Service Use Tax, Service Occupation Tax, retailers'
17occupation tax or use tax which such serviceman may be required
18to pay or remit to the Department, as shown by such return,
19provided that the amount of the tax to be deducted shall
20previously have been remitted to the Department by such
21serviceman. If the serviceman shall not previously have
22remitted the amount of such tax to the Department, he shall be
23entitled to no deduction hereunder upon refunding such tax to
24the purchaser.
25    Any serviceman filing a return hereunder shall also include
26the total tax upon the selling price of tangible personal

 

 

SB2218- 39 -LRB099 15791 HLH 40098 b

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

 

 

SB2218- 40 -LRB099 15791 HLH 40098 b

1net revenue realized for the preceding month from the 6.25%
2general rate on transfers of tangible personal property, other
3than tangible personal property which is purchased outside
4Illinois at retail from a retailer and which is titled or
5registered by an agency of this State's government.
6    Beginning August 1, 2000, each month the Department shall
7pay into the State and Local Sales Tax Reform Fund 100% of the
8net revenue realized for the preceding month from the 1.25%
9rate on the selling price of motor fuel and gasohol.
10    Beginning October 1, 2009, each month the Department shall
11pay into the Capital Projects Fund an amount that is equal to
12an amount estimated by the Department to represent 80% of the
13net revenue realized for the preceding month from the sale of
14candy, grooming and hygiene products, and soft drinks that had
15been taxed at a rate of 1% prior to September 1, 2009 but that
16are now taxed at 6.25%.
17    Beginning July 1, 2013, each month the Department shall pay
18into the Underground Storage Tank Fund from the proceeds
19collected under this Act, the Use Tax Act, the Service
20Occupation Tax Act, and the Retailers' Occupation Tax Act an
21amount equal to the average monthly deficit in the Underground
22Storage Tank Fund during the prior year, as certified annually
23by the Illinois Environmental Protection Agency, but the total
24payment into the Underground Storage Tank Fund under this Act,
25the Use Tax Act, the Service Occupation Tax Act, and the
26Retailers' Occupation Tax Act shall not exceed $18,000,000 in

 

 

SB2218- 41 -LRB099 15791 HLH 40098 b

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

 

 

SB2218- 42 -LRB099 15791 HLH 40098 b

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

 

 

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

 

 

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

 

 

SB2218- 45 -LRB099 15791 HLH 40098 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

 

 

SB2218- 46 -LRB099 15791 HLH 40098 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, 2016, subject to payment of amounts
22into the Capital Projects Fund, the Build Illinois Fund, and
23the McCormick Place Expansion Project Fund pursuant to the
24preceding paragraphs or in any amendments thereto hereafter
25enacted, the Department shall each month deposit into the Sales
26and Excise Tax Refund Fund 0.18% of 80% of the net revenue

 

 

SB2218- 47 -LRB099 15791 HLH 40098 b

1realized for the preceding month from the 6.25% general rate on
2the selling price of tangible personal property.
3    Subject to payment of amounts into the Build Illinois Fund
4and the McCormick Place Expansion Project Fund pursuant to the
5preceding paragraphs or in any amendments thereto hereafter
6enacted, beginning July 1, 1993 and ending on September 30,
72013, the Department shall each month pay into the Illinois Tax
8Increment Fund 0.27% of 80% of the net revenue realized for the
9preceding month from the 6.25% general rate on the selling
10price of tangible personal property.
11    Subject to payment of amounts into the Build Illinois Fund
12and the McCormick Place Expansion Project Fund pursuant to the
13preceding paragraphs or in any amendments thereto hereafter
14enacted, beginning with the receipt of the first report of
15taxes paid by an eligible business and continuing for a 25-year
16period, the Department shall each month pay into the Energy
17Infrastructure Fund 80% of the net revenue realized from the
186.25% general rate on the selling price of Illinois-mined coal
19that was sold to an eligible business. For purposes of this
20paragraph, the term "eligible business" means a new electric
21generating facility certified pursuant to Section 605-332 of
22the Department of Commerce and Economic Opportunity Law of the
23Civil Administrative Code of Illinois.
24    Subject to payment of amounts into the Build Illinois Fund,
25the McCormick Place Expansion Project Fund, the Illinois Tax
26Increment Fund, and the Energy Infrastructure Fund pursuant to

 

 

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

 

 

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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(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
1098-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
1198-1098, eff. 8-26-14; 99-352, eff. 8-12-15.)
 
12    (35 ILCS 110/17)  (from Ch. 120, par. 439.47)
13    Sec. 17. If it shall appear that an amount of tax or
14penalty or interest has been paid in error hereunder to the
15Department by a purchaser, as distinguished from the
16serviceman, whether such amount be paid through a mistake of
17fact or an error of law, such purchaser may file a claim for
18credit or refund with the Department. If it shall appear that
19an amount of tax or penalty or interest has been paid in error
20to the Department hereunder by a serviceman who is required or
21authorized to collect and remit the Service Use Tax, whether
22such amount be paid through a mistake of fact or an error of
23law, such serviceman may file a claim for credit or refund with
24the Department, provided that no credit shall be allowed or
25refund made for any amount paid by any such serviceman unless

 

 

SB2218- 50 -LRB099 15791 HLH 40098 b

1it shall appear that he bore the burden of such amount and did
2not shift the burden thereof to anyone else (as in the case of
3a duplicated tax payment which the serviceman made to the
4Department and did not collect from anyone else), or unless it
5shall appear that he or his legal representative has
6unconditionally repaid such amount to his vendee (1) who bore
7the burden thereof and has not shifted such burden directly or
8indirectly in any manner whatsoever; (2) who, if he has shifted
9such burden, has repaid unconditionally such amount to his own
10vendee, and (3) who is not entitled to receive any
11reimbursement therefor from any other source than from his
12vendor, nor to be relieved of such burden in any other manner
13whatsoever. If it shall appear that an amount of tax has been
14paid in error hereunder by the purchaser to a serviceman, who
15retained such tax as reimbursement for his tax liability on the
16same sale of service under the Service Occupation Tax Act, and
17who paid such tax as required by the Service Occupation Tax
18Act, whether such amount be paid through a mistake of fact or
19an error of law, the procedure for recovering such tax shall be
20that prescribed in Sections 17, 18, 19 and 20 of the Service
21Occupation Tax Act.
22    Any credit or refund that is allowed under this Section
23shall bear interest at the rate and in the manner specified in
24the Uniform Penalty and Interest Act.
25    Any claim filed hereunder shall be filed upon a form
26prescribed and furnished by the Department. The claim shall be

 

 

SB2218- 51 -LRB099 15791 HLH 40098 b

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

 

 

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1    In case the Department determines that the claimant is
2entitled to a refund, such refund shall be made only from the
3Sales and Excise Tax Refund Fund such appropriation as may be
4available for that purpose. If it appears unlikely that the
5amount available appropriated would permit everyone having a
6claim allowed during the period covered by such appropriation
7to elect to receive a cash refund, the Department, by rule or
8regulation, shall provide for the payment of refunds in
9hardship cases and shall define what types of cases qualify as
10hardship cases.
11(Source: P.A. 87-205.)
 
12    Section 20. The Service Occupation Tax Act is amended by
13changing Sections 9 and 17 as follows:
 
14    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
15    Sec. 9. Each serviceman required or authorized to collect
16the tax herein imposed shall pay to the Department the amount
17of such tax at the time when he is required to file his return
18for the period during which such tax was collectible, less a
19discount of 2.1% prior to January 1, 1990, and 1.75% on and
20after January 1, 1990, or $5 per calendar year, whichever is
21greater, which is allowed to reimburse the serviceman for
22expenses incurred in collecting the tax, keeping records,
23preparing and filing returns, remitting the tax and supplying
24data to the Department on request. The Department may disallow

 

 

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

 

 

SB2218- 54 -LRB099 15791 HLH 40098 b

1        1. The name of the seller;
2        2. The address of the principal place of business from
3    which he engages in business as a serviceman in this State;
4        3. The total amount of taxable receipts received by him
5    during the preceding calendar month, including receipts
6    from charge and time sales, but less all deductions allowed
7    by law;
8        4. The amount of credit provided in Section 2d of this
9    Act;
10        5. The amount of tax due;
11        5-5. The signature of the taxpayer; and
12        6. Such other reasonable information as the Department
13    may require.
14    If a taxpayer fails to sign a return within 30 days after
15the proper notice and demand for signature by the Department,
16the return shall be considered valid and any amount shown to be
17due on the return shall be deemed assessed.
18    Prior to October 1, 2003, and on and after September 1,
192004 a serviceman may accept a Manufacturer's Purchase Credit
20certification from a purchaser in satisfaction of Service Use
21Tax as provided in Section 3-70 of the Service Use Tax Act if
22the purchaser provides the appropriate documentation as
23required by Section 3-70 of the Service Use Tax Act. A
24Manufacturer's Purchase Credit certification, accepted prior
25to October 1, 2003 or on or after September 1, 2004 by a
26serviceman as provided in Section 3-70 of the Service Use Tax

 

 

SB2218- 55 -LRB099 15791 HLH 40098 b

1Act, may be used by that serviceman to satisfy Service
2Occupation Tax liability in the amount claimed in the
3certification, not to exceed 6.25% of the receipts subject to
4tax from a qualifying purchase. A Manufacturer's Purchase
5Credit reported on any original or amended return filed under
6this Act after October 20, 2003 for reporting periods prior to
7September 1, 2004 shall be disallowed. Manufacturer's Purchase
8Credit reported on annual returns due on or after January 1,
92005 will be disallowed for periods prior to September 1, 2004.
10No Manufacturer's Purchase Credit may be used after September
1130, 2003 through August 31, 2004 to satisfy any tax liability
12imposed under this Act, including any audit liability.
13    If the serviceman's average monthly tax liability to the
14Department does not exceed $200, the Department may authorize
15his returns to be filed on a quarter annual basis, with the
16return for January, February and March of a given year being
17due by April 20 of such year; with the return for April, May
18and June of a given year being due by July 20 of such year; with
19the return for July, August and September of a given year being
20due by October 20 of such year, and with the return for
21October, November and December of a given year being due by
22January 20 of the following year.
23    If the serviceman's average monthly tax liability to the
24Department does not exceed $50, the Department may authorize
25his returns to be filed on an annual basis, with the return for
26a given year being due by January 20 of the following year.

 

 

SB2218- 56 -LRB099 15791 HLH 40098 b

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

 

 

SB2218- 57 -LRB099 15791 HLH 40098 b

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

 

 

SB2218- 58 -LRB099 15791 HLH 40098 b

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

 

 

SB2218- 59 -LRB099 15791 HLH 40098 b

1    Beginning January 1, 1990, each month the Department shall
2pay into the Local Government Tax Fund the revenue realized for
3the preceding month from the 1% tax on sales of food for human
4consumption which is to be consumed off the premises where it
5is sold (other than alcoholic beverages, soft drinks and food
6which has been prepared for immediate consumption) and
7prescription and nonprescription medicines, drugs, medical
8appliances and insulin, urine testing materials, syringes and
9needles used by diabetics.
10    Beginning January 1, 1990, each month the Department shall
11pay into the County and Mass Transit District Fund 4% of the
12revenue realized for the preceding month from the 6.25% general
13rate.
14    Beginning August 1, 2000, each month the Department shall
15pay into the County and Mass Transit District Fund 20% of the
16net revenue realized for the preceding month from the 1.25%
17rate on the selling price of motor fuel and gasohol.
18    Beginning January 1, 1990, each month the Department shall
19pay into the Local Government Tax Fund 16% of the revenue
20realized for the preceding month from the 6.25% general rate on
21transfers of tangible personal property.
22    Beginning August 1, 2000, each month the Department shall
23pay into the Local Government Tax Fund 80% of the net revenue
24realized for the preceding month from the 1.25% rate on the
25selling price of motor fuel and gasohol.
26    Beginning October 1, 2009, each month the Department shall

 

 

SB2218- 60 -LRB099 15791 HLH 40098 b

1pay into the Capital Projects Fund an amount that is equal to
2an amount estimated by the Department to represent 80% of the
3net revenue realized for the preceding month from the sale of
4candy, grooming and hygiene products, and soft drinks that had
5been taxed at a rate of 1% prior to September 1, 2009 but that
6are now taxed at 6.25%.
7    Beginning July 1, 2013, each month the Department shall pay
8into the Underground Storage Tank Fund from the proceeds
9collected under this Act, the Use Tax Act, the Service Use Tax
10Act, and the Retailers' Occupation Tax Act an amount equal to
11the average monthly deficit in the Underground Storage Tank
12Fund during the prior year, as certified annually by the
13Illinois Environmental Protection Agency, but the total
14payment into the Underground Storage Tank Fund under this Act,
15the Use Tax Act, the Service Use Tax Act, and the Retailers'
16Occupation Tax Act shall not exceed $18,000,000 in any State
17fiscal year. As used in this paragraph, the "average monthly
18deficit" shall be equal to the difference between the average
19monthly claims for payment by the fund and the average monthly
20revenues deposited into the fund, excluding payments made
21pursuant to this paragraph.
22    Beginning July 1, 2015, of the remainder of the moneys
23received by the Department under the Use Tax Act, the Service
24Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
25each month the Department shall deposit $500,000 into the State
26Crime Laboratory Fund.

 

 

SB2218- 61 -LRB099 15791 HLH 40098 b

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 Account in the
23Build 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

 

 

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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.

 

 

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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

 

 

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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, 2016, 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% shall be paid into the General
10Revenue Fund of the State Treasury and 25% shall be reserved in
11a special account and used only for the transfer to the Common
12School Fund as part of the monthly transfer from the General
13Revenue Fund in accordance with Section 8a of the State Finance
14Act.
15    The Department may, upon separate written notice to a
16taxpayer, require the taxpayer to prepare and file with the
17Department on a form prescribed by the Department within not
18less than 60 days after receipt of the notice an annual
19information return for the tax year specified in the notice.
20Such annual return to the Department shall include a statement
21of gross receipts as shown by the taxpayer's last Federal
22income tax return. If the total receipts of the business as
23reported in the Federal income tax return do not agree with the
24gross receipts reported to the Department of Revenue for the
25same period, the taxpayer shall attach to his annual return a
26schedule showing a reconciliation of the 2 amounts and the

 

 

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

 

 

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

 

 

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1respect to such sales, if the servicemen who are affected do
2not make written objection to the Department to this
3arrangement.
4(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
598-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
698-1098, eff. 8-26-14; 99-352, eff. 8-12-15.)
 
7    (35 ILCS 115/17)  (from Ch. 120, par. 439.117)
8    Sec. 17. If it shall appear that an amount of tax or
9penalty or interest has been paid in error hereunder directly
10to the Department by a serviceman, whether such amount be paid
11through a mistake of fact or an error of law, such serviceman
12may file a claim for credit or refund with the Department. If
13it shall appear that an amount of tax or penalty or interest
14has been paid in error to the Department hereunder by a
15supplier who is required or authorized to collect and remit the
16Service Occupation Tax, whether such amount be paid through a
17mistake of fact or an error of law, such supplier may file a
18claim for credit or refund with the Department, provided that
19no credit shall be allowed nor any refund made for any amount
20paid by any such supplier unless it shall appear that he bore
21the burden of such amount and did not shift the burden thereof
22to anyone else (as in the case of a duplicated tax payment
23which the supplier made to the Department and did not collect
24from anyone else), or unless it shall appear that he or his
25legal representative has unconditionally repaid such amount to

 

 

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1his vendee (1) who bore the burden thereof and has not shifted
2such burden directly or indirectly in any manner whatsoever;
3(2) who, if he has shifted such burden, has repaid
4unconditionally such amount to his own vendee, and (3) who is
5not entitled to receive any reimbursement therefor from any
6other source than from his supplier, nor to be relieved of such
7burden in any other manner whatsoever.
8    Any credit or refund that is allowed under this Section
9shall bear interest at the rate and in the manner specified in
10the Uniform Penalty and Interest Act.
11    Any claim filed hereunder shall be filed upon a form
12prescribed and furnished by the Department. The claim shall be
13signed by the claimant (or by the claimant's legal
14representative if the claimant shall have died or become a
15person under legal disability), or by a duly authorized agent
16of the claimant or his or her legal representative.
17    A claim for credit or refund shall be considered to have
18been filed with the Department on the date upon which it is
19received by the Department. Upon receipt of any claim for
20credit or refund filed under this Act, any officer or employee
21of the Department, authorized in writing by the Director of
22Revenue to acknowledge receipt of such claims on behalf of the
23Department, shall execute on behalf of the Department, and
24shall deliver or mail to the claimant or his or her duly
25authorized agent, a written receipt, acknowledging that the
26claim has been filed with the Department, describing the claim

 

 

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1in sufficient detail to identify it and stating the date upon
2which the claim was received by the Department. Such written
3receipt shall be prima facie evidence that the Department
4received the claim described in such receipt and shall be prima
5facie evidence of the date when such claim was received by the
6Department. In the absence of such a written receipt, the
7records of the Department as to when the claim was received by
8the Department, or as to whether or not the claim was received
9at all by the Department, shall be deemed to be prima facie
10correct upon these questions in the event of any dispute
11between the claimant (or his legal representative) and the
12Department concerning these questions.
13    In case the Department determines that the claimant is
14entitled to a refund, such refund shall be made only from the
15Sales and Excise Tax Refund Fund such appropriation as may be
16available for that purpose. If it appears unlikely that the
17amount available appropriated would permit everyone having a
18claim allowed during the period covered by such appropriation
19to elect to receive a cash refund, the Department, by rule or
20regulation, shall provide for the payment of refunds in
21hardship cases and shall define what types of cases qualify as
22hardship cases.
23(Source: P.A. 87-205.)
 
24    Section 25. The Retailers' Occupation Tax Act is amended by
25changing Sections 3 and 6 as follows:
 

 

 

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1    (35 ILCS 120/3)  (from Ch. 120, par. 442)
2    Sec. 3. Except as provided in this Section, on or before
3the twentieth day of each calendar month, every person engaged
4in the business of selling tangible personal property at retail
5in this State during the preceding calendar month shall file a
6return with the Department, stating:
7        1. The name of the seller;
8        2. His residence address and the address of his
9    principal place of business and the address of the
10    principal place of business (if that is a different
11    address) from which he engages in the business of selling
12    tangible personal property at retail in this State;
13        3. Total amount of receipts received by him during the
14    preceding calendar month or quarter, as the case may be,
15    from sales of tangible personal property, and from services
16    furnished, by him during such preceding calendar month or
17    quarter;
18        4. Total amount received by him during the preceding
19    calendar month or quarter on charge and time sales of
20    tangible personal property, and from services furnished,
21    by him prior to the month or quarter for which the return
22    is filed;
23        5. Deductions allowed by law;
24        6. Gross receipts which were received by him during the
25    preceding calendar month or quarter and upon the basis of

 

 

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1    which the tax is imposed;
2        7. The amount of credit provided in Section 2d of this
3    Act;
4        8. The amount of tax due;
5        9. The signature of the taxpayer; and
6        10. Such other reasonable information as the
7    Department may require.
8    If a taxpayer fails to sign a return within 30 days after
9the proper notice and demand for signature by the Department,
10the return shall be considered valid and any amount shown to be
11due on the return shall be deemed assessed.
12    Each return shall be accompanied by the statement of
13prepaid tax issued pursuant to Section 2e for which credit is
14claimed.
15    Prior to October 1, 2003, and on and after September 1,
162004 a retailer may accept a Manufacturer's Purchase Credit
17certification from a purchaser in satisfaction of Use Tax as
18provided in Section 3-85 of the Use Tax Act if the purchaser
19provides the appropriate documentation as required by Section
203-85 of the Use Tax Act. A Manufacturer's Purchase Credit
21certification, accepted by a retailer prior to October 1, 2003
22and on and after September 1, 2004 as provided in Section 3-85
23of the Use Tax Act, may be used by that retailer to satisfy
24Retailers' Occupation Tax liability in the amount claimed in
25the certification, not to exceed 6.25% of the receipts subject
26to tax from a qualifying purchase. A Manufacturer's Purchase

 

 

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1Credit reported on any original or amended return filed under
2this Act after October 20, 2003 for reporting periods prior to
3September 1, 2004 shall be disallowed. Manufacturer's
4Purchaser Credit reported on annual returns due on or after
5January 1, 2005 will be disallowed for periods prior to
6September 1, 2004. No Manufacturer's Purchase Credit may be
7used after September 30, 2003 through August 31, 2004 to
8satisfy any tax liability imposed under this Act, including any
9audit liability.
10    The Department may require returns to be filed on a
11quarterly basis. If so required, a return for each calendar
12quarter shall be filed on or before the twentieth day of the
13calendar month following the end of such calendar quarter. The
14taxpayer shall also file a return with the Department for each
15of the first two months of each calendar quarter, on or before
16the twentieth day of the following calendar month, stating:
17        1. The name of the seller;
18        2. The address of the principal place of business from
19    which he engages in the business of selling tangible
20    personal property at retail in this State;
21        3. The total amount of taxable receipts received by him
22    during the preceding calendar month from sales of tangible
23    personal property by him during such preceding calendar
24    month, including receipts from charge and time sales, but
25    less all deductions allowed by law;
26        4. The amount of credit provided in Section 2d of this

 

 

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1    Act;
2        5. The amount of tax due; and
3        6. Such other reasonable information as the Department
4    may require.
5    Beginning on October 1, 2003, any person who is not a
6licensed distributor, importing distributor, or manufacturer,
7as defined in the Liquor Control Act of 1934, but is engaged in
8the business of selling, at retail, alcoholic liquor shall file
9a statement with the Department of Revenue, in a format and at
10a time prescribed by the Department, showing the total amount
11paid for alcoholic liquor purchased during the preceding month
12and such other information as is reasonably required by the
13Department. The Department may adopt rules to require that this
14statement be filed in an electronic or telephonic format. Such
15rules may provide for exceptions from the filing requirements
16of this paragraph. For the purposes of this paragraph, the term
17"alcoholic liquor" shall have the meaning prescribed in the
18Liquor Control Act of 1934.
19    Beginning on October 1, 2003, every distributor, importing
20distributor, and manufacturer of alcoholic liquor as defined in
21the Liquor Control Act of 1934, shall file a statement with the
22Department of Revenue, no later than the 10th day of the month
23for the preceding month during which transactions occurred, by
24electronic means, showing the total amount of gross receipts
25from the sale of alcoholic liquor sold or distributed during
26the preceding month to purchasers; identifying the purchaser to

 

 

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1whom it was sold or distributed; the purchaser's tax
2registration number; and such other information reasonably
3required by the Department. A distributor, importing
4distributor, or manufacturer of alcoholic liquor must
5personally deliver, mail, or provide by electronic means to
6each retailer listed on the monthly statement a report
7containing a cumulative total of that distributor's, importing
8distributor's, or manufacturer's total sales of alcoholic
9liquor to that retailer no later than the 10th day of the month
10for the preceding month during which the transaction occurred.
11The distributor, importing distributor, or manufacturer shall
12notify the retailer as to the method by which the distributor,
13importing distributor, or manufacturer will provide the sales
14information. If the retailer is unable to receive the sales
15information by electronic means, the distributor, importing
16distributor, or manufacturer shall furnish the sales
17information by personal delivery or by mail. For purposes of
18this paragraph, the term "electronic means" includes, but is
19not limited to, the use of a secure Internet website, e-mail,
20or facsimile.
21    If a total amount of less than $1 is payable, refundable or
22creditable, such amount shall be disregarded if it is less than
2350 cents and shall be increased to $1 if it is 50 cents or more.
24    Beginning October 1, 1993, a taxpayer who has an average
25monthly tax liability of $150,000 or more shall make all
26payments required by rules of the Department by electronic

 

 

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

 

 

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

 

 

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1being due by October 20 of such year, and with the return for
2October, November and December of a given year being due by
3January 20 of the following year.
4    If the retailer is otherwise required to file a monthly or
5quarterly return and if the retailer's average monthly tax
6liability with the Department does not exceed $50, the
7Department may authorize his returns to be filed on an annual
8basis, with the return for a given year being due by January 20
9of the following year.
10    Such quarter annual and annual returns, as to form and
11substance, shall be subject to the same requirements as monthly
12returns.
13    Notwithstanding any other provision in this Act concerning
14the time within which a retailer may file his return, in the
15case of any retailer who ceases to engage in a kind of business
16which makes him responsible for filing returns under this Act,
17such retailer shall file a final return under this Act with the
18Department not more than one month after discontinuing such
19business.
20    Where the same person has more than one business registered
21with the Department under separate registrations under this
22Act, such person may not file each return that is due as a
23single return covering all such registered businesses, but
24shall file separate returns for each such registered business.
25    In addition, with respect to motor vehicles, watercraft,
26aircraft, and trailers that are required to be registered with

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1of such delay by the retailer and may (upon the Department
2being satisfied of the truth of such certification) transmit
3the information required by the transaction reporting return
4and the remittance for tax or proof of exemption directly to
5the Department and obtain his tax receipt or exemption
6determination, in which event the transaction reporting return
7and tax remittance (if a tax payment was required) shall be
8credited by the Department to the proper retailer's account
9with the Department, but without the 2.1% or 1.75% discount
10provided for in this Section being allowed. When the user pays
11the tax directly to the Department, he shall pay the tax in the
12same amount and in the same form in which it would be remitted
13if the tax had been remitted to the Department by the retailer.
14    Refunds made by the seller during the preceding return
15period to purchasers, on account of tangible personal property
16returned to the seller, shall be allowed as a deduction under
17subdivision 5 of his monthly or quarterly return, as the case
18may be, in case the seller had theretofore included the
19receipts from the sale of such tangible personal property in a
20return filed by him and had paid the tax imposed by this Act
21with respect to such receipts.
22    Where the seller is a corporation, the return filed on
23behalf of such corporation shall be signed by the president,
24vice-president, secretary or treasurer or by the properly
25accredited agent of such corporation.
26    Where the seller is a limited liability company, the return

 

 

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1filed on behalf of the limited liability company shall be
2signed by a manager, member, or properly accredited agent of
3the limited liability company.
4    Except as provided in this Section, the retailer filing the
5return under this Section shall, at the time of filing such
6return, pay to the Department the amount of tax imposed by this
7Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
8on and after January 1, 1990, or $5 per calendar year,
9whichever is greater, which is allowed to reimburse the
10retailer for the expenses incurred in keeping records,
11preparing and filing returns, remitting the tax and supplying
12data to the Department on request. Any prepayment made pursuant
13to Section 2d of this Act shall be included in the amount on
14which such 2.1% or 1.75% discount is computed. In the case of
15retailers who report and pay the tax on a transaction by
16transaction basis, as provided in this Section, such discount
17shall be taken with each such tax remittance instead of when
18such retailer files his periodic return. The Department may
19disallow the discount for retailers whose certificate of
20registration is revoked at the time the return is filed, but
21only if the Department's decision to revoke the certificate of
22registration has become final.
23    Before October 1, 2000, if the taxpayer's average monthly
24tax liability to the Department under this Act, the Use Tax
25Act, the Service Occupation Tax Act, and the Service Use Tax
26Act, excluding any liability for prepaid sales tax to be

 

 

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1remitted in accordance with Section 2d of this Act, was $10,000
2or more during the preceding 4 complete calendar quarters, he
3shall file a return with the Department each month by the 20th
4day of the month next following the month during which such tax
5liability is incurred and shall make payments to the Department
6on or before the 7th, 15th, 22nd and last day of the month
7during which such liability is incurred. On and after October
81, 2000, if the taxpayer's average monthly tax liability to the
9Department under this Act, the Use Tax Act, the Service
10Occupation Tax Act, and the Service Use Tax Act, excluding any
11liability for prepaid sales tax to be remitted in accordance
12with Section 2d of this Act, was $20,000 or more during the
13preceding 4 complete calendar quarters, he shall file a return
14with the Department each month by the 20th day of the month
15next following the month during which such tax liability is
16incurred and shall make payment to the Department on or before
17the 7th, 15th, 22nd and last day of the month during which such
18liability is incurred. If the month during which such tax
19liability is incurred began prior to January 1, 1985, each
20payment shall be in an amount equal to 1/4 of the taxpayer's
21actual liability for the month or an amount set by the
22Department not to exceed 1/4 of the average monthly liability
23of the taxpayer to the Department for the preceding 4 complete
24calendar quarters (excluding the month of highest liability and
25the month of lowest liability in such 4 quarter period). If the
26month during which such tax liability is incurred begins on or

 

 

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1after January 1, 1985 and prior to January 1, 1987, each
2payment shall be in an amount equal to 22.5% of the taxpayer's
3actual liability for the month or 27.5% of the taxpayer's
4liability for the same calendar month of the preceding year. If
5the month during which such tax liability is incurred begins on
6or after January 1, 1987 and prior to January 1, 1988, each
7payment shall be in an amount equal to 22.5% of the taxpayer's
8actual liability for the month or 26.25% of the taxpayer's
9liability for the same calendar month of the preceding year. If
10the month during which such tax liability is incurred begins on
11or after January 1, 1988, and prior to January 1, 1989, or
12begins on or after January 1, 1996, each payment shall be in an
13amount equal to 22.5% of the taxpayer's actual liability for
14the month or 25% of the taxpayer's liability for the same
15calendar month of the preceding year. If the month during which
16such tax liability is incurred begins on or after January 1,
171989, and prior to January 1, 1996, each payment shall be in an
18amount equal to 22.5% of the taxpayer's actual liability for
19the month or 25% of the taxpayer's liability for the same
20calendar month of the preceding year or 100% of the taxpayer's
21actual liability for the quarter monthly reporting period. The
22amount of such quarter monthly payments shall be credited
23against the final tax liability of the taxpayer's return for
24that month. Before October 1, 2000, once applicable, the
25requirement of the making of quarter monthly payments to the
26Department by taxpayers having an average monthly tax liability

 

 

SB2218- 90 -LRB099 15791 HLH 40098 b

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

 

 

SB2218- 91 -LRB099 15791 HLH 40098 b

1business has occurred which causes the taxpayer to anticipate
2that his average monthly tax liability for the reasonably
3foreseeable future will fall below the $20,000 threshold stated
4above, then such taxpayer may petition the Department for a
5change in such taxpayer's reporting status. The Department
6shall change such taxpayer's reporting status unless it finds
7that such change is seasonal in nature and not likely to be
8long term. If any such quarter monthly payment is not paid at
9the time or in the amount required by this Section, then the
10taxpayer shall be liable for penalties and interest on the
11difference between the minimum amount due as a payment and the
12amount of such quarter monthly payment actually and timely
13paid, except insofar as the taxpayer has previously made
14payments for that month to the Department in excess of the
15minimum payments previously due as provided in this Section.
16The Department shall make reasonable rules and regulations to
17govern the quarter monthly payment amount and quarter monthly
18payment dates for taxpayers who file on other than a calendar
19monthly basis.
20    The provisions of this paragraph apply before October 1,
212001. Without regard to whether a taxpayer is required to make
22quarter monthly payments as specified above, any taxpayer who
23is required by Section 2d of this Act to collect and remit
24prepaid taxes and has collected prepaid taxes which average in
25excess of $25,000 per month during the preceding 2 complete
26calendar quarters, shall file a return with the Department as

 

 

SB2218- 92 -LRB099 15791 HLH 40098 b

1required by Section 2f and shall make payments to the
2Department on or before the 7th, 15th, 22nd and last day of the
3month during which such liability is incurred. If the month
4during which such tax liability is incurred began prior to the
5effective date of this amendatory Act of 1985, each payment
6shall be in an amount not less than 22.5% of the taxpayer's
7actual liability under Section 2d. If the month during which
8such tax liability is incurred begins on or after January 1,
91986, each payment shall be in an amount equal to 22.5% of the
10taxpayer's actual liability for the month or 27.5% of the
11taxpayer's liability for the same calendar month of the
12preceding calendar year. If the month during which such tax
13liability is incurred begins on or after January 1, 1987, each
14payment shall be in an amount equal to 22.5% of the taxpayer's
15actual liability for the month or 26.25% of the taxpayer's
16liability for the same calendar month of the preceding year.
17The amount of such quarter monthly payments shall be credited
18against the final tax liability of the taxpayer's return for
19that month filed under this Section or Section 2f, as the case
20may be. Once applicable, the requirement of the making of
21quarter monthly payments to the Department pursuant to this
22paragraph shall continue until such taxpayer's average monthly
23prepaid tax collections during the preceding 2 complete
24calendar quarters is $25,000 or less. If any such quarter
25monthly payment is not paid at the time or in the amount
26required, the taxpayer shall be liable for penalties and

 

 

SB2218- 93 -LRB099 15791 HLH 40098 b

1interest on such difference, except insofar as the taxpayer has
2previously made payments for that month in excess of the
3minimum payments previously due.
4    The provisions of this paragraph apply on and after October
51, 2001. Without regard to whether a taxpayer is required to
6make quarter monthly payments as specified above, any taxpayer
7who is required by Section 2d of this Act to collect and remit
8prepaid taxes and has collected prepaid taxes that average in
9excess of $20,000 per month during the preceding 4 complete
10calendar quarters shall file a return with the Department as
11required by Section 2f and shall make payments to the
12Department on or before the 7th, 15th, 22nd and last day of the
13month during which the liability is incurred. Each payment
14shall be in an amount equal to 22.5% of the taxpayer's actual
15liability for the month or 25% of the taxpayer's liability for
16the same calendar month of the preceding year. The amount of
17the quarter monthly payments shall be credited against the
18final tax liability of the taxpayer's return for that month
19filed under this Section or Section 2f, as the case may be.
20Once applicable, the requirement of the making of quarter
21monthly payments to the Department pursuant to this paragraph
22shall continue until the taxpayer's average monthly prepaid tax
23collections during the preceding 4 complete calendar quarters
24(excluding the month of highest liability and the month of
25lowest liability) is less than $19,000 or until such taxpayer's
26average monthly liability to the Department as computed for

 

 

SB2218- 94 -LRB099 15791 HLH 40098 b

1each calendar quarter of the 4 preceding complete calendar
2quarters is less than $20,000. If any such quarter monthly
3payment is not paid at the time or in the amount required, the
4taxpayer shall be liable for penalties and interest on such
5difference, except insofar as the taxpayer has previously made
6payments for that month in excess of the minimum payments
7previously due.
8    If any payment provided for in this Section exceeds the
9taxpayer's liabilities under this Act, the Use Tax Act, the
10Service Occupation Tax Act and the Service Use Tax Act, as
11shown on an original monthly return, the Department shall, if
12requested by the taxpayer, issue to the taxpayer a credit
13memorandum no later than 30 days after the date of payment. The
14credit evidenced by such credit memorandum may be assigned by
15the taxpayer to a similar taxpayer under this Act, the Use Tax
16Act, the Service Occupation Tax Act or the Service Use Tax Act,
17in accordance with reasonable rules and regulations to be
18prescribed by the Department. If no such request is made, the
19taxpayer may credit such excess payment against tax liability
20subsequently to be remitted to the Department under this Act,
21the Use Tax Act, the Service Occupation Tax Act or the Service
22Use Tax Act, in accordance with reasonable rules and
23regulations prescribed by the Department. If the Department
24subsequently determined that all or any part of the credit
25taken was not actually due to the taxpayer, the taxpayer's 2.1%
26and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%

 

 

SB2218- 95 -LRB099 15791 HLH 40098 b

1of the difference between the credit taken and that actually
2due, and that taxpayer shall be liable for penalties and
3interest on such difference.
4    If a retailer of motor fuel is entitled to a credit under
5Section 2d of this Act which exceeds the taxpayer's liability
6to the Department under this Act for the month which the
7taxpayer is filing a return, the Department shall issue the
8taxpayer a credit memorandum for the excess.
9    Beginning January 1, 1990, each month the Department shall
10pay into the Local Government Tax Fund, a special fund in the
11State treasury which is hereby created, the net revenue
12realized for the preceding month from the 1% tax on sales of
13food for human consumption which is to be consumed off the
14premises where it is sold (other than alcoholic beverages, soft
15drinks and food which has been prepared for immediate
16consumption) and prescription and nonprescription medicines,
17drugs, medical appliances and insulin, urine testing
18materials, syringes and needles used by diabetics.
19    Beginning January 1, 1990, each month the Department shall
20pay into the County and Mass Transit District Fund, a special
21fund in the State treasury which is hereby created, 4% of the
22net revenue realized for the preceding month from the 6.25%
23general rate.
24    Beginning August 1, 2000, each month the Department shall
25pay into the County and Mass Transit District Fund 20% of the
26net revenue realized for the preceding month from the 1.25%

 

 

SB2218- 96 -LRB099 15791 HLH 40098 b

1rate on the selling price of motor fuel and gasohol. Beginning
2September 1, 2010, each month the Department shall pay into the
3County and Mass Transit District Fund 20% of the net revenue
4realized for the preceding month from the 1.25% rate on the
5selling price of sales tax holiday items.
6    Beginning January 1, 1990, each month the Department shall
7pay into the Local Government Tax Fund 16% of the net revenue
8realized for the preceding month from the 6.25% general rate on
9the selling price of tangible personal property.
10    Beginning August 1, 2000, each month the Department shall
11pay into the Local Government Tax Fund 80% of the net revenue
12realized for the preceding month from the 1.25% rate on the
13selling price of motor fuel and gasohol. Beginning September 1,
142010, each month the Department shall pay into the Local
15Government Tax Fund 80% of the net revenue realized for the
16preceding month from the 1.25% rate on the selling price of
17sales tax holiday items.
18    Beginning October 1, 2009, each month the Department shall
19pay into the Capital Projects Fund an amount that is equal to
20an amount estimated by the Department to represent 80% of the
21net revenue realized for the preceding month from the sale of
22candy, grooming and hygiene products, and soft drinks that had
23been taxed at a rate of 1% prior to September 1, 2009 but that
24are now taxed at 6.25%.
25    Beginning July 1, 2011, each month the Department shall pay
26into the Clean Air Act (CAA) Permit Fund 80% of the net revenue

 

 

SB2218- 97 -LRB099 15791 HLH 40098 b

1realized for the preceding month from the 6.25% general rate on
2the selling price of sorbents used in Illinois in the process
3of sorbent injection as used to comply with the Environmental
4Protection Act or the federal Clean Air Act, but the total
5payment into the Clean Air Act (CAA) Permit Fund under this Act
6and the Use Tax Act shall not exceed $2,000,000 in any fiscal
7year.
8    Beginning July 1, 2013, each month the Department shall pay
9into the Underground Storage Tank Fund from the proceeds
10collected under this Act, the Use Tax Act, the Service Use Tax
11Act, and the Service Occupation Tax Act an amount equal to the
12average monthly deficit in the Underground Storage Tank Fund
13during the prior year, as certified annually by the Illinois
14Environmental Protection Agency, but the total payment into the
15Underground Storage Tank Fund under this Act, the Use Tax Act,
16the Service Use Tax Act, and the Service Occupation Tax Act
17shall not exceed $18,000,000 in any State fiscal year. As used
18in this paragraph, the "average monthly deficit" shall be equal
19to the difference between the average monthly claims for
20payment by the fund and the average monthly revenues deposited
21into the fund, excluding payments made pursuant to this
22paragraph.
23    Beginning July 1, 2015, of the remainder of the moneys
24received by the Department under the Use Tax Act, the Service
25Use Tax Act, the Service Occupation Tax Act, and this Act, each
26month the Department shall deposit $500,000 into the State

 

 

SB2218- 98 -LRB099 15791 HLH 40098 b

1Crime Laboratory Fund.
2    Of the remainder of the moneys received by the Department
3pursuant to this Act, (a) 1.75% thereof shall be paid into the
4Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
5and after July 1, 1989, 3.8% thereof shall be paid into the
6Build Illinois Fund; provided, however, that if in any fiscal
7year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
8may be, of the moneys received by the Department and required
9to be paid into the Build Illinois Fund pursuant to this Act,
10Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
11Act, and Section 9 of the Service Occupation Tax Act, such Acts
12being hereinafter called the "Tax Acts" and such aggregate of
132.2% or 3.8%, as the case may be, of moneys being hereinafter
14called the "Tax Act Amount", and (2) the amount transferred to
15the Build Illinois Fund from the State and Local Sales Tax
16Reform Fund shall be less than the Annual Specified Amount (as
17hereinafter defined), an amount equal to the difference shall
18be immediately paid into the Build Illinois Fund from other
19moneys received by the Department pursuant to the Tax Acts; the
20"Annual Specified Amount" means the amounts specified below for
21fiscal years 1986 through 1993:
22Fiscal YearAnnual Specified Amount
231986$54,800,000
241987$76,650,000
251988$80,480,000
261989$88,510,000

 

 

SB2218- 99 -LRB099 15791 HLH 40098 b

11990$115,330,000
21991$145,470,000
31992$182,730,000
41993$206,520,000;
5and means the Certified Annual Debt Service Requirement (as
6defined in Section 13 of the Build Illinois Bond Act) or the
7Tax Act Amount, whichever is greater, for fiscal year 1994 and
8each fiscal year thereafter; and further provided, that if on
9the last business day of any month the sum of (1) the Tax Act
10Amount required to be deposited into the Build Illinois Bond
11Account in the Build Illinois Fund during such month and (2)
12the amount transferred to the Build Illinois Fund from the
13State and Local Sales Tax Reform Fund shall have been less than
141/12 of the Annual Specified Amount, an amount equal to the
15difference shall be immediately paid into the Build Illinois
16Fund from other moneys received by the Department pursuant to
17the Tax Acts; and, further provided, that in no event shall the
18payments required under the preceding proviso result in
19aggregate payments into the Build Illinois Fund pursuant to
20this clause (b) for any fiscal year in excess of the greater of
21(i) the Tax Act Amount or (ii) the Annual Specified Amount for
22such fiscal year. The amounts payable into the Build Illinois
23Fund under clause (b) of the first sentence in this paragraph
24shall be payable only until such time as the aggregate amount
25on deposit under each trust indenture securing Bonds issued and
26outstanding pursuant to the Build Illinois Bond Act is

 

 

SB2218- 100 -LRB099 15791 HLH 40098 b

1sufficient, taking into account any future investment income,
2to fully provide, in accordance with such indenture, for the
3defeasance of or the payment of the principal of, premium, if
4any, and interest on the Bonds secured by such indenture and on
5any Bonds expected to be issued thereafter and all fees and
6costs payable with respect thereto, all as certified by the
7Director of the Bureau of the Budget (now Governor's Office of
8Management and Budget). If on the last business day of any
9month in which Bonds are outstanding pursuant to the Build
10Illinois Bond Act, the aggregate of moneys deposited in the
11Build Illinois Bond Account in the Build Illinois Fund in such
12month shall be less than the amount required to be transferred
13in such month from the Build Illinois Bond Account to the Build
14Illinois Bond Retirement and Interest Fund pursuant to Section
1513 of the Build Illinois Bond Act, an amount equal to such
16deficiency shall be immediately paid from other moneys received
17by the Department pursuant to the Tax Acts to the Build
18Illinois Fund; provided, however, that any amounts paid to the
19Build Illinois Fund in any fiscal year pursuant to this
20sentence shall be deemed to constitute payments pursuant to
21clause (b) of the first sentence of this paragraph and shall
22reduce the amount otherwise payable for such fiscal year
23pursuant to that clause (b). The moneys received by the
24Department pursuant to this Act and required to be deposited
25into the Build Illinois Fund are subject to the pledge, claim
26and charge set forth in Section 12 of the Build Illinois Bond

 

 

SB2218- 101 -LRB099 15791 HLH 40098 b

1Act.
2    Subject to payment of amounts into the Build Illinois Fund
3as provided in the preceding paragraph or in any amendment
4thereto hereafter enacted, the following specified monthly
5installment of the amount requested in the certificate of the
6Chairman of the Metropolitan Pier and Exposition Authority
7provided under Section 8.25f of the State Finance Act, but not
8in excess of sums designated as "Total Deposit", shall be
9deposited in the aggregate from collections under Section 9 of
10the Use Tax Act, Section 9 of the Service Use Tax Act, Section
119 of the Service Occupation Tax Act, and Section 3 of the
12Retailers' Occupation Tax Act into the McCormick Place
13Expansion Project Fund in the specified fiscal years.
14Fiscal YearTotal Deposit
151993         $0
161994 53,000,000
171995 58,000,000
181996 61,000,000
191997 64,000,000
201998 68,000,000
211999 71,000,000
222000 75,000,000
232001 80,000,000
242002 93,000,000
252003 99,000,000

 

 

SB2218- 102 -LRB099 15791 HLH 40098 b

12004103,000,000
22005108,000,000
32006113,000,000
42007119,000,000
52008126,000,000
62009132,000,000
72010139,000,000
82011146,000,000
92012153,000,000
102013161,000,000
112014170,000,000
122015179,000,000
132016189,000,000
142017199,000,000
152018210,000,000
162019221,000,000
172020233,000,000
182021246,000,000
192022260,000,000
202023275,000,000
212024 275,000,000
222025 275,000,000
232026 279,000,000
242027 292,000,000
252028 307,000,000
262029 322,000,000

 

 

SB2218- 103 -LRB099 15791 HLH 40098 b

12030 338,000,000
22031 350,000,000
32032 350,000,000
4and
5each fiscal year
6thereafter that bonds
7are outstanding under
8Section 13.2 of the
9Metropolitan Pier and
10Exposition Authority Act,
11but not after fiscal year 2060.
12    Beginning July 20, 1993 and in each month of each fiscal
13year thereafter, one-eighth of the amount requested in the
14certificate of the Chairman of the Metropolitan Pier and
15Exposition Authority for that fiscal year, less the amount
16deposited into the McCormick Place Expansion Project Fund by
17the State Treasurer in the respective month under subsection
18(g) of Section 13 of the Metropolitan Pier and Exposition
19Authority Act, plus cumulative deficiencies in the deposits
20required under this Section for previous months and years,
21shall be deposited into the McCormick Place Expansion Project
22Fund, until the full amount requested for the fiscal year, but
23not in excess of the amount specified above as "Total Deposit",
24has been deposited.
25    Beginning on July 1, 2016, subject to payment of amounts
26into the Capital Projects Fund, the Clean Air Act (CAA) Permit

 

 

SB2218- 104 -LRB099 15791 HLH 40098 b

1Fund, the Build Illinois Fund, and the McCormick Place
2Expansion Project Fund pursuant to the preceding paragraphs or
3in any amendments thereto hereafter enacted, the Department
4shall each month deposit into the Sales and Excise Tax Refund
5Fund 0.18% of 80% of the net revenue realized for the preceding
6month from the 6.25% general rate on the selling price of
7tangible personal property.
8    Subject to payment of amounts into the Build Illinois Fund
9and the McCormick Place Expansion Project Fund pursuant to the
10preceding paragraphs or in any amendments thereto hereafter
11enacted, beginning July 1, 1993 and ending on September 30,
122013, the Department shall each month pay into the Illinois Tax
13Increment Fund 0.27% of 80% of the net revenue realized for the
14preceding month from the 6.25% general rate on the selling
15price of tangible personal property.
16    Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning with the receipt of the first report of
20taxes paid by an eligible business and continuing for a 25-year
21period, the Department shall each month pay into the Energy
22Infrastructure Fund 80% of the net revenue realized from the
236.25% general rate on the selling price of Illinois-mined coal
24that was sold to an eligible business. For purposes of this
25paragraph, the term "eligible business" means a new electric
26generating facility certified pursuant to Section 605-332 of

 

 

SB2218- 105 -LRB099 15791 HLH 40098 b

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

 

 

SB2218- 106 -LRB099 15791 HLH 40098 b

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

 

 

SB2218- 107 -LRB099 15791 HLH 40098 b

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

 

 

SB2218- 108 -LRB099 15791 HLH 40098 b

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

 

 

SB2218- 109 -LRB099 15791 HLH 40098 b

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

 

 

SB2218- 110 -LRB099 15791 HLH 40098 b

1(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
298-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff.
38-26-14; 99-352, eff. 8-12-15.)
 
4    (35 ILCS 120/6)  (from Ch. 120, par. 445)
5    Sec. 6. Credit memorandum or refund. If it appears, after
6claim therefor filed with the Department, that an amount of tax
7or penalty or interest has been paid which was not due under
8this Act, whether as the result of a mistake of fact or an
9error of law, except as hereinafter provided, then the
10Department shall issue a credit memorandum or refund to the
11person who made the erroneous payment or, if that person died
12or became a person under legal disability, to his or her legal
13representative, as such. For purposes of this Section, the tax
14is deemed to be erroneously paid by a retailer when the
15manufacturer of a motor vehicle sold by the retailer accepts
16the return of that automobile and refunds to the purchaser the
17selling price of that vehicle as provided in the New Vehicle
18Buyer Protection Act. When a motor vehicle is returned for a
19refund of the purchase price under the New Vehicle Buyer
20Protection Act, the Department shall issue a credit memorandum
21or a refund for the amount of tax paid by the retailer under
22this Act attributable to the initial sale of that vehicle.
23Claims submitted by the retailer are subject to the same
24restrictions and procedures provided for in this Act. If it is
25determined that the Department should issue a credit memorandum

 

 

SB2218- 111 -LRB099 15791 HLH 40098 b

1or refund, the Department may first apply the amount thereof
2against any tax or penalty or interest due or to become due
3under this Act or under the Use Tax Act, the Service Occupation
4Tax Act, the Service Use Tax Act, any local occupation or use
5tax administered by the Department, Section 4 of the Water
6Commission Act of 1985, subsections (b), (c) and (d) of Section
75.01 of the Local Mass Transit District Act, or subsections
8(e), (f) and (g) of Section 4.03 of the Regional Transportation
9Authority Act, from the person who made the erroneous payment.
10If no tax or penalty or interest is due and no proceeding is
11pending 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, the Use Tax Act, the Service Occupation
18Tax Act, the Service Use Tax Act, any local occupation or use
19tax administered by the Department, Section 4 of the Water
20Commission Act of 1985, subsections (b), (c) and (d) of Section
215.01 of the Local Mass Transit District Act, or subsections
22(e), (f) and (g) of Section 4.03 of the Regional Transportation
23Authority Act, and the amount thereof applied by the Department
24against any tax or penalty or interest due or to become due
25under this Act or under the Use Tax Act, the Service Occupation
26Tax Act, the Service Use Tax Act, any local occupation or use

 

 

SB2218- 112 -LRB099 15791 HLH 40098 b

1tax administered by the Department, Section 4 of the Water
2Commission Act of 1985, subsections (b), (c) and (d) of Section
35.01 of the Local Mass Transit District Act, or subsections
4(e), (f) and (g) of Section 4.03 of the Regional Transportation
5Authority Act, from such assignee. However, as to any claim for
6credit or refund filed with the Department on and after each
7January 1 and July 1 no amount of tax or penalty or interest
8erroneously paid (either in total or partial liquidation of a
9tax or penalty or amount of interest under this Act) more than
103 years prior to such January 1 and July 1, respectively, shall
11be credited or refunded, except that if both the Department and
12the taxpayer have agreed to an extension of time to issue a
13notice of tax liability as provided in Section 4 of this Act,
14such claim may be filed at any time prior to the expiration of
15the period agreed upon.
16    No claim may be allowed for any amount paid to the
17Department, whether paid voluntarily or involuntarily, if paid
18in total or partial liquidation of an assessment which had
19become final before the claim for credit or refund to recover
20the amount so paid is filed with the Department, or if paid in
21total or partial liquidation of a judgment or order of court.
22No credit may be allowed or refund made for any amount paid by
23or collected from any claimant unless it appears (a) that the
24claimant bore the burden of such amount and has not been
25relieved thereof nor reimbursed therefor and has not shifted
26such burden directly or indirectly through inclusion of such

 

 

SB2218- 113 -LRB099 15791 HLH 40098 b

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

 

 

SB2218- 114 -LRB099 15791 HLH 40098 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    If a retailer who has failed to pay retailers' occupation
8tax on gross receipts from retail sales is required by the
9Department to pay such tax, such retailer, without filing any
10formal claim with the Department, shall be allowed to take
11credit against such retailers' occupation tax liability to the
12extent, if any, to which such retailer has paid an amount
13equivalent to retailers' occupation tax or has paid use tax in
14error to his or her vendor or vendors of the same tangible
15personal property which such retailer bought for resale and did
16not first use before selling it, and no penalty or interest
17shall be charged to such retailer on the amount of such credit.
18However, when such credit is allowed to the retailer by the
19Department, the vendor is precluded from refunding any of that
20tax to the retailer and filing a claim for credit or refund
21with respect thereto with the Department. The provisions of
22this amendatory Act shall be applied retroactively, regardless
23of the date of the transaction.
24(Source: P.A. 91-901, eff. 1-1-01.)
 
25    Section 30. The Cigarette Machine Operators' Occupation

 

 

SB2218- 115 -LRB099 15791 HLH 40098 b

1Tax Act is amended by changing Section 1-55 as follows:
 
2    (35 ILCS 128/1-55)
3    Sec. 1-55. Claims; credit memorandum or refunds. If it
4appears, after claim is filed with the Department, that an
5amount of tax or penalty has been paid which was not due under
6this Act, whether as the result of a mistake of fact or an
7error of law, except as hereinafter provided, then the
8Department shall issue a credit memorandum or refund to the
9person who made the erroneous payment or, if that person has
10died or become a person under legal disability, to his or her
11legal representative.
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, the Cigarette Tax Act, the Cigarette Use Tax
16Act, or the Tobacco Products Act of 1995 from the person
17entitled to that credit or refund. For this purpose, if
18proceedings are pending to determine whether or not any tax or
19penalty is due under this Act or under the Cigarette Tax Act,
20Cigarette Use Tax Act, or the Tobacco Products Act of 1995 from
21the person, the Department may withhold issuance of the credit
22or refund pending the final disposition of such proceedings and
23may apply such credit or refund against any amount found to be
24due to the Department under this Act, the Cigarette Tax Act,
25the Cigarette Use Tax Act, or the Tobacco Products Act of 1995

 

 

SB2218- 116 -LRB099 15791 HLH 40098 b

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

 

 

SB2218- 117 -LRB099 15791 HLH 40098 b

1bear interest at the rate and in the manner set forth in the
2Uniform 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 as may be appropriations
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    The provisions of Sections 6a, 6b, and 6c of the Retailers'
14Occupation Tax Act which are not inconsistent with this Act
15shall apply, as far as practicable, to the subject matter of
16this Act to the same extent as if such provisions were included
17herein.
18(Source: P.A. 97-688, eff. 6-14-12.)
 
19    Section 35. The Cigarette Tax Act is amended by changing
20Section 9d as follows:
 
21    (35 ILCS 130/9d)  (from Ch. 120, par. 453.9d)
22    Sec. 9d. If it appears, after claim therefor filed with the
23Department, that an amount of tax or penalty has been paid
24which was not due under this Act, whether as the result of a

 

 

SB2218- 118 -LRB099 15791 HLH 40098 b

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

 

 

SB2218- 119 -LRB099 15791 HLH 40098 b

1the Cigarette Use Tax Act, and the amount thereof shall be
2applied by the Department against any tax or penalty due or to
3become due under this Act or under the Cigarette Use Tax Act
4from such assignee.
5    As to any claim filed hereunder with the Department on and
6after each January 1 and July 1, no amount of tax or penalty
7erroneously paid (either in total or partial liquidation of a
8tax or penalty under this Act) more than 3 years prior to such
9January 1 and July 1, respectively, shall be credited or
10refunded, except that if both the Department and the taxpayer
11have agreed to an extension of time to issue a notice of tax
12liability under this Act, the claim may be filed at any time
13prior to the expiration of the period agreed upon.
14    If the Department approves a claim for stamps affixed to a
15product returned to a manufacturer or for replacement of
16stamps, the credit memorandum shall not exceed the face value
17of stamps originally affixed, and replacement stamps shall be
18issued only in an amount equal to the value of the stamps
19previously affixed. Higher denomination stamps shall not be
20issued as replacements for lower value stamps. Distributors
21must prove the face value of the stamps which have been
22destroyed or returned to manufacturers when filing claims.
23    Any credit or refund that is allowed under this Act shall
24bear interest at the rate and in the manner set forth in the
25Uniform Penalty and Interest Act.
26    In case the Department determines that the claimant is

 

 

SB2218- 120 -LRB099 15791 HLH 40098 b

1entitled to a refund, such refund shall be made only from the
2Sales and Excise Tax Refund Fund such appropriation as may be
3available for that purpose. If it appears unlikely that the
4amount available appropriated would permit everyone having a
5claim allowed during the period covered by such appropriation
6to elect to receive a cash refund, the Department, by rule or
7regulation, shall provide for the payment of refunds in
8hardship cases and shall define what types of cases qualify as
9hardship cases.
10    If the Department approves a claim for the physical
11replacement of cigarette tax stamps, the Department (subject to
12the same limitations as those provided for hereinbefore in this
13Section) may issue an assignable credit memorandum or refund to
14the claimant or to the claimant's legal representative.
15    The provisions of Sections 6a, 6b and 6c of the Retailers'
16Occupation Tax Act 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 40. The Cigarette Use Tax Act is amended by
22changing Section 14a as follows:
 
23    (35 ILCS 135/14a)  (from Ch. 120, par. 453.44a)
24    Sec. 14a. If it appears, after claim therefor filed with

 

 

SB2218- 121 -LRB099 15791 HLH 40098 b

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

 

 

SB2218- 122 -LRB099 15791 HLH 40098 b

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

 

 

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1the same limitations as those provided for hereinbefore in this
2Section) may issue an assignable credit memorandum or refund to
3the claimant or to the claimant's legal representative.
4    Any credit or refund that is allowed under this Act shall
5bear interest at the rate and in the manner set forth in the
6Uniform Penalty and Interest Act.
7    The provisions of Sections 6a, 6b and 6c of the "Retailers'
8Occupation Tax Act", approved June 28, 1933, as amended, in
9effect on the effective date of this amendatory Act, as
10subsequently amended, which are not inconsistent with this Act,
11shall apply, as far as practicable, to the subject matter of
12this Act to the same extent as if such provisions were included
13herein.
14(Source: P.A. 90-491, eff. 1-1-98.)
 
15    Section 45. The Coin-Operated Amusement Device and
16Redemption Machine Tax Act is amended by changing Section 2 as
17follows:
 
18    (35 ILCS 510/2)  (from Ch. 120, par. 481b.2)
19    Sec. 2. (a) Any person, firm, limited liability company, or
20corporation which displays any device described in Section 1,
21to be played or operated by the public at any place owned or
22leased by any such person, firm, limited liability company, or
23corporation, shall before he displays such device, file in the
24Office of the Department of Revenue a form containing

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1correct.
2    Any credit or refund that is allowed under this Act shall
3bear interest at the rate and in the manner specified in the
4Uniform Penalty and Interest Act.
5    In case the Department determines that the claimant is
6entitled to a refund, such refund shall be made only from the
7Sales and Excise Tax Refund Fund such appropriation as may be
8available for that purpose. If it appears unlikely that the
9amount available appropriated would permit everyone having a
10claim allowed during the period covered by such appropriation
11to elect to receive a cash refund, the Department, by rule or
12regulation, shall provide for the payment of refunds in
13hardship cases and shall define what types of cases qualify as
14hardship cases.
15(Source: P.A. 90-491, eff. 1-1-98.)
 
16    Section 55. The Gas Revenue Tax Act is amended by changing
17Section 6 as follows:
 
18    (35 ILCS 615/6)  (from Ch. 120, par. 467.21)
19    Sec. 6. If it appears, after claim therefor filed with the
20Department, that an amount of tax or penalty or interest has
21been paid which was not due under this Act, whether as the
22result of a mistake of fact or an error of law, except as
23hereinafter provided, then the Department shall issue a credit
24memorandum or refund to the person who made the erroneous

 

 

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

 

 

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1erroneously paid more than 3 years prior to such January 1 and
2July 1, respectively, shall be credited or refunded, except
3that if both the Department and the taxpayer have agreed to an
4extension of time to issue a notice of tax liability under this
5Act, the claim may be filed at any time prior to the expiration
6of the period agreed upon.
7    Claims for credit or refund shall be filed upon forms
8provided by the Department. As soon as practicable after any
9claim for credit or refund is filed, the Department shall
10examine the same and determine the amount of credit or refund
11to which the claimant is entitled and shall notify the claimant
12of such determination, which amount shall be prima facie
13correct.
14    Any credit or refund that is allowed under this Act shall
15bear interest at the rate and in the manner specified in the
16Uniform Penalty and Interest Act.
17    In case the Department determines that the claimant is
18entitled to a refund, such refund shall be made only from the
19Sales and Excise Tax Refund Fund such appropriation as may be
20available for that purpose. If it appears unlikely that the
21amount available appropriated would permit everyone having a
22claim allowed during the period covered by such appropriation
23to elect to receive a cash refund, the Department, by rule or
24regulation, shall provide for the payment of refunds in
25hardship cases and shall define what types of cases qualify as
26hardship cases.

 

 

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1(Source: P.A. 90-491, eff. 1-1-98.)
 
2    Section 60. The Public Utilities Revenue Act is amended by
3changing Section 6 as follows:
 
4    (35 ILCS 620/6)  (from Ch. 120, par. 473)
5    Sec. 6. If it appears, after claim therefor filed with the
6Department, that an amount of tax or penalty or interest has
7been paid which was not due under this Act, whether as the
8result of a mistake of fact or an error of law, except as
9hereinafter provided, then the Department shall issue a credit
10memorandum or refund to the person who made the erroneous
11payment or, if that person has died or become a person under
12legal disability, to his or her legal representative, as such.
13    If it is determined that the Department should issue a
14credit or refund under this Act, the Department may first apply
15the amount thereof against any amount of tax or penalty or
16interest due hereunder from the person entitled to such credit
17or refund. Any credit memorandum issued under the Electricity
18Excise Tax Law may be applied against any liability incurred
19under the tax previously imposed by Section 2 of this Act. For
20this purpose, if proceedings are pending to determine whether
21or not any tax or penalty or interest is due under this Act
22from such person, the Department may withhold issuance of the
23credit or refund pending the final disposition of such
24proceedings and may apply such credit or refund against any

 

 

SB2218- 133 -LRB099 15791 HLH 40098 b

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

 

 

SB2218- 134 -LRB099 15791 HLH 40098 b

1of such determination, which amount shall be prima facie
2correct.
3    Any credit or refund that is allowed under this Act shall
4bear interest at the rate and in the manner specified 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(Source: P.A. 90-491, eff. 1-1-98; 90-624, eff. 7-10-98.)
 
17    Section 65. The Water Company Invested Capital Tax Act is
18amended by changing Section 6 as follows:
 
19    (35 ILCS 625/6)  (from Ch. 120, par. 1416)
20    Sec. 6. If it appears, after claim therefor filed with the
21Department, that an amount of tax or penalty or interest has
22been paid which was not due under this Act, whether as the
23result of a mistake of fact or an error of law, except as
24hereinafter provided, then the Department shall issue a credit

 

 

SB2218- 135 -LRB099 15791 HLH 40098 b

1memorandum or refund to the person who made the erroneous
2payment or, if that person has died or become incompetent, to
3his legal representative, as such.
4    If it is determined that the Department should issue a
5credit or refund under this Act, the Department may first apply
6the amount thereof against any amount of tax or penalty or
7interest due hereunder from the person entitled to such credit
8or refund. For this purpose, if proceedings are pending to
9determine whether or not any tax or penalty or interest is due
10under this Act from such person, the Department may withhold
11issuance of the credit or refund pending the final disposition
12of such proceedings and may apply such credit or refund against
13any amount found to be due to the Department as a result of
14such proceedings. The balance, if any, of the credit or refund
15shall be issued to the person entitled thereto.
16    If no tax or penalty or interest is due and no proceeding
17is pending 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, and the amount thereof shall be applied by
24the Department against any tax or penalty or interest due or to
25become due under this Act from such assignee.
26    As to any claim for credit or refund filed with the

 

 

SB2218- 136 -LRB099 15791 HLH 40098 b

1Department on or after each January 1 and July 1, no amounts
2erroneously paid more than 3 years prior to such January 1 and
3July 1, respectively, shall be credited or refunded, except
4that if both the Department and the taxpayer have agreed to an
5extension of time to issue a notice of tax liability under this
6Act, the claim may be filed at any time prior to the expiration
7of the period agreed upon.
8    Claims for credit or refund shall be filed upon forms
9provided by the Department. As soon as practicable after any
10claim for credit or refund is filed, the Department shall
11examine the same and determine the amount of credit or refund
12to which the claimant is entitled and shall notify the claimant
13of such determination, which amount shall be prima facie
14correct.
15    Any credit or refund that is allowed under this Section
16shall bear interest at the rate and in the manner specified in
17the Uniform 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

 

 

SB2218- 137 -LRB099 15791 HLH 40098 b

1hardship cases.
2(Source: P.A. 90-491, eff. 1-1-98.)
 
3    Section 70. The Telecommunications Excise Tax Act is
4amended by changing Section 10 as follows:
 
5    (35 ILCS 630/10)  (from Ch. 120, par. 2010)
6    Sec. 10. If it shall appear that an amount of tax or
7penalty or interest has been paid in error hereunder to the
8Department by a taxpayer, as distinguished from the retailer,
9whether such amount be paid through a mistake of fact or an
10error of law, such taxpayer may file a claim for credit or
11refund with the Department. If it shall appear that an amount
12of tax or penalty or interest has been paid in error to the
13Department hereunder by a retailer who is required or
14authorized to collect and remit the tax imposed by this
15Article, whether such amount be paid through a mistake of fact
16or an error of law, such retailer may file a claim for credit
17or refund with the Department, provided that no credit or
18refund shall be allowed for any amount paid by any such
19retailer unless it shall appear that he bore the burden of such
20amount and did not shift the burden thereof to anyone else, or
21unless it shall appear that he or she or his or her legal
22representative has unconditionally repaid such amount to his
23customer (1) who bore the burden thereof and has not shifted
24such burden directly or indirectly in any manner whatsoever; or

 

 

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

 

 

SB2218- 139 -LRB099 15791 HLH 40098 b

1applied by the Department against any tax or penalty or
2interest due or to become due under this Article from such
3assignee.
4    As to any claim for credit or refund filed with the
5Department on or after each January 1 and July 1, no amounts
6erroneously paid more than three years prior to such January 1
7and July 1, respectively, shall be credited or refunded, except
8that if both the Department and the taxpayer have agreed to an
9extension of time to issue a notice of tax liability under this
10Act, the claim may be filed at any time prior to the expiration
11of the period agreed upon.
12    Claims for credit or refund shall be filed upon forms
13provided by the Department. As soon as practicable after any
14claim for credit or refund is filed, the Department shall
15examine the same and determine the amount of credit or refund
16to which the claimant is entitled and shall notify the claimant
17of such determination, which amount shall be prima facie
18correct.
19    A claim for credit or refund shall be considered to have
20been filed with the Department on the date upon which it is
21received by the Department. Upon receipt of any claim for
22credit or refund filed under this Article, any officer or
23employee of the Department, authorized in writing by the
24Director of Revenue to acknowledge receipt of such claims on
25behalf of the Department, shall execute on behalf of the
26Department, and shall deliver or mail to the claimant or his

 

 

SB2218- 140 -LRB099 15791 HLH 40098 b

1duly authorized agent, a written receipt, acknowledging that
2the claim has been filed with the Department, describing the
3claim in sufficient detail to identify it and stating the date
4upon which the claim was received by the Department. Such
5written receipt shall be prima facie evidence that the
6Department received the claim described in such receipt and
7shall be prima facie evidence of the date when such claim was
8received by the Department. In the absence of such a written
9receipt, the records of the Department as to when the claim was
10received by the Department, or as to whether or not the claim
11was received at all by the Department, shall be deemed to be
12prima facie correct upon these questions in the event of any
13dispute between the claimant (or his or her legal
14representative) and the Department concerning these questions.
15    Any credit or refund that is allowed under this Article
16shall bear interest at the rate and in the manner specified in
17the Uniform 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 hardship
26cases and shall define what types of cases qualify as hardship

 

 

SB2218- 141 -LRB099 15791 HLH 40098 b

1cases.
2    If a retailer who has failed to pay tax on gross charges
3for telecommunications is required by the Department to pay
4such tax, such retailer, without filing any formal claim with
5the Department, shall be allowed to take credit against such
6tax liability to the extent, if any, to which such retailer has
7paid the tax to its vendor of the telecommunications which such
8retailer purchased and used for resale, and no penalty or
9interest shall be charged to such retailer on the amount of
10such credit. However, when such credit is allowed to the
11retailer by the Department, the vendor is precluded from
12refunding any of the tax to the retailer and filing a claim for
13credit or refund with respect thereto with the Department. The
14provisions of this Section added by this amendatory Act of 1988
15shall be applied retroactively, regardless of the date of the
16transaction.
17(Source: P.A. 90-491, eff. 1-1-98.)
 
18    Section 75. The Liquor Control Act of 1934 is amended by
19changing Section 8-3 as follows:
 
20    (235 ILCS 5/8-3)  (from Ch. 43, par. 159a)
21    Sec. 8-3. If it appears, after claim therefor filed with
22the Department, that an amount of tax or penalty or interest
23has been paid which was not due under this Article, whether as
24the result of a mistake of fact or an error of law, except as

 

 

SB2218- 142 -LRB099 15791 HLH 40098 b

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

 

 

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1interest due or to become due under this Article from such
2assignee.
3    As to any claim filed hereunder with the Department on and
4after each January 1 and July 1, no amount of tax or penalty or
5interest, erroneously paid (either in total or partial
6liquidation of a tax or penalty or interest under this Article)
7more than 3 years prior to such January 1 and July 1,
8respectively, shall be credited or refunded.
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. 87-205.)
 
23    Section 99. Effective date. This Act takes effect July 1,
242016.

 

 

SB2218- 144 -LRB099 15791 HLH 40098 b

1 INDEX
2 Statutes amended in order of appearance
3    30 ILCS 105/5.875 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