Illinois General Assembly - Full Text of SB2066
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Full Text of SB2066  102nd General Assembly

SB2066enr 102ND GENERAL ASSEMBLY

  
  
  

 


 
SB2066 EnrolledLRB102 16579 HLH 21976 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Retailers' Occupation Tax Act is amended by
5changing Sections 1, 2-5, and 3 as follows:
 
6    (35 ILCS 120/1)  (from Ch. 120, par. 440)
7    Sec. 1. Definitions. "Sale at retail" means any transfer
8of the ownership of or title to tangible personal property to a
9purchaser, for the purpose of use or consumption, and not for
10the purpose of resale in any form as tangible personal
11property to the extent not first subjected to a use for which
12it was purchased, for a valuable consideration: Provided that
13the property purchased is deemed to be purchased for the
14purpose of resale, despite first being used, to the extent to
15which it is resold as an ingredient of an intentionally
16produced product or byproduct of manufacturing. For this
17purpose, slag produced as an incident to manufacturing pig
18iron or steel and sold is considered to be an intentionally
19produced byproduct of manufacturing. Transactions whereby the
20possession of the property is transferred but the seller
21retains the title as security for payment of the selling price
22shall be deemed to be sales.
23    "Sale at retail" shall be construed to include any

 

 

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1transfer of the ownership of or title to tangible personal
2property to a purchaser, for use or consumption by any other
3person to whom such purchaser may transfer the tangible
4personal property without a valuable consideration, and to
5include any transfer, whether made for or without a valuable
6consideration, for resale in any form as tangible personal
7property unless made in compliance with Section 2c of this
8Act.
9    Sales of tangible personal property, which property, to
10the extent not first subjected to a use for which it was
11purchased, as an ingredient or constituent, goes into and
12forms a part of tangible personal property subsequently the
13subject of a "Sale at retail", are not sales at retail as
14defined in this Act: Provided that the property purchased is
15deemed to be purchased for the purpose of resale, despite
16first being used, to the extent to which it is resold as an
17ingredient of an intentionally produced product or byproduct
18of manufacturing.
19    "Sale at retail" shall be construed to include any
20Illinois florist's sales transaction in which the purchase
21order is received in Illinois by a florist and the sale is for
22use or consumption, but the Illinois florist has a florist in
23another state deliver the property to the purchaser or the
24purchaser's donee in such other state.
25    Nonreusable tangible personal property that is used by
26persons engaged in the business of operating a restaurant,

 

 

SB2066 Enrolled- 3 -LRB102 16579 HLH 21976 b

1cafeteria, or drive-in is a sale for resale when it is
2transferred to customers in the ordinary course of business as
3part of the sale of food or beverages and is used to deliver,
4package, or consume food or beverages, regardless of where
5consumption of the food or beverages occurs. Examples of those
6items include, but are not limited to nonreusable, paper and
7plastic cups, plates, baskets, boxes, sleeves, buckets or
8other containers, utensils, straws, placemats, napkins, doggie
9bags, and wrapping or packaging materials that are transferred
10to customers as part of the sale of food or beverages in the
11ordinary course of business.
12    The purchase, employment and transfer of such tangible
13personal property as newsprint and ink for the primary purpose
14of conveying news (with or without other information) is not a
15purchase, use or sale of tangible personal property.
16    A person whose activities are organized and conducted
17primarily as a not-for-profit service enterprise, and who
18engages in selling tangible personal property at retail
19(whether to the public or merely to members and their guests)
20is engaged in the business of selling tangible personal
21property at retail with respect to such transactions,
22excepting only a person organized and operated exclusively for
23charitable, religious or educational purposes either (1), to
24the extent of sales by such person to its members, students,
25patients or inmates of tangible personal property to be used
26primarily for the purposes of such person, or (2), to the

 

 

SB2066 Enrolled- 4 -LRB102 16579 HLH 21976 b

1extent of sales by such person of tangible personal property
2which is not sold or offered for sale by persons organized for
3profit. The selling of school books and school supplies by
4schools at retail to students is not "primarily for the
5purposes of" the school which does such selling. The
6provisions of this paragraph shall not apply to nor subject to
7taxation occasional dinners, socials or similar activities of
8a person organized and operated exclusively for charitable,
9religious or educational purposes, whether or not such
10activities are open to the public.
11    A person who is the recipient of a grant or contract under
12Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
13serves meals to participants in the federal Nutrition Program
14for the Elderly in return for contributions established in
15amount by the individual participant pursuant to a schedule of
16suggested fees as provided for in the federal Act is not
17engaged in the business of selling tangible personal property
18at retail with respect to such transactions.
19    "Purchaser" means anyone who, through a sale at retail,
20acquires the ownership of or title to tangible personal
21property for a valuable consideration.
22    "Reseller of motor fuel" means any person engaged in the
23business of selling or delivering or transferring title of
24motor fuel to another person other than for use or
25consumption. No person shall act as a reseller of motor fuel
26within this State without first being registered as a reseller

 

 

SB2066 Enrolled- 5 -LRB102 16579 HLH 21976 b

1pursuant to Section 2c or a retailer pursuant to Section 2a.
2    "Selling price" or the "amount of sale" means the
3consideration for a sale valued in money whether received in
4money or otherwise, including cash, credits, property, other
5than as hereinafter provided, and services, but, prior to
6January 1, 2020, not including the value of or credit given for
7traded-in tangible personal property where the item that is
8traded-in is of like kind and character as that which is being
9sold; beginning January 1, 2020, "selling price" includes the
10portion of the value of or credit given for traded-in motor
11vehicles of the First Division as defined in Section 1-146 of
12the Illinois Vehicle Code of like kind and character as that
13which is being sold that exceeds $10,000. "Selling price"
14shall be determined without any deduction on account of the
15cost of the property sold, the cost of materials used, labor or
16service cost or any other expense whatsoever, but does not
17include charges that are added to prices by sellers on account
18of the seller's tax liability under this Act, or on account of
19the seller's duty to collect, from the purchaser, the tax that
20is imposed by the Use Tax Act, or, except as otherwise provided
21with respect to any cigarette tax imposed by a home rule unit,
22on account of the seller's tax liability under any local
23occupation tax administered by the Department, or, except as
24otherwise provided with respect to any cigarette tax imposed
25by a home rule unit on account of the seller's duty to collect,
26from the purchasers, the tax that is imposed under any local

 

 

SB2066 Enrolled- 6 -LRB102 16579 HLH 21976 b

1use tax administered by the Department. Effective December 1,
21985, "selling price" shall include charges that are added to
3prices by sellers on account of the seller's tax liability
4under the Cigarette Tax Act, on account of the sellers' duty to
5collect, from the purchaser, the tax imposed under the
6Cigarette Use Tax Act, and on account of the seller's duty to
7collect, from the purchaser, any cigarette tax imposed by a
8home rule unit.
9    Notwithstanding any law to the contrary, for any motor
10vehicle, as defined in Section 1-146 of the Vehicle Code, that
11is sold on or after January 1, 2015 for the purpose of leasing
12the vehicle for a defined period that is longer than one year
13and (1) is a motor vehicle of the second division that: (A) is
14a self-contained motor vehicle designed or permanently
15converted to provide living quarters for recreational,
16camping, or travel use, with direct walk through access to the
17living quarters from the driver's seat; (B) is of the van
18configuration designed for the transportation of not less than
197 nor more than 16 passengers; or (C) has a gross vehicle
20weight rating of 8,000 pounds or less or (2) is a motor vehicle
21of the first division, "selling price" or "amount of sale"
22means the consideration received by the lessor pursuant to the
23lease contract, including amounts due at lease signing and all
24monthly or other regular payments charged over the term of the
25lease. Also included in the selling price is any amount
26received by the lessor from the lessee for the leased vehicle

 

 

SB2066 Enrolled- 7 -LRB102 16579 HLH 21976 b

1that is not calculated at the time the lease is executed,
2including, but not limited to, excess mileage charges and
3charges for excess wear and tear. For sales that occur in
4Illinois, with respect to any amount received by the lessor
5from the lessee for the leased vehicle that is not calculated
6at the time the lease is executed, the lessor who purchased the
7motor vehicle does not incur the tax imposed by the Use Tax Act
8on those amounts, and the retailer who makes the retail sale of
9the motor vehicle to the lessor is not required to collect the
10tax imposed by the Use Tax Act or to pay the tax imposed by
11this Act on those amounts. However, the lessor who purchased
12the motor vehicle assumes the liability for reporting and
13paying the tax on those amounts directly to the Department in
14the same form (Illinois Retailers' Occupation Tax, and local
15retailers' occupation taxes, if applicable) in which the
16retailer would have reported and paid such tax if the retailer
17had accounted for the tax to the Department. For amounts
18received by the lessor from the lessee that are not calculated
19at the time the lease is executed, the lessor must file the
20return and pay the tax to the Department by the due date
21otherwise required by this Act for returns other than
22transaction returns. If the retailer is entitled under this
23Act to a discount for collecting and remitting the tax imposed
24under this Act to the Department with respect to the sale of
25the motor vehicle to the lessor, then the right to the discount
26provided in this Act shall be transferred to the lessor with

 

 

SB2066 Enrolled- 8 -LRB102 16579 HLH 21976 b

1respect to the tax paid by the lessor for any amount received
2by the lessor from the lessee for the leased vehicle that is
3not calculated at the time the lease is executed; provided
4that the discount is only allowed if the return is timely filed
5and for amounts timely paid. The "selling price" of a motor
6vehicle that is sold on or after January 1, 2015 for the
7purpose of leasing for a defined period of longer than one year
8shall not be reduced by the value of or credit given for
9traded-in tangible personal property owned by the lessor, nor
10shall it be reduced by the value of or credit given for
11traded-in tangible personal property owned by the lessee,
12regardless of whether the trade-in value thereof is assigned
13by the lessee to the lessor. In the case of a motor vehicle
14that is sold for the purpose of leasing for a defined period of
15longer than one year, the sale occurs at the time of the
16delivery of the vehicle, regardless of the due date of any
17lease payments. A lessor who incurs a Retailers' Occupation
18Tax liability on the sale of a motor vehicle coming off lease
19may not take a credit against that liability for the Use Tax
20the lessor paid upon the purchase of the motor vehicle (or for
21any tax the lessor paid with respect to any amount received by
22the lessor from the lessee for the leased vehicle that was not
23calculated at the time the lease was executed) if the selling
24price of the motor vehicle at the time of purchase was
25calculated using the definition of "selling price" as defined
26in this paragraph. Notwithstanding any other provision of this

 

 

SB2066 Enrolled- 9 -LRB102 16579 HLH 21976 b

1Act to the contrary, lessors shall file all returns and make
2all payments required under this paragraph to the Department
3by electronic means in the manner and form as required by the
4Department. This paragraph does not apply to leases of motor
5vehicles for which, at the time the lease is entered into, the
6term of the lease is not a defined period, including leases
7with a defined initial period with the option to continue the
8lease on a month-to-month or other basis beyond the initial
9defined period.
10    The phrase "like kind and character" shall be liberally
11construed (including but not limited to any form of motor
12vehicle for any form of motor vehicle, or any kind of farm or
13agricultural implement for any other kind of farm or
14agricultural implement), while not including a kind of item
15which, if sold at retail by that retailer, would be exempt from
16retailers' occupation tax and use tax as an isolated or
17occasional sale.
18    "Gross receipts" from the sales of tangible personal
19property at retail means the total selling price or the amount
20of such sales, as hereinbefore defined. In the case of charge
21and time sales, the amount thereof shall be included only as
22and when payments are received by the seller. Receipts or
23other consideration derived by a seller from the sale,
24transfer or assignment of accounts receivable to a wholly
25owned subsidiary will not be deemed payments prior to the time
26the purchaser makes payment on such accounts.

 

 

SB2066 Enrolled- 10 -LRB102 16579 HLH 21976 b

1    "Department" means the Department of Revenue.
2    "Person" means any natural individual, firm, partnership,
3association, joint stock company, joint adventure, public or
4private corporation, limited liability company, or a receiver,
5executor, trustee, guardian or other representative appointed
6by order of any court.
7    The isolated or occasional sale of tangible personal
8property at retail by a person who does not hold himself out as
9being engaged (or who does not habitually engage) in selling
10such tangible personal property at retail, or a sale through a
11bulk vending machine, does not constitute engaging in a
12business of selling such tangible personal property at retail
13within the meaning of this Act; provided that any person who is
14engaged in a business which is not subject to the tax imposed
15by this Act because of involving the sale of or a contract to
16sell real estate or a construction contract to improve real
17estate or a construction contract to engineer, install, and
18maintain an integrated system of products, but who, in the
19course of conducting such business, transfers tangible
20personal property to users or consumers in the finished form
21in which it was purchased, and which does not become real
22estate or was not engineered and installed, under any
23provision of a construction contract or real estate sale or
24real estate sales agreement entered into with some other
25person arising out of or because of such nontaxable business,
26is engaged in the business of selling tangible personal

 

 

SB2066 Enrolled- 11 -LRB102 16579 HLH 21976 b

1property at retail to the extent of the value of the tangible
2personal property so transferred. If, in such a transaction, a
3separate charge is made for the tangible personal property so
4transferred, the value of such property, for the purpose of
5this Act, shall be the amount so separately charged, but not
6less than the cost of such property to the transferor; if no
7separate charge is made, the value of such property, for the
8purposes of this Act, is the cost to the transferor of such
9tangible personal property. Construction contracts for the
10improvement of real estate consisting of engineering,
11installation, and maintenance of voice, data, video, security,
12and all telecommunication systems do not constitute engaging
13in a business of selling tangible personal property at retail
14within the meaning of this Act if they are sold at one
15specified contract price.
16    A person who holds himself or herself out as being engaged
17(or who habitually engages) in selling tangible personal
18property at retail is a person engaged in the business of
19selling tangible personal property at retail hereunder with
20respect to such sales (and not primarily in a service
21occupation) notwithstanding the fact that such person designs
22and produces such tangible personal property on special order
23for the purchaser and in such a way as to render the property
24of value only to such purchaser, if such tangible personal
25property so produced on special order serves substantially the
26same function as stock or standard items of tangible personal

 

 

SB2066 Enrolled- 12 -LRB102 16579 HLH 21976 b

1property that are sold at retail.
2    Persons who engage in the business of transferring
3tangible personal property upon the redemption of trading
4stamps are engaged in the business of selling such property at
5retail and shall be liable for and shall pay the tax imposed by
6this Act on the basis of the retail value of the property
7transferred upon redemption of such stamps.
8    "Bulk vending machine" means a vending machine, containing
9unsorted confections, nuts, toys, or other items designed
10primarily to be used or played with by children which, when a
11coin or coins of a denomination not larger than $0.50 are
12inserted, are dispensed in equal portions, at random and
13without selection by the customer.
14    "Remote retailer" means a retailer that does not maintain
15within this State, directly or by a subsidiary, an office,
16distribution house, sales house, warehouse or other place of
17business, or any agent or other representative operating
18within this State under the authority of the retailer or its
19subsidiary, irrespective of whether such place of business or
20agent is located here permanently or temporarily or whether
21such retailer or subsidiary is licensed to do business in this
22State.
23    "Marketplace" means a physical or electronic place, forum,
24platform, application, or other method by which a marketplace
25seller sells or offers to sell items.
26    "Marketplace facilitator" means a person who, pursuant to

 

 

SB2066 Enrolled- 13 -LRB102 16579 HLH 21976 b

1an agreement with an unrelated third-party marketplace seller,
2directly or indirectly through one or more affiliates
3facilitates a retail sale by an unrelated third party
4marketplace seller by:
5        (1) listing or advertising for sale by the marketplace
6    seller in a marketplace, tangible personal property that
7    is subject to tax under this Act; and
8        (2) either directly or indirectly, through agreements
9    or arrangements with third parties, collecting payment
10    from the customer and transmitting that payment to the
11    marketplace seller regardless of whether the marketplace
12    facilitator receives compensation or other consideration
13    in exchange for its services.
14    A person who provides advertising services, including
15listing products for sale, is not considered a marketplace
16facilitator, so long as the advertising service platform or
17forum does not engage, directly or indirectly through one or
18more affiliated persons, in the activities described in
19paragraph (2) of this definition of "marketplace facilitator".
20    "Marketplace facilitator" does not include any person
21licensed under the Auction License Act. This exemption does
22not apply to any person who is an Internet auction listing
23service, as defined by the Auction License Act.
24    "Marketplace seller" means a person that makes sales
25through a marketplace operated by an unrelated third party
26marketplace facilitator.

 

 

SB2066 Enrolled- 14 -LRB102 16579 HLH 21976 b

1(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
 
2    (35 ILCS 120/2-5)
3    Sec. 2-5. Exemptions. Gross receipts from proceeds from
4the sale of the following tangible personal property are
5exempt from the tax imposed by this Act:
6        (1) Farm chemicals.
7        (2) Farm machinery and equipment, both new and used,
8    including that manufactured on special order, certified by
9    the purchaser to be used primarily for production
10    agriculture or State or federal agricultural programs,
11    including individual replacement parts for the machinery
12    and equipment, including machinery and equipment purchased
13    for lease, and including implements of husbandry defined
14    in Section 1-130 of the Illinois Vehicle Code, farm
15    machinery and agricultural chemical and fertilizer
16    spreaders, and nurse wagons required to be registered
17    under Section 3-809 of the Illinois Vehicle Code, but
18    excluding other motor vehicles required to be registered
19    under the Illinois Vehicle Code. Horticultural polyhouses
20    or hoop houses used for propagating, growing, or
21    overwintering plants shall be considered farm machinery
22    and equipment under this item (2). Agricultural chemical
23    tender tanks and dry boxes shall include units sold
24    separately from a motor vehicle required to be licensed
25    and units sold mounted on a motor vehicle required to be

 

 

SB2066 Enrolled- 15 -LRB102 16579 HLH 21976 b

1    licensed, if the selling price of the tender is separately
2    stated.
3        Farm machinery and equipment shall include precision
4    farming equipment that is installed or purchased to be
5    installed on farm machinery and equipment including, but
6    not limited to, tractors, harvesters, sprayers, planters,
7    seeders, or spreaders. Precision farming equipment
8    includes, but is not limited to, soil testing sensors,
9    computers, monitors, software, global positioning and
10    mapping systems, and other such equipment.
11        Farm machinery and equipment also includes computers,
12    sensors, software, and related equipment used primarily in
13    the computer-assisted operation of production agriculture
14    facilities, equipment, and activities such as, but not
15    limited to, the collection, monitoring, and correlation of
16    animal and crop data for the purpose of formulating animal
17    diets and agricultural chemicals. This item (2) is exempt
18    from the provisions of Section 2-70.
19        (3) Until July 1, 2003, distillation machinery and
20    equipment, sold as a unit or kit, assembled or installed
21    by the retailer, certified by the user to be used only for
22    the production of ethyl alcohol that will be used for
23    consumption as motor fuel or as a component of motor fuel
24    for the personal use of the user, and not subject to sale
25    or resale.
26        (4) Until July 1, 2003 and beginning again September

 

 

SB2066 Enrolled- 16 -LRB102 16579 HLH 21976 b

1    1, 2004 through August 30, 2014, graphic arts machinery
2    and equipment, including repair and replacement parts,
3    both new and used, and including that manufactured on
4    special order or purchased for lease, certified by the
5    purchaser to be used primarily for graphic arts
6    production. Equipment includes chemicals or chemicals
7    acting as catalysts but only if the chemicals or chemicals
8    acting as catalysts effect a direct and immediate change
9    upon a graphic arts product. Beginning on July 1, 2017,
10    graphic arts machinery and equipment is included in the
11    manufacturing and assembling machinery and equipment
12    exemption under paragraph (14).
13        (5) A motor vehicle that is used for automobile
14    renting, as defined in the Automobile Renting Occupation
15    and Use Tax Act. This paragraph is exempt from the
16    provisions of Section 2-70.
17        (6) Personal property sold by a teacher-sponsored
18    student organization affiliated with an elementary or
19    secondary school located in Illinois.
20        (7) Until July 1, 2003, proceeds of that portion of
21    the selling price of a passenger car the sale of which is
22    subject to the Replacement Vehicle Tax.
23        (8) Personal property sold to an Illinois county fair
24    association for use in conducting, operating, or promoting
25    the county fair.
26        (9) Personal property sold to a not-for-profit arts or

 

 

SB2066 Enrolled- 17 -LRB102 16579 HLH 21976 b

1    cultural organization that establishes, by proof required
2    by the Department by rule, that it has received an
3    exemption under Section 501(c)(3) of the Internal Revenue
4    Code and that is organized and operated primarily for the
5    presentation or support of arts or cultural programming,
6    activities, or services. These organizations include, but
7    are not limited to, music and dramatic arts organizations
8    such as symphony orchestras and theatrical groups, arts
9    and cultural service organizations, local arts councils,
10    visual arts organizations, and media arts organizations.
11    On and after July 1, 2001 (the effective date of Public Act
12    92-35), however, an entity otherwise eligible for this
13    exemption shall not make tax-free purchases unless it has
14    an active identification number issued by the Department.
15        (10) Personal property sold by a corporation, society,
16    association, foundation, institution, or organization,
17    other than a limited liability company, that is organized
18    and operated as a not-for-profit service enterprise for
19    the benefit of persons 65 years of age or older if the
20    personal property was not purchased by the enterprise for
21    the purpose of resale by the enterprise.
22        (11) Personal property sold to a governmental body, to
23    a corporation, society, association, foundation, or
24    institution organized and operated exclusively for
25    charitable, religious, or educational purposes, or to a
26    not-for-profit corporation, society, association,

 

 

SB2066 Enrolled- 18 -LRB102 16579 HLH 21976 b

1    foundation, institution, or organization that has no
2    compensated officers or employees and that is organized
3    and operated primarily for the recreation of persons 55
4    years of age or older. A limited liability company may
5    qualify for the exemption under this paragraph only if the
6    limited liability company is organized and operated
7    exclusively for educational purposes. On and after July 1,
8    1987, however, no entity otherwise eligible for this
9    exemption shall make tax-free purchases unless it has an
10    active identification number issued by the Department.
11        (12) (Blank).
12        (12-5) On and after July 1, 2003 and through June 30,
13    2004, motor vehicles of the second division with a gross
14    vehicle weight in excess of 8,000 pounds that are subject
15    to the commercial distribution fee imposed under Section
16    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
17    2004 and through June 30, 2005, the use in this State of
18    motor vehicles of the second division: (i) with a gross
19    vehicle weight rating in excess of 8,000 pounds; (ii) that
20    are subject to the commercial distribution fee imposed
21    under Section 3-815.1 of the Illinois Vehicle Code; and
22    (iii) that are primarily used for commercial purposes.
23    Through June 30, 2005, this exemption applies to repair
24    and replacement parts added after the initial purchase of
25    such a motor vehicle if that motor vehicle is used in a
26    manner that would qualify for the rolling stock exemption

 

 

SB2066 Enrolled- 19 -LRB102 16579 HLH 21976 b

1    otherwise provided for in this Act. For purposes of this
2    paragraph, "used for commercial purposes" means the
3    transportation of persons or property in furtherance of
4    any commercial or industrial enterprise whether for-hire
5    or not.
6        (13) Proceeds from sales to owners, lessors, or
7    shippers of tangible personal property that is utilized by
8    interstate carriers for hire for use as rolling stock
9    moving in interstate commerce and equipment operated by a
10    telecommunications provider, licensed as a common carrier
11    by the Federal Communications Commission, which is
12    permanently installed in or affixed to aircraft moving in
13    interstate commerce.
14        (14) Machinery and equipment that will be used by the
15    purchaser, or a lessee of the purchaser, primarily in the
16    process of manufacturing or assembling tangible personal
17    property for wholesale or retail sale or lease, whether
18    the sale or lease is made directly by the manufacturer or
19    by some other person, whether the materials used in the
20    process are owned by the manufacturer or some other
21    person, or whether the sale or lease is made apart from or
22    as an incident to the seller's engaging in the service
23    occupation of producing machines, tools, dies, jigs,
24    patterns, gauges, or other similar items of no commercial
25    value on special order for a particular purchaser. The
26    exemption provided by this paragraph (14) does not include

 

 

SB2066 Enrolled- 20 -LRB102 16579 HLH 21976 b

1    machinery and equipment used in (i) the generation of
2    electricity for wholesale or retail sale; (ii) the
3    generation or treatment of natural or artificial gas for
4    wholesale or retail sale that is delivered to customers
5    through pipes, pipelines, or mains; or (iii) the treatment
6    of water for wholesale or retail sale that is delivered to
7    customers through pipes, pipelines, or mains. The
8    provisions of Public Act 98-583 are declaratory of
9    existing law as to the meaning and scope of this
10    exemption. Beginning on July 1, 2017, the exemption
11    provided by this paragraph (14) includes, but is not
12    limited to, graphic arts machinery and equipment, as
13    defined in paragraph (4) of this Section.
14        (15) Proceeds of mandatory service charges separately
15    stated on customers' bills for purchase and consumption of
16    food and beverages, to the extent that the proceeds of the
17    service charge are in fact turned over as tips or as a
18    substitute for tips to the employees who participate
19    directly in preparing, serving, hosting or cleaning up the
20    food or beverage function with respect to which the
21    service charge is imposed.
22        (16) Tangible personal property sold to a purchaser if
23    the purchaser is exempt from use tax by operation of
24    federal law. This paragraph is exempt from the provisions
25    of Section 2-70.
26        (17) Tangible personal property sold to a common

 

 

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1    carrier by rail or motor that receives the physical
2    possession of the property in Illinois and that transports
3    the property, or shares with another common carrier in the
4    transportation of the property, out of Illinois on a
5    standard uniform bill of lading showing the seller of the
6    property as the shipper or consignor of the property to a
7    destination outside Illinois, for use outside Illinois.
8        (18) Legal tender, currency, medallions, or gold or
9    silver coinage issued by the State of Illinois, the
10    government of the United States of America, or the
11    government of any foreign country, and bullion.
12        (19) Until July 1, 2003, oil field exploration,
13    drilling, and production equipment, including (i) rigs and
14    parts of rigs, rotary rigs, cable tool rigs, and workover
15    rigs, (ii) pipe and tubular goods, including casing and
16    drill strings, (iii) pumps and pump-jack units, (iv)
17    storage tanks and flow lines, (v) any individual
18    replacement part for oil field exploration, drilling, and
19    production equipment, and (vi) machinery and equipment
20    purchased for lease; but excluding motor vehicles required
21    to be registered under the Illinois Vehicle Code.
22        (20) Photoprocessing machinery and equipment,
23    including repair and replacement parts, both new and used,
24    including that manufactured on special order, certified by
25    the purchaser to be used primarily for photoprocessing,
26    and including photoprocessing machinery and equipment

 

 

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1    purchased for lease.
2        (21) Until July 1, 2023, coal and aggregate
3    exploration, mining, off-highway hauling, processing,
4    maintenance, and reclamation equipment, including
5    replacement parts and equipment, and including equipment
6    purchased for lease, but excluding motor vehicles required
7    to be registered under the Illinois Vehicle Code. The
8    changes made to this Section by Public Act 97-767 apply on
9    and after July 1, 2003, but no claim for credit or refund
10    is allowed on or after August 16, 2013 (the effective date
11    of Public Act 98-456) for such taxes paid during the
12    period beginning July 1, 2003 and ending on August 16,
13    2013 (the effective date of Public Act 98-456).
14        (22) Until June 30, 2013, fuel and petroleum products
15    sold to or used by an air carrier, certified by the carrier
16    to be used for consumption, shipment, or storage in the
17    conduct of its business as an air common carrier, for a
18    flight destined for or returning from a location or
19    locations outside the United States without regard to
20    previous or subsequent domestic stopovers.
21        Beginning July 1, 2013, fuel and petroleum products
22    sold to or used by an air carrier, certified by the carrier
23    to be used for consumption, shipment, or storage in the
24    conduct of its business as an air common carrier, for a
25    flight that (i) is engaged in foreign trade or is engaged
26    in trade between the United States and any of its

 

 

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1    possessions and (ii) transports at least one individual or
2    package for hire from the city of origination to the city
3    of final destination on the same aircraft, without regard
4    to a change in the flight number of that aircraft.
5        (23) A transaction in which the purchase order is
6    received by a florist who is located outside Illinois, but
7    who has a florist located in Illinois deliver the property
8    to the purchaser or the purchaser's donee in Illinois.
9        (24) Fuel consumed or used in the operation of ships,
10    barges, or vessels that are used primarily in or for the
11    transportation of property or the conveyance of persons
12    for hire on rivers bordering on this State if the fuel is
13    delivered by the seller to the purchaser's barge, ship, or
14    vessel while it is afloat upon that bordering river.
15        (25) Except as provided in item (25-5) of this
16    Section, a motor vehicle sold in this State to a
17    nonresident even though the motor vehicle is delivered to
18    the nonresident in this State, if the motor vehicle is not
19    to be titled in this State, and if a drive-away permit is
20    issued to the motor vehicle as provided in Section 3-603
21    of the Illinois Vehicle Code or if the nonresident
22    purchaser has vehicle registration plates to transfer to
23    the motor vehicle upon returning to his or her home state.
24    The issuance of the drive-away permit or having the
25    out-of-state registration plates to be transferred is
26    prima facie evidence that the motor vehicle will not be

 

 

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1    titled in this State.
2        (25-5) The exemption under item (25) does not apply if
3    the state in which the motor vehicle will be titled does
4    not allow a reciprocal exemption for a motor vehicle sold
5    and delivered in that state to an Illinois resident but
6    titled in Illinois. The tax collected under this Act on
7    the sale of a motor vehicle in this State to a resident of
8    another state that does not allow a reciprocal exemption
9    shall be imposed at a rate equal to the state's rate of tax
10    on taxable property in the state in which the purchaser is
11    a resident, except that the tax shall not exceed the tax
12    that would otherwise be imposed under this Act. At the
13    time of the sale, the purchaser shall execute a statement,
14    signed under penalty of perjury, of his or her intent to
15    title the vehicle in the state in which the purchaser is a
16    resident within 30 days after the sale and of the fact of
17    the payment to the State of Illinois of tax in an amount
18    equivalent to the state's rate of tax on taxable property
19    in his or her state of residence and shall submit the
20    statement to the appropriate tax collection agency in his
21    or her state of residence. In addition, the retailer must
22    retain a signed copy of the statement in his or her
23    records. Nothing in this item shall be construed to
24    require the removal of the vehicle from this state
25    following the filing of an intent to title the vehicle in
26    the purchaser's state of residence if the purchaser titles

 

 

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1    the vehicle in his or her state of residence within 30 days
2    after the date of sale. The tax collected under this Act in
3    accordance with this item (25-5) shall be proportionately
4    distributed as if the tax were collected at the 6.25%
5    general rate imposed under this Act.
6        (25-7) Beginning on July 1, 2007, no tax is imposed
7    under this Act on the sale of an aircraft, as defined in
8    Section 3 of the Illinois Aeronautics Act, if all of the
9    following conditions are met:
10            (1) the aircraft leaves this State within 15 days
11        after the later of either the issuance of the final
12        billing for the sale of the aircraft, or the
13        authorized approval for return to service, completion
14        of the maintenance record entry, and completion of the
15        test flight and ground test for inspection, as
16        required by 14 C.F.R. 91.407;
17            (2) the aircraft is not based or registered in
18        this State after the sale of the aircraft; and
19            (3) the seller retains in his or her books and
20        records and provides to the Department a signed and
21        dated certification from the purchaser, on a form
22        prescribed by the Department, certifying that the
23        requirements of this item (25-7) are met. The
24        certificate must also include the name and address of
25        the purchaser, the address of the location where the
26        aircraft is to be titled or registered, the address of

 

 

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1        the primary physical location of the aircraft, and
2        other information that the Department may reasonably
3        require.
4        For purposes of this item (25-7):
5        "Based in this State" means hangared, stored, or
6    otherwise used, excluding post-sale customizations as
7    defined in this Section, for 10 or more days in each
8    12-month period immediately following the date of the sale
9    of the aircraft.
10        "Registered in this State" means an aircraft
11    registered with the Department of Transportation,
12    Aeronautics Division, or titled or registered with the
13    Federal Aviation Administration to an address located in
14    this State.
15        This paragraph (25-7) is exempt from the provisions of
16    Section 2-70.
17        (26) Semen used for artificial insemination of
18    livestock for direct agricultural production.
19        (27) Horses, or interests in horses, registered with
20    and meeting the requirements of any of the Arabian Horse
21    Club Registry of America, Appaloosa Horse Club, American
22    Quarter Horse Association, United States Trotting
23    Association, or Jockey Club, as appropriate, used for
24    purposes of breeding or racing for prizes. This item (27)
25    is exempt from the provisions of Section 2-70, and the
26    exemption provided for under this item (27) applies for

 

 

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1    all periods beginning May 30, 1995, but no claim for
2    credit or refund is allowed on or after January 1, 2008
3    (the effective date of Public Act 95-88) for such taxes
4    paid during the period beginning May 30, 2000 and ending
5    on January 1, 2008 (the effective date of Public Act
6    95-88).
7        (28) Computers and communications equipment utilized
8    for any hospital purpose and equipment used in the
9    diagnosis, analysis, or treatment of hospital patients
10    sold to a lessor who leases the equipment, under a lease of
11    one year or longer executed or in effect at the time of the
12    purchase, to a hospital that has been issued an active tax
13    exemption identification number by the Department under
14    Section 1g of this Act.
15        (29) Personal property sold to a lessor who leases the
16    property, under a lease of one year or longer executed or
17    in effect at the time of the purchase, to a governmental
18    body that has been issued an active tax exemption
19    identification number by the Department under Section 1g
20    of this Act.
21        (30) Beginning with taxable years ending on or after
22    December 31, 1995 and ending with taxable years ending on
23    or before December 31, 2004, personal property that is
24    donated for disaster relief to be used in a State or
25    federally declared disaster area in Illinois or bordering
26    Illinois by a manufacturer or retailer that is registered

 

 

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1    in this State to a corporation, society, association,
2    foundation, or institution that has been issued a sales
3    tax exemption identification number by the Department that
4    assists victims of the disaster who reside within the
5    declared disaster area.
6        (31) Beginning with taxable years ending on or after
7    December 31, 1995 and ending with taxable years ending on
8    or before December 31, 2004, personal property that is
9    used in the performance of infrastructure repairs in this
10    State, including but not limited to municipal roads and
11    streets, access roads, bridges, sidewalks, waste disposal
12    systems, water and sewer line extensions, water
13    distribution and purification facilities, storm water
14    drainage and retention facilities, and sewage treatment
15    facilities, resulting from a State or federally declared
16    disaster in Illinois or bordering Illinois when such
17    repairs are initiated on facilities located in the
18    declared disaster area within 6 months after the disaster.
19        (32) Beginning July 1, 1999, game or game birds sold
20    at a "game breeding and hunting preserve area" as that
21    term is used in the Wildlife Code. This paragraph is
22    exempt from the provisions of Section 2-70.
23        (33) A motor vehicle, as that term is defined in
24    Section 1-146 of the Illinois Vehicle Code, that is
25    donated to a corporation, limited liability company,
26    society, association, foundation, or institution that is

 

 

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1    determined by the Department to be organized and operated
2    exclusively for educational purposes. For purposes of this
3    exemption, "a corporation, limited liability company,
4    society, association, foundation, or institution organized
5    and operated exclusively for educational purposes" means
6    all tax-supported public schools, private schools that
7    offer systematic instruction in useful branches of
8    learning by methods common to public schools and that
9    compare favorably in their scope and intensity with the
10    course of study presented in tax-supported schools, and
11    vocational or technical schools or institutes organized
12    and operated exclusively to provide a course of study of
13    not less than 6 weeks duration and designed to prepare
14    individuals to follow a trade or to pursue a manual,
15    technical, mechanical, industrial, business, or commercial
16    occupation.
17        (34) Beginning January 1, 2000, personal property,
18    including food, purchased through fundraising events for
19    the benefit of a public or private elementary or secondary
20    school, a group of those schools, or one or more school
21    districts if the events are sponsored by an entity
22    recognized by the school district that consists primarily
23    of volunteers and includes parents and teachers of the
24    school children. This paragraph does not apply to
25    fundraising events (i) for the benefit of private home
26    instruction or (ii) for which the fundraising entity

 

 

SB2066 Enrolled- 30 -LRB102 16579 HLH 21976 b

1    purchases the personal property sold at the events from
2    another individual or entity that sold the property for
3    the purpose of resale by the fundraising entity and that
4    profits from the sale to the fundraising entity. This
5    paragraph is exempt from the provisions of Section 2-70.
6        (35) Beginning January 1, 2000 and through December
7    31, 2001, new or used automatic vending machines that
8    prepare and serve hot food and beverages, including
9    coffee, soup, and other items, and replacement parts for
10    these machines. Beginning January 1, 2002 and through June
11    30, 2003, machines and parts for machines used in
12    commercial, coin-operated amusement and vending business
13    if a use or occupation tax is paid on the gross receipts
14    derived from the use of the commercial, coin-operated
15    amusement and vending machines. This paragraph is exempt
16    from the provisions of Section 2-70.
17        (35-5) Beginning August 23, 2001 and through June 30,
18    2016, food for human consumption that is to be consumed
19    off the premises where it is sold (other than alcoholic
20    beverages, soft drinks, and food that has been prepared
21    for immediate consumption) and prescription and
22    nonprescription medicines, drugs, medical appliances, and
23    insulin, urine testing materials, syringes, and needles
24    used by diabetics, for human use, when purchased for use
25    by a person receiving medical assistance under Article V
26    of the Illinois Public Aid Code who resides in a licensed

 

 

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1    long-term care facility, as defined in the Nursing Home
2    Care Act, or a licensed facility as defined in the ID/DD
3    Community Care Act, the MC/DD Act, or the Specialized
4    Mental Health Rehabilitation Act of 2013.
5        (36) Beginning August 2, 2001, computers and
6    communications equipment utilized for any hospital purpose
7    and equipment used in the diagnosis, analysis, or
8    treatment of hospital patients sold to a lessor who leases
9    the equipment, under a lease of one year or longer
10    executed or in effect at the time of the purchase, to a
11    hospital that has been issued an active tax exemption
12    identification number by the Department under Section 1g
13    of this Act. This paragraph is exempt from the provisions
14    of Section 2-70.
15        (37) Beginning August 2, 2001, personal property sold
16    to a lessor who leases the property, under a lease of one
17    year or longer executed or in effect at the time of the
18    purchase, to a governmental body that has been issued an
19    active tax exemption identification number by the
20    Department under Section 1g of this Act. This paragraph is
21    exempt from the provisions of Section 2-70.
22        (38) Beginning on January 1, 2002 and through June 30,
23    2016, tangible personal property purchased from an
24    Illinois retailer by a taxpayer engaged in centralized
25    purchasing activities in Illinois who will, upon receipt
26    of the property in Illinois, temporarily store the

 

 

SB2066 Enrolled- 32 -LRB102 16579 HLH 21976 b

1    property in Illinois (i) for the purpose of subsequently
2    transporting it outside this State for use or consumption
3    thereafter solely outside this State or (ii) for the
4    purpose of being processed, fabricated, or manufactured
5    into, attached to, or incorporated into other tangible
6    personal property to be transported outside this State and
7    thereafter used or consumed solely outside this State. The
8    Director of Revenue shall, pursuant to rules adopted in
9    accordance with the Illinois Administrative Procedure Act,
10    issue a permit to any taxpayer in good standing with the
11    Department who is eligible for the exemption under this
12    paragraph (38). The permit issued under this paragraph
13    (38) shall authorize the holder, to the extent and in the
14    manner specified in the rules adopted under this Act, to
15    purchase tangible personal property from a retailer exempt
16    from the taxes imposed by this Act. Taxpayers shall
17    maintain all necessary books and records to substantiate
18    the use and consumption of all such tangible personal
19    property outside of the State of Illinois.
20        (39) Beginning January 1, 2008, tangible personal
21    property used in the construction or maintenance of a
22    community water supply, as defined under Section 3.145 of
23    the Environmental Protection Act, that is operated by a
24    not-for-profit corporation that holds a valid water supply
25    permit issued under Title IV of the Environmental
26    Protection Act. This paragraph is exempt from the

 

 

SB2066 Enrolled- 33 -LRB102 16579 HLH 21976 b

1    provisions of Section 2-70.
2        (40) Beginning January 1, 2010 and continuing through
3    December 31, 2024, materials, parts, equipment,
4    components, and furnishings incorporated into or upon an
5    aircraft as part of the modification, refurbishment,
6    completion, replacement, repair, or maintenance of the
7    aircraft. This exemption includes consumable supplies used
8    in the modification, refurbishment, completion,
9    replacement, repair, and maintenance of aircraft, but
10    excludes any materials, parts, equipment, components, and
11    consumable supplies used in the modification, replacement,
12    repair, and maintenance of aircraft engines or power
13    plants, whether such engines or power plants are installed
14    or uninstalled upon any such aircraft. "Consumable
15    supplies" include, but are not limited to, adhesive, tape,
16    sandpaper, general purpose lubricants, cleaning solution,
17    latex gloves, and protective films. This exemption applies
18    only to the sale of qualifying tangible personal property
19    to persons who modify, refurbish, complete, replace, or
20    maintain an aircraft and who (i) hold an Air Agency
21    Certificate and are empowered to operate an approved
22    repair station by the Federal Aviation Administration,
23    (ii) have a Class IV Rating, and (iii) conduct operations
24    in accordance with Part 145 of the Federal Aviation
25    Regulations. The exemption does not include aircraft
26    operated by a commercial air carrier providing scheduled

 

 

SB2066 Enrolled- 34 -LRB102 16579 HLH 21976 b

1    passenger air service pursuant to authority issued under
2    Part 121 or Part 129 of the Federal Aviation Regulations.
3    The changes made to this paragraph (40) by Public Act
4    98-534 are declarative of existing law. It is the intent
5    of the General Assembly that the exemption under this
6    paragraph (40) applies continuously from January 1, 2010
7    through December 31, 2024; however, no claim for credit or
8    refund is allowed for taxes paid as a result of the
9    disallowance of this exemption on or after January 1, 2015
10    and prior to the effective date of this amendatory Act of
11    the 101st General Assembly.
12        (41) Tangible personal property sold to a
13    public-facilities corporation, as described in Section
14    11-65-10 of the Illinois Municipal Code, for purposes of
15    constructing or furnishing a municipal convention hall,
16    but only if the legal title to the municipal convention
17    hall is transferred to the municipality without any
18    further consideration by or on behalf of the municipality
19    at the time of the completion of the municipal convention
20    hall or upon the retirement or redemption of any bonds or
21    other debt instruments issued by the public-facilities
22    corporation in connection with the development of the
23    municipal convention hall. This exemption includes
24    existing public-facilities corporations as provided in
25    Section 11-65-25 of the Illinois Municipal Code. This
26    paragraph is exempt from the provisions of Section 2-70.

 

 

SB2066 Enrolled- 35 -LRB102 16579 HLH 21976 b

1        (42) Beginning January 1, 2017, menstrual pads,
2    tampons, and menstrual cups.
3        (43) Merchandise that is subject to the Rental
4    Purchase Agreement Occupation and Use Tax. The purchaser
5    must certify that the item is purchased to be rented
6    subject to a rental purchase agreement, as defined in the
7    Rental Purchase Agreement Act, and provide proof of
8    registration under the Rental Purchase Agreement
9    Occupation and Use Tax Act. This paragraph is exempt from
10    the provisions of Section 2-70.
11        (44) Qualified tangible personal property used in the
12    construction or operation of a data center that has been
13    granted a certificate of exemption by the Department of
14    Commerce and Economic Opportunity, whether that tangible
15    personal property is purchased by the owner, operator, or
16    tenant of the data center or by a contractor or
17    subcontractor of the owner, operator, or tenant. Data
18    centers that would have qualified for a certificate of
19    exemption prior to January 1, 2020 had this amendatory Act
20    of the 101st General Assembly been in effect, may apply
21    for and obtain an exemption for subsequent purchases of
22    computer equipment or enabling software purchased or
23    leased to upgrade, supplement, or replace computer
24    equipment or enabling software purchased or leased in the
25    original investment that would have qualified.
26        The Department of Commerce and Economic Opportunity

 

 

SB2066 Enrolled- 36 -LRB102 16579 HLH 21976 b

1    shall grant a certificate of exemption under this item
2    (44) to qualified data centers as defined by Section
3    605-1025 of the Department of Commerce and Economic
4    Opportunity Law of the Civil Administrative Code of
5    Illinois.
6        For the purposes of this item (44):
7            "Data center" means a building or a series of
8        buildings rehabilitated or constructed to house
9        working servers in one physical location or multiple
10        sites within the State of Illinois.
11            "Qualified tangible personal property" means:
12        electrical systems and equipment; climate control and
13        chilling equipment and systems; mechanical systems and
14        equipment; monitoring and secure systems; emergency
15        generators; hardware; computers; servers; data storage
16        devices; network connectivity equipment; racks;
17        cabinets; telecommunications cabling infrastructure;
18        raised floor systems; peripheral components or
19        systems; software; mechanical, electrical, or plumbing
20        systems; battery systems; cooling systems and towers;
21        temperature control systems; other cabling; and other
22        data center infrastructure equipment and systems
23        necessary to operate qualified tangible personal
24        property, including fixtures; and component parts of
25        any of the foregoing, including installation,
26        maintenance, repair, refurbishment, and replacement of

 

 

SB2066 Enrolled- 37 -LRB102 16579 HLH 21976 b

1        qualified tangible personal property to generate,
2        transform, transmit, distribute, or manage electricity
3        necessary to operate qualified tangible personal
4        property; and all other tangible personal property
5        that is essential to the operations of a computer data
6        center. The term "qualified tangible personal
7        property" also includes building materials physically
8        incorporated in to the qualifying data center. To
9        document the exemption allowed under this Section, the
10        retailer must obtain from the purchaser a copy of the
11        certificate of eligibility issued by the Department of
12        Commerce and Economic Opportunity.
13        This item (44) is exempt from the provisions of
14    Section 2-70.
15        (45) Beginning January 1, 2020 and through December
16    31, 2020, sales of tangible personal property made by a
17    marketplace seller over a marketplace for which tax is due
18    under this Act but for which use tax has been collected and
19    remitted to the Department by a marketplace facilitator
20    under Section 2d of the Use Tax Act are exempt from tax
21    under this Act. A marketplace seller claiming this
22    exemption shall maintain books and records demonstrating
23    that the use tax on such sales has been collected and
24    remitted by a marketplace facilitator. Marketplace sellers
25    that have properly remitted tax under this Act on such
26    sales may file a claim for credit as provided in Section 6

 

 

SB2066 Enrolled- 38 -LRB102 16579 HLH 21976 b

1    of this Act. No claim is allowed, however, for such taxes
2    for which a credit or refund has been issued to the
3    marketplace facilitator under the Use Tax Act, or for
4    which the marketplace facilitator has filed a claim for
5    credit or refund under the Use Tax Act.
6(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
7100-437, eff. 1-1-18; 100-594, eff. 6-29-18; 100-863, eff.
88-14-18; 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81,
9eff. 7-12-19; 101-629, eff. 2-5-20.)
 
10    (35 ILCS 120/3)  (from Ch. 120, par. 442)
11    Sec. 3. Except as provided in this Section, on or before
12the twentieth day of each calendar month, every person engaged
13in the business of selling tangible personal property at
14retail in this State during the preceding calendar month shall
15file a return with the Department, stating:
16        1. The name of the seller;
17        2. His residence address and the address of his
18    principal place of business and the address of the
19    principal place of business (if that is a different
20    address) from which he engages in the business of selling
21    tangible personal property at retail in this State;
22        3. Total amount of receipts received by him during the
23    preceding calendar month or quarter, as the case may be,
24    from sales of tangible personal property, and from
25    services furnished, by him during such preceding calendar

 

 

SB2066 Enrolled- 39 -LRB102 16579 HLH 21976 b

1    month or quarter;
2        4. Total amount received by him during the preceding
3    calendar month or quarter on charge and time sales of
4    tangible personal property, and from services furnished,
5    by him prior to the month or quarter for which the return
6    is filed;
7        5. Deductions allowed by law;
8        6. Gross receipts which were received by him during
9    the preceding calendar month or quarter and upon the basis
10    of which the tax is imposed;
11        7. The amount of credit provided in Section 2d of this
12    Act;
13        8. The amount of tax due;
14        9. The signature of the taxpayer; and
15        10. Such other reasonable information as the
16    Department may require.
17    On and after January 1, 2018, except for returns for motor
18vehicles, watercraft, aircraft, and trailers that are required
19to be registered with an agency of this State, with respect to
20retailers whose annual gross receipts average $20,000 or more,
21all returns required to be filed pursuant to this Act shall be
22filed electronically. Retailers who demonstrate that they do
23not have access to the Internet or demonstrate hardship in
24filing electronically may petition the Department to waive the
25electronic filing requirement.
26    If a taxpayer fails to sign a return within 30 days after

 

 

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1the proper notice and demand for signature by the Department,
2the return shall be considered valid and any amount shown to be
3due on the return shall be deemed assessed.
4    Each return shall be accompanied by the statement of
5prepaid tax issued pursuant to Section 2e for which credit is
6claimed.
7    Prior to October 1, 2003, and on and after September 1,
82004 a retailer may accept a Manufacturer's Purchase Credit
9certification from a purchaser in satisfaction of Use Tax as
10provided in Section 3-85 of the Use Tax Act if the purchaser
11provides the appropriate documentation as required by Section
123-85 of the Use Tax Act. A Manufacturer's Purchase Credit
13certification, accepted by a retailer prior to October 1, 2003
14and on and after September 1, 2004 as provided in Section 3-85
15of the Use Tax Act, may be used by that retailer to satisfy
16Retailers' Occupation Tax liability in the amount claimed in
17the certification, not to exceed 6.25% of the receipts subject
18to tax from a qualifying purchase. A Manufacturer's Purchase
19Credit reported on any original or amended return filed under
20this Act after October 20, 2003 for reporting periods prior to
21September 1, 2004 shall be disallowed. Manufacturer's
22Purchaser Credit reported on annual returns due on or after
23January 1, 2005 will be disallowed for periods prior to
24September 1, 2004. No Manufacturer's Purchase Credit may be
25used after September 30, 2003 through August 31, 2004 to
26satisfy any tax liability imposed under this Act, including

 

 

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1any audit liability.
2    The Department may require returns to be filed on a
3quarterly basis. If so required, a return for each calendar
4quarter shall be filed on or before the twentieth day of the
5calendar month following the end of such calendar quarter. The
6taxpayer shall also file a return with the Department for each
7of the first two months of each calendar quarter, on or before
8the twentieth day of the following calendar month, stating:
9        1. The name of the seller;
10        2. The address of the principal place of business from
11    which he engages in the business of selling tangible
12    personal property at retail in this State;
13        3. The total amount of taxable receipts received by
14    him during the preceding calendar month from sales of
15    tangible personal property by him during such preceding
16    calendar month, including receipts from charge and time
17    sales, but less all deductions allowed by law;
18        4. The amount of credit provided in Section 2d of this
19    Act;
20        5. The amount of tax due; and
21        6. Such other reasonable information as the Department
22    may require.
23    Every person engaged in the business of selling aviation
24fuel at retail in this State during the preceding calendar
25month shall, instead of reporting and paying tax as otherwise
26required by this Section, report and pay such tax on a separate

 

 

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1aviation fuel tax return. The requirements related to the
2return shall be as otherwise provided in this Section.
3Notwithstanding any other provisions of this Act to the
4contrary, retailers selling aviation fuel shall file all
5aviation fuel tax returns and shall make all aviation fuel tax
6payments by electronic means in the manner and form required
7by the Department. For purposes of this Section, "aviation
8fuel" means jet fuel and aviation gasoline.
9    Beginning on October 1, 2003, any person who is not a
10licensed distributor, importing distributor, or manufacturer,
11as defined in the Liquor Control Act of 1934, but is engaged in
12the business of selling, at retail, alcoholic liquor shall
13file a statement with the Department of Revenue, in a format
14and at a time prescribed by the Department, showing the total
15amount paid for alcoholic liquor purchased during the
16preceding month and such other information as is reasonably
17required by the Department. The Department may adopt rules to
18require that this statement be filed in an electronic or
19telephonic format. Such rules may provide for exceptions from
20the filing requirements of this paragraph. For the purposes of
21this paragraph, the term "alcoholic liquor" shall have the
22meaning prescribed in the Liquor Control Act of 1934.
23    Beginning on October 1, 2003, every distributor, importing
24distributor, and manufacturer of alcoholic liquor as defined
25in the Liquor Control Act of 1934, shall file a statement with
26the Department of Revenue, no later than the 10th day of the

 

 

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

 

 

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1than 50 cents and shall be increased to $1 if it is 50 cents or
2more.
3    Notwithstanding any other provision of this Act to the
4contrary, retailers subject to tax on cannabis shall file all
5cannabis tax returns and shall make all cannabis tax payments
6by electronic means in the manner and form required by the
7Department.
8    Beginning October 1, 1993, a taxpayer who has an average
9monthly tax liability of $150,000 or more shall make all
10payments required by rules of the Department by electronic
11funds transfer. Beginning October 1, 1994, a taxpayer who has
12an average monthly tax liability of $100,000 or more shall
13make all payments required by rules of the Department by
14electronic funds transfer. Beginning October 1, 1995, a
15taxpayer who has an average monthly tax liability of $50,000
16or more shall make all payments required by rules of the
17Department by electronic funds transfer. Beginning October 1,
182000, a taxpayer who has an annual tax liability of $200,000 or
19more shall make all payments required by rules of the
20Department by electronic funds transfer. The term "annual tax
21liability" shall be the sum of the taxpayer's liabilities
22under this Act, and under all other State and local occupation
23and use tax laws administered by the Department, for the
24immediately preceding calendar year. The term "average monthly
25tax liability" shall be the sum of the taxpayer's liabilities
26under this Act, and under all other State and local occupation

 

 

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

 

 

SB2066 Enrolled- 46 -LRB102 16579 HLH 21976 b

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

 

 

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

 

 

SB2066 Enrolled- 48 -LRB102 16579 HLH 21976 b

1motor vehicles or trailers involved in that transaction to the
2Department on the same uniform invoice-transaction reporting
3return form. For purposes of this Section, "watercraft" means
4a Class 2, Class 3, or Class 4 watercraft as defined in Section
53-2 of the Boat Registration and Safety Act, a personal
6watercraft, or any boat equipped with an inboard motor.
7    In addition, with respect to motor vehicles, watercraft,
8aircraft, and trailers that are required to be registered with
9an agency of this State, every person who is engaged in the
10business of leasing or renting such items and who, in
11connection with such business, sells any such item to a
12retailer for the purpose of resale is, notwithstanding any
13other provision of this Section to the contrary, authorized to
14meet the return-filing requirement of this Act by reporting
15the transfer of all the aircraft, watercraft, motor vehicles,
16or trailers transferred for resale during a month to the
17Department on the same uniform invoice-transaction reporting
18return form on or before the 20th of the month following the
19month in which the transfer takes place. Notwithstanding any
20other provision of this Act to the contrary, all returns filed
21under this paragraph must be filed by electronic means in the
22manner and form as required by the Department.
23    Any retailer who sells only motor vehicles, watercraft,
24aircraft, or trailers that are required to be registered with
25an agency of this State, so that all retailers' occupation tax
26liability is required to be reported, and is reported, on such

 

 

SB2066 Enrolled- 49 -LRB102 16579 HLH 21976 b

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

 

 

SB2066 Enrolled- 50 -LRB102 16579 HLH 21976 b

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

 

 

SB2066 Enrolled- 51 -LRB102 16579 HLH 21976 b

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

 

 

SB2066 Enrolled- 52 -LRB102 16579 HLH 21976 b

1the retailer is willing to take these actions and such user has
2not paid the tax to the retailer, such user may certify to the
3fact of such delay by the retailer and may (upon the Department
4being satisfied of the truth of such certification) transmit
5the information required by the transaction reporting return
6and the remittance for tax or proof of exemption directly to
7the Department and obtain his tax receipt or exemption
8determination, in which event the transaction reporting return
9and tax remittance (if a tax payment was required) shall be
10credited by the Department to the proper retailer's account
11with the Department, but without the 2.1% or 1.75% discount
12provided for in this Section being allowed. When the user pays
13the tax directly to the Department, he shall pay the tax in the
14same amount and in the same form in which it would be remitted
15if the tax had been remitted to the Department by the retailer.
16    Refunds made by the seller during the preceding return
17period to purchasers, on account of tangible personal property
18returned to the seller, shall be allowed as a deduction under
19subdivision 5 of his monthly or quarterly return, as the case
20may be, in case the seller had theretofore included the
21receipts from the sale of such tangible personal property in a
22return filed by him and had paid the tax imposed by this Act
23with respect to such receipts.
24    Where the seller is a corporation, the return filed on
25behalf of such corporation shall be signed by the president,
26vice-president, secretary or treasurer or by the properly

 

 

SB2066 Enrolled- 53 -LRB102 16579 HLH 21976 b

1accredited agent of such corporation.
2    Where the seller is a limited liability company, the
3return filed on behalf of the limited liability company shall
4be signed by a manager, member, or properly accredited agent
5of the limited liability company.
6    Except as provided in this Section, the retailer filing
7the return under this Section shall, at the time of filing such
8return, pay to the Department the amount of tax imposed by this
9Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
10on and after January 1, 1990, or $5 per calendar year,
11whichever is greater, which is allowed to reimburse the
12retailer for the expenses incurred in keeping records,
13preparing and filing returns, remitting the tax and supplying
14data to the Department on request. On and after January 1,
152021, a certified service provider, as defined in the Leveling
16the Playing Field for Illinois Retail Act, filing the return
17under this Section on behalf of a remote retailer shall, at the
18time of such return, pay to the Department the amount of tax
19imposed by this Act less a discount of 1.75%. A remote retailer
20using a certified service provider to file a return on its
21behalf, as provided in the Leveling the Playing Field for
22Illinois Retail Act, is not eligible for the discount. The
23discount under this Section is not allowed for the 1.25%
24portion of taxes paid on aviation fuel that is subject to the
25revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2647133. Any prepayment made pursuant to Section 2d of this Act

 

 

SB2066 Enrolled- 54 -LRB102 16579 HLH 21976 b

1shall be included in the amount on which such 2.1% or 1.75%
2discount is computed. In the case of retailers who report and
3pay the tax on a transaction by transaction basis, as provided
4in this Section, such discount shall be taken with each such
5tax remittance instead of when such retailer files his
6periodic return. The discount allowed under this Section is
7allowed only for returns that are filed in the manner required
8by this Act. The Department may disallow the discount for
9retailers whose certificate of registration is revoked at the
10time the return is filed, but only if the Department's
11decision to revoke the certificate of registration has become
12final.
13    Before October 1, 2000, if the taxpayer's average monthly
14tax liability to the Department under this Act, the Use Tax
15Act, the Service Occupation Tax Act, and the Service Use Tax
16Act, excluding any liability for prepaid sales tax to be
17remitted in accordance with Section 2d of this Act, was
18$10,000 or more during the preceding 4 complete calendar
19quarters, he shall file a return with the Department each
20month by the 20th day of the month next following the month
21during which such tax liability is incurred and shall make
22payments to the Department on or before the 7th, 15th, 22nd and
23last day of the month during which such liability is incurred.
24On and after October 1, 2000, if the taxpayer's average
25monthly tax liability to the Department under this Act, the
26Use Tax Act, the Service Occupation Tax Act, and the Service

 

 

SB2066 Enrolled- 55 -LRB102 16579 HLH 21976 b

1Use Tax Act, excluding any liability for prepaid sales tax to
2be remitted in accordance with Section 2d of this Act, was
3$20,000 or more during the preceding 4 complete calendar
4quarters, he shall file a return with the Department each
5month by the 20th day of the month next following the month
6during which such tax liability is incurred and shall make
7payment to the Department on or before the 7th, 15th, 22nd and
8last day of the month during which such liability is incurred.
9If the month during which such tax liability is incurred began
10prior to January 1, 1985, each payment shall be in an amount
11equal to 1/4 of the taxpayer's actual liability for the month
12or an amount set by the Department not to exceed 1/4 of the
13average monthly liability of the taxpayer to the Department
14for the preceding 4 complete calendar quarters (excluding the
15month of highest liability and the month of lowest liability
16in such 4 quarter period). If the month during which such tax
17liability is incurred begins on or after January 1, 1985 and
18prior to January 1, 1987, each payment shall be in an amount
19equal to 22.5% of the taxpayer's actual liability for the
20month or 27.5% of the taxpayer's liability for the same
21calendar month of the preceding year. If the month during
22which such tax liability is incurred begins on or after
23January 1, 1987 and prior to January 1, 1988, each payment
24shall be in an amount equal to 22.5% of the taxpayer's actual
25liability for the month or 26.25% of the taxpayer's liability
26for the same calendar month of the preceding year. If the month

 

 

SB2066 Enrolled- 56 -LRB102 16579 HLH 21976 b

1during which such tax liability is incurred begins on or after
2January 1, 1988, and prior to January 1, 1989, or begins on or
3after January 1, 1996, each payment shall be in an amount equal
4to 22.5% of the taxpayer's actual liability for the month or
525% of the taxpayer's liability for the same calendar month of
6the preceding year. If the month during which such tax
7liability is incurred begins on or after January 1, 1989, and
8prior to January 1, 1996, each payment shall be in an amount
9equal to 22.5% of the taxpayer's actual liability for the
10month or 25% of the taxpayer's liability for the same calendar
11month of the preceding year or 100% of the taxpayer's actual
12liability for the quarter monthly reporting period. The amount
13of such quarter monthly payments shall be credited against the
14final tax liability of the taxpayer's return for that month.
15Before 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 $10,000
18or more as determined in the manner provided above shall
19continue until such taxpayer's average monthly liability to
20the Department during the preceding 4 complete calendar
21quarters (excluding the month of highest liability and the
22month of lowest liability) is less than $9,000, or until such
23taxpayer's average monthly liability to the Department as
24computed for each calendar quarter of the 4 preceding complete
25calendar quarter period is less than $10,000. However, if a
26taxpayer can show the Department that a substantial change in

 

 

SB2066 Enrolled- 57 -LRB102 16579 HLH 21976 b

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

 

 

SB2066 Enrolled- 58 -LRB102 16579 HLH 21976 b

1then the taxpayer shall be liable for penalties and interest
2on the difference between the minimum amount due as a payment
3and the amount of such quarter monthly payment actually and
4timely paid, except insofar as the taxpayer has previously
5made payments for that month to the Department in excess of the
6minimum payments previously due as provided in this Section.
7The Department shall make reasonable rules and regulations to
8govern the quarter monthly payment amount and quarter monthly
9payment dates for taxpayers who file on other than a calendar
10monthly basis.
11    The provisions of this paragraph apply before October 1,
122001. Without regard to whether a taxpayer is required to make
13quarter monthly payments as specified above, any taxpayer who
14is required by Section 2d of this Act to collect and remit
15prepaid taxes and has collected prepaid taxes which average in
16excess of $25,000 per month during the preceding 2 complete
17calendar quarters, shall file a return with the Department as
18required by Section 2f and shall make payments to the
19Department on or before the 7th, 15th, 22nd and last day of the
20month during which such liability is incurred. If the month
21during which such tax liability is incurred began prior to
22September 1, 1985 (the effective date of Public Act 84-221),
23each payment shall be in an amount not less than 22.5% of the
24taxpayer's actual liability under Section 2d. If the month
25during which such tax liability is incurred begins on or after
26January 1, 1986, each payment shall be in an amount equal to

 

 

SB2066 Enrolled- 59 -LRB102 16579 HLH 21976 b

122.5% of the taxpayer's actual liability for the month or
227.5% of the taxpayer's liability for the same calendar month
3of the preceding calendar year. If the month during which such
4tax liability is incurred begins on or after January 1, 1987,
5each payment shall be in an amount equal to 22.5% of the
6taxpayer's actual liability for the month or 26.25% of the
7taxpayer's liability for the same calendar month of the
8preceding year. The amount of such quarter monthly payments
9shall be credited against the final tax liability of the
10taxpayer's return for that month filed under this Section or
11Section 2f, as the case may be. Once applicable, the
12requirement of the making of quarter monthly payments to the
13Department pursuant to this paragraph shall continue until
14such taxpayer's average monthly prepaid tax collections during
15the preceding 2 complete calendar quarters is $25,000 or less.
16If any such quarter monthly payment is not paid at the time or
17in the amount required, the taxpayer shall be liable for
18penalties and interest on such difference, except insofar as
19the taxpayer has previously made payments for that month in
20excess of the minimum payments previously due.
21    The provisions of this paragraph apply on and after
22October 1, 2001. Without regard to whether a taxpayer is
23required to make quarter monthly payments as specified above,
24any taxpayer who is required by Section 2d of this Act to
25collect and remit prepaid taxes and has collected prepaid
26taxes that average in excess of $20,000 per month during the

 

 

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1preceding 4 complete calendar quarters shall file a return
2with the Department as required by Section 2f and shall make
3payments to the Department on or before the 7th, 15th, 22nd and
4last day of the month during which the liability is incurred.
5Each payment shall be in an amount equal to 22.5% of the
6taxpayer's actual liability for the month or 25% of the
7taxpayer's liability for the same calendar month of the
8preceding year. The amount of the quarter monthly payments
9shall be credited against the final tax liability of the
10taxpayer's return for that month filed under this Section or
11Section 2f, as the case may be. Once applicable, the
12requirement of the making of quarter monthly payments to the
13Department pursuant to this paragraph shall continue until the
14taxpayer's average monthly prepaid tax collections during the
15preceding 4 complete calendar quarters (excluding the month of
16highest liability and the month of lowest liability) is less
17than $19,000 or until such taxpayer's average monthly
18liability to the Department as computed for each calendar
19quarter of the 4 preceding complete calendar quarters is less
20than $20,000. If any such quarter monthly payment is not paid
21at the time or in the amount required, the taxpayer shall be
22liable for penalties and interest on such difference, except
23insofar as the taxpayer has previously made payments for that
24month in excess of the minimum payments previously due.
25    If any payment provided for in this Section exceeds the
26taxpayer's liabilities under this Act, the Use Tax Act, the

 

 

SB2066 Enrolled- 61 -LRB102 16579 HLH 21976 b

1Service Occupation Tax Act and the Service Use Tax Act, as
2shown on an original monthly return, the Department shall, if
3requested by the taxpayer, issue to the taxpayer a credit
4memorandum no later than 30 days after the date of payment. The
5credit evidenced by such credit memorandum may be assigned by
6the taxpayer to a similar taxpayer under this Act, the Use Tax
7Act, the Service Occupation Tax Act or the Service Use Tax Act,
8in accordance with reasonable rules and regulations to be
9prescribed by the Department. If no such request is made, the
10taxpayer may credit such excess payment against tax liability
11subsequently to be remitted to the Department under this Act,
12the Use Tax Act, the Service Occupation Tax Act or the Service
13Use Tax Act, in accordance with reasonable rules and
14regulations prescribed by the Department. If the Department
15subsequently determined that all or any part of the credit
16taken was not actually due to the taxpayer, the taxpayer's
172.1% and 1.75% vendor's discount shall be reduced by 2.1% or
181.75% of the difference between the credit taken and that
19actually due, and that taxpayer shall be liable for penalties
20and interest on such difference.
21    If a retailer of motor fuel is entitled to a credit under
22Section 2d of this Act which exceeds the taxpayer's liability
23to the Department under this Act for the month which the
24taxpayer is filing a return, the Department shall issue the
25taxpayer a credit memorandum for the excess.
26    Beginning January 1, 1990, each month the Department shall

 

 

SB2066 Enrolled- 62 -LRB102 16579 HLH 21976 b

1pay into the Local Government Tax Fund, a special fund in the
2State treasury which is hereby created, the net revenue
3realized for the preceding month from the 1% tax imposed under
4this Act.
5    Beginning January 1, 1990, each month the Department shall
6pay into the County and Mass Transit District Fund, a special
7fund in the State treasury which is hereby created, 4% of the
8net revenue realized for the preceding month from the 6.25%
9general rate other than aviation fuel sold on or after
10December 1, 2019. This exception for aviation fuel only
11applies for so long as the revenue use requirements of 49
12U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
13    Beginning August 1, 2000, each month the Department shall
14pay into the County and Mass Transit District Fund 20% of the
15net revenue realized for the preceding month from the 1.25%
16rate on the selling price of motor fuel and gasohol. Beginning
17September 1, 2010, each month the Department shall pay into
18the County and Mass Transit District Fund 20% of the net
19revenue realized for the preceding month from the 1.25% rate
20on the selling price of sales tax holiday items.
21    Beginning January 1, 1990, each month the Department shall
22pay into the Local Government Tax Fund 16% of the net revenue
23realized for the preceding month from the 6.25% general rate
24on the selling price of tangible personal property other than
25aviation fuel sold on or after December 1, 2019. This
26exception for aviation fuel only applies for so long as the

 

 

SB2066 Enrolled- 63 -LRB102 16579 HLH 21976 b

1revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
247133 are binding on the State.
3    For aviation fuel sold on or after December 1, 2019, each
4month the Department shall pay into the State Aviation Program
5Fund 20% of the net revenue realized for the preceding month
6from the 6.25% general rate on the selling price of aviation
7fuel, less an amount estimated by the Department to be
8required for refunds of the 20% portion of the tax on aviation
9fuel under this Act, which amount shall be deposited into the
10Aviation Fuel Sales Tax Refund Fund. The Department shall only
11pay moneys into the State Aviation Program Fund and the
12Aviation Fuel Sales Tax Refund Fund under this Act for so long
13as the revenue use requirements of 49 U.S.C. 47107(b) and 49
14U.S.C. 47133 are binding on the State.
15    Beginning August 1, 2000, each month the Department shall
16pay into the Local Government Tax Fund 80% of the net revenue
17realized for the preceding month from the 1.25% rate on the
18selling price of motor fuel and gasohol. Beginning September
191, 2010, each month the Department shall pay into the Local
20Government Tax Fund 80% of the net revenue realized for the
21preceding month from the 1.25% rate on the selling price of
22sales tax holiday items.
23    Beginning October 1, 2009, each month the Department shall
24pay into the Capital Projects Fund an amount that is equal to
25an amount estimated by the Department to represent 80% of the
26net revenue realized for the preceding month from the sale of

 

 

SB2066 Enrolled- 64 -LRB102 16579 HLH 21976 b

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

 

 

SB2066 Enrolled- 65 -LRB102 16579 HLH 21976 b

1paragraph.
2    Beginning July 1, 2015, of the remainder of the moneys
3received by the Department under the Use Tax Act, the Service
4Use Tax Act, the Service Occupation Tax Act, and this Act, each
5month the Department shall deposit $500,000 into the State
6Crime Laboratory Fund.
7    Of the remainder of the moneys received by the Department
8pursuant to this Act, (a) 1.75% thereof shall be paid into the
9Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
10and after July 1, 1989, 3.8% thereof shall be paid into the
11Build Illinois Fund; provided, however, that if in any fiscal
12year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
13may be, of the moneys received by the Department and required
14to be paid into the Build Illinois Fund pursuant to this Act,
15Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
16Act, and Section 9 of the Service Occupation Tax Act, such Acts
17being hereinafter called the "Tax Acts" and such aggregate of
182.2% or 3.8%, as the case may be, of moneys being hereinafter
19called the "Tax Act Amount", and (2) the amount transferred to
20the Build Illinois Fund from the State and Local Sales Tax
21Reform Fund shall be less than the Annual Specified Amount (as
22hereinafter defined), an amount equal to the difference shall
23be immediately paid into the Build Illinois Fund from other
24moneys received by the Department pursuant to the Tax Acts;
25the "Annual Specified Amount" means the amounts specified
26below for fiscal years 1986 through 1993:

 

 

SB2066 Enrolled- 66 -LRB102 16579 HLH 21976 b

1Fiscal YearAnnual Specified Amount
21986$54,800,000
31987$76,650,000
41988$80,480,000
51989$88,510,000
61990$115,330,000
71991$145,470,000
81992$182,730,000
91993$206,520,000;
10and means the Certified Annual Debt Service Requirement (as
11defined in Section 13 of the Build Illinois Bond Act) or the
12Tax Act Amount, whichever is greater, for fiscal year 1994 and
13each fiscal year thereafter; and further provided, that if on
14the last business day of any month the sum of (1) the Tax Act
15Amount required to be deposited into the Build Illinois Bond
16Account in the Build Illinois Fund during such month and (2)
17the amount transferred to the Build Illinois Fund from the
18State and Local Sales Tax Reform Fund shall have been less than
191/12 of the Annual Specified Amount, an amount equal to the
20difference shall be immediately paid into the Build Illinois
21Fund from other moneys received by the Department pursuant to
22the Tax Acts; and, further provided, that in no event shall the
23payments required under the preceding proviso result in
24aggregate payments into the Build Illinois Fund pursuant to
25this clause (b) for any fiscal year in excess of the greater of
26(i) the Tax Act Amount or (ii) the Annual Specified Amount for

 

 

SB2066 Enrolled- 67 -LRB102 16579 HLH 21976 b

1such fiscal year. The amounts payable into the Build Illinois
2Fund under clause (b) of the first sentence in this paragraph
3shall be payable only until such time as the aggregate amount
4on deposit under each trust indenture securing Bonds issued
5and outstanding pursuant to the Build Illinois Bond Act is
6sufficient, taking into account any future investment income,
7to fully provide, in accordance with such indenture, for the
8defeasance of or the payment of the principal of, premium, if
9any, and interest on the Bonds secured by such indenture and on
10any Bonds expected to be issued thereafter and all fees and
11costs payable with respect thereto, all as certified by the
12Director of the Bureau of the Budget (now Governor's Office of
13Management and Budget). If on the last business day of any
14month in which Bonds are outstanding pursuant to the Build
15Illinois Bond Act, the aggregate of moneys deposited in the
16Build Illinois Bond Account in the Build Illinois Fund in such
17month shall be less than the amount required to be transferred
18in such month from the Build Illinois Bond Account to the Build
19Illinois Bond Retirement and Interest Fund pursuant to Section
2013 of the Build Illinois Bond Act, an amount equal to such
21deficiency shall be immediately paid from other moneys
22received by the Department pursuant to the Tax Acts to the
23Build Illinois Fund; provided, however, that any amounts paid
24to the Build Illinois Fund in any fiscal year pursuant to this
25sentence shall be deemed to constitute payments pursuant to
26clause (b) of the first sentence of this paragraph and shall

 

 

SB2066 Enrolled- 68 -LRB102 16579 HLH 21976 b

1reduce the amount otherwise payable for such fiscal year
2pursuant to that clause (b). The moneys received by the
3Department pursuant to this Act and required to be deposited
4into the Build Illinois Fund are subject to the pledge, claim
5and charge set forth in Section 12 of the Build Illinois Bond
6Act.
7    Subject to payment of amounts into the Build Illinois Fund
8as provided in the preceding paragraph or in any amendment
9thereto hereafter enacted, the following specified monthly
10installment of the amount requested in the certificate of the
11Chairman of the Metropolitan Pier and Exposition Authority
12provided under Section 8.25f of the State Finance Act, but not
13in excess of sums designated as "Total Deposit", shall be
14deposited in the aggregate from collections under Section 9 of
15the Use Tax Act, Section 9 of the Service Use Tax Act, Section
169 of the Service Occupation Tax Act, and Section 3 of the
17Retailers' Occupation Tax Act into the McCormick Place
18Expansion Project Fund in the specified fiscal years.
19Fiscal YearTotal Deposit
201993         $0
211994 53,000,000
221995 58,000,000
231996 61,000,000
241997 64,000,000
251998 68,000,000
261999 71,000,000

 

 

SB2066 Enrolled- 69 -LRB102 16579 HLH 21976 b

12000 75,000,000
22001 80,000,000
32002 93,000,000
42003 99,000,000
52004103,000,000
62005108,000,000
72006113,000,000
82007119,000,000
92008126,000,000
102009132,000,000
112010139,000,000
122011146,000,000
132012153,000,000
142013161,000,000
152014170,000,000
162015179,000,000
172016189,000,000
182017199,000,000
192018210,000,000
202019221,000,000
212020233,000,000
222021300,000,000
232022300,000,000
242023300,000,000
252024 300,000,000
262025 300,000,000

 

 

SB2066 Enrolled- 70 -LRB102 16579 HLH 21976 b

12026 300,000,000
22027 375,000,000
32028 375,000,000
42029 375,000,000
52030 375,000,000
62031 375,000,000
72032 375,000,000
82033375,000,000
92034375,000,000
102035375,000,000
112036450,000,000
12and
13each fiscal year
14thereafter that bonds
15are outstanding under
16Section 13.2 of the
17Metropolitan Pier and
18Exposition Authority Act,
19but not after fiscal year 2060.
20    Beginning July 20, 1993 and in each month of each fiscal
21year thereafter, one-eighth of the amount requested in the
22certificate of the Chairman of the Metropolitan Pier and
23Exposition Authority for that fiscal year, less the amount
24deposited into the McCormick Place Expansion Project Fund by
25the State Treasurer in the respective month under subsection
26(g) of Section 13 of the Metropolitan Pier and Exposition

 

 

SB2066 Enrolled- 71 -LRB102 16579 HLH 21976 b

1Authority Act, plus cumulative deficiencies in the deposits
2required under this Section for previous months and years,
3shall be deposited into the McCormick Place Expansion Project
4Fund, until the full amount requested for the fiscal year, but
5not in excess of the amount specified above as "Total
6Deposit", has been deposited.
7    Subject to payment of amounts into the Capital Projects
8Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
9and the McCormick Place Expansion Project Fund pursuant to the
10preceding paragraphs or in any amendments thereto hereafter
11enacted, for aviation fuel sold on or after December 1, 2019,
12the Department shall each month deposit into the Aviation Fuel
13Sales Tax Refund Fund an amount estimated by the Department to
14be required for refunds of the 80% portion of the tax on
15aviation fuel under this Act. The Department shall only
16deposit moneys into the Aviation Fuel Sales Tax Refund Fund
17under this paragraph for so long as the revenue use
18requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
19binding on the State.
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
25Tax Increment Fund 0.27% of 80% of the net revenue realized for
26the preceding month from the 6.25% general rate on the selling

 

 

SB2066 Enrolled- 72 -LRB102 16579 HLH 21976 b

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
725-year period, the Department shall each month pay into the
8Energy Infrastructure Fund 80% of the net revenue realized
9from the 6.25% general rate on the selling price of
10Illinois-mined coal that was sold to an eligible business. For
11purposes of this paragraph, the term "eligible business" means
12a new electric generating facility certified pursuant to
13Section 605-332 of the Department of Commerce and Economic
14Opportunity Law of the Civil Administrative Code of Illinois.
15    Subject to payment of amounts into the Build Illinois
16Fund, the McCormick Place Expansion Project Fund, the Illinois
17Tax Increment Fund, and the Energy Infrastructure Fund
18pursuant to the preceding paragraphs or in any amendments to
19this Section hereafter enacted, beginning on the first day of
20the first calendar month to occur on or after August 26, 2014
21(the effective date of Public Act 98-1098), 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

 

 

SB2066 Enrolled- 73 -LRB102 16579 HLH 21976 b

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
4by the Audit Bureau of the Department under the Use Tax Act,
5the Service 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    Subject to payments of amounts into the Build Illinois
9Fund, the McCormick Place Expansion Project Fund, the Illinois
10Tax Increment Fund, the Energy Infrastructure Fund, and the
11Tax Compliance and Administration Fund as provided in this
12Section, beginning on July 1, 2018 the Department shall pay
13each month into the Downstate Public Transportation Fund the
14moneys required to be so paid under Section 2-3 of the
15Downstate Public Transportation Act.
16    Subject to successful execution and delivery of a
17public-private agreement between the public agency and private
18entity and completion of the civic build, beginning on July 1,
192023, of the remainder of the moneys received by the
20Department under the Use Tax Act, the Service Use Tax Act, the
21Service Occupation Tax Act, and this Act, the Department shall
22deposit the following specified deposits in the aggregate from
23collections under the Use Tax Act, the Service Use Tax Act, the
24Service Occupation Tax Act, and the Retailers' Occupation Tax
25Act, as required under Section 8.25g of the State Finance Act
26for distribution consistent with the Public-Private

 

 

SB2066 Enrolled- 74 -LRB102 16579 HLH 21976 b

1Partnership for Civic and Transit Infrastructure Project Act.
2The moneys received by the Department pursuant to this Act and
3required to be deposited into the Civic and Transit
4Infrastructure Fund are subject to the pledge, claim and
5charge set forth in Section 25-55 of the Public-Private
6Partnership for Civic and Transit Infrastructure Project Act.
7As used in this paragraph, "civic build", "private entity",
8"public-private agreement", and "public agency" have the
9meanings provided in Section 25-10 of the Public-Private
10Partnership for Civic and Transit Infrastructure Project Act.
11        Fiscal Year.............................Total Deposit
12        2024.....................................$200,000,000
13        2025....................................$206,000,000
14        2026....................................$212,200,000
15        2027....................................$218,500,000
16        2028....................................$225,100,000
17        2029....................................$288,700,000
18        2030....................................$298,900,000
19        2031....................................$309,300,000
20        2032....................................$320,100,000
21        2033....................................$331,200,000
22        2034....................................$341,200,000
23        2035....................................$351,400,000
24        2036....................................$361,900,000
25        2037....................................$372,800,000
26        2038....................................$384,000,000

 

 

SB2066 Enrolled- 75 -LRB102 16579 HLH 21976 b

1        2039....................................$395,500,000
2        2040....................................$407,400,000
3        2041....................................$419,600,000
4        2042....................................$432,200,000
5        2043....................................$445,100,000
6    Beginning July 1, 2021 and until July 1, 2022, subject to
7the payment of amounts into the County and Mass Transit
8District Fund, the Local Government Tax Fund, the Build
9Illinois Fund, the McCormick Place Expansion Project Fund, the
10Illinois Tax Increment Fund, the Energy Infrastructure Fund,
11and the Tax Compliance and Administration Fund as provided in
12this Section, the Department shall pay each month into the
13Road Fund the amount estimated to represent 16% of the net
14revenue realized from the taxes imposed on motor fuel and
15gasohol. Beginning July 1, 2022 and until July 1, 2023,
16subject to the payment of amounts into the County and Mass
17Transit District Fund, the Local Government Tax Fund, the
18Build Illinois Fund, the McCormick Place Expansion Project
19Fund, the Illinois Tax Increment Fund, the Energy
20Infrastructure Fund, and the Tax Compliance and Administration
21Fund as provided in this Section, the Department shall pay
22each month into the Road Fund the amount estimated to
23represent 32% of the net revenue realized from the taxes
24imposed on motor fuel and gasohol. Beginning July 1, 2023 and
25until July 1, 2024, subject to the payment of amounts into the
26County and Mass Transit District Fund, the Local Government

 

 

SB2066 Enrolled- 76 -LRB102 16579 HLH 21976 b

1Tax Fund, the Build Illinois Fund, the McCormick Place
2Expansion Project Fund, the Illinois Tax Increment Fund, the
3Energy Infrastructure Fund, and the Tax Compliance and
4Administration Fund as provided in this Section, the
5Department shall pay each month into the Road Fund the amount
6estimated to represent 48% of the net revenue realized from
7the taxes imposed on motor fuel and gasohol. Beginning July 1,
82024 and until July 1, 2025, subject to the payment of amounts
9into the County and Mass Transit District Fund, the Local
10Government Tax Fund, the Build Illinois Fund, the McCormick
11Place Expansion Project Fund, the Illinois Tax Increment Fund,
12the Energy Infrastructure Fund, and the Tax Compliance and
13Administration Fund as provided in this Section, the
14Department shall pay each month into the Road Fund the amount
15estimated to represent 64% of the net revenue realized from
16the taxes imposed on motor fuel and gasohol. Beginning on July
171, 2025, subject to the payment of amounts into the County and
18Mass Transit District Fund, the Local Government Tax Fund, the
19Build Illinois Fund, the McCormick Place Expansion Project
20Fund, the Illinois Tax Increment Fund, the Energy
21Infrastructure Fund, and the Tax Compliance and Administration
22Fund as provided in this Section, the Department shall pay
23each month into the Road Fund the amount estimated to
24represent 80% of the net revenue realized from the taxes
25imposed on motor fuel and gasohol. As used in this paragraph
26"motor fuel" has the meaning given to that term in Section 1.1

 

 

SB2066 Enrolled- 77 -LRB102 16579 HLH 21976 b

1of the Motor Fuel Tax Act, and "gasohol" has the meaning given
2to that term in Section 3-40 of the Use Tax Act.
3    Of the remainder of the moneys received by the Department
4pursuant to this Act, 75% thereof shall be paid into the State
5Treasury and 25% shall be reserved in a special account and
6used only for the transfer to the Common School Fund as part of
7the monthly transfer from the General Revenue Fund in
8accordance with Section 8a of the State Finance Act.
9    The Department may, upon separate written notice to a
10taxpayer, require the taxpayer to prepare and file with the
11Department on a form prescribed by the Department within not
12less than 60 days after receipt of the notice an annual
13information return for the tax year specified in the notice.
14Such annual return to the Department shall include a statement
15of gross receipts as shown by the retailer's last Federal
16income tax return. If the total receipts of the business as
17reported in the Federal income tax return do not agree with the
18gross receipts reported to the Department of Revenue for the
19same period, the retailer shall attach to his annual return a
20schedule showing a reconciliation of the 2 amounts and the
21reasons for the difference. The retailer's annual return to
22the Department shall also disclose the cost of goods sold by
23the retailer during the year covered by such return, opening
24and closing inventories of such goods for such year, costs of
25goods used from stock or taken from stock and given away by the
26retailer during such year, payroll information of the

 

 

SB2066 Enrolled- 78 -LRB102 16579 HLH 21976 b

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

 

 

SB2066 Enrolled- 79 -LRB102 16579 HLH 21976 b

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

 

 

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

 

 

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1business of selling tangible personal property at retail at
2the exhibition or event, or other evidence of a significant
3risk of loss of revenue to the State. The Department shall
4notify concessionaires and other sellers affected by the
5imposition of this requirement. In the absence of notification
6by the Department, the concessionaires and other sellers shall
7file their returns as otherwise required in this Section.
8(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
9100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
1015, Section 15-25, eff. 6-5-19; 101-10, Article 25, Section
1125-120, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
126-28-19; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.)
 
13    Section 10. The Leveling the Playing Field for Illinois
14Retail Act is amended by changing Sections 5-5 and 5-25 as
15follows:
 
16    (35 ILCS 185/5-5)
17    Sec. 5-5. Findings. The General Assembly finds that
18certified service providers and certified automated systems
19simplify use and occupation tax compliance for remote
20retailers, which fosters higher levels of accurate tax
21collection and remittance and generates administrative savings
22and new marginal tax revenue for both State and local taxing
23jurisdictions. By making the services of certified service
24providers and certified automated systems available to remote

 

 

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1retailers without charge, other than their retailer customer's
2retail discount, as provided in this Act, the State will
3substantially eliminate the burden on those remote retailers
4to collect and remit both State and local taxing jurisdiction
5use and occupation taxes. While providing a means for remote
6retailers to collect and remit tax on an even basis with
7Illinois retailers, this Act also protects existing local tax
8revenue streams by retaining origin sourcing for all
9transactions by retailers maintaining a physical presence in
10Illinois.
11(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
 
12    (35 ILCS 185/5-25)
13    Sec. 5-25. Certification.
14    (a) The Department shall, no later than July 1, 2020:
15        (1) establish uniform minimum standards that companies
16    wishing to be designated as a certified service provider
17    in this State must meet;
18        (2) establish uniform minimum standards that certified
19    automated systems must meet;
20        (3) establish a certification process to review the
21    systems of companies wishing to be designated as a
22    certified service provider in this State or of companies
23    wishing to use a certified automated process; this
24    certification process shall provide that companies that
25    meet all required standards and whose systems have been

 

 

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1    tested and approved by the Department for properly
2    determining the taxability of items to be sold, the
3    correct tax rate to apply to a transaction, and the
4    appropriate jurisdictions to which the tax shall be
5    remitted, shall be certified;
6        (4) enter into a contractual relationship with each
7    company that qualifies as a certified service provider or
8    that will be using a certified automated system; those
9    contracts shall, at a minimum, provide:
10            (A) that the certified service provider shall be
11        held liable for the tax imposed under this Act and the
12        Use Tax Act and all applicable local occupation taxes
13        administered by the Department if the certified
14        service provider fails to correctly remit the tax
15        after having been provided with the tax and
16        information by a remote retailer to correctly remit
17        the taxes imposed under this Act and the Use Tax Act
18        and all applicable local occupation taxes administered
19        by the Department; if the certified service provider
20        demonstrates to the satisfaction of the Department
21        that its failure to correctly remit tax on a retail
22        sale resulted from the certified service provider's
23        good faith reliance on incorrect or insufficient
24        information provided by the remote retailer, the
25        certified service provider shall be relieved of
26        liability for the tax on that retail sale; in that

 

 

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1        case, the remote retailer is liable for any resulting
2        tax due;
3            (B) the responsibilities of the certified service
4        provider and the remote retailers that contract with
5        the certified service provider or the user of a
6        certified automated system related to record keeping
7        and auditing consistent with requirements imposed
8        under the Retailers' Occupation Tax Act and the Use
9        Tax Act;
10            (C) for the protection and confidentiality of tax
11        information consistent with requirements imposed under
12        the Retailers' Occupation Tax Act and the Use Tax Act;
13            (D) that a certified service provider may claim
14        the discount provided for in Section 3 of the
15        Retailers' Occupation Tax Act for the tax dollars it
16        collects and timely remits on returns that are timely
17        filed with the Department on behalf of remote
18        retailers; remote retailers using a certified service
19        provider may not claim the discount allowed in Section
20        3 of the Retailers' Occupation Tax Act with respect to
21        those collections compensation equal to 1.75% of the
22        tax dollars collected and remitted to the State by a
23        certified service provider on a timely basis, along
24        with a return that has been timely filed, on behalf of
25        remote retailers; remote retailers using a certified
26        service provider may not claim the vendor's discount

 

 

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1        allowed under the Retailers' Occupation Tax Act or the
2        Service Occupation Tax Act; and
3            (E) that the certified service provider shall file
4        a separate return for each remote retailer with which
5        it has a Tax Remittance Agreement.
6    The provisions of this Section shall supersede the
7provisions of the Illinois Procurement Code.
8    (b) The Department may act jointly with other states to
9establish the minimum standards and process for certification
10required by paragraphs (1), (2), and (3) of subsection (a).
11    (c) When the systems of a certified service provider or
12certified automated systems are updated or upgraded, they must
13be recertified by the Department. Notification of changes
14shall be provided to the Department prior to implementation.
15Upon receipt of such notification, the Department shall review
16and test the changes to assess whether the updated system of
17the certified service provider or the updated certified
18automated system can properly determine the taxability of
19items to be sold, the correct tax rate to apply to a
20transaction, and the appropriate jurisdictions to which the
21tax shall be remitted. The Department shall recertify updated
22systems that meet these requirements. The certified service
23provider or retailer using a certified automated system shall
24be liable for any tax resulting from errors caused by use of an
25updated or upgraded system prior to recertification by the
26Department. In addition to these procedures, the Department

 

 

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1may periodically review the system of a certified service
2provider or the certified automated system used by a retailer
3to ensure that the system can properly determine the
4taxability of items to be sold, the correct tax rate to apply
5to a transaction, and the appropriate jurisdictions to which
6the tax shall be remitted.
7(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.