Full Text of SB0780 99th General Assembly
SB0780ham001 99TH GENERAL ASSEMBLY | Rep. Al Riley Filed: 5/12/2015
| | 09900SB0780ham001 | | LRB099 06575 HLH 35349 a |
|
| 1 | | AMENDMENT TO SENATE BILL 780
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 780 immediately | 3 | | below the enacting clause, by inserting the following:
| 4 | | "Section 3. The Department of Revenue Law of the
Civil | 5 | | Administrative Code of Illinois is amended by changing Section | 6 | | 2505-190 as follows:
| 7 | | (20 ILCS 2505/2505-190) (was 20 ILCS 2505/39c-4)
| 8 | | Sec. 2505-190. Tax Compliance and Administration Fund. | 9 | | (a) Amounts
deposited into the Tax Compliance and
| 10 | | Administration Fund, a special fund in the State treasury that | 11 | | is hereby
created, must be appropriated to the Department to
| 12 | | reimburse the Department for its costs of collecting, | 13 | | administering, and
enforcing the tax laws that provide for | 14 | | deposits into the Fund. Moneys in the Fund shall consist of | 15 | | deposits provided for in tax laws, reimbursements, or other | 16 | | payments received from units of local government for |
| | | 09900SB0780ham001 | - 2 - | LRB099 06575 HLH 35349 a |
|
| 1 | | administering a local tax or fee on behalf of the unit of local | 2 | | government in accordance with the Local Tax Collection Act, or | 3 | | other payments designated for deposit into the Fund.
| 4 | | (b) As soon as possible after July 1, 2015, and as soon as | 5 | | possible after each July 1 thereafter, the Director of the | 6 | | Department of Revenue shall certify the balance in the Tax | 7 | | Compliance and Administration Fund as of July 1, less any | 8 | | amounts obligated, and the State Comptroller shall order | 9 | | transferred and the State Treasurer shall transfer from the Tax | 10 | | Compliance and Administration Fund to the General Revenue Fund | 11 | | the amount certified that exceeds the Tax Compliance and | 12 | | Administration Fund annual amount $2,500,000 . As used in this | 13 | | Section, "Tax Compliance and Administration Fund annual | 14 | | amount" means: | 15 | | (1) for the July 1, 2015 transfer, $2,500,000; and | 16 | | (2) for transfers in subsequent years, the previous | 17 | | year's Tax Compliance and Administration Fund annual | 18 | | amount increased by the percentage increase in the Consumer | 19 | | Price Index during the 12-month calendar year preceding | 20 | | July 1 of the current year. | 21 | | For purposes of this Section "Consumer Price Index" means | 22 | | the Consumer Price Index for All Urban Consumers for all items | 23 | | published by the United States Department of Labor. | 24 | | (Source: P.A. 98-1098, eff. 8-26-14.)
| 25 | | Section 4. The Retailers' Occupation Tax Act is amended by |
| | | 09900SB0780ham001 | - 3 - | LRB099 06575 HLH 35349 a |
|
| 1 | | changing Section 11 as follows:
| 2 | | (35 ILCS 120/11) (from Ch. 120, par. 450)
| 3 | | Sec. 11. All information received by the Department from | 4 | | returns filed
under this Act, or from any investigation | 5 | | conducted under this Act, shall
be confidential, except for | 6 | | official purposes, and any person who divulges
any such | 7 | | information in any manner, except in accordance with a proper
| 8 | | judicial order or as otherwise provided by law, shall be guilty | 9 | | of a Class
B misdemeanor with a fine not to exceed $7,500.
| 10 | | Nothing in this Act prevents the Director of Revenue from | 11 | | publishing or
making available to the public the names and | 12 | | addresses of persons filing
returns under this Act, or | 13 | | reasonable statistics concerning the operation
of the tax by | 14 | | grouping the contents of returns so the information in any
| 15 | | individual return is not disclosed.
| 16 | | Nothing in this Act prevents the Director of Revenue from | 17 | | divulging to
the United States Government or the government of | 18 | | any other state, or any
officer or agency thereof, for | 19 | | exclusively official purposes, information
received by the | 20 | | Department in administering this Act, provided that such
other | 21 | | governmental agency agrees to divulge requested tax | 22 | | information to
the Department.
| 23 | | The Department's furnishing of information derived from a | 24 | | taxpayer's
return or from an investigation conducted under this | 25 | | Act to the surety on a
taxpayer's bond that has been furnished |
| | | 09900SB0780ham001 | - 4 - | LRB099 06575 HLH 35349 a |
|
| 1 | | to the Department under this Act,
either to provide notice to | 2 | | such surety of its potential liability under
the bond or, in | 3 | | order to support the Department's demand for payment from
such | 4 | | surety under the bond, is an official purpose within the | 5 | | meaning of
this Section.
| 6 | | The furnishing upon request of information obtained by the | 7 | | Department
from returns filed under this Act or investigations | 8 | | conducted under this
Act to the Illinois Liquor Control | 9 | | Commission for official use is deemed to
be an official purpose | 10 | | within the meaning of this Section.
| 11 | | Notice to a surety of potential liability shall not be | 12 | | given unless the
taxpayer has first been notified, not less | 13 | | than 10 days prior thereto, of
the Department's intent to so | 14 | | notify the surety.
| 15 | | The furnishing upon request of the Auditor General, or his | 16 | | authorized agents,
for official use, of returns filed and | 17 | | information related thereto under
this Act is deemed to be an | 18 | | official purpose within the meaning of this
Section.
| 19 | | Where an appeal or a protest has been filed on behalf of a | 20 | | taxpayer, the
furnishing upon request of the attorney for the | 21 | | taxpayer of returns filed
by the taxpayer and information | 22 | | related thereto under this Act is deemed
to be an official | 23 | | purpose within the meaning of this Section.
| 24 | | The furnishing of financial information to a municipality | 25 | | or county , upon request of the chief executive officer Chief
| 26 | | Executive thereof, is an official purpose within the meaning of |
| | | 09900SB0780ham001 | - 5 - | LRB099 06575 HLH 35349 a |
|
| 1 | | this Section,
provided the municipality or county agrees in
| 2 | | writing to the requirements of this Section. Information | 3 | | provided to municipalities and counties under this paragraph | 4 | | shall be limited to: (1) the business name; (2) the business | 5 | | address; (3) the standard classification number assigned to the | 6 | | business; (4) net revenue distributed to the requesting | 7 | | municipality or county that is directly related to the | 8 | | requesting municipality's or county's local share of the | 9 | | proceeds under the Use Tax Act, the Service Use Tax Act, the | 10 | | Service Occupation Tax Act, and the Retailers' Occupation Tax | 11 | | Act distributed from the Local Government Tax Fund , and, if | 12 | | applicable, any locally imposed retailers' occupation tax or | 13 | | service occupation tax; and (5) (4) a listing of all businesses | 14 | | within the requesting municipality or county by account | 15 | | identification number and address. On and after July 1, 2015, | 16 | | the furnishing of financial information to municipalities and | 17 | | counties under this paragraph may be by electronic means.
| 18 | | Information so provided shall be subject to all | 19 | | confidentiality provisions
of this Section. The written | 20 | | agreement shall provide for reciprocity,
limitations on | 21 | | access, disclosure, and procedures for requesting information. | 22 | | Only the chief executive officer of the municipality or county | 23 | | may initiate the written agreement with the Department. The | 24 | | chief executive officer of the municipality or county shall | 25 | | provide the Department with a list of names and official titles | 26 | | of municipal or county personnel, as appropriate, designated by |
| | | 09900SB0780ham001 | - 6 - | LRB099 06575 HLH 35349 a |
|
| 1 | | him or her as persons exclusively authorized to request return | 2 | | information, view return information, or receive related | 3 | | information on his or her behalf. This list shall be restricted | 4 | | to municipal or county personnel, as appropriate, who are | 5 | | directly involved in the financial operations of the | 6 | | municipality or county, and the financial information provided | 7 | | by the Department shall not be viewed by or shared with anyone | 8 | | who is not on the list. The written agreement may be canceled | 9 | | by either the Department or the chief executive officer of the | 10 | | municipality or county at any time and will be canceled in the | 11 | | event of any unauthorized use or disclosure of State tax return | 12 | | information obtained pursuant to the written agreement or | 13 | | failure to abide by the procedures set forth in the agreement | 14 | | by the Department for safeguarding the confidentiality of such | 15 | | return information.
| 16 | | The Department may make available to the Board of Trustees | 17 | | of any Metro
East Mass Transit District information contained | 18 | | on transaction reporting
returns required to be filed under | 19 | | Section 3 of this Act that report sales made
within the | 20 | | boundary of the taxing authority of that Metro East Mass | 21 | | Transit
District, as provided in Section 5.01 of the Local Mass | 22 | | Transit District Act.
The disclosure shall be made pursuant to | 23 | | a written agreement between the
Department and the Board of | 24 | | Trustees of a Metro East Mass Transit District,
which is an | 25 | | official purpose within the meaning of this Section. The | 26 | | written
agreement between the Department and the Board of |
| | | 09900SB0780ham001 | - 7 - | LRB099 06575 HLH 35349 a |
|
| 1 | | Trustees of a Metro East
Mass Transit District shall provide | 2 | | for reciprocity, limitations on access,
disclosure, and | 3 | | procedures for requesting information. Information so provided
| 4 | | shall be subject to all confidentiality provisions of this | 5 | | Section.
| 6 | | The Director may make available to any State agency, | 7 | | including the
Illinois Supreme Court, which licenses persons to | 8 | | engage in any occupation,
information that a person licensed by | 9 | | such agency has failed to file
returns under this Act or pay | 10 | | the tax, penalty and interest shown therein,
or has failed to | 11 | | pay any final assessment of tax, penalty or interest due
under | 12 | | this Act.
The Director may make available to any State agency, | 13 | | including the Illinois
Supreme
Court, information regarding | 14 | | whether a bidder, contractor, or an affiliate of a
bidder or
| 15 | | contractor has failed to collect and remit Illinois Use tax on | 16 | | sales into
Illinois, or any tax
under this Act or pay the tax, | 17 | | penalty, and interest shown therein, or has
failed to pay any
| 18 | | final assessment of tax, penalty, or interest due under this | 19 | | Act, for the
limited purpose of
enforcing bidder and contractor | 20 | | certifications. The Director may make available
to units
of | 21 | | local government and school districts that require bidder and | 22 | | contractor
certifications,
as set forth in Sections 50-11 and | 23 | | 50-12 of the Illinois Procurement Code,
information
regarding | 24 | | whether a bidder, contractor, or an affiliate of a bidder or
| 25 | | contractor has failed
to collect and remit Illinois Use tax on | 26 | | sales into Illinois, file returns under
this Act, or
pay the |
| | | 09900SB0780ham001 | - 8 - | LRB099 06575 HLH 35349 a |
|
| 1 | | tax, penalty, and interest shown therein, or has failed to pay | 2 | | any final
assessment
of tax, penalty, or interest due under | 3 | | this Act, for the limited purpose of
enforcing bidder
and | 4 | | contractor certifications. For purposes of this Section, the | 5 | | term
"affiliate" means any
entity that (1) directly, | 6 | | indirectly, or constructively controls another
entity,
(2) is | 7 | | directly,
indirectly, or constructively controlled by another | 8 | | entity, or (3) is subject
to
the control of
a common entity. | 9 | | For purposes of this Section, an entity controls another
entity
| 10 | | if it owns,
directly or individually, more than 10% of the | 11 | | voting securities of that
entity.
As used in
this Section, the | 12 | | term "voting security" means a security that (1) confers upon
| 13 | | the holder
the right to vote for the election of members of the | 14 | | board of directors or
similar governing
body of the business or | 15 | | (2) is convertible into, or entitles the holder to
receive upon | 16 | | its
exercise, a security that confers such a right to vote. A | 17 | | general partnership
interest is a
voting security.
| 18 | | The Director may make available to any State agency, | 19 | | including the
Illinois
Supreme Court, units of local | 20 | | government, and school districts, information
regarding
| 21 | | whether a bidder or contractor is an affiliate of a person who | 22 | | is not
collecting
and
remitting Illinois Use taxes for the | 23 | | limited purpose of enforcing bidder and
contractor
| 24 | | certifications.
| 25 | | The Director may also make available to the Secretary of | 26 | | State
information that a limited liability company, which has |
| | | 09900SB0780ham001 | - 9 - | LRB099 06575 HLH 35349 a |
|
| 1 | | filed articles of
organization with the Secretary of State, or | 2 | | corporation which has been
issued a certificate of | 3 | | incorporation by the Secretary of State has failed to
file | 4 | | returns under this Act or pay the tax, penalty and interest | 5 | | shown therein,
or has failed to pay any final assessment of | 6 | | tax, penalty or interest due under
this Act. An assessment is | 7 | | final when all proceedings in court for review of
such | 8 | | assessment have terminated or the time for the taking thereof | 9 | | has expired
without such proceedings being instituted.
| 10 | | The Director shall make available for public inspection in | 11 | | the Department's
principal office and for publication, at cost, | 12 | | administrative decisions issued
on or after January 1, 1995. | 13 | | These decisions are to be made available in a
manner so that | 14 | | the following taxpayer information is not disclosed:
| 15 | | (1) The names, addresses, and identification numbers | 16 | | of the taxpayer,
related entities, and employees.
| 17 | | (2) At the sole discretion of the Director, trade | 18 | | secrets
or other confidential information identified as | 19 | | such by the taxpayer, no later
than 30 days after receipt | 20 | | of an administrative decision, by such means as the
| 21 | | Department shall provide by rule.
| 22 | | The Director shall determine the appropriate extent of the | 23 | | deletions allowed
in paragraph (2). In the event the taxpayer | 24 | | does not submit deletions, the
Director shall make only the | 25 | | deletions specified in paragraph (1).
| 26 | | The Director shall make available for public inspection and |
| | | 09900SB0780ham001 | - 10 - | LRB099 06575 HLH 35349 a |
|
| 1 | | publication an
administrative decision within 180 days after | 2 | | the issuance of the
administrative decision. The term | 3 | | "administrative decision" has the same
meaning as defined in | 4 | | Section 3-101 of Article III of the Code of Civil
Procedure. | 5 | | Costs collected under this Section shall be paid into the Tax
| 6 | | Compliance and Administration Fund.
| 7 | | Nothing contained in this Act shall prevent the Director | 8 | | from divulging
information to any person pursuant to a request | 9 | | or authorization made by the
taxpayer or by an authorized | 10 | | representative of the taxpayer.
| 11 | | (Source: P.A. 98-1058, eff. 1-1-15 .)"; and
| 12 | | by inserting Section 10 in its proper numeric sequence as | 13 | | follows: | 14 | | "Section 10. The Local Tax Collection Act is amended by | 15 | | changing Section 1 as follows:
| 16 | | (35 ILCS 720/1) (from Ch. 120, par. 1901)
| 17 | | Sec. 1.
(a) The Department of Revenue and any unit of local | 18 | | government county or municipality
may agree to the Department's | 19 | | collecting, and transmitting back to the unit of local | 20 | | government such county
or municipality , any tax lawfully | 21 | | imposed by that unit of local government county or | 22 | | municipality ,
the subject of which is similar to that of a tax | 23 | | imposed by the State and
collected by the Department of |
| | | 09900SB0780ham001 | - 11 - | LRB099 06575 HLH 35349 a |
|
| 1 | | Revenue, unless the General Assembly has
specifically required | 2 | | a different method of collection for such tax.
However, the | 3 | | Department may not enter into a contract with any unit of local | 4 | | government municipality
or county pursuant to this Act for the | 5 | | collection of any tax based on the
sale or use of tangible | 6 | | personal property generally, not including taxes
based only on | 7 | | the sale or use of specifically limited kinds of tangible
| 8 | | personal property, unless the
municipal or county ordinance | 9 | | adopted by the unit of local government imposes a sales or use | 10 | | tax which is
substantively identical to and which contains the | 11 | | same exemptions as the
taxes imposed by the unit of local | 12 | | government's municipalities' or counties' ordinances | 13 | | authorized by
the Home Rule or Non-Home Rule Municipal or | 14 | | County Retailers' Occupation Tax Act , the Home Rule or Non-Home | 15 | | Rule or the Municipal or
County Use Tax , or any other | 16 | | Retailers' Occupation Tax Act or law that is administered by | 17 | | the Department of Revenue, as interpreted by the Department | 18 | | through its regulations as
those Acts and as those regulations | 19 | | may from time to time be amended.
| 20 | | (b) Regarding the collection of a tax pursuant to this | 21 | | Section, the
Department and any person subject to a tax | 22 | | collected by the Department
pursuant to this Section shall, as | 23 | | much as practicable, have the same
rights, remedies, | 24 | | privileges, immunities, powers and duties, and be subject
to | 25 | | the same conditions, restrictions, limitations,
penalties, | 26 | | definitions of terms and procedures, as those set forth in the
|
| | | 09900SB0780ham001 | - 12 - | LRB099 06575 HLH 35349 a |
|
| 1 | | Act imposing the State tax, the subject of which is similar to | 2 | | the tax being
collected by the Department pursuant to this | 3 | | Section. The Department and
unit of local government county or | 4 | | municipality shall specifically agree in writing to such | 5 | | rights,
remedies, privileges, immunities, powers, duties, | 6 | | conditions, restrictions,
limitations, penalties, definitions | 7 | | of terms and procedures, as well as any
other terms deemed | 8 | | necessary or advisable. All terms so agreed upon shall
be | 9 | | incorporated into an ordinance of such unit of local government | 10 | | county or municipality ,
and the Department shall not collect | 11 | | the tax pursuant to this Section until
such ordinance takes | 12 | | effect.
| 13 | | (c) (1) The Department shall forthwith pay over to the | 14 | | State Treasurer, ex
officio, as trustee, all taxes and | 15 | | penalties collected hereunder. On or
before the 25th day of | 16 | | each calendar month, the Department shall prepare
and certify | 17 | | to the Comptroller the disbursement of stated sums of money to
| 18 | | named units of local government cities and counties from which | 19 | | retailers or other taxpayers have paid taxes or penalties
| 20 | | hereunder to the Department during the second preceding | 21 | | calendar month.
| 22 | | (i) The an amount to be paid to each unit of local | 23 | | government county and municipality, which shall equal
the taxes | 24 | | and penalties collected by the Department for the unit of local | 25 | | government such county or
municipality pursuant to this Section | 26 | | during the second preceding calendar month (not including |
| | | 09900SB0780ham001 | - 13 - | LRB099 06575 HLH 35349 a |
|
| 1 | | credit memoranda), plus an amount the Department determines is | 2 | | necessary to offset any amounts which were erroneously paid to | 3 | | a different taxing body, and not including (i) an amount equal | 4 | | to the amount of refunds made during the second preceding | 5 | | calendar month by the Department of behalf of such county or | 6 | | municipality and (ii) any amount which the Department | 7 | | determines is necessary to offset any amounts which are payable | 8 | | to a different taxing body but were erroneously paid to the | 9 | | municipality or county ,
less 2% of the balance, or any greater | 10 | | amount of the balance as provided in the agreement between the | 11 | | Department and the unit of local government required under this | 12 | | Section, which sum shall be retained by the State Treasurer. | 13 | | total amount of taxes and penalties collected by the Department
| 14 | | for such county or municipality pursuant to this Section or the | 15 | | actual cost
of collection of such taxes and penalties | 16 | | determined pursuant to the
agreement described in subsection | 17 | | (b), whichever is less, which shall be
retained by the State; | 18 | | and
| 19 | | (ii) With respect to the total amount to be retained by the | 20 | | State Treasurer pursuant to
subparagraph (i), the Department, | 21 | | at the time of each monthly disbursement to the units of local | 22 | | government, shall prepare and certify to the Comptroller the | 23 | | amount so retained by the State Treasurer, which shall be | 24 | | transferred such amount to be deposited into the Tax Compliance | 25 | | and Administration General Revenue Fund
of the State treasury | 26 | | and used by the Department, subject to appropriation, to cover |
| | | 09900SB0780ham001 | - 14 - | LRB099 06575 HLH 35349 a |
|
| 1 | | the costs incurred by the
Department in collecting such taxes | 2 | | and penalties.
| 3 | | (2) Within 10 7 days after receiving the certifications | 4 | | described in paragraph
(1), the Comptroller shall issue orders | 5 | | for payment of the amounts specified
in subparagraph (i) of | 6 | | paragraph (1).
| 7 | | (d) Any home rule unit of local government which imposes a | 8 | | tax
collected by the Department pursuant to this Section | 9 | | substantially similar to a State imposed tax, or which imposes | 10 | | a tax which
is intended to be collected from a retail purchaser | 11 | | of goods or services at
the same time a similar State tax is | 12 | | also collected, must file a certified copy of
the ordinance | 13 | | imposing the tax with the Department within 10 days after
its | 14 | | passage. Beginning on the effective date of this amendatory Act | 15 | | of the 99th General Assembly, an ordinance or resolution | 16 | | imposing or discontinuing a tax collected by the Department | 17 | | under this Section or effecting a change in the rate thereof | 18 | | shall either (i) be adopted and a certified copy thereof filed | 19 | | with the Department on or before the first day of April, | 20 | | whereupon the
Department shall proceed to administer and | 21 | | enforce the tax imposition, discontinuance, or rate change as | 22 | | of the first day of July next following the adoption and | 23 | | filing; or (ii) be adopted and certified copy thereof filed | 24 | | with the Department on or before the first day of October, | 25 | | whereupon the Department shall proceed to administer and | 26 | | enforce the tax imposition, discontinuance, or rate change as |
| | | 09900SB0780ham001 | - 15 - | LRB099 06575 HLH 35349 a |
|
| 1 | | of the first day of January next following the adoption and | 2 | | filing. No such ordinance shall become effective until it is so
| 3 | | filed. Any home rule unit of local government which has enacted | 4 | | such an
ordinance prior to the effective date of this Act shall | 5 | | file a copy of such
ordinance with the Department within 90 | 6 | | days after the effective date of this Act.
| 7 | | (e) It is declared to be the law of this State, pursuant to | 8 | | paragraph
(g) of Section 6 of Article VII of the Illinois | 9 | | Constitution, that this
amendatory Act of 1988 is a denial of | 10 | | the power of a home rule unit to fail
to comply with the | 11 | | requirements of paragraphs (d) and (e) of this Section.
| 12 | | (Source: P.A. 85-1215.)".
|
|