Illinois General Assembly - Full Text of HB4494
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Full Text of HB4494  100th General Assembly

HB4494 100TH GENERAL ASSEMBLY

  
  

 


 
100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4494

 

Introduced , by Rep. Luis Arroyo

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/6z-18  from Ch. 127, par. 142z-18
30 ILCS 105/6z-20  from Ch. 127, par. 142z-20
35 ILCS 105/3-6
35 ILCS 105/3-10
35 ILCS 105/9  from Ch. 120, par. 439.9
35 ILCS 120/2-8
35 ILCS 120/2-10
35 ILCS 120/3  from Ch. 120, par. 442

    Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, from August 5, 2018 through August 11, 2018, the tax imposed under the Acts on clothing and school supplies shall be at the rate of 1.25% (instead of 6.25%). Makes changes concerning the distribution of proceeds from those sales. Makes corresponding changes in the State Finance Act. Effective immediately.


LRB100 13618 HLH 28242 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4494LRB100 13618 HLH 28242 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by changing
5Sections 6z-18 and 6z-20 as follows:
 
6    (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
7    Sec. 6z-18. A portion of the money paid into the Local
8Government Tax Fund from sales of food for human consumption
9which is to be consumed off the premises where it is sold
10(other than alcoholic beverages, soft drinks and food which has
11been prepared for immediate consumption) and prescription and
12nonprescription medicines, drugs, medical appliances and
13insulin, urine testing materials, syringes and needles used by
14diabetics, which occurred in municipalities, shall be
15distributed to each municipality based upon the sales which
16occurred in that municipality. The remainder shall be
17distributed to each county based upon the sales which occurred
18in the unincorporated area of that county.
19    A portion of the money paid into the Local Government Tax
20Fund from the 6.25% general use tax rate on the selling price
21of tangible personal property which is purchased outside
22Illinois at retail from a retailer and which is titled or
23registered by any agency of this State's government shall be

 

 

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1distributed to municipalities as provided in this paragraph.
2Each municipality shall receive the amount attributable to
3sales for which Illinois addresses for titling or registration
4purposes are given as being in such municipality. The remainder
5of the money paid into the Local Government Tax Fund from such
6sales shall be distributed to counties. Each county shall
7receive the amount attributable to sales for which Illinois
8addresses for titling or registration purposes are given as
9being located in the unincorporated area of such county.
10    A portion of the money paid into the Local Government Tax
11Fund from the 6.25% general rate (and, beginning July 1, 2000
12and through December 31, 2000, the 1.25% rate on motor fuel and
13gasohol, and from beginning on August 6, 2010 through August
1415, 2010, the 1.25% rate on sales tax holiday items, and from
15August 5, 2018 through August 11, 2018, the 1.25% rate on sales
16tax holiday items) on sales subject to taxation under the
17Retailers' Occupation Tax Act and the Service Occupation Tax
18Act, which occurred in municipalities, shall be distributed to
19each municipality, based upon the sales which occurred in that
20municipality. The remainder shall be distributed to each
21county, based upon the sales which occurred in the
22unincorporated area of such county.
23    For the purpose of determining allocation to the local
24government unit, a retail sale by a producer of coal or other
25mineral mined in Illinois is a sale at retail at the place
26where the coal or other mineral mined in Illinois is extracted

 

 

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1from the earth. This paragraph does not apply to coal or other
2mineral when it is delivered or shipped by the seller to the
3purchaser at a point outside Illinois so that the sale is
4exempt under the United States Constitution as a sale in
5interstate or foreign commerce.
6    Whenever the Department determines that a refund of money
7paid into the Local Government Tax Fund should be made to a
8claimant instead of issuing a credit memorandum, the Department
9shall notify the State Comptroller, who shall cause the order
10to be drawn for the amount specified, and to the person named,
11in such notification from the Department. Such refund shall be
12paid by the State Treasurer out of the Local Government Tax
13Fund.
14    As soon as possible after the first day of each month,
15beginning January 1, 2011, upon certification of the Department
16of Revenue, the Comptroller shall order transferred, and the
17Treasurer shall transfer, to the STAR Bonds Revenue Fund the
18local sales tax increment, as defined in the Innovation
19Development and Economy Act, collected during the second
20preceding calendar month for sales within a STAR bond district
21and deposited into the Local Government Tax Fund, less 3% of
22that amount, which shall be transferred into the Tax Compliance
23and Administration Fund and shall be used by the Department,
24subject to appropriation, to cover the costs of the Department
25in administering the Innovation Development and Economy Act.
26    After the monthly transfer to the STAR Bonds Revenue Fund,

 

 

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1on or before the 25th day of each calendar month, the
2Department shall prepare and certify to the Comptroller the
3disbursement of stated sums of money to named municipalities
4and counties, the municipalities and counties to be those
5entitled to distribution of taxes or penalties paid to the
6Department during the second preceding calendar month. The
7amount to be paid to each municipality or county shall be the
8amount (not including credit memoranda) collected during the
9second preceding calendar month by the Department and paid into
10the Local Government Tax Fund, plus an amount the Department
11determines is necessary to offset any amounts which were
12erroneously paid to a different taxing body, and not including
13an amount equal to the amount of refunds made during the second
14preceding calendar month by the Department, and not including
15any amount which the Department determines is necessary to
16offset any amounts which are payable to a different taxing body
17but were erroneously paid to the municipality or county, and
18not including any amounts that are transferred to the STAR
19Bonds Revenue Fund. Within 10 days after receipt, by the
20Comptroller, of the disbursement certification to the
21municipalities and counties, provided for in this Section to be
22given to the Comptroller by the Department, the Comptroller
23shall cause the orders to be drawn for the respective amounts
24in accordance with the directions contained in such
25certification.
26    When certifying the amount of monthly disbursement to a

 

 

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1municipality or county under this Section, the Department shall
2increase or decrease that amount by an amount necessary to
3offset any misallocation of previous disbursements. The offset
4amount shall be the amount erroneously disbursed within the 6
5months preceding the time a misallocation is discovered.
6    The provisions directing the distributions from the
7special fund in the State Treasury provided for in this Section
8shall constitute an irrevocable and continuing appropriation
9of all amounts as provided herein. The State Treasurer and
10State Comptroller are hereby authorized to make distributions
11as provided in this Section.
12    In construing any development, redevelopment, annexation,
13preannexation or other lawful agreement in effect prior to
14September 1, 1990, which describes or refers to receipts from a
15county or municipal retailers' occupation tax, use tax or
16service occupation tax which now cannot be imposed, such
17description or reference shall be deemed to include the
18replacement revenue for such abolished taxes, distributed from
19the Local Government Tax Fund.
20    As soon as possible after the effective date of this
21amendatory Act of the 98th General Assembly, the State
22Comptroller shall order and the State Treasurer shall transfer
23$6,600,000 from the Local Government Tax Fund to the Illinois
24State Medical Disciplinary Fund.
25(Source: P.A. 97-333, eff. 8-12-11; 98-3, eff. 3-8-13.)
 

 

 

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1    (30 ILCS 105/6z-20)  (from Ch. 127, par. 142z-20)
2    Sec. 6z-20. County and Mass Transit District Fund. Of the
3money received from the 6.25% general rate (and, beginning July
41, 2000 and through December 31, 2000, the 1.25% rate on motor
5fuel and gasohol, and from beginning on August 6, 2010 through
6August 15, 2010, the 1.25% rate on sales tax holiday items, and
7from August 5, 2018 through August 11, 2018, the 1.25% rate on
8sales tax holiday items) on sales subject to taxation under the
9Retailers' Occupation Tax Act and Service Occupation Tax Act
10and paid into the County and Mass Transit District Fund,
11distribution to the Regional Transportation Authority tax
12fund, created pursuant to Section 4.03 of the Regional
13Transportation Authority Act, for deposit therein shall be made
14based upon the retail sales occurring in a county having more
15than 3,000,000 inhabitants. The remainder shall be distributed
16to each county having 3,000,000 or fewer inhabitants based upon
17the retail sales occurring in each such county.
18    For the purpose of determining allocation to the local
19government unit, a retail sale by a producer of coal or other
20mineral mined in Illinois is a sale at retail at the place
21where the coal or other mineral mined in Illinois is extracted
22from the earth. This paragraph does not apply to coal or other
23mineral when it is delivered or shipped by the seller to the
24purchaser at a point outside Illinois so that the sale is
25exempt under the United States Constitution as a sale in
26interstate or foreign commerce.

 

 

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1    Of the money received from the 6.25% general use tax rate
2on tangible personal property which is purchased outside
3Illinois at retail from a retailer and which is titled or
4registered by any agency of this State's government and paid
5into the County and Mass Transit District Fund, the amount for
6which Illinois addresses for titling or registration purposes
7are given as being in each county having more than 3,000,000
8inhabitants shall be distributed into the Regional
9Transportation Authority tax fund, created pursuant to Section
104.03 of the Regional Transportation Authority Act. The
11remainder of the money paid from such sales shall be
12distributed to each county based on sales for which Illinois
13addresses for titling or registration purposes are given as
14being located in the county. Any money paid into the Regional
15Transportation Authority Occupation and Use Tax Replacement
16Fund from the County and Mass Transit District Fund prior to
17January 14, 1991, which has not been paid to the Authority
18prior to that date, shall be transferred to the Regional
19Transportation Authority tax fund.
20    Whenever the Department determines that a refund of money
21paid into the County and Mass Transit District Fund should be
22made to a claimant instead of issuing a credit memorandum, the
23Department shall notify the State Comptroller, who shall cause
24the order to be drawn for the amount specified, and to the
25person named, in such notification from the Department. Such
26refund shall be paid by the State Treasurer out of the County

 

 

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1and Mass Transit District Fund.
2    As soon as possible after the first day of each month,
3beginning January 1, 2011, upon certification of the Department
4of Revenue, the Comptroller shall order transferred, and the
5Treasurer shall transfer, to the STAR Bonds Revenue Fund the
6local sales tax increment, as defined in the Innovation
7Development and Economy Act, collected during the second
8preceding calendar month for sales within a STAR bond district
9and deposited into the County and Mass Transit District Fund,
10less 3% of that amount, which shall be transferred into the Tax
11Compliance and Administration Fund and shall be used by the
12Department, subject to appropriation, to cover the costs of the
13Department in administering the Innovation Development and
14Economy Act.
15    After the monthly transfer to the STAR Bonds Revenue Fund,
16on or before the 25th day of each calendar month, the
17Department shall prepare and certify to the Comptroller the
18disbursement of stated sums of money to the Regional
19Transportation Authority and to named counties, the counties to
20be those entitled to distribution, as hereinabove provided, of
21taxes or penalties paid to the Department during the second
22preceding calendar month. The amount to be paid to the Regional
23Transportation Authority and each county having 3,000,000 or
24fewer inhabitants shall be the amount (not including credit
25memoranda) collected during the second preceding calendar
26month by the Department and paid into the County and Mass

 

 

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1Transit District Fund, plus an amount the Department determines
2is necessary to offset any amounts which were erroneously paid
3to a different taxing body, and not including an amount equal
4to the amount of refunds made during the second preceding
5calendar month by the Department, and not including any amount
6which the Department determines is necessary to offset any
7amounts which were payable to a different taxing body but were
8erroneously paid to the Regional Transportation Authority or
9county, and not including any amounts that are transferred to
10the STAR Bonds Revenue Fund, less 2% of the amount to be paid
11to the Regional Transportation Authority, which shall be
12transferred into the Tax Compliance and Administration Fund.
13The Department, at the time of each monthly disbursement to the
14Regional Transportation Authority, shall prepare and certify
15to the State Comptroller the amount to be transferred into the
16Tax Compliance and Administration Fund under this Section.
17Within 10 days after receipt, by the Comptroller, of the
18disbursement certification to the Regional Transportation
19Authority, counties, and the Tax Compliance and Administration
20Fund provided for in this Section to be given to the
21Comptroller by the Department, the Comptroller shall cause the
22orders to be drawn for the respective amounts in accordance
23with the directions contained in such certification.
24    When certifying the amount of a monthly disbursement to the
25Regional Transportation Authority or to a county under this
26Section, the Department shall increase or decrease that amount

 

 

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1by an amount necessary to offset any misallocation of previous
2disbursements. The offset amount shall be the amount
3erroneously disbursed within the 6 months preceding the time a
4misallocation is discovered.
5    The provisions directing the distributions from the
6special fund in the State Treasury provided for in this Section
7and from the Regional Transportation Authority tax fund created
8by Section 4.03 of the Regional Transportation Authority Act
9shall constitute an irrevocable and continuing appropriation
10of all amounts as provided herein. The State Treasurer and
11State Comptroller are hereby authorized to make distributions
12as provided in this Section.
13    In construing any development, redevelopment, annexation,
14preannexation or other lawful agreement in effect prior to
15September 1, 1990, which describes or refers to receipts from a
16county or municipal retailers' occupation tax, use tax or
17service occupation tax which now cannot be imposed, such
18description or reference shall be deemed to include the
19replacement revenue for such abolished taxes, distributed from
20the County and Mass Transit District Fund or Local Government
21Distributive Fund, as the case may be.
22(Source: P.A. 100-23, eff. 7-6-17.)
 
23    Section 10. The Use Tax Act is amended by changing Sections
243-6, 3-10, and 9 as follows:
 

 

 

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1    (35 ILCS 105/3-6)
2    Sec. 3-6. Sales tax holiday items.
3    (a) The tangible personal property described in this
4subsection qualifies for the 1.25% reduced rate of tax during
5for the period set forth in Section 3-10 of this Act
6(hereinafter referred to as the Sales Tax Holiday Period). The
7reduced rate on these items shall be administered under the
8provisions of subsection (b) of this Section. The following
9items are subject to the reduced rate:
10        (1) Clothing items that each have a retail selling
11    price of less than $100.
12        "Clothing" means, unless otherwise specified in this
13    Section, all human wearing apparel suitable for general
14    use. "Clothing" does not include clothing accessories,
15    protective equipment, or sport or recreational equipment.
16    "Clothing" includes, but is not limited to: household and
17    shop aprons; athletic supporters; bathing suits and caps;
18    belts and suspenders; boots; coats and jackets; ear muffs;
19    footlets; gloves and mittens for general use; hats and
20    caps; hosiery; insoles for shoes; lab coats; neckties;
21    overshoes; pantyhose; rainwear; rubber pants; sandals;
22    scarves; shoes and shoelaces; slippers; sneakers; socks
23    and stockings; steel-toed shoes; underwear; and school
24    uniforms.
25        "Clothing accessories" means, but is not limited to:
26    briefcases; cosmetics; hair notions, including, but not

 

 

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1    limited to barrettes, hair bows, and hair nets; handbags;
2    handkerchiefs; jewelry; non-prescription sunglasses;
3    umbrellas; wallets; watches; and wigs and hair pieces.
4        "Protective equipment" means, but is not limited to:
5    breathing masks; clean room apparel and equipment; ear and
6    hearing protectors; face shields; hard hats; helmets;
7    paint or dust respirators; protective gloves; safety
8    glasses and goggles; safety belts; tool belts; and welder's
9    gloves and masks.
10        "Sport or recreational equipment" means, but is not
11    limited to: ballet and tap shoes; cleated or spiked
12    athletic shoes; gloves, including, but not limited to,
13    baseball, bowling, boxing, hockey, and golf gloves;
14    goggles; hand and elbow guards; life preservers and vests;
15    mouth guards; roller and ice skates; shin guards; shoulder
16    pads; ski boots; waders; and wetsuits and fins.
17        (2) School supplies. "School supplies" means, unless
18    otherwise specified in this Section, items used by a
19    student in a course of study. The purchase of school
20    supplies for use by persons other than students for use in
21    a course of study are not eligible for the reduced rate of
22    tax. "School supplies" do not include school art supplies;
23    school instructional materials; cameras; film and memory
24    cards; videocameras, tapes, and videotapes; computers;
25    cell phones; Personal Digital Assistants (PDAs); handheld
26    electronic schedulers; and school computer supplies.

 

 

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1        "School supplies" includes, but is not limited to:
2    binders; book bags; calculators; cellophane tape;
3    blackboard chalk; compasses; composition books; crayons;
4    erasers; expandable, pocket, plastic, and manila folders;
5    glue, paste, and paste sticks; highlighters; index cards;
6    index card boxes; legal pads; lunch boxes; markers;
7    notebooks; paper, including loose leaf ruled notebook
8    paper, copy paper, graph paper, tracing paper, manila
9    paper, colored paper, poster board, and construction
10    paper; pencils; pencil leads; pens; ink and ink refills for
11    pens; pencil boxes and other school supply boxes; pencil
12    sharpeners; protractors; rulers; scissors; and writing
13    tablets.
14        "School art supply" means an item commonly used by a
15    student in a course of study for artwork and includes only
16    the following items: clay and glazes; acrylic, tempera, and
17    oil paint; paintbrushes for artwork; sketch and drawing
18    pads; and watercolors.
19        "School instructional material" means written material
20    commonly used by a student in a course of study as a
21    reference and to learn the subject being taught and
22    includes only the following items: reference books;
23    reference maps and globes; textbooks; and workbooks.
24        "School computer supply" means an item commonly used by
25    a student in a course of study in which a computer is used
26    and applies only to the following items: flashdrives and

 

 

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1    other computer data storage devices; data storage media,
2    such as diskettes and compact disks; boxes and cases for
3    disk storage; external ports or drives; computer cases;
4    computer cables; computer printers; and printer
5    cartridges, toner, and ink.
6    (b) Administration. Notwithstanding any other provision of
7this Act, the reduced rate of tax under Section 3-10 of this
8Act for clothing and school supplies shall be administered by
9the Department under the provisions of this subsection (b).
10        (1) Bundled sales. Items that qualify for the reduced
11    rate of tax that are bundled together with items that do
12    not qualify for the reduced rate of tax and that are sold
13    for one itemized price will be subject to the reduced rate
14    of tax only if the value of the items that qualify for the
15    reduced rate of tax exceeds the value of the items that do
16    not qualify for the reduced rate of tax.
17        (2) Coupons and discounts. An unreimbursed discount by
18    the seller reduces the sales price of the property so that
19    the discounted sales price determines whether the sales
20    price is within a sales tax holiday price threshold. A
21    coupon or other reduction in the sales price is treated as
22    a discount if the seller is not reimbursed for the coupon
23    or reduction amount by a third party.
24        (3) Splitting of items normally sold together.
25    Articles that are normally sold as a single unit must
26    continue to be sold in that manner. Such articles cannot be

 

 

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1    priced separately and sold as individual items in order to
2    obtain the reduced rate of tax. For example, a pair of
3    shoes cannot have each shoe sold separately so that the
4    sales price of each shoe is within a sales tax holiday
5    price threshold.
6        (4) Rain checks. A rain check is a procedure that
7    allows a customer to purchase an item at a certain price at
8    a later time because the particular item was out of stock.
9    Eligible property that customers purchase during the Sales
10    Tax Holiday Period with the use of a rain check will
11    qualify for the reduced rate of tax regardless of when the
12    rain check was issued. Issuance of a rain check during the
13    Sales Tax Holiday Period will not qualify eligible property
14    for the reduced rate of tax if the property is actually
15    purchased after the Sales Tax Holiday Period.
16        (5) Exchanges. The procedure for an exchange in regards
17    to a sales tax holiday is as follows:
18            (A) If a customer purchases an item of eligible
19        property during the Sales Tax Holiday Period, but later
20        exchanges the item for a similar eligible item, even if
21        a different size, different color, or other feature, no
22        additional tax is due even if the exchange is made
23        after the Sales Tax Holiday Period.
24            (B) If a customer purchases an item of eligible
25        property during the Sales Tax Holiday Period, but after
26        the Sales Tax Holiday Period has ended, the customer

 

 

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1        returns the item and receives credit on the purchase of
2        a different item, the 6.25% general merchandise sales
3        tax rate is due on the sale of the newly purchased
4        item.
5            (C) If a customer purchases an item of eligible
6        property before the Sales Tax Holiday Period, but
7        during the Sales Tax Holiday Period the customer
8        returns the item and receives credit on the purchase of
9        a different item of eligible property, the reduced rate
10        of tax is due on the sale of the new item if the new
11        item is purchased during the Sales Tax Holiday Period.
12        (6) Delivery charges. Delivery charges, including
13    shipping, handling and service charges, are part of the
14    sales price of eligible property.
15        (7) Order date and back orders. For the purpose of a
16    sales tax holiday, eligible property qualifies for the
17    reduced rate of tax if: (i) the item is both delivered to
18    and paid for by the customer during the Sales Tax Holiday
19    Period or (ii) the customer orders and pays for the item
20    and the seller accepts the order during the Sales Tax
21    Holiday Period for immediate shipment, even if delivery is
22    made after the Sales Tax Holiday Period. The seller accepts
23    an order when the seller has taken action to fill the order
24    for immediate shipment. Actions to fill an order include
25    placement of an "in date" stamp on an order or assignment
26    of an "order number" to an order within the Sales Tax

 

 

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1    Holiday Period. An order is for immediate shipment when the
2    customer does not request delayed shipment. An order is for
3    immediate shipment notwithstanding that the shipment may
4    be delayed because of a backlog of orders or because stock
5    is currently unavailable to, or on back order by, the
6    seller.
7        (8) Returns. For a 60-day period immediately after the
8    Sales Tax Holiday Period, if a customer returns an item
9    that would qualify for the reduced rate of tax, credit for
10    or refund of sales tax shall be given only at the reduced
11    rate unless the customer provides a receipt or invoice that
12    shows tax was paid at the 6.25% general merchandise rate,
13    or the seller has sufficient documentation to show that tax
14    was paid at the 6.25% general merchandise rate on the
15    specific item. This 60-day period is set solely for the
16    purpose of designating a time period during which the
17    customer must provide documentation that shows that the
18    appropriate sales tax rate was paid on returned
19    merchandise. The 60-day period is not intended to change a
20    seller's policy on the time period during which the seller
21    will accept returns.
22    (c) The Department may implement the provisions of this
23Section through the use of emergency rules, along with
24permanent rules filed concurrently with such emergency rules,
25in accordance with the provisions of Section 5-45 of the
26Illinois Administrative Procedure Act. For purposes of the

 

 

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1Illinois Administrative Procedure Act, the adoption of rules to
2implement the provisions of this Section shall be deemed an
3emergency and necessary for the public interest, safety, and
4welfare.
5    (d) As used in this Act, "Sales Tax Holiday Period" means
6the period beginning on August 6, 2010 and ending on August 15,
72010 and the period beginning on August 5, 2018 and ending on
8August 11, 2018.
9(Source: P.A. 96-1012, eff. 7-7-10.)
 
10    (35 ILCS 105/3-10)
11    Sec. 3-10. Rate of tax. Unless otherwise provided in this
12Section, the tax imposed by this Act is at the rate of 6.25% of
13either the selling price or the fair market value, if any, of
14the tangible personal property. In all cases where property
15functionally used or consumed is the same as the property that
16was purchased at retail, then the tax is imposed on the selling
17price of the property. In all cases where property functionally
18used or consumed is a by-product or waste product that has been
19refined, manufactured, or produced from property purchased at
20retail, then the tax is imposed on the lower of the fair market
21value, if any, of the specific property so used in this State
22or on the selling price of the property purchased at retail.
23For purposes of this Section "fair market value" means the
24price at which property would change hands between a willing
25buyer and a willing seller, neither being under any compulsion

 

 

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1to buy or sell and both having reasonable knowledge of the
2relevant facts. The fair market value shall be established by
3Illinois sales by the taxpayer of the same property as that
4functionally used or consumed, or if there are no such sales by
5the taxpayer, then comparable sales or purchases of property of
6like kind and character in Illinois.
7    Beginning on July 1, 2000 and through December 31, 2000,
8with respect to motor fuel, as defined in Section 1.1 of the
9Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
10the Use Tax Act, the tax is imposed at the rate of 1.25%.
11    During the Sales Tax Holiday Period, as defined in Section
123-6 of this Act Beginning on August 6, 2010 through August 15,
132010, with respect to sales tax holiday items as defined in
14Section 3-6 of this Act, the tax is imposed at the rate of
151.25%.
16    With respect to gasohol, the tax imposed by this Act
17applies to (i) 70% of the proceeds of sales made on or after
18January 1, 1990, and before July 1, 2003, (ii) 80% of the
19proceeds of sales made on or after July 1, 2003 and on or
20before July 1, 2017, and (iii) 100% of the proceeds of sales
21made thereafter. If, at any time, however, the tax under this
22Act on sales of gasohol is imposed at the rate of 1.25%, then
23the tax imposed by this Act applies to 100% of the proceeds of
24sales of gasohol made during that time.
25    With respect to majority blended ethanol fuel, the tax
26imposed by this Act does not apply to the proceeds of sales

 

 

HB4494- 20 -LRB100 13618 HLH 28242 b

1made on or after July 1, 2003 and on or before December 31,
22023 but applies to 100% of the proceeds of sales made
3thereafter.
4    With respect to biodiesel blends with no less than 1% and
5no more than 10% biodiesel, the tax imposed by this Act applies
6to (i) 80% of the proceeds of sales made on or after July 1,
72003 and on or before December 31, 2018 and (ii) 100% of the
8proceeds of sales made thereafter. If, at any time, however,
9the tax under this Act on sales of biodiesel blends with no
10less than 1% and no more than 10% biodiesel is imposed at the
11rate of 1.25%, then the tax imposed by this Act applies to 100%
12of the proceeds of sales of biodiesel blends with no less than
131% and no more than 10% biodiesel made during that time.
14    With respect to 100% biodiesel and biodiesel blends with
15more than 10% but no more than 99% biodiesel, the tax imposed
16by this Act does not apply to the proceeds of sales made on or
17after July 1, 2003 and on or before December 31, 2023 but
18applies to 100% of the proceeds of sales made thereafter.
19    With respect to food for human consumption that is to be
20consumed off the premises where it is sold (other than
21alcoholic beverages, soft drinks, and food that has been
22prepared for immediate consumption) and prescription and
23nonprescription medicines, drugs, medical appliances, products
24classified as Class III medical devices by the United States
25Food and Drug Administration that are used for cancer treatment
26pursuant to a prescription, as well as any accessories and

 

 

HB4494- 21 -LRB100 13618 HLH 28242 b

1components related to those devices, modifications to a motor
2vehicle for the purpose of rendering it usable by a person with
3a disability, and insulin, urine testing materials, syringes,
4and needles used by diabetics, for human use, the tax is
5imposed at the rate of 1%. For the purposes of this Section,
6until September 1, 2009: the term "soft drinks" means any
7complete, finished, ready-to-use, non-alcoholic drink, whether
8carbonated or not, including but not limited to soda water,
9cola, fruit juice, vegetable juice, carbonated water, and all
10other preparations commonly known as soft drinks of whatever
11kind or description that are contained in any closed or sealed
12bottle, can, carton, or container, regardless of size; but
13"soft drinks" does not include coffee, tea, non-carbonated
14water, infant formula, milk or milk products as defined in the
15Grade A Pasteurized Milk and Milk Products Act, or drinks
16containing 50% or more natural fruit or vegetable juice.
17    Notwithstanding any other provisions of this Act,
18beginning September 1, 2009, "soft drinks" means non-alcoholic
19beverages that contain natural or artificial sweeteners. "Soft
20drinks" do not include beverages that contain milk or milk
21products, soy, rice or similar milk substitutes, or greater
22than 50% of vegetable or fruit juice by volume.
23    Until August 1, 2009, and notwithstanding any other
24provisions of this Act, "food for human consumption that is to
25be consumed off the premises where it is sold" includes all
26food sold through a vending machine, except soft drinks and

 

 

HB4494- 22 -LRB100 13618 HLH 28242 b

1food products that are dispensed hot from a vending machine,
2regardless of the location of the vending machine. Beginning
3August 1, 2009, and notwithstanding any other provisions of
4this Act, "food for human consumption that is to be consumed
5off the premises where it is sold" includes all food sold
6through a vending machine, except soft drinks, candy, and food
7products that are dispensed hot from a vending machine,
8regardless of the location of the vending machine.
9    Notwithstanding any other provisions of this Act,
10beginning September 1, 2009, "food for human consumption that
11is to be consumed off the premises where it is sold" does not
12include candy. For purposes of this Section, "candy" means a
13preparation of sugar, honey, or other natural or artificial
14sweeteners in combination with chocolate, fruits, nuts or other
15ingredients or flavorings in the form of bars, drops, or
16pieces. "Candy" does not include any preparation that contains
17flour or requires refrigeration.
18    Notwithstanding any other provisions of this Act,
19beginning September 1, 2009, "nonprescription medicines and
20drugs" does not include grooming and hygiene products. For
21purposes of this Section, "grooming and hygiene products"
22includes, but is not limited to, soaps and cleaning solutions,
23shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
24lotions and screens, unless those products are available by
25prescription only, regardless of whether the products meet the
26definition of "over-the-counter-drugs". For the purposes of

 

 

HB4494- 23 -LRB100 13618 HLH 28242 b

1this paragraph, "over-the-counter-drug" means a drug for human
2use that contains a label that identifies the product as a drug
3as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
4label includes:
5        (A) A "Drug Facts" panel; or
6        (B) A statement of the "active ingredient(s)" with a
7    list of those ingredients contained in the compound,
8    substance or preparation.
9    Beginning on the effective date of this amendatory Act of
10the 98th General Assembly, "prescription and nonprescription
11medicines and drugs" includes medical cannabis purchased from a
12registered dispensing organization under the Compassionate Use
13of Medical Cannabis Pilot Program Act.
14    If the property that is purchased at retail from a retailer
15is acquired outside Illinois and used outside Illinois before
16being brought to Illinois for use here and is taxable under
17this Act, the "selling price" on which the tax is computed
18shall be reduced by an amount that represents a reasonable
19allowance for depreciation for the period of prior out-of-state
20use.
21(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
22100-22, eff. 7-6-17.)
 
23    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
24    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
25and trailers that are required to be registered with an agency

 

 

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1of this State, each retailer required or authorized to collect
2the tax imposed by this Act shall pay to the Department the
3amount of such tax (except as otherwise provided) at the time
4when he is required to file his return for the period during
5which such tax was collected, less a discount of 2.1% prior to
6January 1, 1990, and 1.75% on and after January 1, 1990, or $5
7per calendar year, whichever is greater, which is allowed to
8reimburse the retailer for expenses incurred in collecting the
9tax, keeping records, preparing and filing returns, remitting
10the tax and supplying data to the Department on request. In the
11case of retailers who report and pay the tax on a transaction
12by transaction basis, as provided in this Section, such
13discount shall be taken with each such tax remittance instead
14of when such retailer files his periodic return. The Department
15may disallow the discount for retailers whose certificate of
16registration is revoked at the time the return is filed, but
17only if the Department's decision to revoke the certificate of
18registration has become final. A retailer need not remit that
19part of any tax collected by him to the extent that he is
20required to remit and does remit the tax imposed by the
21Retailers' Occupation Tax Act, with respect to the sale of the
22same property.
23    Where such tangible personal property is sold under a
24conditional sales contract, or under any other form of sale
25wherein the payment of the principal sum, or a part thereof, is
26extended beyond the close of the period for which the return is

 

 

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1filed, the retailer, in collecting the tax (except as to motor
2vehicles, watercraft, aircraft, and trailers that are required
3to be registered with an agency of this State), may collect for
4each tax return period, only the tax applicable to that part of
5the selling price actually received during such tax return
6period.
7    Except as provided in this Section, on or before the
8twentieth day of each calendar month, such retailer shall file
9a return for the preceding calendar month. Such return shall be
10filed on forms prescribed by the Department and shall furnish
11such information as the Department may reasonably require.
12    The Department may require returns to be filed on a
13quarterly basis. If so required, a return for each calendar
14quarter shall be filed on or before the twentieth day of the
15calendar month following the end of such calendar quarter. The
16taxpayer shall also file a return with the Department for each
17of the first two months of each calendar quarter, on or before
18the twentieth day of the following calendar month, stating:
19        1. The name of the seller;
20        2. The address of the principal place of business from
21    which he engages in the business of selling tangible
22    personal property at retail in this State;
23        3. The total amount of taxable receipts received by him
24    during the preceding calendar month from sales of tangible
25    personal property by him during such preceding calendar
26    month, including receipts from charge and time sales, but

 

 

HB4494- 26 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 27 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 28 -LRB100 13618 HLH 28242 b

1tax liability to the Department under this Act, the Retailers'
2Occupation Tax Act, the Service Occupation Tax Act, the Service
3Use Tax Act was $10,000 or more during the preceding 4 complete
4calendar quarters, he shall file a return with the Department
5each month by the 20th day of the month next following the
6month during which such tax liability is incurred and shall
7make payments to the Department on or before the 7th, 15th,
822nd and last day of the month during which such liability is
9incurred. On and after October 1, 2000, if the taxpayer's
10average monthly tax liability to the Department under this Act,
11the Retailers' Occupation Tax Act, the Service Occupation Tax
12Act, and the Service Use Tax Act was $20,000 or more during the
13preceding 4 complete calendar quarters, he shall file a return
14with the Department each month by the 20th day of the month
15next following the month during which such tax liability is
16incurred and shall make payment to the Department on or before
17the 7th, 15th, 22nd and last day of the month during which such
18liability is incurred. If the month during which such tax
19liability is incurred began prior to January 1, 1985, each
20payment shall be in an amount equal to 1/4 of the taxpayer's
21actual liability for the month or an amount set by the
22Department not to exceed 1/4 of the average monthly liability
23of the taxpayer to the Department for the preceding 4 complete
24calendar quarters (excluding the month of highest liability and
25the month of lowest liability in such 4 quarter period). If the
26month during which such tax liability is incurred begins on or

 

 

HB4494- 29 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 30 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 31 -LRB100 13618 HLH 28242 b

1taxpayer may petition the Department for a change in such
2taxpayer's reporting status. The Department shall change such
3taxpayer's reporting status unless it finds that such change is
4seasonal in nature and not likely to be long term. If any such
5quarter monthly payment is not paid at the time or in the
6amount required by this Section, then the taxpayer shall be
7liable for penalties and interest on the difference between the
8minimum amount due and the amount of such quarter monthly
9payment actually and timely paid, except insofar as the
10taxpayer has previously made payments for that month to the
11Department in excess of the minimum payments previously due as
12provided in this Section. The Department shall make reasonable
13rules and regulations to govern the quarter monthly payment
14amount and quarter monthly payment dates for taxpayers who file
15on other than a calendar monthly basis.
16    If any such payment provided for in this Section exceeds
17the taxpayer's liabilities under this Act, the Retailers'
18Occupation Tax Act, the Service Occupation Tax Act and the
19Service Use Tax Act, as shown by an original monthly return,
20the Department shall issue to the taxpayer a credit memorandum
21no later than 30 days after the date of payment, which
22memorandum may be submitted by the taxpayer to the Department
23in payment of tax liability subsequently to be remitted by the
24taxpayer to the Department or be assigned by the taxpayer to a
25similar taxpayer under this Act, the Retailers' Occupation Tax
26Act, the Service Occupation Tax Act or the Service Use Tax Act,

 

 

HB4494- 32 -LRB100 13618 HLH 28242 b

1in accordance with reasonable rules and regulations to be
2prescribed by the Department, except that if such excess
3payment is shown on an original monthly return and is made
4after December 31, 1986, no credit memorandum shall be issued,
5unless requested by the taxpayer. If no such request is made,
6the taxpayer may credit such excess payment against tax
7liability subsequently to be remitted by the taxpayer to the
8Department under this Act, the Retailers' Occupation Tax Act,
9the Service Occupation Tax Act or the Service Use Tax Act, in
10accordance with reasonable rules and regulations prescribed by
11the Department. If the Department subsequently determines that
12all or any part of the credit taken was not actually due to the
13taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
14be reduced by 2.1% or 1.75% of the difference between the
15credit taken and that actually due, and the taxpayer shall be
16liable for penalties and interest on such difference.
17    If the retailer is otherwise required to file a monthly
18return and if the retailer's average monthly tax liability to
19the Department does not exceed $200, the Department may
20authorize his returns to be filed on a quarter annual basis,
21with the return for January, February, and March of a given
22year being due by April 20 of such year; with the return for
23April, May and June of a given year being due by July 20 of such
24year; with the return for July, August and September of a given
25year being due by October 20 of such year, and with the return
26for October, November and December of a given year being due by

 

 

HB4494- 33 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 34 -LRB100 13618 HLH 28242 b

1watercraft, motor vehicle or trailer to another aircraft,
2watercraft, motor vehicle or trailer retailer for the purpose
3of resale or (ii) a retailer of aircraft, watercraft, motor
4vehicles, or trailers transfers more than one aircraft,
5watercraft, motor vehicle, or trailer to a purchaser for use as
6a qualifying rolling stock as provided in Section 3-55 of this
7Act, then that seller may report the transfer of all the
8aircraft, watercraft, motor vehicles or trailers involved in
9that transaction to the Department on the same uniform
10invoice-transaction reporting return form. For purposes of
11this Section, "watercraft" means a Class 2, Class 3, or Class 4
12watercraft as defined in Section 3-2 of the Boat Registration
13and Safety Act, a personal watercraft, or any boat equipped
14with an inboard motor.
15    The transaction reporting return in the case of motor
16vehicles or trailers that are required to be registered with an
17agency of this State, shall be the same document as the Uniform
18Invoice referred to in Section 5-402 of the Illinois Vehicle
19Code and must show the name and address of the seller; the name
20and address of the purchaser; the amount of the selling price
21including the amount allowed by the retailer for traded-in
22property, if any; the amount allowed by the retailer for the
23traded-in tangible personal property, if any, to the extent to
24which Section 2 of this Act allows an exemption for the value
25of traded-in property; the balance payable after deducting such
26trade-in allowance from the total selling price; the amount of

 

 

HB4494- 35 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 36 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 37 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 38 -LRB100 13618 HLH 28242 b

1the purchaser thereafter returns such tangible personal
2property and the retailer refunds the selling price thereof to
3the purchaser, such retailer shall also refund, to the
4purchaser, the tax so collected from the purchaser. When filing
5his return for the period in which he refunds such tax to the
6purchaser, the retailer may deduct the amount of the tax so
7refunded by him to the purchaser from any other use tax which
8such retailer may be required to pay or remit to the
9Department, as shown by such return, if the amount of the tax
10to be deducted was previously remitted to the Department by
11such retailer. If the retailer has not previously remitted the
12amount of such tax to the Department, he is entitled to no
13deduction under this Act upon refunding such tax to the
14purchaser.
15    Any retailer filing a return under this Section shall also
16include (for the purpose of paying tax thereon) the total tax
17covered by such return upon the selling price of tangible
18personal property purchased by him at retail from a retailer,
19but as to which the tax imposed by this Act was not collected
20from the retailer filing such return, and such retailer shall
21remit the amount of such tax to the Department when filing such
22return.
23    If experience indicates such action to be practicable, the
24Department may prescribe and furnish a combination or joint
25return which will enable retailers, who are required to file
26returns hereunder and also under the Retailers' Occupation Tax

 

 

HB4494- 39 -LRB100 13618 HLH 28242 b

1Act, to furnish all the return information required by both
2Acts on the one form.
3    Where the retailer has more than one business registered
4with the Department under separate registration under this Act,
5such retailer may not file each return that is due as a single
6return covering all such registered businesses, but shall file
7separate returns for each such registered business.
8    Beginning January 1, 1990, each month the Department shall
9pay into the State and Local Sales Tax Reform Fund, a special
10fund in the State Treasury which is hereby created, the net
11revenue realized for the preceding month from the 1% tax on
12sales of food for human consumption which is to be consumed off
13the premises where it is sold (other than alcoholic beverages,
14soft drinks and food which has been prepared for immediate
15consumption) and prescription and nonprescription medicines,
16drugs, medical appliances, products classified as Class III
17medical devices by the United States Food and Drug
18Administration that are used for cancer treatment pursuant to a
19prescription, as well as any accessories and components related
20to those devices, and insulin, urine testing materials,
21syringes and needles used by diabetics.
22    Beginning January 1, 1990, each month the Department shall
23pay into the County and Mass Transit District Fund 4% of the
24net revenue realized for the preceding month from the 6.25%
25general rate on the selling price of tangible personal property
26which is purchased outside Illinois at retail from a retailer

 

 

HB4494- 40 -LRB100 13618 HLH 28242 b

1and which is titled or registered by an agency of this State's
2government.
3    Beginning January 1, 1990, each month the Department shall
4pay into the State and Local Sales Tax Reform Fund, a special
5fund in the State Treasury, 20% of the net revenue realized for
6the preceding month from the 6.25% general rate on the selling
7price of tangible personal property, other than tangible
8personal property which is purchased outside Illinois at retail
9from a retailer and which is titled or registered by an agency
10of this State's government.
11    Beginning August 1, 2000, each month the Department shall
12pay into the State and Local Sales Tax Reform Fund 100% of the
13net revenue realized for the preceding month from the 1.25%
14rate on the selling price of motor fuel and gasohol. Beginning
15September 1, 2010, and beginning again on September 1, 2018,
16each month the Department shall pay into the State and Local
17Sales Tax Reform Fund 100% of the net revenue realized for the
18preceding month from the 1.25% rate on the selling price of
19sales tax holiday items.
20    Beginning January 1, 1990, each month the Department shall
21pay into the Local Government Tax Fund 16% of the net revenue
22realized for the preceding month from the 6.25% general rate on
23the selling price of tangible personal property which is
24purchased outside Illinois at retail from a retailer and which
25is titled or registered by an agency of this State's
26government.

 

 

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

 

 

HB4494- 42 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 43 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 44 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 45 -LRB100 13618 HLH 28242 b

1installment of the amount requested in the certificate of the
2Chairman of the Metropolitan Pier and Exposition Authority
3provided under Section 8.25f of the State Finance Act, but not
4in excess of the sums designated as "Total Deposit", shall be
5deposited in the aggregate from collections under Section 9 of
6the Use Tax Act, Section 9 of the Service Use Tax Act, Section
79 of the Service Occupation Tax Act, and Section 3 of the
8Retailers' Occupation Tax Act into the McCormick Place
9Expansion Project Fund in the specified fiscal years.
10Fiscal YearTotal Deposit
111993         $0
121994 53,000,000
131995 58,000,000
141996 61,000,000
151997 64,000,000
161998 68,000,000
171999 71,000,000
182000 75,000,000
192001 80,000,000
202002 93,000,000
212003 99,000,000
222004103,000,000
232005108,000,000
242006113,000,000
252007119,000,000
262008126,000,000

 

 

HB4494- 46 -LRB100 13618 HLH 28242 b

12009132,000,000
22010139,000,000
32011146,000,000
42012153,000,000
52013161,000,000
62014170,000,000
72015179,000,000
82016189,000,000
92017199,000,000
102018210,000,000
112019221,000,000
122020233,000,000
132021246,000,000
142022260,000,000
152023275,000,000
162024 275,000,000
172025 275,000,000
182026 279,000,000
192027 292,000,000
202028 307,000,000
212029 322,000,000
222030 338,000,000
232031 350,000,000
242032 350,000,000
25and
26each fiscal year

 

 

HB4494- 47 -LRB100 13618 HLH 28242 b

1thereafter that bonds
2are outstanding under
3Section 13.2 of the
4Metropolitan Pier and
5Exposition Authority Act,
6but not after fiscal year 2060.
7    Beginning July 20, 1993 and in each month of each fiscal
8year thereafter, one-eighth of the amount requested in the
9certificate of the Chairman of the Metropolitan Pier and
10Exposition Authority for that fiscal year, less the amount
11deposited into the McCormick Place Expansion Project Fund by
12the State Treasurer in the respective month under subsection
13(g) of Section 13 of the Metropolitan Pier and Exposition
14Authority Act, plus cumulative deficiencies in the deposits
15required under this Section for previous months and years,
16shall be deposited into the McCormick Place Expansion Project
17Fund, until the full amount requested for the fiscal year, but
18not in excess of the amount specified above as "Total Deposit",
19has been deposited.
20    Subject to payment of amounts into the Build Illinois Fund
21and the McCormick Place Expansion Project Fund pursuant to the
22preceding paragraphs or in any amendments thereto hereafter
23enacted, beginning July 1, 1993 and ending on September 30,
242013, the Department shall each month pay into the Illinois Tax
25Increment Fund 0.27% of 80% of the net revenue realized for the
26preceding month from the 6.25% general rate on the selling

 

 

HB4494- 48 -LRB100 13618 HLH 28242 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 25-year
7period, the Department shall each month pay into the Energy
8Infrastructure Fund 80% of the net revenue realized from the
96.25% general rate on the selling price of Illinois-mined coal
10that was sold to an eligible business. For purposes of this
11paragraph, the term "eligible business" means a new electric
12generating facility certified pursuant to Section 605-332 of
13the Department of Commerce and Economic Opportunity Law of the
14Civil Administrative Code of Illinois.
15    Subject to payment of amounts into the Build Illinois Fund,
16the McCormick Place Expansion Project Fund, the Illinois Tax
17Increment Fund, and the Energy Infrastructure Fund pursuant to
18the preceding paragraphs or in any amendments to this Section
19hereafter enacted, beginning on the first day of the first
20calendar month to occur on or after August 26, 2014 (the
21effective date of Public Act 98-1098) this amendatory Act of
22the 98th General Assembly, each month, from the collections
23made under Section 9 of the Use Tax Act, Section 9 of the
24Service Use Tax Act, Section 9 of the Service Occupation Tax
25Act, and Section 3 of the Retailers' Occupation Tax Act, the
26Department shall pay into the Tax Compliance and Administration

 

 

HB4494- 49 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 50 -LRB100 13618 HLH 28242 b

1importers and wholesalers whose products are sold at retail in
2Illinois by numerous retailers, and who wish to do so, may
3assume the responsibility for accounting and paying to the
4Department all tax accruing under this Act with respect to such
5sales, if the retailers who are affected do not make written
6objection to the Department to this arrangement.
7(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
898-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff.
98-26-14; 99-352, eff. 8-12-15; 99-858, eff. 8-19-16; 99-933,
10eff. 1-27-17; revised 2-3-17.)
 
11    Section 15. The Retailers' Occupation Tax Act is amended by
12changing Sections 2-8, 2-10, and 3 as follows:
 
13    (35 ILCS 120/2-8)
14    Sec. 2-8. Sales tax holiday items.
15    (a) The tangible personal property described in this
16subsection qualifies for the 1.25% reduced rate of tax during
17for the period set forth in Section 2-10 of this Act
18(hereinafter referred to as the Sales Tax Holiday Period). The
19reduced rate on these items shall be administered under the
20provisions of subsection (b) of this Section. The following
21items are subject to the reduced rate:
22        (1) Clothing items that each have a retail selling
23    price of less than $100.
24        "Clothing" means, unless otherwise specified in this

 

 

HB4494- 51 -LRB100 13618 HLH 28242 b

1    Section, all human wearing apparel suitable for general
2    use. "Clothing" does not include clothing accessories,
3    protective equipment, or sport or recreational equipment.
4    "Clothing" includes, but is not limited to: household and
5    shop aprons; athletic supporters; bathing suits and caps;
6    belts and suspenders; boots; coats and jackets; ear muffs;
7    footlets; gloves and mittens for general use; hats and
8    caps; hosiery; insoles for shoes; lab coats; neckties;
9    overshoes; pantyhose; rainwear; rubber pants; sandals;
10    scarves; shoes and shoelaces; slippers; sneakers; socks
11    and stockings; steel-toed shoes; underwear; and school
12    uniforms.
13        "Clothing accessories" means, but is not limited to:
14    briefcases; cosmetics; hair notions, including, but not
15    limited to barrettes, hair bows, and hair nets; handbags;
16    handkerchiefs; jewelry; non-prescription sunglasses;
17    umbrellas; wallets; watches; and wigs and hair pieces.
18        "Protective equipment" means, but is not limited to:
19    breathing masks; clean room apparel and equipment; ear and
20    hearing protectors; face shields; hard hats; helmets;
21    paint or dust respirators; protective gloves; safety
22    glasses and goggles; safety belts; tool belts; and welder's
23    gloves and masks.
24        "Sport or recreational equipment" means, but is not
25    limited to: ballet and tap shoes; cleated or spiked
26    athletic shoes; gloves, including, but not limited to,

 

 

HB4494- 52 -LRB100 13618 HLH 28242 b

1    baseball, bowling, boxing, hockey, and golf gloves;
2    goggles; hand and elbow guards; life preservers and vests;
3    mouth guards; roller and ice skates; shin guards; shoulder
4    pads; ski boots; waders; and wetsuits and fins.
5        (2) School supplies. "School supplies" means, unless
6    otherwise specified in this Section, items used by a
7    student in a course of study. The purchase of school
8    supplies for use by persons other than students for use in
9    a course of study are not eligible for the reduced rate of
10    tax. "School supplies" do not include school art supplies;
11    school instructional materials; cameras; film and memory
12    cards; videocameras, tapes, and videotapes; computers;
13    cell phones; Personal Digital Assistants (PDAs); handheld
14    electronic schedulers; and school computer supplies.
15        "School supplies" includes, but is not limited to:
16    binders; book bags; calculators; cellophane tape;
17    blackboard chalk; compasses; composition books; crayons;
18    erasers; expandable, pocket, plastic, and manila folders;
19    glue, paste, and paste sticks; highlighters; index cards;
20    index card boxes; legal pads; lunch boxes; markers;
21    notebooks; paper, including loose leaf ruled notebook
22    paper, copy paper, graph paper, tracing paper, manila
23    paper, colored paper, poster board, and construction
24    paper; pencils; pencil leads; pens; ink and ink refills for
25    pens; pencil boxes and other school supply boxes; pencil
26    sharpeners; protractors; rulers; scissors; and writing

 

 

HB4494- 53 -LRB100 13618 HLH 28242 b

1    tablets.
2        "School art supply" means an item commonly used by a
3    student in a course of study for artwork and includes only
4    the following items: clay and glazes; acrylic, tempera, and
5    oil paint; paintbrushes for artwork; sketch and drawing
6    pads; and watercolors.
7        "School instructional material" means written material
8    commonly used by a student in a course of study as a
9    reference and to learn the subject being taught and
10    includes only the following items: reference books;
11    reference maps and globes; textbooks; and workbooks.
12        "School computer supply" means an item commonly used by
13    a student in a course of study in which a computer is used
14    and applies only to the following items: flashdrives and
15    other computer data storage devices; data storage media,
16    such as diskettes and compact disks; boxes and cases for
17    disk storage; external ports or drives; computer cases;
18    computer cables; computer printers; and printer
19    cartridges, toner, and ink.
20    (b) Administration. Notwithstanding any other provision of
21this Act, the reduced rate of tax under Section 3-10 of this
22Act for clothing and school supplies shall be administered by
23the Department under the provisions of this subsection (b).
24        (1) Bundled sales. Items that qualify for the reduced
25    rate of tax that are bundled together with items that do
26    not qualify for the reduced rate of tax and that are sold

 

 

HB4494- 54 -LRB100 13618 HLH 28242 b

1    for one itemized price will be subject to the reduced rate
2    of tax only if the value of the items that qualify for the
3    reduced rate of tax exceeds the value of the items that do
4    not qualify for the reduced rate of tax.
5        (2) Coupons and discounts. An unreimbursed discount by
6    the seller reduces the sales price of the property so that
7    the discounted sales price determines whether the sales
8    price is within a sales tax holiday price threshold. A
9    coupon or other reduction in the sales price is treated as
10    a discount if the seller is not reimbursed for the coupon
11    or reduction amount by a third party.
12        (3) Splitting of items normally sold together.
13    Articles that are normally sold as a single unit must
14    continue to be sold in that manner. Such articles cannot be
15    priced separately and sold as individual items in order to
16    obtain the reduced rate of tax. For example, a pair of
17    shoes cannot have each shoe sold separately so that the
18    sales price of each shoe is within a sales tax holiday
19    price threshold.
20        (4) Rain checks. A rain check is a procedure that
21    allows a customer to purchase an item at a certain price at
22    a later time because the particular item was out of stock.
23    Eligible property that customers purchase during the Sales
24    Tax Holiday Period with the use of a rain check will
25    qualify for the reduced rate of tax regardless of when the
26    rain check was issued. Issuance of a rain check during the

 

 

HB4494- 55 -LRB100 13618 HLH 28242 b

1    Sales Tax Holiday Period will not qualify eligible property
2    for the reduced rate of tax if the property is actually
3    purchased after the Sales Tax Holiday Period.
4        (5) Exchanges. The procedure for an exchange in regards
5    to a sales tax holiday is as follows:
6            (A) If a customer purchases an item of eligible
7        property during the Sales Tax Holiday Period, but later
8        exchanges the item for a similar eligible item, even if
9        a different size, different color, or other feature, no
10        additional tax is due even if the exchange is made
11        after the Sales Tax Holiday Period.
12            (B) If a customer purchases an item of eligible
13        property during the Sales Tax Holiday Period, but after
14        the Sales Tax Holiday Period has ended, the customer
15        returns the item and receives credit on the purchase of
16        a different item, the 6.25% general merchandise sales
17        tax rate is due on the sale of the newly purchased
18        item.
19            (C) If a customer purchases an item of eligible
20        property before the Sales Tax Holiday Period, but
21        during the Sales Tax Holiday Period the customer
22        returns the item and receives credit on the purchase of
23        a different item of eligible property, the reduced rate
24        of tax is due on the sale of the new item if the new
25        item is purchased during the Sales Tax Holiday Period.
26        (6) Delivery charges. Delivery charges, including

 

 

HB4494- 56 -LRB100 13618 HLH 28242 b

1    shipping, handling and service charges, are part of the
2    sales price of eligible property.
3        (7) Order date and back orders. For the purpose of a
4    sales tax holiday, eligible property qualifies for the
5    reduced rate of tax if: (i) the item is both delivered to
6    and paid for by the customer during the Sales Tax Holiday
7    Period or (ii) the customer orders and pays for the item
8    and the seller accepts the order during the Sales Tax
9    Holiday Period for immediate shipment, even if delivery is
10    made after the Sales Tax Holiday Period. The seller accepts
11    an order when the seller has taken action to fill the order
12    for immediate shipment. Actions to fill an order include
13    placement of an "in date" stamp on an order or assignment
14    of an "order number" to an order within the Sales Tax
15    Holiday Period. An order is for immediate shipment when the
16    customer does not request delayed shipment. An order is for
17    immediate shipment notwithstanding that the shipment may
18    be delayed because of a backlog of orders or because stock
19    is currently unavailable to, or on back order by, the
20    seller.
21        (8) Returns. For a 60-day period immediately after the
22    Sales Tax Holiday Period, if a customer returns an item
23    that would qualify for the reduced rate of tax, credit for
24    or refund of sales tax shall be given only at the reduced
25    rate unless the customer provides a receipt or invoice that
26    shows tax was paid at the 6.25% general merchandise rate,

 

 

HB4494- 57 -LRB100 13618 HLH 28242 b

1    or the seller has sufficient documentation to show that tax
2    was paid at the 6.25% general merchandise rate on the
3    specific item. This 60-day period is set solely for the
4    purpose of designating a time period during which the
5    customer must provide documentation that shows that the
6    appropriate sales tax rate was paid on returned
7    merchandise. The 60-day period is not intended to change a
8    seller's policy on the time period during which the seller
9    will accept returns.
10    (c) The Department may implement the provisions of this
11Section through the use of emergency rules, along with
12permanent rules filed concurrently with such emergency rules,
13in accordance with the provisions of Section 5-45 of the
14Illinois Administrative Procedure Act. For purposes of the
15Illinois Administrative Procedure Act, the adoption of rules to
16implement the provisions of this Section shall be deemed an
17emergency and necessary for the public interest, safety, and
18welfare.
19    (d) As used in this Act, "Sales Tax Holiday Period" means
20the period beginning on August 6, 2010 and ending on August 15,
212010 and the period beginning on August 5, 2018 and ending on
22August 11, 2018.
23(Source: P.A. 96-1012, eff. 7-7-10.)
 
24    (35 ILCS 120/2-10)
25    Sec. 2-10. Rate of tax. Unless otherwise provided in this

 

 

HB4494- 58 -LRB100 13618 HLH 28242 b

1Section, the tax imposed by this Act is at the rate of 6.25% of
2gross receipts from sales of tangible personal property made in
3the course of business.
4    Beginning on July 1, 2000 and through December 31, 2000,
5with respect to motor fuel, as defined in Section 1.1 of the
6Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
7the Use Tax Act, the tax is imposed at the rate of 1.25%.
8    During the Sales Tax Holiday Period, as defined in Section
92-8 of this Act Beginning on August 6, 2010 through August 15,
102010, with respect to sales tax holiday items as defined in
11Section 2-8 of this Act, the tax is imposed at the rate of
121.25%.
13    Within 14 days after the effective date of this amendatory
14Act of the 91st General Assembly, each retailer of motor fuel
15and gasohol shall cause the following notice to be posted in a
16prominently visible place on each retail dispensing device that
17is used to dispense motor fuel or gasohol in the State of
18Illinois: "As of July 1, 2000, the State of Illinois has
19eliminated the State's share of sales tax on motor fuel and
20gasohol through December 31, 2000. The price on this pump
21should reflect the elimination of the tax." The notice shall be
22printed in bold print on a sign that is no smaller than 4
23inches by 8 inches. The sign shall be clearly visible to
24customers. Any retailer who fails to post or maintain a
25required sign through December 31, 2000 is guilty of a petty
26offense for which the fine shall be $500 per day per each

 

 

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1retail premises where a violation occurs.
2    With respect to gasohol, as defined in the Use Tax Act, the
3tax imposed by this Act applies to (i) 70% of the proceeds of
4sales made on or after January 1, 1990, and before July 1,
52003, (ii) 80% of the proceeds of sales made on or after July
61, 2003 and on or before July 1, 2017, and (iii) 100% of the
7proceeds of sales made thereafter. If, at any time, however,
8the tax under this Act on sales of gasohol, as defined in the
9Use Tax Act, is imposed at the rate of 1.25%, then the tax
10imposed by this Act applies to 100% of the proceeds of sales of
11gasohol made during that time.
12    With respect to majority blended ethanol fuel, as defined
13in the Use Tax Act, the tax imposed by this Act does not apply
14to the proceeds of sales made on or after July 1, 2003 and on or
15before December 31, 2023 but applies to 100% of the proceeds of
16sales made thereafter.
17    With respect to biodiesel blends, as defined in the Use Tax
18Act, with no less than 1% and no more than 10% biodiesel, the
19tax imposed by this Act applies to (i) 80% of the proceeds of
20sales made on or after July 1, 2003 and on or before December
2131, 2018 and (ii) 100% of the proceeds of sales made
22thereafter. If, at any time, however, the tax under this Act on
23sales of biodiesel blends, as defined in the Use Tax Act, with
24no less than 1% and no more than 10% biodiesel is imposed at
25the rate of 1.25%, then the tax imposed by this Act applies to
26100% of the proceeds of sales of biodiesel blends with no less

 

 

HB4494- 60 -LRB100 13618 HLH 28242 b

1than 1% and no more than 10% biodiesel made during that time.
2    With respect to 100% biodiesel, as defined in the Use Tax
3Act, and biodiesel blends, as defined in the Use Tax Act, with
4more than 10% but no more than 99% biodiesel, the tax imposed
5by this Act does not apply to the proceeds of sales made on or
6after July 1, 2003 and on or before December 31, 2023 but
7applies to 100% of the proceeds of sales made thereafter.
8    With respect to food for human consumption that is to be
9consumed off the premises where it is sold (other than
10alcoholic beverages, soft drinks, and food that has been
11prepared for immediate consumption) and prescription and
12nonprescription medicines, drugs, medical appliances, products
13classified as Class III medical devices by the United States
14Food and Drug Administration that are used for cancer treatment
15pursuant to a prescription, as well as any accessories and
16components related to those devices, modifications to a motor
17vehicle for the purpose of rendering it usable by a person with
18a disability, and insulin, urine testing materials, syringes,
19and needles used by diabetics, for human use, the tax is
20imposed at the rate of 1%. For the purposes of this Section,
21until September 1, 2009: the term "soft drinks" means any
22complete, finished, ready-to-use, non-alcoholic drink, whether
23carbonated or not, including but not limited to soda water,
24cola, fruit juice, vegetable juice, carbonated water, and all
25other preparations commonly known as soft drinks of whatever
26kind or description that are contained in any closed or sealed

 

 

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1bottle, can, carton, or container, regardless of size; but
2"soft drinks" does not include coffee, tea, non-carbonated
3water, infant formula, milk or milk products as defined in the
4Grade A Pasteurized Milk and Milk Products Act, or drinks
5containing 50% or more natural fruit or vegetable juice.
6    Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "soft drinks" means non-alcoholic
8beverages that contain natural or artificial sweeteners. "Soft
9drinks" do not include beverages that contain milk or milk
10products, soy, rice or similar milk substitutes, or greater
11than 50% of vegetable or fruit juice by volume.
12    Until August 1, 2009, and notwithstanding any other
13provisions of this Act, "food for human consumption that is to
14be consumed off the premises where it is sold" includes all
15food sold through a vending machine, except soft drinks and
16food products that are dispensed hot from a vending machine,
17regardless of the location of the vending machine. Beginning
18August 1, 2009, and notwithstanding any other provisions of
19this Act, "food for human consumption that is to be consumed
20off the premises where it is sold" includes all food sold
21through a vending machine, except soft drinks, candy, and food
22products that are dispensed hot from a vending machine,
23regardless of the location of the vending machine.
24    Notwithstanding any other provisions of this Act,
25beginning September 1, 2009, "food for human consumption that
26is to be consumed off the premises where it is sold" does not

 

 

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1include candy. For purposes of this Section, "candy" means a
2preparation of sugar, honey, or other natural or artificial
3sweeteners in combination with chocolate, fruits, nuts or other
4ingredients or flavorings in the form of bars, drops, or
5pieces. "Candy" does not include any preparation that contains
6flour or requires refrigeration.
7    Notwithstanding any other provisions of this Act,
8beginning September 1, 2009, "nonprescription medicines and
9drugs" does not include grooming and hygiene products. For
10purposes of this Section, "grooming and hygiene products"
11includes, but is not limited to, soaps and cleaning solutions,
12shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
13lotions and screens, unless those products are available by
14prescription only, regardless of whether the products meet the
15definition of "over-the-counter-drugs". For the purposes of
16this paragraph, "over-the-counter-drug" means a drug for human
17use that contains a label that identifies the product as a drug
18as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
19label includes:
20        (A) A "Drug Facts" panel; or
21        (B) A statement of the "active ingredient(s)" with a
22    list of those ingredients contained in the compound,
23    substance or preparation.
24    Beginning on the effective date of this amendatory Act of
25the 98th General Assembly, "prescription and nonprescription
26medicines and drugs" includes medical cannabis purchased from a

 

 

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1registered dispensing organization under the Compassionate Use
2of Medical Cannabis Pilot Program Act.
3(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
4100-22, eff. 7-6-17.)
 
5    (35 ILCS 120/3)  (from Ch. 120, par. 442)
6    Sec. 3. Except as provided in this Section, on or before
7the twentieth day of each calendar month, every person engaged
8in the business of selling tangible personal property at retail
9in this State during the preceding calendar month shall file a
10return with the Department, stating:
11        1. The name of the seller;
12        2. His residence address and the address of his
13    principal place of business and the address of the
14    principal place of business (if that is a different
15    address) from which he engages in the business of selling
16    tangible personal property at retail in this State;
17        3. Total amount of receipts received by him during the
18    preceding calendar month or quarter, as the case may be,
19    from sales of tangible personal property, and from services
20    furnished, by him during such preceding calendar month or
21    quarter;
22        4. Total amount received by him during the preceding
23    calendar month or quarter on charge and time sales of
24    tangible personal property, and from services furnished,
25    by him prior to the month or quarter for which the return

 

 

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1    is filed;
2        5. Deductions allowed by law;
3        6. Gross receipts which were received by him during the
4    preceding calendar month or quarter and upon the basis of
5    which the tax is imposed;
6        7. The amount of credit provided in Section 2d of this
7    Act;
8        8. The amount of tax due;
9        9. The signature of the taxpayer; and
10        10. Such other reasonable information as the
11    Department may require.
12    If a taxpayer fails to sign a return within 30 days after
13the proper notice and demand for signature by the Department,
14the return shall be considered valid and any amount shown to be
15due on the return shall be deemed assessed.
16    Each return shall be accompanied by the statement of
17prepaid tax issued pursuant to Section 2e for which credit is
18claimed.
19    Prior to October 1, 2003, and on and after September 1,
202004 a retailer may accept a Manufacturer's Purchase Credit
21certification from a purchaser in satisfaction of Use Tax as
22provided in Section 3-85 of the Use Tax Act if the purchaser
23provides the appropriate documentation as required by Section
243-85 of the Use Tax Act. A Manufacturer's Purchase Credit
25certification, accepted by a retailer prior to October 1, 2003
26and on and after September 1, 2004 as provided in Section 3-85

 

 

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1of the Use Tax Act, may be used by that retailer to satisfy
2Retailers' Occupation Tax liability in the amount claimed in
3the certification, not to exceed 6.25% of the receipts subject
4to tax from a qualifying purchase. A Manufacturer's Purchase
5Credit reported on any original or amended return filed under
6this Act after October 20, 2003 for reporting periods prior to
7September 1, 2004 shall be disallowed. Manufacturer's
8Purchaser Credit reported on annual returns due on or after
9January 1, 2005 will be disallowed for periods prior to
10September 1, 2004. No Manufacturer's Purchase Credit may be
11used after September 30, 2003 through August 31, 2004 to
12satisfy any tax liability imposed under this Act, including any
13audit liability.
14    The Department may require returns to be filed on a
15quarterly basis. If so required, a return for each calendar
16quarter shall be filed on or before the twentieth day of the
17calendar month following the end of such calendar quarter. The
18taxpayer shall also file a return with the Department for each
19of the first two months of each calendar quarter, on or before
20the twentieth day of the following calendar month, stating:
21        1. The name of the seller;
22        2. The address of the principal place of business from
23    which he engages in the business of selling tangible
24    personal property at retail in this State;
25        3. The total amount of taxable receipts received by him
26    during the preceding calendar month from sales of tangible

 

 

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1    personal property by him during such preceding calendar
2    month, including receipts from charge and time sales, but
3    less all deductions allowed by law;
4        4. The amount of credit provided in Section 2d of this
5    Act;
6        5. The amount of tax due; and
7        6. Such other reasonable information as the Department
8    may require.
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 file
13a statement with the Department of Revenue, in a format and at
14a time prescribed by the Department, showing the total amount
15paid for alcoholic liquor purchased during the preceding month
16and such other information as is reasonably required by the
17Department. The Department may adopt rules to require that this
18statement be filed in an electronic or telephonic format. Such
19rules may provide for exceptions from the filing requirements
20of this paragraph. For the purposes of this paragraph, the term
21"alcoholic liquor" shall have the meaning prescribed in the
22Liquor Control Act of 1934.
23    Beginning on October 1, 2003, every distributor, importing
24distributor, and manufacturer of alcoholic liquor as defined in
25the Liquor Control Act of 1934, shall file a statement with the
26Department of Revenue, no later than the 10th day of the month

 

 

HB4494- 67 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 68 -LRB100 13618 HLH 28242 b

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

 

 

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1    Before August 1 of each year beginning in 1993, the
2Department shall notify all taxpayers required to make payments
3by electronic funds transfer. All taxpayers required to make
4payments by electronic funds transfer shall make those payments
5for a minimum of one year beginning on October 1.
6    Any taxpayer not required to make payments by electronic
7funds transfer may make payments by electronic funds transfer
8with the permission of the Department.
9    All taxpayers required to make payment by electronic funds
10transfer and any taxpayers authorized to voluntarily make
11payments by electronic funds transfer shall make those payments
12in the manner authorized by the Department.
13    The Department shall adopt such rules as are necessary to
14effectuate a program of electronic funds transfer and the
15requirements of this Section.
16    Any amount which is required to be shown or reported on any
17return or other document under this Act shall, if such amount
18is not a whole-dollar amount, be increased to the nearest
19whole-dollar amount in any case where the fractional part of a
20dollar is 50 cents or more, and decreased to the nearest
21whole-dollar amount where the fractional part of a dollar is
22less than 50 cents.
23    If the retailer is otherwise required to file a monthly
24return and if the retailer's average monthly tax liability to
25the Department does not exceed $200, the Department may
26authorize his returns to be filed on a quarter annual basis,

 

 

HB4494- 70 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 71 -LRB100 13618 HLH 28242 b

1single return covering all such registered businesses, but
2shall file separate returns for each such registered business.
3    In addition, with respect to motor vehicles, watercraft,
4aircraft, and trailers that are required to be registered with
5an agency of this State, every retailer selling this kind of
6tangible personal property shall file, with the Department,
7upon a form to be prescribed and supplied by the Department, a
8separate return for each such item of tangible personal
9property which the retailer sells, except that if, in the same
10transaction, (i) a retailer of aircraft, watercraft, motor
11vehicles or trailers transfers more than one aircraft,
12watercraft, motor vehicle or trailer to another aircraft,
13watercraft, motor vehicle retailer or trailer retailer for the
14purpose of resale or (ii) a retailer of aircraft, watercraft,
15motor vehicles, or trailers transfers more than one aircraft,
16watercraft, motor vehicle, or trailer to a purchaser for use as
17a qualifying rolling stock as provided in Section 2-5 of this
18Act, then that seller may report the transfer of all aircraft,
19watercraft, motor vehicles or trailers involved in that
20transaction to the Department on the same uniform
21invoice-transaction reporting return form. For purposes of
22this Section, "watercraft" means a Class 2, Class 3, or Class 4
23watercraft as defined in Section 3-2 of the Boat Registration
24and Safety Act, a personal watercraft, or any boat equipped
25with an inboard motor.
26    Any retailer who sells only motor vehicles, watercraft,

 

 

HB4494- 72 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 73 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 74 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 75 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 76 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 77 -LRB100 13618 HLH 28242 b

1    Before October 1, 2000, if the taxpayer's average monthly
2tax liability to the Department under this Act, the Use Tax
3Act, the Service Occupation Tax Act, and the Service Use Tax
4Act, excluding any liability for prepaid sales tax to be
5remitted in accordance with Section 2d of this Act, was $10,000
6or more during the preceding 4 complete calendar quarters, he
7shall file a return with the Department each month by the 20th
8day of the month next following the month during which such tax
9liability is incurred and shall make payments to the Department
10on or before the 7th, 15th, 22nd and last day of the month
11during which such liability is incurred. On and after October
121, 2000, if the taxpayer's average monthly tax liability to the
13Department under this Act, the Use Tax Act, the Service
14Occupation Tax Act, and the Service Use Tax Act, excluding any
15liability for prepaid sales tax to be remitted in accordance
16with Section 2d of this Act, was $20,000 or more during the
17preceding 4 complete calendar quarters, he shall file a return
18with the Department each month by the 20th day of the month
19next following the month during which such tax liability is
20incurred and shall make payment to the Department on or before
21the 7th, 15th, 22nd and last day of the month during which such
22liability is incurred. If the month during which such tax
23liability is incurred began prior to January 1, 1985, each
24payment shall be in an amount equal to 1/4 of the taxpayer's
25actual liability for the month or an amount set by the
26Department not to exceed 1/4 of the average monthly liability

 

 

HB4494- 78 -LRB100 13618 HLH 28242 b

1of the taxpayer to the Department for the preceding 4 complete
2calendar quarters (excluding the month of highest liability and
3the month of lowest liability in such 4 quarter period). If the
4month during which such tax liability is incurred begins on or
5after January 1, 1985 and prior to January 1, 1987, each
6payment shall be in an amount equal to 22.5% of the taxpayer's
7actual liability for the month or 27.5% of the taxpayer's
8liability for the same calendar month of the preceding year. If
9the month during which such tax liability is incurred begins on
10or after January 1, 1987 and prior to January 1, 1988, each
11payment shall be in an amount equal to 22.5% of the taxpayer's
12actual liability for the month or 26.25% of the taxpayer's
13liability for the same calendar month of the preceding year. If
14the month during which such tax liability is incurred begins on
15or after January 1, 1988, and prior to January 1, 1989, or
16begins on or after January 1, 1996, each payment shall be in an
17amount equal to 22.5% of the taxpayer's actual liability for
18the month or 25% of the taxpayer's liability for the same
19calendar month of the preceding year. If the month during which
20such tax liability is incurred begins on or after January 1,
211989, and prior to January 1, 1996, each payment shall be in an
22amount equal to 22.5% of the taxpayer's actual liability for
23the month or 25% of the taxpayer's liability for the same
24calendar month of the preceding year or 100% of the taxpayer's
25actual liability for the quarter monthly reporting period. The
26amount of such quarter monthly payments shall be credited

 

 

HB4494- 79 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 80 -LRB100 13618 HLH 28242 b

1average monthly liability to the Department as computed for
2each calendar quarter of the 4 preceding complete calendar
3quarter period is less than $20,000. However, if a taxpayer can
4show the Department that a substantial change in the taxpayer's
5business has occurred which causes the taxpayer to anticipate
6that his average monthly tax liability for the reasonably
7foreseeable future will fall below the $20,000 threshold stated
8above, then such taxpayer may petition the Department for a
9change in such taxpayer's reporting status. The Department
10shall change such taxpayer's reporting status unless it finds
11that such change is seasonal in nature and not likely to be
12long term. If any such quarter monthly payment is not paid at
13the time or in the amount required by this Section, then the
14taxpayer shall be liable for penalties and interest on the
15difference between the minimum amount due as a payment and the
16amount of such quarter monthly payment actually and timely
17paid, except insofar as the taxpayer has previously made
18payments for that month to the Department in excess of the
19minimum payments previously due as provided in this Section.
20The Department shall make reasonable rules and regulations to
21govern the quarter monthly payment amount and quarter monthly
22payment dates for taxpayers who file on other than a calendar
23monthly basis.
24    The provisions of this paragraph apply before October 1,
252001. Without regard to whether a taxpayer is required to make
26quarter monthly payments as specified above, any taxpayer who

 

 

HB4494- 81 -LRB100 13618 HLH 28242 b

1is required by Section 2d of this Act to collect and remit
2prepaid taxes and has collected prepaid taxes which average in
3excess of $25,000 per month during the preceding 2 complete
4calendar quarters, shall file a return with the Department as
5required by Section 2f and shall make payments to the
6Department on or before the 7th, 15th, 22nd and last day of the
7month during which such liability is incurred. If the month
8during which such tax liability is incurred began prior to
9September 1, 1985 (the effective date of Public Act 84-221)
10this amendatory Act of 1985, each payment shall be in an amount
11not less than 22.5% of the taxpayer's actual liability under
12Section 2d. If the month during which such tax liability is
13incurred begins on or after January 1, 1986, each payment shall
14be in an amount equal to 22.5% of the taxpayer's actual
15liability for the month or 27.5% of the taxpayer's liability
16for the same calendar month of the preceding calendar year. If
17the month during which such tax liability is incurred begins on
18or after January 1, 1987, each payment shall be in an amount
19equal to 22.5% of the taxpayer's actual liability for the month
20or 26.25% of the taxpayer's liability for the same calendar
21month of the preceding year. The amount of such quarter monthly
22payments shall be credited against the final tax liability of
23the taxpayer's return for that month filed under this Section
24or Section 2f, as the case may be. Once applicable, the
25requirement of the making of quarter monthly payments to the
26Department pursuant to this paragraph shall continue until such

 

 

HB4494- 82 -LRB100 13618 HLH 28242 b

1taxpayer's average monthly prepaid tax collections during the
2preceding 2 complete calendar quarters is $25,000 or less. If
3any such quarter monthly payment is not paid at the time or in
4the amount required, the taxpayer shall be liable for penalties
5and interest on such difference, except insofar as the taxpayer
6has previously made payments for that month in excess of the
7minimum payments previously due.
8    The provisions of this paragraph apply on and after October
91, 2001. Without regard to whether a taxpayer is required to
10make quarter monthly payments as specified above, any taxpayer
11who is required by Section 2d of this Act to collect and remit
12prepaid taxes and has collected prepaid taxes that average in
13excess of $20,000 per month during the preceding 4 complete
14calendar quarters shall file a return with the Department as
15required by Section 2f and shall make payments to the
16Department on or before the 7th, 15th, 22nd and last day of the
17month during which the liability is incurred. Each payment
18shall be in an amount equal to 22.5% of the taxpayer's actual
19liability for the month or 25% of the taxpayer's liability for
20the same calendar month of the preceding year. The amount of
21the quarter monthly payments shall be credited against the
22final tax liability of the taxpayer's return for that month
23filed under this Section or Section 2f, as the case may be.
24Once applicable, the requirement of the making of quarter
25monthly payments to the Department pursuant to this paragraph
26shall continue until the taxpayer's average monthly prepaid tax

 

 

HB4494- 83 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 84 -LRB100 13618 HLH 28242 b

1regulations prescribed by the Department. If the Department
2subsequently determined that all or any part of the credit
3taken was not actually due to the taxpayer, the taxpayer's 2.1%
4and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
5of the difference between the credit taken and that actually
6due, and that taxpayer shall be liable for penalties and
7interest on such difference.
8    If a retailer of motor fuel is entitled to a credit under
9Section 2d of this Act which exceeds the taxpayer's liability
10to the Department under this Act for the month which the
11taxpayer is filing a return, the Department shall issue the
12taxpayer a credit memorandum for the excess.
13    Beginning January 1, 1990, each month the Department shall
14pay into the Local Government Tax Fund, a special fund in the
15State treasury which is hereby created, the net revenue
16realized for the preceding month from the 1% tax on sales of
17food for human consumption which is to be consumed off the
18premises where it is sold (other than alcoholic beverages, soft
19drinks and food which has been prepared for immediate
20consumption) and prescription and nonprescription medicines,
21drugs, medical appliances, products classified as Class III
22medical devices by the United States Food and Drug
23Administration that are used for cancer treatment pursuant to a
24prescription, as well as any accessories and components related
25to those devices, and insulin, urine testing materials,
26syringes and needles used by diabetics.

 

 

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1    Beginning January 1, 1990, each month the Department shall
2pay into the County and Mass Transit District Fund, a special
3fund in the State treasury which is hereby created, 4% of the
4net revenue realized for the preceding month from the 6.25%
5general rate.
6    Beginning August 1, 2000, each month the Department shall
7pay into the County and Mass Transit District Fund 20% of the
8net revenue realized for the preceding month from the 1.25%
9rate on the selling price of motor fuel and gasohol. Beginning
10September 1, 2010, and beginning again on September 1, 2018,
11each month the Department shall pay into the County and Mass
12Transit District Fund 20% of the net revenue realized for the
13preceding month from the 1.25% rate on the selling price of
14sales tax holiday items.
15    Beginning January 1, 1990, each month the Department shall
16pay into the Local Government Tax Fund 16% of the net revenue
17realized for the preceding month from the 6.25% general rate on
18the selling price of tangible personal property.
19    Beginning August 1, 2000, each month the Department shall
20pay into the Local Government Tax Fund 80% of the net revenue
21realized for the preceding month from the 1.25% rate on the
22selling price of motor fuel and gasohol. Beginning September 1,
232010, and beginning again on September 1, 2018, each month the
24Department shall pay into the Local Government Tax Fund 80% of
25the net revenue realized for the preceding month from the 1.25%
26rate on the selling price of sales tax holiday items.

 

 

HB4494- 86 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 87 -LRB100 13618 HLH 28242 b

1to the difference between the average monthly claims for
2payment by the fund and the average monthly revenues deposited
3into the fund, excluding payments made pursuant to this
4paragraph.
5    Beginning July 1, 2015, of the remainder of the moneys
6received by the Department under the Use Tax Act, the Service
7Use Tax Act, the Service Occupation Tax Act, and this Act, each
8month the Department shall deposit $500,000 into the State
9Crime Laboratory Fund.
10    Of the remainder of the moneys received by the Department
11pursuant to this Act, (a) 1.75% thereof shall be paid into the
12Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
13and after July 1, 1989, 3.8% thereof shall be paid into the
14Build Illinois Fund; provided, however, that if in any fiscal
15year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
16may be, of the moneys received by the Department and required
17to be paid into the Build Illinois Fund pursuant to this Act,
18Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
19Act, and Section 9 of the Service Occupation Tax Act, such Acts
20being hereinafter called the "Tax Acts" and such aggregate of
212.2% or 3.8%, as the case may be, of moneys being hereinafter
22called the "Tax Act Amount", and (2) the amount transferred to
23the Build Illinois Fund from the State and Local Sales Tax
24Reform Fund shall be less than the Annual Specified Amount (as
25hereinafter defined), an amount equal to the difference shall
26be immediately paid into the Build Illinois Fund from other

 

 

HB4494- 88 -LRB100 13618 HLH 28242 b

1moneys received by the Department pursuant to the Tax Acts; the
2"Annual Specified Amount" means the amounts specified below for
3fiscal years 1986 through 1993:
4Fiscal YearAnnual Specified Amount
51986$54,800,000
61987$76,650,000
71988$80,480,000
81989$88,510,000
91990$115,330,000
101991$145,470,000
111992$182,730,000
121993$206,520,000;
13and means the Certified Annual Debt Service Requirement (as
14defined in Section 13 of the Build Illinois Bond Act) or the
15Tax Act Amount, whichever is greater, for fiscal year 1994 and
16each fiscal year thereafter; and further provided, that if on
17the last business day of any month the sum of (1) the Tax Act
18Amount required to be deposited into the Build Illinois Bond
19Account in the Build Illinois Fund during such month and (2)
20the amount transferred to the Build Illinois Fund from the
21State and Local Sales Tax Reform Fund shall have been less than
221/12 of the Annual Specified Amount, an amount equal to the
23difference shall be immediately paid into the Build Illinois
24Fund from other moneys received by the Department pursuant to
25the Tax Acts; and, further provided, that in no event shall the
26payments required under the preceding proviso result in

 

 

HB4494- 89 -LRB100 13618 HLH 28242 b

1aggregate payments into the Build Illinois Fund pursuant to
2this clause (b) for any fiscal year in excess of the greater of
3(i) the Tax Act Amount or (ii) the Annual Specified Amount for
4such fiscal year. The amounts payable into the Build Illinois
5Fund under clause (b) of the first sentence in this paragraph
6shall be payable only until such time as the aggregate amount
7on deposit under each trust indenture securing Bonds issued and
8outstanding pursuant to the Build Illinois Bond Act is
9sufficient, taking into account any future investment income,
10to fully provide, in accordance with such indenture, for the
11defeasance of or the payment of the principal of, premium, if
12any, and interest on the Bonds secured by such indenture and on
13any Bonds expected to be issued thereafter and all fees and
14costs payable with respect thereto, all as certified by the
15Director of the Bureau of the Budget (now Governor's Office of
16Management and Budget). If on the last business day of any
17month in which Bonds are outstanding pursuant to the Build
18Illinois Bond Act, the aggregate of moneys deposited in the
19Build Illinois Bond Account in the Build Illinois Fund in such
20month shall be less than the amount required to be transferred
21in such month from the Build Illinois Bond Account to the Build
22Illinois Bond Retirement and Interest Fund pursuant to Section
2313 of the Build Illinois Bond Act, an amount equal to such
24deficiency shall be immediately paid from other moneys received
25by the Department pursuant to the Tax Acts to the Build
26Illinois Fund; provided, however, that any amounts paid to the

 

 

HB4494- 90 -LRB100 13618 HLH 28242 b

1Build Illinois Fund in any fiscal year pursuant to this
2sentence shall be deemed to constitute payments pursuant to
3clause (b) of the first sentence of this paragraph and shall
4reduce the amount otherwise payable for such fiscal year
5pursuant to that clause (b). The moneys received by the
6Department pursuant to this Act and required to be deposited
7into the Build Illinois Fund are subject to the pledge, claim
8and charge set forth in Section 12 of the Build Illinois Bond
9Act.
10    Subject to payment of amounts into the Build Illinois Fund
11as provided in the preceding paragraph or in any amendment
12thereto hereafter enacted, the following specified monthly
13installment of the amount requested in the certificate of the
14Chairman of the Metropolitan Pier and Exposition Authority
15provided under Section 8.25f of the State Finance Act, but not
16in excess of sums designated as "Total Deposit", shall be
17deposited in the aggregate from collections under Section 9 of
18the Use Tax Act, Section 9 of the Service Use Tax Act, Section
199 of the Service Occupation Tax Act, and Section 3 of the
20Retailers' Occupation Tax Act into the McCormick Place
21Expansion Project Fund in the specified fiscal years.
22Fiscal YearTotal Deposit
231993         $0
241994 53,000,000
251995 58,000,000

 

 

HB4494- 91 -LRB100 13618 HLH 28242 b

11996 61,000,000
21997 64,000,000
31998 68,000,000
41999 71,000,000
52000 75,000,000
62001 80,000,000
72002 93,000,000
82003 99,000,000
92004103,000,000
102005108,000,000
112006113,000,000
122007119,000,000
132008126,000,000
142009132,000,000
152010139,000,000
162011146,000,000
172012153,000,000
182013161,000,000
192014170,000,000
202015179,000,000
212016189,000,000
222017199,000,000
232018210,000,000
242019221,000,000
252020233,000,000
262021246,000,000

 

 

HB4494- 92 -LRB100 13618 HLH 28242 b

12022260,000,000
22023275,000,000
32024 275,000,000
42025 275,000,000
52026 279,000,000
62027 292,000,000
72028 307,000,000
82029 322,000,000
92030 338,000,000
102031 350,000,000
112032 350,000,000
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

 

 

HB4494- 93 -LRB100 13618 HLH 28242 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 Deposit",
6has been deposited.
7    Subject to payment of amounts into the Build Illinois Fund
8and the McCormick Place Expansion Project Fund pursuant to the
9preceding paragraphs or in any amendments thereto hereafter
10enacted, beginning July 1, 1993 and ending on September 30,
112013, the Department shall each month pay into the Illinois Tax
12Increment Fund 0.27% of 80% of the net revenue realized for the
13preceding month from the 6.25% general rate on the selling
14price of tangible personal property.
15    Subject to payment of amounts into the Build Illinois Fund
16and the McCormick Place Expansion Project Fund pursuant to the
17preceding paragraphs or in any amendments thereto hereafter
18enacted, beginning with the receipt of the first report of
19taxes paid by an eligible business and continuing for a 25-year
20period, the Department shall each month pay into the Energy
21Infrastructure Fund 80% of the net revenue realized from the
226.25% general rate on the selling price of Illinois-mined coal
23that was sold to an eligible business. For purposes of this
24paragraph, the term "eligible business" means a new electric
25generating facility certified pursuant to Section 605-332 of
26the Department of Commerce and Economic Opportunity Law of the

 

 

HB4494- 94 -LRB100 13618 HLH 28242 b

1Civil Administrative Code of Illinois.
2    Subject to payment of amounts into the Build Illinois Fund,
3the McCormick Place Expansion Project Fund, the Illinois Tax
4Increment Fund, and the Energy Infrastructure Fund pursuant to
5the preceding paragraphs or in any amendments to this Section
6hereafter enacted, beginning on the first day of the first
7calendar month to occur on or after August 26, 2014 (the
8effective date of Public Act 98-1098) this amendatory Act of
9the 98th General Assembly, each month, from the collections
10made under Section 9 of the Use Tax Act, Section 9 of the
11Service Use Tax Act, Section 9 of the Service Occupation Tax
12Act, and Section 3 of the Retailers' Occupation Tax Act, the
13Department shall pay into the Tax Compliance and Administration
14Fund, to be used, subject to appropriation, to fund additional
15auditors and compliance personnel at the Department of Revenue,
16an amount equal to 1/12 of 5% of 80% of the cash receipts
17collected during the preceding fiscal year by the Audit Bureau
18of the Department under the Use Tax Act, the Service Use Tax
19Act, the Service Occupation Tax Act, the Retailers' Occupation
20Tax Act, and associated local occupation and use taxes
21administered by the Department.
22    Of the remainder of the moneys received by the Department
23pursuant to this Act, 75% thereof shall be paid into the State
24Treasury and 25% shall be reserved in a special account and
25used only for the transfer to the Common School Fund as part of
26the monthly transfer from the General Revenue Fund in

 

 

HB4494- 95 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 96 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 97 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 98 -LRB100 13618 HLH 28242 b

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

 

 

HB4494- 99 -LRB100 13618 HLH 28242 b

1(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
298-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff.
38-26-14; 99-352, eff. 8-12-15; 99-858, eff. 8-19-16; 99-933,
4eff. 1-27-17; revised 2-3-17.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.