HB2333 90th General Assembly


90_HB2333

      30 ILCS 105/6z-18         from Ch. 127, par. 142z-18
      30 ILCS 105/6z-20         from Ch. 127, par. 142z-20
      35 ILCS 105/1a            from Ch. 120, par. 439.1a
      35 ILCS 105/3-10          from Ch. 120, par. 439.3-10
      35 ILCS 105/9             from Ch. 120, par. 439.9
      35 ILCS 120/1c            from Ch. 120, par. 440c
      35 ILCS 120/2-10          from Ch. 120, par. 441-10
      35 ILCS 120/3             from Ch. 120, par. 442
          Creates the Automobile Leasing  Occupation  and  Use  Tax
      Act.   Imposes  a tax at the rate of 5% of the gross receipts
      of persons engaged in the business of leasing automobiles and
      a tax at the rate  of  5%  of  the  leasing  price  upon  the
      privilege of using in this State an automobile that is leased
      from  a  lessor.   Amends  the State Finance Act, the Use Tax
      Act, and the Retailers' Occupation Tax Act.   Imposes  a  use
      tax  and  a retailers' occupation tax at the rate of 1.25% on
      any motor vehicle that is sold to a lessor for the purpose of
      leasing under a  lease  subject  to  the  Automobile  Leasing
      Occupation  and Use Tax Act.  Imposes a tax at the rate of 5%
      on a motor vehicle that has been leased  by  a  lessor  to  a
      lessee  under  a  lease  that  is  subject  to the Automobile
      Leasing Occupation and Use Tax Act and is  subsequently  sold
      to  the lessee of the vehicle.  Provides for the distribution
      of proceeds of the tax.  Effective July 1, 1998.
                                                     LRB9007346KDpc
                                               LRB9007346KDpc
 1        AN ACT concerning taxes.
 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:
 4        Section  1.  Short  title.   This Act may be cited as the
 5    Automobile Leasing Occupation and Use Tax Act.
 6        Section 5.  Definitions.  As used in this Act:
 7        "Automobile"  means  any  motor  vehicle  of  the   first
 8    division,  a  motor vehicle of the second division which is a
 9    self-contained  motor   vehicle   designed   or   permanently
10    converted   to  provide  living  quarters  for  recreational,
11    camping or travel use, with direct walk through access to the
12    living quarters from the driver's seat, or a motor vehicle of
13    the  second  division  which  is  of  the  van  configuration
14    designed for the transportation of not less than 7  nor  more
15    than  16  passengers,  as  defined  in  Section  1-146 of the
16    Illinois Vehicle Code.
17        "Department" means the Department of Revenue.
18        "Person" means any natural individual, firm, partnership,
19    association, joint stock company, joint  venture,  public  or
20    private   corporation,  or  a  receiver,  executor,  trustee,
21    conservator, or other representatives appointed by  order  of
22    any court.
23        "Leasing"  means  any transfer of the possession or right
24    to possession of an automobile  to  a  user  for  a  valuable
25    consideration for a period of more than 1 year.
26        "Lessor"   means   any   person,  firm,  corporation,  or
27    association engaged in the business of leasing automobiles to
28    users.  For this purpose, the objective of making a profit is
29    not necessary to make the leasing activity a business.
30        "Lessee" means any user to whom the  possession,  or  the
31    right  to  possession,  of an automobile is transferred for a
                            -2-                LRB9007347KDpc
 1    valuable consideration for a period more than one year  which
 2    is paid by such lessee or by someone else.
 3        "Gross  receipts"  means  the total leasing price for the
 4    lease of an automobile.  In the case of lease transactions in
 5    which  the  consideration  is  paid  to  the  lessor  on   an
 6    installment  basis,  the  amounts  of  such payments shall be
 7    included by the lessor in gross receipts  only  as  and  when
 8    payments are received by the lessor.
 9        "Leasing  price"  means  the consideration for leasing an
10    automobile valued in money,  whether  received  in  money  or
11    otherwise,  including  cash,  credits, property and services,
12    and shall be determined without any deduction on  account  of
13    the  cost of the property leased, the cost of materials used,
14    labor or service cost or any other  expense  whatsoever,  but
15    does not include charges that are added by lessors on account
16    of  the  lessor's tax liability under this Act, or on account
17    of the lessor's duty to collect, from  the  lessee,  the  tax
18    that  is  imposed  by  Section  20  of  this Act.  The phrase
19    "leasing price" does not include the residual  value  of  the
20    automobile  or  any  separately stated charge on the lessee's
21    bill for insurance.
22        "Maintaining  a place of business in  this  State"  means
23    having  or  maintaining  within  this State, directly or by a
24    subsidiary, an office, repair facilities, distribution house,
25    sales house, warehouse, or other place of  business,  or  any
26    agent,  or other representative, operating within this State,
27    irrespective of whether the place of  business  or  agent  or
28    other   representative   is   located   here  permanently  or
29    temporarily.
30        "Residual value" means the estimated value of the vehicle
31    at the end of the scheduled lease term, used by the lessor in
32    determining the base lease payment,  as  established  by  the
33    lessor  at  the  time  the  lessor  and lessee enter into the
34    lease.
                            -3-                LRB9007347KDpc
 1        Section 10.  Imposition  of  occupation  tax.  A  tax  is
 2    imposed upon persons engaged in this State in the business of
 3    leasing  automobiles  in  Illinois  at  the rate of 5% of the
 4    gross receipts received from such business.  The  tax  herein
 5    imposed  does  not apply to the leasing of automobiles to any
 6    governmental  body,  nor   to   any   corporation,   society,
 7    association, foundation or institution organized and operated
 8    exclusively   for   charitable,   religious   or  educational
 9    purposes, nor to any not  for  profit  corporation,  society,
10    association,  foundation,  institution  or organization which
11    has  no  compensated  officers  or  employees  and  which  is
12    organized  and  operated  primarily  for  the  recreation  of
13    persons 55 years of age or older.   Beginning  July  1,  1998
14    through  June  30,  1999, each month the Department shall pay
15    into the Tax Compliance and Administration  Fund  3%  of  the
16    revenue  realized  from  the tax imposed by this Section, and
17    the remaining such revenue shall be paid as provided  for  in
18    Section  3  of  the Retailers' Occupation Tax Act.  Beginning
19    July 1, 1999 and each month thereafter, the Department  shall
20    pay into the Tax Compliance and Administration Fund 1% of the
21    revenue  realized  from  the tax imposed by this Section, and
22    the remaining such revenue shall be paid as provided  for  in
23    Section 3 of the Retailers' Occupation Tax Act.
24        The  Department  shall  have full power to administer and
25    enforce this Section, to collect all taxes and penalties  due
26    hereunder,  to dispose of taxes and penalties so collected in
27    the manner hereinafter provided, and to determine all  rights
28    to  credit  memoranda,  arising  on  account of the erroneous
29    payment of tax or penalty hereunder.  In  the  administration
30    of,  and  compliance  with,  this Section, the Department and
31    persons who are subject to this Section shall have  the  same
32    rights,  remedies, privileges, immunities, powers and duties,
33    and  be  subject  to  the  same   conditions,   restrictions,
34    limitation,  penalties  and  definitions of terms, and employ
                            -4-                LRB9007347KDpc
 1    the same modes of procedure, as are prescribed in Sections 1,
 2    1a, 2 through 2-65 (in  respect  to  all  provisions  therein
 3    other  than  the  State  rate  of tax), 2a, 2b, 2c, 3 (except
 4    provisions  relating  to  transaction  returns  and   quarter
 5    monthly  payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j,
 6    6, 6a, 6b, 6c, 7, 8, 9,  10,  11,  11a,  12  and  13  of  the
 7    Retailers'  Occupation Tax Act and Section 3-7 of the Uniform
 8    Penalty and Interest Act as fully as if those provisions were
 9    set forth herein.  For purposes of this  Section,  references
10    in  such  incorporated  Sections of the Retailers' Occupation
11    Tax Act to retailers,  sellers  or  persons  engaged  in  the
12    business  of selling tangible personal property means persons
13    engaged in the leasing of automobiles under leases subject to
14    this Act.
15        Section 15.  Registration. Every person engaged  in  this
16    State  in  the business of leasing automobiles shall apply to
17    the Department (upon a form prescribed and furnished  by  the
18    Department) for a certificate of registration under this Act.
19    The  certificate  of  registration  that  is  issued  by  the
20    Department  to a retailer under the Retailers' Occupation Tax
21    Act shall permit such lessor to engage in a business that  is
22    taxable  under  this  Section  without registering separately
23    with the Department.
24        Section 20.  Imposition of use tax. A tax is imposed upon
25    the privilege of using in this State, an automobile which  is
26    leased  from  a lessor.  Such tax is at the rate of 5% of the
27    leasing price of such automobile paid to the lessor under any
28    lease agreement.  The tax herein imposed shall not  apply  to
29    any  governmental  body,  nor  to  any  corporation, society,
30    association,  foundation  or   institution,   organized   and
31    operated exclusively for charitable, religious or educational
32    purposes,  nor  to  any  not for profit corporation, society,
                            -5-                LRB9007347KDpc
 1    association, foundation, institution  or  organization  which
 2    has  no  compensated  officers  or  employees  and  which  is
 3    organized  and  operated  primarily  for  the  recreation  of
 4    persons  55  years  of  age  or  older,  when  using tangible
 5    personal property  as  a  lessee.   Beginning  July  1,  1998
 6    through  June  30,  1999, each month the Department shall pay
 7    into the Tax Compliance and Administration  Fund  3%  of  the
 8    revenue  realized  from  the tax imposed by this Section, and
 9    the remaining such revenue shall be paid as provided  for  in
10    Section  9  of  the  Use Tax Act.  Beginning July 1, 1999 and
11    each month thereafter, the Department shall pay into the  Tax
12    Compliance and Administration Fund 1% of the revenue realized
13    from  the tax imposed by this Section, and the remaining such
14    revenue shall be paid as provided for in Section 9 of the Use
15    Tax Act.
16        The Department shall have full power  to  administer  and
17    enforce  this  Section;  to  collect all taxes, penalties and
18    interest due hereunder; to dispose of  taxes,  penalties  and
19    interest so collected in the manner hereinafter provided, and
20    to  determine  all  rights  to  credit  memoranda  or refunds
21    arising on account of the erroneous payment of  tax,  penalty
22    or   interest  hereunder.   In  the  administration  of,  and
23    compliance with, this Section, the Department and persons who
24    are subject to this  Section  shall  have  the  same  rights,
25    remedies,  privileges,  immunities, powers and duties, and be
26    subject to the same  conditions,  restrictions,  limitations,
27    penalties and definitions of terms, and employ the same modes
28    of  procedure,  as  are  prescribed  in Sections 2, 3 through
29    3-80,  4,  6,  7,  8,  9  (except  provisions   relating   to
30    transaction  returns  and  quarter monthly payments), 10, 11,
31    12, 12a, 12b, 13, 14, 15, 19, 20, 21 and 22 of  the  Use  Tax
32    Act,  and are not inconsistent with this Section, as fully as
33    if those provisions were set forth herein.  For  purposes  of
34    this Section, references in such incorporated Sections of the
                            -6-                LRB9007347KDpc
 1    Use   Tax  Act  to  users  or  purchasers  means  lessees  of
 2    automobiles under leases subject to this Act.
 3        Section 25.  Use tax collected.  The use tax  imposed  by
 4    Section 20 shall be collected from the lessee and remitted to
 5    the Department by a lessor maintaining a place of business in
 6    this  State  or who titles or registers an automobile with an
 7    agency of this State's government that is used for leasing in
 8    this State.
 9        The use tax imposed by Section  20  and  not  paid  to  a
10    lessor  pursuant  to  the preceding paragraph of this Section
11    shall be paid to the Department directly by any person  using
12    such automobile within this State.
13        Lessors  shall collect the tax from lessees by adding the
14    tax to the leasing price of the automobile, when  leased  for
15    use,  in  the  manner  prescribed  by  the  Department.   The
16    Department  shall  have  the  power  to  adopt and promulgate
17    reasonable rules and regulations for the adding of  such  tax
18    by  lessors  to leasing prices by prescribing bracket systems
19    for the purpose of enabling such lessors to add and  collect,
20    as far as practicable, the amount of such tax.
21        The tax imposed by this Section shall, when collected, be
22    stated  as  a  distinct item on the customer's bill, separate
23    and apart from the leasing price of the automobile.
24        Section  30.  Severability  clause.    If   any   clause,
25    sentence,  Section,  provision or part thereof of this Act or
26    the application thereof to any person or  circumstance  shall
27    be adjudged to be unconstitutional, the remainder of this Act
28    or  its  application  to  persons or circumstances other than
29    those to which it is held  invalid,  shall  not  be  affected
30    thereby.   In  particular,  if any provision which exempts or
31    has the effect of exempting some class of users or some  kind
32    of  use  from  the  tax imposed by this Act should be held to
                            -7-                LRB9007347KDpc
 1    constitute or to result in an invalid classification or to be
 2    unconstitutional for some other reason, such provision  shall
 3    be  deemed  to  be  severable  with the remainder of this Act
 4    without said provision being held constitutional.
 5        Section 80.  The State Finance Act is amended by changing
 6    Sections 6z-18 and 6z-20 as follows:
 7        (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
 8        Sec. 6z-18.  A portion of the money paid into  the  Local
 9    Government  Tax Fund from sales of food for human consumption
10    which is to be consumed off the premises  where  it  is  sold
11    (other  than  alcoholic beverages, soft drinks and food which
12    has been prepared for immediate consumption) and prescription
13    and nonprescription medicines, drugs, medical appliances  and
14    insulin,  urine  testing materials, syringes and needles used
15    by diabetics, which  occurred  in  municipalities,  shall  be
16    distributed  to  each municipality based upon the sales which
17    occurred  in  that  municipality.   The  remainder  shall  be
18    distributed  to  each  county  based  upon  the  sales  which
19    occurred in the unincorporated area of that county.
20        A portion of the money paid into the Local Government Tax
21    Fund from the 6.25% general use tax rate on the selling price
22    of tangible personal  property  which  is  purchased  outside
23    Illinois  at  retail  from  a retailer and which is titled or
24    registered by any agency of this State's government shall  be
25    distributed  to municipalities as provided in this paragraph.
26    Each municipality shall receive the  amount  attributable  to
27    sales   for   which   Illinois   addresses   for  titling  or
28    registration  purposes   are   given   as   being   in   such
29    municipality.  The remainder of the money paid into the Local
30    Government  Tax  Fund from such sales shall be distributed to
31    counties.  Each county shall receive the amount  attributable
32    to   sales  for  which  Illinois  addresses  for  titling  or
                            -8-                LRB9007347KDpc
 1    registration purposes are  given  as  being  located  in  the
 2    unincorporated area of such county.
 3        A portion of the money paid into the Local Government Tax
 4    Fund  from  the 1.25% rate imposed under the Use Tax Act upon
 5    the selling price of any  motor  vehicle  that  is  purchased
 6    outside  of  Illinois  at  retail by a lessor for purposes of
 7    leasing under a  lease  subject  to  the  Automobile  Leasing
 8    Occupation  and  Use Tax Act which is titled or registered by
 9    any agency of this State's government shall be distributed as
10    provided in this paragraph, less 3% for the first 12  monthly
11    distributions   and   1%   for   each   monthly  distribution
12    thereafter, which sum shall be paid into the  Tax  Compliance
13    and Administration Fund.  Each municipality shall receive the
14    amount attributable to sales for which Illinois addresses for
15    titling  or  registration purposes are given as being in such
16    municipality.  The remainder of the money paid into the Local
17    Government Tax Fund from such sales shall be  distributed  to
18    counties.   Each county shall receive the amount attributable
19    to  sales  for  which  Illinois  addresses  for  titling   or
20    registration  purposes  are  given  as  being  located in the
21    unincorporated area of such county.
22        A portion of the money paid into the Local Government Tax
23    Fund from the 6.25% general rate on sales subject to taxation
24    under the Retailers'  Occupation  Tax  Act  and  the  Service
25    Occupation  Tax  Act, which occurred in municipalities, shall
26    be distributed to each municipality,  based  upon  the  sales
27    which  occurred  in that municipality. The remainder shall be
28    distributed to  each  county,  based  upon  the  sales  which
29    occurred in the unincorporated area of such county.
30        A portion of the money paid into the Local Government Tax
31    Fund from the 1.25% rate imposed by the Retailers' Occupation
32    Tax  Act  upon  the sale of any motor vehicle that is sold at
33    retail to a lessor for purposes  of  leasing  under  a  lease
34    subject  to the Automobile Leasing Occupation and Use Tax Act
                            -9-                LRB9007347KDpc
 1    shall be distributed as provided in this paragraph,  less  3%
 2    for  the  first  12  monthly  distributions  and  1% for each
 3    monthly distribution thereafter, which sum shall be paid into
 4    the Tax Compliance and Administration Fund.  The funds  shall
 5    be  distributed  to  each  municipality, based upon the sales
 6    which occurred in that municipality.  The remainder shall  be
 7    distributed  to  each  county,  based  upon  the  sales which
 8    occurred in the unincorporated area of such county.
 9        For the purpose of determining allocation  to  the  local
10    government unit, a retail sale by a producer of coal or other
11    mineral  mined  in  Illinois is a sale at retail at the place
12    where  the  coal  or  other  mineral  mined  in  Illinois  is
13    extracted from the earth.  This paragraph does not  apply  to
14    coal  or other mineral when it is delivered or shipped by the
15    seller to the purchaser at a point outside Illinois  so  that
16    the  sale is exempt under the United States Constitution as a
17    sale in interstate or foreign commerce.
18        Whenever the Department determines that a refund of money
19    paid into the Local Government Tax Fund should be made  to  a
20    claimant   instead   of  issuing  a  credit  memorandum,  the
21    Department shall notify  the  State  Comptroller,  who  shall
22    cause  the order to be drawn for the amount specified, and to
23    the person named, in such notification from  the  Department.
24    Such  refund  shall be paid by the State Treasurer out of the
25    Local Government Tax Fund.
26        On or before the 25th day of  each  calendar  month,  the
27    Department  shall  prepare and certify to the Comptroller the
28    disbursement of stated sums of money to named  municipalities
29    and  counties,  the  municipalities  and counties to be those
30    entitled to distribution of taxes or penalties  paid  to  the
31    Department  during  the  second preceding calendar month. The
32    amount to be paid to each municipality or county shall be the
33    amount (not including credit memoranda) collected during  the
34    second  preceding  calendar  month by the Department and paid
                            -10-               LRB9007347KDpc
 1    into the Local  Government  Tax  Fund,  plus  an  amount  the
 2    Department  determines  is  necessary  to  offset any amounts
 3    which were erroneously paid to a different taxing  body,  and
 4    not  including  an amount equal to the amount of refunds made
 5    during the second preceding calendar month by the Department,
 6    and not including any amount which the Department  determines
 7    is  necessary  to  offset  any amounts which are payable to a
 8    different taxing  body  but  were  erroneously  paid  to  the
 9    municipality or county.  Within 10 days after receipt, by the
10    Comptroller,   of   the  disbursement  certification  to  the
11    municipalities and counties,  provided for in this Section to
12    be  given  to  the  Comptroller  by   the   Department,   the
13    Comptroller  shall  cause  the  orders  to  be  drawn for the
14    respective  amounts  in  accordance   with   the   directions
15    contained in such certification.
16        When  certifying  the amount of monthly disbursement to a
17    municipality or county under  this  Section,  the  Department
18    shall increase or decrease that amount by an amount necessary
19    to  offset  any  misallocation of previous disbursements. The
20    offset amount  shall  be  the  amount  erroneously  disbursed
21    within  the  6  months  preceding the time a misallocation is
22    discovered.
23        The  provisions  directing  the  distributions  from  the
24    special fund in the  State  Treasury  provided  for  in  this
25    Section   shall  constitute  an  irrevocable  and  continuing
26    appropriation of all amounts as provided  herein.  The  State
27    Treasurer and State Comptroller are hereby authorized to make
28    distributions as provided in this Section.
29        In construing any development, redevelopment, annexation,
30    preannexation  or  other  lawful agreement in effect prior to
31    September 1, 1990, which describes or refers to receipts from
32    a county or municipal retailers' occupation tax, use  tax  or
33    service  occupation  tax  which  now  cannot be imposed, such
34    description or reference  shall  be  deemed  to  include  the
                            -11-               LRB9007347KDpc
 1    replacement  revenue  for  such  abolished taxes, distributed
 2    from the Local Government Tax Fund.
 3    (Source: P.A. 90-491, eff. 1-1-98.)
 4        (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
 5        Sec. 6z-20. Of the money received from the 6.25%  general
 6    rate  on  sales  subject  to  taxation  under  the Retailers'
 7    Occupation Tax Act and Service Occupation Tax  Act  and  paid
 8    into  the County and Mass Transit District Fund, distribution
 9    to the Regional Transportation Authority  tax  fund,  created
10    pursuant  to  Section  4.03  of  the  Regional Transportation
11    Authority Act, for deposit therein shall be made  based  upon
12    the  retail  sales  occurring  in  a  county having more than
13    3,000,000 inhabitants. The remainder shall be distributed  to
14    each  county having 3,000,000 or fewer inhabitants based upon
15    the retail sales occurring in each such county.
16        Of the money received from the 1.25% rate imposed by  the
17    Retailers'  Occupation  Tax  Act  upon  the sale of any motor
18    vehicle that is sold at retail to a lessor  for  purposes  of
19    leasing  under  a  lease  subject  to  the Automobile Leasing
20    Occupation and Use Tax Act, and paid into the County and Mass
21    Transit District Fund shall be  distributed  as  provided  in
22    this   paragraph,   less   3%   for   the  first  12  monthly
23    distributions  and   1%   for   each   monthly   distribution
24    thereafter,  which  sum shall be paid into the Tax Compliance
25    and  Administration  Fund.    Distribution  to  the  Regional
26    Transportation  Authority  Tax  Fund,  created  pursuant   to
27    Section  4.03  of  the Regional Transportation Authority Act,
28    for deposit therein shall be made based upon the retail sales
29    occurring in a county having more than 3,000,000 inhabitants.
30    The remainder shall be  distributed  to  each  county  having
31    3,000,000  or  fewer  inhabitants based upon the retail sales
32    occurring in each such county.
33        For the purpose of determining allocation  to  the  local
                            -12-               LRB9007347KDpc
 1    government unit, a retail sale by a producer of coal or other
 2    mineral  mined  in  Illinois is a sale at retail at the place
 3    where  the  coal  or  other  mineral  mined  in  Illinois  is
 4    extracted from the earth.  This paragraph does not  apply  to
 5    coal  or other mineral when it is delivered or shipped by the
 6    seller to the purchaser at a point outside Illinois  so  that
 7    the  sale is exempt under the United States Constitution as a
 8    sale in interstate or foreign commerce.
 9        Of the money received from the 6.25% general use tax rate
10    on tangible personal  property  which  is  purchased  outside
11    Illinois  at  retail  from  a retailer and which is titled or
12    registered by any agency of this State's government and  paid
13    into  the  County  and Mass Transit District Fund, the amount
14    for which Illinois  addresses  for  titling  or  registration
15    purposes  are  given as being in each county having more than
16    3,000,000 inhabitants shall be distributed into the  Regional
17    Transportation   Authority  tax  fund,  created  pursuant  to
18    Section 4.03 of the Regional  Transportation  Authority  Act.
19    The  remainder  of  the  money  paid from such sales shall be
20    distributed to each county based on sales for which  Illinois
21    addresses  for  titling or registration purposes are given as
22    being located  in  the  county.   Any  money  paid  into  the
23    Regional  Transportation  Authority  Occupation  and  Use Tax
24    Replacement Fund from the County and  Mass  Transit  District
25    Fund  prior  to  January 14, 1991, which has not been paid to
26    the Authority prior to that date, shall be transferred to the
27    Regional Transportation Authority tax fund.
28        Of the money received from the 1.25% rate  imposed  under
29    the  Use  Tax Act upon the selling price of any motor vehicle
30    that is purchased outside of Illinois at retail by  a  lessor
31    for  purposes  of  leasing  under  a  lease  subject  to  the
32    Automobile Leasing Occupation and Use Tax Act which is titled
33    or registered by any agency of this State's government and is
34    paid into the County and Mass Transit District Fund, shall be
                            -13-               LRB9007347KDpc
 1    distributed  as  provided  in this paragraph, less 3% for the
 2    first 12  monthly  distributions  and  1%  for  each  monthly
 3    distribution thereafter, which sum shall be paid into the Tax
 4    Compliance  and  Administration  Fund.  The  amount for which
 5    Illinois addresses for titling or registration  purposes  are
 6    given  as  being  in  each  county having more than 3,000,000
 7    inhabitants  shall   be   distributed   into   the   Regional
 8    Transportation   Authority  Tax  Fund,  created  pursuant  to
 9    Section 4.03 of the Regional  Transportation  Authority  Act.
10    The  remainder  of  the  moneys paid from such sales shall be
11    distributed to each county based on sales for which  Illinois
12    addresses  for  titling or registration purposes are given as
13    being located in that county.
14        Whenever the Department determines that a refund of money
15    paid into the County and Mass Transit District Fund should be
16    made to a claimant instead of issuing  a  credit  memorandum,
17    the  Department shall notify the State Comptroller, who shall
18    cause the order to be drawn for the amount specified, and  to
19    the  person  named, in such notification from the Department.
20    Such refund shall be paid by the State Treasurer out  of  the
21    County and Mass Transit District Fund.
22        On  or  before  the  25th day of each calendar month, the
23    Department shall prepare and certify to the  Comptroller  the
24    disbursement   of  stated  sums  of  money  to  the  Regional
25    Transportation Authority and to named counties, the  counties
26    to   be   those  entitled  to  distribution,  as  hereinabove
27    provided, of taxes or penalties paid to the Department during
28    the second preceding calendar month.  The amount to  be  paid
29    to  the  Regional  Transportation  Authority  and each county
30    having 3,000,000 or fewer inhabitants  shall  be  the  amount
31    (not  including credit memoranda) collected during the second
32    preceding calendar month by the Department and paid into  the
33    County  and  Mass  Transit  District Fund, plus an amount the
34    Department determines is  necessary  to  offset  any  amounts
                            -14-               LRB9007347KDpc
 1    which  were  erroneously paid to a different taxing body, and
 2    not including an amount equal to the amount of  refunds  made
 3    during the second preceding calendar month by the Department,
 4    and  not including any amount which the Department determines
 5    is necessary to offset any amounts which were  payable  to  a
 6    different  taxing  body  but  were  erroneously  paid  to the
 7    Regional Transportation Authority or county.  Within 10  days
 8    after  receipt,  by  the  Comptroller,  of  the  disbursement
 9    certification  to  the  Regional Transportation Authority and
10    counties, provided for in this Section to  be  given  to  the
11    Comptroller  by  the  Department, the Comptroller shall cause
12    the  orders  to  be  drawn  for  the  respective  amounts  in
13    accordance   with   the   directions   contained   in    such
14    certification.
15        When  certifying  the amount of a monthly disbursement to
16    the Regional Transportation Authority or to  a  county  under
17    this  Section, the Department shall increase or decrease that
18    amount by an amount necessary to offset any misallocation  of
19    previous  disbursements.   The  offset  amount  shall  be the
20    amount erroneously disbursed within the  6  months  preceding
21    the time a misallocation is discovered.
22        The  provisions  directing  the  distributions  from  the
23    special  fund  in  the  State  Treasury  provided for in this
24    Section and from the Regional  Transportation  Authority  tax
25    fund  created  by Section 4.03 of the Regional Transportation
26    Authority Act shall constitute an irrevocable and  continuing
27    appropriation  of  all  amounts as provided herein. The State
28    Treasurer and State Comptroller are hereby authorized to make
29    distributions as provided in this Section.
30        In construing any development, redevelopment, annexation,
31    preannexation or other lawful agreement in  effect  prior  to
32    September 1, 1990, which describes or refers to receipts from
33    a  county  or municipal retailers' occupation tax, use tax or
34    service occupation tax which  now  cannot  be  imposed,  such
                            -15-               LRB9007347KDpc
 1    description  or  reference  shall  be  deemed  to include the
 2    replacement revenue for  such  abolished  taxes,  distributed
 3    from  the  County  and  Mass  Transit  District Fund or Local
 4    Government Distributive Fund, as the case may be.
 5    (Source: P.A. 90-491, eff. 1-1-98.)
 6        Section 85.  The Use  Tax  Act  is  amended  by  changing
 7    Sections 1a, 3-10, and 9 as follows:
 8        (35 ILCS 105/1a) (from Ch. 120, par. 439.1a)
 9        Sec.  1a.  A  person  who  is  engaged in the business of
10    leasing or renting motor  vehicles  to  others  and  who,  in
11    connection with such business sells any used motor vehicle to
12    a purchaser for his use and not for the purpose of resale, is
13    a  retailer  engaged  in  the  business  of  selling tangible
14    personal property at retail under this Act to the  extent  of
15    the  value  of  the  vehicle  sold.  For  the purpose of this
16    Section, "motor vehicle" means any motor vehicle of the first
17    division, a motor vehicle of the second division which  is  a
18    self-contained   motor   vehicle   designed   or  permanently
19    converted  to  provide  living  quarters  for   recreational,
20    camping or travel use, with direct walk through access to the
21    living quarters from the driver's seat, or a motor vehicle of
22    a  second division which is of the van configuration designed
23    for the transportation of not less than 7 nor  more  than  16
24    passengers,  as  defined  in  Section  1-146  of the Illinois
25    Vehicle  Code.  For  the  purpose  of  this  Section,  "motor
26    vehicle" has the meaning prescribed in Section 1-157  of  The
27    Illinois Vehicle Code, as now or hereafter amended.  (Nothing
28    provided  herein  shall  affect liability incurred under this
29    Act because of the use of such motor vehicles as a lessor.)
30    (Source: P.A. 80-598.)
31        (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
                            -16-               LRB9007347KDpc
 1        Sec. 3-10.  Rate of tax.  Unless  otherwise  provided  in
 2    this  Section,  the tax imposed by this Act is at the rate of
 3    6.25% of either the selling price or the fair  market  value,
 4    if  any,  of  the  tangible  personal property.  In all cases
 5    where property functionally used or consumed is the  same  as
 6    the  property  that  was purchased at retail, then the tax is
 7    imposed on the selling price of the property.  In  all  cases
 8    where  property functionally used or consumed is a by-product
 9    or waste product that  has  been  refined,  manufactured,  or
10    produced  from  property purchased at retail, then the tax is
11    imposed on the lower of the fair market value, if any, of the
12    specific property so used in this State  or  on  the  selling
13    price  of  the  property purchased at retail. For purposes of
14    this Section "fair market value" means  the  price  at  which
15    property  would  change  hands  between a willing buyer and a
16    willing seller, neither being under any compulsion to buy  or
17    sell  and  both  having  reasonable knowledge of the relevant
18    facts. The fair market value shall be established by Illinois
19    sales  by  the  taxpayer  of  the  same  property   as   that
20    functionally  used or consumed, or if there are no such sales
21    by the  taxpayer,  then  comparable  sales  or  purchases  of
22    property of like kind and character in Illinois.
23        With  respect  to  gasohol,  the  tax imposed by this Act
24    applies to 70% of the proceeds of  sales  made  on  or  after
25    January  1, 1990, and before July 1, 1999, and to 100% of the
26    proceeds of sales made thereafter, except that from  July  1,
27    1997  to July 1, 1999, the rate shall be 85% for gasohol sold
28    in this State during the 12 months beginning July 1 following
29    any calendar year for which  the  Department  has  determined
30    that  the  percentages in Section 10 of the Gasohol Fuels Tax
31    Abatement Act have not been met.
32        With respect to food for human consumption that is to  be
33    consumed  off  the  premises  where  it  is  sold (other than
34    alcoholic beverages, soft drinks,  and  food  that  has  been
                            -17-               LRB9007347KDpc
 1    prepared  for  immediate  consumption)  and  prescription and
 2    nonprescription   medicines,   drugs,   medical   appliances,
 3    modifications to a motor vehicle for the purpose of rendering
 4    it usable by a disabled person, and  insulin,  urine  testing
 5    materials, syringes, and needles used by diabetics, for human
 6    use,  the  tax is imposed at the rate of 1%. For the purposes
 7    of this Section, the term "soft drinks" means  any  complete,
 8    finished,    ready-to-use,   non-alcoholic   drink,   whether
 9    carbonated or not, including but not limited to  soda  water,
10    cola, fruit juice, vegetable juice, carbonated water, and all
11    other  preparations commonly known as soft drinks of whatever
12    kind or description that  are  contained  in  any  closed  or
13    sealed bottle, can, carton, or container, regardless of size.
14    "Soft  drinks"  does  not include coffee, tea, non-carbonated
15    water, infant formula, milk or milk products  as  defined  in
16    the Grade A Pasteurized Milk and Milk Products Act, or drinks
17    containing 50% or more natural fruit or vegetable juice.
18        Notwithstanding  any  other provisions of this Act, "food
19    for human consumption that is to be consumed off the premises
20    where it is sold" includes all food sold  through  a  vending
21    machine,  except  soft  drinks  and  food  products  that are
22    dispensed hot from  a  vending  machine,  regardless  of  the
23    location of the vending machine.
24        With  respect  to  any  motor vehicle (as the term "motor
25    vehicle" is defined in  Section  1a  of  this  Act)  that  is
26    purchased  by  a lessor for purposes of leasing under a lease
27    subject to the Automobile Leasing Occupation and Use Tax Act,
28    the tax is imposed at the rate of 1.25%.
29        With respect to any motor vehicle  (as  the  term  "motor
30    vehicle"  is defined in Section 1a of this Act) that has been
31    leased by a lessor to a lessee under a lease that is  subject
32    to  the Automobile Leasing Occupation and Use Tax Act, and is
33    subsequently purchased by the lessee of such vehicle, the tax
34    is imposed at the rate of 5%.
                            -18-               LRB9007347KDpc
 1        If the property  that  is  purchased  at  retail  from  a
 2    retailer  is  acquired  outside  Illinois  and  used  outside
 3    Illinois before being brought to Illinois for use here and is
 4    taxable  under this Act, the "selling price" on which the tax
 5    is computed shall be reduced by an amount that  represents  a
 6    reasonable allowance for depreciation for the period of prior
 7    out-of-state use.
 8    (Source:  P.A.  88-45;  89-359,  eff.  8-17-95;  89-420, eff.
 9    6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
10        (35 ILCS 105/9) (from Ch. 120, par. 439.9)
11        (Text of Section before amendment by P.A. 90-491)
12        Sec.  9.  Except  as  to  motor   vehicles,   watercraft,
13    aircraft,  and  trailers  that  are required to be registered
14    with an agency of  this  State,  each  retailer  required  or
15    authorized  to  collect the tax imposed by this Act shall pay
16    to the Department the amount of such tax (except as otherwise
17    provided) at the time when he is required to file his  return
18    for  the  period  during which such tax was collected, less a
19    discount of 2.1% prior to January 1, 1990, and 1.75%  on  and
20    after  January 1, 1990, or $5 per calendar year, whichever is
21    greater, which is  allowed  to  reimburse  the  retailer  for
22    expenses  incurred  in  collecting  the tax, keeping records,
23    preparing and filing returns, remitting the tax and supplying
24    data to the Department on request.  In the case of  retailers
25    who  report  and  pay the tax on a transaction by transaction
26    basis, as provided in this Section, such  discount  shall  be
27    taken  with  each  such  tax  remittance instead of when such
28    retailer files his periodic  return.   A  retailer  need  not
29    remit  that  part  of  any tax collected by him to the extent
30    that he is required to remit and does remit the  tax  imposed
31    by  the  Retailers'  Occupation  Tax Act, with respect to the
32    sale of the same property.
33        Where such tangible personal property  is  sold  under  a
                            -19-               LRB9007347KDpc
 1    conditional  sales  contract, or under any other form of sale
 2    wherein the payment of the principal sum, or a part  thereof,
 3    is  extended  beyond  the  close  of the period for which the
 4    return is filed, the retailer, in collecting the tax  (except
 5    as to motor vehicles, watercraft, aircraft, and trailers that
 6    are  required to be registered with an agency of this State),
 7    may  collect  for  each  tax  return  period,  only  the  tax
 8    applicable  to  that  part  of  the  selling  price  actually
 9    received during such tax return period.
10        Except as provided in this  Section,  on  or  before  the
11    twentieth  day  of  each  calendar month, such retailer shall
12    file a return for the preceding calendar month.  Such  return
13    shall  be  filed  on  forms  prescribed by the Department and
14    shall  furnish  such  information  as  the   Department   may
15    reasonably require.
16        The  Department  may  require  returns  to  be filed on a
17    quarterly basis.  If so required, a return for each  calendar
18    quarter  shall be filed on or before the twentieth day of the
19    calendar month following the end of  such  calendar  quarter.
20    The taxpayer shall also file a return with the Department for
21    each  of the first two months of each calendar quarter, on or
22    before the twentieth day of  the  following  calendar  month,
23    stating:
24             1.  The name of the seller;
25             2.  The  address  of the principal place of business
26        from which he engages in the business of selling tangible
27        personal property at retail in this State;
28             3.  The total amount of taxable receipts received by
29        him during the preceding calendar  month  from  sales  of
30        tangible  personal  property by him during such preceding
31        calendar month, including receipts from charge  and  time
32        sales, but less all deductions allowed by law;
33             4.  The  amount  of credit provided in Section 2d of
34        this Act;
                            -20-               LRB9007347KDpc
 1             5.  The amount of tax due;
 2             5-5.  The signature of the taxpayer; and
 3             6.  Such  other  reasonable   information   as   the
 4        Department may require.
 5        If a taxpayer fails to sign a return within 30 days after
 6    the proper notice and demand for signature by the Department,
 7    the  return shall be considered valid and any amount shown to
 8    be due on the return shall be deemed assessed.
 9        Beginning October 1, 1993, a taxpayer who has an  average
10    monthly  tax  liability  of  $150,000  or more shall make all
11    payments required by rules of the  Department  by  electronic
12    funds transfer. Beginning October 1, 1994, a taxpayer who has
13    an  average  monthly  tax liability of $100,000 or more shall
14    make all payments required by  rules  of  the  Department  by
15    electronic  funds  transfer.  Beginning  October  1,  1995, a
16    taxpayer who has an average monthly tax liability of  $50,000
17    or  more  shall  make  all  payments required by rules of the
18    Department by electronic funds transfer.  The  term  "average
19    monthly  tax  liability"  means  the  sum  of  the taxpayer's
20    liabilities under this Act, and under  all  other  State  and
21    local  occupation  and  use  tax  laws  administered  by  the
22    Department,  for  the  immediately  preceding  calendar  year
23    divided by 12.
24        Before  August  1  of  each  year  beginning in 1993, the
25    Department  shall  notify  all  taxpayers  required  to  make
26    payments by electronic funds transfer. All taxpayers required
27    to make payments by  electronic  funds  transfer  shall  make
28    those payments for a minimum of one year beginning on October
29    1.
30        Any  taxpayer not required to make payments by electronic
31    funds transfer may make payments by electronic funds transfer
32    with the permission of the Department.
33        All taxpayers required  to  make  payment  by  electronic
34    funds  transfer  and  any taxpayers authorized to voluntarily
                            -21-               LRB9007347KDpc
 1    make payments by electronic funds transfer shall  make  those
 2    payments in the manner authorized by the Department.
 3        The Department shall adopt such rules as are necessary to
 4    effectuate  a  program  of  electronic funds transfer and the
 5    requirements of this Section.
 6        If the taxpayer's average monthly tax  liability  to  the
 7    Department under this Act, the Retailers' Occupation Tax Act,
 8    the  Service  Occupation Tax Act, the Service Use Tax Act was
 9    $10,000 or more during  the  preceding  4  complete  calendar
10    quarters,  he  shall  file  a return with the Department each
11    month by the 20th day of the month next following  the  month
12    during  which  such  tax liability is incurred and shall make
13    payments to the Department on or before the 7th,  15th,  22nd
14    and  last  day  of  the  month during which such liability is
15    incurred.  If the month during which such  tax  liability  is
16    incurred  began  prior to January 1, 1985, each payment shall
17    be in an  amount  equal  to  1/4  of  the  taxpayer's  actual
18    liability  for  the  month or an amount set by the Department
19    not to exceed 1/4 of the average  monthly  liability  of  the
20    taxpayer  to  the  Department  for  the  preceding 4 complete
21    calendar quarters (excluding the month of  highest  liability
22    and  the month of lowest liability in such 4 quarter period).
23    If the month during which  such  tax  liability  is  incurred
24    begins  on  or after January 1, 1985, and prior to January 1,
25    1987, each payment shall be in an amount equal  to  22.5%  of
26    the taxpayer's actual liability for the month or 27.5% of the
27    taxpayer's  liability  for  the  same  calendar  month of the
28    preceding year.  If the month during which such tax liability
29    is incurred begins on or after January 1, 1987, and prior  to
30    January  1, 1988, each payment shall be in an amount equal to
31    22.5% of the taxpayer's actual liability  for  the  month  or
32    26.25%  of  the  taxpayer's  liability  for the same calendar
33    month of the preceding year.  If the month during which  such
34    tax liability is incurred begins on or after January 1, 1988,
                            -22-               LRB9007347KDpc
 1    and  prior  to January 1, 1989, or begins on or after January
 2    1, 1996, each payment shall be in an amount equal to 22.5% of
 3    the taxpayer's actual liability for the month or 25%  of  the
 4    taxpayer's  liability  for  the  same  calendar  month of the
 5    preceding year.  If the month during which such tax liability
 6    is incurred begins on or after January 1, 1989, and prior  to
 7    January  1, 1996, each payment shall be in an amount equal to
 8    22.5% of the taxpayer's actual liability for the month or 25%
 9    of the taxpayer's liability for the same  calendar  month  of
10    the preceding year or 100% of the taxpayer's actual liability
11    for the quarter monthly reporting period.  The amount of such
12    quarter  monthly payments shall be credited against the final
13    tax liability of the taxpayer's return for that month.   Once
14    applicable,  the requirement of the making of quarter monthly
15    payments  to  the  Department  shall  continue   until   such
16    taxpayer's average monthly liability to the Department during
17    the  preceding  4  complete  calendar quarters (excluding the
18    month of highest liability and the month of lowest liability)
19    is less than $9,000, or until such taxpayer's average monthly
20    liability to the Department as  computed  for  each  calendar
21    quarter  of  the 4 preceding complete calendar quarter period
22    is less than $10,000.  However, if a taxpayer  can  show  the
23    Department  that  a  substantial  change  in  the  taxpayer's
24    business has occurred which causes the taxpayer to anticipate
25    that  his  average  monthly  tax liability for the reasonably
26    foreseeable  future  will  fall  below  $10,000,  then   such
27    taxpayer  may  petition  the  Department  for  change in such
28    taxpayer's reporting status.   The  Department  shall  change
29    such  taxpayer's  reporting  status unless it finds that such
30    change is seasonal in nature and not likely to be long  term.
31    If  any  such quarter monthly payment is not paid at the time
32    or  in  the  amount  required  by  this  Section,  then   the
33    taxpayer's  2.1%  or 1.75% vendors' discount shall be reduced
34    by 2.1% or 1.75%, as the  case  may  be,  of  the  difference
                            -23-               LRB9007347KDpc
 1    between the minimum amount due and the amount of such quarter
 2    monthly  payment  actually  and  timely paid and the taxpayer
 3    shall  be  liable  for  penalties  and   interest   on   such
 4    difference,  except  insofar  as  the taxpayer has previously
 5    made payments for that month to the Department in  excess  of
 6    the  minimum  payments  previously  due  as  provided in this
 7    Section.  The Department  shall  make  reasonable  rules  and
 8    regulations  to govern the quarter monthly payment amount and
 9    quarter monthly payment dates for taxpayers who file on other
10    than a calendar monthly basis.
11        If any such payment provided for in this Section  exceeds
12    the  taxpayer's  liabilities  under  this Act, the Retailers'
13    Occupation Tax Act, the Service Occupation Tax  Act  and  the
14    Service  Use Tax Act, as shown by an original monthly return,
15    the  Department  shall  issue  to  the  taxpayer   a   credit
16    memorandum  no  later than 30 days after the date of payment,
17    which memorandum may be submitted  by  the  taxpayer  to  the
18    Department  in  payment  of  tax liability subsequently to be
19    remitted by the taxpayer to the Department or be assigned  by
20    the  taxpayer  to  a  similar  taxpayer  under  this Act, the
21    Retailers' Occupation Tax Act, the Service Occupation Tax Act
22    or the Service Use Tax Act,  in  accordance  with  reasonable
23    rules  and  regulations  to  be prescribed by the Department,
24    except that if such excess payment is shown  on  an  original
25    monthly return and is made after December 31, 1986, no credit
26    memorandum shall be issued, unless requested by the taxpayer.
27    If  no  such  request  is  made, the taxpayer may credit such
28    excess payment  against  tax  liability  subsequently  to  be
29    remitted  by  the  taxpayer to the Department under this Act,
30    the Retailers' Occupation Tax Act, the Service Occupation Tax
31    Act or the Service Use Tax Act, in accordance with reasonable
32    rules and regulations prescribed by the Department.   If  the
33    Department  subsequently  determines  that all or any part of
34    the credit taken was not actually due to  the  taxpayer,  the
                            -24-               LRB9007347KDpc
 1    taxpayer's  2.1%  or 1.75% vendor's discount shall be reduced
 2    by 2.1% or 1.75% of the difference between the  credit  taken
 3    and  that  actually due, and the taxpayer shall be liable for
 4    penalties and interest on such difference.
 5        If the retailer is otherwise required to file  a  monthly
 6    return and if the retailer's average monthly tax liability to
 7    the  Department  does  not  exceed  $200,  the Department may
 8    authorize his returns to be filed on a quarter annual  basis,
 9    with  the  return for January, February, and March of a given
10    year being due by April 20 of such year; with the return  for
11    April,  May  and June of a given year being due by July 20 of
12    such year; with the return for July, August and September  of
13    a  given  year being due by October 20 of such year, and with
14    the return for October, November and December of a given year
15    being due by January 20 of the following year.
16        If the retailer is otherwise required to file  a  monthly
17    or quarterly return and if the retailer's average monthly tax
18    liability   to  the  Department  does  not  exceed  $50,  the
19    Department may authorize his returns to be filed on an annual
20    basis, with the return for a given year being due by  January
21    20 of the following year.
22        Such  quarter  annual  and annual returns, as to form and
23    substance, shall be  subject  to  the  same  requirements  as
24    monthly returns.
25        Notwithstanding   any   other   provision   in  this  Act
26    concerning the time within which  a  retailer  may  file  his
27    return, in the case of any retailer who ceases to engage in a
28    kind  of  business  which  makes  him  responsible for filing
29    returns under this Act, such  retailer  shall  file  a  final
30    return  under  this Act with the Department not more than one
31    month after discontinuing such business.
32        In addition, with respect to motor vehicles,  watercraft,
33    aircraft,  and  trailers  that  are required to be registered
34    with an agency of this State,  every  retailer  selling  this
                            -25-               LRB9007347KDpc
 1    kind  of  tangible  personal  property  shall  file, with the
 2    Department, upon a form to be prescribed and supplied by  the
 3    Department,  a separate return for each such item of tangible
 4    personal property  which  the  retailer  sells,  except  that
 5    where,  in  the  same  transaction,  a  retailer of aircraft,
 6    watercraft, motor vehicles or trailers  transfers  more  than
 7    one aircraft, watercraft, motor vehicle or trailer to another
 8    aircraft,  watercraft,  motor vehicle or trailer retailer for
 9    the purpose of resale, that seller for resale may report  the
10    transfer  of  all the aircraft, watercraft, motor vehicles or
11    trailers involved in that transaction to  the  Department  on
12    the  same  uniform invoice-transaction reporting return form.
13    For purposes of this Section, "watercraft" means a  Class  2,
14    Class  3,  or Class 4 watercraft as defined in Section 3-2 of
15    the Boat Registration and Safety Act, a personal  watercraft,
16    or any boat equipped with an inboard motor.
17        The  transaction  reporting  return  in the case of motor
18    vehicles or trailers that are required to be registered  with
19    an  agency  of  this State, shall be the same document as the
20    Uniform Invoice referred to in Section 5-402 of the  Illinois
21    Vehicle  Code  and  must  show  the  name  and address of the
22    seller; the name and address of the purchaser; the amount  of
23    the  selling  price  including  the  amount  allowed  by  the
24    retailer  for  traded-in property, if any; the amount allowed
25    by the retailer for the traded-in tangible personal property,
26    if any, to the extent to which Section 2 of this  Act  allows
27    an exemption for the value of traded-in property; the balance
28    payable  after  deducting  such  trade-in  allowance from the
29    total selling price; the amount of tax due from the  retailer
30    with respect to such transaction; the amount of tax collected
31    from  the  purchaser  by the retailer on such transaction (or
32    satisfactory evidence that  such  tax  is  not  due  in  that
33    particular  instance, if that is claimed to be the fact); the
34    place and date of the sale; a  sufficient  identification  of
                            -26-               LRB9007347KDpc
 1    the  property  sold; such other information as is required in
 2    Section 5-402 of the Illinois Vehicle Code,  and  such  other
 3    information as the Department may reasonably require.
 4        The   transaction   reporting   return  in  the  case  of
 5    watercraft and aircraft must show the name and address of the
 6    seller; the name and address of the purchaser; the amount  of
 7    the  selling  price  including  the  amount  allowed  by  the
 8    retailer  for  traded-in property, if any; the amount allowed
 9    by the retailer for the traded-in tangible personal property,
10    if any, to the extent to which Section 2 of this  Act  allows
11    an exemption for the value of traded-in property; the balance
12    payable  after  deducting  such  trade-in  allowance from the
13    total selling price; the amount of tax due from the  retailer
14    with respect to such transaction; the amount of tax collected
15    from  the  purchaser  by the retailer on such transaction (or
16    satisfactory evidence that  such  tax  is  not  due  in  that
17    particular  instance, if that is claimed to be the fact); the
18    place and date of the sale, a  sufficient  identification  of
19    the   property  sold,  and  such  other  information  as  the
20    Department may reasonably require.
21        Such transaction reporting  return  shall  be  filed  not
22    later  than  20  days  after the date of delivery of the item
23    that is being sold, but may be filed by the retailer  at  any
24    time   sooner  than  that  if  he  chooses  to  do  so.   The
25    transaction reporting return and tax remittance or  proof  of
26    exemption  from  the  tax  that is imposed by this Act may be
27    transmitted to the Department by way of the State agency with
28    which, or State officer  with  whom,  the  tangible  personal
29    property   must  be  titled  or  registered  (if  titling  or
30    registration is required) if the Department and  such  agency
31    or  State officer determine that this procedure will expedite
32    the processing of applications for title or registration.
33        With each such transaction reporting return, the retailer
34    shall remit the proper amount of tax  due  (or  shall  submit
                            -27-               LRB9007347KDpc
 1    satisfactory evidence that the sale is not taxable if that is
 2    the  case),  to  the  Department or its agents, whereupon the
 3    Department shall  issue,  in  the  purchaser's  name,  a  tax
 4    receipt  (or  a certificate of exemption if the Department is
 5    satisfied that the particular sale is tax exempt) which  such
 6    purchaser  may  submit  to  the  agency  with which, or State
 7    officer with whom, he must title  or  register  the  tangible
 8    personal   property   that   is   involved   (if  titling  or
 9    registration is required)  in  support  of  such  purchaser's
10    application  for an Illinois certificate or other evidence of
11    title or registration to such tangible personal property.
12        No retailer's failure or refusal to remit tax under  this
13    Act  precludes  a  user,  who  has paid the proper tax to the
14    retailer, from obtaining his certificate of  title  or  other
15    evidence of title or registration (if titling or registration
16    is  required)  upon  satisfying the Department that such user
17    has paid the proper tax (if tax is due) to the retailer.  The
18    Department shall adopt appropriate rules  to  carry  out  the
19    mandate of this paragraph.
20        If  the  user who would otherwise pay tax to the retailer
21    wants the transaction reporting return filed and the  payment
22    of  tax  or  proof of exemption made to the Department before
23    the retailer is willing to take these actions and  such  user
24    has  not  paid the tax to the retailer, such user may certify
25    to the fact of such delay by the retailer, and may (upon  the
26    Department   being   satisfied   of   the   truth   of   such
27    certification)  transmit  the  information  required  by  the
28    transaction  reporting  return  and the remittance for tax or
29    proof of exemption directly to the Department and obtain  his
30    tax  receipt  or  exemption determination, in which event the
31    transaction reporting return and tax  remittance  (if  a  tax
32    payment  was required) shall be credited by the Department to
33    the  proper  retailer's  account  with  the  Department,  but
34    without the 2.1% or  1.75%  discount  provided  for  in  this
                            -28-               LRB9007347KDpc
 1    Section  being  allowed.  When the user pays the tax directly
 2    to the Department, he shall pay the tax in  the  same  amount
 3    and in the same form in which it would be remitted if the tax
 4    had been remitted to the Department by the retailer.
 5        Where  a  retailer  collects  the tax with respect to the
 6    selling price of tangible personal property  which  he  sells
 7    and  the  purchaser thereafter returns such tangible personal
 8    property and the retailer refunds the selling  price  thereof
 9    to  the  purchaser,  such  retailer shall also refund, to the
10    purchaser, the tax so  collected  from  the  purchaser.  When
11    filing his return for the period in which he refunds such tax
12    to  the  purchaser, the retailer may deduct the amount of the
13    tax so refunded by him to the purchaser from  any  other  use
14    tax  which  such  retailer may be required to pay or remit to
15    the Department, as shown by such return, if the amount of the
16    tax to be deducted was previously remitted to the  Department
17    by  such  retailer.   If  the  retailer  has  not  previously
18    remitted  the  amount  of  such  tax to the Department, he is
19    entitled to no deduction under this Act upon  refunding  such
20    tax to the purchaser.
21        Any  retailer  filing  a  return under this Section shall
22    also include (for the purpose  of  paying  tax  thereon)  the
23    total  tax  covered  by such return upon the selling price of
24    tangible personal property purchased by him at retail from  a
25    retailer, but as to which the tax imposed by this Act was not
26    collected  from  the  retailer  filing  such return, and such
27    retailer shall remit the amount of such tax to the Department
28    when filing such return.
29        If experience indicates such action  to  be  practicable,
30    the  Department  may  prescribe  and furnish a combination or
31    joint return which will enable retailers, who are required to
32    file  returns  hereunder  and  also  under   the   Retailers'
33    Occupation  Tax  Act,  to  furnish all the return information
34    required by both Acts on the one form.
                            -29-               LRB9007347KDpc
 1        Where the retailer has more than one business  registered
 2    with  the  Department  under separate registration under this
 3    Act, such retailer may not file each return that is due as  a
 4    single  return  covering  all such registered businesses, but
 5    shall  file  separate  returns  for  each   such   registered
 6    business.
 7        Beginning  January  1,  1990,  each  month the Department
 8    shall pay into the State and Local Sales Tax Reform  Fund,  a
 9    special  fund  in the State Treasury which is hereby created,
10    the net revenue realized for the preceding month from the  1%
11    tax  on  sales  of  food for human consumption which is to be
12    consumed off the  premises  where  it  is  sold  (other  than
13    alcoholic  beverages,  soft  drinks  and  food which has been
14    prepared for  immediate  consumption)  and  prescription  and
15    nonprescription  medicines,  drugs,  medical  appliances  and
16    insulin,  urine  testing materials, syringes and needles used
17    by diabetics.
18        Beginning January 1,  1990,  each  month  the  Department
19    shall  pay  into the County and Mass Transit District Fund 4%
20    of the net revenue realized for the preceding month from  the
21    6.25%  general rate on the selling price of tangible personal
22    property which is purchased outside Illinois at retail from a
23    retailer and which is titled or registered by  an  agency  of
24    this State's government.
25        Each  month  the Department shall pay into the County and
26    Mass Transit District Fund 20% the net revenue  realized  for
27    the  preceding  month  from  the  1.25% rate imposed upon the
28    selling price of any motor vehicle that is purchased  outside
29    Illinois  at retail by a lessor for purposes of leasing under
30    a lease subject to the Automobile Leasing Occupation and  Use
31    Tax  Act  and  which  is titled or registered by an agency of
32    this State's government.
33        Beginning January 1,  1990,  each  month  the  Department
34    shall  pay  into the State and Local Sales Tax Reform Fund, a
                            -30-               LRB9007347KDpc
 1    special fund in the State Treasury, 20% of  the  net  revenue
 2    realized  for the preceding month from the 6.25% general rate
 3    on the selling price of  tangible  personal  property,  other
 4    than  tangible  personal  property which is purchased outside
 5    Illinois at retail from a retailer and  which  is  titled  or
 6    registered by an agency of this State's government.
 7        Beginning  January  1,  1990,  each  month the Department
 8    shall pay into the Local Government Tax Fund 16% of  the  net
 9    revenue  realized  for  the  preceding  month  from the 6.25%
10    general rate  on  the  selling  price  of  tangible  personal
11    property which is purchased outside Illinois at retail from a
12    retailer  and  which  is titled or registered by an agency of
13    this State's government.
14        Each month  the  Department  shall  pay  into  the  Local
15    Government  Tax  Fund 80% of the net revenue realized for the
16    preceding month from the 1.25% rate imposed upon the  selling
17    price of any motor vehicle that is purchased outside Illinois
18    at  retail  by a lessor for purposes of leasing under a lease
19    subject to the Automobile Leasing Occupation and Use Tax  Act
20    and  which  is  titled  or  registered  by  an agency of this
21    State's government.
22        Of the remainder of the moneys received by the Department
23    pursuant to this Act, and including all  moneys  received  by
24    the  Department  under  Section  20 of the Automobile Leasing
25    Occupation and Use Tax Act and including all  of  the  moneys
26    received  pursuant  to  the  5% rate imposed upon the selling
27    price of any motor vehicle that is purchased from lessors  by
28    lessees  of such vehicles in connection with a lease that was
29    subject to the Automobile Leasing Occupation and Use Tax  Act
30       Of  the remainder of the moneys received by the Department
31    pursuant to this Act, (a) 1.75% thereof shall  be  paid  into
32    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
33    and on and after July 1, 1989, 3.8%  thereof  shall  be  paid
34    into  the  Build Illinois Fund; provided, however, that if in
                            -31-               LRB9007347KDpc
 1    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
 2    as the case may be, of the moneys received by the  Department
 3    and required to be paid into the Build Illinois Fund pursuant
 4    to  Section 3 of the Retailers' Occupation Tax Act, Section 9
 5    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
 6    Section 9 of the Service Occupation Tax Act, such Acts  being
 7    hereinafter  called the "Tax Acts" and such aggregate of 2.2%
 8    or 3.8%, as the case may  be,  of  moneys  being  hereinafter
 9    called  the  "Tax Act Amount", and (2) the amount transferred
10    to the Build Illinois Fund from the State and Local Sales Tax
11    Reform Fund shall be less than the  Annual  Specified  Amount
12    (as  defined  in  Section  3 of the Retailers' Occupation Tax
13    Act), an amount equal to the difference shall be  immediately
14    paid  into the Build Illinois Fund from other moneys received
15    by the Department pursuant  to  the  Tax  Acts;  and  further
16    provided,  that  if on the last business day of any month the
17    sum of (1) the Tax Act Amount required to be  deposited  into
18    the  Build  Illinois  Bond Account in the Build Illinois Fund
19    during such month and (2) the amount transferred during  such
20    month  to  the  Build  Illinois Fund from the State and Local
21    Sales Tax Reform Fund shall have been less than 1/12  of  the
22    Annual  Specified  Amount,  an amount equal to the difference
23    shall be immediately paid into the Build Illinois  Fund  from
24    other  moneys  received by the Department pursuant to the Tax
25    Acts; and, further provided,  that  in  no  event  shall  the
26    payments  required  under  the  preceding  proviso  result in
27    aggregate payments into the Build Illinois Fund  pursuant  to
28    this  clause (b) for any fiscal year in excess of the greater
29    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
30    for such fiscal year; and, further provided, that the amounts
31    payable into the Build Illinois Fund under  this  clause  (b)
32    shall be payable only until such time as the aggregate amount
33    on  deposit  under each trust indenture securing Bonds issued
34    and outstanding pursuant to the Build Illinois  Bond  Act  is
                            -32-               LRB9007347KDpc
 1    sufficient, taking into account any future investment income,
 2    to  fully provide, in accordance with such indenture, for the
 3    defeasance of or the payment of the principal of, premium, if
 4    any, and interest on the Bonds secured by such indenture  and
 5    on  any  Bonds  expected to be issued thereafter and all fees
 6    and costs payable with respect thereto, all as  certified  by
 7    the  Director  of  the  Bureau of the Budget.  If on the last
 8    business day of any month  in  which  Bonds  are  outstanding
 9    pursuant to the Build Illinois Bond Act, the aggregate of the
10    moneys  deposited  in  the Build Illinois Bond Account in the
11    Build Illinois Fund in such month  shall  be  less  than  the
12    amount  required  to  be  transferred  in such month from the
13    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
14    Retirement  and  Interest  Fund pursuant to Section 13 of the
15    Build Illinois Bond Act, an amount equal to  such  deficiency
16    shall  be  immediately paid from other moneys received by the
17    Department pursuant to the Tax Acts  to  the  Build  Illinois
18    Fund;  provided,  however, that any amounts paid to the Build
19    Illinois Fund in any fiscal year pursuant  to  this  sentence
20    shall be deemed to constitute payments pursuant to clause (b)
21    of  the  preceding  sentence  and  shall  reduce  the  amount
22    otherwise payable for such fiscal year pursuant to clause (b)
23    of  the  preceding  sentence.   The  moneys  received  by the
24    Department pursuant to this Act and required to be  deposited
25    into the Build Illinois Fund are subject to the pledge, claim
26    and charge set forth in Section 12 of the Build Illinois Bond
27    Act.
28        Subject  to  payment  of  amounts into the Build Illinois
29    Fund as  provided  in  the  preceding  paragraph  or  in  any
30    amendment  thereto hereafter enacted, the following specified
31    monthly  installment  of  the   amount   requested   in   the
32    certificate  of  the  Chairman  of  the Metropolitan Pier and
33    Exposition Authority provided  under  Section  8.25f  of  the
34    State  Finance  Act, but not in excess of the sums designated
                            -33-               LRB9007347KDpc
 1    as "Total Deposit", shall be deposited in the aggregate  from
 2    collections  under Section 9 of the Use Tax Act, Section 9 of
 3    the Service Use Tax Act, Section 9 of the Service  Occupation
 4    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
 5    into the  McCormick  Place  Expansion  Project  Fund  in  the
 6    specified fiscal years.
 7             Fiscal Year                   Total Deposit
 8                 1993                            $0
 9                 1994                        53,000,000
10                 1995                        58,000,000
11                 1996                        61,000,000
12                 1997                        64,000,000
13                 1998                        68,000,000
14                 1999                        71,000,000
15                 2000                        75,000,000
16                 2001                        80,000,000
17                 2002                        84,000,000
18                 2003                        89,000,000
19               2004 and                      93,000,000
20        each fiscal year
21        thereafter that bonds
22        are outstanding under
23        Section 13.2 of the
24        Metropolitan Pier and
25        Exposition Authority
26        Act.
27        Beginning  July 20, 1993 and in each month of each fiscal
28    year thereafter, one-eighth of the amount  requested  in  the
29    certificate  of  the  Chairman  of  the Metropolitan Pier and
30    Exposition Authority for that fiscal year,  less  the  amount
31    deposited  into the McCormick Place Expansion Project Fund by
32    the State Treasurer in the respective month under  subsection
33    (g)  of  Section  13  of the Metropolitan Pier and Exposition
34    Authority Act, plus cumulative deficiencies in  the  deposits
                            -34-               LRB9007347KDpc
 1    required  under  this  Section for previous months and years,
 2    shall be deposited into the McCormick Place Expansion Project
 3    Fund, until the full amount requested for  the  fiscal  year,
 4    but  not  in  excess  of the amount specified above as "Total
 5    Deposit", has been deposited.
 6        Subject to payment of amounts  into  the  Build  Illinois
 7    Fund  and the McCormick Place Expansion Project Fund pursuant
 8    to the preceding  paragraphs  or  in  any  amendment  thereto
 9    hereafter  enacted,  each month the Department shall pay into
10    the Local Government Distributive Fund .4% of the net revenue
11    realized for the preceding month from the 5% general rate, or
12    .4% of 80% of the net  revenue  realized  for  the  preceding
13    month from the 6.25% general rate, as the case may be, on the
14    selling  price  of  tangible  personal  property which amount
15    shall, subject to appropriation, be distributed  as  provided
16    in Section 2 of the State Revenue Sharing Act. No payments or
17    distributions pursuant to this paragraph shall be made if the
18    tax  imposed  by  this  Act  on  photoprocessing  products is
19    declared unconstitutional, or if the proceeds from  such  tax
20    are unavailable for distribution because of litigation.
21        Subject  to  payment  of  amounts into the Build Illinois
22    Fund, the McCormick Place Expansion  Project  Fund,  and  the
23    Local  Government Distributive Fund pursuant to the preceding
24    paragraphs or in any amendments  thereto  hereafter  enacted,
25    beginning  July  1, 1993, the Department shall each month pay
26    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
27    revenue  realized  for  the  preceding  month  from the 6.25%
28    general rate  on  the  selling  price  of  tangible  personal
29    property.
30        Of the remainder of the moneys received by the Department
31    pursuant  to  this  Act,  75%  thereof shall be paid into the
32    State Treasury and 25% shall be reserved in a special account
33    and used only for the transfer to the Common School  Fund  as
34    part of the monthly transfer from the General Revenue Fund in
                            -35-               LRB9007347KDpc
 1    accordance with Section 8a of the State Finance Act.
 2        As  soon  as  possible after the first day of each month,
 3    upon  certification  of  the  Department  of   Revenue,   the
 4    Comptroller  shall  order transferred and the Treasurer shall
 5    transfer from the General Revenue Fund to the Motor Fuel  Tax
 6    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
 7    realized under this  Act  for  the  second  preceding  month;
 8    except  that  this  transfer shall not be made for the months
 9    February through June of 1992.
10        Net revenue realized for a month  shall  be  the  revenue
11    collected  by the State pursuant to this Act, less the amount
12    paid out during  that  month  as  refunds  to  taxpayers  for
13    overpayment of liability.
14        For  greater simplicity of administration, manufacturers,
15    importers and wholesalers whose products are sold  at  retail
16    in Illinois by numerous retailers, and who wish to do so, may
17    assume  the  responsibility  for accounting and paying to the
18    Department all tax accruing under this Act  with  respect  to
19    such  sales,  if  the  retailers who are affected do not make
20    written objection to the Department to this arrangement.
21    (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
22        (Text of Section after amendment by P.A. 90-491)
23        Sec.  9.  Except  as  to  motor   vehicles,   watercraft,
24    aircraft,  and  trailers  that  are required to be registered
25    with an agency of  this  State,  each  retailer  required  or
26    authorized  to  collect the tax imposed by this Act shall pay
27    to the Department the amount of such tax (except as otherwise
28    provided) at the time when he is required to file his  return
29    for  the  period  during which such tax was collected, less a
30    discount of 2.1% prior to January 1, 1990, and 1.75%  on  and
31    after  January 1, 1990, or $5 per calendar year, whichever is
32    greater, which is  allowed  to  reimburse  the  retailer  for
33    expenses  incurred  in  collecting  the tax, keeping records,
34    preparing and filing returns, remitting the tax and supplying
                            -36-               LRB9007347KDpc
 1    data to the Department on request.  In the case of  retailers
 2    who  report  and  pay the tax on a transaction by transaction
 3    basis, as provided in this Section, such  discount  shall  be
 4    taken  with  each  such  tax  remittance instead of when such
 5    retailer files his periodic  return.   A  retailer  need  not
 6    remit  that  part  of  any tax collected by him to the extent
 7    that he is required to remit and does remit the  tax  imposed
 8    by  the  Retailers'  Occupation  Tax Act, with respect to the
 9    sale of the same property.
10        Where such tangible personal property  is  sold  under  a
11    conditional  sales  contract, or under any other form of sale
12    wherein the payment of the principal sum, or a part  thereof,
13    is  extended  beyond  the  close  of the period for which the
14    return is filed, the retailer, in collecting the tax  (except
15    as to motor vehicles, watercraft, aircraft, and trailers that
16    are  required to be registered with an agency of this State),
17    may  collect  for  each  tax  return  period,  only  the  tax
18    applicable  to  that  part  of  the  selling  price  actually
19    received during such tax return period.
20        Except as provided in this  Section,  on  or  before  the
21    twentieth  day  of  each  calendar month, such retailer shall
22    file a return for the preceding calendar month.  Such  return
23    shall  be  filed  on  forms  prescribed by the Department and
24    shall  furnish  such  information  as  the   Department   may
25    reasonably require.
26        The  Department  may  require  returns  to  be filed on a
27    quarterly basis.  If so required, a return for each  calendar
28    quarter  shall be filed on or before the twentieth day of the
29    calendar month following the end of  such  calendar  quarter.
30    The taxpayer shall also file a return with the Department for
31    each  of the first two months of each calendar quarter, on or
32    before the twentieth day of  the  following  calendar  month,
33    stating:
34             1.  The name of the seller;
                            -37-               LRB9007347KDpc
 1             2.  The  address  of the principal place of business
 2        from which he engages in the business of selling tangible
 3        personal property at retail in this State;
 4             3.  The total amount of taxable receipts received by
 5        him during the preceding calendar  month  from  sales  of
 6        tangible  personal  property by him during such preceding
 7        calendar month, including receipts from charge  and  time
 8        sales, but less all deductions allowed by law;
 9             4.  The  amount  of credit provided in Section 2d of
10        this Act;
11             5.  The amount of tax due;
12             5-5.  The signature of the taxpayer; and
13             6.  Such  other  reasonable   information   as   the
14        Department may require.
15        If a taxpayer fails to sign a return within 30 days after
16    the proper notice and demand for signature by the Department,
17    the  return shall be considered valid and any amount shown to
18    be due on the return shall be deemed assessed.
19        Beginning October 1, 1993, a taxpayer who has an  average
20    monthly  tax  liability  of  $150,000  or more shall make all
21    payments required by rules of the  Department  by  electronic
22    funds transfer. Beginning October 1, 1994, a taxpayer who has
23    an  average  monthly  tax liability of $100,000 or more shall
24    make all payments required by  rules  of  the  Department  by
25    electronic  funds  transfer.  Beginning  October  1,  1995, a
26    taxpayer who has an average monthly tax liability of  $50,000
27    or  more  shall  make  all  payments required by rules of the
28    Department by electronic funds transfer.  The  term  "average
29    monthly  tax  liability"  means  the  sum  of  the taxpayer's
30    liabilities under this Act, and under  all  other  State  and
31    local  occupation  and  use  tax  laws  administered  by  the
32    Department,  for  the  immediately  preceding  calendar  year
33    divided by 12.
34        Before  August  1  of  each  year  beginning in 1993, the
                            -38-               LRB9007347KDpc
 1    Department  shall  notify  all  taxpayers  required  to  make
 2    payments by electronic funds transfer. All taxpayers required
 3    to make payments by  electronic  funds  transfer  shall  make
 4    those payments for a minimum of one year beginning on October
 5    1.
 6        Any  taxpayer not required to make payments by electronic
 7    funds transfer may make payments by electronic funds transfer
 8    with the permission of the Department.
 9        All taxpayers required  to  make  payment  by  electronic
10    funds  transfer  and  any taxpayers authorized to voluntarily
11    make payments by electronic funds transfer shall  make  those
12    payments in the manner authorized by the Department.
13        The Department shall adopt such rules as are necessary to
14    effectuate  a  program  of  electronic funds transfer and the
15    requirements of this Section.
16        If the taxpayer's average monthly tax  liability  to  the
17    Department under this Act, the Retailers' Occupation Tax Act,
18    the  Service  Occupation Tax Act, the Service Use Tax Act was
19    $10,000 or more during  the  preceding  4  complete  calendar
20    quarters,  he  shall  file  a return with the Department each
21    month by the 20th day of the month next following  the  month
22    during  which  such  tax liability is incurred and shall make
23    payments to the Department on or before the 7th,  15th,  22nd
24    and  last  day  of  the  month during which such liability is
25    incurred.  If the month during which such  tax  liability  is
26    incurred  began  prior to January 1, 1985, each payment shall
27    be in an  amount  equal  to  1/4  of  the  taxpayer's  actual
28    liability  for  the  month or an amount set by the Department
29    not to exceed 1/4 of the average  monthly  liability  of  the
30    taxpayer  to  the  Department  for  the  preceding 4 complete
31    calendar quarters (excluding the month of  highest  liability
32    and  the month of lowest liability in such 4 quarter period).
33    If the month during which  such  tax  liability  is  incurred
34    begins  on  or after January 1, 1985, and prior to January 1,
                            -39-               LRB9007347KDpc
 1    1987, each payment shall be in an amount equal  to  22.5%  of
 2    the taxpayer's actual liability for the month or 27.5% of the
 3    taxpayer's  liability  for  the  same  calendar  month of the
 4    preceding year.  If the month during which such tax liability
 5    is incurred begins on or after January 1, 1987, and prior  to
 6    January  1, 1988, each payment shall be in an amount equal to
 7    22.5% of the taxpayer's actual liability  for  the  month  or
 8    26.25%  of  the  taxpayer's  liability  for the same calendar
 9    month of the preceding year.  If the month during which  such
10    tax liability is incurred begins on or after January 1, 1988,
11    and  prior  to January 1, 1989, or begins on or after January
12    1, 1996, each payment shall be in an amount equal to 22.5% of
13    the taxpayer's actual liability for the month or 25%  of  the
14    taxpayer's  liability  for  the  same  calendar  month of the
15    preceding year.  If the month during which such tax liability
16    is incurred begins on or after January 1, 1989, and prior  to
17    January  1, 1996, each payment shall be in an amount equal to
18    22.5% of the taxpayer's actual liability for the month or 25%
19    of the taxpayer's liability for the same  calendar  month  of
20    the preceding year or 100% of the taxpayer's actual liability
21    for the quarter monthly reporting period.  The amount of such
22    quarter  monthly payments shall be credited against the final
23    tax liability of the taxpayer's return for that month.   Once
24    applicable,  the requirement of the making of quarter monthly
25    payments  to  the  Department  shall  continue   until   such
26    taxpayer's average monthly liability to the Department during
27    the  preceding  4  complete  calendar quarters (excluding the
28    month of highest liability and the month of lowest liability)
29    is less than $9,000, or until such taxpayer's average monthly
30    liability to the Department as  computed  for  each  calendar
31    quarter  of  the 4 preceding complete calendar quarter period
32    is less than $10,000.  However, if a taxpayer  can  show  the
33    Department  that  a  substantial  change  in  the  taxpayer's
34    business has occurred which causes the taxpayer to anticipate
                            -40-               LRB9007347KDpc
 1    that  his  average  monthly  tax liability for the reasonably
 2    foreseeable  future  will  fall  below  $10,000,  then   such
 3    taxpayer  may  petition  the  Department  for  change in such
 4    taxpayer's reporting status.   The  Department  shall  change
 5    such  taxpayer's  reporting  status unless it finds that such
 6    change is seasonal in nature and not likely to be long  term.
 7    If  any  such quarter monthly payment is not paid at the time
 8    or in the amount required by this Section, then the  taxpayer
 9    shall  be liable for penalties and interest on the difference
10    between the minimum amount due and the amount of such quarter
11    monthly payment actually and timely paid, except  insofar  as
12    the  taxpayer  has previously made payments for that month to
13    the Department in excess of the minimum  payments  previously
14    due  as  provided in this Section.  The Department shall make
15    reasonable  rules  and  regulations  to  govern  the  quarter
16    monthly payment amount and quarter monthly payment dates  for
17    taxpayers who file on other than a calendar monthly basis.
18        If  any such payment provided for in this Section exceeds
19    the taxpayer's liabilities under  this  Act,  the  Retailers'
20    Occupation  Tax  Act,  the Service Occupation Tax Act and the
21    Service Use Tax Act, as shown by an original monthly  return,
22    the   Department   shall  issue  to  the  taxpayer  a  credit
23    memorandum no later than 30 days after the date  of  payment,
24    which  memorandum  may  be  submitted  by the taxpayer to the
25    Department in payment of tax  liability  subsequently  to  be
26    remitted  by the taxpayer to the Department or be assigned by
27    the taxpayer to  a  similar  taxpayer  under  this  Act,  the
28    Retailers' Occupation Tax Act, the Service Occupation Tax Act
29    or  the  Service  Use  Tax Act, in accordance with reasonable
30    rules and regulations to be  prescribed  by  the  Department,
31    except  that  if  such excess payment is shown on an original
32    monthly return and is made after December 31, 1986, no credit
33    memorandum shall be issued, unless requested by the taxpayer.
34    If no such request is made,  the  taxpayer  may  credit  such
                            -41-               LRB9007347KDpc
 1    excess  payment  against  tax  liability  subsequently  to be
 2    remitted by the taxpayer to the Department  under  this  Act,
 3    the Retailers' Occupation Tax Act, the Service Occupation Tax
 4    Act or the Service Use Tax Act, in accordance with reasonable
 5    rules  and  regulations prescribed by the Department.  If the
 6    Department subsequently determines that all or  any  part  of
 7    the  credit  taken  was not actually due to the taxpayer, the
 8    taxpayer's 2.1% or 1.75% vendor's discount shall  be  reduced
 9    by  2.1%  or 1.75% of the difference between the credit taken
10    and that actually due, and the taxpayer shall be  liable  for
11    penalties and interest on such difference.
12        If  the  retailer is otherwise required to file a monthly
13    return and if the retailer's average monthly tax liability to
14    the Department does  not  exceed  $200,  the  Department  may
15    authorize  his returns to be filed on a quarter annual basis,
16    with the return for January, February, and March of  a  given
17    year  being due by April 20 of such year; with the return for
18    April, May and June of a given year being due by July  20  of
19    such  year; with the return for July, August and September of
20    a given year being due by October 20 of such year,  and  with
21    the return for October, November and December of a given year
22    being due by January 20 of the following year.
23        If  the  retailer is otherwise required to file a monthly
24    or quarterly return and if the retailer's average monthly tax
25    liability  to  the  Department  does  not  exceed  $50,   the
26    Department may authorize his returns to be filed on an annual
27    basis,  with the return for a given year being due by January
28    20 of the following year.
29        Such quarter annual and annual returns, as  to  form  and
30    substance,  shall  be  subject  to  the  same requirements as
31    monthly returns.
32        Notwithstanding  any  other   provision   in   this   Act
33    concerning  the  time  within  which  a retailer may file his
34    return, in the case of any retailer who ceases to engage in a
                            -42-               LRB9007347KDpc
 1    kind of business  which  makes  him  responsible  for  filing
 2    returns  under  this  Act,  such  retailer shall file a final
 3    return under this Act with the Department not more  than  one
 4    month after discontinuing such business.
 5        In  addition, with respect to motor vehicles, watercraft,
 6    aircraft, and trailers that are  required  to  be  registered
 7    with  an  agency  of  this State, every retailer selling this
 8    kind of tangible  personal  property  shall  file,  with  the
 9    Department,  upon a form to be prescribed and supplied by the
10    Department, a separate return for each such item of  tangible
11    personal  property  which  the  retailer  sells,  except that
12    where, in the  same  transaction,  a  retailer  of  aircraft,
13    watercraft,  motor  vehicles  or trailers transfers more than
14    one aircraft, watercraft, motor vehicle or trailer to another
15    aircraft, watercraft, motor vehicle or trailer  retailer  for
16    the  purpose of resale, that seller for resale may report the
17    transfer of all the aircraft, watercraft, motor  vehicles  or
18    trailers  involved  in  that transaction to the Department on
19    the same uniform invoice-transaction reporting  return  form.
20    For  purposes  of this Section, "watercraft" means a Class 2,
21    Class 3, or Class 4 watercraft as defined in Section  3-2  of
22    the  Boat Registration and Safety Act, a personal watercraft,
23    or any boat equipped with an inboard motor.
24        The transaction reporting return in  the  case  of  motor
25    vehicles  or trailers that are required to be registered with
26    an agency of this State, shall be the same  document  as  the
27    Uniform  Invoice referred to in Section 5-402 of the Illinois
28    Vehicle Code and must  show  the  name  and  address  of  the
29    seller;  the name and address of the purchaser; the amount of
30    the  selling  price  including  the  amount  allowed  by  the
31    retailer for traded-in property, if any; the  amount  allowed
32    by the retailer for the traded-in tangible personal property,
33    if  any,  to the extent to which Section 2 of this Act allows
34    an exemption for the value of traded-in property; the balance
                            -43-               LRB9007347KDpc
 1    payable after deducting  such  trade-in  allowance  from  the
 2    total  selling price; the amount of tax due from the retailer
 3    with respect to such transaction; the amount of tax collected
 4    from the purchaser by the retailer on  such  transaction  (or
 5    satisfactory  evidence  that  such  tax  is  not  due in that
 6    particular instance, if that is claimed to be the fact);  the
 7    place  and  date  of the sale; a sufficient identification of
 8    the property sold; such other information as is  required  in
 9    Section  5-402  of  the Illinois Vehicle Code, and such other
10    information as the Department may reasonably require.
11        The  transaction  reporting  return  in   the   case   of
12    watercraft and aircraft must show the name and address of the
13    seller;  the name and address of the purchaser; the amount of
14    the  selling  price  including  the  amount  allowed  by  the
15    retailer for traded-in property, if any; the  amount  allowed
16    by the retailer for the traded-in tangible personal property,
17    if  any,  to the extent to which Section 2 of this Act allows
18    an exemption for the value of traded-in property; the balance
19    payable after deducting  such  trade-in  allowance  from  the
20    total  selling price; the amount of tax due from the retailer
21    with respect to such transaction; the amount of tax collected
22    from the purchaser by the retailer on  such  transaction  (or
23    satisfactory  evidence  that  such  tax  is  not  due in that
24    particular instance, if that is claimed to be the fact);  the
25    place  and  date  of the sale, a sufficient identification of
26    the  property  sold,  and  such  other  information  as   the
27    Department may reasonably require.
28        Such  transaction  reporting  return  shall  be filed not
29    later than 20 days after the date of  delivery  of  the  item
30    that  is  being sold, but may be filed by the retailer at any
31    time  sooner  than  that  if  he  chooses  to  do  so.    The
32    transaction  reporting  return and tax remittance or proof of
33    exemption from the tax that is imposed by  this  Act  may  be
34    transmitted to the Department by way of the State agency with
                            -44-               LRB9007347KDpc
 1    which,  or  State  officer  with  whom, the tangible personal
 2    property  must  be  titled  or  registered  (if  titling   or
 3    registration  is  required) if the Department and such agency
 4    or State officer determine that this procedure will  expedite
 5    the processing of applications for title or registration.
 6        With each such transaction reporting return, the retailer
 7    shall  remit  the  proper  amount of tax due (or shall submit
 8    satisfactory evidence that the sale is not taxable if that is
 9    the case), to the Department or  its  agents,  whereupon  the
10    Department  shall  issue,  in  the  purchaser's  name,  a tax
11    receipt (or a certificate of exemption if the  Department  is
12    satisfied  that the particular sale is tax exempt) which such
13    purchaser may submit to  the  agency  with  which,  or  State
14    officer  with  whom,  he  must title or register the tangible
15    personal  property  that   is   involved   (if   titling   or
16    registration  is  required)  in  support  of such purchaser's
17    application for an Illinois certificate or other evidence  of
18    title or registration to such tangible personal property.
19        No  retailer's failure or refusal to remit tax under this
20    Act precludes a user, who has paid  the  proper  tax  to  the
21    retailer,  from  obtaining  his certificate of title or other
22    evidence of title or registration (if titling or registration
23    is required) upon satisfying the Department  that  such  user
24    has paid the proper tax (if tax is due) to the retailer.  The
25    Department  shall  adopt  appropriate  rules to carry out the
26    mandate of this paragraph.
27        If the user who would otherwise pay tax to  the  retailer
28    wants  the transaction reporting return filed and the payment
29    of tax or proof of exemption made to  the  Department  before
30    the  retailer  is willing to take these actions and such user
31    has not paid the tax to the retailer, such user  may  certify
32    to  the fact of such delay by the retailer, and may (upon the
33    Department   being   satisfied   of   the   truth   of   such
34    certification)  transmit  the  information  required  by  the
                            -45-               LRB9007347KDpc
 1    transaction reporting return and the remittance  for  tax  or
 2    proof  of exemption directly to the Department and obtain his
 3    tax receipt or exemption determination, in  which  event  the
 4    transaction  reporting  return  and  tax remittance (if a tax
 5    payment was required) shall be credited by the Department  to
 6    the  proper  retailer's  account  with  the  Department,  but
 7    without  the  2.1%  or  1.75%  discount  provided for in this
 8    Section being allowed.  When the user pays the  tax  directly
 9    to  the  Department,  he shall pay the tax in the same amount
10    and in the same form in which it would be remitted if the tax
11    had been remitted to the Department by the retailer.
12        Where a retailer collects the tax  with  respect  to  the
13    selling  price  of  tangible personal property which he sells
14    and the purchaser thereafter returns such  tangible  personal
15    property  and  the retailer refunds the selling price thereof
16    to the purchaser, such retailer shall  also  refund,  to  the
17    purchaser,  the  tax  so  collected  from the purchaser. When
18    filing his return for the period in which he refunds such tax
19    to the purchaser, the retailer may deduct the amount  of  the
20    tax  so  refunded  by him to the purchaser from any other use
21    tax which such retailer may be required to pay  or  remit  to
22    the Department, as shown by such return, if the amount of the
23    tax  to be deducted was previously remitted to the Department
24    by  such  retailer.   If  the  retailer  has  not  previously
25    remitted the amount of such tax  to  the  Department,  he  is
26    entitled  to  no deduction under this Act upon refunding such
27    tax to the purchaser.
28        Any retailer filing a return  under  this  Section  shall
29    also  include  (for  the  purpose  of paying tax thereon) the
30    total tax covered by such return upon the  selling  price  of
31    tangible  personal property purchased by him at retail from a
32    retailer, but as to which the tax imposed by this Act was not
33    collected from the retailer  filing  such  return,  and  such
34    retailer shall remit the amount of such tax to the Department
                            -46-               LRB9007347KDpc
 1    when filing such return.
 2        If  experience  indicates  such action to be practicable,
 3    the Department may prescribe and  furnish  a  combination  or
 4    joint return which will enable retailers, who are required to
 5    file   returns   hereunder  and  also  under  the  Retailers'
 6    Occupation Tax Act, to furnish  all  the  return  information
 7    required by both Acts on the one form.
 8        Where  the retailer has more than one business registered
 9    with the Department under separate  registration  under  this
10    Act,  such retailer may not file each return that is due as a
11    single return covering all such  registered  businesses,  but
12    shall   file   separate  returns  for  each  such  registered
13    business.
14        Beginning January 1,  1990,  each  month  the  Department
15    shall  pay  into the State and Local Sales Tax Reform Fund, a
16    special fund in the State Treasury which is  hereby  created,
17    the  net revenue realized for the preceding month from the 1%
18    tax on sales of food for human consumption  which  is  to  be
19    consumed  off  the  premises  where  it  is  sold (other than
20    alcoholic beverages, soft drinks  and  food  which  has  been
21    prepared  for  immediate  consumption)  and  prescription and
22    nonprescription  medicines,  drugs,  medical  appliances  and
23    insulin, urine testing materials, syringes and  needles  used
24    by diabetics.
25        Beginning  January  1,  1990,  each  month the Department
26    shall pay into the County and Mass Transit District  Fund  4%
27    of  the net revenue realized for the preceding month from the
28    6.25% general rate on the selling price of tangible  personal
29    property which is purchased outside Illinois at retail from a
30    retailer  and  which  is titled or registered by an agency of
31    this State's government.
32        Each month the Department shall pay into the  County  and
33    Mass  Transit  District Fund 20% the net revenue realized for
34    the preceding month from the  1.25%  rate  imposed  upon  the
                            -47-               LRB9007347KDpc
 1    selling  price of any motor vehicle that is purchased outside
 2    Illinois at retail by a lessor for purposes of leasing  under
 3    a  lease subject to the Automobile Leasing Occupation and Use
 4    Tax Act and which is titled or registered  by  an  agency  of
 5    this State's government.
 6        Beginning  January  1,  1990,  each  month the Department
 7    shall pay into the State and Local Sales Tax Reform  Fund,  a
 8    special  fund  in  the State Treasury, 20% of the net revenue
 9    realized for the preceding month from the 6.25% general  rate
10    on  the  selling  price  of tangible personal property, other
11    than tangible personal property which  is  purchased  outside
12    Illinois  at  retail  from  a retailer and which is titled or
13    registered by an agency of this State's government.
14        Beginning January 1,  1990,  each  month  the  Department
15    shall  pay  into the Local Government Tax Fund 16% of the net
16    revenue realized for  the  preceding  month  from  the  6.25%
17    general  rate  on  the  selling  price  of  tangible personal
18    property which is purchased outside Illinois at retail from a
19    retailer and which is titled or registered by  an  agency  of
20    this State's government.
21        Each  month  the  Department  shall  pay  into  the Local
22    Government Tax Fund 80% of the net revenue realized  for  the
23    preceding  month from the 1.25% rate imposed upon the selling
24    price of any motor vehicle that is purchased outside Illinois
25    at retail by a lessor for purposes of leasing under  a  lease
26    subject  to the Automobile Leasing Occupation and Use Tax Act
27    and which is titled  or  registered  by  an  agency  of  this
28    State's government.
29        Of the remainder of the moneys received by the Department
30    pursuant  to  this  Act, and including all moneys received by
31    the Department under Section 20  of  the  Automobile  Leasing
32    Occupation  and  Use  Tax Act and including all of the moneys
33    received pursuant to the 5% rate  imposed  upon  the  selling
34    price  of any motor vehicle that is purchased from lessors by
                            -48-               LRB9007347KDpc
 1    lessees of such vehicles in connection with a lease that  was
 2    subject to the Automobile Leasing Occupation and Use Tax Act
 3        Of the remainder of the moneys received by the Department
 4    pursuant  to  this  Act, (a) 1.75% thereof shall be paid into
 5    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
 6    and  on  and  after  July 1, 1989, 3.8% thereof shall be paid
 7    into the Build Illinois Fund; provided, however, that  if  in
 8    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
 9    as  the case may be, of the moneys received by the Department
10    and required to be paid into the Build Illinois Fund pursuant
11    to Section 3 of the Retailers' Occupation Tax Act, Section  9
12    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
13    Section  9 of the Service Occupation Tax Act, such Acts being
14    hereinafter called the "Tax Acts" and such aggregate of  2.2%
15    or  3.8%,  as  the  case  may be, of moneys being hereinafter
16    called the "Tax Act Amount", and (2) the  amount  transferred
17    to the Build Illinois Fund from the State and Local Sales Tax
18    Reform  Fund  shall  be less than the Annual Specified Amount
19    (as defined in Section 3 of  the  Retailers'  Occupation  Tax
20    Act),  an amount equal to the difference shall be immediately
21    paid into the Build Illinois Fund from other moneys  received
22    by  the  Department  pursuant  to  the  Tax Acts; and further
23    provided, that if on the last business day of any  month  the
24    sum  of  (1) the Tax Act Amount required to be deposited into
25    the Build Illinois Bond Account in the  Build  Illinois  Fund
26    during  such month and (2) the amount transferred during such
27    month to the Build Illinois Fund from  the  State  and  Local
28    Sales  Tax  Reform Fund shall have been less than 1/12 of the
29    Annual Specified Amount, an amount equal  to  the  difference
30    shall  be  immediately paid into the Build Illinois Fund from
31    other moneys received by the Department pursuant to  the  Tax
32    Acts;  and,  further  provided,  that  in  no event shall the
33    payments required  under  the  preceding  proviso  result  in
34    aggregate  payments  into the Build Illinois Fund pursuant to
                            -49-               LRB9007347KDpc
 1    this clause (b) for any fiscal year in excess of the  greater
 2    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
 3    for such fiscal year; and, further provided, that the amounts
 4    payable  into  the  Build Illinois Fund under this clause (b)
 5    shall be payable only until such time as the aggregate amount
 6    on deposit under each trust indenture securing  Bonds  issued
 7    and  outstanding  pursuant  to the Build Illinois Bond Act is
 8    sufficient, taking into account any future investment income,
 9    to fully provide, in accordance with such indenture, for  the
10    defeasance of or the payment of the principal of, premium, if
11    any,  and interest on the Bonds secured by such indenture and
12    on any Bonds expected to be issued thereafter  and  all  fees
13    and  costs  payable with respect thereto, all as certified by
14    the Director of the Bureau of the Budget.   If  on  the  last
15    business  day  of  any  month  in which Bonds are outstanding
16    pursuant to the Build Illinois Bond Act, the aggregate of the
17    moneys deposited in the Build Illinois Bond  Account  in  the
18    Build  Illinois  Fund  in  such  month shall be less than the
19    amount required to be transferred  in  such  month  from  the
20    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
21    Retirement and Interest Fund pursuant to Section  13  of  the
22    Build  Illinois  Bond Act, an amount equal to such deficiency
23    shall be immediately paid from other moneys received  by  the
24    Department  pursuant  to  the  Tax Acts to the Build Illinois
25    Fund; provided, however, that any amounts paid to  the  Build
26    Illinois  Fund  in  any fiscal year pursuant to this sentence
27    shall be deemed to constitute payments pursuant to clause (b)
28    of  the  preceding  sentence  and  shall  reduce  the  amount
29    otherwise payable for such fiscal year pursuant to clause (b)
30    of the  preceding  sentence.   The  moneys  received  by  the
31    Department  pursuant to this Act and required to be deposited
32    into the Build Illinois Fund are subject to the pledge, claim
33    and charge set forth in Section 12 of the Build Illinois Bond
34    Act.
                            -50-               LRB9007347KDpc
 1        Subject to payment of amounts  into  the  Build  Illinois
 2    Fund  as  provided  in  the  preceding  paragraph  or  in any
 3    amendment thereto hereafter enacted, the following  specified
 4    monthly   installment   of   the   amount  requested  in  the
 5    certificate of the Chairman  of  the  Metropolitan  Pier  and
 6    Exposition  Authority  provided  under  Section  8.25f of the
 7    State Finance Act, but not in excess of the  sums  designated
 8    as  "Total Deposit", shall be deposited in the aggregate from
 9    collections under Section 9 of the Use Tax Act, Section 9  of
10    the  Service Use Tax Act, Section 9 of the Service Occupation
11    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
12    into  the  McCormick  Place  Expansion  Project  Fund  in the
13    specified fiscal years.
14             Fiscal Year                   Total Deposit
15                 1993                            $0
16                 1994                        53,000,000
17                 1995                        58,000,000
18                 1996                        61,000,000
19                 1997                        64,000,000
20                 1998                        68,000,000
21                 1999                        71,000,000
22                 2000                        75,000,000
23                 2001                        80,000,000
24                 2002                        84,000,000
25                 2003                        89,000,000
26               2004 and                      93,000,000
27        each fiscal year
28        thereafter that bonds
29        are outstanding under
30        Section 13.2 of the
31        Metropolitan Pier and
32        Exposition Authority
33        Act.
34        Beginning July 20, 1993 and in each month of each  fiscal
                            -51-               LRB9007347KDpc
 1    year  thereafter,  one-eighth  of the amount requested in the
 2    certificate of the Chairman  of  the  Metropolitan  Pier  and
 3    Exposition  Authority  for  that fiscal year, less the amount
 4    deposited into the McCormick Place Expansion Project Fund  by
 5    the  State Treasurer in the respective month under subsection
 6    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
 7    Authority  Act,  plus cumulative deficiencies in the deposits
 8    required under this Section for previous  months  and  years,
 9    shall be deposited into the McCormick Place Expansion Project
10    Fund,  until  the  full amount requested for the fiscal year,
11    but not in excess of the amount  specified  above  as  "Total
12    Deposit", has been deposited.
13        Subject  to  payment  of  amounts into the Build Illinois
14    Fund and the McCormick Place Expansion Project Fund  pursuant
15    to  the  preceding  paragraphs  or  in  any amendment thereto
16    hereafter enacted, each month the Department shall  pay  into
17    the Local Government Distributive Fund .4% of the net revenue
18    realized for the preceding month from the 5% general rate, or
19    .4%  of  80%  of  the  net revenue realized for the preceding
20    month from the 6.25% general rate, as the case may be, on the
21    selling price of  tangible  personal  property  which  amount
22    shall,  subject  to appropriation, be distributed as provided
23    in Section 2 of the State Revenue Sharing Act. No payments or
24    distributions pursuant to this paragraph shall be made if the
25    tax imposed  by  this  Act  on  photoprocessing  products  is
26    declared  unconstitutional,  or if the proceeds from such tax
27    are unavailable for distribution because of litigation.
28        Subject to payment of amounts  into  the  Build  Illinois
29    Fund,  the  McCormick  Place  Expansion Project Fund, and the
30    Local Government Distributive Fund pursuant to the  preceding
31    paragraphs  or  in  any amendments thereto hereafter enacted,
32    beginning July 1, 1993, the Department shall each  month  pay
33    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
34    revenue realized for  the  preceding  month  from  the  6.25%
                            -52-               LRB9007347KDpc
 1    general  rate  on  the  selling  price  of  tangible personal
 2    property.
 3        Of the remainder of the moneys received by the Department
 4    pursuant to this Act, 75% thereof  shall  be  paid  into  the
 5    State Treasury and 25% shall be reserved in a special account
 6    and  used  only for the transfer to the Common School Fund as
 7    part of the monthly transfer from the General Revenue Fund in
 8    accordance with Section 8a of the State Finance Act.
 9        As soon as possible after the first day  of  each  month,
10    upon   certification   of  the  Department  of  Revenue,  the
11    Comptroller shall order transferred and the  Treasurer  shall
12    transfer  from the General Revenue Fund to the Motor Fuel Tax
13    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
14    realized  under  this  Act  for  the  second preceding month;
15    except that this transfer shall not be made  for  the  months
16    February through June of 1992.
17        Net  revenue  realized  for  a month shall be the revenue
18    collected by the State pursuant to this Act, less the  amount
19    paid  out  during  that  month  as  refunds  to taxpayers for
20    overpayment of liability.
21        For greater simplicity of administration,  manufacturers,
22    importers  and  wholesalers whose products are sold at retail
23    in Illinois by numerous retailers, and who wish to do so, may
24    assume the responsibility for accounting and  paying  to  the
25    Department  all  tax  accruing under this Act with respect to
26    such sales, if the retailers who are  affected  do  not  make
27    written objection to the Department to this arrangement.
28    (Source: P.A.  89-379,  eff.  1-1-96;  89-626,  eff.  8-9-96;
29    90-491, eff. 1-1-99.)
30        Section 90.  The Retailers' Occupation Tax Act is amended
31    by changing Sections 1c, 2-10, and 3 as follows:
32        (35 ILCS 120/1c) (from Ch. 120, par. 440c)
                            -53-               LRB9007347KDpc
 1        Sec.  1c.  A  person  who  is  engaged in the business of
 2    leasing or renting motor  vehicles  to  others  and  who,  in
 3    connection with such business sells any used motor vehicle to
 4    a purchaser for his use and not for the purpose of resale, is
 5    a  retailer  engaged  in  the  business  of  selling tangible
 6    personal property at retail under this Act to the  extent  of
 7    the  value  of  the  vehicle  sold.  For  the purpose of this
 8    Section, "motor vehicle" means any motor vehicle of the first
 9    division, a motor vehicle of the second division which  is  a
10    self-contained   motor   vehicle   designed   or  permanently
11    converted  to  provide  living  quarters  for   recreational,
12    camping or travel use, with direct walk through access to the
13    living quarters from the driver's seat, or a motor vehicle of
14    a  second division which is of the van configuration designed
15    for the transportation of not less than 7 nor  more  than  16
16    passengers,  as  defined  in  Section  1-146  of the Illinois
17    Vehicle Code. For the purpose of this Section "motor vehicle"
18    has the meaning prescribed in Section 1-157 of  The  Illinois
19    Vehicle Code, as now or hereafter amended.  (Nothing provided
20    herein shall affect liability incurred under this Act because
21    of the sale at retail of such motor vehicles to a lessor.)
22    (Source: P.A. 80-598.)
23        (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
24        Sec.  2-10.  Rate  of  tax.  Unless otherwise provided in
25    this Section, the tax imposed by this Act is at the  rate  of
26    6.25%  of  gross  receipts  from  sales  of tangible personal
27    property made in the course of business.
28        With respect to gasohol, as defined in the Use  Tax  Act,
29    the tax imposed by this Act applies to 70% of the proceeds of
30    sales  made  on  or after January 1, 1990, and before July 1,
31    1999, and to 100% of the proceeds of sales  made  thereafter,
32    except that from July 1, 1997 to July 1, 1999, the rate shall
33    be  85%  for  gasohol sold in this State during the 12 months
                            -54-               LRB9007347KDpc
 1    beginning July 1 following any calendar year  for  which  the
 2    Department  has determined that the percentages in Section 10
 3    of the Gasohol Fuels Tax Abatement Act have not been met.
 4        With respect to food for human consumption that is to  be
 5    consumed  off  the  premises  where  it  is  sold (other than
 6    alcoholic beverages, soft drinks,  and  food  that  has  been
 7    prepared  for  immediate  consumption)  and  prescription and
 8    nonprescription   medicines,   drugs,   medical   appliances,
 9    modifications to a motor vehicle for the purpose of rendering
10    it usable by a disabled person, and  insulin,  urine  testing
11    materials, syringes, and needles used by diabetics, for human
12    use,  the  tax is imposed at the rate of 1%. For the purposes
13    of this Section, the term "soft drinks" means  any  complete,
14    finished,    ready-to-use,   non-alcoholic   drink,   whether
15    carbonated or not, including but not limited to  soda  water,
16    cola, fruit juice, vegetable juice, carbonated water, and all
17    other  preparations commonly known as soft drinks of whatever
18    kind or description that  are  contained  in  any  closed  or
19    sealed bottle, can, carton, or container, regardless of size.
20    "Soft  drinks"  does  not include coffee, tea, non-carbonated
21    water, infant formula, milk or milk products  as  defined  in
22    the Grade A Pasteurized Milk and Milk Products Act, or drinks
23    containing 50% or more natural fruit or vegetable juice.
24        Notwithstanding  any  other provisions of this Act, "food
25    for human consumption that is to be consumed off the premises
26    where it is sold" includes all food sold  through  a  vending
27    machine,  except  soft  drinks  and  food  products  that are
28    dispensed hot from  a  vending  machine,  regardless  of  the
29    location of the vending machine.
30        With  respect  to  any  motor vehicle (as the term "motor
31    vehicle" is defined in Section 1c of this Act) that  is  sold
32    to  a lessor for purposes of leasing under a lease subject to
33    the Automobile Leasing Occupation and Use Tax Act, the tax is
34    imposed at the rate of 1.25%.
                            -55-               LRB9007347KDpc
 1        With respect to any motor vehicle  (as  the  term  "motor
 2    vehicle"  is defined in Section 1c of this Act) that has been
 3    leased by a lessor to a lessee under a lease that is  subject
 4    to  the Automobile Leasing Occupation and Use Tax Act, and is
 5    subsequently sold to the lessee of such vehicle, the  tax  is
 6    imposed at the rate of 5%.
 7    (Source:  P.A.  89-359,  eff.  8-17-95;  89-420, eff. 6-1-96;
 8    89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
 9        (35 ILCS 120/3) (from Ch. 120, par. 442)
10        (Text of Section before amendment by P.A. 90-491)
11        Sec. 3.  Except as provided in this Section, on or before
12    the twentieth  day  of  each  calendar  month,  every  person
13    engaged in the business of selling tangible personal property
14    at  retail  in this State during the preceding calendar month
15    shall file a return with the Department, stating:
16             1.  The name of the seller;
17             2.  His residence address and  the  address  of  his
18        principal  place  of  business  and  the  address  of the
19        principal place of  business  (if  that  is  a  different
20        address) from which he engages in the business of selling
21        tangible personal property at retail in this State;
22             3.  Total  amount of receipts received by him during
23        the preceding calendar month or quarter, as the case  may
24        be,  from  sales  of tangible personal property, and from
25        services furnished, by him during such preceding calendar
26        month or quarter;
27             4.  Total  amount  received  by   him   during   the
28        preceding  calendar  month  or quarter on charge and time
29        sales of tangible personal property,  and  from  services
30        furnished, by him prior to the month or quarter for which
31        the return is filed;
32             5.  Deductions allowed by law;
33             6.  Gross receipts which were received by him during
                            -56-               LRB9007347KDpc
 1        the  preceding  calendar  month  or  quarter and upon the
 2        basis of which the tax is imposed;
 3             7.  The amount of credit provided in Section  2d  of
 4        this Act;
 5             8.  The amount of tax due;
 6             9.  The signature of the taxpayer; and
 7             10.  Such   other   reasonable  information  as  the
 8        Department may require.
 9        If a taxpayer fails to sign a return within 30 days after
10    the proper notice and demand for signature by the Department,
11    the return shall be considered valid and any amount shown  to
12    be due on the return shall be deemed assessed.
13        Each  return  shall  be  accompanied  by the statement of
14    prepaid tax issued pursuant to Section 2e for which credit is
15    claimed.
16        A retailer may accept a  Manufacturer's  Purchase  Credit
17    certification  from a purchaser in satisfaction of Use Tax as
18    provided in Section 3-85 of the Use Tax Act if the  purchaser
19    provides the appropriate documentation as required by Section
20    3-85  of  the  Use Tax Act.  A Manufacturer's Purchase Credit
21    certification, accepted by a retailer as provided in  Section
22    3-85  of  the  Use  Tax  Act, may be used by that retailer to
23    satisfy Retailers' Occupation Tax  liability  in  the  amount
24    claimed  in  the  certification,  not  to exceed 6.25% of the
25    receipts subject to tax from a qualifying purchase.
26        The Department may require  returns  to  be  filed  on  a
27    quarterly  basis.  If so required, a return for each calendar
28    quarter shall be filed on or before the twentieth day of  the
29    calendar  month  following  the end of such calendar quarter.
30    The taxpayer shall also file a return with the Department for
31    each of the first two months of each calendar quarter, on  or
32    before  the  twentieth  day  of the following calendar month,
33    stating:
34             1.  The name of the seller;
                            -57-               LRB9007347KDpc
 1             2.  The address of the principal place  of  business
 2        from which he engages in the business of selling tangible
 3        personal property at retail in this State;
 4             3.  The total amount of taxable receipts received by
 5        him  during  the  preceding  calendar month from sales of
 6        tangible personal property by him during  such  preceding
 7        calendar  month,  including receipts from charge and time
 8        sales, but less all deductions allowed by law;
 9             4.  The amount of credit provided in Section  2d  of
10        this Act;
11             5.  The amount of tax due; and
12             6.  Such   other   reasonable   information  as  the
13        Department may require.
14        If a total amount of less than $1 is payable,  refundable
15    or creditable, such amount shall be disregarded if it is less
16    than  50 cents and shall be increased to $1 if it is 50 cents
17    or more.
18        Beginning October 1, 1993, a taxpayer who has an  average
19    monthly  tax  liability  of  $150,000  or more shall make all
20    payments required by rules of the  Department  by  electronic
21    funds  transfer.   Beginning  October 1, 1994, a taxpayer who
22    has an average monthly tax  liability  of  $100,000  or  more
23    shall  make  all payments required by rules of the Department
24    by electronic funds transfer.  Beginning October 1,  1995,  a
25    taxpayer  who has an average monthly tax liability of $50,000
26    or more shall make all payments  required  by  rules  of  the
27    Department  by  electronic funds transfer.  The term "average
28    monthly tax liability" shall be the  sum  of  the  taxpayer's
29    liabilities  under  this  Act,  and under all other State and
30    local  occupation  and  use  tax  laws  administered  by  the
31    Department,  for  the  immediately  preceding  calendar  year
32    divided by 12.
33        Before August 1 of  each  year  beginning  in  1993,  the
34    Department  shall  notify  all  taxpayers  required  to  make
                            -58-               LRB9007347KDpc
 1    payments   by   electronic  funds  transfer.   All  taxpayers
 2    required to make payments by electronic funds transfer  shall
 3    make  those  payments  for a minimum of one year beginning on
 4    October 1.
 5        Any taxpayer not required to make payments by  electronic
 6    funds transfer may make payments by electronic funds transfer
 7    with the permission of the Department.
 8        All  taxpayers  required  to  make  payment by electronic
 9    funds transfer and any taxpayers  authorized  to  voluntarily
10    make  payments  by electronic funds transfer shall make those
11    payments in the manner authorized by the Department.
12        The Department shall adopt such rules as are necessary to
13    effectuate a program of electronic  funds  transfer  and  the
14    requirements of this Section.
15        Any  amount  which is required to be shown or reported on
16    any return or other document under this Act  shall,  if  such
17    amount  is  not  a  whole-dollar  amount, be increased to the
18    nearest whole-dollar amount in any case where the  fractional
19    part  of  a  dollar is 50 cents or more, and decreased to the
20    nearest whole-dollar amount where the fractional  part  of  a
21    dollar is less than 50 cents.
22        If  the  retailer is otherwise required to file a monthly
23    return and if the retailer's average monthly tax liability to
24    the Department does  not  exceed  $200,  the  Department  may
25    authorize  his returns to be filed on a quarter annual basis,
26    with the return for January, February and March  of  a  given
27    year  being due by April 20 of such year; with the return for
28    April, May and June of a given year being due by July  20  of
29    such  year; with the return for July, August and September of
30    a given year being due by October 20 of such year,  and  with
31    the return for October, November and December of a given year
32    being due by January 20 of the following year.
33        If  the  retailer is otherwise required to file a monthly
34    or quarterly return and if the retailer's average monthly tax
                            -59-               LRB9007347KDpc
 1    liability with  the  Department  does  not  exceed  $50,  the
 2    Department may authorize his returns to be filed on an annual
 3    basis,  with the return for a given year being due by January
 4    20 of the following year.
 5        Such quarter annual and annual returns, as  to  form  and
 6    substance,  shall  be  subject  to  the  same requirements as
 7    monthly returns.
 8        Notwithstanding  any  other   provision   in   this   Act
 9    concerning  the  time  within  which  a retailer may file his
10    return, in the case of any retailer who ceases to engage in a
11    kind of business  which  makes  him  responsible  for  filing
12    returns  under  this  Act,  such  retailer shall file a final
13    return under this Act with the Department not more  than  one
14    month after discontinuing such business.
15        Where   the  same  person  has  more  than  one  business
16    registered with the Department under  separate  registrations
17    under  this Act, such person may not file each return that is
18    due  as  a  single  return  covering  all   such   registered
19    businesses,  but  shall  file  separate returns for each such
20    registered business.
21        In addition, with respect to motor vehicles,  watercraft,
22    aircraft,  and  trailers  that  are required to be registered
23    with an agency of this State,  every  retailer  selling  this
24    kind  of  tangible  personal  property  shall  file, with the
25    Department, upon a form to be prescribed and supplied by  the
26    Department,  a separate return for each such item of tangible
27    personal property  which  the  retailer  sells,  except  that
28    where,  in  the  same  transaction,  a  retailer of aircraft,
29    watercraft, motor vehicles or trailers  transfers  more  than
30    one aircraft, watercraft, motor vehicle or trailer to another
31    aircraft,  watercraft,  motor  vehicle  retailer  or  trailer
32    retailer  for  the  purpose of resale, that seller for resale
33    may report the transfer of all  aircraft,  watercraft,  motor
34    vehicles  or  trailers  involved  in  that transaction to the
                            -60-               LRB9007347KDpc
 1    Department on the same uniform invoice-transaction  reporting
 2    return  form.   For  purposes  of  this Section, "watercraft"
 3    means a Class 2, Class 3, or Class 4 watercraft as defined in
 4    Section 3-2 of  the  Boat  Registration  and  Safety  Act,  a
 5    personal  watercraft,  or  any  boat equipped with an inboard
 6    motor.
 7        Any retailer who sells only motor  vehicles,  watercraft,
 8    aircraft, or trailers that are required to be registered with
 9    an  agency  of  this State, so that all retailers' occupation
10    tax liability is required to be reported, and is reported, on
11    such transaction reporting returns and who is  not  otherwise
12    required  to file monthly or quarterly returns, need not file
13    monthly or quarterly returns.  However, those retailers shall
14    be required to file returns on an annual basis.
15        The transaction reporting return, in the  case  of  motor
16    vehicles  or trailers that are required to be registered with
17    an agency of this State, shall be the same  document  as  the
18    Uniform  Invoice referred to in Section 5-402 of The Illinois
19    Vehicle Code and must  show  the  name  and  address  of  the
20    seller;  the name and address of the purchaser; the amount of
21    the  selling  price  including  the  amount  allowed  by  the
22    retailer for traded-in property, if any; the  amount  allowed
23    by the retailer for the traded-in tangible personal property,
24    if  any,  to the extent to which Section 1 of this Act allows
25    an exemption for the value of traded-in property; the balance
26    payable after deducting  such  trade-in  allowance  from  the
27    total  selling price; the amount of tax due from the retailer
28    with respect to such transaction; the amount of tax collected
29    from the purchaser by the retailer on  such  transaction  (or
30    satisfactory  evidence  that  such  tax  is  not  due in that
31    particular instance, if that is claimed to be the fact);  the
32    place  and  date  of the sale; a sufficient identification of
33    the property sold; such other information as is  required  in
34    Section  5-402  of  The Illinois Vehicle Code, and such other
                            -61-               LRB9007347KDpc
 1    information as the Department may reasonably require.
 2        The  transaction  reporting  return  in   the   case   of
 3    watercraft  or aircraft must show the name and address of the
 4    seller; the name and address of the purchaser; the amount  of
 5    the  selling  price  including  the  amount  allowed  by  the
 6    retailer  for  traded-in property, if any; the amount allowed
 7    by the retailer for the traded-in tangible personal property,
 8    if any, to the extent to which Section 1 of this  Act  allows
 9    an exemption for the value of traded-in property; the balance
10    payable  after  deducting  such  trade-in  allowance from the
11    total selling price; the amount of tax due from the  retailer
12    with respect to such transaction; the amount of tax collected
13    from  the  purchaser  by the retailer on such transaction (or
14    satisfactory evidence that  such  tax  is  not  due  in  that
15    particular  instance, if that is claimed to be the fact); the
16    place and date of the sale, a  sufficient  identification  of
17    the   property  sold,  and  such  other  information  as  the
18    Department may reasonably require.
19        Such transaction reporting  return  shall  be  filed  not
20    later than 20 days after the day of delivery of the item that
21    is  being  sold, but may be filed by the retailer at any time
22    sooner than that if he chooses to  do  so.   The  transaction
23    reporting  return  and  tax  remittance or proof of exemption
24    from  the  Illinois  use  tax  may  be  transmitted  to   the
25    Department  by  way  of the State agency with which, or State
26    officer with whom the  tangible  personal  property  must  be
27    titled or registered (if titling or registration is required)
28    if  the Department and such agency or State officer determine
29    that  this  procedure  will  expedite   the   processing   of
30    applications for title or registration.
31        With each such transaction reporting return, the retailer
32    shall  remit  the  proper  amount of tax due (or shall submit
33    satisfactory evidence that the sale is not taxable if that is
34    the case), to the Department or  its  agents,  whereupon  the
                            -62-               LRB9007347KDpc
 1    Department  shall  issue,  in the purchaser's name, a use tax
 2    receipt (or a certificate of exemption if the  Department  is
 3    satisfied  that the particular sale is tax exempt) which such
 4    purchaser may submit to  the  agency  with  which,  or  State
 5    officer  with  whom,  he  must title or register the tangible
 6    personal  property  that   is   involved   (if   titling   or
 7    registration  is  required)  in  support  of such purchaser's
 8    application for an Illinois certificate or other evidence  of
 9    title or registration to such tangible personal property.
10        No  retailer's failure or refusal to remit tax under this
11    Act precludes a user, who has paid  the  proper  tax  to  the
12    retailer,  from  obtaining  his certificate of title or other
13    evidence of title or registration (if titling or registration
14    is required) upon satisfying the Department  that  such  user
15    has paid the proper tax (if tax is due) to the retailer.  The
16    Department  shall  adopt  appropriate  rules to carry out the
17    mandate of this paragraph.
18        If the user who would otherwise pay tax to  the  retailer
19    wants  the transaction reporting return filed and the payment
20    of the tax or proof  of  exemption  made  to  the  Department
21    before the retailer is willing to take these actions and such
22    user  has  not  paid  the  tax to the retailer, such user may
23    certify to the fact of such delay by  the  retailer  and  may
24    (upon  the  Department  being  satisfied of the truth of such
25    certification)  transmit  the  information  required  by  the
26    transaction reporting return and the remittance  for  tax  or
27    proof  of exemption directly to the Department and obtain his
28    tax receipt or exemption determination, in  which  event  the
29    transaction  reporting  return  and  tax remittance (if a tax
30    payment was required) shall be credited by the Department  to
31    the  proper  retailer's  account  with  the  Department,  but
32    without  the  2.1%  or  1.75%  discount  provided for in this
33    Section being allowed.  When the user pays the  tax  directly
34    to  the  Department,  he shall pay the tax in the same amount
                            -63-               LRB9007347KDpc
 1    and in the same form in which it would be remitted if the tax
 2    had been remitted to the Department by the retailer.
 3        Refunds made by the seller during  the  preceding  return
 4    period   to  purchasers,  on  account  of  tangible  personal
 5    property returned to  the  seller,  shall  be  allowed  as  a
 6    deduction  under  subdivision  5  of his monthly or quarterly
 7    return,  as  the  case  may  be,  in  case  the  seller   had
 8    theretofore  included  the  receipts  from  the  sale of such
 9    tangible personal property in a return filed by him  and  had
10    paid  the  tax  imposed  by  this  Act  with  respect to such
11    receipts.
12        Where the seller is a corporation, the  return  filed  on
13    behalf  of such corporation shall be signed by the president,
14    vice-president, secretary or treasurer  or  by  the  properly
15    accredited agent of such corporation.
16        Where  the  seller  is  a  limited liability company, the
17    return filed on behalf of the limited liability company shall
18    be signed by a manager, member, or properly accredited  agent
19    of the limited liability company.
20        Except  as  provided in this Section, the retailer filing
21    the return under this Section shall, at the  time  of  filing
22    such  return, pay to the Department the amount of tax imposed
23    by this Act less a discount of 2.1% prior to January 1,  1990
24    and  1.75%  on  and after January 1, 1990, or $5 per calendar
25    year, whichever is greater, which is allowed to reimburse the
26    retailer  for  the  expenses  incurred  in  keeping  records,
27    preparing and filing returns, remitting the tax and supplying
28    data to the  Department  on  request.   Any  prepayment  made
29    pursuant  to  Section 2d of this Act shall be included in the
30    amount on which such 2.1% or 1.75% discount is computed.   In
31    the  case  of  retailers  who  report  and  pay  the tax on a
32    transaction  by  transaction  basis,  as  provided  in   this
33    Section,  such  discount  shall  be  taken with each such tax
34    remittance instead of when such retailer files  his  periodic
                            -64-               LRB9007347KDpc
 1    return.
 2        If  the  taxpayer's  average monthly tax liability to the
 3    Department under this Act,  the  Use  Tax  Act,  the  Service
 4    Occupation  Tax  Act,  and the Service Use Tax Act, excluding
 5    any liability  for  prepaid  sales  tax  to  be  remitted  in
 6    accordance  with  Section 2d of this Act, was $10,000 or more
 7    during the preceding 4 complete calendar quarters,  he  shall
 8    file  a return with the Department each month by the 20th day
 9    of the month next following the month during which  such  tax
10    liability   is  incurred  and  shall  make  payments  to  the
11    Department on or before the 7th, 15th, 22nd and last  day  of
12    the  month  during  which such liability is incurred.  If the
13    month during which such tax liability is incurred began prior
14    to January 1, 1985, each payment shall be in an amount  equal
15    to 1/4 of the taxpayer's actual liability for the month or an
16    amount set by the Department not to exceed 1/4 of the average
17    monthly  liability  of the taxpayer to the Department for the
18    preceding 4 complete calendar quarters (excluding  the  month
19    of  highest  liability  and  the month of lowest liability in
20    such 4 quarter period).  If the month during which  such  tax
21    liability  is incurred begins on or after January 1, 1985 and
22    prior to January 1, 1987, each payment shall be in an  amount
23    equal  to  22.5%  of  the taxpayer's actual liability for the
24    month or 27.5% of  the  taxpayer's  liability  for  the  same
25    calendar  month  of  the preceding year.  If the month during
26    which such tax liability  is  incurred  begins  on  or  after
27    January  1,  1987  and prior to January 1, 1988, each payment
28    shall be in an amount equal to 22.5% of the taxpayer's actual
29    liability for the month or 26.25% of the taxpayer's liability
30    for the same calendar month of the preceding  year.   If  the
31    month  during  which such tax liability is incurred begins on
32    or after January 1, 1988, and prior to January  1,  1989,  or
33    begins  on or after January 1, 1996, each payment shall be in
34    an amount equal to 22.5% of the taxpayer's  actual  liability
                            -65-               LRB9007347KDpc
 1    for the month or 25% of the taxpayer's liability for the same
 2    calendar  month  of  the  preceding year. If the month during
 3    which such tax liability  is  incurred  begins  on  or  after
 4    January  1,  1989, and prior to January 1, 1996, each payment
 5    shall be in an amount equal to 22.5% of the taxpayer's actual
 6    liability for the month or 25% of  the  taxpayer's  liability
 7    for  the same calendar month of the preceding year or 100% of
 8    the taxpayer's  actual  liability  for  the  quarter  monthly
 9    reporting   period.   The  amount  of  such  quarter  monthly
10    payments shall be credited against the final tax liability of
11    the taxpayer's return for that month.  Once  applicable,  the
12    requirement  of the making of quarter monthly payments to the
13    Department  by  taxpayers  having  an  average  monthly   tax
14    liability  of  $10,000  or  more  as determined in the manner
15    provided above shall continue until such  taxpayer's  average
16    monthly  liability  to  the Department during the preceding 4
17    complete calendar quarters (excluding the  month  of  highest
18    liability  and  the  month  of lowest liability) is less than
19    $9,000, or until such taxpayer's average monthly liability to
20    the Department as computed for each calendar quarter of the 4
21    preceding complete  calendar  quarter  period  is  less  than
22    $10,000.  However, if a taxpayer can show the Department that
23    a  substantial change in the taxpayer's business has occurred
24    which causes the taxpayer  to  anticipate  that  his  average
25    monthly  tax  liability for the reasonably foreseeable future
26    will fall below $10,000, then such taxpayer may petition  the
27    Department  for a change in such taxpayer's reporting status.
28    The Department shall change such taxpayer's reporting  status
29    unless  it  finds  that such change is seasonal in nature and
30    not likely to be long term.   If  any  such  quarter  monthly
31    payment  is not paid at the time or in the amount required by
32    this Section, then the  taxpayer's  2.1%  or  1.75%  vendors'
33    discount  shall be reduced by 2.1% or 1.75% of the difference
34    between the minimum amount due as a payment and the amount of
                            -66-               LRB9007347KDpc
 1    such quarter monthly payment actually and  timely  paid,  and
 2    the  taxpayer  shall  be liable for penalties and interest on
 3    such  difference,  except  insofar  as   the   taxpayer   has
 4    previously  made payments for that month to the Department in
 5    excess of the minimum payments previously due as provided  in
 6    this Section.  The Department shall make reasonable rules and
 7    regulations  to govern the quarter monthly payment amount and
 8    quarter monthly payment dates for taxpayers who file on other
 9    than a calendar monthly basis.
10        Without regard to whether a taxpayer is required to  make
11    quarter monthly payments as specified above, any taxpayer who
12    is  required  by  Section 2d of this Act to collect and remit
13    prepaid taxes and has collected prepaid taxes  which  average
14    in  excess  of  $25,000  per  month  during  the  preceding 2
15    complete calendar quarters, shall  file  a  return  with  the
16    Department  as required by Section 2f and shall make payments
17    to the Department on or before the 7th, 15th, 22nd  and  last
18    day of the month during which such liability is incurred.  If
19    the  month  during which such tax liability is incurred began
20    prior to the effective date of this amendatory Act  of  1985,
21    each payment shall be in an amount not less than 22.5% of the
22    taxpayer's  actual  liability under Section 2d.  If the month
23    during which such tax liability  is  incurred  begins  on  or
24    after  January  1,  1986,  each payment shall be in an amount
25    equal to 22.5% of the taxpayer's  actual  liability  for  the
26    month  or  27.5%  of  the  taxpayer's  liability for the same
27    calendar month of the preceding calendar year.  If the  month
28    during  which  such  tax  liability  is incurred begins on or
29    after January 1, 1987, each payment shall  be  in  an  amount
30    equal  to  22.5%  of  the taxpayer's actual liability for the
31    month or 26.25% of the  taxpayer's  liability  for  the  same
32    calendar  month  of  the  preceding year.  The amount of such
33    quarter monthly payments shall be credited against the  final
34    tax  liability  of the taxpayer's return for that month filed
                            -67-               LRB9007347KDpc
 1    under this Section or Section 2f, as the case may  be.   Once
 2    applicable,  the requirement of the making of quarter monthly
 3    payments to the Department pursuant to this  paragraph  shall
 4    continue  until  such  taxpayer's average monthly prepaid tax
 5    collections during the preceding 2 complete calendar quarters
 6    is $25,000 or less.  If any such quarter monthly  payment  is
 7    not  paid at the time or in the amount required, the taxpayer
 8    shall  be  liable  for  penalties  and   interest   on   such
 9    difference,  except  insofar  as  the taxpayer has previously
10    made payments  for  that  month  in  excess  of  the  minimum
11    payments previously due.
12        If  any  payment provided for in this Section exceeds the
13    taxpayer's liabilities under this Act, the Use Tax  Act,  the
14    Service  Occupation  Tax  Act and the Service Use Tax Act, as
15    shown on an original monthly return, the Department shall, if
16    requested by the taxpayer, issue to  the  taxpayer  a  credit
17    memorandum  no  later than 30 days after the date of payment.
18    The  credit  evidenced  by  such  credit  memorandum  may  be
19    assigned by the taxpayer to a  similar  taxpayer  under  this
20    Act,  the  Use Tax Act, the Service Occupation Tax Act or the
21    Service Use Tax Act, in accordance with reasonable rules  and
22    regulations  to  be prescribed by the Department.  If no such
23    request is made, the taxpayer may credit such excess  payment
24    against  tax  liability  subsequently  to  be remitted to the
25    Department under this Act,  the  Use  Tax  Act,  the  Service
26    Occupation  Tax Act or the Service Use Tax Act, in accordance
27    with reasonable  rules  and  regulations  prescribed  by  the
28    Department.   If  the Department subsequently determined that
29    all or any part of the credit taken was not actually  due  to
30    the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
31    shall  be  reduced by 2.1% or 1.75% of the difference between
32    the credit taken and that actually  due,  and  that  taxpayer
33    shall   be   liable   for  penalties  and  interest  on  such
34    difference.
                            -68-               LRB9007347KDpc
 1        If a retailer of motor fuel is entitled to a credit under
 2    Section 2d of this Act which exceeds the taxpayer's liability
 3    to the Department under this Act  for  the  month  which  the
 4    taxpayer  is  filing a return, the Department shall issue the
 5    taxpayer a credit memorandum for the excess.
 6        Beginning January 1,  1990,  each  month  the  Department
 7    shall  pay into the Local Government Tax Fund, a special fund
 8    in the State  treasury  which  is  hereby  created,  the  net
 9    revenue  realized  for the preceding month from the 1% tax on
10    sales of food for human consumption which is to  be  consumed
11    off  the  premises  where  it  is  sold (other than alcoholic
12    beverages, soft drinks and food which has been  prepared  for
13    immediate  consumption)  and prescription and nonprescription
14    medicines,  drugs,  medical  appliances  and  insulin,  urine
15    testing materials, syringes and needles used by diabetics.
16        Beginning January 1,  1990,  each  month  the  Department
17    shall  pay  into the County and Mass Transit District Fund, a
18    special fund in the State treasury which is  hereby  created,
19    4%  of  the net revenue realized for the preceding month from
20    the 6.25% general rate.
21        Each month the Department shall pay into the  County  and
22    Mass  Transit  District  Fund 20% of the net revenue realized
23    for the preceding month from the 1.25% rate imposed upon  the
24    sale  of any motor vehicle that is sold at retail to a lessor
25    for  purposes  of  leasing  under  a  lease  subject  to  the
26    Automobile Leasing Occupation and Use Tax Act.
27        Beginning January 1,  1990,  each  month  the  Department
28    shall  pay  into the Local Government Tax Fund 16% of the net
29    revenue realized for  the  preceding  month  from  the  6.25%
30    general  rate  on  the  selling  price  of  tangible personal
31    property.
32        Each month  the  Department  shall  pay  into  the  Local
33    Government  Tax  Fund 80% of the net revenue realized for the
34    preceding month from the 1.25% rate imposed upon the sale  of
                            -69-               LRB9007347KDpc
 1    any  motor  vehicle  that  is  sold at retail to a lessor for
 2    purposes of leasing under a lease subject to  the  Automobile
 3    Leasing Occupation and Use Tax Act.
 4        Of the remainder of the moneys received by the Department
 5    pursuant  to  this  Act, and including all moneys received by
 6    the Department pursuant  to  Section  10  of  the  Automobile
 7    Leasing  Occupation and Use Tax Act, and including all of the
 8    moneys received pursuant to the 5% rate imposed upon sales of
 9    motor vehicles by lessors to the lessees of such vehicles  in
10    connection  with  a  lease that was subject to the Automobile
11    Leasing Occupation and Use Tax Act Of the  remainder  of  the
12    moneys  received  by the Department pursuant to this Act, (a)
13    1.75% thereof shall be paid into the Build Illinois Fund  and
14    (b)  prior  to  July  1,  1989, 2.2% and on and after July 1,
15    1989, 3.8% thereof shall be  paid  into  the  Build  Illinois
16    Fund;  provided,  however, that if in any fiscal year the sum
17    of (1) the aggregate of 2.2% or 3.8%, as the case may be,  of
18    the moneys received by the Department and required to be paid
19    into  the Build Illinois Fund pursuant to this Act, Section 9
20    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
21    Section 9 of the Service Occupation Tax Act, such Acts  being
22    hereinafter  called the "Tax Acts" and such aggregate of 2.2%
23    or 3.8%, as the case may  be,  of  moneys  being  hereinafter
24    called  the  "Tax Act Amount", and (2) the amount transferred
25    to the Build Illinois Fund from the State and Local Sales Tax
26    Reform Fund shall be less than the  Annual  Specified  Amount
27    (as  hereinafter  defined), an amount equal to the difference
28    shall be immediately paid into the Build Illinois  Fund  from
29    other  moneys  received by the Department pursuant to the Tax
30    Acts;  the  "Annual  Specified  Amount"  means  the   amounts
31    specified below for fiscal years 1986 through 1993:
32             Fiscal Year              Annual Specified Amount
33                 1986                       $54,800,000
34                 1987                       $76,650,000
                            -70-               LRB9007347KDpc
 1                 1988                       $80,480,000
 2                 1989                       $88,510,000
 3                 1990                       $115,330,000
 4                 1991                       $145,470,000
 5                 1992                       $182,730,000
 6                 1993                      $206,520,000;
 7    and  means  the Certified Annual Debt Service Requirement (as
 8    defined in Section 13 of the Build Illinois Bond Act) or  the
 9    Tax  Act  Amount,  whichever is greater, for fiscal year 1994
10    and each fiscal year thereafter; and further  provided,  that
11    if  on  the last business day of any month the sum of (1) the
12    Tax Act Amount  required  to  be  deposited  into  the  Build
13    Illinois  Bond Account in the Build Illinois Fund during such
14    month and (2) the amount transferred to  the  Build  Illinois
15    Fund  from  the  State  and Local Sales Tax Reform Fund shall
16    have been less than 1/12 of the Annual Specified  Amount,  an
17    amount equal to the difference shall be immediately paid into
18    the  Build  Illinois  Fund  from other moneys received by the
19    Department pursuant to the Tax Acts; and,  further  provided,
20    that  in  no  event  shall  the  payments  required under the
21    preceding proviso result in aggregate payments into the Build
22    Illinois Fund pursuant to this clause (b) for any fiscal year
23    in excess of the greater of (i) the Tax Act  Amount  or  (ii)
24    the  Annual  Specified  Amount  for  such  fiscal  year.  The
25    amounts payable into the Build Illinois Fund under clause (b)
26    of the first sentence in this paragraph shall be payable only
27    until such time as the aggregate amount on deposit under each
28    trust  indenture  securing  Bonds  issued   and   outstanding
29    pursuant to the Build Illinois Bond Act is sufficient, taking
30    into  account any future investment income, to fully provide,
31    in accordance with such indenture, for the defeasance  of  or
32    the  payment  of  the  principal  of,  premium,  if  any, and
33    interest on the Bonds secured by such indenture  and  on  any
34    Bonds expected to be issued thereafter and all fees and costs
                            -71-               LRB9007347KDpc
 1    payable  with  respect  thereto,  all  as  certified  by  the
 2    Director  of  the  Bureau  of  the  Budget.   If  on the last
 3    business day of any month  in  which  Bonds  are  outstanding
 4    pursuant  to  the  Build  Illinois Bond Act, the aggregate of
 5    moneys deposited in the Build Illinois Bond  Account  in  the
 6    Build  Illinois  Fund  in  such  month shall be less than the
 7    amount required to be transferred  in  such  month  from  the
 8    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
 9    Retirement and Interest Fund pursuant to Section  13  of  the
10    Build  Illinois  Bond Act, an amount equal to such deficiency
11    shall be immediately paid from other moneys received  by  the
12    Department  pursuant  to  the  Tax Acts to the Build Illinois
13    Fund; provided, however, that any amounts paid to  the  Build
14    Illinois  Fund  in  any fiscal year pursuant to this sentence
15    shall be deemed to constitute payments pursuant to clause (b)
16    of the first sentence of this paragraph and shall reduce  the
17    amount  otherwise  payable  for  such fiscal year pursuant to
18    that clause (b).   The  moneys  received  by  the  Department
19    pursuant  to  this  Act and required to be deposited into the
20    Build Illinois Fund are subject  to  the  pledge,  claim  and
21    charge  set  forth  in  Section 12 of the Build Illinois Bond
22    Act.
23        Subject to payment of amounts  into  the  Build  Illinois
24    Fund  as  provided  in  the  preceding  paragraph  or  in any
25    amendment thereto hereafter enacted, the following  specified
26    monthly   installment   of   the   amount  requested  in  the
27    certificate of the Chairman  of  the  Metropolitan  Pier  and
28    Exposition  Authority  provided  under  Section  8.25f of the
29    State Finance Act, but not in excess of  sums  designated  as
30    "Total  Deposit",  shall  be  deposited in the aggregate from
31    collections under Section 9 of the Use Tax Act, Section 9  of
32    the  Service Use Tax Act, Section 9 of the Service Occupation
33    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
34    into  the  McCormick  Place  Expansion  Project  Fund  in the
                            -72-               LRB9007347KDpc
 1    specified fiscal years.
 2             Fiscal Year                   Total Deposit
 3                 1993                            $0
 4                 1994                        53,000,000
 5                 1995                        58,000,000
 6                 1996                        61,000,000
 7                 1997                        64,000,000
 8                 1998                        68,000,000
 9                 1999                        71,000,000
10                 2000                        75,000,000
11                 2001                        80,000,000
12                 2002                        84,000,000
13                 2003                        89,000,000
14               2004 and                      93,000,000
15        each fiscal year
16        thereafter that bonds
17        are outstanding under
18        Section 13.2 of the
19        Metropolitan Pier and
20        Exposition Authority
21        Act.
22        Beginning July 20, 1993 and in each month of each  fiscal
23    year  thereafter,  one-eighth  of the amount requested in the
24    certificate of the Chairman  of  the  Metropolitan  Pier  and
25    Exposition  Authority  for  that fiscal year, less the amount
26    deposited into the McCormick Place Expansion Project Fund  by
27    the  State Treasurer in the respective month under subsection
28    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
29    Authority  Act,  plus cumulative deficiencies in the deposits
30    required under this Section for previous  months  and  years,
31    shall be deposited into the McCormick Place Expansion Project
32    Fund,  until  the  full amount requested for the fiscal year,
33    but not in excess of the amount  specified  above  as  "Total
34    Deposit", has been deposited.
                            -73-               LRB9007347KDpc
 1        Subject  to  payment  of  amounts into the Build Illinois
 2    Fund and the McCormick Place Expansion Project Fund  pursuant
 3    to  the  preceding  paragraphs  or  in  any amendment thereto
 4    hereafter enacted, each month the Department shall  pay  into
 5    the  Local  Government  Distributive  Fund  0.4%  of  the net
 6    revenue realized for the preceding month from the 5%  general
 7    rate  or  0.4%  of  80%  of  the net revenue realized for the
 8    preceding month from the 6.25% general rate, as the case  may
 9    be,  on the selling price of tangible personal property which
10    amount shall, subject to  appropriation,  be  distributed  as
11    provided  in  Section 2 of the State Revenue Sharing Act.  No
12    payments or distributions pursuant to this paragraph shall be
13    made if the  tax  imposed  by  this  Act  on  photoprocessing
14    products  is  declared  unconstitutional,  or if the proceeds
15    from such tax are unavailable  for  distribution  because  of
16    litigation.
17        Subject  to  payment  of  amounts into the Build Illinois
18    Fund, the McCormick Place Expansion Project to the  preceding
19    paragraphs  or  in  any amendments thereto hereafter enacted,
20    beginning July 1, 1993, the Department shall each  month  pay
21    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
22    revenue realized for  the  preceding  month  from  the  6.25%
23    general  rate  on  the  selling  price  of  tangible personal
24    property.
25        Of the remainder of the moneys received by the Department
26    pursuant to this Act, 75% thereof  shall  be  paid  into  the
27    State Treasury and 25% shall be reserved in a special account
28    and  used  only for the transfer to the Common School Fund as
29    part of the monthly transfer from the General Revenue Fund in
30    accordance with Section 8a of the State Finance Act.
31        The Department may, upon separate  written  notice  to  a
32    taxpayer,  require  the taxpayer to prepare and file with the
33    Department on a form prescribed by the Department within  not
34    less  than  60  days  after  receipt  of the notice an annual
                            -74-               LRB9007347KDpc
 1    information return for the tax year specified in the  notice.
 2    Such   annual  return  to  the  Department  shall  include  a
 3    statement of gross receipts as shown by the  retailer's  last
 4    Federal  income  tax  return.   If  the total receipts of the
 5    business as reported in the Federal income tax return do  not
 6    agree  with  the gross receipts reported to the Department of
 7    Revenue for the same period, the retailer shall attach to his
 8    annual return a schedule showing a reconciliation  of  the  2
 9    amounts  and  the reasons for the difference.  The retailer's
10    annual return to the Department shall also disclose the  cost
11    of goods sold by the retailer during the year covered by such
12    return,  opening  and  closing  inventories of such goods for
13    such year, costs of goods used from stock or taken from stock
14    and given away by the  retailer  during  such  year,  payroll
15    information  of  the retailer's business during such year and
16    any additional reasonable information  which  the  Department
17    deems  would  be  helpful  in determining the accuracy of the
18    monthly, quarterly or annual returns filed by  such  retailer
19    as provided for in this Section.
20        If the annual information return required by this Section
21    is  not  filed  when  and  as required, the taxpayer shall be
22    liable as follows:
23             (i)  Until January 1, 1994, the  taxpayer  shall  be
24        liable  for  a  penalty equal to 1/6 of 1% of the tax due
25        from such taxpayer under this Act during the period to be
26        covered by the annual return for each month  or  fraction
27        of  a  month  until such return is filed as required, the
28        penalty to be assessed and collected in the  same  manner
29        as any other penalty provided for in this Act.
30             (ii)  On  and  after  January  1, 1994, the taxpayer
31        shall be liable for a penalty as described in Section 3-4
32        of the Uniform Penalty and Interest Act.
33        The chief executive officer, proprietor, owner or highest
34    ranking manager shall sign the annual return to  certify  the
                            -75-               LRB9007347KDpc
 1    accuracy  of  the information contained therein.   Any person
 2    who willfully signs the annual  return  containing  false  or
 3    inaccurate   information  shall  be  guilty  of  perjury  and
 4    punished accordingly.  The annual return form  prescribed  by
 5    the  Department  shall  include  a  warning  that  the person
 6    signing the return may be liable for perjury.
 7        The provisions of this Section concerning the  filing  of
 8    an  annual  information return do not apply to a retailer who
 9    is not required to file an income tax return with the  United
10    States Government.
11        As  soon  as  possible after the first day of each month,
12    upon  certification  of  the  Department  of   Revenue,   the
13    Comptroller  shall  order transferred and the Treasurer shall
14    transfer from the General Revenue Fund to the Motor Fuel  Tax
15    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
16    realized under this  Act  for  the  second  preceding  month;
17    except  that  this  transfer shall not be made for the months
18    February through June, 1992.
19        Net revenue realized for a month  shall  be  the  revenue
20    collected  by the State pursuant to this Act, less the amount
21    paid out during  that  month  as  refunds  to  taxpayers  for
22    overpayment of liability.
23        For  greater simplicity of administration, manufacturers,
24    importers and wholesalers whose products are sold  at  retail
25    in Illinois by numerous retailers, and who wish to do so, may
26    assume  the  responsibility  for accounting and paying to the
27    Department all tax accruing under this Act  with  respect  to
28    such  sales,  if  the  retailers who are affected do not make
29    written objection to the Department to this arrangement.
30        Any  person  who  promotes,  organizes,  provides  retail
31    selling space for concessionaires or other types  of  sellers
32    at the Illinois State Fair, DuQuoin State Fair, county fairs,
33    local  fairs, art shows, flea markets and similar exhibitions
34    or events, including any transient  merchant  as  defined  by
                            -76-               LRB9007347KDpc
 1    Section  2 of the Transient Merchant Act of 1987, is required
 2    to file a report with the Department providing  the  name  of
 3    the  merchant's  business,  the name of the person or persons
 4    engaged in merchant's business,  the  permanent  address  and
 5    Illinois  Retailers Occupation Tax Registration Number of the
 6    merchant, the dates and  location  of  the  event  and  other
 7    reasonable  information that the Department may require.  The
 8    report must be filed not later than the 20th day of the month
 9    next following the month during which the event  with  retail
10    sales  was  held.   Any  person  who  fails  to file a report
11    required by this Section commits a business  offense  and  is
12    subject to a fine not to exceed $250.
13        Any  person  engaged  in the business of selling tangible
14    personal property at retail as a concessionaire or other type
15    of seller at the  Illinois  State  Fair,  county  fairs,  art
16    shows, flea markets and similar exhibitions or events, or any
17    transient merchants, as defined by Section 2 of the Transient
18    Merchant  Act of 1987, may be required to make a daily report
19    of the amount of such sales to the Department and to  make  a
20    daily  payment of the full amount of tax due.  The Department
21    shall impose this requirement when it finds that there  is  a
22    significant  risk  of loss of revenue to the State at such an
23    exhibition or event.   Such  a  finding  shall  be  based  on
24    evidence  that  a  substantial  number  of concessionaires or
25    other sellers who are  not  residents  of  Illinois  will  be
26    engaging   in  the  business  of  selling  tangible  personal
27    property at retail at  the  exhibition  or  event,  or  other
28    evidence  of  a  significant  risk  of loss of revenue to the
29    State.  The Department shall notify concessionaires and other
30    sellers affected by the imposition of this  requirement.   In
31    the   absence   of   notification   by  the  Department,  the
32    concessionaires and other sellers shall file their returns as
33    otherwise required in this Section.
34    (Source: P.A. 88-45; 88-116;  88-194;  88-480;  88-547,  eff.
                            -77-               LRB9007347KDpc
 1    6-30-94; 88-660, eff. 9-16-94; 88-669, eff. 11-29-94; 88-670,
 2    eff.  12-2-94;  89-89,  eff.  6-30-95;  89-235,  eff. 8-4-95;
 3    89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
 4        (Text of Section after amendment by P.A. 90-491)
 5        Sec. 3.  Except as provided in this Section, on or before
 6    the twentieth  day  of  each  calendar  month,  every  person
 7    engaged in the business of selling tangible personal property
 8    at  retail  in this State during the preceding calendar month
 9    shall file a return with the Department, stating:
10             1.  The name of the seller;
11             2.  His residence address and  the  address  of  his
12        principal  place  of  business  and  the  address  of the
13        principal place of  business  (if  that  is  a  different
14        address) from which he engages in the business of selling
15        tangible personal property at retail in this State;
16             3.  Total  amount of receipts received by him during
17        the preceding calendar month or quarter, as the case  may
18        be,  from  sales  of tangible personal property, and from
19        services furnished, by him during such preceding calendar
20        month or quarter;
21             4.  Total  amount  received  by   him   during   the
22        preceding  calendar  month  or quarter on charge and time
23        sales of tangible personal property,  and  from  services
24        furnished, by him prior to the month or quarter for which
25        the return is filed;
26             5.  Deductions allowed by law;
27             6.  Gross receipts which were received by him during
28        the  preceding  calendar  month  or  quarter and upon the
29        basis of which the tax is imposed;
30             7.  The amount of credit provided in Section  2d  of
31        this Act;
32             8.  The amount of tax due;
33             9.  The signature of the taxpayer; and
34             10.  Such   other   reasonable  information  as  the
                            -78-               LRB9007347KDpc
 1        Department may require.
 2        If a taxpayer fails to sign a return within 30 days after
 3    the proper notice and demand for signature by the Department,
 4    the return shall be considered valid and any amount shown  to
 5    be due on the return shall be deemed assessed.
 6        Each  return  shall  be  accompanied  by the statement of
 7    prepaid tax issued pursuant to Section 2e for which credit is
 8    claimed.
 9        A retailer may accept a  Manufacturer's  Purchase  Credit
10    certification  from a purchaser in satisfaction of Use Tax as
11    provided in Section 3-85 of the Use Tax Act if the  purchaser
12    provides the appropriate documentation as required by Section
13    3-85  of  the  Use Tax Act.  A Manufacturer's Purchase Credit
14    certification, accepted by a retailer as provided in  Section
15    3-85  of  the  Use  Tax  Act, may be used by that retailer to
16    satisfy Retailers' Occupation Tax  liability  in  the  amount
17    claimed  in  the  certification,  not  to exceed 6.25% of the
18    receipts subject to tax from a qualifying purchase.
19        The Department may require  returns  to  be  filed  on  a
20    quarterly  basis.  If so required, a return for each calendar
21    quarter shall be filed on or before the twentieth day of  the
22    calendar  month  following  the end of such calendar quarter.
23    The taxpayer shall also file a return with the Department for
24    each of the first two months of each calendar quarter, on  or
25    before  the  twentieth  day  of the following calendar month,
26    stating:
27             1.  The name of the seller;
28             2.  The address of the principal place  of  business
29        from which he engages in the business of selling tangible
30        personal property at retail in this State;
31             3.  The total amount of taxable receipts received by
32        him  during  the  preceding  calendar month from sales of
33        tangible personal property by him during  such  preceding
34        calendar  month,  including receipts from charge and time
                            -79-               LRB9007347KDpc
 1        sales, but less all deductions allowed by law;
 2             4.  The amount of credit provided in Section  2d  of
 3        this Act;
 4             5.  The amount of tax due; and
 5             6.  Such   other   reasonable   information  as  the
 6        Department may require.
 7        If a total amount of less than $1 is payable,  refundable
 8    or creditable, such amount shall be disregarded if it is less
 9    than  50 cents and shall be increased to $1 if it is 50 cents
10    or more.
11        Beginning October 1, 1993, a taxpayer who has an  average
12    monthly  tax  liability  of  $150,000  or more shall make all
13    payments required by rules of the  Department  by  electronic
14    funds  transfer.   Beginning  October 1, 1994, a taxpayer who
15    has an average monthly tax  liability  of  $100,000  or  more
16    shall  make  all payments required by rules of the Department
17    by electronic funds transfer.  Beginning October 1,  1995,  a
18    taxpayer  who has an average monthly tax liability of $50,000
19    or more shall make all payments  required  by  rules  of  the
20    Department  by  electronic funds transfer.  The term "average
21    monthly tax liability" shall be the  sum  of  the  taxpayer's
22    liabilities  under  this  Act,  and under all other State and
23    local  occupation  and  use  tax  laws  administered  by  the
24    Department,  for  the  immediately  preceding  calendar  year
25    divided by 12.
26        Before August 1 of  each  year  beginning  in  1993,  the
27    Department  shall  notify  all  taxpayers  required  to  make
28    payments   by   electronic  funds  transfer.   All  taxpayers
29    required to make payments by electronic funds transfer  shall
30    make  those  payments  for a minimum of one year beginning on
31    October 1.
32        Any taxpayer not required to make payments by  electronic
33    funds transfer may make payments by electronic funds transfer
34    with the permission of the Department.
                            -80-               LRB9007347KDpc
 1        All  taxpayers  required  to  make  payment by electronic
 2    funds transfer and any taxpayers  authorized  to  voluntarily
 3    make  payments  by electronic funds transfer shall make those
 4    payments in the manner authorized by the Department.
 5        The Department shall adopt such rules as are necessary to
 6    effectuate a program of electronic  funds  transfer  and  the
 7    requirements of this Section.
 8        Any  amount  which is required to be shown or reported on
 9    any return or other document under this Act  shall,  if  such
10    amount  is  not  a  whole-dollar  amount, be increased to the
11    nearest whole-dollar amount in any case where the  fractional
12    part  of  a  dollar is 50 cents or more, and decreased to the
13    nearest whole-dollar amount where the fractional  part  of  a
14    dollar is less than 50 cents.
15        If  the  retailer is otherwise required to file a monthly
16    return and if the retailer's average monthly tax liability to
17    the Department does  not  exceed  $200,  the  Department  may
18    authorize  his returns to be filed on a quarter annual basis,
19    with the return for January, February and March  of  a  given
20    year  being due by April 20 of such year; with the return for
21    April, May and June of a given year being due by July  20  of
22    such  year; with the return for July, August and September of
23    a given year being due by October 20 of such year,  and  with
24    the return for October, November and December of a given year
25    being due by January 20 of the following year.
26        If  the  retailer is otherwise required to file a monthly
27    or quarterly return and if the retailer's average monthly tax
28    liability with  the  Department  does  not  exceed  $50,  the
29    Department may authorize his returns to be filed on an annual
30    basis,  with the return for a given year being due by January
31    20 of the following year.
32        Such quarter annual and annual returns, as  to  form  and
33    substance,  shall  be  subject  to  the  same requirements as
34    monthly returns.
                            -81-               LRB9007347KDpc
 1        Notwithstanding  any  other   provision   in   this   Act
 2    concerning  the  time  within  which  a retailer may file his
 3    return, in the case of any retailer who ceases to engage in a
 4    kind of business  which  makes  him  responsible  for  filing
 5    returns  under  this  Act,  such  retailer shall file a final
 6    return under this Act with the Department not more  than  one
 7    month after discontinuing such business.
 8        Where   the  same  person  has  more  than  one  business
 9    registered with the Department under  separate  registrations
10    under  this Act, such person may not file each return that is
11    due  as  a  single  return  covering  all   such   registered
12    businesses,  but  shall  file  separate returns for each such
13    registered business.
14        In addition, with respect to motor vehicles,  watercraft,
15    aircraft,  and  trailers  that  are required to be registered
16    with an agency of this State,  every  retailer  selling  this
17    kind  of  tangible  personal  property  shall  file, with the
18    Department, upon a form to be prescribed and supplied by  the
19    Department,  a separate return for each such item of tangible
20    personal property  which  the  retailer  sells,  except  that
21    where,  in  the  same  transaction,  a  retailer of aircraft,
22    watercraft, motor vehicles or trailers  transfers  more  than
23    one aircraft, watercraft, motor vehicle or trailer to another
24    aircraft,  watercraft,  motor  vehicle  retailer  or  trailer
25    retailer  for  the  purpose of resale, that seller for resale
26    may report the transfer of all  aircraft,  watercraft,  motor
27    vehicles  or  trailers  involved  in  that transaction to the
28    Department on the same uniform invoice-transaction  reporting
29    return  form.   For  purposes  of  this Section, "watercraft"
30    means a Class 2, Class 3, or Class 4 watercraft as defined in
31    Section 3-2 of  the  Boat  Registration  and  Safety  Act,  a
32    personal  watercraft,  or  any  boat equipped with an inboard
33    motor.
34        Any retailer who sells only motor  vehicles,  watercraft,
                            -82-               LRB9007347KDpc
 1    aircraft, or trailers that are required to be registered with
 2    an  agency  of  this State, so that all retailers' occupation
 3    tax liability is required to be reported, and is reported, on
 4    such transaction reporting returns and who is  not  otherwise
 5    required  to file monthly or quarterly returns, need not file
 6    monthly or quarterly returns.  However, those retailers shall
 7    be required to file returns on an annual basis.
 8        The transaction reporting return, in the  case  of  motor
 9    vehicles  or trailers that are required to be registered with
10    an agency of this State, shall be the same  document  as  the
11    Uniform  Invoice referred to in Section 5-402 of The Illinois
12    Vehicle Code and must  show  the  name  and  address  of  the
13    seller;  the name and address of the purchaser; the amount of
14    the  selling  price  including  the  amount  allowed  by  the
15    retailer for traded-in property, if any; the  amount  allowed
16    by the retailer for the traded-in tangible personal property,
17    if  any,  to the extent to which Section 1 of this Act allows
18    an exemption for the value of traded-in property; the balance
19    payable after deducting  such  trade-in  allowance  from  the
20    total  selling price; the amount of tax due from the retailer
21    with respect to such transaction; the amount of tax collected
22    from the purchaser by the retailer on  such  transaction  (or
23    satisfactory  evidence  that  such  tax  is  not  due in that
24    particular instance, if that is claimed to be the fact);  the
25    place  and  date  of the sale; a sufficient identification of
26    the property sold; such other information as is  required  in
27    Section  5-402  of  The Illinois Vehicle Code, and such other
28    information as the Department may reasonably require.
29        The  transaction  reporting  return  in   the   case   of
30    watercraft  or aircraft must show the name and address of the
31    seller; the name and address of the purchaser; the amount  of
32    the  selling  price  including  the  amount  allowed  by  the
33    retailer  for  traded-in property, if any; the amount allowed
34    by the retailer for the traded-in tangible personal property,
                            -83-               LRB9007347KDpc
 1    if any, to the extent to which Section 1 of this  Act  allows
 2    an exemption for the value of traded-in property; the balance
 3    payable  after  deducting  such  trade-in  allowance from the
 4    total selling price; the amount of tax due from the  retailer
 5    with respect to such transaction; the amount of tax collected
 6    from  the  purchaser  by the retailer on such transaction (or
 7    satisfactory evidence that  such  tax  is  not  due  in  that
 8    particular  instance, if that is claimed to be the fact); the
 9    place and date of the sale, a  sufficient  identification  of
10    the   property  sold,  and  such  other  information  as  the
11    Department may reasonably require.
12        Such transaction reporting  return  shall  be  filed  not
13    later than 20 days after the day of delivery of the item that
14    is  being  sold, but may be filed by the retailer at any time
15    sooner than that if he chooses to  do  so.   The  transaction
16    reporting  return  and  tax  remittance or proof of exemption
17    from  the  Illinois  use  tax  may  be  transmitted  to   the
18    Department  by  way  of the State agency with which, or State
19    officer with whom the  tangible  personal  property  must  be
20    titled or registered (if titling or registration is required)
21    if  the Department and such agency or State officer determine
22    that  this  procedure  will  expedite   the   processing   of
23    applications for title or registration.
24        With each such transaction reporting return, the retailer
25    shall  remit  the  proper  amount of tax due (or shall submit
26    satisfactory evidence that the sale is not taxable if that is
27    the case), to the Department or  its  agents,  whereupon  the
28    Department  shall  issue,  in the purchaser's name, a use tax
29    receipt (or a certificate of exemption if the  Department  is
30    satisfied  that the particular sale is tax exempt) which such
31    purchaser may submit to  the  agency  with  which,  or  State
32    officer  with  whom,  he  must title or register the tangible
33    personal  property  that   is   involved   (if   titling   or
34    registration  is  required)  in  support  of such purchaser's
                            -84-               LRB9007347KDpc
 1    application for an Illinois certificate or other evidence  of
 2    title or registration to such tangible personal property.
 3        No  retailer's failure or refusal to remit tax under this
 4    Act precludes a user, who has paid  the  proper  tax  to  the
 5    retailer,  from  obtaining  his certificate of title or other
 6    evidence of title or registration (if titling or registration
 7    is required) upon satisfying the Department  that  such  user
 8    has paid the proper tax (if tax is due) to the retailer.  The
 9    Department  shall  adopt  appropriate  rules to carry out the
10    mandate of this paragraph.
11        If the user who would otherwise pay tax to  the  retailer
12    wants  the transaction reporting return filed and the payment
13    of the tax or proof  of  exemption  made  to  the  Department
14    before the retailer is willing to take these actions and such
15    user  has  not  paid  the  tax to the retailer, such user may
16    certify to the fact of such delay by  the  retailer  and  may
17    (upon  the  Department  being  satisfied of the truth of such
18    certification)  transmit  the  information  required  by  the
19    transaction reporting return and the remittance  for  tax  or
20    proof  of exemption directly to the Department and obtain his
21    tax receipt or exemption determination, in  which  event  the
22    transaction  reporting  return  and  tax remittance (if a tax
23    payment was required) shall be credited by the Department  to
24    the  proper  retailer's  account  with  the  Department,  but
25    without  the  2.1%  or  1.75%  discount  provided for in this
26    Section being allowed.  When the user pays the  tax  directly
27    to  the  Department,  he shall pay the tax in the same amount
28    and in the same form in which it would be remitted if the tax
29    had been remitted to the Department by the retailer.
30        Refunds made by the seller during  the  preceding  return
31    period   to  purchasers,  on  account  of  tangible  personal
32    property returned to  the  seller,  shall  be  allowed  as  a
33    deduction  under  subdivision  5  of his monthly or quarterly
34    return,  as  the  case  may  be,  in  case  the  seller   had
                            -85-               LRB9007347KDpc
 1    theretofore  included  the  receipts  from  the  sale of such
 2    tangible personal property in a return filed by him  and  had
 3    paid  the  tax  imposed  by  this  Act  with  respect to such
 4    receipts.
 5        Where the seller is a corporation, the  return  filed  on
 6    behalf  of such corporation shall be signed by the president,
 7    vice-president, secretary or treasurer  or  by  the  properly
 8    accredited agent of such corporation.
 9        Where  the  seller  is  a  limited liability company, the
10    return filed on behalf of the limited liability company shall
11    be signed by a manager, member, or properly accredited  agent
12    of the limited liability company.
13        Except  as  provided in this Section, the retailer filing
14    the return under this Section shall, at the  time  of  filing
15    such  return, pay to the Department the amount of tax imposed
16    by this Act less a discount of 2.1% prior to January 1,  1990
17    and  1.75%  on  and after January 1, 1990, or $5 per calendar
18    year, whichever is greater, which is allowed to reimburse the
19    retailer  for  the  expenses  incurred  in  keeping  records,
20    preparing and filing returns, remitting the tax and supplying
21    data to the  Department  on  request.   Any  prepayment  made
22    pursuant  to  Section 2d of this Act shall be included in the
23    amount on which such 2.1% or 1.75% discount is computed.   In
24    the  case  of  retailers  who  report  and  pay  the tax on a
25    transaction  by  transaction  basis,  as  provided  in   this
26    Section,  such  discount  shall  be  taken with each such tax
27    remittance instead of when such retailer files  his  periodic
28    return.
29        If  the  taxpayer's  average monthly tax liability to the
30    Department under this Act,  the  Use  Tax  Act,  the  Service
31    Occupation  Tax  Act,  and the Service Use Tax Act, excluding
32    any liability  for  prepaid  sales  tax  to  be  remitted  in
33    accordance  with  Section 2d of this Act, was $10,000 or more
34    during the preceding 4 complete calendar quarters,  he  shall
                            -86-               LRB9007347KDpc
 1    file  a return with the Department each month by the 20th day
 2    of the month next following the month during which  such  tax
 3    liability   is  incurred  and  shall  make  payments  to  the
 4    Department on or before the 7th, 15th, 22nd and last  day  of
 5    the  month  during  which such liability is incurred.  If the
 6    month during which such tax liability is incurred began prior
 7    to January 1, 1985, each payment shall be in an amount  equal
 8    to 1/4 of the taxpayer's actual liability for the month or an
 9    amount set by the Department not to exceed 1/4 of the average
10    monthly  liability  of the taxpayer to the Department for the
11    preceding 4 complete calendar quarters (excluding  the  month
12    of  highest  liability  and  the month of lowest liability in
13    such 4 quarter period).  If the month during which  such  tax
14    liability  is incurred begins on or after January 1, 1985 and
15    prior to January 1, 1987, each payment shall be in an  amount
16    equal  to  22.5%  of  the taxpayer's actual liability for the
17    month or 27.5% of  the  taxpayer's  liability  for  the  same
18    calendar  month  of  the preceding year.  If the month during
19    which such tax liability  is  incurred  begins  on  or  after
20    January  1,  1987  and prior to January 1, 1988, each payment
21    shall be in an amount equal to 22.5% of the taxpayer's actual
22    liability for the month or 26.25% of the taxpayer's liability
23    for the same calendar month of the preceding  year.   If  the
24    month  during  which such tax liability is incurred begins on
25    or after January 1, 1988, and prior to January  1,  1989,  or
26    begins  on or after January 1, 1996, each payment shall be in
27    an amount equal to 22.5% of the taxpayer's  actual  liability
28    for the month or 25% of the taxpayer's liability for the same
29    calendar  month  of  the  preceding year. If the month during
30    which such tax liability  is  incurred  begins  on  or  after
31    January  1,  1989, and prior to January 1, 1996, each payment
32    shall be in an amount equal to 22.5% of the taxpayer's actual
33    liability for the month or 25% of  the  taxpayer's  liability
34    for  the same calendar month of the preceding year or 100% of
                            -87-               LRB9007347KDpc
 1    the taxpayer's  actual  liability  for  the  quarter  monthly
 2    reporting   period.   The  amount  of  such  quarter  monthly
 3    payments shall be credited against the final tax liability of
 4    the taxpayer's return for that month.  Once  applicable,  the
 5    requirement  of the making of quarter monthly payments to the
 6    Department  by  taxpayers  having  an  average  monthly   tax
 7    liability  of  $10,000  or  more  as determined in the manner
 8    provided above shall continue until such  taxpayer's  average
 9    monthly  liability  to  the Department during the preceding 4
10    complete calendar quarters (excluding the  month  of  highest
11    liability  and  the  month  of lowest liability) is less than
12    $9,000, or until such taxpayer's average monthly liability to
13    the Department as computed for each calendar quarter of the 4
14    preceding complete  calendar  quarter  period  is  less  than
15    $10,000.  However, if a taxpayer can show the Department that
16    a  substantial change in the taxpayer's business has occurred
17    which causes the taxpayer  to  anticipate  that  his  average
18    monthly  tax  liability for the reasonably foreseeable future
19    will fall below $10,000, then such taxpayer may petition  the
20    Department  for a change in such taxpayer's reporting status.
21    The Department shall change such taxpayer's reporting  status
22    unless  it  finds  that such change is seasonal in nature and
23    not likely to be long term.   If  any  such  quarter  monthly
24    payment  is not paid at the time or in the amount required by
25    this Section, then the taxpayer shall be liable for penalties
26    and interest on the difference between the minimum amount due
27    as a payment and the amount of such quarter  monthly  payment
28    actually  and timely paid, except insofar as the taxpayer has
29    previously made payments for that month to the Department  in
30    excess  of the minimum payments previously due as provided in
31    this Section. The Department shall make reasonable rules  and
32    regulations  to govern the quarter monthly payment amount and
33    quarter monthly payment dates for taxpayers who file on other
34    than a calendar monthly basis.
                            -88-               LRB9007347KDpc
 1        Without regard to whether a taxpayer is required to  make
 2    quarter monthly payments as specified above, any taxpayer who
 3    is  required  by  Section 2d of this Act to collect and remit
 4    prepaid taxes and has collected prepaid taxes  which  average
 5    in  excess  of  $25,000  per  month  during  the  preceding 2
 6    complete calendar quarters, shall  file  a  return  with  the
 7    Department  as required by Section 2f and shall make payments
 8    to the Department on or before the 7th, 15th, 22nd  and  last
 9    day of the month during which such liability is incurred.  If
10    the  month  during which such tax liability is incurred began
11    prior to the effective date of this amendatory Act  of  1985,
12    each payment shall be in an amount not less than 22.5% of the
13    taxpayer's  actual  liability under Section 2d.  If the month
14    during which such tax liability  is  incurred  begins  on  or
15    after  January  1,  1986,  each payment shall be in an amount
16    equal to 22.5% of the taxpayer's  actual  liability  for  the
17    month  or  27.5%  of  the  taxpayer's  liability for the same
18    calendar month of the preceding calendar year.  If the  month
19    during  which  such  tax  liability  is incurred begins on or
20    after January 1, 1987, each payment shall  be  in  an  amount
21    equal  to  22.5%  of  the taxpayer's actual liability for the
22    month or 26.25% of the  taxpayer's  liability  for  the  same
23    calendar  month  of  the  preceding year.  The amount of such
24    quarter monthly payments shall be credited against the  final
25    tax  liability  of the taxpayer's return for that month filed
26    under this Section or Section 2f, as the case may  be.   Once
27    applicable,  the requirement of the making of quarter monthly
28    payments to the Department pursuant to this  paragraph  shall
29    continue  until  such  taxpayer's average monthly prepaid tax
30    collections during the preceding 2 complete calendar quarters
31    is $25,000 or less.  If any such quarter monthly  payment  is
32    not  paid at the time or in the amount required, the taxpayer
33    shall  be  liable  for  penalties  and   interest   on   such
34    difference,  except  insofar  as  the taxpayer has previously
                            -89-               LRB9007347KDpc
 1    made payments  for  that  month  in  excess  of  the  minimum
 2    payments previously due.
 3        If  any  payment provided for in this Section exceeds the
 4    taxpayer's liabilities under this Act, the Use Tax  Act,  the
 5    Service  Occupation  Tax  Act and the Service Use Tax Act, as
 6    shown on an original monthly return, the Department shall, if
 7    requested by the taxpayer, issue to  the  taxpayer  a  credit
 8    memorandum  no  later than 30 days after the date of payment.
 9    The  credit  evidenced  by  such  credit  memorandum  may  be
10    assigned by the taxpayer to a  similar  taxpayer  under  this
11    Act,  the  Use Tax Act, the Service Occupation Tax Act or the
12    Service Use Tax Act, in accordance with reasonable rules  and
13    regulations  to  be prescribed by the Department.  If no such
14    request is made, the taxpayer may credit such excess  payment
15    against  tax  liability  subsequently  to  be remitted to the
16    Department under this Act,  the  Use  Tax  Act,  the  Service
17    Occupation  Tax Act or the Service Use Tax Act, in accordance
18    with reasonable  rules  and  regulations  prescribed  by  the
19    Department.   If  the Department subsequently determined that
20    all or any part of the credit taken was not actually  due  to
21    the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
22    shall  be  reduced by 2.1% or 1.75% of the difference between
23    the credit taken and that actually  due,  and  that  taxpayer
24    shall   be   liable   for  penalties  and  interest  on  such
25    difference.
26        If a retailer of motor fuel is entitled to a credit under
27    Section 2d of this Act which exceeds the taxpayer's liability
28    to the Department under this Act  for  the  month  which  the
29    taxpayer  is  filing a return, the Department shall issue the
30    taxpayer a credit memorandum for the excess.
31        Beginning January 1,  1990,  each  month  the  Department
32    shall  pay into the Local Government Tax Fund, a special fund
33    in the State  treasury  which  is  hereby  created,  the  net
34    revenue  realized  for the preceding month from the 1% tax on
                            -90-               LRB9007347KDpc
 1    sales of food for human consumption which is to  be  consumed
 2    off  the  premises  where  it  is  sold (other than alcoholic
 3    beverages, soft drinks and food which has been  prepared  for
 4    immediate  consumption)  and prescription and nonprescription
 5    medicines,  drugs,  medical  appliances  and  insulin,  urine
 6    testing materials, syringes and needles used by diabetics.
 7        Beginning January 1,  1990,  each  month  the  Department
 8    shall  pay  into the County and Mass Transit District Fund, a
 9    special fund in the State treasury which is  hereby  created,
10    4%  of  the net revenue realized for the preceding month from
11    the 6.25% general rate.
12        Each month the Department shall pay into the  County  and
13    Mass  Transit  District  Fund 20% of the net revenue realized
14    for the preceding month from the 1.25% rate imposed upon  the
15    sale  of any motor vehicle that is sold at retail to a lessor
16    for  purposes  of  leasing  under  a  lease  subject  to  the
17    Automobile Leasing Occupation and Use Tax Act.
18        Beginning January 1,  1990,  each  month  the  Department
19    shall  pay  into the Local Government Tax Fund 16% of the net
20    revenue realized for  the  preceding  month  from  the  6.25%
21    general  rate  on  the  selling  price  of  tangible personal
22    property.
23        Each month  the  Department  shall  pay  into  the  Local
24    Government  Tax  Fund 80% of the net revenue realized for the
25    preceding month from the 1.25% rate imposed upon the sale  of
26    any  motor  vehicle  that  is  sold at retail to a lessor for
27    purposes of leasing under a lease subject to  the  Automobile
28    Leasing Occupation and Use Tax Act.
29        Of the remainder of the moneys received by the Department
30    pursuant  to  this  Act, and including all moneys received by
31    the Department pursuant  to  Section  10  of  the  Automobile
32    Leasing  Occupation and Use Tax Act, and including all of the
33    moneys received pursuant to the 5% rate imposed upon sales of
34    motor vehicles by lessors to the lessees of such vehicles  in
                            -91-               LRB9007347KDpc
 1    connection  with  a  lease that was subject to the Automobile
 2    Leasing Occupation and Use Tax Act
 3        Of the remainder of the moneys received by the Department
 4    pursuant to this Act, (a) 1.75% thereof shall  be  paid  into
 5    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
 6    and on and after July 1, 1989, 3.8%  thereof  shall  be  paid
 7    into  the  Build Illinois Fund; provided, however, that if in
 8    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
 9    as the case may be, of the moneys received by the  Department
10    and required to be paid into the Build Illinois Fund pursuant
11    to  this  Act, Section 9 of the Use Tax Act, Section 9 of the
12    Service Use Tax Act, and Section 9 of the Service  Occupation
13    Tax  Act,  such  Acts being hereinafter called the "Tax Acts"
14    and such aggregate of 2.2% or 3.8%, as the case  may  be,  of
15    moneys being hereinafter called the "Tax Act Amount", and (2)
16    the  amount  transferred  to the Build Illinois Fund from the
17    State and Local Sales Tax Reform Fund shall be less than  the
18    Annual  Specified  Amount (as hereinafter defined), an amount
19    equal to the difference shall be immediately  paid  into  the
20    Build  Illinois  Fund  from  other  moneys  received  by  the
21    Department  pursuant  to  the Tax Acts; the "Annual Specified
22    Amount" means the amounts specified below  for  fiscal  years
23    1986 through 1993:
24             Fiscal Year              Annual Specified Amount
25                 1986                       $54,800,000
26                 1987                       $76,650,000
27                 1988                       $80,480,000
28                 1989                       $88,510,000
29                 1990                       $115,330,000
30                 1991                       $145,470,000
31                 1992                       $182,730,000
32                 1993                      $206,520,000;
33    and  means  the Certified Annual Debt Service Requirement (as
34    defined in Section 13 of the Build Illinois Bond Act) or  the
                            -92-               LRB9007347KDpc
 1    Tax  Act  Amount,  whichever is greater, for fiscal year 1994
 2    and each fiscal year thereafter; and further  provided,  that
 3    if  on  the last business day of any month the sum of (1) the
 4    Tax Act Amount  required  to  be  deposited  into  the  Build
 5    Illinois  Bond Account in the Build Illinois Fund during such
 6    month and (2) the amount transferred to  the  Build  Illinois
 7    Fund  from  the  State  and Local Sales Tax Reform Fund shall
 8    have been less than 1/12 of the Annual Specified  Amount,  an
 9    amount equal to the difference shall be immediately paid into
10    the  Build  Illinois  Fund  from other moneys received by the
11    Department pursuant to the Tax Acts; and,  further  provided,
12    that  in  no  event  shall  the  payments  required under the
13    preceding proviso result in aggregate payments into the Build
14    Illinois Fund pursuant to this clause (b) for any fiscal year
15    in excess of the greater of (i) the Tax Act  Amount  or  (ii)
16    the  Annual  Specified  Amount  for  such  fiscal  year.  The
17    amounts payable into the Build Illinois Fund under clause (b)
18    of the first sentence in this paragraph shall be payable only
19    until such time as the aggregate amount on deposit under each
20    trust  indenture  securing  Bonds  issued   and   outstanding
21    pursuant to the Build Illinois Bond Act is sufficient, taking
22    into  account any future investment income, to fully provide,
23    in accordance with such indenture, for the defeasance  of  or
24    the  payment  of  the  principal  of,  premium,  if  any, and
25    interest on the Bonds secured by such indenture  and  on  any
26    Bonds expected to be issued thereafter and all fees and costs
27    payable  with  respect  thereto,  all  as  certified  by  the
28    Director  of  the  Bureau  of  the  Budget.   If  on the last
29    business day of any month  in  which  Bonds  are  outstanding
30    pursuant  to  the  Build  Illinois Bond Act, the aggregate of
31    moneys deposited in the Build Illinois Bond  Account  in  the
32    Build  Illinois  Fund  in  such  month shall be less than the
33    amount required to be transferred  in  such  month  from  the
34    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
                            -93-               LRB9007347KDpc
 1    Retirement and Interest Fund pursuant to Section  13  of  the
 2    Build  Illinois  Bond Act, an amount equal to such deficiency
 3    shall be immediately paid from other moneys received  by  the
 4    Department  pursuant  to  the  Tax Acts to the Build Illinois
 5    Fund; provided, however, that any amounts paid to  the  Build
 6    Illinois  Fund  in  any fiscal year pursuant to this sentence
 7    shall be deemed to constitute payments pursuant to clause (b)
 8    of the first sentence of this paragraph and shall reduce  the
 9    amount  otherwise  payable  for  such fiscal year pursuant to
10    that clause (b).   The  moneys  received  by  the  Department
11    pursuant  to  this  Act and required to be deposited into the
12    Build Illinois Fund are subject  to  the  pledge,  claim  and
13    charge  set  forth  in  Section 12 of the Build Illinois Bond
14    Act.
15        Subject to payment of amounts  into  the  Build  Illinois
16    Fund  as  provided  in  the  preceding  paragraph  or  in any
17    amendment thereto hereafter enacted, the following  specified
18    monthly   installment   of   the   amount  requested  in  the
19    certificate of the Chairman  of  the  Metropolitan  Pier  and
20    Exposition  Authority  provided  under  Section  8.25f of the
21    State Finance Act, but not in excess of  sums  designated  as
22    "Total  Deposit",  shall  be  deposited in the aggregate from
23    collections under Section 9 of the Use Tax Act, Section 9  of
24    the  Service Use Tax Act, Section 9 of the Service Occupation
25    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
26    into  the  McCormick  Place  Expansion  Project  Fund  in the
27    specified fiscal years.
28             Fiscal Year                   Total Deposit
29                 1993                            $0
30                 1994                        53,000,000
31                 1995                        58,000,000
32                 1996                        61,000,000
33                 1997                        64,000,000
34                 1998                        68,000,000
                            -94-               LRB9007347KDpc
 1                 1999                        71,000,000
 2                 2000                        75,000,000
 3                 2001                        80,000,000
 4                 2002                        84,000,000
 5                 2003                        89,000,000
 6               2004 and                      93,000,000
 7        each fiscal year
 8        thereafter that bonds
 9        are outstanding under
10        Section 13.2 of the
11        Metropolitan Pier and
12        Exposition Authority
13        Act.
14        Beginning July 20, 1993 and in each month of each  fiscal
15    year  thereafter,  one-eighth  of the amount requested in the
16    certificate of the Chairman  of  the  Metropolitan  Pier  and
17    Exposition  Authority  for  that fiscal year, less the amount
18    deposited into the McCormick Place Expansion Project Fund  by
19    the  State Treasurer in the respective month under subsection
20    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
21    Authority  Act,  plus cumulative deficiencies in the deposits
22    required under this Section for previous  months  and  years,
23    shall be deposited into the McCormick Place Expansion Project
24    Fund,  until  the  full amount requested for the fiscal year,
25    but not in excess of the amount  specified  above  as  "Total
26    Deposit", has been deposited.
27        Subject  to  payment  of  amounts into the Build Illinois
28    Fund and the McCormick Place Expansion Project Fund  pursuant
29    to  the  preceding  paragraphs  or  in  any amendment thereto
30    hereafter enacted, each month the Department shall  pay  into
31    the  Local  Government  Distributive  Fund  0.4%  of  the net
32    revenue realized for the preceding month from the 5%  general
33    rate  or  0.4%  of  80%  of  the net revenue realized for the
34    preceding month from the 6.25% general rate, as the case  may
                            -95-               LRB9007347KDpc
 1    be,  on the selling price of tangible personal property which
 2    amount shall, subject to  appropriation,  be  distributed  as
 3    provided  in  Section 2 of the State Revenue Sharing Act.  No
 4    payments or distributions pursuant to this paragraph shall be
 5    made if the  tax  imposed  by  this  Act  on  photoprocessing
 6    products  is  declared  unconstitutional,  or if the proceeds
 7    from such tax are unavailable  for  distribution  because  of
 8    litigation.
 9        Subject  to  payment  of  amounts into the Build Illinois
10    Fund, the McCormick Place Expansion Project to the  preceding
11    paragraphs  or  in  any amendments thereto hereafter enacted,
12    beginning July 1, 1993, the Department shall each  month  pay
13    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
14    revenue realized for  the  preceding  month  from  the  6.25%
15    general  rate  on  the  selling  price  of  tangible personal
16    property.
17        Of the remainder of the moneys received by the Department
18    pursuant to this Act, 75% thereof  shall  be  paid  into  the
19    State Treasury and 25% shall be reserved in a special account
20    and  used  only for the transfer to the Common School Fund as
21    part of the monthly transfer from the General Revenue Fund in
22    accordance with Section 8a of the State Finance Act.
23        The Department may, upon separate  written  notice  to  a
24    taxpayer,  require  the taxpayer to prepare and file with the
25    Department on a form prescribed by the Department within  not
26    less  than  60  days  after  receipt  of the notice an annual
27    information return for the tax year specified in the  notice.
28    Such   annual  return  to  the  Department  shall  include  a
29    statement of gross receipts as shown by the  retailer's  last
30    Federal  income  tax  return.   If  the total receipts of the
31    business as reported in the Federal income tax return do  not
32    agree  with  the gross receipts reported to the Department of
33    Revenue for the same period, the retailer shall attach to his
34    annual return a schedule showing a reconciliation  of  the  2
                            -96-               LRB9007347KDpc
 1    amounts  and  the reasons for the difference.  The retailer's
 2    annual return to the Department shall also disclose the  cost
 3    of goods sold by the retailer during the year covered by such
 4    return,  opening  and  closing  inventories of such goods for
 5    such year, costs of goods used from stock or taken from stock
 6    and given away by the  retailer  during  such  year,  payroll
 7    information  of  the retailer's business during such year and
 8    any additional reasonable information  which  the  Department
 9    deems  would  be  helpful  in determining the accuracy of the
10    monthly, quarterly or annual returns filed by  such  retailer
11    as provided for in this Section.
12        If the annual information return required by this Section
13    is  not  filed  when  and  as required, the taxpayer shall be
14    liable as follows:
15             (i)  Until January 1, 1994, the  taxpayer  shall  be
16        liable  for  a  penalty equal to 1/6 of 1% of the tax due
17        from such taxpayer under this Act during the period to be
18        covered by the annual return for each month  or  fraction
19        of  a  month  until such return is filed as required, the
20        penalty to be assessed and collected in the  same  manner
21        as any other penalty provided for in this Act.
22             (ii)  On  and  after  January  1, 1994, the taxpayer
23        shall be liable for a penalty as described in Section 3-4
24        of the Uniform Penalty and Interest Act.
25        The chief executive officer, proprietor, owner or highest
26    ranking manager shall sign the annual return to  certify  the
27    accuracy  of  the information contained therein.   Any person
28    who willfully signs the annual  return  containing  false  or
29    inaccurate   information  shall  be  guilty  of  perjury  and
30    punished accordingly.  The annual return form  prescribed  by
31    the  Department  shall  include  a  warning  that  the person
32    signing the return may be liable for perjury.
33        The provisions of this Section concerning the  filing  of
34    an  annual  information return do not apply to a retailer who
                            -97-               LRB9007347KDpc
 1    is not required to file an income tax return with the  United
 2    States Government.
 3        As  soon  as  possible after the first day of each month,
 4    upon  certification  of  the  Department  of   Revenue,   the
 5    Comptroller  shall  order transferred and the Treasurer shall
 6    transfer from the General Revenue Fund to the Motor Fuel  Tax
 7    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
 8    realized under this  Act  for  the  second  preceding  month;
 9    except  that  this  transfer shall not be made for the months
10    February through June, 1992.
11        Net revenue realized for a month  shall  be  the  revenue
12    collected  by the State pursuant to this Act, less the amount
13    paid out during  that  month  as  refunds  to  taxpayers  for
14    overpayment of liability.
15        For  greater simplicity of administration, manufacturers,
16    importers and wholesalers whose products are sold  at  retail
17    in Illinois by numerous retailers, and who wish to do so, may
18    assume  the  responsibility  for accounting and paying to the
19    Department all tax accruing under this Act  with  respect  to
20    such  sales,  if  the  retailers who are affected do not make
21    written objection to the Department to this arrangement.
22        Any  person  who  promotes,  organizes,  provides  retail
23    selling space for concessionaires or other types  of  sellers
24    at the Illinois State Fair, DuQuoin State Fair, county fairs,
25    local  fairs, art shows, flea markets and similar exhibitions
26    or events, including any transient  merchant  as  defined  by
27    Section  2 of the Transient Merchant Act of 1987, is required
28    to file a report with the Department providing  the  name  of
29    the  merchant's  business,  the name of the person or persons
30    engaged in merchant's business,  the  permanent  address  and
31    Illinois  Retailers Occupation Tax Registration Number of the
32    merchant, the dates and  location  of  the  event  and  other
33    reasonable  information that the Department may require.  The
34    report must be filed not later than the 20th day of the month
                            -98-               LRB9007347KDpc
 1    next following the month during which the event  with  retail
 2    sales  was  held.   Any  person  who  fails  to file a report
 3    required by this Section commits a business  offense  and  is
 4    subject to a fine not to exceed $250.
 5        Any  person  engaged  in the business of selling tangible
 6    personal property at retail as a concessionaire or other type
 7    of seller at the  Illinois  State  Fair,  county  fairs,  art
 8    shows, flea markets and similar exhibitions or events, or any
 9    transient merchants, as defined by Section 2 of the Transient
10    Merchant  Act of 1987, may be required to make a daily report
11    of the amount of such sales to the Department and to  make  a
12    daily  payment of the full amount of tax due.  The Department
13    shall impose this requirement when it finds that there  is  a
14    significant  risk  of loss of revenue to the State at such an
15    exhibition or event.   Such  a  finding  shall  be  based  on
16    evidence  that  a  substantial  number  of concessionaires or
17    other sellers who are  not  residents  of  Illinois  will  be
18    engaging   in  the  business  of  selling  tangible  personal
19    property at retail at  the  exhibition  or  event,  or  other
20    evidence  of  a  significant  risk  of loss of revenue to the
21    State.  The Department shall notify concessionaires and other
22    sellers affected by the imposition of this  requirement.   In
23    the   absence   of   notification   by  the  Department,  the
24    concessionaires and other sellers shall file their returns as
25    otherwise required in this Section.
26    (Source: P.A.  89-89,  eff.  6-30-95;  89-235,  eff.  8-4-95;
27    89-379,  eff.  1-1-96;  89-626,  eff.  8-9-96;  90-491,  eff.
28    1-1-99.)
29        Section 99.  Effective date.  This Act takes effect  July
30    1, 1998.
[ Top ]
State of Illinois90th General AssemblyLegislation

State of Illinois
90^th General Assembly
Legislation
