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90_SB0856enr
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Amends the Civil Administrative Code to allow the
Department of Revenue, upon certification of past due child
support, to collect the delinquency in any manner authorized
for the collection of any tax administered by the Department
(now only delinquent personal income tax). Amends the State
Finance Act to provide that a retail sale by a producer of
coal or other mineral is a sale at retail where it is
extracted from the earth. Amends the Illinois Income Tax Act.
In the definition of base income, deletes real estate
investment trusts from the language concerning the
modification of taxable income for a corporation. Provides
that in the case of a trust, unspecified items of income or
deductions taken into account in computing base income and
not otherwise allocated shall be allocated to the State if
the taxpayer had commercial domicile in the State when the
item was paid, incurred, or accrued (now shall not be
allocated to State). Amends the Use Tax Act, the Service Use
Tax Act, the Service Occupation Tax Act, and the Retailers'
Occupation Tax Act to require that a protest to the Notice of
Tentative Determination of Claim be filed within 60 days (now
20 days). Amends the Cigarette Tax Act, the Cigarette Use Tax
Act, the Messages Tax Act, the Gas Revenue Tax Act, the
Public Utilities Revenue Act, the Water Company Invested
Capital Tax Act, and the Telecommunications Excise Tax Act to
provide that if both the Department and the taxpayer have
agreed to an extension of time to issue a notice of tax
liability, a claim for credit or refund may be filed at any
time prior to the expiration of the agreed upon period.
Amends the Senior Citizens and Disabled Persons Property Tax
Relief and Pharmaceutical Assistance Act to include in the
list of factors used to determine "income" an amount equal to
any net operating loss carryover deduction or capital loss
carryover deduction taken during the taxable year. Makes
other changes. Effective immediately.
LRB9000732KDcbA
SB856 Enrolled LRB9000732KDcbA
1 AN ACT in relation to taxes, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Civil Administrative Code of Illinois is
5 amended by changing Section 39b52 and adding 39b53 as
6 follows:
7 (20 ILCS 2505/39b52)
8 Sec. 39b52. Collection of past due support. Upon
9 certification of past due child support amounts from the
10 Department of Public Aid, the Department of Revenue may
11 collect the delinquency in any manner authorized for the
12 collection of any tax administered by the Department of
13 Revenue a delinquent personal income tax liability. The
14 Department of Revenue shall notify the Department of Public
15 Aid when the delinquency or any portion of the delinquency
16 has been collected under this Section. Any child support
17 delinquency collected by the Department of Revenue, including
18 those amounts that result in overpayment of a child support
19 delinquency, shall be deposited in, or transferred to, the
20 Child Support Enforcement Trust Fund. The Department of
21 Revenue may implement this Section through the use of
22 emergency rules in accordance with Section 5-45 of the
23 Illinois Administrative Procedure Act. For purposes of the
24 Illinois Administrative Procedure Act, the adoption of rules
25 to implement this Section shall be considered an emergency
26 and necessary for the public interest, safety, and welfare.
27 (Source: P.A. 89-6, eff. 12-31-95.)
28 (20 ILCS 2505/39b53 new)
29 Sec. 39b53. Income Tax Reciprocal Agreements.
30 (a) Reciprocal agreement cost study. The Department of
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1 Revenue shall study the use and cost effectiveness of all
2 reciprocal agreements entered into under the authority of
3 Sections 302 and 701 of the Illinois Income Tax Act. The
4 Department shall report to the General Assembly as to the
5 fiscal impact on Illinois income tax collections of each of
6 the reciprocal agreements by January 1, 1999 and every 5
7 years thereafter. The Department of Revenue shall have the
8 authority to require that employers provide all information
9 necessary to complete the study on income tax withholding
10 returns filed with the Department under Section 704 of the
11 Illinois Income Tax Act. The Department shall have the
12 authority to require that employees provide all information
13 necessary to complete the study on individual income tax
14 returns filed under Section 502 of the Illinois Income Tax
15 Act.
16 (b) Revocation of reciprocal agreements. Upon receipt
17 of the cost study or at any time thereafter, the General
18 Assembly may adopt a joint resolution by an affirmative vote
19 of a majority of each house directing the Director of Revenue
20 to revoke any reciprocal agreement with any other state that
21 results in a loss of revenue to the State of Illinois. Any
22 joint resolution shall specify the date upon which the
23 reciprocal agreement is to be revoked, which date shall be no
24 sooner than the beginning of the next subsequent calendar
25 year that is at least 6 months after the adoption of the
26 joint resolution.
27 (c) Authority to enter into compensation agreements.
28 Before any revocation by joint resolution adopted by the
29 General Assembly under subsection (b), the Director of
30 Revenue shall have the authority to enter into a compensation
31 or rebating agreement with any reciprocal state. Any
32 compensation agreement shall provide that the reciprocal
33 state shall provide a rebate to the State of Illinois to
34 compensate for the loss of revenue. The Director of Revenue
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1 shall have the authority to enter into agreements with
2 reciprocal states to contract with any third party mutually
3 agreed to by the Director and the reciprocal state to
4 establish a rebate or compensation amount.
5 Section 10. 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
SB856 Enrolled -4- LRB9000732KDcbA
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 6.25% general rate on sales subject to taxation
5 under the Retailers' Occupation Tax Act and the Service
6 Occupation Tax Act, which occurred in municipalities, shall
7 be distributed to each municipality, based upon the sales
8 which occurred in that municipality. The remainder shall be
9 distributed to each county, based upon the sales which
10 occurred in the unincorporated area of such county.
11 For the purpose of determining allocation to the local
12 government unit, a retail sale by a producer of coal or other
13 mineral mined in Illinois is a sale at retail at the place
14 where the coal or other mineral mined in Illinois is
15 extracted from the earth. This paragraph does not apply to
16 coal or other mineral when it is delivered or shipped by the
17 seller to the purchaser at a point outside Illinois so that
18 the sale is exempt under the United States Constitution as a
19 sale in interstate or foreign commerce.
20 Whenever the Department determines that a refund of money
21 paid into the Local Government Tax Fund should be made to a
22 claimant instead of issuing a credit memorandum, the
23 Department shall notify the State Comptroller, who shall
24 cause the order to be drawn for the amount specified, and to
25 the person named, in such notification from the Department.
26 Such refund shall be paid by the State Treasurer out of the
27 Local Government Tax Fund.
28 On or before the 25th day of each calendar month, the
29 Department shall prepare and certify to the Comptroller the
30 disbursement of stated sums of money to named municipalities
31 and counties, the municipalities and counties to be those
32 entitled to distribution of taxes or penalties paid to the
33 Department during the second preceding calendar month. The
34 amount to be paid to each municipality or county shall be the
SB856 Enrolled -5- LRB9000732KDcbA
1 amount (not including credit memoranda) collected during the
2 second preceding calendar month by the Department and paid
3 into the Local Government Tax Fund, plus an amount the
4 Department determines is necessary to offset any amounts
5 which were erroneously paid to a different taxing body, and
6 not including an amount equal to the amount of refunds made
7 during the second preceding calendar month by the Department,
8 and not including any amount which the Department determines
9 is necessary to offset any amounts which are payable to a
10 different taxing body but were erroneously paid to the
11 municipality or county. Within 10 days after receipt, by the
12 Comptroller, of the disbursement certification to the
13 municipalities and counties, provided for in this Section to
14 be given to the Comptroller by the Department, the
15 Comptroller shall cause the orders to be drawn for the
16 respective amounts in accordance with the directions
17 contained in such certification.
18 When certifying the amount of monthly disbursement to a
19 municipality or county under this Section, the Department
20 shall increase or decrease that amount by an amount necessary
21 to offset any misallocation of previous disbursements. The
22 offset amount shall be the amount erroneously disbursed
23 within the 6 months preceding the time a misallocation is
24 discovered.
25 The provisions directing the distributions from the
26 special fund in the State Treasury provided for in this
27 Section shall constitute an irrevocable and continuing
28 appropriation of all amounts as provided herein. The State
29 Treasurer and State Comptroller are hereby authorized to make
30 distributions as provided in this Section.
31 In construing any development, redevelopment, annexation,
32 preannexation or other lawful agreement in effect prior to
33 September 1, 1990, which describes or refers to receipts from
34 a county or municipal retailers' occupation tax, use tax or
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1 service occupation tax which now cannot be imposed, such
2 description or reference shall be deemed to include the
3 replacement revenue for such abolished taxes, distributed
4 from the Local Government Tax Fund.
5 (Source: P.A. 86-928; 86-1481.)
6 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
7 Sec. 6z-20. Of the money received from the 6.25% general
8 rate on sales subject to taxation under the Retailers'
9 Occupation Tax Act and Service Occupation Tax Act and paid
10 into the County and Mass Transit District Fund, distribution
11 to the Regional Transportation Authority tax fund, created
12 pursuant to Section 4.03 of the Regional Transportation
13 Authority Act, for deposit therein shall be made based upon
14 the retail sales occurring in a county having more than
15 3,000,000 inhabitants. The remainder shall be distributed to
16 each county having 3,000,000 or fewer inhabitants based upon
17 the retail sales occurring in each such county.
18 For the purpose of determining allocation to the local
19 government unit, a retail sale by a producer of coal or other
20 mineral mined in Illinois is a sale at retail at the place
21 where the coal or other mineral mined in Illinois is
22 extracted from the earth. This paragraph does not apply to
23 coal or other mineral when it is delivered or shipped by the
24 seller to the purchaser at a point outside Illinois so that
25 the sale is exempt under the United States Constitution as a
26 sale in interstate or foreign commerce.
27 Of the money received from the 6.25% general use tax rate
28 on tangible personal property which is purchased outside
29 Illinois at retail from a retailer and which is titled or
30 registered by any agency of this State's government and paid
31 into the County and Mass Transit District Fund, the amount
32 for which Illinois addresses for titling or registration
33 purposes are given as being in each county having more than
SB856 Enrolled -7- LRB9000732KDcbA
1 3,000,000 inhabitants shall be distributed into the Regional
2 Transportation Authority tax fund, created pursuant to
3 Section 4.03 of the Regional Transportation Authority Act.
4 The remainder of the money paid from such sales shall be
5 distributed to each county based on sales for which Illinois
6 addresses for titling or registration purposes are given as
7 being located in the county. Any money paid into the
8 Regional Transportation Authority Occupation and Use Tax
9 Replacement Fund from the County and Mass Transit District
10 Fund prior to January 14, 1991, which has not been paid to
11 the Authority prior to that date, shall be transferred to the
12 Regional Transportation Authority tax fund.
13 Whenever the Department determines that a refund of money
14 paid into the County and Mass Transit District Fund should be
15 made to a claimant instead of issuing a credit memorandum,
16 the Department shall notify the State Comptroller, who shall
17 cause the order to be drawn for the amount specified, and to
18 the person named, in such notification from the Department.
19 Such refund shall be paid by the State Treasurer out of the
20 County and Mass Transit District Fund.
21 On or before the 25th day of each calendar month, the
22 Department shall prepare and certify to the Comptroller the
23 disbursement of stated sums of money to the Regional
24 Transportation Authority and to named counties, the counties
25 to be those entitled to distribution, as hereinabove
26 provided, of taxes or penalties paid to the Department during
27 the second preceding calendar month. The amount to be paid
28 to the Regional Transportation Authority and each county
29 having 3,000,000 or fewer inhabitants shall be the amount
30 (not including credit memoranda) collected during the second
31 preceding calendar month by the Department and paid into the
32 County and Mass Transit District Fund, plus an amount the
33 Department determines is necessary to offset any amounts
34 which were erroneously paid to a different taxing body, and
SB856 Enrolled -8- LRB9000732KDcbA
1 not including an amount equal to the amount of refunds made
2 during the second preceding calendar month by the Department,
3 and not including any amount which the Department determines
4 is necessary to offset any amounts which were payable to a
5 different taxing body but were erroneously paid to the
6 Regional Transportation Authority or county. Within 10 days
7 after receipt, by the Comptroller, of the disbursement
8 certification to the Regional Transportation Authority and
9 counties, provided for in this Section to be given to the
10 Comptroller by the Department, the Comptroller shall cause
11 the orders to be drawn for the respective amounts in
12 accordance with the directions contained in such
13 certification.
14 When certifying the amount of a monthly disbursement to
15 the Regional Transportation Authority or to a county under
16 this Section, the Department shall increase or decrease that
17 amount by an amount necessary to offset any misallocation of
18 previous disbursements. The offset amount shall be the
19 amount erroneously disbursed within the 6 months preceding
20 the time a misallocation is discovered.
21 The provisions directing the distributions from the
22 special fund in the State Treasury provided for in this
23 Section and from the Regional Transportation Authority tax
24 fund created by Section 4.03 of the Regional Transportation
25 Authority Act 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
SB856 Enrolled -9- LRB9000732KDcbA
1 replacement revenue for such abolished taxes, distributed
2 from the County and Mass Transit District Fund or Local
3 Government Distributive Fund, as the case may be.
4 (Source: P.A. 86-928; 86-1481; 87-435.)
5 Section 15. The Illinois Income Tax Act is amended by
6 changing Sections 203, 301, 302, 506, 701, 905, 911, and 917
7 and adding Section 806 as follows:
8 (35 ILCS 5/203) (from Ch. 120, par. 2-203)
9 Sec. 203. Base income defined.
10 (a) Individuals.
11 (1) In general. In the case of an individual, base
12 income means an amount equal to the taxpayer's adjusted
13 gross income for the taxable year as modified by
14 paragraph (2).
15 (2) Modifications. The adjusted gross income
16 referred to in paragraph (1) shall be modified by adding
17 thereto the sum of the following amounts:
18 (A) An amount equal to all amounts paid or
19 accrued to the taxpayer as interest or dividends
20 during the taxable year to the extent excluded from
21 gross income in the computation of adjusted gross
22 income, except stock dividends of qualified public
23 utilities described in Section 305(e) of the
24 Internal Revenue Code;
25 (B) An amount equal to the amount of tax
26 imposed by this Act to the extent deducted from
27 gross income in the computation of adjusted gross
28 income for the taxable year;
29 (C) An amount equal to the amount received
30 during the taxable year as a recovery or refund of
31 real property taxes paid with respect to the
32 taxpayer's principal residence under the Revenue Act
SB856 Enrolled -10- LRB9000732KDcbA
1 of 1939 and for which a deduction was previously
2 taken under subparagraph (L) of this paragraph (2)
3 prior to July 1, 1991, the retrospective application
4 date of Article 4 of Public Act 87-17. In the case
5 of multi-unit or multi-use structures and farm
6 dwellings, the taxes on the taxpayer's principal
7 residence shall be that portion of the total taxes
8 for the entire property which is attributable to
9 such principal residence;
10 (D) An amount equal to the amount of the
11 capital gain deduction allowable under the Internal
12 Revenue Code, to the extent deducted from gross
13 income in the computation of adjusted gross income;
14 and
15 (D-5) An amount, to the extent not included in
16 adjusted gross income, equal to the amount of money
17 withdrawn by the taxpayer in the taxable year from a
18 medical care savings account and the interest earned
19 on the account in the taxable year of a withdrawal
20 pursuant to subsection (b) of Section 20 of the
21 Medical Care Savings Account Act;
22 and by deducting from the total so obtained the sum of
23 the following amounts:
24 (E) Any amount included in such total in
25 respect of any compensation (including but not
26 limited to any compensation paid or accrued to a
27 serviceman while a prisoner of war or missing in
28 action) paid to a resident by reason of being on
29 active duty in the Armed Forces of the United States
30 and in respect of any compensation paid or accrued
31 to a resident who as a governmental employee was a
32 prisoner of war or missing in action, and in respect
33 of any compensation paid to a resident in 1971 or
34 thereafter for annual training performed pursuant to
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1 Sections 502 and 503, Title 32, United States Code
2 as a member of the Illinois National Guard;
3 (F) An amount equal to all amounts included in
4 such total pursuant to the provisions of Sections
5 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
6 408 of the Internal Revenue Code, or included in
7 such total as distributions under the provisions of
8 any retirement or disability plan for employees of
9 any governmental agency or unit, or retirement
10 payments to retired partners, which payments are
11 excluded in computing net earnings from self
12 employment by Section 1402 of the Internal Revenue
13 Code and regulations adopted pursuant thereto;
14 (G) The valuation limitation amount;
15 (H) An amount equal to the amount of any tax
16 imposed by this Act which was refunded to the
17 taxpayer and included in such total for the taxable
18 year;
19 (I) An amount equal to all amounts included in
20 such total pursuant to the provisions of Section 111
21 of the Internal Revenue Code as a recovery of items
22 previously deducted from adjusted gross income in
23 the computation of taxable income;
24 (J) An amount equal to those dividends
25 included in such total which were paid by a
26 corporation which conducts business operations in an
27 Enterprise Zone or zones created under the Illinois
28 Enterprise Zone Act, and conducts substantially all
29 of its operations in an Enterprise Zone or zones;
30 (K) An amount equal to those dividends
31 included in such total that were paid by a
32 corporation that conducts business operations in a
33 federally designated Foreign Trade Zone or Sub-Zone
34 and that is designated a High Impact Business
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1 located in Illinois; provided that dividends
2 eligible for the deduction provided in subparagraph
3 (J) of paragraph (2) of this subsection shall not be
4 eligible for the deduction provided under this
5 subparagraph (K);
6 (L) For taxable years ending after December
7 31, 1983, an amount equal to all social security
8 benefits and railroad retirement benefits included
9 in such total pursuant to Sections 72(r) and 86 of
10 the Internal Revenue Code;
11 (M) With the exception of any amounts
12 subtracted under subparagraph (N), an amount equal
13 to the sum of all amounts disallowed as deductions
14 by Sections 171(a) (2), and 265(2) of the Internal
15 Revenue Code of 1954, as now or hereafter amended,
16 and all amounts of expenses allocable to interest
17 and disallowed as deductions by Section 265(1) of
18 the Internal Revenue Code of 1954, as now or
19 hereafter amended;
20 (N) An amount equal to all amounts included in
21 such total which are exempt from taxation by this
22 State either by reason of its statutes or
23 Constitution or by reason of the Constitution,
24 treaties or statutes of the United States; provided
25 that, in the case of any statute of this State that
26 exempts income derived from bonds or other
27 obligations from the tax imposed under this Act, the
28 amount exempted shall be the interest net of bond
29 premium amortization;
30 (O) An amount equal to any contribution made
31 to a job training project established pursuant to
32 the Tax Increment Allocation Redevelopment Act;
33 (P) An amount equal to the amount of the
34 deduction used to compute the federal income tax
SB856 Enrolled -13- LRB9000732KDcbA
1 credit for restoration of substantial amounts held
2 under claim of right for the taxable year pursuant
3 to Section 1341 of the Internal Revenue Code of
4 1986;
5 (Q) An amount equal to any amounts included in
6 such total, received by the taxpayer as an
7 acceleration in the payment of life, endowment or
8 annuity benefits in advance of the time they would
9 otherwise be payable as an indemnity for a terminal
10 illness;
11 (R) An amount equal to the amount of any
12 federal or State bonus paid to veterans of the
13 Persian Gulf War;
14 (S) An amount, to the extent included in
15 adjusted gross income, equal to the amount of a
16 contribution made in the taxable year on behalf of
17 the taxpayer to a medical care savings account
18 established under the Medical Care Savings Account
19 Act to the extent the contribution is accepted by
20 the account administrator as provided in that Act;
21 (T) An amount, to the extent included in
22 adjusted gross income, equal to the amount of
23 interest earned in the taxable year on a medical
24 care savings account established under the Medical
25 Care Savings Account Act on behalf of the taxpayer,
26 other than interest added pursuant to item (D-5) of
27 this paragraph (2);
28 (U) For one taxable year beginning on or after
29 January 1, 1994, an amount equal to the total amount
30 of tax imposed and paid under subsections (a) and
31 (b) of Section 201 of this Act on grant amounts
32 received by the taxpayer under the Nursing Home
33 Grant Assistance Act during the taxpayer's taxable
34 years 1992 and 1993; and
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1 (V) Beginning with tax years ending on or
2 after December 31, 1995 and ending with tax years
3 ending on or before December 31, 1999, an amount
4 equal to the amount paid by a taxpayer who is a
5 self-employed taxpayer, a partner of a partnership,
6 or a shareholder in a Subchapter S corporation for
7 health insurance or long-term care insurance for
8 that taxpayer or that taxpayer's spouse or
9 dependents, to the extent that the amount paid for
10 that health insurance or long-term care insurance
11 may be deducted under Section 213 of the Internal
12 Revenue Code of 1986, has not been deducted on the
13 federal income tax return of the taxpayer, and does
14 not exceed the taxable income attributable to that
15 taxpayer's income, self-employment income, or
16 Subchapter S corporation income; except that no
17 deduction shall be allowed under this item (V) if
18 the taxpayer is eligible to participate in any
19 health insurance or long-term care insurance plan of
20 an employer of the taxpayer or the taxpayer's
21 spouse. The amount of the health insurance and
22 long-term care insurance subtracted under this item
23 (V) shall be determined by multiplying total health
24 insurance and long-term care insurance premiums paid
25 by the taxpayer times a number that represents the
26 fractional percentage of eligible medical expenses
27 under Section 213 of the Internal Revenue Code of
28 1986 not actually deducted on the taxpayer's federal
29 income tax return.
30 (b) Corporations.
31 (1) In general. In the case of a corporation, base
32 income means an amount equal to the taxpayer's taxable
33 income for the taxable year as modified by paragraph (2).
34 (2) Modifications. The taxable income referred to
SB856 Enrolled -15- LRB9000732KDcbA
1 in paragraph (1) shall be modified by adding thereto the
2 sum of the following amounts:
3 (A) An amount equal to all amounts paid or
4 accrued to the taxpayer as interest and all
5 distributions received from regulated investment
6 companies during the taxable year to the extent
7 excluded from gross income in the computation of
8 taxable income;
9 (B) An amount equal to the amount of tax
10 imposed by this Act to the extent deducted from
11 gross income in the computation of taxable income
12 for the taxable year;
13 (C) In the case of a regulated investment
14 company or real estate investment trust, an amount
15 equal to the excess of (i) the net long-term capital
16 gain for the taxable year, over (ii) the amount of
17 the capital gain dividends designated as such in
18 accordance with Section 852(b)(3)(C) or Section
19 857(b)(3)(C) of the Internal Revenue Code and any
20 amount designated under Section 852(b)(3)(D) of the
21 Internal Revenue Code, attributable to the taxable
22 year.
23 This amendatory Act of 1995 is declarative of existing
24 law and is not a new enactment.
25 (D) The amount of any net operating loss
26 deduction taken in arriving at taxable income, other
27 than a net operating loss carried forward from a
28 taxable year ending prior to December 31, 1986; and
29 (E) For taxable years in which a net operating
30 loss carryback or carryforward from a taxable year
31 ending prior to December 31, 1986 is an element of
32 taxable income under paragraph (1) of subsection (e)
33 or subparagraph (E) of paragraph (2) of subsection
34 (e), the amount by which addition modifications
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1 other than those provided by this subparagraph (E)
2 exceeded subtraction modifications in such earlier
3 taxable year, with the following limitations applied
4 in the order that they are listed:
5 (i) the addition modification relating to
6 the net operating loss carried back or forward
7 to the taxable year from any taxable year
8 ending prior to December 31, 1986 shall be
9 reduced by the amount of addition modification
10 under this subparagraph (E) which related to
11 that net operating loss and which was taken
12 into account in calculating the base income of
13 an earlier taxable year, and
14 (ii) the addition modification relating
15 to the net operating loss carried back or
16 forward to the taxable year from any taxable
17 year ending prior to December 31, 1986 shall
18 not exceed the amount of such carryback or
19 carryforward;
20 For taxable years in which there is a net
21 operating loss carryback or carryforward from more
22 than one other taxable year ending prior to December
23 31, 1986, the addition modification provided in this
24 subparagraph (E) shall be the sum of the amounts
25 computed independently under the preceding
26 provisions of this subparagraph (E) for each such
27 taxable year,
28 and by deducting from the total so obtained the sum of
29 the following amounts:
30 (F) An amount equal to the amount of any tax
31 imposed by this Act which was refunded to the
32 taxpayer and included in such total for the taxable
33 year;
34 (G) An amount equal to any amount included in
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1 such total under Section 78 of the Internal Revenue
2 Code;
3 (H) In the case of a regulated investment
4 company, an amount equal to the amount of exempt
5 interest dividends as defined in subsection (b) (5)
6 of Section 852 of the Internal Revenue Code, paid to
7 shareholders for the taxable year;
8 (I) With the exception of any amounts
9 subtracted under subparagraph (J), an amount equal
10 to the sum of all amounts disallowed as deductions
11 by Sections 171(a) (2), and 265(a)(2) and amounts
12 disallowed as interest expense by Section 291(a)(3)
13 of the Internal Revenue Code, as now or hereafter
14 amended, and all amounts of expenses allocable to
15 interest and disallowed as deductions by Section
16 265(a)(1) of the Internal Revenue Code, as now or
17 hereafter amended;
18 (J) An amount equal to all amounts included in
19 such total which are exempt from taxation by this
20 State either by reason of its statutes or
21 Constitution or by reason of the Constitution,
22 treaties or statutes of the United States; provided
23 that, in the case of any statute of this State that
24 exempts income derived from bonds or other
25 obligations from the tax imposed under this Act, the
26 amount exempted shall be the interest net of bond
27 premium amortization;
28 (K) An amount equal to those dividends
29 included in such total which were paid by a
30 corporation which conducts business operations in an
31 Enterprise Zone or zones created under the Illinois
32 Enterprise Zone Act and conducts substantially all
33 of its operations in an Enterprise Zone or zones;
34 (L) An amount equal to those dividends
SB856 Enrolled -18- LRB9000732KDcbA
1 included in such total that were paid by a
2 corporation that conducts business operations in a
3 federally designated Foreign Trade Zone or Sub-Zone
4 and that is designated a High Impact Business
5 located in Illinois; provided that dividends
6 eligible for the deduction provided in subparagraph
7 (K) of paragraph 2 of this subsection shall not be
8 eligible for the deduction provided under this
9 subparagraph (L);
10 (M) For any taxpayer that is a financial
11 organization within the meaning of Section 304(c) of
12 this Act, an amount included in such total as
13 interest income from a loan or loans made by such
14 taxpayer to a borrower, to the extent that such a
15 loan is secured by property which is eligible for
16 the Enterprise Zone Investment Credit. To determine
17 the portion of a loan or loans that is secured by
18 property eligible for a Section 201(h) investment
19 credit to the borrower, the entire principal amount
20 of the loan or loans between the taxpayer and the
21 borrower should be divided into the basis of the
22 Section 201(h) investment credit property which
23 secures the loan or loans, using for this purpose
24 the original basis of such property on the date that
25 it was placed in service in the Enterprise Zone.
26 The subtraction modification available to taxpayer
27 in any year under this subsection shall be that
28 portion of the total interest paid by the borrower
29 with respect to such loan attributable to the
30 eligible property as calculated under the previous
31 sentence;
32 (M-1) For any taxpayer that is a financial
33 organization within the meaning of Section 304(c) of
34 this Act, an amount included in such total as
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1 interest income from a loan or loans made by such
2 taxpayer to a borrower, to the extent that such a
3 loan is secured by property which is eligible for
4 the High Impact Business Investment Credit. To
5 determine the portion of a loan or loans that is
6 secured by property eligible for a Section 201(i)
7 investment credit to the borrower, the entire
8 principal amount of the loan or loans between the
9 taxpayer and the borrower should be divided into the
10 basis of the Section 201(i) investment credit
11 property which secures the loan or loans, using for
12 this purpose the original basis of such property on
13 the date that it was placed in service in a
14 federally designated Foreign Trade Zone or Sub-Zone
15 located in Illinois. No taxpayer that is eligible
16 for the deduction provided in subparagraph (M) of
17 paragraph (2) of this subsection shall be eligible
18 for the deduction provided under this subparagraph
19 (M-1). The subtraction modification available to
20 taxpayers in any year under this subsection shall be
21 that portion of the total interest paid by the
22 borrower with respect to such loan attributable to
23 the eligible property as calculated under the
24 previous sentence;
25 (N) Two times any contribution made during the
26 taxable year to a designated zone organization to
27 the extent that the contribution (i) qualifies as a
28 charitable contribution under subsection (c) of
29 Section 170 of the Internal Revenue Code and (ii)
30 must, by its terms, be used for a project approved
31 by the Department of Commerce and Community Affairs
32 under Section 11 of the Illinois Enterprise Zone
33 Act;
34 (O) An amount equal to: (i) 85% for taxable
SB856 Enrolled -20- LRB9000732KDcbA
1 years ending on or before December 31, 1992, or, a
2 percentage equal to the percentage allowable under
3 Section 243(a)(1) of the Internal Revenue Code of
4 1986 for taxable years ending after December 31,
5 1992, of the amount by which dividends included in
6 taxable income and received from a corporation that
7 is not created or organized under the laws of the
8 United States or any state or political subdivision
9 thereof, including, for taxable years ending on or
10 after December 31, 1988, dividends received or
11 deemed received or paid or deemed paid under
12 Sections 951 through 964 of the Internal Revenue
13 Code, exceed the amount of the modification provided
14 under subparagraph (G) of paragraph (2) of this
15 subsection (b) which is related to such dividends;
16 plus (ii) 100% of the amount by which dividends,
17 included in taxable income and received, including,
18 for taxable years ending on or after December 31,
19 1988, dividends received or deemed received or paid
20 or deemed paid under Sections 951 through 964 of the
21 Internal Revenue Code, from any such corporation
22 specified in clause (i) that would but for the
23 provisions of Section 1504 (b) (3) of the Internal
24 Revenue Code be treated as a member of the
25 affiliated group which includes the dividend
26 recipient, exceed the amount of the modification
27 provided under subparagraph (G) of paragraph (2) of
28 this subsection (b) which is related to such
29 dividends;
30 (P) An amount equal to any contribution made
31 to a job training project established pursuant to
32 the Tax Increment Allocation Redevelopment Act; and
33 (Q) An amount equal to the amount of the
34 deduction used to compute the federal income tax
SB856 Enrolled -21- LRB9000732KDcbA
1 credit for restoration of substantial amounts held
2 under claim of right for the taxable year pursuant
3 to Section 1341 of the Internal Revenue Code of
4 1986.
5 (3) Special rule. For purposes of paragraph (2)
6 (A), "gross income" in the case of a life insurance
7 company, for tax years ending on and after December 31,
8 1994, shall mean the gross investment income for the
9 taxable year.
10 (c) Trusts and estates.
11 (1) In general. In the case of a trust or estate,
12 base income means an amount equal to the taxpayer's
13 taxable income for the taxable year as modified by
14 paragraph (2).
15 (2) Modifications. Subject to the provisions of
16 paragraph (3), the taxable income referred to in
17 paragraph (1) shall be modified by adding thereto the sum
18 of the following amounts:
19 (A) An amount equal to all amounts paid or
20 accrued to the taxpayer as interest or dividends
21 during the taxable year to the extent excluded from
22 gross income in the computation of taxable income;
23 (B) In the case of (i) an estate, $600; (ii) a
24 trust which, under its governing instrument, is
25 required to distribute all of its income currently,
26 $300; and (iii) any other trust, $100, but in each
27 such case, only to the extent such amount was
28 deducted in the computation of taxable income;
29 (C) An amount equal to the amount of tax
30 imposed by this Act to the extent deducted from
31 gross income in the computation of taxable income
32 for the taxable year;
33 (D) The amount of any net operating loss
34 deduction taken in arriving at taxable income, other
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1 than a net operating loss carried forward from a
2 taxable year ending prior to December 31, 1986;
3 (E) For taxable years in which a net operating
4 loss carryback or carryforward from a taxable year
5 ending prior to December 31, 1986 is an element of
6 taxable income under paragraph (1) of subsection (e)
7 or subparagraph (E) of paragraph (2) of subsection
8 (e), the amount by which addition modifications
9 other than those provided by this subparagraph (E)
10 exceeded subtraction modifications in such taxable
11 year, with the following limitations applied in the
12 order that they are listed:
13 (i) the addition modification relating to
14 the net operating loss carried back or forward
15 to the taxable year from any taxable year
16 ending prior to December 31, 1986 shall be
17 reduced by the amount of addition modification
18 under this subparagraph (E) which related to
19 that net operating loss and which was taken
20 into account in calculating the base income of
21 an earlier taxable year, and
22 (ii) the addition modification relating
23 to the net operating loss carried back or
24 forward to the taxable year from any taxable
25 year ending prior to December 31, 1986 shall
26 not exceed the amount of such carryback or
27 carryforward;
28 For taxable years in which there is a net
29 operating loss carryback or carryforward from more
30 than one other taxable year ending prior to December
31 31, 1986, the addition modification provided in this
32 subparagraph (E) shall be the sum of the amounts
33 computed independently under the preceding
34 provisions of this subparagraph (E) for each such
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1 taxable year;
2 (F) For taxable years ending on or after
3 January 1, 1989, an amount equal to the tax deducted
4 pursuant to Section 164 of the Internal Revenue Code
5 if the trust or estate is claiming the same tax for
6 purposes of the Illinois foreign tax credit under
7 Section 601 of this Act; and
8 (G) An amount equal to the amount of the
9 capital gain deduction allowable under the Internal
10 Revenue Code, to the extent deducted from gross
11 income in the computation of taxable income;
12 and by deducting from the total so obtained the sum of
13 the following amounts:
14 (H) An amount equal to all amounts included in
15 such total pursuant to the provisions of Sections
16 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and
17 408 of the Internal Revenue Code or included in such
18 total as distributions under the provisions of any
19 retirement or disability plan for employees of any
20 governmental agency or unit, or retirement payments
21 to retired partners, which payments are excluded in
22 computing net earnings from self employment by
23 Section 1402 of the Internal Revenue Code and
24 regulations adopted pursuant thereto;
25 (I) The valuation limitation amount;
26 (J) An amount equal to the amount of any tax
27 imposed by this Act which was refunded to the
28 taxpayer and included in such total for the taxable
29 year;
30 (K) An amount equal to all amounts included in
31 taxable income as modified by subparagraphs (A),
32 (B), (C), (D), (E), (F) and (G) which are exempt
33 from taxation by this State either by reason of its
34 statutes or Constitution or by reason of the
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1 Constitution, treaties or statutes of the United
2 States; provided that, in the case of any statute of
3 this State that exempts income derived from bonds or
4 other obligations from the tax imposed under this
5 Act, the amount exempted shall be the interest net
6 of bond premium amortization;
7 (L) With the exception of any amounts
8 subtracted under subparagraph (K), an amount equal
9 to the sum of all amounts disallowed as deductions
10 by Sections 171(a) (2) and 265(a)(2) of the Internal
11 Revenue Code, as now or hereafter amended, and all
12 amounts of expenses allocable to interest and
13 disallowed as deductions by Section 265(1) of the
14 Internal Revenue Code of 1954, as now or hereafter
15 amended;
16 (M) An amount equal to those dividends
17 included in such total which were paid by a
18 corporation which conducts business operations in an
19 Enterprise Zone or zones created under the Illinois
20 Enterprise Zone Act and conducts substantially all
21 of its operations in an Enterprise Zone or Zones;
22 (N) An amount equal to any contribution made
23 to a job training project established pursuant to
24 the Tax Increment Allocation Redevelopment Act;
25 (O) An amount equal to those dividends
26 included in such total that were paid by a
27 corporation that conducts business operations in a
28 federally designated Foreign Trade Zone or Sub-Zone
29 and that is designated a High Impact Business
30 located in Illinois; provided that dividends
31 eligible for the deduction provided in subparagraph
32 (M) of paragraph (2) of this subsection shall not be
33 eligible for the deduction provided under this
34 subparagraph (O); and
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1 (P) An amount equal to the amount of the
2 deduction used to compute the federal income tax
3 credit for restoration of substantial amounts held
4 under claim of right for the taxable year pursuant
5 to Section 1341 of the Internal Revenue Code of
6 1986.
7 (3) Limitation. The amount of any modification
8 otherwise required under this subsection shall, under
9 regulations prescribed by the Department, be adjusted by
10 any amounts included therein which were properly paid,
11 credited, or required to be distributed, or permanently
12 set aside for charitable purposes pursuant to Internal
13 Revenue Code Section 642(c) during the taxable year.
14 (d) Partnerships.
15 (1) In general. In the case of a partnership, base
16 income means an amount equal to the taxpayer's taxable
17 income for the taxable year as modified by paragraph (2).
18 (2) Modifications. The taxable income referred to
19 in paragraph (1) shall be modified by adding thereto the
20 sum of the following amounts:
21 (A) An amount equal to all amounts paid or
22 accrued to the taxpayer as interest or dividends
23 during the taxable year to the extent excluded from
24 gross income in the computation of taxable income;
25 (B) An amount equal to the amount of tax
26 imposed by this Act to the extent deducted from
27 gross income for the taxable year; and
28 (C) The amount of deductions allowed to the
29 partnership pursuant to Section 707 (c) of the
30 Internal Revenue Code in calculating its taxable
31 income;
32 (D) An amount equal to the amount of the
33 capital gain deduction allowable under the Internal
34 Revenue Code, to the extent deducted from gross
SB856 Enrolled -26- LRB9000732KDcbA
1 income in the computation of taxable income;
2 and by deducting from the total so obtained the following
3 amounts:
4 (E) The valuation limitation amount;
5 (F) An amount equal to the amount of any tax
6 imposed by this Act which was refunded to the
7 taxpayer and included in such total for the taxable
8 year;
9 (G) An amount equal to all amounts included in
10 taxable income as modified by subparagraphs (A),
11 (B), (C) and (D) which are exempt from taxation by
12 this State either by reason of its statutes or
13 Constitution or by reason of the Constitution,
14 treaties or statutes of the United States; provided
15 that, in the case of any statute of this State that
16 exempts income derived from bonds or other
17 obligations from the tax imposed under this Act, the
18 amount exempted shall be the interest net of bond
19 premium amortization;
20 (H) Any income of the partnership which
21 constitutes personal service income as defined in
22 Section 1348 (b) (1) of the Internal Revenue Code
23 (as in effect December 31, 1981) or a reasonable
24 allowance for compensation paid or accrued for
25 services rendered by partners to the partnership,
26 whichever is greater;
27 (I) An amount equal to all amounts of income
28 distributable to an entity subject to the Personal
29 Property Tax Replacement Income Tax imposed by
30 subsections (c) and (d) of Section 201 of this Act
31 including amounts distributable to organizations
32 exempt from federal income tax by reason of Section
33 501(a) of the Internal Revenue Code;
34 (J) With the exception of any amounts
SB856 Enrolled -27- LRB9000732KDcbA
1 subtracted under subparagraph (G), an amount equal
2 to the sum of all amounts disallowed as deductions
3 by Sections 171(a) (2), and 265(2) of the Internal
4 Revenue Code of 1954, as now or hereafter amended,
5 and all amounts of expenses allocable to interest
6 and disallowed as deductions by Section 265(1) of
7 the Internal Revenue Code, as now or hereafter
8 amended;
9 (K) An amount equal to those dividends
10 included in such total which were paid by a
11 corporation which conducts business operations in an
12 Enterprise Zone or zones created under the Illinois
13 Enterprise Zone Act, enacted by the 82nd General
14 Assembly, and which does not conduct such operations
15 other than in an Enterprise Zone or Zones;
16 (L) An amount equal to any contribution made
17 to a job training project established pursuant to
18 the Real Property Tax Increment Allocation
19 Redevelopment Act;
20 (M) An amount equal to those dividends
21 included in such total that were paid by a
22 corporation that conducts business operations in a
23 federally designated Foreign Trade Zone or Sub-Zone
24 and that is designated a High Impact Business
25 located in Illinois; provided that dividends
26 eligible for the deduction provided in subparagraph
27 (K) of paragraph (2) of this subsection shall not be
28 eligible for the deduction provided under this
29 subparagraph (M); and
30 (N) An amount equal to the amount of the
31 deduction used to compute the federal income tax
32 credit for restoration of substantial amounts held
33 under claim of right for the taxable year pursuant
34 to Section 1341 of the Internal Revenue Code of
SB856 Enrolled -28- LRB9000732KDcbA
1 1986.
2 (e) Gross income; adjusted gross income; taxable income.
3 (1) In general. Subject to the provisions of
4 paragraph (2) and subsection (b) (3), for purposes of
5 this Section and Section 803(e), a taxpayer's gross
6 income, adjusted gross income, or taxable income for the
7 taxable year shall mean the amount of gross income,
8 adjusted gross income or taxable income properly
9 reportable for federal income tax purposes for the
10 taxable year under the provisions of the Internal Revenue
11 Code. Taxable income may be less than zero. However, for
12 taxable years ending on or after December 31, 1986, net
13 operating loss carryforwards from taxable years ending
14 prior to December 31, 1986, may not exceed the sum of
15 federal taxable income for the taxable year before net
16 operating loss deduction, plus the excess of addition
17 modifications over subtraction modifications for the
18 taxable year. For taxable years ending prior to December
19 31, 1986, taxable income may never be an amount in excess
20 of the net operating loss for the taxable year as defined
21 in subsections (c) and (d) of Section 172 of the Internal
22 Revenue Code, provided that when taxable income of a
23 corporation (other than a Subchapter S corporation),
24 trust, or estate is less than zero and addition
25 modifications, other than those provided by subparagraph
26 (E) of paragraph (2) of subsection (b) for corporations
27 or subparagraph (E) of paragraph (2) of subsection (c)
28 for trusts and estates, exceed subtraction modifications,
29 an addition modification must be made under those
30 subparagraphs for any other taxable year to which the
31 taxable income less than zero (net operating loss) is
32 applied under Section 172 of the Internal Revenue Code or
33 under subparagraph (E) of paragraph (2) of this
34 subsection (e) applied in conjunction with Section 172 of
SB856 Enrolled -29- LRB9000732KDcbA
1 the Internal Revenue Code.
2 (2) Special rule. For purposes of paragraph (1) of
3 this subsection, the taxable income properly reportable
4 for federal income tax purposes shall mean:
5 (A) Certain life insurance companies. In the
6 case of a life insurance company subject to the tax
7 imposed by Section 801 of the Internal Revenue Code,
8 life insurance company taxable income, plus the
9 amount of distribution from pre-1984 policyholder
10 surplus accounts as calculated under Section 815a of
11 the Internal Revenue Code;
12 (B) Certain other insurance companies. In the
13 case of mutual insurance companies subject to the
14 tax imposed by Section 831 of the Internal Revenue
15 Code, insurance company taxable income;
16 (C) Regulated investment companies. In the
17 case of a regulated investment company subject to
18 the tax imposed by Section 852 of the Internal
19 Revenue Code, investment company taxable income;
20 (D) Real estate investment trusts. In the
21 case of a real estate investment trust subject to
22 the tax imposed by Section 857 of the Internal
23 Revenue Code, real estate investment trust taxable
24 income;
25 (E) Consolidated corporations. In the case of
26 a corporation which is a member of an affiliated
27 group of corporations filing a consolidated income
28 tax return for the taxable year for federal income
29 tax purposes, taxable income determined as if such
30 corporation had filed a separate return for federal
31 income tax purposes for the taxable year and each
32 preceding taxable year for which it was a member of
33 an affiliated group. For purposes of this
34 subparagraph, the taxpayer's separate taxable income
SB856 Enrolled -30- LRB9000732KDcbA
1 shall be determined as if the election provided by
2 Section 243(b) (2) of the Internal Revenue Code had
3 been in effect for all such years;
4 (F) Cooperatives. In the case of a
5 cooperative corporation or association, the taxable
6 income of such organization determined in accordance
7 with the provisions of Section 1381 through 1388 of
8 the Internal Revenue Code;
9 (G) Subchapter S corporations. In the case
10 of: (i) a Subchapter S corporation for which there
11 is in effect an election for the taxable year under
12 Section 1362 of the Internal Revenue Code, the
13 taxable income of such corporation determined in
14 accordance with Section 1363(b) of the Internal
15 Revenue Code, except that taxable income shall take
16 into account those items which are required by
17 Section 1363(b)(1) of the Internal Revenue Code to
18 be separately stated; and (ii) a Subchapter S
19 corporation for which there is in effect a federal
20 election to opt out of the provisions of the
21 Subchapter S Revision Act of 1982 and have applied
22 instead the prior federal Subchapter S rules as in
23 effect on July 1, 1982, the taxable income of such
24 corporation determined in accordance with the
25 federal Subchapter S rules as in effect on July 1,
26 1982; and
27 (H) Partnerships. In the case of a
28 partnership, taxable income determined in accordance
29 with Section 703 of the Internal Revenue Code,
30 except that taxable income shall take into account
31 those items which are required by Section 703(a)(1)
32 to be separately stated but which would be taken
33 into account by an individual in calculating his
34 taxable income.
SB856 Enrolled -31- LRB9000732KDcbA
1 (f) Valuation limitation amount.
2 (1) In general. The valuation limitation amount
3 referred to in subsections (a) (2) (G), (c) (2) (I) and
4 (d)(2) (E) is an amount equal to:
5 (A) The sum of the pre-August 1, 1969
6 appreciation amounts (to the extent consisting of
7 gain reportable under the provisions of Section 1245
8 or 1250 of the Internal Revenue Code) for all
9 property in respect of which such gain was reported
10 for the taxable year; plus
11 (B) The lesser of (i) the sum of the
12 pre-August 1, 1969 appreciation amounts (to the
13 extent consisting of capital gain) for all property
14 in respect of which such gain was reported for
15 federal income tax purposes for the taxable year, or
16 (ii) the net capital gain for the taxable year,
17 reduced in either case by any amount of such gain
18 included in the amount determined under subsection
19 (a) (2) (F) or (c) (2) (H).
20 (2) Pre-August 1, 1969 appreciation amount.
21 (A) If the fair market value of property
22 referred to in paragraph (1) was readily
23 ascertainable on August 1, 1969, the pre-August 1,
24 1969 appreciation amount for such property is the
25 lesser of (i) the excess of such fair market value
26 over the taxpayer's basis (for determining gain) for
27 such property on that date (determined under the
28 Internal Revenue Code as in effect on that date), or
29 (ii) the total gain realized and reportable for
30 federal income tax purposes in respect of the sale,
31 exchange or other disposition of such property.
32 (B) If the fair market value of property
33 referred to in paragraph (1) was not readily
34 ascertainable on August 1, 1969, the pre-August 1,
SB856 Enrolled -32- LRB9000732KDcbA
1 1969 appreciation amount for such property is that
2 amount which bears the same ratio to the total gain
3 reported in respect of the property for federal
4 income tax purposes for the taxable year, as the
5 number of full calendar months in that part of the
6 taxpayer's holding period for the property ending
7 July 31, 1969 bears to the number of full calendar
8 months in the taxpayer's entire holding period for
9 the property.
10 (C) The Department shall prescribe such
11 regulations as may be necessary to carry out the
12 purposes of this paragraph.
13 (g) Double deductions. Unless specifically provided
14 otherwise, nothing in this Section shall permit the same item
15 to be deducted more than once.
16 (h) Legislative intention. Except as expressly provided
17 by this Section there shall be no modifications or
18 limitations on the amounts of income, gain, loss or deduction
19 taken into account in determining gross income, adjusted
20 gross income or taxable income for federal income tax
21 purposes for the taxable year, or in the amount of such items
22 entering into the computation of base income and net income
23 under this Act for such taxable year, whether in respect of
24 property values as of August 1, 1969 or otherwise.
25 (Source: P.A. 88-195; 88-648, eff. 9-16-94; 88-669, eff.
26 11-29-94; 88-670, eff. 12-2-94; 89-89, eff. 6-30-95; 89-235,
27 eff. 8-4-95; 89-418, eff. 11-15-95; 89-460, eff. 5-24-96;
28 89-626, eff. 8-9-96.)
29 (35 ILCS 5/301) (from Ch. 120, par. 3-301)
30 Sec. 301. General Rule.
31 (a) Residents. All items of income or deduction which
32 were taken into account in the computation of base income for
33 the taxable year by a resident shall be allocated to this
SB856 Enrolled -33- LRB9000732KDcbA
1 State.
2 (b) Part-year residents. All items of income or
3 deduction which were taken into account in the computation of
4 base income for the taxable year by a part-year resident
5 shall, for that part of the year the part-year resident was a
6 resident of this State, be allocated to this State and, for
7 the remaining part of the year, be allocated to this State
8 only to the extent provided by Section 302, 303 or 304
9 (relating to compensation, nonbusiness income and business
10 income, respectively).
11 (c) Other persons.
12 (1) In general. Any item of income or deduction
13 which was taken into account in the computation of base
14 income for the taxable year by any person other than a
15 resident and which is referred to in Section 302, 303 or
16 304 (relating to compensation, nonbusiness income and
17 business income, respectively) shall be allocated to this
18 State only to the extent provided by such section.
19 (2) Unspecified items. Any item of income or
20 deduction which was taken into account in the computation
21 of base income for the taxable year by any person other
22 than a resident and which is not otherwise specifically
23 allocated or apportioned pursuant to Section 302, 303 or
24 304 (including, without limitation, interest, dividends,
25 items of income taken into account under the provisions
26 of Sections 401 through 425 of the Internal Revenue Code,
27 and benefit payments received by a beneficiary of a
28 supplemental unemployment benefit trust which is referred
29 to in Section 501(c)(17) of the Internal Revenue Code):
30 (A) in the case of an individual, trust or
31 estate, shall not be allocated to this State; and
32 (B) in the case of a corporation, trust, or a
33 partnership, shall be allocated to this State if the
34 taxpayer had its commercial domicile in this State
SB856 Enrolled -34- LRB9000732KDcbA
1 at the time such item was paid, incurred or accrued.
2 (Source: P.A. 82-609.)
3 (35 ILCS 5/302) (from Ch. 120, par. 3-302)
4 Sec. 302. Compensation paid to nonresidents.
5 (a) In general. All items of compensation paid in this
6 State (as determined under Section 304(a)(2)(B)) to an
7 individual who is a nonresident at the time of such payment
8 and all items of deduction directly allocable thereto, shall
9 be allocated to this State.
10 (b) Reciprocal exemption. The Director may enter into an
11 agreement with the taxing authorities of any state which
12 imposes a tax on or measured by income to provide that
13 compensation paid in such state to residents of this State
14 shall be exempt from such tax; in such case, any compensation
15 paid in this State to residents of such state shall not be
16 allocated to this State. All reciprocal agreements shall be
17 subject to the requirements of Section 39b53 of the Civil
18 Administrative Code of Illinois.
19 (c) Cross references.
20 (1) For allocation of amounts received by
21 nonresidents from certain employee trusts, see Section
22 301(b)(2).
23 (2) For allocation of compensation by residents,
24 see Section 301(a).
25 (Source: P.A. 77-1379.)
26 (35 ILCS 5/506) (from Ch. 120, par. 5-506)
27 Sec. 506. Federal Returns. (a) In general. Any person
28 required to make a return for a taxable year under this Act
29 may, at any time that a deficiency could be assessed or a
30 refund claimed under this Act in respect of any item reported
31 or properly reportable on such return or any amendment
32 thereof, be required to furnish to the Department a true and
SB856 Enrolled -35- LRB9000732KDcbA
1 correct copy of any return which may pertain to such item and
2 which was filed by such person under the provisions of the
3 Internal Revenue Code.
4 (b) Changes affecting federal income tax. In the event
5 the taxable income, any item of income or deduction, or the
6 income tax liability, or any tax credit reported in a federal
7 income tax return of any person for any year is altered by
8 amendment of such return or as a result of any other
9 recomputation or redetermination of federal taxable income or
10 loss, and such alteration reflects a change or settlement
11 with respect to any item or items, affecting the computation
12 of such person's net income, net loss, or of any credit
13 provided by Article 2 of this Act base income for any year
14 under this Act, or in the number of personal exemptions
15 allowable to such person under Section 151 of the Internal
16 Revenue Code, such person shall notify the Department of such
17 alteration. Such notification shall be in the form of an
18 amended return or such other form as the Department may by
19 regulations prescribe, shall contain the person's name and
20 address and such other information as the Department may by
21 regulations prescribe, shall be signed by such person or his
22 duly authorized representative, and shall be filed not later
23 than 120 days after such alteration has been agreed to or
24 finally determined for federal income tax purposes or any
25 federal income tax deficiency or refund, tentative carryback
26 adjustment, abatement or credit resulting therefrom has been
27 assessed or paid, whichever shall first occur.
28 (Source: P.A. 86-905.)
29 (35 ILCS 5/701) (from Ch. 120, par. 7-701)
30 Sec. 701. Requirement and Amount of Withholding.
31 (a) In General.
32 Every employer maintaining an office or transacting
33 business within this State and required under the provisions
SB856 Enrolled -36- LRB9000732KDcbA
1 of the Internal Revenue Code to withhold a tax on:
2 (1) compensation paid in this State (as determined
3 under Section 304 (a) (2) (B) to an individual; or
4 (2) payments described in subsection (b) shall
5 deduct and withhold from such compensation for each
6 payroll period (as defined in Section 3401 of the
7 Internal Revenue Code) an amount equal to the amount by
8 which such individual's compensation exceeds the
9 proportionate part of this withholding exemption
10 (computed as provided in Section 702) attributable to the
11 payroll period for which such compensation is payable
12 multiplied by a percentage equal to the percentage tax
13 rate for individuals provided in subsection (b) of
14 Section 201.
15 (b) Payment to Residents.
16 Any payment (including compensation) to a resident by a
17 payor maintaining an office or transacting business within
18 this State and on which withholding of tax is required under
19 the provisions of the Internal Revenue Code shall be deemed
20 to be compensation paid in this State by an employer to an
21 employee for the purposes of Article 7 and Section 601 (b)
22 (1) to the extent such payment is included in the recipient's
23 base income and not subjected to withholding by another
24 state.
25 (c) Special Definitions.
26 Withholding shall be considered required under the
27 provisions of the Internal Revenue Code to the extent the
28 Internal Revenue Code either requires withholding or allows
29 for voluntary withholding the payor and recipient have
30 entered into such a voluntary withholding agreement. For the
31 purposes of Article 7 and Section 1002 (c) the term
32 "employer" includes any payor who is required to withhold tax
33 pursuant to this Section.
34 (d) Reciprocal Exemption.
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1 The Director may enter into an agreement with the taxing
2 authorities of any state which imposes a tax on or measured
3 by income to provide that compensation paid in such state to
4 residents of this State shall be exempt from withholding of
5 such tax; in such case, any compensation paid in this State
6 to residents of such state shall be exempt from withholding.
7 All reciprocal agreements shall be subject to the
8 requirements of Section 39b53 of the Civil Administrative
9 Code of Illinois.
10 (e) Notwithstanding subsection (a) (2) of this Section,
11 no withholding is required on payments for which withholding
12 is required under Section 3405 or 3406 of the Internal
13 Revenue Code of 1954.
14 (Source: P.A. 85-731; 86-1475.)
15 (35 ILCS 5/806 new)
16 Sec. 806. Exemption from penalty. An individual
17 taxpayer shall not be subject to a penalty for failing to pay
18 estimated tax as required by Section 803 if the taxpayer is
19 65 years of age or older and is a permanent resident of a
20 nursing home. For purposes of this Section, "nursing home"
21 means a skilled nursing or intermediate long term care
22 facility that is subject to licensure by the Illinois
23 Department of Public Health under the Nursing Home Care Act.
24 (35 ILCS 5/905) (from Ch. 120, par. 9-905)
25 Sec. 905. Limitations on Notices of Deficiency.
26 (a) In general. Except as otherwise provided in this
27 Act:
28 (1) A notice of deficiency shall be issued not
29 later than 3 years after the date the return was filed,
30 and
31 (2) No deficiency shall be assessed or collected
32 with respect to the year for which the return was filed
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1 unless such notice is issued within such period.
2 (b) Omission of more than 25% of income. If the taxpayer
3 omits from base income an amount properly includible therein
4 which is in excess of 25% of the amount of base income stated
5 in the return, a notice of deficiency may be issued not later
6 than 6 years after the return was filed. For purposes of this
7 paragraph, there shall not be taken into account any amount
8 which is omitted in the return if such amount is disclosed in
9 the return, or in a statement attached to the return, in a
10 manner adequate to apprise the Department of the nature and
11 the amount of such item.
12 (c) No return or fraudulent return. If no return is
13 filed or a false and fraudulent return is filed with intent
14 to evade the tax imposed by this Act, a notice of deficiency
15 may be issued at any time.
16 (d) Failure to report federal change. If a taxpayer
17 fails to notify the Department in any case where notification
18 is required by Section 304(c) or 506(b), or fails to report a
19 change or correction which is treated in the same manner as
20 if it were a deficiency for federal income tax purposes, a
21 notice of deficiency may be issued at any time.
22 (e) Report of federal change. In any case where
23 notification of an alteration is given as required by Section
24 506(b), a notice of deficiency may be issued at any time
25 within 2 years after the date such notification is given,
26 provided, however, that the amount of any proposed assessment
27 set forth in such notice shall be limited to the amount of
28 any deficiency resulting under this Act from recomputation of
29 the taxpayer's net income, net loss, or Article 2 credits
30 base income for the taxable year after giving effect to the
31 item or items reflected in the reported alteration.
32 (f) Extension by agreement. Where, before the expiration
33 of the time prescribed in this section for the issuance of a
34 notice of deficiency, both the Department and the taxpayer
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1 shall have consented in writing to its issuance after such
2 time, such notice may be issued at any time prior to the
3 expiration of the period agreed upon. The period so agreed
4 upon may be extended by subsequent agreements in writing made
5 before the expiration of the period previously agreed upon.
6 (g) Erroneous refunds. In any case in which there has
7 been an erroneous refund of tax payable under this Act, a
8 notice of deficiency may be issued at any time within 2 years
9 from the making of such refund, or within 5 years from the
10 making of such refund if it appears that any part of the
11 refund was induced by fraud or the misrepresentation of a
12 material fact, provided, however, that the amount of any
13 proposed assessment set forth in such notice shall be limited
14 to the amount of such erroneous refund.
15 Beginning July 1, 1993, in any case in which there has
16 been a refund of tax payable under this Act attributable to a
17 net loss carryback as provided for in Section 207, and that
18 refund is subsequently determined to be an erroneous refund
19 due to a reduction in the amount of the net loss which was
20 originally carried back, a notice of deficiency for the
21 erroneous refund amount may be issued at any time during the
22 same time period in which a notice of deficiency can be
23 issued on the loss year creating the carryback amount and
24 subsequent erroneous refund. The amount of any proposed
25 assessment set forth in the notice shall be limited to the
26 amount of such erroneous refund.
27 (h) Time return deemed filed. For purposes of this
28 Section a tax return filed before the last day prescribed by
29 law (including any extension thereof) shall be deemed to have
30 been filed on such last day.
31 (i) Request for prompt determination of liability. For
32 purposes of Subsection (a)(1), in the case of a tax return
33 required under this Act in respect of a decedent, or by his
34 estate during the period of administration, or by a
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1 corporation, the period referred to in such Subsection shall
2 be 18 months after a written request for prompt determination
3 of liability is filed with the Department (at such time and
4 in such form and manner as the Department shall by
5 regulations prescribe) by the executor, administrator, or
6 other fiduciary representing the estate of such decedent, or
7 by such corporation, but not more than 3 years after the date
8 the return was filed. This Subsection shall not apply in the
9 case of a corporation unless:
10 (1) (A) Such written request notifies the
11 Department that the corporation contemplates dissolution
12 at or before the expiration of such 18-month period, (B)
13 the dissolution is begun in good faith before the
14 expiration of such 18-month period, and (C) the
15 dissolution is completed;
16 (2) (A) Such written request notifies the
17 Department that a dissolution has in good faith been
18 begun, and (B) the dissolution is completed; or
19 (3) A dissolution has been completed at the time
20 such written request is made.
21 (j) Withholding tax. In the case of returns required
22 under Article 7 of this Act (with respect to any amounts
23 withheld as tax or any amounts required to have been withheld
24 as tax) a notice of deficiency shall be issued not later than
25 3 years after the 15th day of the 4th month following the
26 close of the calendar year in which such withholding was
27 required.
28 (k) Penalties for failure to make information reports.
29 A notice of deficiency for the penalties provided by
30 Subsection 1405.1(c) of this Act may not be issued more than
31 3 years after the due date of the reports with respect to
32 which the penalties are asserted.
33 (l) Penalty for failure to file withholding returns. A
34 notice of deficiency for penalties provided by Section 1004
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1 of this Act for taxpayer's failure to file withholding
2 returns may not be issued more than three years after the
3 15th day of the 4th month following the close of the calendar
4 year in which the withholding giving rise to taxpayer's
5 obligation to file those returns occurred.
6 (m) Transferee liability. A notice of deficiency may be
7 issued to a transferee relative to a liability asserted under
8 Section 1405 during time periods defined as follows:
9 1) Initial Transferee. In the case of the
10 liability of an initial transferee, up to 2 years after
11 the expiration of the period of limitation for assessment
12 against the transferor, except that if a court proceeding
13 for review of the assessment against the transferor has
14 begun, then up to 2 years after the return of the
15 certified copy of the judgment in the court proceeding.
16 2) Transferee of Transferee. In the case of the
17 liability of a transferee, up to 2 years after the
18 expiration of the period of limitation for assessment
19 against the preceding transferee, but not more than 3
20 years after the expiration of the period of limitation
21 for assessment against the initial transferor; except
22 that if, before the expiration of the period of
23 limitation for the assessment of the liability of the
24 transferee, a court proceeding for the collection of the
25 tax or liability in respect thereof has been begun
26 against the initial transferor or the last preceding
27 transferee, as the case may be, then the period of
28 limitation for assessment of the liability of the
29 transferee shall expire 2 years after the return of the
30 certified copy of the judgment in the court proceeding.
31 (Source: P.A. 88-195.)
32 (35 ILCS 5/911) (from Ch. 120, par. 9-911)
33 Sec. 911. Limitations on Claims for Refund. (a) In
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1 general. Except as otherwise provided in this Act:
2 (1) A claim for refund shall be filed not later than 3
3 years after the date the return was filed (in the case of
4 returns required under Article 7 of this Act respecting any
5 amounts withheld as tax, not later than 3 years after the
6 15th day of the 4th month following the close of the calendar
7 year in which such withholding was made), or one year after
8 the date the tax was paid, whichever is the later; and
9 (2) No credit or refund shall be allowed or made with
10 respect to the year for which the claim was filed unless such
11 claim is filed within such period.
12 (b) Federal changes. (1) In general. In any case where
13 notification of an alteration is required by Section 506 (b),
14 a claim for refund may be filed within 2 years after the date
15 on which such notification was due (regardless of whether
16 such notice was given), but the amount recoverable pursuant
17 to a claim filed under this Section shall be limited to the
18 amount of any overpayment resulting under this Act from
19 recomputation of the taxpayer's net income, net loss, or
20 Article 2 credits base income for the taxable year after
21 giving effect to the item or items reflected in the
22 alteration required to be reported.
23 (2) Tentative carryback adjustments paid before January
24 1, 1974. If, as the result of the payment before January 1,
25 1974 of a federal tentative carryback adjustment, a
26 notification of an alteration is required under Section 506
27 (b), a claim for refund may be filed at any time before
28 January 1, 1976, but the amount recoverable pursuant to a
29 claim filed under this Section shall be limited to the amount
30 of any overpayment resulting under this Act from
31 recomputation of the taxpayer's base income for the taxable
32 year after giving effect to the federal alteration resulting
33 from the tentative carryback adjustment irrespective of any
34 limitation imposed in paragraph (l) of this subsection.
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1 (c) Extension by agreement. Where, before the
2 expiration of the time prescribed in this section for the
3 filing of a claim for refund, both the Department and the
4 claimant shall have consented in writing to its filing after
5 such time, such claim may be filed at any time prior to the
6 expiration of the period agreed upon. The period so agreed
7 upon may be extended by subsequent agreements in writing made
8 before the expiration of the period previously agreed upon.
9 (d) Limit on amount of credit or refund.
10 (1) Limit where claim filed within 3-year period. If
11 the claim was filed by the claimant during the 3-year period
12 prescribed in subsection (a), the amount of the credit or
13 refund shall not exceed the portion of the tax paid within
14 the period, immediately preceding the filing of the claim,
15 equal to 3 years plus the period of any extension of time for
16 filing the return.
17 (2) Limit where claim not filed within 3-year period.
18 If the claim was not filed within such 3-year period, the
19 amount of the credit or refund shall not exceed the portion
20 of the tax paid during the one year immediately preceding the
21 filing of the claim.
22 (e) Time return deemed filed. For purposes of this
23 section a tax return filed before the last day prescribed by
24 law for the filing of such return (including any extensions
25 thereof) shall be deemed to have been filed on such last day.
26 (f) No claim for refund based on the taxpayer's taking a
27 credit for estimated tax payments as provided by Section 601
28 (b) (2) or for any amount paid by a taxpayer pursuant to
29 Section 602(a) or for any amount of credit for tax withheld
30 pursuant to Section 701 may be filed more than 3 years after
31 the due date, as provided by Section 505, of the return which
32 was required to be filed relative to the taxable year for
33 which the payments were made or for which the tax was
34 withheld. The changes in this subsection (f) made by this
SB856 Enrolled -44- LRB9000732KDcbA
1 amendatory Act of 1987 shall apply to all taxable years
2 ending on or after December 31, 1969.
3 (g) Special Period of Limitation with Respect to Net
4 Loss Carrybacks. If the claim for refund relates to an
5 overpayment attributable to a net loss carryback as provided
6 by Section 207, in lieu of the 3 year period of limitation
7 prescribed in subsection (a), the period shall be that period
8 which ends 3 years after the time prescribed by law for
9 filing the return (including extensions thereof) for the
10 taxable year of the net loss which results in such carryback,
11 or the period prescribed in subsection (c) in respect of such
12 taxable year, whichever expires later. In the case of such a
13 claim, the amount of the refund may exceed the portion of the
14 tax paid within the period provided in subsection (d) to the
15 extent of the amount of the overpayment attributable to such
16 carryback.
17 (Source: P.A. 86-905.)
18 (35 ILCS 5/917) (from Ch. 120, par. 9-917)
19 (Text of Section before amendment by P.A. 89-507)
20 Sec. 917. Confidentiality and information sharing.
21 (a) Confidentiality. Except as provided in this Section,
22 all information received by the Department from returns filed
23 under this Act, or from any investigation conducted under the
24 provisions of this Act, shall be confidential, except for
25 official purposes within the Department or pursuant to
26 official procedures for collection of any State tax or
27 pursuant to an investigation or audit by the Illinois State
28 Scholarship Commission of a delinquent student loan or
29 monetary award or enforcement of any civil or criminal
30 penalty or sanction imposed by this Act or by another statute
31 imposing a State tax, and any person who divulges any such
32 information in any manner, except for such purposes and
33 pursuant to order of the Director or in accordance with a
SB856 Enrolled -45- LRB9000732KDcbA
1 proper judicial order, shall be guilty of a Class A
2 misdemeanor. However, the provisions of this paragraph are
3 not applicable to information furnished to a licensed
4 attorney representing the taxpayer where an appeal or a
5 protest has been filed on behalf of the taxpayer.
6 (b) Public information. Nothing contained in this Act
7 shall prevent the Director from publishing or making
8 available to the public the names and addresses of persons
9 filing returns under this Act, or from publishing or making
10 available reasonable statistics concerning the operation of
11 the tax wherein the contents of returns are grouped into
12 aggregates in such a way that the information contained in
13 any individual return shall not be disclosed.
14 (c) Governmental agencies. The Director may make
15 available to the Secretary of the Treasury of the United
16 States or his delegate, or the proper officer or his delegate
17 of any other state imposing a tax upon or measured by income,
18 for exclusively official purposes, information received by
19 the Department in the administration of this Act, but such
20 permission shall be granted only if the United States or such
21 other state, as the case may be, grants the Department
22 substantially similar privileges. The Director may exchange
23 information with the Illinois Department of Public Aid for
24 the purpose of verifying sources and amounts of income and
25 for other purposes directly connected with the administration
26 of this Act and The Illinois Public Aid Code. The Director
27 may exchange information with the Director of the Department
28 of Employment Security for the purpose of verifying sources
29 and amounts of income and for other purposes directly
30 connected with the administration of this Act and Acts
31 administered by the Department of Employment Security. The
32 Director may make available to the Illinois Industrial
33 Commission information regarding employers for the purpose of
34 verifying the insurance coverage required under the Workers'
SB856 Enrolled -46- LRB9000732KDcbA
1 Compensation Act and Workers' Occupational Diseases Act.
2 The Director may make available to any State agency,
3 including the Illinois Supreme Court, which licenses persons
4 to engage in any occupation, information that a person
5 licensed by such agency has failed to file returns under this
6 Act or pay the tax, penalty and interest shown therein, or
7 has failed to pay any final assessment of tax, penalty or
8 interest due under this Act. The Director may also make
9 available to the Secretary of State information that a
10 corporation which has been issued a certificate of
11 incorporation by the Secretary of State has failed to file
12 returns under this Act or pay the tax, penalty and interest
13 shown therein, or has failed to pay any final assessment of
14 tax, penalty or interest due under this Act. An assessment is
15 final when all proceedings in court for review of such
16 assessment have terminated or the time for the taking thereof
17 has expired without such proceedings being instituted. For
18 taxable years ending on or after December 31, 1987, the
19 Director may make available to the Director or principal
20 officer of any Department of the State of Illinois,
21 information that a person employed by such Department has
22 failed to file returns under this Act or pay the tax, penalty
23 and interest shown therein. For purposes of this paragraph,
24 the word "Department" shall have the same meaning as provided
25 in Section 3 of the State Employees Group Insurance Act of
26 1971.
27 (d) The Director shall make available for public
28 inspection in the Department's principal office and for
29 publication, at cost, administrative decisions issued on or
30 after January 1, 1995. These decisions are to be made
31 available in a manner so that the following taxpayer
32 information is not disclosed:
33 (1) The names, addresses, and identification
34 numbers of the taxpayer, related entities, and employees.
SB856 Enrolled -47- LRB9000732KDcbA
1 (2) At the sole discretion of the Director, trade
2 secrets or other confidential information identified as
3 such by the taxpayer, no later than 30 days after receipt
4 of an administrative decision, by such means as the
5 Department shall provide by rule.
6 The Director shall determine the appropriate extent of
7 the deletions allowed in paragraph (2). In the event the
8 taxpayer does not submit deletions, the Director shall make
9 only the deletions specified in paragraph (1).
10 The Director shall make available for public inspection
11 and publication an administrative decision within 180 days
12 after the issuance of the administrative decision. The term
13 "administrative decision" has the same meaning as defined in
14 Section 3-101 of Article III of the Code of Civil Procedure.
15 Costs collected under this Section shall be paid into the Tax
16 Compliance and Administration Fund.
17 (e) Nothing contained in this Act shall prevent the
18 Director from divulging information to any person pursuant to
19 a request or authorization made by the taxpayer, by an
20 authorized representative of the taxpayer, or, in the case of
21 information related to a joint return, by the spouse filing
22 the joint return with the taxpayer.
23 (Source: P.A. 88-669, eff. 11-29-94.)
24 (Text of Section after amendment by P.A. 89-507)
25 Sec. 917. Confidentiality and information sharing.
26 (a) Confidentiality. Except as provided in this Section,
27 all information received by the Department from returns filed
28 under this Act, or from any investigation conducted under the
29 provisions of this Act, shall be confidential, except for
30 official purposes within the Department or pursuant to
31 official procedures for collection of any State tax or
32 pursuant to an investigation or audit by the Illinois State
33 Scholarship Commission of a delinquent student loan or
34 monetary award or enforcement of any civil or criminal
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1 penalty or sanction imposed by this Act or by another statute
2 imposing a State tax, and any person who divulges any such
3 information in any manner, except for such purposes and
4 pursuant to order of the Director or in accordance with a
5 proper judicial order, shall be guilty of a Class A
6 misdemeanor. However, the provisions of this paragraph are
7 not applicable to information furnished to a licensed
8 attorney representing the taxpayer where an appeal or a
9 protest has been filed on behalf of the taxpayer.
10 (b) Public information. Nothing contained in this Act
11 shall prevent the Director from publishing or making
12 available to the public the names and addresses of persons
13 filing returns under this Act, or from publishing or making
14 available reasonable statistics concerning the operation of
15 the tax wherein the contents of returns are grouped into
16 aggregates in such a way that the information contained in
17 any individual return shall not be disclosed.
18 (c) Governmental agencies. The Director may make
19 available to the Secretary of the Treasury of the United
20 States or his delegate, or the proper officer or his delegate
21 of any other state imposing a tax upon or measured by income,
22 for exclusively official purposes, information received by
23 the Department in the administration of this Act, but such
24 permission shall be granted only if the United States or such
25 other state, as the case may be, grants the Department
26 substantially similar privileges. The Director may exchange
27 information with the Illinois Department of Public Aid and
28 the Department of Human Services (acting as successor to the
29 Department of Public Aid under the Department of Human
30 Services Act) for the purpose of verifying sources and
31 amounts of income and for other purposes directly connected
32 with the administration of this Act and the Illinois Public
33 Aid Code. The Director may exchange information with the
34 Director of the Department of Employment Security for the
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1 purpose of verifying sources and amounts of income and for
2 other purposes directly connected with the administration of
3 this Act and Acts administered by the Department of
4 Employment Security. The Director may make available to the
5 Illinois Industrial Commission information regarding
6 employers for the purpose of verifying the insurance coverage
7 required under the Workers' Compensation Act and Workers'
8 Occupational Diseases Act.
9 The Director may make available to any State agency,
10 including the Illinois Supreme Court, which licenses persons
11 to engage in any occupation, information that a person
12 licensed by such agency has failed to file returns under this
13 Act or pay the tax, penalty and interest shown therein, or
14 has failed to pay any final assessment of tax, penalty or
15 interest due under this Act. The Director may also make
16 available to the Secretary of State information that a
17 corporation which has been issued a certificate of
18 incorporation by the Secretary of State has failed to file
19 returns under this Act or pay the tax, penalty and interest
20 shown therein, or has failed to pay any final assessment of
21 tax, penalty or interest due under this Act. An assessment is
22 final when all proceedings in court for review of such
23 assessment have terminated or the time for the taking thereof
24 has expired without such proceedings being instituted. For
25 taxable years ending on or after December 31, 1987, the
26 Director may make available to the Director or principal
27 officer of any Department of the State of Illinois,
28 information that a person employed by such Department has
29 failed to file returns under this Act or pay the tax, penalty
30 and interest shown therein. For purposes of this paragraph,
31 the word "Department" shall have the same meaning as provided
32 in Section 3 of the State Employees Group Insurance Act of
33 1971.
34 (d) The Director shall make available for public
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1 inspection in the Department's principal office and for
2 publication, at cost, administrative decisions issued on or
3 after January 1, 1995. These decisions are to be made
4 available in a manner so that the following taxpayer
5 information is not disclosed:
6 (1) The names, addresses, and identification
7 numbers of the taxpayer, related entities, and employees.
8 (2) At the sole discretion of the Director, trade
9 secrets or other confidential information identified as
10 such by the taxpayer, no later than 30 days after receipt
11 of an administrative decision, by such means as the
12 Department shall provide by rule.
13 The Director shall determine the appropriate extent of
14 the deletions allowed in paragraph (2). In the event the
15 taxpayer does not submit deletions, the Director shall make
16 only the deletions specified in paragraph (1).
17 The Director shall make available for public inspection
18 and publication an administrative decision within 180 days
19 after the issuance of the administrative decision. The term
20 "administrative decision" has the same meaning as defined in
21 Section 3-101 of Article III of the Code of Civil Procedure.
22 Costs collected under this Section shall be paid into the Tax
23 Compliance and Administration Fund.
24 (e) Nothing contained in this Act shall prevent the
25 Director from divulging information to any person pursuant to
26 a request or authorization made by the taxpayer, by an
27 authorized representative of the taxpayer, or, in the case of
28 information related to a joint return, by the spouse filing
29 the joint return with the taxpayer.
30 (Source: P.A. 88-669, eff. 11-29-94; 89-507, eff. 7-1-97.)
31 Section 20. The Use Tax Act is amended by changing
32 Sections 9 and 20 as follows:
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1 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
2 Sec. 9. Except as to motor vehicles, watercraft,
3 aircraft, and trailers that are required to be registered
4 with an agency of this State, each retailer required or
5 authorized to collect the tax imposed by this Act shall pay
6 to the Department the amount of such tax (except as otherwise
7 provided) at the time when he is required to file his return
8 for the period during which such tax was collected, less a
9 discount of 2.1% prior to January 1, 1990, and 1.75% on and
10 after January 1, 1990, or $5 per calendar year, whichever is
11 greater, which is allowed to reimburse the retailer for
12 expenses incurred in collecting the tax, keeping records,
13 preparing and filing returns, remitting the tax and supplying
14 data to the Department on request. In the case of retailers
15 who report and pay the tax on a transaction by transaction
16 basis, as provided in this Section, such discount shall be
17 taken with each such tax remittance instead of when such
18 retailer files his periodic return. A retailer need not
19 remit that part of any tax collected by him to the extent
20 that he is required to remit and does remit the tax imposed
21 by the Retailers' Occupation Tax Act, with respect to the
22 sale of the same property.
23 Where such tangible personal property is sold under a
24 conditional sales contract, or under any other form of sale
25 wherein the payment of the principal sum, or a part thereof,
26 is extended beyond the close of the period for which the
27 return is filed, the retailer, in collecting the tax (except
28 as to motor vehicles, watercraft, aircraft, and trailers that
29 are required to be registered with an agency of this State),
30 may collect for each tax return period, only the tax
31 applicable to that part of the selling price actually
32 received during such tax return period.
33 Except as provided in this Section, on or before the
34 twentieth day of each calendar month, such retailer shall
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1 file a return for the preceding calendar month. Such return
2 shall be filed on forms prescribed by the Department and
3 shall furnish such information as the Department may
4 reasonably require.
5 The Department may require returns to be filed on a
6 quarterly basis. If so required, a return for each calendar
7 quarter shall be filed on or before the twentieth day of the
8 calendar month following the end of such calendar quarter.
9 The taxpayer shall also file a return with the Department for
10 each of the first two months of each calendar quarter, on or
11 before the twentieth day of the following calendar month,
12 stating:
13 1. The name of the seller;
14 2. The address of the principal place of business
15 from which he engages in the business of selling tangible
16 personal property at retail in this State;
17 3. The total amount of taxable receipts received by
18 him during the preceding calendar month from sales of
19 tangible personal property by him during such preceding
20 calendar month, including receipts from charge and time
21 sales, but less all deductions allowed by law;
22 4. The amount of credit provided in Section 2d of
23 this Act;
24 5. The amount of tax due;
25 5-5. The signature of the taxpayer; and
26 6. Such other reasonable information as the
27 Department may require.
28 If a taxpayer fails to sign a return within 30 days after
29 the proper notice and demand for signature by the Department,
30 the return shall be considered valid and any amount shown to
31 be due on the return shall be deemed assessed.
32 Beginning October 1, 1993, a taxpayer who has an average
33 monthly tax liability of $150,000 or more shall make all
34 payments required by rules of the Department by electronic
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1 funds transfer. Beginning October 1, 1994, a taxpayer who has
2 an average monthly tax liability of $100,000 or more shall
3 make all payments required by rules of the Department by
4 electronic funds transfer. Beginning October 1, 1995, a
5 taxpayer who has an average monthly tax liability of $50,000
6 or more shall make all payments required by rules of the
7 Department by electronic funds transfer. The term "average
8 monthly tax liability" means the sum of the taxpayer's
9 liabilities under this Act, and under all other State and
10 local occupation and use tax laws administered by the
11 Department, for the immediately preceding calendar year
12 divided by 12.
13 Before August 1 of each year beginning in 1993, the
14 Department shall notify all taxpayers required to make
15 payments by electronic funds transfer. All taxpayers required
16 to make payments by electronic funds transfer shall make
17 those payments for a minimum of one year beginning on October
18 1.
19 Any taxpayer not required to make payments by electronic
20 funds transfer may make payments by electronic funds transfer
21 with the permission of the Department.
22 All taxpayers required to make payment by electronic
23 funds transfer and any taxpayers authorized to voluntarily
24 make payments by electronic funds transfer shall make those
25 payments in the manner authorized by the Department.
26 The Department shall adopt such rules as are necessary to
27 effectuate a program of electronic funds transfer and the
28 requirements of this Section.
29 If the taxpayer's average monthly tax liability to the
30 Department under this Act, the Retailers' Occupation Tax Act,
31 the Service Occupation Tax Act, the Service Use Tax Act was
32 $10,000 or more during the preceding 4 complete calendar
33 quarters, he shall file a return with the Department each
34 month by the 20th day of the month next following the month
SB856 Enrolled -54- LRB9000732KDcbA
1 during which such tax liability is incurred and shall make
2 payments to the Department on or before the 7th, 15th, 22nd
3 and last day of the month during which such liability is
4 incurred. If the month during which such tax liability is
5 incurred began prior to January 1, 1985, each payment shall
6 be in an amount equal to 1/4 of the taxpayer's actual
7 liability for the month or an amount set by the Department
8 not to exceed 1/4 of the average monthly liability of the
9 taxpayer to the Department for the preceding 4 complete
10 calendar quarters (excluding the month of highest liability
11 and the month of lowest liability in such 4 quarter period).
12 If the month during which such tax liability is incurred
13 begins on or after January 1, 1985, and prior to January 1,
14 1987, each payment shall be in an amount equal to 22.5% of
15 the taxpayer's actual liability for the month or 27.5% of the
16 taxpayer's liability for the same calendar month of the
17 preceding year. If the month during which such tax liability
18 is incurred begins on or after January 1, 1987, and prior to
19 January 1, 1988, each payment shall be in an amount equal to
20 22.5% of the taxpayer's actual liability for the month or
21 26.25% of the taxpayer's liability for the same calendar
22 month of the preceding year. If the month during which such
23 tax liability is incurred begins on or after January 1, 1988,
24 and prior to January 1, 1989, or begins on or after January
25 1, 1996, each payment shall be in an amount equal to 22.5% of
26 the taxpayer's actual liability for the month or 25% 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, 1989, and prior to
30 January 1, 1996, each payment shall be in an amount equal to
31 22.5% of the taxpayer's actual liability for the month or 25%
32 of the taxpayer's liability for the same calendar month of
33 the preceding year or 100% of the taxpayer's actual liability
34 for the quarter monthly reporting period. The amount of such
SB856 Enrolled -55- LRB9000732KDcbA
1 quarter monthly payments shall be credited against the final
2 tax liability of the taxpayer's return for that month. Once
3 applicable, the requirement of the making of quarter monthly
4 payments to the Department shall continue until such
5 taxpayer's average monthly liability to the Department during
6 the preceding 4 complete calendar quarters (excluding the
7 month of highest liability and the month of lowest liability)
8 is less than $9,000, or until such taxpayer's average monthly
9 liability to the Department as computed for each calendar
10 quarter of the 4 preceding complete calendar quarter period
11 is less than $10,000. However, if a taxpayer can show the
12 Department that a substantial change in the taxpayer's
13 business has occurred which causes the taxpayer to anticipate
14 that his average monthly tax liability for the reasonably
15 foreseeable future will fall below $10,000, then such
16 taxpayer may petition the Department for change in such
17 taxpayer's reporting status. The Department shall change
18 such taxpayer's reporting status unless it finds that such
19 change is seasonal in nature and not likely to be long term.
20 If any such quarter monthly payment is not paid at the time
21 or in the amount required by this Section, then the taxpayer
22 shall be liable for penalties and interest on taxpayer's 2.1%
23 or 1.75% vendors' discount shall be reduced by 2.1% or 1.75%,
24 as the case may be, of the difference between the minimum
25 amount due and the amount of such quarter monthly payment
26 actually and timely paid and the taxpayer shall be liable for
27 penalties and interest on such difference, except insofar as
28 the taxpayer has previously made payments for that month to
29 the Department in excess of the minimum payments previously
30 due as provided in this Section. The Department shall make
31 reasonable rules and regulations to govern the quarter
32 monthly payment amount and quarter monthly payment dates for
33 taxpayers who file on other than a calendar monthly basis.
34 If any such payment provided for in this Section exceeds
SB856 Enrolled -56- LRB9000732KDcbA
1 the taxpayer's liabilities under this Act, the Retailers'
2 Occupation Tax Act, the Service Occupation Tax Act and the
3 Service Use Tax Act, as shown by an original monthly return,
4 the Department shall issue to the taxpayer a credit
5 memorandum no later than 30 days after the date of payment,
6 which memorandum may be submitted by the taxpayer to the
7 Department in payment of tax liability subsequently to be
8 remitted by the taxpayer to the Department or be assigned by
9 the taxpayer to a similar taxpayer under this Act, the
10 Retailers' Occupation Tax Act, the Service Occupation Tax Act
11 or the Service Use Tax Act, in accordance with reasonable
12 rules and regulations to be prescribed by the Department,
13 except that if such excess payment is shown on an original
14 monthly return and is made after December 31, 1986, no credit
15 memorandum shall be issued, unless requested by the taxpayer.
16 If no such request is made, the taxpayer may credit such
17 excess payment against tax liability subsequently to be
18 remitted by the taxpayer to the Department under this Act,
19 the Retailers' Occupation Tax Act, the Service Occupation Tax
20 Act or the Service Use Tax Act, in accordance with reasonable
21 rules and regulations prescribed by the Department. If the
22 Department subsequently determines that all or any part of
23 the credit taken was not actually due to the taxpayer, the
24 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
25 by 2.1% or 1.75% of the difference between the credit taken
26 and that actually due, and the taxpayer shall be liable for
27 penalties and interest on such difference.
28 If the retailer is otherwise required to file a monthly
29 return and if the retailer's average monthly tax liability to
30 the Department does not exceed $200, the Department may
31 authorize his returns to be filed on a quarter annual basis,
32 with the return for January, February, and March of a given
33 year being due by April 20 of such year; with the return for
34 April, May and June of a given year being due by July 20 of
SB856 Enrolled -57- LRB9000732KDcbA
1 such year; with the return for July, August and September of
2 a given year being due by October 20 of such year, and with
3 the return for October, November and December of a given year
4 being due by January 20 of the following year.
5 If the retailer is otherwise required to file a monthly
6 or quarterly return and if the retailer's average monthly tax
7 liability to the Department does not exceed $50, the
8 Department may authorize his returns to be filed on an annual
9 basis, with the return for a given year being due by January
10 20 of the following year.
11 Such quarter annual and annual returns, as to form and
12 substance, shall be subject to the same requirements as
13 monthly returns.
14 Notwithstanding any other provision in this Act
15 concerning the time within which a retailer may file his
16 return, in the case of any retailer who ceases to engage in a
17 kind of business which makes him responsible for filing
18 returns under this Act, such retailer shall file a final
19 return under this Act with the Department not more than one
20 month after discontinuing such 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 or trailer retailer for
32 the purpose of resale, that seller for resale may report the
33 transfer of all the aircraft, watercraft, motor vehicles or
34 trailers involved in that transaction to the Department on
SB856 Enrolled -58- LRB9000732KDcbA
1 the same uniform invoice-transaction reporting return form.
2 For purposes of this Section, "watercraft" means a Class 2,
3 Class 3, or Class 4 watercraft as defined in Section 3-2 of
4 the Boat Registration and Safety Act, a personal watercraft,
5 or any boat equipped with an inboard motor.
6 The transaction reporting return in the case of motor
7 vehicles or trailers that are required to be registered with
8 an agency of this State, shall be the same document as the
9 Uniform Invoice referred to in Section 5-402 of the Illinois
10 Vehicle Code and must show the name and address of the
11 seller; the name and address of the purchaser; the amount of
12 the selling price including the amount allowed by the
13 retailer for traded-in property, if any; the amount allowed
14 by the retailer for the traded-in tangible personal property,
15 if any, to the extent to which Section 2 of this Act allows
16 an exemption for the value of traded-in property; the balance
17 payable after deducting such trade-in allowance from the
18 total selling price; the amount of tax due from the retailer
19 with respect to such transaction; the amount of tax collected
20 from the purchaser by the retailer on such transaction (or
21 satisfactory evidence that such tax is not due in that
22 particular instance, if that is claimed to be the fact); the
23 place and date of the sale; a sufficient identification of
24 the property sold; such other information as is required in
25 Section 5-402 of the Illinois Vehicle Code, and such other
26 information as the Department may reasonably require.
27 The transaction reporting return in the case of
28 watercraft and aircraft 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
SB856 Enrolled -59- LRB9000732KDcbA
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, and such other information as the
9 Department may reasonably require.
10 Such transaction reporting return shall be filed not
11 later than 20 days after the date of delivery of the item
12 that is being sold, but may be filed by the retailer at any
13 time sooner than that if he chooses to do so. The
14 transaction reporting return and tax remittance or proof of
15 exemption from the tax that is imposed by this Act may be
16 transmitted to the Department by way of the State agency with
17 which, or State officer with whom, the tangible personal
18 property must be titled or registered (if titling or
19 registration is required) if the Department and such agency
20 or State officer determine that this procedure will expedite
21 the processing of applications for title or registration.
22 With each such transaction reporting return, the retailer
23 shall remit the proper amount of tax due (or shall submit
24 satisfactory evidence that the sale is not taxable if that is
25 the case), to the Department or its agents, whereupon the
26 Department shall issue, in the purchaser's name, a tax
27 receipt (or a certificate of exemption if the Department is
28 satisfied that the particular sale is tax exempt) which such
29 purchaser may submit to the agency with which, or State
30 officer with whom, he must title or register the tangible
31 personal property that is involved (if titling or
32 registration is required) in support of such purchaser's
33 application for an Illinois certificate or other evidence of
34 title or registration to such tangible personal property.
SB856 Enrolled -60- LRB9000732KDcbA
1 No retailer's failure or refusal to remit tax under this
2 Act precludes a user, who has paid the proper tax to the
3 retailer, from obtaining his certificate of title or other
4 evidence of title or registration (if titling or registration
5 is required) upon satisfying the Department that such user
6 has paid the proper tax (if tax is due) to the retailer. The
7 Department shall adopt appropriate rules to carry out the
8 mandate of this paragraph.
9 If the user who would otherwise pay tax to the retailer
10 wants the transaction reporting return filed and the payment
11 of tax or proof of exemption made to the Department before
12 the retailer is willing to take these actions and such user
13 has not paid the tax to the retailer, such user may certify
14 to the fact of such delay by the retailer, and may (upon the
15 Department being satisfied of the truth of such
16 certification) transmit the information required by the
17 transaction reporting return and the remittance for tax or
18 proof of exemption directly to the Department and obtain his
19 tax receipt or exemption determination, in which event the
20 transaction reporting return and tax remittance (if a tax
21 payment was required) shall be credited by the Department to
22 the proper retailer's account with the Department, but
23 without the 2.1% or 1.75% discount provided for in this
24 Section being allowed. When the user pays the tax directly
25 to the Department, he shall pay the tax in the same amount
26 and in the same form in which it would be remitted if the tax
27 had been remitted to the Department by the retailer.
28 Where a retailer collects the tax with respect to the
29 selling price of tangible personal property which he sells
30 and the purchaser thereafter returns such tangible personal
31 property and the retailer refunds the selling price thereof
32 to the purchaser, such retailer shall also refund, to the
33 purchaser, the tax so collected from the purchaser. When
34 filing his return for the period in which he refunds such tax
SB856 Enrolled -61- LRB9000732KDcbA
1 to the purchaser, the retailer may deduct the amount of the
2 tax so refunded by him to the purchaser from any other use
3 tax which such retailer may be required to pay or remit to
4 the Department, as shown by such return, if the amount of the
5 tax to be deducted was previously remitted to the Department
6 by such retailer. If the retailer has not previously
7 remitted the amount of such tax to the Department, he is
8 entitled to no deduction under this Act upon refunding such
9 tax to the purchaser.
10 Any retailer filing a return under this Section shall
11 also include (for the purpose of paying tax thereon) the
12 total tax covered by such return upon the selling price of
13 tangible personal property purchased by him at retail from a
14 retailer, but as to which the tax imposed by this Act was not
15 collected from the retailer filing such return, and such
16 retailer shall remit the amount of such tax to the Department
17 when filing such return.
18 If experience indicates such action to be practicable,
19 the Department may prescribe and furnish a combination or
20 joint return which will enable retailers, who are required to
21 file returns hereunder and also under the Retailers'
22 Occupation Tax Act, to furnish all the return information
23 required by both Acts on the one form.
24 Where the retailer has more than one business registered
25 with the Department under separate registration under this
26 Act, such retailer may not file each return that is due as a
27 single return covering all such registered businesses, but
28 shall file separate returns for each such registered
29 business.
30 Beginning January 1, 1990, each month the Department
31 shall pay into the State and Local Sales Tax Reform Fund, a
32 special fund in the State Treasury which is hereby created,
33 the net revenue realized for the preceding month from the 1%
34 tax on sales of food for human consumption which is to be
SB856 Enrolled -62- LRB9000732KDcbA
1 consumed off the premises where it is sold (other than
2 alcoholic beverages, soft drinks and food which has been
3 prepared for immediate consumption) and prescription and
4 nonprescription medicines, drugs, medical appliances and
5 insulin, urine testing materials, syringes and needles used
6 by diabetics.
7 Beginning January 1, 1990, each month the Department
8 shall pay into the County and Mass Transit District Fund 4%
9 of the net revenue realized for the preceding month from the
10 6.25% 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 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, 20% of the net revenue
17 realized for the preceding month from the 6.25% general rate
18 on the selling price of tangible personal property, other
19 than tangible personal property which is purchased outside
20 Illinois at retail from a retailer and which is titled or
21 registered by an agency of this State's government.
22 Beginning January 1, 1990, each month the Department
23 shall pay into the Local Government Tax Fund 16% of the net
24 revenue realized for the preceding month from the 6.25%
25 general rate on the selling price of tangible personal
26 property which is purchased outside Illinois at retail from a
27 retailer and which is titled or registered by an agency of
28 this State's government.
29 Of the remainder of the moneys received by the Department
30 pursuant to this Act, (a) 1.75% thereof shall be paid into
31 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
32 and on and after July 1, 1989, 3.8% thereof shall be paid
33 into the Build Illinois Fund; provided, however, that if in
34 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
SB856 Enrolled -63- LRB9000732KDcbA
1 as the case may be, of the moneys received by the Department
2 and required to be paid into the Build Illinois Fund pursuant
3 to Section 3 of the Retailers' Occupation Tax Act, Section 9
4 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
5 Section 9 of the Service Occupation Tax Act, such Acts being
6 hereinafter called the "Tax Acts" and such aggregate of 2.2%
7 or 3.8%, as the case may be, of moneys being hereinafter
8 called the "Tax Act Amount", and (2) the amount transferred
9 to the Build Illinois Fund from the State and Local Sales Tax
10 Reform Fund shall be less than the Annual Specified Amount
11 (as defined in Section 3 of the Retailers' Occupation Tax
12 Act), an amount equal to the difference shall be immediately
13 paid into the Build Illinois Fund from other moneys received
14 by the Department pursuant to the Tax Acts; and further
15 provided, that if on the last business day of any month the
16 sum of (1) the Tax Act Amount required to be deposited into
17 the Build Illinois Bond Account in the Build Illinois Fund
18 during such month and (2) the amount transferred during such
19 month to the Build Illinois Fund from the State and Local
20 Sales Tax Reform Fund shall have been less than 1/12 of the
21 Annual Specified Amount, an amount equal to the difference
22 shall be immediately paid into the Build Illinois Fund from
23 other moneys received by the Department pursuant to the Tax
24 Acts; and, further provided, that in no event shall the
25 payments required under the preceding proviso result in
26 aggregate payments into the Build Illinois Fund pursuant to
27 this clause (b) for any fiscal year in excess of the greater
28 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
29 for such fiscal year; and, further provided, that the amounts
30 payable into the Build Illinois Fund under this clause (b)
31 shall be payable only until such time as the aggregate amount
32 on deposit under each trust indenture securing Bonds issued
33 and outstanding pursuant to the Build Illinois Bond Act is
34 sufficient, taking into account any future investment income,
SB856 Enrolled -64- LRB9000732KDcbA
1 to fully provide, in accordance with such indenture, for the
2 defeasance of or the payment of the principal of, premium, if
3 any, and interest on the Bonds secured by such indenture and
4 on any Bonds expected to be issued thereafter and all fees
5 and costs payable with respect thereto, all as certified by
6 the Director of the Bureau of the Budget. If on the last
7 business day of any month in which Bonds are outstanding
8 pursuant to the Build Illinois Bond Act, the aggregate of the
9 moneys deposited in the Build Illinois Bond Account in the
10 Build Illinois Fund in such month shall be less than the
11 amount required to be transferred in such month from the
12 Build Illinois Bond Account to the Build Illinois Bond
13 Retirement and Interest Fund pursuant to Section 13 of the
14 Build Illinois Bond Act, an amount equal to such deficiency
15 shall be immediately paid from other moneys received by the
16 Department pursuant to the Tax Acts to the Build Illinois
17 Fund; provided, however, that any amounts paid to the Build
18 Illinois Fund in any fiscal year pursuant to this sentence
19 shall be deemed to constitute payments pursuant to clause (b)
20 of the preceding sentence and shall reduce the amount
21 otherwise payable for such fiscal year pursuant to clause (b)
22 of the preceding sentence. The moneys received by the
23 Department pursuant to this Act and required to be deposited
24 into the Build Illinois Fund are subject to the pledge, claim
25 and charge set forth in Section 12 of the Build Illinois Bond
26 Act.
27 Subject to payment of amounts into the Build Illinois
28 Fund as provided in the preceding paragraph or in any
29 amendment thereto hereafter enacted, the following specified
30 monthly installment of the amount requested in the
31 certificate of the Chairman of the Metropolitan Pier and
32 Exposition Authority provided under Section 8.25f of the
33 State Finance Act, but not in excess of the sums designated
34 as "Total Deposit", shall be deposited in the aggregate from
SB856 Enrolled -65- LRB9000732KDcbA
1 collections under Section 9 of the Use Tax Act, Section 9 of
2 the Service Use Tax Act, Section 9 of the Service Occupation
3 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
4 into the McCormick Place Expansion Project Fund in the
5 specified fiscal years.
6 Fiscal Year Total Deposit
7 1993 $0
8 1994 53,000,000
9 1995 58,000,000
10 1996 61,000,000
11 1997 64,000,000
12 1998 68,000,000
13 1999 71,000,000
14 2000 75,000,000
15 2001 80,000,000
16 2002 84,000,000
17 2003 89,000,000
18 2004 and 93,000,000
19 each fiscal year
20 thereafter that bonds
21 are outstanding under
22 Section 13.2 of the
23 Metropolitan Pier and
24 Exposition Authority
25 Act.
26 Beginning July 20, 1993 and in each month of each fiscal
27 year thereafter, one-eighth of the amount requested in the
28 certificate of the Chairman of the Metropolitan Pier and
29 Exposition Authority for that fiscal year, less the amount
30 deposited into the McCormick Place Expansion Project Fund by
31 the State Treasurer in the respective month under subsection
32 (g) of Section 13 of the Metropolitan Pier and Exposition
33 Authority Act, plus cumulative deficiencies in the deposits
34 required under this Section for previous months and years,
SB856 Enrolled -66- LRB9000732KDcbA
1 shall be deposited into the McCormick Place Expansion Project
2 Fund, until the full amount requested for the fiscal year,
3 but not in excess of the amount specified above as "Total
4 Deposit", has been deposited.
5 Subject to payment of amounts into the Build Illinois
6 Fund and the McCormick Place Expansion Project Fund pursuant
7 to the preceding paragraphs or in any amendment thereto
8 hereafter enacted, each month the Department shall pay into
9 the Local Government Distributive Fund .4% of the net revenue
10 realized for the preceding month from the 5% general rate, or
11 .4% of 80% of the net revenue realized for the preceding
12 month from the 6.25% general rate, as the case may be, on the
13 selling price of tangible personal property which amount
14 shall, subject to appropriation, be distributed as provided
15 in Section 2 of the State Revenue Sharing Act. No payments or
16 distributions pursuant to this paragraph shall be made if the
17 tax imposed by this Act on photoprocessing products is
18 declared unconstitutional, or if the proceeds from such tax
19 are unavailable for distribution because of litigation.
20 Subject to payment of amounts into the Build Illinois
21 Fund, the McCormick Place Expansion Project Fund, and the
22 Local Government Distributive Fund pursuant to the preceding
23 paragraphs or in any amendments thereto hereafter enacted,
24 beginning July 1, 1993, the Department shall each month pay
25 into the Illinois Tax Increment Fund 0.27% of 80% of the net
26 revenue realized for the preceding month from the 6.25%
27 general rate on the selling price of tangible personal
28 property.
29 Of the remainder of the moneys received by the Department
30 pursuant to this Act, 75% thereof shall be paid into the
31 State Treasury and 25% shall be reserved in a special account
32 and used only for the transfer to the Common School Fund as
33 part of the monthly transfer from the General Revenue Fund in
34 accordance with Section 8a of the State Finance Act.
SB856 Enrolled -67- LRB9000732KDcbA
1 As soon as possible after the first day of each month,
2 upon certification of the Department of Revenue, the
3 Comptroller shall order transferred and the Treasurer shall
4 transfer from the General Revenue Fund to the Motor Fuel Tax
5 Fund an amount equal to 1.7% of 80% of the net revenue
6 realized under this Act for the second preceding month;
7 except that this transfer shall not be made for the months
8 February through June of 1992.
9 Net revenue realized for a month shall be the revenue
10 collected by the State pursuant to this Act, less the amount
11 paid out during that month as refunds to taxpayers for
12 overpayment of liability.
13 For greater simplicity of administration, manufacturers,
14 importers and wholesalers whose products are sold at retail
15 in Illinois by numerous retailers, and who wish to do so, may
16 assume the responsibility for accounting and paying to the
17 Department all tax accruing under this Act with respect to
18 such sales, if the retailers who are affected do not make
19 written objection to the Department to this arrangement.
20 (Source: P.A. 88-45; 88-116; 88-194; 88-660, eff. 9-16-94;
21 88-669, eff. 11-29-94; 88-670, eff. 12-2-94; 89-379, eff.
22 1-1-96; 89-626, eff. 8-9-96.)
23 (35 ILCS 105/20) (from Ch. 120, par. 439.20)
24 Sec. 20. As soon as practicable after a claim for credit
25 or refund is filed, the Department shall examine the same and
26 determine the amount of credit or refund to which the
27 claimant or the claimant's legal representative, in the event
28 that the claimant shall have died or become a person under
29 legal disability, is entitled and shall, by its Notice of
30 Tentative Determination of Claim, notify the claimant or his
31 or her legal representative of such determination, which
32 determination shall be prima facie correct. Proof of such
33 determination by the Department may be made at any hearing
SB856 Enrolled -68- LRB9000732KDcbA
1 before the Department or in any legal proceeding by a
2 reproduced copy of the Department's record relating thereto,
3 in the name of the Department under the certificate of the
4 Director of Revenue. Such reproduced copy shall, without
5 further proof, be admitted into evidence before the
6 Department or in any legal proceeding and shall be prima
7 facie proof of the correctness of the Department's
8 determination, as shown therein. If such claimant, or the
9 legal representative of a deceased claimant or a claimant who
10 is a person under legal disability shall, within 60 20 days
11 after the Department's Notice of Tentative Determination of
12 Claim, file a protest thereto and request a hearing thereon,
13 the Department shall give notice to such claimant, or the
14 legal representative of a deceased claimant, or a claimant
15 who is a person under legal disability of the time and place
16 fixed for such hearing, and shall hold a hearing in
17 conformity with the provisions of this Act, and pursuant
18 thereto shall issue its Final Determination of the amount, if
19 any, found to be due as a result of such hearing, to such
20 claimant, or the legal representative of a deceased claimant
21 or a claimant who is a person under legal disability.
22 If a protest to the Department's Notice of Tentative
23 Determination of Claim is not filed within 60 20 days and a
24 request for a hearing thereon is not made as provided herein,
25 the said Notice shall thereupon become and operate as a Final
26 Determination; and, if the Department's Notice of Tentative
27 Determination, upon becoming a Final Determination, indicates
28 no amount due to the claimant, or, upon issuance of a credit
29 or refund for the amount, if any, found by the Department to
30 be due, the claim in all its aspects shall be closed and no
31 longer open to protest, hearing, judicial review, or by any
32 other proceeding or action whatever, either before the
33 Department or in any court of this State. Claims for credit
34 or refund hereunder must be filed with and initially
SB856 Enrolled -69- LRB9000732KDcbA
1 determined by the Department, the remedy herein provided
2 being exclusive; and no court shall have jurisdiction to
3 determine the merits of any claim except upon review as
4 provided in this Act.
5 (Source: P.A. 83-706.)
6 Section 25. The Service Use Tax Act is amended by
7 changing Section 18 as follows:
8 (35 ILCS 110/18) (from Ch. 120, par. 439.48)
9 Sec. 18. As soon as practicable after a claim for credit
10 or refund is filed, the Department shall examine the same and
11 determine the amount of credit or refund to which the
12 claimant or the claimant's legal representative, in the event
13 that the claimant shall have died or become a person under
14 legal disability, is entitled and shall, by its Notice of
15 Tentative Determination of Claim, notify the claimant or his
16 legal representative of such determination, which
17 determination shall be prima facie correct. Proof of such
18 determination by the Department may be made at any hearing
19 before the Department or in any legal proceeding by a
20 reproduced copy of the Department's record relating thereto,
21 in the name of the Department under the certificate of the
22 Director of Revenue. Such reproduced copy shall, without
23 further proof, be admitted into evidence before the
24 Department or in any legal proceeding and shall be prima
25 facie proof of the correctness of the Department's
26 determination, as shown therein. If such claimant, or the
27 legal representative of a deceased claimant or a claimant who
28 is a person under legal disability, shall, within 60 20 days
29 after the Department's Notice of Tentative Determination of
30 Claim, file a protest thereto and request a hearing thereon,
31 the Department shall give notice to such claimant, or the
32 legal representative of a deceased claimant or claimant who
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1 is a person under legal disability, of the time and place
2 fixed for such hearing, and shall hold a hearing in
3 conformity with the provisions of this Act, and pursuant
4 thereto shall issue its Final Determination of the amount, if
5 any, found to be due as a result of such hearing, to such
6 claimant, or the legal representative of a deceased or
7 incompetent claimant.
8 If a protest to the Department's Notice of Tentative
9 Determination of Claim is not filed within 60 20 days and a
10 request for a hearing thereon is not made as provided herein,
11 the Notice shall thereupon become and operate as a Final
12 Determination; and, if the Department's Notice of Tentative
13 Determination upon becoming a Final Determination, indicates
14 no amount due to the claimant, or, upon issuance of a credit
15 or refund for the amount, if any, found by the Department to
16 be due, the claim in all its aspects shall be closed and no
17 longer open to protest, hearing, judicial review, or by any
18 other proceeding or action whatever, either before the
19 Department or in any court of this State. Claims for credit
20 or refund hereunder must be filed with and initially
21 determined by the Department, the remedy herein provided
22 being exclusive; and no court shall have jurisdiction to
23 determine the merits of any claim except upon review as
24 provided in this Act.
25 (Source: P.A. 83-706.)
26 Section 30. The Service Occupation Tax Act is amended by
27 changing Section 18 as follows:
28 (35 ILCS 115/18) (from Ch. 120, par. 439.118)
29 Sec. 18. As soon as practicable after a claim for credit
30 or refund is filed, the Department shall examine the same and
31 determine the amount of credit or refund to which the
32 claimant or the claimant's legal representative, in the event
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1 that the claimant shall have died or become a person under
2 legal disability, is entitled and shall, by its Notice of
3 Tentative Determination of Claim, notify the claimant or his
4 or her legal representative of such determination, which
5 determination shall be prima facie correct. Proof of such
6 determination by the Department may be made at any hearing
7 before the Department or in any legal proceeding by a
8 reproduced copy of the Department's record relating thereto,
9 in the name of the Department under the certificate of the
10 Director of Revenue. Such reproduced copy shall, without
11 further proof, be admitted into evidence before the
12 Department or in any legal proceeding and shall be prima
13 facie proof of the correctness of the Department's
14 determination, as shown therein. If such claimant, or the
15 legal representative of a deceased claimant or a claimant who
16 is under legal disability shall, within 60 20 days after the
17 Department's Notice of Tentative Determination of Claim, file
18 a protest thereto and request a hearing thereon, the
19 Department shall give notice to such claimant, or the legal
20 representative of a deceased claimant or a claimant who is
21 under legal disability, of the time and place fixed for such
22 hearing, and shall hold a hearing in conformity with the
23 provisions of this Act, and pursuant thereto shall issue its
24 Final Determination of the amount, if any, found to be due as
25 a result of such hearing, to such claimant, or the legal
26 representative of a deceased claimant or a claimant who is
27 under legal disability.
28 If a protest to the Department's Notice of Tentative
29 Determination of Claim is not filed within 60 20 days and a
30 request for a hearing thereon is not made as provided herein,
31 the Notice shall thereupon become and operate as a Final
32 Determination; and, if the Department's Notice of Tentative
33 Determination, upon becoming a Final Determination, indicates
34 no amount due to the claimant, or, upon issuance of a credit
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1 or refund for the amount, if any, found by the Department to
2 be due, the claim in all its aspects shall be closed and no
3 longer open to protest, hearing, judicial review, or by any
4 other proceeding or action whatever, either before the
5 Department or in any court of this State. Claims for credit
6 or refund hereunder must be filed with and initially
7 determined by the Department, the remedy herein provided
8 being exclusive; and no court shall have jurisdiction to
9 determine the merits of any claim except upon review as
10 provided in this Act.
11 (Source: P.A. 83-706.)
12 Section 35. The Retailers' Occupation Tax Act is amended
13 by changing Sections 2a, 3, 6c, and 11 as follows:
14 (35 ILCS 120/2a) (from Ch. 120, par. 441a)
15 Sec. 2a. It is unlawful for any person to engage in the
16 business of selling tangible personal property at retail in
17 this State without a certificate of registration from the
18 Department. Application for a certificate of registration
19 shall be made to the Department upon forms furnished by it.
20 Each such application shall be signed and verified and shall
21 state: (1) The name and social security number of the
22 applicant; (2) the address of his principal place of
23 business; (3) the address of the principal place of business
24 from which he engages in the business of selling tangible
25 personal property at retail in this State and the addresses
26 of all other places of business, if any (enumerating such
27 addresses, if any, in a separate list attached to and made a
28 part of the application), from which he engages in the
29 business of selling tangible personal property at retail in
30 this State, and (4) the name and address of the person or
31 persons who will be responsible for filing returns and
32 payment of taxes due under this Act, (5) in the case of a
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1 corporation, the name, title, and social security number of
2 each corporate officer, (6) in the case of a limited
3 liability company, the name, social security number, and FEIN
4 number of each manager and member, and (7) such other
5 information as the Department may reasonably require. The
6 application shall contain an acceptance of responsibility
7 signed by the person or persons who will be responsible for
8 filing returns and payment of the taxes due under this Act.
9 If the applicant will sell tangible personal property at
10 retail through vending machines, his application to register
11 shall indicate the number of vending machines to be so
12 operated; and thereafter, he shall notify the Department by
13 January 31 of the number of vending machines which such
14 person was using in his business of selling tangible personal
15 property at retail on the preceding December 31.
16 The Department may deny a certificate of registration to
17 any applicant if the owner, any partner, any manager or
18 member of a limited liability company, or a corporate officer
19 of the applicant, is or has been the owner, a partner, a
20 manager or member of a limited liability company, or a
21 corporate officer, of another retailer that is in default for
22 moneys due under this Act.
23 Every applicant for a certificate of registration
24 hereunder shall, at the time of filing such application,
25 furnish a bond from a surety company authorized to do
26 business in the State of Illinois, or an irrevocable bank
27 letter of credit or a bond signed by 2 personal sureties who
28 have filed, with the Department, sworn statements disclosing
29 net assets equal to at least 3 times the amount of the bond
30 to be required of such applicant, or a bond secured by an
31 assignment of a bank account or certificate of deposit,
32 stocks or bonds, conditioned upon the applicant paying to the
33 State of Illinois all moneys becoming due under this Act and
34 under any other State tax law or municipal or county tax
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1 ordinance or resolution under which the certificate of
2 registration that is issued to the applicant under this Act
3 will permit the applicant to engage in business without
4 registering separately under such other law, ordinance or
5 resolution. The Department shall fix the amount of such
6 security in each case, taking into consideration the amount
7 of money expected to become due from the applicant under this
8 Act and under any other State tax law or municipal or county
9 tax ordinance or resolution under which the certificate of
10 registration that is issued to the applicant under this Act
11 will permit the applicant to engage in business without
12 registering separately under such other law, ordinance or
13 resolution. The amount of security required by the Department
14 shall be such as, in its opinion, will protect the State of
15 Illinois against failure to pay the amount which may become
16 due from the applicant under this Act and under any other
17 State tax law or municipal or county tax ordinance or
18 resolution under which the certificate of registration that
19 is issued to the applicant under this Act will permit the
20 applicant to engage in business without registering
21 separately under such other law, ordinance or resolution, but
22 the amount of the security required by the Department shall
23 not exceed three times the amount of the applicant's average
24 monthly tax liability, or $50,000.00, whichever amount is
25 lower.
26 No certificate of registration under this Act shall be
27 issued by the Department until the applicant provides the
28 Department with satisfactory security as herein provided for.
29 Upon receipt of the application for certificate of
30 registration in proper form, and upon approval by the
31 Department of the security furnished by the applicant, the
32 Department shall issue to such applicant a certificate of
33 registration which shall permit the person to whom it is
34 issued to engage in the business of selling tangible personal
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1 property at retail in this State. The certificate of
2 registration shall be conspicuously displayed at the place of
3 business which the person so registered states in his
4 application to be the principal place of business from which
5 he engages in the business of selling tangible personal
6 property at retail in this State.
7 No certificate of registration issued to a taxpayer who
8 files returns required by this Act on a monthly basis shall
9 be valid after the expiration of 5 years from the date of its
10 issuance or last renewal. The expiration date of a
11 sub-certificate of registration shall be that of the
12 certificate of registration to which the sub-certificate
13 relates. A certificate of registration shall automatically
14 be renewed, subject to revocation as provided by this Act,
15 for an additional 5 years from the date of its expiration
16 unless otherwise notified by the Department as provided by
17 this paragraph. Where a taxpayer to whom a certificate of
18 registration is issued under this Act is in default to the
19 State of Illinois for delinquent returns or for moneys due
20 under this Act or any other State tax law or municipal or
21 county ordinance administered or enforced by the Department,
22 the Department shall, not less than 120 days before the
23 expiration date of such certificate of registration, give
24 notice to the taxpayer to whom the certificate was issued, of
25 the account period of the delinquent returns, the amount of
26 tax, penalty and interest due and owing from the taxpayer,
27 and that the certificate of registration shall not be
28 automatically renewed upon its expiration date unless the
29 taxpayer, on or before the date of expiration, has filed and
30 paid the delinquent returns or paid the defaulted amount in
31 full. A taxpayer to whom such a notice is issued shall be
32 deemed an applicant for renewal. The Department shall
33 promulgate regulations establishing procedures for taxpayers
34 who file returns on a monthly basis but desire and qualify to
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1 change to a quarterly or yearly filing basis and will no
2 longer be subject to renewal under this Section, and for
3 taxpayers who file returns on a yearly or quarterly basis but
4 who desire or are required to change to a monthly filing
5 basis and will be subject to renewal under this Section.
6 The Department may in its discretion approve renewal by
7 an applicant who is in default if, at the time of application
8 for renewal, the applicant files all of the delinquent
9 returns or pays to the Department such percentage of the
10 defaulted amount as may be determined by the Department and
11 agrees in writing to waive all limitations upon the
12 Department for collection of the remaining defaulted amount
13 to the Department over a period not to exceed 5 years from
14 the date of renewal of the certificate; however, no renewal
15 application submitted by an applicant who is in default shall
16 be approved if the immediately preceding renewal by the
17 applicant was conditioned upon the installment payment
18 agreement described in this Section. The payment agreement
19 herein provided for shall be in addition to and not in lieu
20 of the security required by this Section of a taxpayer who is
21 no longer considered a prior continuous compliance taxpayer.
22 The execution of the payment agreement as provided in this
23 Act shall not toll the accrual of interest at the statutory
24 rate.
25 A certificate of registration issued under this Act more
26 than 5 years before the effective date of this amendatory Act
27 of 1989 shall expire and be subject to the renewal provisions
28 of this Section on the next anniversary of the date of
29 issuance of such certificate which occurs more than 6 months
30 after the effective date of this amendatory Act of 1989. A
31 certificate of registration issued less than 5 years before
32 the effective date of this amendatory Act of 1989 shall
33 expire and be subject to the renewal provisions of this
34 Section on the 5th anniversary of the issuance of the
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1 certificate.
2 If the person so registered states that he operates other
3 places of business from which he engages in the business of
4 selling tangible personal property at retail in this State,
5 the Department shall furnish him with a sub-certificate of
6 registration for each such place of business, and the
7 applicant shall display the appropriate sub-certificate of
8 registration at each such place of business. All
9 sub-certificates of registration shall bear the same
10 registration number as that appearing upon the certificate of
11 registration to which such sub-certificates relate.
12 If the applicant will sell tangible personal property at
13 retail through vending machines, the Department shall furnish
14 him with a sub-certificate of registration for each such
15 vending machine, and the applicant shall display the
16 appropriate sub-certificate of registration on each such
17 vending machine by attaching the sub-certificate of
18 registration to a conspicuous part of such vending machine.
19 Where the same person engages in 2 or more businesses of
20 selling tangible personal property at retail in this State,
21 which businesses are substantially different in character or
22 engaged in under different trade names or engaged in under
23 other substantially dissimilar circumstances (so that it is
24 more practicable, from an accounting, auditing or bookkeeping
25 standpoint, for such businesses to be separately registered),
26 the Department may require or permit such person (subject to
27 the same requirements concerning the furnishing of security
28 as those that are provided for hereinbefore in this Section
29 as to each application for a certificate of registration) to
30 apply for and obtain a separate certificate of registration
31 for each such business or for any of such businesses, under a
32 single certificate of registration supplemented by related
33 sub-certificates of registration.
34 Any person who is registered under the "Retailers'
SB856 Enrolled -78- LRB9000732KDcbA
1 Occupation Tax Act" as of March 8, 1963, and who, during the
2 3-year period immediately prior to March 8, 1963, or during a
3 continuous 3-year period part of which passed immediately
4 before and the remainder of which passes immediately after
5 March 8, 1963, has been so registered continuously and who is
6 determined by the Department not to have been either
7 delinquent or deficient in the payment of tax liability
8 during that period under this Act or under any other State
9 tax law or municipal or county tax ordinance or resolution
10 under which the certificate of registration that is issued to
11 the registrant under this Act will permit the registrant to
12 engage in business without registering separately under such
13 other law, ordinance or resolution, shall be considered to be
14 a Prior Continuous Compliance taxpayer. Also any taxpayer who
15 has, as verified by the Department, faithfully and
16 continuously complied with the condition of his bond or other
17 security under the provisions of this Act for a period of 3
18 consecutive years shall be considered to be a Prior
19 Continuous Compliance taxpayer.
20 Every Prior Continuous Compliance taxpayer shall be
21 exempt from all requirements under this Act concerning the
22 furnishing of security as a condition precedent to his being
23 authorized to engage in the business of selling tangible
24 personal property at retail in this State. This exemption
25 shall continue for each such taxpayer until such time as he
26 may be determined by the Department to be delinquent in the
27 filing of any returns, or is determined by the Department
28 (either through the Department's issuance of a final
29 assessment which has become final under the Act, or by the
30 taxpayer's filing of a return which admits tax that is not
31 paid to be due) to be delinquent or deficient in the paying
32 of any tax under this Act or under any other State tax law or
33 municipal or county tax ordinance or resolution under which
34 the certificate of registration that is issued to the
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1 registrant under this Act will permit the registrant to
2 engage in business without registering separately under such
3 other law, ordinance or resolution, at which time that
4 taxpayer shall become subject to all the financial
5 responsibility requirements of this Act and, as a condition
6 of being allowed to continue to engage in the business of
7 selling tangible personal property at retail, shall be
8 required to post bond or other acceptable security with the
9 Department covering liability which such taxpayer may
10 thereafter incur. Any taxpayer who fails to pay an admitted
11 or established liability under this Act may also be required
12 to post bond or other acceptable security with this
13 Department guaranteeing the payment of such admitted or
14 established liability.
15 No certificate of registration shall be issued to any
16 person who is in default to the State of Illinois for moneys
17 due under this Act or under any other State tax law or
18 municipal or county tax ordinance or resolution under which
19 the certificate of registration that is issued to the
20 applicant under this Act will permit the applicant to engage
21 in business without registering separately under such other
22 law, ordinance or resolution.
23 Any person aggrieved by any decision of the Department
24 under this Section may, within 20 days after notice of such
25 decision, protest and request a hearing, whereupon the
26 Department shall give notice to such person of the time and
27 place fixed for such hearing and shall hold a hearing in
28 conformity with the provisions of this Act and then issue its
29 final administrative decision in the matter to such person.
30 In the absence of such a protest within 20 days, the
31 Department's decision shall become final without any further
32 determination being made or notice given.
33 With respect to security other than bonds (upon which the
34 Department may sue in the event of a forfeiture), if the
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1 taxpayer fails to pay, when due, any amount whose payment
2 such security guarantees, the Department shall, after such
3 liability is admitted by the taxpayer or established by the
4 Department through the issuance of a final assessment that
5 has become final under the law, convert the security which
6 that taxpayer has furnished into money for the State, after
7 first giving the taxpayer at least 10 days' written notice,
8 by registered or certified mail, to pay the liability or
9 forfeit such security to the Department. If the security
10 consists of stocks or bonds or other securities which are
11 listed on a public exchange, the Department shall sell such
12 securities through such public exchange. If the security
13 consists of an irrevocable bank letter of credit, the
14 Department shall convert the security in the manner provided
15 for in the Uniform Commercial Code. If the security consists
16 of a bank certificate of deposit, the Department shall
17 convert the security into money by demanding and collecting
18 the amount of such bank certificate of deposit from the bank
19 which issued such certificate. If the security consists of a
20 type of stocks or other securities which are not listed on a
21 public exchange, the Department shall sell such security to
22 the highest and best bidder after giving at least 10 days'
23 notice of the date, time and place of the intended sale by
24 publication in the "State Official Newspaper". If the
25 Department realizes more than the amount of such liability
26 from the security, plus the expenses incurred by the
27 Department in converting the security into money, the
28 Department shall pay such excess to the taxpayer who
29 furnished such security, and the balance shall be paid into
30 the State Treasury.
31 The Department shall discharge any surety and shall
32 release and return any security deposited, assigned, pledged
33 or otherwise provided to it by a taxpayer under this Section
34 within 30 days after:
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1 (1) such taxpayer becomes a Prior Continuous
2 Compliance taxpayer; or
3 (2) such taxpayer has ceased to collect receipts on
4 which he is required to remit tax to the Department, has
5 filed a final tax return, and has paid to the Department
6 an amount sufficient to discharge his remaining tax
7 liability, as determined by the Department, under this
8 Act and under every other State tax law or municipal or
9 county tax ordinance or resolution under which the
10 certificate of registration issued under this Act permits
11 the registrant to engage in business without registering
12 separately under such other law, ordinance or resolution.
13 The Department shall make a final determination of the
14 taxpayer's outstanding tax liability as expeditiously as
15 possible after his final tax return has been filed; if
16 the Department cannot make such final determination
17 within 45 days after receiving the final tax return,
18 within such period it shall so notify the taxpayer,
19 stating its reasons therefor.
20 (Source: P.A. 88-480; 89-399, eff. 8-20-95.)
21 (35 ILCS 120/3) (from Ch. 120, par. 442)
22 Sec. 3. Except as provided in this Section, on or before
23 the twentieth day of each calendar month, every person
24 engaged in the business of selling tangible personal property
25 at retail in this State during the preceding calendar month
26 shall file a return with the Department, stating:
27 1. The name of the seller;
28 2. His residence address and the address of his
29 principal place of business and the address of the
30 principal place of business (if that is a different
31 address) from which he engages in the business of selling
32 tangible personal property at retail in this State;
33 3. Total amount of receipts received by him during
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1 the preceding calendar month or quarter, as the case may
2 be, from sales of tangible personal property, and from
3 services furnished, by him during such preceding calendar
4 month or quarter;
5 4. Total amount received by him during the
6 preceding calendar month or quarter on charge and time
7 sales of tangible personal property, and from services
8 furnished, by him prior to the month or quarter for which
9 the return is filed;
10 5. Deductions allowed by law;
11 6. Gross receipts which were received by him during
12 the preceding calendar month or quarter and upon the
13 basis of which the tax is imposed;
14 7. The amount of credit provided in Section 2d of
15 this Act;
16 8. The amount of tax due;
17 9. The signature of the taxpayer; and
18 10. Such other reasonable information as the
19 Department may require.
20 If a taxpayer fails to sign a return within 30 days after
21 the proper notice and demand for signature by the Department,
22 the return shall be considered valid and any amount shown to
23 be due on the return shall be deemed assessed.
24 Each return shall be accompanied by the statement of
25 prepaid tax issued pursuant to Section 2e for which credit is
26 claimed.
27 A retailer may accept a Manufacturer's Purchase Credit
28 certification from a purchaser in satisfaction of Use Tax as
29 provided in Section 3-85 of the Use Tax Act if the purchaser
30 provides the appropriate documentation as required by Section
31 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
32 certification, accepted by a retailer as provided in Section
33 3-85 of the Use Tax Act, may be used by that retailer to
34 satisfy Retailers' Occupation Tax liability in the amount
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1 claimed in the certification, not to exceed 6.25% of the
2 receipts subject to tax from a qualifying purchase.
3 The Department may require returns to be filed on a
4 quarterly basis. If so required, a return for each calendar
5 quarter shall be filed on or before the twentieth day of the
6 calendar month following the end of such calendar quarter.
7 The taxpayer shall also file a return with the Department for
8 each of the first two months of each calendar quarter, on or
9 before the twentieth day of the following calendar month,
10 stating:
11 1. The name of the seller;
12 2. The address of the principal place of business
13 from which he engages in the business of selling tangible
14 personal property at retail in this State;
15 3. The total amount of taxable receipts received by
16 him during the preceding calendar month from sales of
17 tangible personal property by him during such preceding
18 calendar month, including receipts from charge and time
19 sales, but less all deductions allowed by law;
20 4. The amount of credit provided in Section 2d of
21 this Act;
22 5. The amount of tax due; and
23 6. Such other reasonable information as the
24 Department may require.
25 If a total amount of less than $1 is payable, refundable
26 or creditable, such amount shall be disregarded if it is less
27 than 50 cents and shall be increased to $1 if it is 50 cents
28 or more.
29 Beginning October 1, 1993, a taxpayer who has an average
30 monthly tax liability of $150,000 or more shall make all
31 payments required by rules of the Department by electronic
32 funds transfer. Beginning October 1, 1994, a taxpayer who
33 has an average monthly tax liability of $100,000 or more
34 shall make all payments required by rules of the Department
SB856 Enrolled -84- LRB9000732KDcbA
1 by electronic funds transfer. Beginning October 1, 1995, a
2 taxpayer who has an average monthly tax liability of $50,000
3 or more shall make all payments required by rules of the
4 Department by electronic funds transfer. The term "average
5 monthly tax liability" shall be the sum of the taxpayer's
6 liabilities under this Act, and under all other State and
7 local occupation and use tax laws administered by the
8 Department, for the immediately preceding calendar year
9 divided by 12.
10 Before August 1 of each year beginning in 1993, the
11 Department shall notify all taxpayers required to make
12 payments by electronic funds transfer. All taxpayers
13 required to make payments by electronic funds transfer shall
14 make those payments for a minimum of one year beginning on
15 October 1.
16 Any taxpayer not required to make payments by electronic
17 funds transfer may make payments by electronic funds transfer
18 with the permission of the Department.
19 All taxpayers required to make payment by electronic
20 funds transfer and any taxpayers authorized to voluntarily
21 make payments by electronic funds transfer shall make those
22 payments in the manner authorized by the Department.
23 The Department shall adopt such rules as are necessary to
24 effectuate a program of electronic funds transfer and the
25 requirements of this Section.
26 Any amount which is required to be shown or reported on
27 any return or other document under this Act shall, if such
28 amount is not a whole-dollar amount, be increased to the
29 nearest whole-dollar amount in any case where the fractional
30 part of a dollar is 50 cents or more, and decreased to the
31 nearest whole-dollar amount where the fractional part of a
32 dollar is less than 50 cents.
33 If the retailer is otherwise required to file a monthly
34 return and if the retailer's average monthly tax liability to
SB856 Enrolled -85- LRB9000732KDcbA
1 the Department does not exceed $200, the Department may
2 authorize his returns to be filed on a quarter annual basis,
3 with the return for January, February and March of a given
4 year being due by April 20 of such year; with the return for
5 April, May and June of a given year being due by July 20 of
6 such year; with the return for July, August and September of
7 a given year being due by October 20 of such year, and with
8 the return for October, November and December of a given year
9 being due by January 20 of the following year.
10 If the retailer is otherwise required to file a monthly
11 or quarterly return and if the retailer's average monthly tax
12 liability with the Department does not exceed $50, the
13 Department may authorize his returns to be filed on an annual
14 basis, with the return for a given year being due by January
15 20 of the following year.
16 Such quarter annual and annual returns, as to form and
17 substance, shall be subject to the same requirements as
18 monthly returns.
19 Notwithstanding any other provision in this Act
20 concerning the time within which a retailer may file his
21 return, in the case of any retailer who ceases to engage in a
22 kind of business which makes him responsible for filing
23 returns under this Act, such retailer shall file a final
24 return under this Act with the Department not more than one
25 month after discontinuing such business.
26 Where the same person has more than one business
27 registered with the Department under separate registrations
28 under this Act, such person may not file each return that is
29 due as a single return covering all such registered
30 businesses, but shall file separate returns for each such
31 registered 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
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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 retailer or trailer
9 retailer for the purpose of resale, that seller for resale
10 may report the transfer of all aircraft, watercraft, motor
11 vehicles or trailers involved in that transaction to the
12 Department on the same uniform invoice-transaction reporting
13 return form. For purposes of this Section, "watercraft"
14 means a Class 2, Class 3, or Class 4 watercraft as defined in
15 Section 3-2 of the Boat Registration and Safety Act, a
16 personal watercraft, or any boat equipped with an inboard
17 motor.
18 Any retailer who sells only motor vehicles, watercraft,
19 aircraft, or trailers that are required to be registered with
20 an agency of this State, so that all retailers' occupation
21 tax liability is required to be reported, and is reported, on
22 such transaction reporting returns and who is not otherwise
23 required to file monthly or quarterly returns, need not file
24 monthly or quarterly returns. However, those retailers shall
25 be required to file returns on an annual basis.
26 The transaction reporting return, in the case of motor
27 vehicles or trailers that are required to be registered with
28 an agency of this State, shall be the same document as the
29 Uniform Invoice referred to in Section 5-402 of The Illinois
30 Vehicle Code and 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,
SB856 Enrolled -87- LRB9000732KDcbA
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; such other information as is required in
11 Section 5-402 of The Illinois Vehicle Code, and such other
12 information as the Department may reasonably require.
13 The transaction reporting return in the case of
14 watercraft or aircraft must show the name and address of the
15 seller; the name and address of the purchaser; the amount of
16 the selling price including the amount allowed by the
17 retailer for traded-in property, if any; the amount allowed
18 by the retailer for the traded-in tangible personal property,
19 if any, to the extent to which Section 1 of this Act allows
20 an exemption for the value of traded-in property; the balance
21 payable after deducting such trade-in allowance from the
22 total selling price; the amount of tax due from the retailer
23 with respect to such transaction; the amount of tax collected
24 from the purchaser by the retailer on such transaction (or
25 satisfactory evidence that such tax is not due in that
26 particular instance, if that is claimed to be the fact); the
27 place and date of the sale, a sufficient identification of
28 the property sold, and such other information as the
29 Department may reasonably require.
30 Such transaction reporting return shall be filed not
31 later than 20 days after the day of delivery of the item that
32 is being sold, but may be filed by the retailer at any time
33 sooner than that if he chooses to do so. The transaction
34 reporting return and tax remittance or proof of exemption
SB856 Enrolled -88- LRB9000732KDcbA
1 from the Illinois use tax may be transmitted to the
2 Department by way of the State agency with which, or State
3 officer with whom the tangible personal property must be
4 titled or registered (if titling or registration is required)
5 if the Department and such agency or State officer determine
6 that this procedure will expedite the processing of
7 applications for title or registration.
8 With each such transaction reporting return, the retailer
9 shall remit the proper amount of tax due (or shall submit
10 satisfactory evidence that the sale is not taxable if that is
11 the case), to the Department or its agents, whereupon the
12 Department shall issue, in the purchaser's name, a use tax
13 receipt (or a certificate of exemption if the Department is
14 satisfied that the particular sale is tax exempt) which such
15 purchaser may submit to the agency with which, or State
16 officer with whom, he must title or register the tangible
17 personal property that is involved (if titling or
18 registration is required) in support of such purchaser's
19 application for an Illinois certificate or other evidence of
20 title or registration to such tangible personal property.
21 No retailer's failure or refusal to remit tax under this
22 Act precludes a user, who has paid the proper tax to the
23 retailer, from obtaining his certificate of title or other
24 evidence of title or registration (if titling or registration
25 is required) upon satisfying the Department that such user
26 has paid the proper tax (if tax is due) to the retailer. The
27 Department shall adopt appropriate rules to carry out the
28 mandate of this paragraph.
29 If the user who would otherwise pay tax to the retailer
30 wants the transaction reporting return filed and the payment
31 of the tax or proof of exemption made to the Department
32 before the retailer is willing to take these actions and such
33 user has not paid the tax to the retailer, such user may
34 certify to the fact of such delay by the retailer and may
SB856 Enrolled -89- LRB9000732KDcbA
1 (upon the Department being satisfied of the truth of such
2 certification) transmit the information required by the
3 transaction reporting return and the remittance for tax or
4 proof of exemption directly to the Department and obtain his
5 tax receipt or exemption determination, in which event the
6 transaction reporting return and tax remittance (if a tax
7 payment was required) shall be credited by the Department to
8 the proper retailer's account with the Department, but
9 without the 2.1% or 1.75% discount provided for in this
10 Section being allowed. When the user pays the tax directly
11 to the Department, he shall pay the tax in the same amount
12 and in the same form in which it would be remitted if the tax
13 had been remitted to the Department by the retailer.
14 Refunds made by the seller during the preceding return
15 period to purchasers, on account of tangible personal
16 property returned to the seller, shall be allowed as a
17 deduction under subdivision 5 of his monthly or quarterly
18 return, as the case may be, in case the seller had
19 theretofore included the receipts from the sale of such
20 tangible personal property in a return filed by him and had
21 paid the tax imposed by this Act with respect to such
22 receipts.
23 Where the seller is a corporation, the return filed on
24 behalf of such corporation shall be signed by the president,
25 vice-president, secretary or treasurer or by the properly
26 accredited agent of such corporation.
27 Where the seller is a limited liability company, the
28 return filed on behalf of the limited liability company shall
29 be signed by a manager, member, or properly accredited agent
30 of the limited liability company.
31 Except as provided in this Section, the retailer filing
32 the return under this Section shall, at the time of filing
33 such return, pay to the Department the amount of tax imposed
34 by this Act less a discount of 2.1% prior to January 1, 1990
SB856 Enrolled -90- LRB9000732KDcbA
1 and 1.75% on and after January 1, 1990, or $5 per calendar
2 year, whichever is greater, which is allowed to reimburse the
3 retailer for the expenses incurred in keeping records,
4 preparing and filing returns, remitting the tax and supplying
5 data to the Department on request. Any prepayment made
6 pursuant to Section 2d of this Act shall be included in the
7 amount on which such 2.1% or 1.75% discount is computed. In
8 the case of retailers who report and pay the tax on a
9 transaction by transaction basis, as provided in this
10 Section, such discount shall be taken with each such tax
11 remittance instead of when such retailer files his periodic
12 return.
13 If the taxpayer's average monthly tax liability to the
14 Department under this Act, the Use Tax Act, the Service
15 Occupation Tax Act, and the Service Use Tax Act, excluding
16 any liability for prepaid sales tax to be remitted in
17 accordance with Section 2d of this Act, was $10,000 or more
18 during the preceding 4 complete calendar quarters, he shall
19 file a return with the Department each month by the 20th day
20 of the month next following the month during which such tax
21 liability is incurred and shall make payments to the
22 Department on or before the 7th, 15th, 22nd and last day of
23 the month during which such liability is incurred. If the
24 month during which such tax liability is incurred began prior
25 to January 1, 1985, each payment shall be in an amount equal
26 to 1/4 of the taxpayer's actual liability for the month or an
27 amount set by the Department not to exceed 1/4 of the average
28 monthly liability of the taxpayer to the Department for the
29 preceding 4 complete calendar quarters (excluding the month
30 of highest liability and the month of lowest liability in
31 such 4 quarter period). If the month during which such tax
32 liability is incurred begins on or after January 1, 1985 and
33 prior to January 1, 1987, each payment shall be in an amount
34 equal to 22.5% of the taxpayer's actual liability for the
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1 month or 27.5% 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, 1987 and prior to January 1, 1988, each payment
5 shall be in an amount equal to 22.5% of the taxpayer's actual
6 liability for the month or 26.25% of the taxpayer's liability
7 for the same calendar month of the preceding year. If the
8 month during which such tax liability is incurred begins on
9 or after January 1, 1988, and prior to January 1, 1989, or
10 begins on or after January 1, 1996, each payment shall be in
11 an amount equal to 22.5% of the taxpayer's actual liability
12 for the month or 25% of the taxpayer's liability for the same
13 calendar month of the preceding year. If the month during
14 which such tax liability is incurred begins on or after
15 January 1, 1989, and prior to January 1, 1996, each payment
16 shall be in an amount equal to 22.5% of the taxpayer's actual
17 liability for the month or 25% of the taxpayer's liability
18 for the same calendar month of the preceding year or 100% of
19 the taxpayer's actual liability for the quarter monthly
20 reporting period. The amount of such quarter monthly
21 payments shall be credited against the final tax liability of
22 the taxpayer's return for that month. Once applicable, the
23 requirement of the making of quarter monthly payments to the
24 Department by taxpayers having an average monthly tax
25 liability of $10,000 or more as determined in the manner
26 provided above shall continue until such taxpayer's average
27 monthly liability to the Department during the preceding 4
28 complete calendar quarters (excluding the month of highest
29 liability and the month of lowest liability) is less than
30 $9,000, or until such taxpayer's average monthly liability to
31 the Department as computed for each calendar quarter of the 4
32 preceding complete calendar quarter period is less than
33 $10,000. However, if a taxpayer can show the Department that
34 a substantial change in the taxpayer's business has occurred
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1 which causes the taxpayer to anticipate that his average
2 monthly tax liability for the reasonably foreseeable future
3 will fall below $10,000, then such taxpayer may petition the
4 Department for a change in such taxpayer's reporting status.
5 The Department shall change such taxpayer's reporting status
6 unless it finds that such change is seasonal in nature and
7 not likely to be long term. If any such quarter monthly
8 payment is not paid at the time or in the amount required by
9 this Section, then the taxpayer shall be liable for penalties
10 and interest on taxpayer's 2.1% or 1.75% vendors' discount
11 shall be reduced by 2.1% or 1.75% of the difference between
12 the minimum amount due as a payment and the amount of such
13 quarter monthly payment actually and timely paid, and the
14 taxpayer shall be liable for penalties and interest on such
15 difference, except insofar as the taxpayer has previously
16 made payments for that month to the Department in excess of
17 the minimum payments previously due as provided in this
18 Section. The Department shall make reasonable rules and
19 regulations to govern the quarter monthly payment amount and
20 quarter monthly payment dates for taxpayers who file on other
21 than a calendar monthly basis.
22 Without regard to whether a taxpayer is required to make
23 quarter monthly payments as specified above, any taxpayer who
24 is required by Section 2d of this Act to collect and remit
25 prepaid taxes and has collected prepaid taxes which average
26 in excess of $25,000 per month during the preceding 2
27 complete calendar quarters, shall file a return with the
28 Department as required by Section 2f and shall make payments
29 to the Department on or before the 7th, 15th, 22nd and last
30 day of the month during which such liability is incurred. If
31 the month during which such tax liability is incurred began
32 prior to the effective date of this amendatory Act of 1985,
33 each payment shall be in an amount not less than 22.5% of the
34 taxpayer's actual liability under Section 2d. If the month
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1 during which such tax liability is incurred begins on or
2 after January 1, 1986, each payment shall be in an amount
3 equal to 22.5% of the taxpayer's actual liability for the
4 month or 27.5% of the taxpayer's liability for the same
5 calendar month of the preceding calendar year. If the month
6 during which such tax liability is incurred begins on or
7 after January 1, 1987, each payment shall be in an amount
8 equal to 22.5% of the taxpayer's actual liability for the
9 month or 26.25% of the taxpayer's liability for the same
10 calendar month of the preceding year. The amount of such
11 quarter monthly payments shall be credited against the final
12 tax liability of the taxpayer's return for that month filed
13 under this Section or Section 2f, as the case may be. Once
14 applicable, the requirement of the making of quarter monthly
15 payments to the Department pursuant to this paragraph shall
16 continue until such taxpayer's average monthly prepaid tax
17 collections during the preceding 2 complete calendar quarters
18 is $25,000 or less. If any such quarter monthly payment is
19 not paid at the time or in the amount required, the taxpayer
20 shall be liable for penalties and interest on such
21 difference, except insofar as the taxpayer has previously
22 made payments for that month in excess of the minimum
23 payments previously due.
24 If any payment provided for in this Section exceeds the
25 taxpayer's liabilities under this Act, the Use Tax Act, the
26 Service Occupation Tax Act and the Service Use Tax Act, as
27 shown on an original monthly return, the Department shall, if
28 requested by the taxpayer, issue to the taxpayer a credit
29 memorandum no later than 30 days after the date of payment.
30 The credit evidenced by such credit memorandum may be
31 assigned by the taxpayer to a similar taxpayer under this
32 Act, the Use Tax Act, the Service Occupation Tax Act or the
33 Service Use Tax Act, in accordance with reasonable rules and
34 regulations to be prescribed by the Department. If no such
SB856 Enrolled -94- LRB9000732KDcbA
1 request is made, the taxpayer may credit such excess payment
2 against tax liability subsequently to be remitted to the
3 Department under this Act, the Use Tax Act, the Service
4 Occupation Tax Act or the Service Use Tax Act, in accordance
5 with reasonable rules and regulations prescribed by the
6 Department. If the Department subsequently determined that
7 all or any part of the credit taken was not actually due to
8 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
9 shall be reduced by 2.1% or 1.75% of the difference between
10 the credit taken and that actually due, and that taxpayer
11 shall be liable for penalties and interest on such
12 difference.
13 If a retailer of motor fuel is entitled to a credit under
14 Section 2d of this Act which exceeds the taxpayer's liability
15 to the Department under this Act for the month which the
16 taxpayer is filing a return, the Department shall issue the
17 taxpayer a credit memorandum for the excess.
18 Beginning January 1, 1990, each month the Department
19 shall pay into the Local Government Tax Fund, a special fund
20 in the State treasury which is hereby created, the net
21 revenue realized for the preceding month from the 1% tax on
22 sales of food for human consumption which is to be consumed
23 off the premises where it is sold (other than alcoholic
24 beverages, soft drinks and food which has been prepared for
25 immediate consumption) and prescription and nonprescription
26 medicines, drugs, medical appliances and insulin, urine
27 testing materials, syringes and needles used by diabetics.
28 Beginning January 1, 1990, each month the Department
29 shall pay into the County and Mass Transit District Fund, a
30 special fund in the State treasury which is hereby created,
31 4% of the net revenue realized for the preceding month from
32 the 6.25% general rate.
33 Beginning January 1, 1990, each month the Department
34 shall pay into the Local Government Tax Fund 16% of the net
SB856 Enrolled -95- LRB9000732KDcbA
1 revenue realized for the preceding month from the 6.25%
2 general rate on the selling price of tangible personal
3 property.
4 Of the remainder of the moneys received by the Department
5 pursuant to this Act, (a) 1.75% thereof shall be paid into
6 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
7 and on and after July 1, 1989, 3.8% thereof shall be paid
8 into the Build Illinois Fund; provided, however, that if in
9 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
10 as the case may be, of the moneys received by the Department
11 and required to be paid into the Build Illinois Fund pursuant
12 to this Act, Section 9 of the Use Tax Act, Section 9 of the
13 Service Use Tax Act, and Section 9 of the Service Occupation
14 Tax Act, such Acts being hereinafter called the "Tax Acts"
15 and such aggregate of 2.2% or 3.8%, as the case may be, of
16 moneys being hereinafter called the "Tax Act Amount", and (2)
17 the amount transferred to the Build Illinois Fund from the
18 State and Local Sales Tax Reform Fund shall be less than the
19 Annual Specified Amount (as hereinafter defined), an amount
20 equal to the difference shall be immediately paid into the
21 Build Illinois Fund from other moneys received by the
22 Department pursuant to the Tax Acts; the "Annual Specified
23 Amount" means the amounts specified below for fiscal years
24 1986 through 1993:
25 Fiscal Year Annual Specified Amount
26 1986 $54,800,000
27 1987 $76,650,000
28 1988 $80,480,000
29 1989 $88,510,000
30 1990 $115,330,000
31 1991 $145,470,000
32 1992 $182,730,000
33 1993 $206,520,000;
34 and means the Certified Annual Debt Service Requirement (as
SB856 Enrolled -96- LRB9000732KDcbA
1 defined in Section 13 of the Build Illinois Bond Act) or the
2 Tax Act Amount, whichever is greater, for fiscal year 1994
3 and each fiscal year thereafter; and further provided, that
4 if on the last business day of any month the sum of (1) the
5 Tax Act Amount required to be deposited into the Build
6 Illinois Bond Account in the Build Illinois Fund during such
7 month and (2) the amount transferred to the Build Illinois
8 Fund from the State and Local Sales Tax Reform Fund shall
9 have been less than 1/12 of the Annual Specified Amount, an
10 amount equal to the difference shall be immediately paid into
11 the Build Illinois Fund from other moneys received by the
12 Department pursuant to the Tax Acts; and, further provided,
13 that in no event shall the payments required under the
14 preceding proviso result in aggregate payments into the Build
15 Illinois Fund pursuant to this clause (b) for any fiscal year
16 in excess of the greater of (i) the Tax Act Amount or (ii)
17 the Annual Specified Amount for such fiscal year. The
18 amounts payable into the Build Illinois Fund under clause (b)
19 of the first sentence in this paragraph shall be payable only
20 until such time as the aggregate amount on deposit under each
21 trust indenture securing Bonds issued and outstanding
22 pursuant to the Build Illinois Bond Act is sufficient, taking
23 into account any future investment income, to fully provide,
24 in accordance with such indenture, for the defeasance of or
25 the payment of the principal of, premium, if any, and
26 interest on the Bonds secured by such indenture and on any
27 Bonds expected to be issued thereafter and all fees and costs
28 payable with respect thereto, all as certified by the
29 Director of the Bureau of the Budget. If on the last
30 business day of any month in which Bonds are outstanding
31 pursuant to the Build Illinois Bond Act, the aggregate of
32 moneys deposited in the Build Illinois Bond Account in the
33 Build Illinois Fund in such month shall be less than the
34 amount required to be transferred in such month from the
SB856 Enrolled -97- LRB9000732KDcbA
1 Build Illinois Bond Account to the Build Illinois Bond
2 Retirement and Interest Fund pursuant to Section 13 of the
3 Build Illinois Bond Act, an amount equal to such deficiency
4 shall be immediately paid from other moneys received by the
5 Department pursuant to the Tax Acts to the Build Illinois
6 Fund; provided, however, that any amounts paid to the Build
7 Illinois Fund in any fiscal year pursuant to this sentence
8 shall be deemed to constitute payments pursuant to clause (b)
9 of the first sentence of this paragraph and shall reduce the
10 amount otherwise payable for such fiscal year pursuant to
11 that clause (b). The moneys received by the Department
12 pursuant to this Act and required to be deposited into the
13 Build Illinois Fund are subject to the pledge, claim and
14 charge set forth in Section 12 of the Build Illinois Bond
15 Act.
16 Subject to payment of amounts into the Build Illinois
17 Fund as provided in the preceding paragraph or in any
18 amendment thereto hereafter enacted, the following specified
19 monthly installment of the amount requested in the
20 certificate of the Chairman of the Metropolitan Pier and
21 Exposition Authority provided under Section 8.25f of the
22 State Finance Act, but not in excess of sums designated as
23 "Total Deposit", shall be deposited in the aggregate from
24 collections under Section 9 of the Use Tax Act, Section 9 of
25 the Service Use Tax Act, Section 9 of the Service Occupation
26 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
27 into the McCormick Place Expansion Project Fund in the
28 specified fiscal years.
29 Fiscal Year Total Deposit
30 1993 $0
31 1994 53,000,000
32 1995 58,000,000
33 1996 61,000,000
34 1997 64,000,000
SB856 Enrolled -98- LRB9000732KDcbA
1 1998 68,000,000
2 1999 71,000,000
3 2000 75,000,000
4 2001 80,000,000
5 2002 84,000,000
6 2003 89,000,000
7 2004 and 93,000,000
8 each fiscal year
9 thereafter that bonds
10 are outstanding under
11 Section 13.2 of the
12 Metropolitan Pier and
13 Exposition Authority
14 Act.
15 Beginning July 20, 1993 and in each month of each fiscal
16 year thereafter, one-eighth of the amount requested in the
17 certificate of the Chairman of the Metropolitan Pier and
18 Exposition Authority for that fiscal year, less the amount
19 deposited into the McCormick Place Expansion Project Fund by
20 the State Treasurer in the respective month under subsection
21 (g) of Section 13 of the Metropolitan Pier and Exposition
22 Authority Act, plus cumulative deficiencies in the deposits
23 required under this Section for previous months and years,
24 shall be deposited into the McCormick Place Expansion Project
25 Fund, until the full amount requested for the fiscal year,
26 but not in excess of the amount specified above as "Total
27 Deposit", has been deposited.
28 Subject to payment of amounts into the Build Illinois
29 Fund and the McCormick Place Expansion Project Fund pursuant
30 to the preceding paragraphs or in any amendment thereto
31 hereafter enacted, each month the Department shall pay into
32 the Local Government Distributive Fund 0.4% of the net
33 revenue realized for the preceding month from the 5% general
34 rate or 0.4% of 80% of the net revenue realized for the
SB856 Enrolled -99- LRB9000732KDcbA
1 preceding month from the 6.25% general rate, as the case may
2 be, on the selling price of tangible personal property which
3 amount shall, subject to appropriation, be distributed as
4 provided in Section 2 of the State Revenue Sharing Act. No
5 payments or distributions pursuant to this paragraph shall be
6 made if the tax imposed by this Act on photoprocessing
7 products is declared unconstitutional, or if the proceeds
8 from such tax are unavailable for distribution because of
9 litigation.
10 Subject to payment of amounts into the Build Illinois
11 Fund, the McCormick Place Expansion Project to the preceding
12 paragraphs or in any amendments thereto hereafter enacted,
13 beginning July 1, 1993, the Department shall each month pay
14 into the Illinois Tax Increment Fund 0.27% of 80% of the net
15 revenue realized for the preceding month from the 6.25%
16 general rate on the selling price of tangible personal
17 property.
18 Of the remainder of the moneys received by the Department
19 pursuant to this Act, 75% thereof shall be paid into the
20 State Treasury and 25% shall be reserved in a special account
21 and used only for the transfer to the Common School Fund as
22 part of the monthly transfer from the General Revenue Fund in
23 accordance with Section 8a of the State Finance Act.
24 The Department may, upon separate written notice to a
25 taxpayer, require the taxpayer to prepare and file with the
26 Department on a form prescribed by the Department within not
27 less than 60 days after receipt of the notice an annual
28 information return for the tax year specified in the notice.
29 Such annual return to the Department shall include a
30 statement of gross receipts as shown by the retailer's last
31 Federal income tax return. If the total receipts of the
32 business as reported in the Federal income tax return do not
33 agree with the gross receipts reported to the Department of
34 Revenue for the same period, the retailer shall attach to his
SB856 Enrolled -100- LRB9000732KDcbA
1 annual return a schedule showing a reconciliation of the 2
2 amounts and the reasons for the difference. The retailer's
3 annual return to the Department shall also disclose the cost
4 of goods sold by the retailer during the year covered by such
5 return, opening and closing inventories of such goods for
6 such year, costs of goods used from stock or taken from stock
7 and given away by the retailer during such year, payroll
8 information of the retailer's business during such year and
9 any additional reasonable information which the Department
10 deems would be helpful in determining the accuracy of the
11 monthly, quarterly or annual returns filed by such retailer
12 as provided for in this Section.
13 If the annual information return required by this Section
14 is not filed when and as required, the taxpayer shall be
15 liable as follows:
16 (i) Until January 1, 1994, the taxpayer shall be
17 liable for a penalty equal to 1/6 of 1% of the tax due
18 from such taxpayer under this Act during the period to be
19 covered by the annual return for each month or fraction
20 of a month until such return is filed as required, the
21 penalty to be assessed and collected in the same manner
22 as any other penalty provided for in this Act.
23 (ii) On and after January 1, 1994, the taxpayer
24 shall be liable for a penalty as described in Section 3-4
25 of the Uniform Penalty and Interest Act.
26 The chief executive officer, proprietor, owner or highest
27 ranking manager shall sign the annual return to certify the
28 accuracy of the information contained therein. Any person
29 who willfully signs the annual return containing false or
30 inaccurate information shall be guilty of perjury and
31 punished accordingly. The annual return form prescribed by
32 the Department shall include a warning that the person
33 signing the return may be liable for perjury.
34 The provisions of this Section concerning the filing of
SB856 Enrolled -101- LRB9000732KDcbA
1 an annual information return do not apply to a retailer who
2 is not required to file an income tax return with the United
3 States Government.
4 As soon as possible after the first day of each month,
5 upon certification of the Department of Revenue, the
6 Comptroller shall order transferred and the Treasurer shall
7 transfer from the General Revenue Fund to the Motor Fuel Tax
8 Fund an amount equal to 1.7% of 80% of the net revenue
9 realized under this Act for the second preceding month;
10 except that this transfer shall not be made for the months
11 February through June, 1992.
12 Net revenue realized for a month shall be the revenue
13 collected by the State pursuant to this Act, less the amount
14 paid out during that month as refunds to taxpayers for
15 overpayment of liability.
16 For greater simplicity of administration, manufacturers,
17 importers and wholesalers whose products are sold at retail
18 in Illinois by numerous retailers, and who wish to do so, may
19 assume the responsibility for accounting and paying to the
20 Department all tax accruing under this Act with respect to
21 such sales, if the retailers who are affected do not make
22 written objection to the Department to this arrangement.
23 Any person who promotes, organizes, provides retail
24 selling space for concessionaires or other types of sellers
25 at the Illinois State Fair, DuQuoin State Fair, county fairs,
26 local fairs, art shows, flea markets and similar exhibitions
27 or events, including any transient merchant as defined by
28 Section 2 of the Transient Merchant Act of 1987, is required
29 to file a report with the Department providing the name of
30 the merchant's business, the name of the person or persons
31 engaged in merchant's business, the permanent address and
32 Illinois Retailers Occupation Tax Registration Number of the
33 merchant, the dates and location of the event and other
34 reasonable information that the Department may require. The
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1 report must be filed not later than the 20th day of the month
2 next following the month during which the event with retail
3 sales was held. Any person who fails to file a report
4 required by this Section commits a business offense and is
5 subject to a fine not to exceed $250.
6 Any person engaged in the business of selling tangible
7 personal property at retail as a concessionaire or other type
8 of seller at the Illinois State Fair, county fairs, art
9 shows, flea markets and similar exhibitions or events, or any
10 transient merchants, as defined by Section 2 of the Transient
11 Merchant Act of 1987, may be required to make a daily report
12 of the amount of such sales to the Department and to make a
13 daily payment of the full amount of tax due. The Department
14 shall impose this requirement when it finds that there is a
15 significant risk of loss of revenue to the State at such an
16 exhibition or event. Such a finding shall be based on
17 evidence that a substantial number of concessionaires or
18 other sellers who are not residents of Illinois will be
19 engaging in the business of selling tangible personal
20 property at retail at the exhibition or event, or other
21 evidence of a significant risk of loss of revenue to the
22 State. The Department shall notify concessionaires and other
23 sellers affected by the imposition of this requirement. In
24 the absence of notification by the Department, the
25 concessionaires and other sellers shall file their returns as
26 otherwise required in this Section.
27 (Source: P.A. 88-45; 88-116; 88-194; 88-480; 88-547, eff.
28 6-30-94; 88-660, eff. 9-16-94; 88-669, eff. 11-29-94; 88-670,
29 eff. 12-2-94; 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
30 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
31 (35 ILCS 120/6c) (from Ch. 120, par. 445c)
32 Sec. 6c. If a protest to the Department's Notice of
33 Tentative Determination of Claim is not filed within 60 20
SB856 Enrolled -103- LRB9000732KDcbA
1 days and a request for a hearing thereon is not made as
2 provided in Section 6b of this Act, the said Notice shall
3 thereupon become and operate as a Final Determination; and,
4 if the Department's Notice of Tentative Determination, upon
5 becoming a Final Determination, indicates no amount due to
6 the claimant, or, upon issuance of a credit memorandum or
7 refund for the amount, if any, found by the Department to be
8 due, the claim in all its aspects shall be closed and no
9 longer open to protest, hearing, judicial review, or by any
10 other proceeding or action whatever, either before the
11 Department or in any court of this State. Claims for credit
12 or refund hereunder must be filed with and initially
13 determined by the Department, the remedy herein provided
14 being exclusive; and no court shall have jurisdiction to
15 determine the merits of any claim except upon review as
16 provided herein.
17 (Source: P. A. 77-1032.)
18 (35 ILCS 120/11) (from Ch. 120, par. 450)
19 Sec. 11. All information received by the Department from
20 returns filed under this Act, or from any investigation
21 conducted under this Act, shall be confidential, except for
22 official purposes, and any person who divulges any such
23 information in any manner, except in accordance with a proper
24 judicial order or as otherwise provided by law, shall be
25 guilty of a Class B misdemeanor.
26 Nothing in this Act prevents the Director of Revenue from
27 publishing or making available to the public the names and
28 addresses of persons filing returns under this Act, or
29 reasonable statistics concerning the operation of the tax by
30 grouping the contents of returns so the information in any
31 individual return is not disclosed.
32 Nothing in this Act prevents the Director of Revenue from
33 divulging to the United States Government or the government
SB856 Enrolled -104- LRB9000732KDcbA
1 of any other state, or any village that does not levy any
2 real property taxes for village operations and that receives
3 more than 60% of its general corporate revenue from taxes
4 under the Use Tax Act, the Service Use Tax Act, the Service
5 Occupation Tax Act, and the Retailers' Occupation Tax Act, or
6 any officer or agency thereof, for exclusively official
7 purposes, information received by the Department in
8 administering this Act, provided that such other governmental
9 agency agrees to divulge requested tax information to the
10 Department.
11 The Department's furnishing of information derived from a
12 taxpayer's return or from an investigation conducted under
13 this Act to the surety on a taxpayer's bond that has been
14 furnished to the Department under this Act, either to provide
15 notice to such surety of its potential liability under the
16 bond or, in order to support the Department's demand for
17 payment from such surety under the bond, is an official
18 purpose within the meaning of this Section.
19 The furnishing upon request of information obtained by
20 the Department from returns filed under this Act or
21 investigations conducted under this Act to the Illinois
22 Liquor Control Commission for official use is deemed to be an
23 official purpose within the meaning of this Section.
24 Notice to a surety of potential liability shall not be
25 given unless the taxpayer has first been notified, not less
26 than 10 days prior thereto, of the Department's intent to so
27 notify the surety.
28 The furnishing upon request of the Auditor General, or
29 his authorized agents, for official use, of returns filed and
30 information related thereto under this Act is deemed to be an
31 official purpose within the meaning of this Section.
32 Where an appeal or a protest has been filed on behalf of
33 a taxpayer, the furnishing upon request of the attorney for
34 the taxpayer of returns filed by the taxpayer and information
SB856 Enrolled -105- LRB9000732KDcbA
1 related thereto under this Act is deemed to be an official
2 purpose within the meaning of this Section.
3 The furnishing of financial information to a home rule
4 unit that has imposed a tax similar to that imposed by this
5 Act pursuant to its home rule powers, or to any village that
6 does not levy any real property taxes for village operations
7 and that receives more than 60% of its general corporate
8 revenue from taxes under the Use Tax Act, the Service Use Tax
9 Act, the Service Occupation Tax Act, and the Retailers'
10 Occupation Tax Act, upon request of the Chief Executive
11 thereof, is an official purpose within the meaning of this
12 Section, provided the home rule unit or village that does
13 not levy any real property taxes for village operations and
14 that receives more than 60% of its general corporate revenue
15 from taxes under the Use Tax Act, the Service Use Tax Act,
16 the Service Occupation Tax Act, and the Retailers' Occupation
17 Tax Act agrees in writing to the requirements of this
18 Section.
19 For a village that does not levy any real property taxes
20 for village operations and that receives more than 60% of its
21 general corporate revenue from taxes under the Use Tax Act,
22 Service Use Tax Act, Service Occupation Tax Act, and
23 Retailers' Occupation Tax Act, the officers eligible to
24 receive information from the Department of Revenue under this
25 Section are the village manager and the chief financial
26 officer of the village.
27 Information so provided shall be subject to all
28 confidentiality provisions of this Section. The written
29 agreement shall provide for reciprocity, limitations on
30 access, disclosure, and procedures for requesting
31 information.
32 The Director may make available to any State agency,
33 including the Illinois Supreme Court, which licenses persons
34 to engage in any occupation, information that a person
SB856 Enrolled -106- LRB9000732KDcbA
1 licensed by such agency has failed to file returns under this
2 Act or pay the tax, penalty and interest shown therein, or
3 has failed to pay any final assessment of tax, penalty or
4 interest due under this Act. The Director may also make
5 available to the Secretary of State information that a
6 limited liability company, which has filed articles of
7 organization with the Secretary of State, or corporation
8 which has been issued a certificate of incorporation by the
9 Secretary of State has failed to file returns under this Act
10 or pay the tax, penalty and interest shown therein, or has
11 failed to pay any final assessment of tax, penalty or
12 interest due under this Act. An assessment is final when all
13 proceedings in court for review of such assessment have
14 terminated or the time for the taking thereof has expired
15 without such proceedings being instituted.
16 The Director shall make available for public inspection
17 in the Department's principal office and for publication, at
18 cost, administrative decisions issued on or after January 1,
19 1995. These decisions are to be made available in a manner so
20 that the following taxpayer information is not disclosed:
21 (1) The names, addresses, and identification
22 numbers of the taxpayer, related entities, and employees.
23 (2) At the sole discretion of the Director, trade
24 secrets or other confidential information identified as
25 such by the taxpayer, no later than 30 days after receipt
26 of an administrative decision, by such means as the
27 Department shall provide by rule.
28 The Director shall determine the appropriate extent of
29 the deletions allowed in paragraph (2). In the event the
30 taxpayer does not submit deletions, the Director shall make
31 only the deletions specified in paragraph (1).
32 The Director shall make available for public inspection
33 and publication an administrative decision within 180 days
34 after the issuance of the administrative decision. The term
SB856 Enrolled -107- LRB9000732KDcbA
1 "administrative decision" has the same meaning as defined in
2 Section 3-101 of Article III of the Code of Civil Procedure.
3 Costs collected under this Section shall be paid into the Tax
4 Compliance and Administration Fund.
5 Nothing contained in this Act shall prevent the Director
6 from divulging information to any person pursuant to a
7 request or authorization made by the taxpayer or by an
8 authorized representative of the taxpayer.
9 (Source: P.A. 88-480; 88-669, eff. 11-29-94; 89-89, eff.
10 6-30-95.)
11 Section 40. The Cigarette Tax Act is amended by changing
12 Sections 9d and 10b as follows:
13 (35 ILCS 130/9d) (from Ch. 120, par. 453.9d)
14 Sec. 9d. If it appears, after claim therefor filed with
15 the Department, that an amount of tax or penalty has been
16 paid which was not due under this Act, whether as the result
17 of a mistake of fact or an error of law, except as
18 hereinafter provided, then the Department shall issue a
19 credit memorandum or refund to the person who made the
20 erroneous payment or, if that person has died or become a
21 person under legal disability, to his or her legal
22 representative, as such.
23 If it is determined that the Department should issue a
24 credit or refund under this Act, the Department may first
25 apply the amount thereof against any amount of tax or penalty
26 due under this Act or under the Cigarette Use Tax Act from
27 the person entitled to such credit or refund. For this
28 purpose, if proceedings are pending to determine whether or
29 not any tax or penalty is due under this Act or under the
30 Cigarette Use Tax Act from such person, the Department may
31 withhold issuance of the credit or refund pending the final
32 disposition of such proceedings and may apply such credit or
SB856 Enrolled -108- LRB9000732KDcbA
1 refund against any amount found to be due to the Department
2 under this Act or under the Cigarette Use Tax Act as a result
3 of such proceedings. The balance, if any, of the credit or
4 refund shall be issued to the person entitled thereto.
5 If no tax or penalty is due and no proceeding is pending
6 to determine whether such taxpayer is indebted to the
7 Department for tax or penalty, the credit memorandum or
8 refund shall be issued to the claimant; or (in the case of a
9 credit memorandum) the credit memorandum may be assigned and
10 set over by the lawful holder thereof, subject to reasonable
11 rules of the Department, to any other person who is subject
12 to this Act or the Cigarette Use Tax Act, and the amount
13 thereof shall be applied by the Department against any tax or
14 penalty due or to become due under this Act or under the
15 Cigarette Use Tax Act from such assignee.
16 As to any claim filed hereunder with the Department on
17 and after each January 1 and July 1, no amount of tax or
18 penalty erroneously paid (either in total or partial
19 liquidation of a tax or penalty under this Act) more than 3
20 years prior to such January 1 and July 1, respectively, shall
21 be credited or refunded, except that if both the Department
22 and the taxpayer have agreed to an extension of time to issue
23 a notice of tax liability under this Act, the claim may be
24 filed at any time prior to the expiration of the period
25 agreed upon.
26 If the Department approves a claim for stamps affixed to
27 a product returned to a manufacturer or for replacement of
28 stamps, the credit memorandum shall not exceed the face value
29 of stamps originally affixed, and replacement stamps shall be
30 issued only in an amount equal to the value of the stamps
31 previously affixed. Higher denomination stamps shall not be
32 issued as replacements for lower value stamps. Distributors
33 must prove the face value of the stamps which have been
34 destroyed or returned to manufacturers when filing claims.
SB856 Enrolled -109- LRB9000732KDcbA
1 Any credit or refund that is allowed under this Act shall
2 bear interest at the rate and in the manner set forth in the
3 Uniform Penalty and Interest Act.
4 In case the Department determines that the claimant is
5 entitled to a refund, such refund shall be made only from
6 such appropriation as may be available for that purpose. If
7 it appears unlikely that the amount appropriated would permit
8 everyone having a claim allowed during the period covered by
9 such appropriation to elect to receive a cash refund, the
10 Department, by rule or regulation, shall provide for the
11 payment of refunds in hardship cases and shall define what
12 types of cases qualify as hardship cases.
13 If the Department approves a claim for the physical
14 replacement of cigarette tax stamps, the Department (subject
15 to the same limitations as those provided for hereinbefore in
16 this Section) may issue an assignable credit memorandum or
17 refund to the claimant or to the claimant's legal
18 representative.
19 The provisions of Sections 6a, 6b and 6c of the
20 Retailers' Occupation Tax Act which are not inconsistent with
21 this Act, shall apply, as far as practicable, to the subject
22 matter of this Act to the same extent as if such provisions
23 were included herein.
24 (Source: P.A. 87-205; 88-88.)
25 (35 ILCS 130/10b) (from Ch. 120, par. 453.10b)
26 Sec. 10b. All information received by the Department
27 from returns filed under this Act, or from any investigation
28 conducted under this Act, shall be confidential, except for
29 official purposes, and any person who divulges any such
30 information in any manner, except in accordance with a proper
31 judicial order or as otherwise provided by law, shall be
32 guilty of a Class A misdemeanor.
33 Nothing in this Act prevents the Director of Revenue from
SB856 Enrolled -110- LRB9000732KDcbA
1 publishing or making available to the public the names and
2 addresses of persons filing returns under this Act, or
3 reasonable statistics concerning the operation of the tax by
4 grouping the contents of returns so that the information in
5 any individual return is not disclosed.
6 Nothing in this Act prevents the Director of Revenue from
7 divulging to the United States Government or the government
8 of any other state, or any officer or agency thereof, for
9 exclusively official purposes, information received by the
10 Department in administering this Act, provided that such
11 other governmental agency agrees to divulge requested tax
12 information to the Department.
13 The furnishing upon request of the Auditor General, or
14 his authorized agents, for official use, of returns filed and
15 information related thereto under this Act is deemed to be an
16 official purpose within the meaning of this Section.
17 The furnishing of financial information to a home rule
18 unit with a population in excess of 2,000,000 that has
19 imposed a tax similar to that imposed by this Act under its
20 home rule powers, upon request of the Chief Executive of the
21 home rule unit, is an official purpose within the meaning of
22 this Section, provided the home rule unit agrees in writing
23 to the requirements of this Section. Information so provided
24 is subject to all confidentiality provisions of this Section.
25 The written agreement shall provide for reciprocity,
26 limitations on access, disclosure, and procedures for
27 requesting information.
28 The Director may make available to any State agency,
29 including the Illinois Supreme Court, which licenses persons
30 to engage in any occupation, information that a person
31 licensed by such agency has failed to file returns under this
32 Act or pay the tax, penalty and interest shown therein, or
33 has failed to pay any final assessment of tax, penalty or
34 interest due under this Act. An assessment is final when all
SB856 Enrolled -111- LRB9000732KDcbA
1 proceedings in court for review of such assessment have
2 terminated or the time for the taking thereof has expired
3 without such proceedings being instituted.
4 The Director shall make available for public inspection
5 in the Department's principal office and for publication, at
6 cost, administrative decisions issued on or after January 1,
7 1995. These decisions are to be made available in a manner so
8 that the following taxpayer information is not disclosed:
9 (1) The names, addresses, and identification
10 numbers of the taxpayer, related entities, and employees.
11 (2) At the sole discretion of the Director, trade
12 secrets or other confidential information identified as
13 such by the taxpayer, no later than 30 days after receipt
14 of an administrative decision, by such means as the
15 Department shall provide by rule.
16 The Director shall determine the appropriate extent of
17 the deletions allowed in paragraph (2). In the event the
18 taxpayer does not submit deletions, the Director shall make
19 only the deletions specified in paragraph (1).
20 The Director shall make available for public inspection
21 and publication an administrative decision within 180 days
22 after the issuance of the administrative decision. The term
23 "administrative decision" has the same meaning as defined in
24 Section 3-101 of Article III of the Code of Civil Procedure.
25 Costs collected under this Section shall be paid into the Tax
26 Compliance and Administration Fund.
27 Nothing contained in this Act shall prevent the Director
28 from divulging information to any person pursuant to a
29 request or authorization made by the taxpayer or by an
30 authorized representative of the taxpayer.
31 (Source: P.A. 88-669, eff. 11-29-94.)
32 Section 45. The Cigarette Use Tax Act is amended by
33 changing Sections 14a and 20 as follows:
SB856 Enrolled -112- LRB9000732KDcbA
1 (35 ILCS 135/14a) (from Ch. 120, par. 453.44a)
2 Sec. 14a. If it appears, after claim therefor filed with
3 the Department, that an amount of tax or penalty has been
4 paid which was not due under this Act, whether as the result
5 of a mistake of fact or an error of law, except as
6 hereinafter provided, then the Department shall issue a
7 credit memorandum or refund to the person who made the
8 erroneous payment or, if that person has died or become a
9 person under legal disability, to his or her legal
10 representative, as such.
11 If it is determined that the Department should issue a
12 credit or refund under this Act, the Department may first
13 apply the amount thereof against any amount of tax or penalty
14 due under this Act or under the Cigarette Tax Act from the
15 person entitled to such credit or refund. For this purpose,
16 if proceedings are pending to determine whether or not any
17 tax or penalty is due under this Act or under the Cigarette
18 Tax Act from such person, the Department may withhold
19 issuance of the credit or refund pending the final
20 disposition of such proceedings and may apply such credit or
21 refund against any amount found to be due to the Department
22 under this Act or under the Cigarette Tax Act as a result of
23 such proceedings. The balance, if any, of the credit or
24 refund shall be issued to the person entitled thereto.
25 If no tax or penalty is due and no proceeding is pending
26 to determine whether such taxpayer is indebted to the
27 Department for tax or penalty, the credit memorandum or
28 refund shall be issued to the claimant; or (in the case of a
29 credit memorandum) may be assigned and set over by the lawful
30 holder thereof, subject to reasonable rules of the
31 Department, to any other person who is subject to this Act or
32 the Cigarette Tax Act, and the amount thereof shall be
33 applied by the Department against any tax or penalty due or
34 to become due under this Act or under the Cigarette Tax Act
SB856 Enrolled -113- LRB9000732KDcbA
1 from such assignee.
2 As to any claim filed hereunder with the Department on
3 and after each January 1 and July 1, no amount of tax or
4 penalty erroneously paid (either in total or partial
5 liquidation of a tax or penalty under this Act) more than 3
6 years prior to such January 1 and July 1, respectively, shall
7 be credited or refunded, except that if both the Department
8 and the taxpayer have agreed to an extension of time to issue
9 a notice of tax liability under this Act, the claim may be
10 filed at any time prior to the expiration of the period
11 agreed upon.
12 In case the Department determines that the claimant is
13 entitled to a refund, such refund shall be made only from
14 such appropriation as may be available for that purpose. If
15 it appears unlikely that the amount appropriated would permit
16 everyone having a claim allowed during the period covered by
17 such appropriation to elect to receive a cash refund, the
18 Department, by rule or regulation, shall provide for the
19 payment of refunds in hardship cases and shall define what
20 types of cases qualify as hardship cases.
21 If the Department approves a claim for the physical
22 replacement of cigarette tax stamps, the Department (subject
23 to the same limitations as those provided for hereinbefore in
24 this Section) may issue an assignable credit memorandum or
25 refund to the claimant or to the claimant's legal
26 representative.
27 Any credit or refund that is allowed under this Act shall
28 bear interest at the rate and in the manner set forth in the
29 Uniform Penalty and Interest Act.
30 The provisions of Sections 6a, 6b and 6c of the
31 "Retailers' Occupation Tax Act", approved June 28, 1933, as
32 amended, in effect on the effective date of this amendatory
33 Act, as subsequently amended, which are not inconsistent with
34 this Act, shall apply, as far as practicable, to the subject
SB856 Enrolled -114- LRB9000732KDcbA
1 matter of this Act to the same extent as if such provisions
2 were included herein.
3 (Source: P.A. 83-706.)
4 (35 ILCS 135/20) (from Ch. 120, par. 453.50)
5 Sec. 20. All information received by the Department
6 from returns filed under this Act, or from any investigation
7 conducted under this Act, shall be confidential, except for
8 official purposes, and any person who divulges any such
9 information in any manner, except in accordance with a proper
10 judicial order or as otherwise provided by law, shall be
11 guilty of a Class A misdemeanor.
12 Nothing in this Act prevents the Director of Revenue from
13 publishing or making available to the public the names and
14 addresses of persons filing returns under this Act, or
15 reasonable statistics concerning the operation of the tax by
16 grouping the contents of returns so that the information in
17 any individual return is not disclosed.
18 Nothing in this Act prevents the Director of Revenue from
19 divulging to the United States Government or the government
20 of any other state, or any officer or agency thereof, for
21 exclusively official purposes, information received by the
22 Department in administering this Act, provided that such
23 other governmental agency agrees to divulge requested tax
24 information to the Department.
25 The furnishing upon request of the Auditor General, or
26 his authorized agents, for official use, of returns filed and
27 information related thereto under this Act is deemed to be an
28 official purpose within the meaning of this Section.
29 The furnishing of financial information to a home rule
30 unit with a population in excess of 2,000,000 that has
31 imposed a tax similar to that imposed by this Act under its
32 home rule powers, upon request of the Chief Executive of the
33 home rule unit, is an official purpose within the meaning of
SB856 Enrolled -115- LRB9000732KDcbA
1 this Section, provided the home rule unit agrees in writing
2 to the requirements of this Section. Information so provided
3 is subject to all confidentiality provisions of this Section.
4 The written agreement shall provide for reciprocity,
5 limitations on access, disclosure, and procedures for
6 requesting information.
7 The Director may make available to any State agency,
8 including the Illinois Supreme Court, which licenses persons
9 to engage in any occupation, information that a person
10 licensed by such agency has failed to file returns under this
11 Act or pay the tax, penalty and interest shown therein, or
12 has failed to pay any final assessment of tax, penalty or
13 interest due under this Act. An assessment is final when all
14 proceedings in court for review of such assessment have
15 terminated or the time for the taking thereof has expired
16 without such proceedings being instituted.
17 The Director shall make available for public inspection
18 in the Department's principal office and for publication, at
19 cost, administrative decisions issued on or after January 1,
20 1995. These decisions are to be made available in a manner so
21 that the following taxpayer information is not disclosed:
22 (1) The names, addresses, and identification
23 numbers of the taxpayer, related entities, and employees.
24 (2) At the sole discretion of the Director, trade
25 secrets or other confidential information identified as
26 such by the taxpayer, no later than 30 days after receipt
27 of an administrative decision, by such means as the
28 Department shall provide by rule.
29 The Director shall determine the appropriate extent of
30 the deletions allowed in paragraph (2). In the event the
31 taxpayer does not submit deletions, the Director shall make
32 only the deletions specified in paragraph (1).
33 The Director shall make available for public inspection
34 and publication an administrative decision within 180 days
SB856 Enrolled -116- LRB9000732KDcbA
1 after the issuance of the administrative decision. The term
2 "administrative decision" has the same meaning as defined in
3 Section 3-101 of Article III of the Code of Civil Procedure.
4 Costs collected under this Section shall be paid into the Tax
5 Compliance and Administration Fund.
6 Nothing contained in this Act shall prevent the Director
7 from divulging information to any person pursuant to a
8 request or authorization made by the taxpayer or by an
9 authorized representative of the taxpayer.
10 (Source: P.A. 88-669, eff. 11-29-94.)
11 Section 48. The Motor Fuel Tax Law is amended by
12 changing Sections 3, 3a, 3b, 3c, 13, and 13a.7 and adding
13 Section 13a.8 as follows:
14 (35 ILCS 505/3) (from Ch. 120, par. 419)
15 Sec. 3. No person shall act as a distributor of motor
16 fuel within this State without first securing a license to
17 act as a distributor of motor fuel from the Department.
18 Application for such license shall be made to the Department
19 upon blanks furnished by it. The application shall be signed
20 and verified, and shall contain such information as the
21 Department deems necessary. A blender shall, in addition to
22 securing a distributor's license, make application to the
23 Department for a blender's permit, setting forth in the
24 application such information as the Department deems
25 necessary. The applicant for a distributor's license shall
26 also file with the Department a bond on a form to be approved
27 by and with a surety or sureties satisfactory to the
28 Department conditioned upon such applicant paying to the
29 State of Illinois all monies becoming due by reason of the
30 sale or use of motor fuel by the applicant, together with all
31 penalties and interest thereon. The Department shall fix the
32 penalty of such bond in each case taking into consideration
SB856 Enrolled -117- LRB9000732KDcbA
1 the amount of motor fuel expected to be sold, distributed and
2 used by such applicant and the penalty fixed by the
3 Department shall be such, as in its opinion, will protect the
4 State of Illinois against failure to pay the amount
5 hereinafter provided on motor fuel sold, distributed and
6 used, but the amount of the penalty fixed by the Department
7 shall not exceed 2.1 times the amount of tax liability of a
8 monthly return; however, in no event shall the amount of such
9 penalty exceed $100,000 $40,001. Upon receipt of the
10 application and bond in proper form, the Department shall
11 issue to the applicant a license to act as a distributor. No
12 person who is in default to the State for monies due under
13 this Act for the sale, distribution or use of motor fuel
14 shall receive a license either directly or indirectly to act
15 as a distributor.
16 A license shall not be granted to any person whose
17 principal place of business is in a state other than
18 Illinois, unless such person is licensed for motor fuel
19 distribution in the state in which the principal place of
20 business is located and that such person is not in default to
21 that State for any monies due for the sale, distribution, or
22 use of motor fuel.
23 Notwithstanding his activities are not those of a
24 distributor as defined in Section 1.2 of this Act:
25 A. A person who as of July 1, 1957 holds a
26 distributor's license may continue in that capacity so
27 long as he continues to comply with obligations of a
28 distributor.
29 B. A person who in this State is engaged in the
30 distribution of motor fuel primarily by tank car or tank
31 truck, or both, and who operates an Illinois bulk plant
32 where he has active bulk storage capacity of not less
33 than 30,000 gallons for gasoline as defined in example
34 (A) in the second paragraph of Section 5 of this Act,
SB856 Enrolled -118- LRB9000732KDcbA
1 may, by application to the Department and compliance with
2 the requirements of this Section, obtain a distributor's
3 license, and when so licensed shall be subject to all the
4 obligations and have all the rights and privileges of a
5 distributor under this Act.
6 (Source: P.A. 87-149.)
7 (35 ILCS 505/3a) (from Ch. 120, par. 419a)
8 Sec. 3a. No person, other than a licensed distributor,
9 shall act as a supplier of special fuel within this State
10 without first securing a license to act as a supplier of
11 special fuel from the Department.
12 Application for such license shall be made to the
13 Department upon blanks furnished by it. The application shall
14 be signed and verified and shall contain such information as
15 the Department deems necessary.
16 The applicant for a supplier's license shall also file,
17 with the Department, a bond on a form to be approved by and
18 with a surety or sureties satisfactory to the Department,
19 conditioned upon such applicant paying to the State of
20 Illinois all moneys becoming due by reason of the sale or use
21 of special fuel by the applicant, together with all penalties
22 and interest thereon. The Department shall fix the penalty of
23 such bond in each case, taking into consideration the amount
24 of special fuel expected to be sold, distributed and used by
25 such applicant, and the penalty fixed by the Department shall
26 be such, as in its opinion, will protect the State of
27 Illinois against failure to pay the amount hereinafter
28 provided on special fuel sold, distributed and used, but the
29 amount of the penalty fixed by the Department shall not
30 exceed twice the amount of tax liability of a monthly return;
31 however, in no event shall the amount exceed $100,000
32 $40,001.
33 Upon receipt of the application and bond in proper form,
SB856 Enrolled -119- LRB9000732KDcbA
1 the Department shall issue to the applicant a license to act
2 as a supplier. No person who is in default to the State for
3 moneys due under this Act for the sale, distribution or use
4 of motor fuel shall receive a license either directly or
5 indirectly to act as a supplier.
6 A license shall not be granted to any person whose
7 principal place of business is in a state other than
8 Illinois, unless such person is licensed for motor fuel
9 distribution in the State in which the principal place of
10 business is located and that other State requires such
11 license and that such person is not in default to that State
12 for any monies due for the sale, distribution, or use of
13 motor fuel.
14 (Source: P.A. 87-149.)
15 (35 ILCS 505/3b) (from Ch. 120, par. 419b)
16 Sec. 3b. No person other than a licensed distributor or
17 licensed supplier shall act as a bulk user of special fuel
18 within this State without first securing a license to act as
19 a bulk user of special fuel from the Department.
20 Application for such license shall be made to the
21 Department upon blanks furnished by it. The application shall
22 be signed and verified and shall contain such information as
23 the Department deems necessary.
24 If the bulk user will not be buying all special fuel
25 tax-paid under this Act, but will be making any special fuel
26 purchases at all without paying the tax that is imposed by
27 this Act to his vendor, such applicant for a bulk user's
28 license shall also file, with the Department, a bond on a
29 form to be approved by and with a surety or sureties
30 satisfactory to the Department, conditioned upon such
31 applicant paying to the State of Illinois all moneys becoming
32 due by reason of use of special fuel by the applicant,
33 together with all penalties and interest thereon. If the
SB856 Enrolled -120- LRB9000732KDcbA
1 bulk user will be purchasing any special fuel without paying
2 the tax, the bulk user shall also obtain a permit from the
3 Department to do so. The Department shall fix the penalty of
4 such bond in each case, taking into consideration the amount
5 of special fuel expected to be used by such applicant, and
6 the penalty fixed by the Department shall be such, as in its
7 opinion, will protect the State of Illinois against failure
8 to pay the amount hereinafter provided on special fuel used,
9 but the amount of the penalty fixed by the Department shall
10 not exceed twice the amount of tax liability on tax-free fuel
11 expected to be used by the bulk user annually; however, in no
12 event shall the amount of such penalty exceed $100,000
13 $40,001.
14 Upon receipt of the application and bond in proper form,
15 the Department shall issue to the applicant a license to act
16 as a bulk user. No person who is in default to the State for
17 moneys due under this Act for the sale, distribution or use
18 of motor fuel shall receive a license either directly or
19 indirectly to act as a bulk user.
20 (Source: P.A. 87-149.)
21 (35 ILCS 505/3c) (from Ch. 120, par. 419b.1)
22 Sec. 3c. No person shall act as a receiver of fuel
23 within this State without first securing a license from the
24 Department to act as a receiver of fuel.
25 Application for such license shall be made to the
26 Department upon blanks furnished by it. The application
27 shall be signed and verified, and shall contain such
28 information as the Department deems necessary. The applicant
29 for a receiver's license shall also file with the Department
30 a bond on a form to be approved by and with a surety or
31 sureties satisfactory to the Department conditioned upon such
32 applicant paying to the State of Illinois all monies becoming
33 due by reason of the receipt of fuel by the applicant,
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1 together with all penalties and interest thereon. The
2 Department shall fix the penalty of such bond in each case
3 taking into consideration the amount of fuel expected to be
4 sold, distributed and used by such applicant and the penalty
5 fixed by the Department shall be such, as in its opinion,
6 will protect the State of Illinois against failure to pay the
7 tax imposed by Section 2a on fuel received in this State, but
8 the amount of the penalty fixed by the Department shall not
9 exceed twice the amount of tax liability of a monthly return;
10 however, in no event shall the amount exceed $100,000
11 $40,001.
12 Upon receipt of the application and bond in proper form,
13 the Department shall issue to the applicant a license to act
14 as a receiver. No person who is in default to the State for
15 monies due under this Act for the receipt, sale, distribution
16 or use of fuel or motor fuel shall receive a license either
17 directly or indirectly to act as a receiver.
18 (Source: P.A. 86-125; 86-958.)
19 (35 ILCS 505/13) (from Ch. 120, par. 429)
20 Sec. 13. Any person other than a distributor or
21 supplier, who loses motor fuel through any cause or uses
22 motor fuel (upon which he has paid the amount required to be
23 collected under Section 2 of this Act) for any purpose other
24 than operating a motor vehicle upon the public highways or
25 waters, shall be reimbursed and repaid the amount so paid.
26 Any person who purchases motor fuel in Illinois and uses
27 that motor fuel in another state and that other state imposes
28 a tax on the use of such motor fuel shall be reimbursed and
29 repaid the amount of Illinois tax paid under Section 2 of
30 this Act on the motor fuel used in such other state.
31 Reimbursement and repayment shall be made by the Department
32 upon receipt of adequate proof of taxes paid to another state
33 and the amount of motor fuel used in that state.
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1 Claims for such reimbursement must be made to the
2 Department of Revenue, duly verified by the affidavit of the
3 claimant (or by the claimant's legal representative if the
4 claimant has died or become a person under legal disability),
5 upon forms prescribed by the Department. The claim must
6 state such facts relating to the purchase, importation,
7 manufacture or production of the motor fuel by the claimant
8 as the Department may deem necessary, and the time when, and
9 the circumstances of its loss or the specific purpose for
10 which it was used (as the case may be), together with such
11 other information as the Department may reasonably require.
12 No claim based upon idle time shall be allowed. Claims for
13 full reimbursement must be filed not later than one year
14 after the date on which the tax was paid by the claimant.
15 If, however, a claim for such reimbursement otherwise
16 meeting the requirements of this Section is filed more than
17 one year but less than 2 years after that date, the claimant
18 shall be reimbursed at the rate of 80% of the amount to which
19 he would have been entitled if his claim had been timely
20 filed.
21 The Department may make such investigation of the
22 correctness of the facts stated in such claims as it deems
23 necessary. When the Department has approved any such claim,
24 it shall pay to the claimant (or to the claimant's legal
25 representative, as such if the claimant has died or become a
26 person under legal disability) the reimbursement provided in
27 this Section, out of any moneys appropriated to it for that
28 purpose.
29 Any receiver who has paid the tax imposed by Section 2a
30 of this Act (either directly to the Department or to another
31 licensed receiver) upon fuel exported or sold under the
32 exemptions provided in Section 2a may file a claim for credit
33 to recover the amount so paid. Such claims shall be made to
34 the Department, duly verified by the affidavit of the
SB856 Enrolled -123- LRB9000732KDcbA
1 claimant (or by the claimant's legal representative if the
2 claimant has died or become a person under legal disability),
3 upon forms prescribed by the Department. The claim shall
4 state such facts relating to the purchase, importation,
5 manufacture, production, export, or sale of the fuel by the
6 claimant as the Department may deem necessary together with
7 such other information as the Department may reasonably
8 require. Claims must be filed not later than one year after
9 the date on which the tax was paid by the claimant. The
10 Department may make such investigation of the correctness of
11 the facts stated in such claims as it deems necessary. When
12 the Department approves a claim, the Department shall issue a
13 credit memorandum to the receiver who made the payment for
14 which the credit is being given or, if the receiver has died
15 or become incompetent, to such receiver's legal
16 representative. The amount of such credit memorandum shall be
17 credited against any tax due or to become due under this Act
18 from the receiver who made the payment for which credit has
19 been given.
20 Any distributor or supplier who has paid the tax imposed
21 by Section 2 of this Act upon motor fuel lost or used by such
22 distributor or supplier for any purpose other than operating
23 a motor vehicle upon the public highways or waters may file a
24 claim for credit or refund to recover the amount so paid.
25 Such claims shall be filed on forms prescribed by the
26 Department. Such claims shall be made to the Department,
27 duly verified by the affidavit of the claimant (or by the
28 claimant's legal representative if the claimant has died or
29 become a person under legal disability), upon forms
30 prescribed by the Department. The claim shall state such
31 facts relating to the purchase, importation, manufacture or
32 production of the motor fuel by the claimant as the
33 Department may deem necessary and the time when the loss or
34 nontaxable use occurred, and the circumstances of its loss or
SB856 Enrolled -124- LRB9000732KDcbA
1 the specific purpose for which it was used (as the case may
2 be), together with such other information as the Department
3 may reasonably require. Claims must be filed not later than
4 one year after the date on which the tax was paid by the
5 claimant.
6 The Department may make such investigation of the
7 correctness of the facts stated in such claims as it deems
8 necessary. When the Department approves a claim, the
9 Department shall issue a refund or credit memorandum as
10 requested by the taxpayer, to the distributor or supplier who
11 made the payment for which the refund or credit is being
12 given or, if the distributor or supplier has died or become
13 incompetent, to such distributor's or supplier's legal
14 representative, as such. The amount of such credit
15 memorandum shall be credited against any tax due or to become
16 due under this Act from the distributor or supplier who made
17 the payment for which credit has been given.
18 Any credit or refund that is allowed under this Section
19 shall bear interest at the rate and in the manner specified
20 in the Uniform Penalty and Interest Act.
21 In case the distributor, receiver, or supplier requests
22 and the Department determines that the claimant is entitled
23 to a refund, such refund shall be made only from such
24 appropriation as may be available for that purpose. If it
25 appears unlikely that the amount appropriated would permit
26 everyone having a claim allowed during the period covered by
27 such appropriation to elect to receive a cash refund, the
28 Department, by rule or regulation, shall provide for the
29 payment of refunds in hardship cases and shall define what
30 types of cases qualify as hardship cases.
31 If no tax is due and no proceeding is pending to
32 determine whether such distributor, receiver, or supplier is
33 indebted to the Department for tax, the credit memorandum so
34 issued may be assigned and set over by the lawful holder
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1 thereof, subject to reasonable rules of the Department, to
2 any other licensed distributor, receiver, or supplier who is
3 subject to this Act, and the amount thereof applied by the
4 Department against any tax due or to become due under this
5 Act from such assignee.
6 If the payment for which the distributor's, receiver's,
7 or supplier's claim is filed is held in the protest fund of
8 the State Treasury during the pendency of the claim for
9 credit proceedings pursuant to the order of the court in
10 accordance with Section 2a of the State Officers and
11 Employees Money Disposition Act "An Act in relation to the
12 payment and disposition of moneys received by officers and
13 employees of the State of Illinois by virtue of their office
14 or employment", approved June 9, 1911, and if it is
15 determined by the Department or by the final order of a
16 reviewing court under the Administrative Review Law that the
17 claimant is entitled to all or a part of the credit claimed,
18 the claimant, instead of receiving a credit memorandum from
19 the Department, shall receive a cash refund from the protest
20 fund as provided for in Section 2a of the State Officers and
21 Employees Money Disposition Act "An Act in relation to the
22 payment and disposition of moneys received by officers and
23 employees of the State of Illinois by virtue of their office
24 or employment".
25 If any person ceases to be licensed as a distributor,
26 receiver, or supplier while still holding an unused credit
27 memorandum issued under this Act, such person may, at his
28 election (instead of assigning the credit memorandum to a
29 licensed distributor, licensed receiver, or licensed supplier
30 under this Act), surrender such unused credit memorandum to
31 the Department and receive a refund of the amount to which
32 such person is entitled.
33 (Source: P.A. 87-205; 88-480.)
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1 (35 ILCS 505/13a.7) (from Ch. 120, par. 429a7)
2 Sec. 13a.7. Notwithstanding the provisions for credit
3 memoranda, credits or refunds contained in Section 13a.3 of
4 this Act, no credit memorandum, credit or refund shall be
5 allowed or made based upon a return filed more than 4 years
6 one year after the due date of the such return or the date
7 the return is filed, whichever is later.
8 (Source: P.A. 85-293.)
9 (35 ILCS 505/13a.8 new)
10 Sec. 13a.8. Any receiver who has paid the tax imposed by
11 Section 2a of this Law (either directly to the Department or
12 to another licensed receiver) upon fuel exported or sold
13 under the exemptions provided in Section 2a may file a claim
14 for credit to recover the amount so paid. The claims shall
15 be made to the Department, duly verified by the claimant (or
16 by the claimant's legal representative if the claimant has
17 died or become a person under legal disability), upon forms
18 prescribed by the Department. The claim shall state such
19 facts relating to the purchase, importation, manufacture,
20 production, export, or sale of the fuel by the claimant as
21 the Department may deem necessary together with such other
22 information as the Department may reasonably require. The
23 Department may investigate the correctness of the facts
24 stated in the claims as it deems necessary. When the
25 Department approves a claim, the Department shall issue a
26 credit memorandum to the receiver who made the payment for
27 which the credit is being given or, if the receiver has died
28 or become incompetent, to the receiver's legal
29 representative. The amount of the credit memorandum shall be
30 credited against any tax due or to become due under this Act
31 from the receiver who made the payment for which credit has
32 been given.
33 Any credit or refund that is allowed under this Section
SB856 Enrolled -127- LRB9000732KDcbA
1 shall bear interest at the rate and in the manner specified
2 in the Uniform Penalty and Interest Act.
3 In case the receiver requests and the Department
4 determines that the claimant is entitled to a refund, the
5 refund shall be made only from such appropriation as may be
6 available for that purpose. If it appears unlikely that the
7 amount appropriated would permit everyone having a claim
8 allowed during the period covered by such appropriation to
9 elect to receive a cash refund, the Department, by rule or
10 regulation, shall provide for the payment of refunds in
11 hardship cases and shall define what types of cases qualify
12 as hardship cases.
13 If no tax is due and no proceeding is pending to
14 determine whether the receiver is indebted to the Department
15 for tax, the credit memorandum issued may be assigned and set
16 over by the lawful holder thereof, subject to reasonable
17 rules of the Department, to any other licensed receiver who
18 is subject to this Act, and the amount thereof applied by the
19 Department against any tax due or to become due under this
20 Act from such assignee.
21 If the payment for which the receiver's claim is filed is
22 held in the protest fund of the State Treasury during the
23 pendency of the claim for credit proceedings under an order
24 of the court in accordance with Section 2a of the State
25 Officers and Employees Money Disposition Act and if it is
26 determined by the Department or by the final order of a
27 reviewing court under the Administrative Review Law that the
28 claimant is entitled to all or a part of the credit claimed,
29 the claimant, instead of receiving a credit memorandum from
30 the Department, shall receive a cash refund from the protest
31 fund as provided for in Section 2a of the State Officers and
32 Employees Money Disposition Act.
33 If any person ceases to be licensed as a receiver while
34 still holding an unused credit memorandum issued under this
SB856 Enrolled -128- LRB9000732KDcbA
1 Act, that person may, at his or her election (instead of
2 assigning the credit memorandum to a licensed receiver under
3 this Act), surrender the unused credit memorandum to the
4 Department and receive a refund of the amount to which such
5 person is entitled.
6 Section 50. The Messages Tax Act is amended by changing
7 Sections 5, 6, and 11 as follows:
8 (35 ILCS 610/5) (from Ch. 120, par. 467.5)
9 Sec. 5. All of the provisions of Sections 4, 5, 5a, 5b,
10 5c, 5d, 5e, 5f, 5g, 5i, and 5j, 6b, and 6c of the Retailers'
11 Occupation Tax Act which are not inconsistent with this Act,
12 and Section 3-7 of the Uniform Penalty and Interest Act shall
13 apply, as far as practicable, to the subject matter of this
14 Act to the same extent as if such provisions were included
15 herein. References in such incorporated Sections of the
16 Retailers' Occupation Tax Act to retailers, to sellers or to
17 persons engaged in the business of selling tangible personal
18 property mean persons engaged in the business of transmitting
19 messages when used in this Act. References in such
20 incorporated Sections of the Retailers' Occupation Tax Act to
21 purchasers of tangible personal property mean purchasers of
22 the service of transmitting messages when used in this Act.
23 References in such incorporated Sections of the Retailers'
24 Occupation Tax Act to sales of tangible personal property
25 mean the transmitting of messages when used in this Act.
26 (Source: P.A. 87-205.)
27 (35 ILCS 610/6) (from Ch. 120, par. 467.6)
28 Sec. 6. If it appears, after claim therefor filed with
29 the Department, that an amount of tax or penalty or interest
30 has been paid which was not due under this Act, whether as
31 the result of a mistake of fact or an error of law, except as
SB856 Enrolled -129- LRB9000732KDcbA
1 hereinafter provided, then the Department shall issue a
2 credit memorandum or refund to the person who made the
3 erroneous payment or, if that person has died or become a
4 person under legal disability, to his or her legal
5 representative, as such.
6 If it is determined that the Department should issue a
7 credit or refund under this Act, the Department may first
8 apply the amount thereof against any amount of tax or penalty
9 or interest due hereunder from the person entitled to such
10 credit or refund. For this purpose, if proceedings are
11 pending to determine whether or not any tax or penalty or
12 interest is due under this Act from such person, the
13 Department may withhold issuance of the credit or refund
14 pending the final disposition of such proceedings and may
15 apply such credit or refund against any amount found to be
16 due to the Department as a result of such proceedings. The
17 balance, if any, of the credit or refund shall be issued to
18 the person entitled thereto.
19 If no tax or penalty or interest is due and no proceeding
20 is pending to determine whether such person is indebted to
21 the Department for tax or penalty or interest, the credit
22 memorandum or refund shall be issued to the claimant; or (in
23 the case of a credit memorandum) the credit memorandum may be
24 assigned and set over by the lawful holder thereof, subject
25 to reasonable rules of the Department, to any other person
26 who is subject to this Act, and the amount thereof shall be
27 applied by the Department against any tax or penalty or
28 interest due or to become due under this Act from such
29 assignee.
30 As to any claim for credit or refund filed with the
31 Department on or after each January 1 and July 1, no amounts
32 erroneously paid more than 3 years prior to such January 1
33 and July 1, respectively, shall be credited or refunded,
34 except that if both the Department and the taxpayer have
SB856 Enrolled -130- LRB9000732KDcbA
1 agreed to an extension of time to issue a notice of tax
2 liability under this Act, the claim may be filed at any time
3 prior to the expiration of the period agreed upon.
4 Claims for credit or refund shall be filed upon forms
5 provided by the Department. As soon as practicable after any
6 claim for credit or refund is filed, the Department shall
7 examine the same and determine the amount of credit or refund
8 to which the claimant is entitled and shall notify the
9 claimant of such determination, which amount shall be prima
10 facie correct.
11 Any credit or refund that is allowed under this Act shall
12 bear interest at the rate and in the manner specified in the
13 Uniform Penalty and Interest Act.
14 In case the Department determines that the claimant is
15 entitled to a refund, such refund shall be made only from
16 such appropriation as may be available for that purpose. If
17 it appears unlikely that the amount appropriated would permit
18 everyone having a claim allowed during the period covered by
19 such appropriation to elect to receive a cash refund, the
20 Department, by rule or regulation, shall provide for the
21 payment of refunds in hardship cases and shall define what
22 types of cases qualify as hardship cases.
23 (Source: P.A. 87-205.)
24 (35 ILCS 610/11) (from Ch. 120, par. 467.11)
25 Sec. 11. All information received by the Department from
26 returns filed under this Act, or from any investigations
27 conducted under this Act, shall be confidential, except for
28 official purposes, and any person who divulges any such
29 information in any manner, except in accordance with a proper
30 judicial order or as otherwise provided by law, shall be
31 guilty of a Class B misdemeanor.
32 Provided, that nothing contained in this Act shall
33 prevent the Director from publishing or making available to
SB856 Enrolled -131- LRB9000732KDcbA
1 the public the names and addresses of taxpayers filing
2 returns under this Act, or from publishing or making
3 available reasonable statistics concerning the operation of
4 the tax wherein the contents of returns are grouped into
5 aggregates in such a way that the information contained in
6 any individual return shall not be disclosed.
7 And provided, that nothing contained in this Act shall
8 prevent the Director from making available to the United
9 States Government or any officer or agency thereof, for
10 exclusively official purposes, information received by the
11 Department in the administration of this Act.
12 The furnishing upon request of the Auditor General, or
13 his authorized agents, for official use, of returns filed and
14 information related thereto under this Act is deemed to be an
15 official purpose within the meaning of this Section.
16 The Director may make available to any State agency,
17 including the Illinois Supreme Court, which licenses persons
18 to engage in any occupation, information that a person
19 licensed by such agency has failed to file returns under this
20 Act or pay the tax, penalty and interest shown therein, or
21 has failed to pay any final assessment of tax, penalty or
22 interest due under this Act. An assessment is final when all
23 proceedings in court for review of such assessment have
24 terminated or the time for the taking thereof has expired
25 without such proceedings being instituted.
26 The Director shall make available for public inspection
27 in the Department's principal office and for publication, at
28 cost, administrative decisions issued on or after January 1,
29 1995. These decisions are to be made available in a manner so
30 that the following taxpayer information is not disclosed:
31 (1) The names, addresses, and identification
32 numbers of the taxpayer, related entities, and employees.
33 (2) At the sole discretion of the Director, trade
34 secrets or other confidential information identified as
SB856 Enrolled -132- LRB9000732KDcbA
1 such by the taxpayer, no later than 30 days after receipt
2 of an administrative decision, by such means as the
3 Department shall provide by rule.
4 The Director shall determine the appropriate extent of
5 the deletions allowed in paragraph (2). In the event the
6 taxpayer does not submit deletions, the Director shall make
7 only the deletions specified in paragraph (1).
8 The Director shall make available for public inspection
9 and publication an administrative decision within 180 days
10 after the issuance of the administrative decision. The term
11 "administrative decision" has the same meaning as defined in
12 Section 3-101 of Article III of the Code of Civil Procedure.
13 Costs collected under this Section shall be paid into the Tax
14 Compliance and Administration Fund.
15 Nothing contained in this Act shall prevent the Director
16 from divulging information to any person pursuant to a
17 request or authorization made by the taxpayer or by an
18 authorized representative of the taxpayer.
19 (Source: P.A. 88-669, eff. 11-29-94.)
20 Section 55. The Gas Revenue Tax Act is amended by
21 changing Sections 5, 6, and 11 as follows:
22 (35 ILCS 615/5) (from Ch. 120, par. 467.20)
23 Sec. 5. All of the provisions of Sections 4, 5, 5a, 5b,
24 5c, 5d, 5e, 5f, 5g, 5i, and 5j, 6b, and 6c of the Retailers'
25 Occupation Tax Act which are not inconsistent with this Act,
26 and Section 3-7 of the Uniform Penalty and Interest Act shall
27 apply, as far as practicable, to the subject matter of this
28 Act to the same extent as if such provisions were included
29 herein. References in such incorporated Sections of the
30 Retailers' Occupation Tax Act to retailers, to sellers or to
31 persons engaged in the business of selling tangible personal
32 property mean persons engaged in the business of
SB856 Enrolled -133- LRB9000732KDcbA
1 distributing, supplying, furnishing or selling gas when used
2 in this Act. References in such incorporated Sections of the
3 Retailers' Occupation Tax Act to purchasers of tangible
4 personal property mean purchasers of gas when used in this
5 Act. References in such incorporated Sections of the
6 Retailers' Occupation Tax Act to sales of tangible personal
7 property mean the distributing, supplying, furnishing or
8 selling of gas when used in this Act.
9 (Source: P.A. 87-205.)
10 (35 ILCS 615/6) (from Ch. 120, par. 467.21)
11 Sec. 6. If it appears, after claim therefor filed with
12 the Department, that an amount of tax or penalty or interest
13 has been paid which was not due under this Act, whether as
14 the result of a mistake of fact or an error of law, except as
15 hereinafter provided, then the Department shall issue a
16 credit memorandum or refund to the person who made the
17 erroneous payment or, if that person has died or become a
18 person under legal disability, to his or her legal
19 representative, as such.
20 If it is determined that the Department should issue a
21 credit or refund under this Act, the Department may first
22 apply the amount thereof against any amount of tax or penalty
23 or interest due hereunder from the person entitled to such
24 credit or refund. For this purpose, if proceedings are
25 pending to determine whether or not any tax or penalty or
26 interest is due under this Act from such person, the
27 Department may withhold issuance of the credit or refund
28 pending the final disposition of such proceedings and may
29 apply such credit or refund against any amount found to be
30 due to the Department as a result of such proceedings. The
31 balance, if any, of the credit or refund shall be issued to
32 the person entitled thereto.
33 If no tax or penalty or interest is due and no proceeding
SB856 Enrolled -134- LRB9000732KDcbA
1 is pending to determine whether such person is indebted to
2 the Department for tax or penalty or interest, the credit
3 memorandum or refund shall be issued to the claimant; or (in
4 the case of a credit memorandum) the credit memorandum may be
5 assigned and set over by the lawful holder thereof, subject
6 to reasonable rules of the Department, to any other person
7 who is subject to this Act, and the amount thereof shall be
8 applied by the Department against any tax or penalty or
9 interest due or to become due under this Act from such
10 assignee.
11 As to any claim for credit or refund filed with the
12 Department on or after each January 1 and July 1, no amounts
13 erroneously paid more than 3 years prior to such January 1
14 and July 1, respectively, shall be credited or refunded,
15 except that if both the Department and the taxpayer have
16 agreed to an extension of time to issue a notice of tax
17 liability under this Act, the claim may be filed at any time
18 prior to the expiration of the period agreed upon.
19 Claims for credit or refund shall be filed upon forms
20 provided by the Department. As soon as practicable after any
21 claim for credit or refund is filed, the Department shall
22 examine the same and determine the amount of credit or refund
23 to which the claimant is entitled and shall notify the
24 claimant of such determination, which amount shall be prima
25 facie correct.
26 Any credit or refund that is allowed under this Act shall
27 bear interest at the rate and in the manner specified in the
28 Uniform Penalty and Interest Act.
29 In case the Department determines that the claimant is
30 entitled to a refund, such refund shall be made only from
31 such appropriation as may be available for that purpose. If
32 it appears unlikely that the amount appropriated would permit
33 everyone having a claim allowed during the period covered by
34 such appropriation to elect to receive a cash refund, the
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1 Department, by rule or regulation, shall provide for the
2 payment of refunds in hardship cases and shall define what
3 types of cases qualify as hardship cases.
4 (Source: P.A. 87-205.)
5 (35 ILCS 615/11) (from Ch. 120, par. 467.26)
6 Sec. 11. All information received by the Department from
7 returns filed under this Act, or from any investigations
8 conducted under this Act, shall be confidential, except for
9 official purposes, and any person who divulges any such
10 information in any manner, except in accordance with a proper
11 judicial order or as otherwise provided by law, shall be
12 guilty of a Class B misdemeanor.
13 Provided, that nothing contained in this Act shall
14 prevent the Director from publishing or making available to
15 the public the names and addresses of taxpayers filing
16 returns under this Act, or from publishing or making
17 available reasonable statistics concerning the operation of
18 the tax wherein the contents of returns are grouped into
19 aggregates in such a way that the information contained in
20 any individual return shall not be disclosed.
21 And provided, that nothing contained in this Act shall
22 prevent the Director from making available to the United
23 States Government or any officer or agency thereof, for
24 exclusively official purposes, information received by the
25 Department in the administration of this Act.
26 The furnishing upon request of the Auditor General, or
27 his authorized agents, for official use, of returns filed and
28 information related thereto under this Act is deemed to be an
29 official purpose within the meaning of this Section.
30 The Director may make available to any State agency,
31 including the Illinois Supreme Court, which licenses persons
32 to engage in any occupation, information that a person
33 licensed by such agency has failed to file returns under this
SB856 Enrolled -136- LRB9000732KDcbA
1 Act or pay the tax, penalty and interest shown therein, or
2 has failed to pay any final assessment of tax, penalty or
3 interest due under this Act. An assessment is final when all
4 proceedings in court for review of such assessment have
5 terminated or the time for the taking thereof has expired
6 without such proceedings being instituted.
7 The Director shall make available for public inspection
8 in the Department's principal office and for publication, at
9 cost, administrative decisions issued on or after January 1,
10 1995. These decisions are to be made available in a manner so
11 that the following taxpayer information is not disclosed:
12 (1) The names, addresses, and identification
13 numbers of the taxpayer, related entities, and employees.
14 (2) At the sole discretion of the Director, trade
15 secrets or other confidential information identified as
16 such by the taxpayer, no later than 30 days after receipt
17 of an administrative decision, by such means as the
18 Department shall provide by rule.
19 The Director shall determine the appropriate extent of
20 the deletions allowed in paragraph (2). In the event the
21 taxpayer does not submit deletions, the Director shall make
22 only the deletions specified in paragraph (1).
23 The Director shall make available for public inspection
24 and publication an administrative decision within 180 days
25 after the issuance of the administrative decision. The term
26 "administrative decision" has the same meaning as defined in
27 Section 3-101 of Article III of the Code of Civil Procedure.
28 Costs collected under this Section shall be paid into the Tax
29 Compliance and Administration Fund.
30 Nothing contained in this Act shall prevent the Director
31 from divulging information to any person pursuant to a
32 request or authorization made by the taxpayer or by an
33 authorized representative of the taxpayer.
34 (Source: P.A. 88-669, eff. 11-29-94.)
SB856 Enrolled -137- LRB9000732KDcbA
1 Section 60. The Public Utilities Revenue Act is amended
2 by changing Sections 5, 6, and 11 as follows:
3 (35 ILCS 620/5) (from Ch. 120, par. 472)
4 Sec. 5. All of the provisions of Sections 4, 5, 5a, 5b,
5 5c, 5d, 5e, 5f, 5g, 5i, and 5j, 6b, and 6c of the Retailers'
6 Occupation Tax Act, which are not inconsistent with this Act,
7 and Section 3-7 of the Uniform Penalty and Interest Act shall
8 apply, as far as practicable, to the subject matter of this
9 Act to the same extent as if such provisions were included
10 herein. References in such incorporated Sections of the
11 Retailers' Occupation Tax Act to retailers, to sellers or to
12 persons engaged in the business of selling tangible personal
13 property mean persons engaged in the business of
14 distributing, supplying, furnishing or selling electricity
15 when used in this Act. References in such incorporated
16 Sections of the Retailers' Occupation Tax Act to purchasers
17 of tangible personal property mean purchasers of electricity
18 when used in this Act. References in such incorporated
19 Sections of the Retailers' Occupation Tax Act to sales of
20 tangible personal property mean the distributing, supplying,
21 furnishing or selling of electricity when used in this Act.
22 (Source: P.A. 87-205.)
23 (35 ILCS 620/6) (from Ch. 120, par. 473)
24 Sec. 6. If it appears, after claim therefor filed with
25 the Department, that an amount of tax or penalty or interest
26 has been paid which was not due under this Act, whether as
27 the result of a mistake of fact or an error of law, except as
28 hereinafter provided, then the Department shall issue a
29 credit memorandum or refund to the person who made the
30 erroneous payment or, if that person has died or become a
31 person under legal disability, to his or her legal
32 representative, as such.
SB856 Enrolled -138- LRB9000732KDcbA
1 If it is determined that the Department should issue a
2 credit or refund under this Act, the Department may first
3 apply the amount thereof against any amount of tax or penalty
4 or interest due hereunder from the person entitled to such
5 credit or refund. For this purpose, if proceedings are
6 pending to determine whether or not any tax or penalty or
7 interest is due under this Act from such person, the
8 Department may withhold issuance of the credit or refund
9 pending the final disposition of such proceedings and may
10 apply such credit or refund against any amount found to be
11 due to the Department as a result of such proceedings. The
12 balance, if any, of the credit or refund shall be issued to
13 the person entitled thereto.
14 If no tax or penalty or interest is due and no proceeding
15 is pending to determine whether such person is indebted to
16 the Department for tax or penalty or interest, the credit
17 memorandum or refund shall be issued to the claimant; or (in
18 the case of a credit memorandum) the credit memorandum may be
19 assigned and set over by the lawful holder thereof, subject
20 to reasonable rules of the Department, to any other person
21 who is subject to this Act, and the amount thereof shall be
22 applied by the Department against any tax or penalty or
23 interest due or to become due under this Act from such
24 assignee.
25 As to any claim for credit or refund filed with the
26 Department on or after each January 1 and July 1, no amounts
27 erroneously paid more than 3 years prior to such January 1
28 and July 1, respectively, shall be credited or refunded,
29 except that if both the Department and the taxpayer have
30 agreed to an extension of time to issue a notice of tax
31 liability under this Act, the claim may be filed at any time
32 prior to the expiration of the period agreed upon.
33 Claims for credit or refund shall be filed upon forms
34 provided by the Department. As soon as practicable after any
SB856 Enrolled -139- LRB9000732KDcbA
1 claim for credit or refund is filed, the Department shall
2 examine the same and determine the amount of credit or refund
3 to which the claimant is entitled and shall notify the
4 claimant of such determination, which amount shall be prima
5 facie correct.
6 Any credit or refund that is allowed under this Act shall
7 bear interest at the rate and in the manner specified in the
8 Uniform Penalty and Interest Act.
9 In case the Department determines that the claimant is
10 entitled to a refund, such refund shall be made only from
11 such appropriation as may be available for that purpose. If
12 it appears unlikely that the amount appropriated would permit
13 everyone having a claim allowed during the period covered by
14 such appropriation to elect to receive a cash refund, the
15 Department, by rule or regulation, shall provide for the
16 payment of refunds in hardship cases and shall define what
17 types of cases qualify as hardship cases.
18 (Source: P.A. 87-205.)
19 (35 ILCS 620/11) (from Ch. 120, par. 478)
20 Sec. 11. All information received by the Department from
21 returns filed under this Act, or from any investigations
22 conducted under this Act, shall be confidential, except for
23 official purposes, and any person who divulges any such
24 information in any manner, except in accordance with a proper
25 judicial order or as otherwise provided by law, shall be
26 guilty of a Class B misdemeanor.
27 Provided, that nothing contained in this Act shall
28 prevent the Director from publishing or making available to
29 the public the names and addresses of taxpayers filing
30 returns under this Act, or from publishing or making
31 available reasonable statistics concerning the operation of
32 the tax wherein the contents of returns are grouped into
33 aggregates in such a way that the information contained in
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1 any individual return shall not be disclosed.
2 And provided, that nothing contained in this Act shall
3 prevent the Director from making available to the United
4 States Government or any officer or agency thereof, for
5 exclusively official purposes, information received by the
6 Department in the administration of this Act.
7 The furnishing upon request of the Auditor General, or
8 his authorized agents, for official use, of returns filed and
9 information related thereto under this Act is deemed to be an
10 official purpose within the meaning of this Section.
11 The Director may make available to any State agency,
12 including the Illinois Supreme Court, which licenses persons
13 to engage in any occupation, information that a person
14 licensed by such agency has failed to file returns under this
15 Act or pay the tax, penalty and interest shown therein, or
16 has failed to pay any final assessment of tax, penalty or
17 interest due under this Act. An assessment is final when all
18 proceedings in court for review of such assessment have
19 terminated or the time for the taking thereof has expired
20 without such proceedings being instituted.
21 The Director shall make available for public inspection
22 in the Department's principal office and for publication, at
23 cost, administrative decisions issued on or after January 1,
24 1995. These decisions are to be made available in a manner so
25 that the following taxpayer information is not disclosed:
26 (1) The names, addresses, and identification
27 numbers of the taxpayer, related entities, and employees.
28 (2) At the sole discretion of the Director, trade
29 secrets or other confidential information identified as
30 such by the taxpayer, no later than 30 days after receipt
31 of an administrative decision, by such means as the
32 Department shall provide by rule.
33 The Director shall determine the appropriate extent of
34 the deletions allowed in paragraph (2). In the event the
SB856 Enrolled -141- LRB9000732KDcbA
1 taxpayer does not submit deletions, the Director shall make
2 only the deletions specified in paragraph (1).
3 The Director shall make available for public inspection
4 and publication an administrative decision within 180 days
5 after the issuance of the administrative decision. The term
6 "administrative decision" has the same meaning as defined in
7 Section 3-101 of Article III of the Code of Civil Procedure.
8 Costs collected under this Section shall be paid into the Tax
9 Compliance and Administration Fund.
10 Nothing contained in this Act shall prevent the Director
11 from divulging information to any person pursuant to a
12 request or authorization made by the taxpayer or by an
13 authorized representative of the taxpayer.
14 (Source: P.A. 88-669, eff. 11-29-94.)
15 Section 65. The Water Company Invested Capital Tax Act
16 is amended by changing Sections 5, 6, and 11 as follows:
17 (35 ILCS 625/5) (from Ch. 120, par. 1415)
18 Sec. 5. All of the provisions of Sections 4, 5, 5a, 5b,
19 5c, 5d, 5e, 5f, 5g, 5i, and 5j, 6b, and 6c of the Retailers'
20 Occupation Tax Act and Section 3-7 of the Uniform Penalty and
21 Interest Act, which are not inconsistent with this Act, shall
22 apply, as far as practicable, to the subject matter of this
23 Act to the same extent as if such provisions were included
24 herein. References in such incorporated Sections of the
25 Retailers' Occupation Tax Act to retailers, to sellers or to
26 persons engaged in the business of selling tangible personal
27 property mean water companies when used in this Act.
28 References in such incorporated Sections of the Retailers'
29 Occupation Tax Act to purchasers of tangible personal
30 property mean purchasers of water, or of water and sewage
31 disposal, when used in this Act. References in such
32 incorporated Sections of the Retailers' Occupation Tax Act to
SB856 Enrolled -142- LRB9000732KDcbA
1 sales of tangible personal property mean the distributing,
2 supplying, furnishing or selling of water for use or
3 consumption, or of water and sewage disposal, when used in
4 this Act.
5 (Source: P.A. 87-205.)
6 (35 ILCS 625/6) (from Ch. 120, par. 1416)
7 Sec. 6. If it appears, after claim therefor filed with
8 the Department, that an amount of tax or penalty or interest
9 has been paid which was not due under this Act, whether as
10 the result of a mistake of fact or an error of law, except as
11 hereinafter provided, then the Department shall issue a
12 credit memorandum or refund to the person who made the
13 erroneous payment or, if that person has died or become
14 incompetent, to his legal representative, as such.
15 If it is determined that the Department should issue a
16 credit or refund under this Act, the Department may first
17 apply the amount thereof against any amount of tax or penalty
18 or interest due hereunder from the person entitled to such
19 credit or refund. For this purpose, if proceedings are
20 pending to determine whether or not any tax or penalty or
21 interest is due under this Act from such person, the
22 Department may withhold issuance of the credit or refund
23 pending the final disposition of such proceedings and may
24 apply such credit or refund against any amount found to be
25 due to the Department as a result of such proceedings. The
26 balance, if any, of the credit or refund shall be issued to
27 the person entitled thereto.
28 If no tax or penalty or interest is due and no proceeding
29 is pending to determine whether such person is indebted to
30 the Department for tax or penalty or interest, the credit
31 memorandum or refund shall be issued to the claimant; or (in
32 the case of a credit memorandum) the credit memorandum may be
33 assigned and set over by the lawful holder thereof, subject
SB856 Enrolled -143- LRB9000732KDcbA
1 to reasonable rules of the Department, to any other person
2 who is subject to this Act, and the amount thereof shall be
3 applied by the Department against any tax or penalty or
4 interest due or to become due under this Act from such
5 assignee.
6 As to any claim for credit or refund filed with the
7 Department on or after each January 1 and July 1, no amounts
8 erroneously paid more than 3 years prior to such January 1
9 and July 1, respectively, shall be credited or refunded,
10 except that if both the Department and the taxpayer have
11 agreed to an extension of time to issue a notice of tax
12 liability under this Act, the claim may be filed at any time
13 prior to the expiration of the period agreed upon.
14 Claims for credit or refund shall be filed upon forms
15 provided by the Department. As soon as practicable after any
16 claim for credit or refund is filed, the Department shall
17 examine the same and determine the amount of credit or refund
18 to which the claimant is entitled and shall notify the
19 claimant of such determination, which amount shall be prima
20 facie correct.
21 Any credit or refund that is allowed under this Section
22 shall bear interest at the rate and in the manner specified
23 in the Uniform Penalty and Interest Act.
24 In case the Department determines that the claimant is
25 entitled to a refund, such refund shall be made only from
26 such appropriation as may be available for that purpose. If
27 it appears unlikely that the amount appropriated would permit
28 everyone having a claim allowed during the period covered by
29 such appropriation to elect to receive a cash refund, the
30 Department, by rule or regulation, shall provide for the
31 payment of refunds in hardship cases and shall define what
32 types of cases qualify as hardship cases.
33 (Source: P.A. 87-205.)
SB856 Enrolled -144- LRB9000732KDcbA
1 (35 ILCS 625/11) (from Ch. 120, par. 1421)
2 Sec. 11. All information received by the Department from
3 returns filed under this Act, or from any investigations
4 conducted under this Act, shall be confidential, except for
5 official purposes, and any person who divulges any such
6 information in any manner, except in accordance with a proper
7 judicial order or as otherwise provided by law, shall be
8 guilty of a Class B misdemeanor.
9 Nothing contained in this Act shall prevent the Director
10 from publishing or making available to the public the names
11 and addresses of taxpayers filing returns under this Act, or
12 from publishing or making available reasonable statistics
13 concerning the operation of the tax wherein the contents of
14 returns are grouped into aggregates in such a way that the
15 information contained in any individual return shall not be
16 disclosed.
17 Nothing contained in this Act shall prevent the Director
18 from making available to the United States Government or any
19 officer or agency thereof, for exclusively official purposes,
20 information received by the Department in the administration
21 of this Act.
22 The furnishing upon request of the Auditor General, or
23 his authorized agents, for official use, of returns filed and
24 information related thereto under this Act is deemed to be an
25 official purpose within the meaning of this Section.
26 The Director may make available to any State agency,
27 including the Illinois Supreme Court, which licenses persons
28 to engage in any occupation, information that a person
29 licensed by such agency has failed to file returns under this
30 Act or pay the tax, penalty and interest shown therein, or
31 has failed to pay any final assessment of tax, penalty or
32 interest due under this Act. An assessment is final when all
33 proceedings in court for review of such assessment have
34 terminated or the time for the taking thereof has expired
SB856 Enrolled -145- LRB9000732KDcbA
1 without such proceedings being instituted.
2 Nothing contained in this Act shall prevent the Director
3 from divulging information to any person pursuant to a
4 request or authorization made by the taxpayer or by an
5 authorized representative of the taxpayer.
6 (Source: P.A. 83-1415.)
7 Section 70. The Telecommunications Excise Tax Act is
8 amended by changing Sections 9, 10, and 15 as follows:
9 (35 ILCS 630/9) (from Ch. 120, par. 2009)
10 Sec. 9. All of the provisions of Sections 4, 5, 5a, 5b,
11 5c, 5d, 5e, 5f, 5g, 5i, and 5j, 6b, and 6c of the Retailers'
12 Occupation Tax Act, which are not inconsistent with this Act,
13 and Section 3-7 of the Uniform Penalty and Interest Act,
14 shall apply, as far as practicable, to the subject matter of
15 this Act to the same extent as if such provisions were
16 included herein. References in such incorporated Sections of
17 the Retailers' Occupation Tax Act to retailers, to sellers or
18 to persons engaged in the business of selling tangible
19 personal property mean retailers, as defined in this Article,
20 or persons engaged in the act or privilege of originating or
21 receiving telecommunications. References in such
22 incorporated Sections of the Retailers' Occupation Tax Act to
23 purchasers of tangible personal property mean purchasers of
24 telecommunications as defined in this Article. References in
25 such incorporated Sections of the Retailers' Occupation Tax
26 Act to sales of tangible personal property mean the act or
27 privilege of originating or receiving telecommunications as
28 defined in this Article.
29 (Source: P.A. 87-205.)
30 (35 ILCS 630/10) (from Ch. 120, par. 2010)
31 Sec. 10. If it shall appear that an amount of tax or
SB856 Enrolled -146- LRB9000732KDcbA
1 penalty or interest has been paid in error hereunder to the
2 Department by a taxpayer, as distinguished from the retailer,
3 whether such amount be paid through a mistake of fact or an
4 error of law, such taxpayer may file a claim for credit or
5 refund with the Department. If it shall appear that an
6 amount of tax or penalty or interest has been paid in error
7 to the Department hereunder by a retailer who is required or
8 authorized to collect and remit the tax imposed by this
9 Article, whether such amount be paid through a mistake of
10 fact or an error of law, such retailer may file a claim for
11 credit or refund with the Department, provided that no credit
12 or refund shall be allowed for any amount paid by any such
13 retailer unless it shall appear that he bore the burden of
14 such amount and did not shift the burden thereof to anyone
15 else, or unless it shall appear that he or she or his or her
16 legal representative has unconditionally repaid such amount
17 to his customer (1) who bore the burden thereof and has not
18 shifted such burden directly or indirectly in any manner
19 whatsoever; or (2) who, if he or she shifted such burden, has
20 repaid unconditionally such amount to his or her own
21 customer; and (3) who is not entitled to receive any
22 reimbursement therefor from any other source than from his
23 retailer, nor to be relieved of such burden in any other
24 manner whatsoever.
25 If it is determined that the Department should issue a
26 credit or refund under this Article, the Department may first
27 apply the amount thereof against any amount of tax or penalty
28 or interest due hereunder from the person entitled to such
29 credit or refund. For this purpose, if proceedings are
30 pending to determine whether or not any tax or penalty or
31 interest is due under this Article from such person, the
32 Department may withhold issuance of the credit or refund
33 pending the final disposition of such proceedings and may
34 apply such credit or refund against any amount found to be
SB856 Enrolled -147- LRB9000732KDcbA
1 due to the Department as a result of such proceedings. The
2 balance, if any, of the credit or refund shall be issued to
3 the person entitled thereto.
4 If no tax or penalty or interest is due and no proceeding
5 is pending to determine whether such person is indebted to
6 the Department for tax or penalty or interest, the credit
7 memorandum or refund shall be issued to the claimant; or (in
8 the case of a credit memorandum) the credit memorandum may be
9 assigned and set over by the lawful holder thereof, subject
10 to reasonable rules of the Department, to any other person
11 who is subject to this Article, and the amount thereof shall
12 be applied by the Department against any tax or penalty or
13 interest due or to become due under this Article from such
14 assignee.
15 As to any claim for credit or refund filed with the
16 Department on or after each January 1 and July 1, no amounts
17 erroneously paid more than three years prior to such January
18 1 and July 1, respectively, shall be credited or refunded,
19 except that if both the Department and the taxpayer have
20 agreed to an extension of time to issue a notice of tax
21 liability under this Act, the claim may be filed at any time
22 prior to the expiration of the period agreed upon.
23 Claims for credit or refund shall be filed upon forms
24 provided by the Department. As soon as practicable after any
25 claim for credit or refund is filed, the Department shall
26 examine the same and determine the amount of credit or refund
27 to which the claimant is entitled and shall notify the
28 claimant of such determination, which amount shall be prima
29 facie correct.
30 A claim for credit or refund shall be considered to have
31 been filed with the Department on the date upon which it is
32 received by the Department. Upon receipt of any claim for
33 credit or refund filed under this Article, any officer or
34 employee of the Department, authorized in writing by the
SB856 Enrolled -148- LRB9000732KDcbA
1 Director of Revenue to acknowledge receipt of such claims on
2 behalf of the Department, shall execute on behalf of the
3 Department, and shall deliver or mail to the claimant or his
4 duly authorized agent, a written receipt, acknowledging that
5 the claim has been filed with the Department, describing the
6 claim in sufficient detail to identify it and stating the
7 date upon which the claim was received by the Department.
8 Such written receipt shall be prima facie evidence that the
9 Department received the claim described in such receipt and
10 shall be prima facie evidence of the date when such claim was
11 received by the Department. In the absence of such a written
12 receipt, the records of the Department as to when the claim
13 was received by the Department, or as to whether or not the
14 claim was received at all by the Department, shall be deemed
15 to be prima facie correct upon these questions in the event
16 of any dispute between the claimant (or his or her legal
17 representative) and the Department concerning these
18 questions.
19 Any credit or refund that is allowed under this Article
20 shall bear interest at the rate and in the manner specified
21 in the Uniform Penalty and Interest Act.
22 In case the Department determines that the claimant is
23 entitled to a refund, such refund shall be made only from
24 such appropriation as may be available for that purpose. If
25 it appears unlikely that the amount appropriated would permit
26 everyone having a claim allowed during the period covered by
27 such appropriation to elect to receive a cash refund, the
28 Department by rule or regulation shall provide for the
29 payment of refunds in hardship cases and shall define what
30 types of cases qualify as hardship cases.
31 If a retailer who has failed to pay tax on gross charges
32 for telecommunications is required by the Department to pay
33 such tax, such retailer, without filing any formal claim with
34 the Department, shall be allowed to take credit against such
SB856 Enrolled -149- LRB9000732KDcbA
1 tax liability to the extent, if any, to which such retailer
2 has paid the tax to its vendor of the telecommunications
3 which such retailer purchased and used for resale, and no
4 penalty or interest shall be charged to such retailer on the
5 amount of such credit. However, when such credit is allowed
6 to the retailer by the Department, the vendor is precluded
7 from refunding any of the tax to the retailer and filing a
8 claim for credit or refund with respect thereto with the
9 Department. The provisions of this Section added by this
10 amendatory Act of 1988 shall be applied retroactively,
11 regardless of the date of the transaction.
12 (Source: P.A. 87-205.)
13 (35 ILCS 630/15) (from Ch. 120, par. 2015)
14 Sec. 15. Confidential information. All information
15 received by the Department from returns filed under this
16 Article, or from any investigations conducted under this
17 Article, shall be confidential, except for official purposes,
18 and any person who divulges any such information in any
19 manner, except in accordance with a proper judicial order or
20 as otherwise provided by law, shall be guilty of a Class B
21 misdemeanor.
22 Provided, that nothing contained in this Article shall
23 prevent the Director from publishing or making available to
24 the public the names and addresses of retailers or taxpayers
25 filing returns under this Article, or from publishing or
26 making available reasonable statistics concerning the
27 operation of the tax wherein the contents of returns are
28 grouped into aggregates in such a way that the information
29 contained in any individual return shall not be disclosed.
30 And provided, that nothing contained in this Article
31 shall prevent the Director from making available to the
32 United States Government or the government of any other
33 state, or any officer or agency thereof, for exclusively
SB856 Enrolled -150- LRB9000732KDcbA
1 official purposes, information received by the Department in
2 the administration of this Article, if such other
3 governmental agency agrees to divulge requested tax
4 information to the Department.
5 The furnishing upon request of the Auditor General, or
6 his authorized agents, for official use, of returns filed and
7 information related thereto under this Article is deemed to
8 be an official purpose within the meaning of this Section.
9 The Director shall make available for public inspection
10 in the Department's principal office and for publication, at
11 cost, administrative decisions issued on or after January 1,
12 1995. These decisions are to be made available in a manner so
13 that the following taxpayer information is not disclosed:
14 (1) The names, addresses, and identification
15 numbers of the taxpayer, related entities, and employees.
16 (2) At the sole discretion of the Director, trade
17 secrets or other confidential information identified as
18 such by the taxpayer, no later than 30 days after receipt
19 of an administrative decision, by such means as the
20 Department shall provide by rule.
21 The Director shall determine the appropriate extent of
22 the deletions allowed in paragraph (2). In the event the
23 taxpayer does not submit deletions, the Director shall make
24 only the deletions specified in paragraph (1).
25 The Director shall make available for public inspection
26 and publication an administrative decision within 180 days
27 after the issuance of the administrative decision. The term
28 "administrative decision" has the same meaning as defined in
29 Section 3-101 of Article III of the Code of Civil Procedure.
30 Costs collected under this Section shall be paid into the Tax
31 Compliance and Administration Fund.
32 Nothing contained in this Act shall prevent the Director
33 from divulging information to any person pursuant to a
34 request or authorization made by the taxpayer or by an
SB856 Enrolled -151- LRB9000732KDcbA
1 authorized representative of the taxpayer.
2 (Source: P.A. 88-669, eff. 11-29-94.)
3 Section 72. The Liquor Control Act of 1934 is amended by
4 changing Section 8-9 as follows:
5 (235 ILCS 5/8-9) (from Ch. 43, par. 163e)
6 Sec. 8-9. Tax information; confidentiality. All
7 information received by the Department from returns filed
8 under this Act, or from any investigation conducted under
9 this Act, shall be confidential, except for official
10 purposes, and any person who divulges any such information in
11 any manner, except in accordance with a proper judicial order
12 or as otherwise provided by law, shall be guilty of a Class B
13 misdemeanor.
14 Nothing in this Act prevents the Director of Revenue from
15 publishing or making available to the public the names and
16 addresses of persons filing returns under this Act, or
17 reasonable statistics concerning the operation of the tax by
18 grouping the contents of returns so that the information in
19 any individual return is not disclosed.
20 Nothing in this Act prevents the Director of Revenue from
21 divulging to the United States Government or the government
22 of any other state, or any officer or agency thereof, for
23 exclusively official purposes, information received by the
24 Department in administering this Act, provided that such
25 other governmental agency agrees to divulge requested tax
26 information to the Department.
27 The furnishing upon request of information obtained by
28 the Department from returns filed under this Act or
29 investigations conducted under this Act to the Illinois
30 Liquor Control Commission for official use is deemed to be an
31 official purpose within the meaning of this Section.
32 The furnishing upon request of the Auditor General, or
SB856 Enrolled -152- LRB9000732KDcbA
1 his authorized agents, for official use, of returns filed and
2 information related thereto under this Act is deemed to be an
3 official purpose within the meaning of this Section.
4 The furnishing of financial information to a home rule
5 unit with a population in excess of 2,000,000 that has
6 imposed a tax similar to that imposed by this Act under its
7 home rule powers, upon request of the Chief Executive of the
8 home rule unit, is an official purpose within the meaning of
9 this Section, provided the home rule unit agrees in writing
10 to the requirements of this Section. Information so provided
11 is subject to all confidentiality provisions of this Section.
12 The written agreement shall provide for reciprocity,
13 limitations on access, disclosure, and procedures for
14 requesting information.
15 Nothing contained in this Act shall prevent the Director
16 from divulging information to any person pursuant to a
17 request or authorization made by the taxpayer or by an
18 authorized representative of the taxpayer.
19 (Source: P.A. 88-669, eff. 11-29-94.)
20 Section 75. The Senior Citizens and Disabled Persons
21 Property Tax Relief and Pharmaceutical Assistance Act is
22 amended by changing Section 3.07 as follows:
23 (320 ILCS 25/3.07) (from Ch. 67 1/2, par. 403.07)
24 Sec. 3.07. "Income" means adjusted gross income,
25 properly reportable for federal income tax purposes under the
26 provisions of the Internal Revenue Code, modified by adding
27 thereto the sum of the following amounts to the extent
28 deducted or excluded from gross income in the computation of
29 adjusted gross income:
30 (A) An amount equal to all amounts paid or accrued
31 as interest or dividends during the taxable year;
SB856 Enrolled -153- LRB9000732KDcbA
1 (B) An amount equal to the amount of tax imposed by
2 the Illinois Income Tax Act paid for the taxable year;
3 (C) An amount equal to all amounts received during
4 the taxable year as an annuity under an annuity,
5 endowment or life insurance contract or under any other
6 contract or agreement;
7 (D) An amount equal to the amount of benefits paid
8 under the Federal Social Security Act during the taxable
9 year;
10 (E) An amount equal to the amount of benefits paid
11 under the Railroad Retirement Act during the taxable
12 year;
13 (F) An amount equal to the total amount of cash
14 public assistance payments received from any governmental
15 agency during the taxable year other than benefits
16 received pursuant to this Act;.
17 (G) An amount equal to any net operating loss
18 carryover deduction or capital loss carryover deduction
19 during the taxable year.
20 "Income" does not include any grant assistance received
21 under the Nursing Home Grant Assistance Act.
22 This amendatory Act of 1987 shall be effective for
23 purposes of this Section for tax years ending on or after
24 December 31, 1987.
25 (Source: P.A. 87-863.)
26 Section 80. The Uniform Penalty and Interest Act is
27 amended by changing Section 3-3 as follows:
28 (35 ILCS 735/3-3) (from Ch. 120, par. 2603-3)
29 Sec. 3-3. Penalty for failure to file or pay.
30 (a) This subsection (a) is applicable before January 1,
31 1996. A penalty of 5% of the tax required to be shown due on
32 a return shall be imposed for failure to file the tax return
SB856 Enrolled -154- LRB9000732KDcbA
1 on or before the due date prescribed for filing determined
2 with regard for any extension of time for filing (penalty for
3 late filing or nonfiling). If any unprocessable return is
4 corrected and filed within 21 days after notice by the
5 Department, the late filing or nonfiling penalty shall not
6 apply. If a penalty for late filing or nonfiling is imposed
7 in addition to a penalty for late payment, the total penalty
8 due shall be the sum of the late filing penalty and the
9 applicable late payment penalty. Beginning on the effective
10 date of this amendatory Act of 1995, in the case of any type
11 of tax return required to be filed more frequently than
12 annually, when the failure to file the tax return on or
13 before the date prescribed for filing (including any
14 extensions) is shown to be nonfraudulent and has not occurred
15 in the 2 years immediately preceding the failure to file on
16 the prescribed due date, the penalty imposed by section
17 3-3(a) shall be abated.
18 (a-5) This subsection (a-5) is applicable on and after
19 January 1, 1996. A penalty equal to 2% of the tax required to
20 be shown due on a return, up to a maximum amount of $250,
21 determined without regard to any part of the tax that is paid
22 on time or by any credit that was properly allowable on the
23 date the return was required to be filed, shall be imposed
24 for failure to file the tax return on or before the due date
25 prescribed for filing determined with regard for any
26 extension of time for filing. However, if any return is not
27 filed within 30 days after notice of nonfiling mailed by the
28 Department to the last known address of the taxpayer
29 contained in Department records, an additional penalty amount
30 shall be imposed equal to the greater of $250 or 2% of the
31 tax shown on the return. However, the additional penalty
32 amount may not exceed $5,000 and is determined without regard
33 to any part of the tax that is paid on time or by any credit
34 that was properly allowable on the date the return was
SB856 Enrolled -155- LRB9000732KDcbA
1 required to be filed (penalty for late filing or nonfiling).
2 If any unprocessable return is corrected and filed within 30
3 days after notice by the Department, the late filing or
4 nonfiling penalty shall not apply. If a penalty for late
5 filing or nonfiling is imposed in addition to a penalty for
6 late payment, the total penalty due shall be the sum of the
7 late filing penalty and the applicable late payment penalty.
8 In the case of any type of tax return required to be filed
9 more frequently than annually, when the failure to file the
10 tax return on or before the date prescribed for filing
11 (including any extensions) is shown to be nonfraudulent and
12 has not occurred in the 2 years immediately preceding the
13 failure to file on the prescribed due date, the penalty
14 imposed by section 3-3(a) shall be abated.
15 (b) A penalty of 15% of the tax shown on the return or
16 the tax required to be shown due on the return shall be
17 imposed for failure to pay:
18 (1) the tax shown due on the return on or before
19 the due date prescribed for payment of that tax, an
20 amount of underpayment of estimated tax, or an amount
21 that is reported in an amended return other than an
22 amended return timely filed as required by subsection (b)
23 of Section 506 of the Illinois Income Tax Act (penalty
24 for late payment or nonpayment of admitted liability); or
25 (2) the full amount of any tax required to be shown
26 due on a return and which is not shown (penalty for late
27 payment or nonpayment of additional liability), within 30
28 days after a notice of arithmetic error, notice and
29 demand, or a final assessment is issued by the
30 Department. In the case of a final assessment arising
31 following a protest and hearing, the 30-day period shall
32 not begin until all proceedings in court for review of
33 the final assessment have terminated or the period for
34 obtaining a review has expired without proceedings for a
SB856 Enrolled -156- LRB9000732KDcbA
1 review having been instituted. In the case of a notice
2 of tax liability that becomes a final assessment without
3 a protest and hearing, the penalty provided in this
4 paragraph (2) shall be imposed at the expiration of the
5 period provided for the filing of a protest.
6 (c) For purposes of the late payment penalties, the
7 basis of the penalty shall be the tax shown or required to be
8 shown on a return, whichever is applicable, reduced by any
9 part of the tax which is paid on time and by any credit which
10 was properly allowable on the date the return was required to
11 be filed.
12 (d) A penalty shall be applied to the tax required to be
13 shown even if that amount is less than the tax shown on the
14 return.
15 (e) If both a subsection (b)(1) penalty and a subsection
16 (b)(2) penalty are assessed against the same return, the
17 subsection (b)(2) penalty shall be assessed against only the
18 additional tax found to be due.
19 (f) If the taxpayer has failed to file the return, the
20 Department shall determine the correct tax according to its
21 best judgment and information, which amount shall be prima
22 facie evidence of the correctness of the tax due.
23 (g) The time within which to file a return or pay an
24 amount of tax due without imposition of a penalty does not
25 extend the time within which to file a protest to a notice of
26 tax liability or a notice of deficiency.
27 (h) No return shall be determined to be unprocessable
28 because of the omission of any information requested on the
29 return pursuant to Section 39b53 of the Civil Administrative
30 Code of Illinois.
31 (Source: P.A. 88-480; 89-379, eff. 8-18-95; 89-436, eff.
32 1-1-96.)
33 Section 80. The Environmental Protection Act is amended
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1 by changing Section 57.11 as follows:
2 (415 ILCS 5/57.11)
3 Sec. 57.11. Underground Storage Tank Fund; creation.
4 (a) There is hereby created in the State Treasury a
5 special fund to be known as the Underground Storage Tank
6 Fund. There shall be deposited into the Underground Storage
7 Tank Fund all monies received by the Office of the State Fire
8 Marshal as fees for underground storage tanks under Sections
9 4 and 5 of the Gasoline Storage Act and as fees pursuant to
10 the Motor Fuel Tax Law. All amounts held in the Underground
11 Storage Tank Fund shall be invested at interest by the State
12 Treasurer. All income earned from the investments shall be
13 deposited into the Underground Storage Tank Fund no less
14 frequently than quarterly. Moneys in the Underground Storage
15 Tank Fund, pursuant to appropriation, may be used by the
16 Agency and the Office of the State Fire Marshal for the
17 following purposes:
18 (1) To take action authorized under Section 57.12
19 to recover costs under Section 57.12.
20 (2) To assist in the reduction and mitigation of
21 damage caused by leaks from underground storage tanks,
22 including but not limited to, providing alternative water
23 supplies to persons whose drinking water has become
24 contaminated as a result of those leaks.
25 (3) To be used as a matching amount towards federal
26 assistance relative to the release of petroleum from
27 underground storage tanks.
28 (4) For the costs of administering activities of
29 the Agency and the Office of the State Fire Marshal
30 relative to the Underground Storage Tank Fund.
31 (5) For payment of costs of corrective action
32 incurred by and indemnification to operators of
33 underground storage tanks as provided in this Title.
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1 (6) For a total of 2 demonstration projects in
2 amounts in excess of a $10,000 deductible charge designed
3 to assess the viability of corrective action projects at
4 sites which have experienced contamination from petroleum
5 releases. Such demonstration projects shall be conducted
6 in accordance with the provision of this Title.
7 (7) Subject to appropriation, moneys in the
8 Underground Storage Tank Fund may also be used by the
9 Department of Revenue for the costs of administering its
10 activities relative to the Fund and for refunds provided
11 for in Section 13a.8 of the Motor Fuel Tax Act.
12 (b) Moneys in the Underground Storage Tank Fund may,
13 pursuant to appropriation, be used by the Office of the State
14 Fire Marshal or the Agency to take whatever emergency action
15 is necessary or appropriate to assure that the public health
16 or safety is not threatened whenever there is a release or
17 substantial threat of a release of petroleum from an
18 underground storage tank and for the costs of administering
19 its activities relative to the Underground Storage Tank Fund.
20 (c) Beginning July 1, 1993, the Governor shall certify
21 to the State Comptroller and State Treasurer the monthly
22 amount necessary to pay debt service on State obligations
23 issued pursuant to Section 6 of the General Obligation Bond
24 Act. On the last day of each month, the Comptroller shall
25 order transferred and the Treasurer shall transfer from the
26 Underground Storage Tank Fund to the General Obligation Bond
27 Retirement and Interest Fund the amount certified by the
28 Governor, plus any cumulative deficiency in those transfers
29 for prior months.
30 (Source: P.A. 88-496.)
31 Section 85. The Environmental Impact Fee Law is amended
32 by changing Section 325 as follows:
SB856 Enrolled -159- LRB9000732KDcbA
1 (415 ILCS 125/325)
2 (Section scheduled to be repealed on January 1, 2003)
3 Sec. 325. Incorporation of other Acts. The provisions
4 of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a,
5 6b, 6c, 8, 9, 10 and 12 (except to the extent to which the
6 minimum notice requirement for hearings conflicts with that
7 provided for in Section 16 of the Motor Fuel Tax Law), of the
8 Retailers' Occupation Tax Act that are not inconsistent with
9 this Act, and Section 3-7 of the Uniform Penalty and Interest
10 Act shall apply as far as practicable, to the subject matter
11 of this Law to the same extent as if those provisions were
12 included in this Law.
13 In addition, Sections 12, 12a, 13a.8, 14, 15, 16, 17, and
14 18 of the Motor Fuel Tax Law shall apply as far as
15 practicable, to the subject matter of this Law to the same
16 extent as if those provisions were included in this Law.
17 References to "taxes" in these incorporated Sections
18 shall be construed to apply to the administration, payment,
19 and remittance of all fees under this Law.
20 (Source: P.A. 89-428, eff. 1-1-96; 89-457, eff. 5-22-96.)
21 Section 95. No acceleration or delay. Where this Act
22 makes changes in a statute that is represented in this Act by
23 text that is not yet or no longer in effect (for example, a
24 Section represented by multiple versions), the use of that
25 text does not accelerate or delay the taking effect of (i)
26 the changes made by this Act or (ii) provisions derived from
27 any other Public Act.
28 Section 90. Severability. The provisions of this Act
29 are severable under Section 1.31 of the Statute on Statutes.
30 Section 99. Effective date. This Act takes effect
31 January 1, 1998, except that the provisions in Section 20
SB856 Enrolled -160- LRB9000732KDcbA
1 amending Section 9 of the Use Tax Act and the provisions in
2 Section 30 amending Section 3 of the Retailers' Occupation
3 Tax Act take effect January 1, 1999.
SB856 Enrolled -161- LRB9000732KDcbA
1 INDEX
2 Statutes amended in order of appearance
3 20 ILCS 2505/39b52
4 30 ILCS 105/6z-18 from Ch. 127, par. 142z-18
5 30 ILCS 105/6z-20 from Ch. 127, par. 142z-20
6 35 ILCS 5/203 from Ch. 120, par. 2-203
7 35 ILCS 5/301 from Ch. 120, par. 3-301
8 35 ILCS 5/506 from Ch. 120, par. 5-506
9 35 ILCS 5/905 from Ch. 120, par. 9-905
10 35 ILCS 5/911 from Ch. 120, par. 9-911
11 35 ILCS 5/1501 from Ch. 120, par. 15-1501
12 35 ILCS 105/20 from Ch. 120, par. 439.20
13 35 ILCS 110/18 from Ch. 120, par. 439.48
14 35 ILCS 115/18 from Ch. 120, par. 439.118
15 35 ILCS 120/2a from Ch. 120, par. 441a
16 35 ILCS 120/6c from Ch. 120, par. 445c
17 35 ILCS 130/9d from Ch. 120, par. 453.9d
18 35 ILCS 135/14a from Ch. 120, par. 453.44a
19 35 ILCS 610/5 from Ch. 120, par. 467.5
20 35 ILCS 610/6 from Ch. 120, par. 467.6
21 35 ILCS 615/5 from Ch. 120, par. 467.20
22 35 ILCS 615/6 from Ch. 120, par. 467.21
23 35 ILCS 620/5 from Ch. 120, par. 472
24 35 ILCS 620/6 from Ch. 120, par. 473
25 35 ILCS 625/5 from Ch. 120, par. 1415
26 35 ILCS 625/6 from Ch. 120, par. 1416
27 35 ILCS 630/9 from Ch. 120, par. 2009
28 35 ILCS 630/10 from Ch. 120, par. 2010
29 320 ILCS 25/3.07 from Ch. 67 1/2, par. 403.07