State of Illinois
91st General Assembly
Legislation
4th Special Session

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91_SB1310ham002











                                           LRB9110257SMdvam20

 1                    AMENDMENT TO SENATE BILL 1310

 2        AMENDMENT NO.     .  Amend Senate Bill 1310 by  replacing
 3    everything after the enacting clause with the following:

 4        "Section 3.  The State Finance Act is amended by changing
 5    Sections 6z-18 and 6z-20 as follows:

 6        (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
 7        Sec.  6z-18.   A portion of the money paid into the Local
 8    Government Tax Fund from sales of food for human  consumption
 9    which  is  to  be  consumed off the premises where it is sold
10    (other than alcoholic beverages, soft drinks and  food  which
11    has been prepared for immediate consumption) and prescription
12    and  nonprescription medicines, drugs, medical appliances and
13    insulin, urine testing materials, syringes and  needles  used
14    by  diabetics,  which  occurred  in  municipalities, shall be
15    distributed to each municipality based upon the  sales  which
16    occurred  in  that  municipality.   The  remainder  shall  be
17    distributed  to  each  county  based  upon  the  sales  which
18    occurred in the unincorporated area of that county.
19        A portion of the money paid into the Local Government Tax
20    Fund from the 6.25% general use tax rate on the selling price
21    of  tangible  personal  property  which  is purchased outside
22    Illinois at retail from a retailer and  which  is  titled  or
 
                            -2-            LRB9110257SMdvam20
 1    registered  by any agency of this State's government shall be
 2    distributed to municipalities as provided in this  paragraph.
 3    Each  municipality  shall  receive the amount attributable to
 4    sales  for  which   Illinois   addresses   for   titling   or
 5    registration   purposes   are   given   as   being   in  such
 6    municipality.  The remainder of the money paid into the Local
 7    Government Tax Fund from such sales shall be  distributed  to
 8    counties.   Each county shall receive the amount attributable
 9    to  sales  for  which  Illinois  addresses  for  titling   or
10    registration  purposes  are  given  as  being  located in the
11    unincorporated area of such county.
12        A portion of the money paid into the Local Government Tax
13    Fund from the 6.25% general rate (and, beginning July 1, 2000
14    and through December 31, 2000, the 1.25% rate on  motor  fuel
15    and   gasohol)   on  sales  subject  to  taxation  under  the
16    Retailers' Occupation Tax Act and the Service Occupation  Tax
17    Act,  which  occurred in municipalities, shall be distributed
18    to each municipality, based upon the sales which occurred  in
19    that municipality. The remainder shall be distributed to each
20    county,   based   upon   the  sales  which  occurred  in  the
21    unincorporated area of such county.
22        For the purpose of determining allocation  to  the  local
23    government unit, a retail sale by a producer of coal or other
24    mineral  mined  in  Illinois is a sale at retail at the place
25    where  the  coal  or  other  mineral  mined  in  Illinois  is
26    extracted from the earth.  This paragraph does not  apply  to
27    coal  or other mineral when it is delivered or shipped by the
28    seller to the purchaser at a point outside Illinois  so  that
29    the  sale is exempt under the United States Constitution as a
30    sale in interstate or foreign commerce.
31        Whenever the Department determines that a refund of money
32    paid into the Local Government Tax Fund should be made  to  a
33    claimant   instead   of  issuing  a  credit  memorandum,  the
34    Department shall notify  the  State  Comptroller,  who  shall
 
                            -3-            LRB9110257SMdvam20
 1    cause  the order to be drawn for the amount specified, and to
 2    the person named, in such notification from  the  Department.
 3    Such  refund  shall be paid by the State Treasurer out of the
 4    Local Government Tax Fund.
 5        On or before the 25th day of  each  calendar  month,  the
 6    Department  shall  prepare and certify to the Comptroller the
 7    disbursement of stated sums of money to named  municipalities
 8    and  counties,  the  municipalities  and counties to be those
 9    entitled to distribution of taxes or penalties  paid  to  the
10    Department  during  the  second preceding calendar month. The
11    amount to be paid to each municipality or county shall be the
12    amount (not including credit memoranda) collected during  the
13    second  preceding  calendar  month by the Department and paid
14    into the Local  Government  Tax  Fund,  plus  an  amount  the
15    Department  determines  is  necessary  to  offset any amounts
16    which were erroneously paid to a different taxing  body,  and
17    not  including  an amount equal to the amount of refunds made
18    during the second preceding calendar month by the Department,
19    and not including any amount which the Department  determines
20    is  necessary  to  offset  any amounts which are payable to a
21    different taxing  body  but  were  erroneously  paid  to  the
22    municipality or county.  Within 10 days after receipt, by the
23    Comptroller,   of   the  disbursement  certification  to  the
24    municipalities and counties,  provided for in this Section to
25    be  given  to  the  Comptroller  by   the   Department,   the
26    Comptroller  shall  cause  the  orders  to  be  drawn for the
27    respective  amounts  in  accordance   with   the   directions
28    contained in such certification.
29        When  certifying  the amount of monthly disbursement to a
30    municipality or county under  this  Section,  the  Department
31    shall increase or decrease that amount by an amount necessary
32    to  offset  any  misallocation of previous disbursements. The
33    offset amount  shall  be  the  amount  erroneously  disbursed
34    within  the  6  months  preceding the time a misallocation is
 
                            -4-            LRB9110257SMdvam20
 1    discovered.
 2        The  provisions  directing  the  distributions  from  the
 3    special fund in the  State  Treasury  provided  for  in  this
 4    Section   shall  constitute  an  irrevocable  and  continuing
 5    appropriation of all amounts as provided  herein.  The  State
 6    Treasurer and State Comptroller are hereby authorized to make
 7    distributions as provided in this Section.
 8        In construing any development, redevelopment, annexation,
 9    preannexation  or  other  lawful agreement in effect prior to
10    September 1, 1990, which describes or refers to receipts from
11    a county or municipal retailers' occupation tax, use  tax  or
12    service  occupation  tax  which  now  cannot be imposed, such
13    description or reference  shall  be  deemed  to  include  the
14    replacement  revenue  for  such  abolished taxes, distributed
15    from the Local Government Tax Fund.
16    (Source: P.A. 90-491, eff. 1-1-98; 91-51, eff. 6-30-99.)

17        (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
18        Sec. 6z-20. Of the money received from the 6.25%  general
19    rate  (and,  beginning  July 1, 2000 and through December 31,
20    2000, the 1.25% rate on motor  fuel  and  gasohol)  on  sales
21    subject  to  taxation under the Retailers' Occupation Tax Act
22    and Service Occupation Tax Act and paid into the  County  and
23    Mass  Transit  District  Fund,  distribution  to the Regional
24    Transportation  Authority  tax  fund,  created  pursuant   to
25    Section  4.03  of  the Regional Transportation Authority Act,
26    for deposit therein shall be made based upon the retail sales
27    occurring in a county having more than 3,000,000 inhabitants.
28    The remainder shall be  distributed  to  each  county  having
29    3,000,000  or  fewer  inhabitants based upon the retail sales
30    occurring in each such county.
31        For the purpose of determining allocation  to  the  local
32    government unit, a retail sale by a producer of coal or other
33    mineral  mined  in  Illinois is a sale at retail at the place
 
                            -5-            LRB9110257SMdvam20
 1    where  the  coal  or  other  mineral  mined  in  Illinois  is
 2    extracted from the earth.  This paragraph does not  apply  to
 3    coal  or other mineral when it is delivered or shipped by the
 4    seller to the purchaser at a point outside Illinois  so  that
 5    the  sale is exempt under the United States Constitution as a
 6    sale in interstate or foreign commerce.
 7        Of the money received from the 6.25% general use tax rate
 8    on tangible personal  property  which  is  purchased  outside
 9    Illinois  at  retail  from  a retailer and which is titled or
10    registered by any agency of this State's government and  paid
11    into  the  County  and Mass Transit District Fund, the amount
12    for which Illinois  addresses  for  titling  or  registration
13    purposes  are  given as being in each county having more than
14    3,000,000 inhabitants shall be distributed into the  Regional
15    Transportation   Authority  tax  fund,  created  pursuant  to
16    Section 4.03 of the Regional  Transportation  Authority  Act.
17    The  remainder  of  the  money  paid from such sales shall be
18    distributed to each county based on sales for which  Illinois
19    addresses  for  titling or registration purposes are given as
20    being located  in  the  county.   Any  money  paid  into  the
21    Regional  Transportation  Authority  Occupation  and  Use Tax
22    Replacement Fund from the County and  Mass  Transit  District
23    Fund  prior  to  January 14, 1991, which has not been paid to
24    the Authority prior to that date, shall be transferred to the
25    Regional Transportation Authority tax fund.
26        Whenever the Department determines that a refund of money
27    paid into the County and Mass Transit District Fund should be
28    made to a claimant instead of issuing  a  credit  memorandum,
29    the  Department shall notify the State Comptroller, who shall
30    cause the order to be drawn for the amount specified, and  to
31    the  person  named, in such notification from the Department.
32    Such refund shall be paid by the State Treasurer out  of  the
33    County and Mass Transit District Fund.
34        On  or  before  the  25th day of each calendar month, the
 
                            -6-            LRB9110257SMdvam20
 1    Department shall prepare and certify to the  Comptroller  the
 2    disbursement   of  stated  sums  of  money  to  the  Regional
 3    Transportation Authority and to named counties, the  counties
 4    to   be   those  entitled  to  distribution,  as  hereinabove
 5    provided, of taxes or penalties paid to the Department during
 6    the second preceding calendar month.  The amount to  be  paid
 7    to  the  Regional  Transportation  Authority  and each county
 8    having 3,000,000 or fewer inhabitants  shall  be  the  amount
 9    (not  including credit memoranda) collected during the second
10    preceding calendar month by the Department and paid into  the
11    County  and  Mass  Transit  District Fund, plus an amount the
12    Department determines is  necessary  to  offset  any  amounts
13    which  were  erroneously paid to a different taxing body, and
14    not including an amount equal to the amount of  refunds  made
15    during the second preceding calendar month by the Department,
16    and  not including any amount which the Department determines
17    is necessary to offset any amounts which were  payable  to  a
18    different  taxing  body  but  were  erroneously  paid  to the
19    Regional Transportation Authority or county.  Within 10  days
20    after  receipt,  by  the  Comptroller,  of  the  disbursement
21    certification  to  the  Regional Transportation Authority and
22    counties, provided for in this Section to  be  given  to  the
23    Comptroller  by  the  Department, the Comptroller shall cause
24    the  orders  to  be  drawn  for  the  respective  amounts  in
25    accordance   with   the   directions   contained   in    such
26    certification.
27        When  certifying  the amount of a monthly disbursement to
28    the Regional Transportation Authority or to  a  county  under
29    this  Section, the Department shall increase or decrease that
30    amount by an amount necessary to offset any misallocation  of
31    previous  disbursements.   The  offset  amount  shall  be the
32    amount erroneously disbursed within the  6  months  preceding
33    the time a misallocation is discovered.
34        The  provisions  directing  the  distributions  from  the
 
                            -7-            LRB9110257SMdvam20
 1    special  fund  in  the  State  Treasury  provided for in this
 2    Section and from the Regional  Transportation  Authority  tax
 3    fund  created  by Section 4.03 of the Regional Transportation
 4    Authority Act shall constitute an irrevocable and  continuing
 5    appropriation  of  all  amounts as provided herein. The State
 6    Treasurer and State Comptroller are hereby authorized to make
 7    distributions as provided in this Section.
 8        In construing any development, redevelopment, annexation,
 9    preannexation or other lawful agreement in  effect  prior  to
10    September 1, 1990, which describes or refers to receipts from
11    a  county  or municipal retailers' occupation tax, use tax or
12    service occupation tax which  now  cannot  be  imposed,  such
13    description  or  reference  shall  be  deemed  to include the
14    replacement revenue for  such  abolished  taxes,  distributed
15    from  the  County  and  Mass  Transit  District Fund or Local
16    Government Distributive Fund, as the case may be.
17    (Source: P.A. 90-491, eff. 1-1-98.)

18        Section 5.  The  Use  Tax  Act  is  amended  by  changing
19    Sections 3-10 and 9 as follows:

20        (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
21        Sec.  3-10.   Rate  of tax.  Unless otherwise provided in
22    this Section, the tax imposed by this Act is at the  rate  of
23    6.25%  of  either the selling price or the fair market value,
24    if any, of the tangible  personal  property.   In  all  cases
25    where  property  functionally used or consumed is the same as
26    the property that was purchased at retail, then  the  tax  is
27    imposed  on  the selling price of the property.  In all cases
28    where property functionally used or consumed is a  by-product
29    or  waste  product  that  has  been refined, manufactured, or
30    produced from property purchased at retail, then the  tax  is
31    imposed on the lower of the fair market value, if any, of the
32    specific  property  so  used  in this State or on the selling
 
                            -8-            LRB9110257SMdvam20
 1    price of the property purchased at retail.  For  purposes  of
 2    this  Section  "fair  market  value" means the price at which
 3    property would change hands between a  willing  buyer  and  a
 4    willing  seller, neither being under any compulsion to buy or
 5    sell and both having reasonable  knowledge  of  the  relevant
 6    facts. The fair market value shall be established by Illinois
 7    sales   by   the  taxpayer  of  the  same  property  as  that
 8    functionally used or consumed, or if there are no such  sales
 9    by  the  taxpayer,  then  comparable  sales  or  purchases of
10    property of like kind and character in Illinois.
11        Beginning on July 1, 2000 and through December 31,  2000,
12    with  respect to motor fuel, as defined in Section 1.1 of the
13    Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
14    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
15        With  respect  to  gasohol,  the  tax imposed by this Act
16    applies to 70% of the proceeds of  sales  made  on  or  after
17    January  1, 1990, and before July 1, 2003, and to 100% of the
18    proceeds of sales made thereafter.
19        With respect to food for human consumption that is to  be
20    consumed  off  the  premises  where  it  is  sold (other than
21    alcoholic beverages, soft drinks,  and  food  that  has  been
22    prepared  for  immediate  consumption)  and  prescription and
23    nonprescription   medicines,   drugs,   medical   appliances,
24    modifications to a motor vehicle for the purpose of rendering
25    it usable by a disabled person, and  insulin,  urine  testing
26    materials, syringes, and needles used by diabetics, for human
27    use,  the  tax is imposed at the rate of 1%. For the purposes
28    of this Section, the term "soft drinks" means  any  complete,
29    finished,    ready-to-use,   non-alcoholic   drink,   whether
30    carbonated or not, including but not limited to  soda  water,
31    cola, fruit juice, vegetable juice, carbonated water, and all
32    other  preparations commonly known as soft drinks of whatever
33    kind or description that  are  contained  in  any  closed  or
34    sealed bottle, can, carton, or container, regardless of size.
 
                            -9-            LRB9110257SMdvam20
 1    "Soft  drinks"  does  not include coffee, tea, non-carbonated
 2    water, infant formula, milk or milk products  as  defined  in
 3    the Grade A Pasteurized Milk and Milk Products Act, or drinks
 4    containing 50% or more natural fruit or vegetable juice.
 5        Notwithstanding  any  other provisions of this Act, "food
 6    for human consumption that is to be consumed off the premises
 7    where it is sold" includes all food sold  through  a  vending
 8    machine,  except  soft  drinks  and  food  products  that are
 9    dispensed hot from  a  vending  machine,  regardless  of  the
10    location of the vending machine.
11        If  the  property  that  is  purchased  at  retail from a
12    retailer  is  acquired  outside  Illinois  and  used  outside
13    Illinois before being brought to Illinois for use here and is
14    taxable under this Act, the "selling price" on which the  tax
15    is  computed  shall be reduced by an amount that represents a
16    reasonable allowance for depreciation for the period of prior
17    out-of-state use.
18    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
19    91-51, eff. 6-30-99.)

20        (35 ILCS 105/9) (from Ch. 120, par. 439.9)
21        Sec.   9.  Except   as  to  motor  vehicles,  watercraft,
22    aircraft, and trailers that are  required  to  be  registered
23    with  an  agency  of  this  State,  each retailer required or
24    authorized to collect the tax imposed by this Act  shall  pay
25    to the Department the amount of such tax (except as otherwise
26    provided)  at the time when he is required to file his return
27    for the period during which such tax was  collected,  less  a
28    discount  of  2.1% prior to January 1, 1990, and 1.75% on and
29    after January 1, 1990, or $5 per calendar year, whichever  is
30    greater,  which  is  allowed  to  reimburse  the retailer for
31    expenses incurred in collecting  the  tax,  keeping  records,
32    preparing and filing returns, remitting the tax and supplying
33    data  to the Department on request.  In the case of retailers
 
                            -10-           LRB9110257SMdvam20
 1    who report and pay the tax on a  transaction  by  transaction
 2    basis,  as  provided  in this Section, such discount shall be
 3    taken with each such tax  remittance  instead  of  when  such
 4    retailer  files  his  periodic  return.   A retailer need not
 5    remit that part of any tax collected by  him  to  the  extent
 6    that  he  is required to remit and does remit the tax imposed
 7    by the Retailers' Occupation Tax Act,  with  respect  to  the
 8    sale of the same property.
 9        Where  such  tangible  personal  property is sold under a
10    conditional sales contract, or under any other form  of  sale
11    wherein  the payment of the principal sum, or a part thereof,
12    is extended beyond the close of  the  period  for  which  the
13    return  is filed, the retailer, in collecting the tax (except
14    as to motor vehicles, watercraft, aircraft, and trailers that
15    are required to be registered with an agency of this  State),
16    may  collect  for  each  tax  return  period,  only  the  tax
17    applicable  to  that  part  of  the  selling  price  actually
18    received during such tax return period.
19        Except  as  provided  in  this  Section, on or before the
20    twentieth day of each calendar  month,  such  retailer  shall
21    file  a return for the preceding calendar month.  Such return
22    shall be filed on forms  prescribed  by  the  Department  and
23    shall   furnish   such  information  as  the  Department  may
24    reasonably require.
25        The Department may require  returns  to  be  filed  on  a
26    quarterly  basis.  If so required, a return for each calendar
27    quarter shall be filed on or before the twentieth day of  the
28    calendar  month  following  the end of such calendar quarter.
29    The taxpayer shall also file a return with the Department for
30    each of the first two months of each calendar quarter, on  or
31    before  the  twentieth  day  of the following calendar month,
32    stating:
33             1.  The name of the seller;
34             2.  The address of the principal place  of  business
 
                            -11-           LRB9110257SMdvam20
 1        from which he engages in the business of selling tangible
 2        personal property at retail in this State;
 3             3.  The total amount of taxable receipts received by
 4        him  during  the  preceding  calendar month from sales of
 5        tangible personal property by him during  such  preceding
 6        calendar  month,  including receipts from charge and time
 7        sales, but less all deductions allowed by law;
 8             4.  The amount of credit provided in Section  2d  of
 9        this Act;
10             5.  The amount of tax due;
11             5-5.  The signature of the taxpayer; and
12             6.  Such   other   reasonable   information  as  the
13        Department may require.
14        If a taxpayer fails to sign a return within 30 days after
15    the proper notice and demand for signature by the Department,
16    the return shall be considered valid and any amount shown  to
17    be due on the return shall be deemed assessed.
18        Beginning  October 1, 1993, a taxpayer who has an average
19    monthly tax liability of $150,000  or  more  shall  make  all
20    payments  required  by  rules of the Department by electronic
21    funds transfer. Beginning October 1, 1994, a taxpayer who has
22    an average monthly tax liability of $100,000  or  more  shall
23    make  all  payments  required  by  rules of the Department by
24    electronic funds  transfer.  Beginning  October  1,  1995,  a
25    taxpayer  who has an average monthly tax liability of $50,000
26    or more shall make all payments  required  by  rules  of  the
27    Department by electronic funds transfer. Beginning October 1,
28    2000,  a taxpayer who has an annual tax liability of $200,000
29    or more shall make all payments  required  by  rules  of  the
30    Department  by  electronic  funds transfer.  The term "annual
31    tax liability" shall be the sum of the taxpayer's liabilities
32    under  this  Act,  and  under  all  other  State  and   local
33    occupation  and  use tax laws administered by the Department,
34    for  the  immediately  preceding  calendar  year.  The   term
 
                            -12-           LRB9110257SMdvam20
 1    "average   monthly  tax  liability"  means  the  sum  of  the
 2    taxpayer's liabilities under this Act, and  under  all  other
 3    State  and  local occupation and use tax laws administered by
 4    the Department, for the immediately preceding  calendar  year
 5    divided by 12.
 6        Before  August  1  of  each  year  beginning in 1993, the
 7    Department  shall  notify  all  taxpayers  required  to  make
 8    payments by electronic funds transfer. All taxpayers required
 9    to make payments by  electronic  funds  transfer  shall  make
10    those payments for a minimum of one year beginning on October
11    1.
12        Any  taxpayer not required to make payments by electronic
13    funds transfer may make payments by electronic funds transfer
14    with the permission of the Department.
15        All taxpayers required  to  make  payment  by  electronic
16    funds  transfer  and  any taxpayers authorized to voluntarily
17    make payments by electronic funds transfer shall  make  those
18    payments in the manner authorized by the Department.
19        The Department shall adopt such rules as are necessary to
20    effectuate  a  program  of  electronic funds transfer and the
21    requirements of this Section.
22        Before October 1, 2000, if the taxpayer's average monthly
23    tax  liability  to  the  Department  under  this   Act,   the
24    Retailers'  Occupation  Tax  Act,  the Service Occupation Tax
25    Act, the Service Use Tax Act was $10,000 or more  during  the
26    preceding  4  complete  calendar  quarters,  he  shall file a
27    return with the Department each month by the 20th day of  the
28    month   next  following  the  month  during  which  such  tax
29    liability  is  incurred  and  shall  make  payments  to   the
30    Department  on  or before the 7th, 15th, 22nd and last day of
31    the month during which such liability  is  incurred.  On  and
32    after  October 1, 2000, if the taxpayer's average monthly tax
33    liability to the Department under this  Act,  the  Retailers'
34    Occupation  Tax  Act, the Service Occupation Tax Act, and the
 
                            -13-           LRB9110257SMdvam20
 1    Service Use Tax Act was $20,000 or more during the  preceding
 2    4 complete calendar quarters, he shall file a return with the
 3    Department  each  month  by  the  20th  day of the month next
 4    following the  month  during  which  such  tax  liability  is
 5    incurred  and  shall  make  payment  to  the Department on or
 6    before the 7th, 15th, 22nd and  last  day  of  or  the  month
 7    during  which such liability is incurred. If the month during
 8    which such tax liability is incurred began prior  to  January
 9    1,  1985,  each payment shall be in an amount equal to 1/4 of
10    the taxpayer's actual liability for the month  or  an  amount
11    set  by  the  Department  not  to  exceed  1/4 of the average
12    monthly liability of the taxpayer to the Department  for  the
13    preceding  4  complete calendar quarters (excluding the month
14    of highest liability and the month  of  lowest  liability  in
15    such  4  quarter period).  If the month during which such tax
16    liability is incurred begins on or after January 1, 1985, and
17    prior to January 1, 1987, each payment shall be in an  amount
18    equal  to  22.5%  of  the taxpayer's actual liability for the
19    month or 27.5% of  the  taxpayer's  liability  for  the  same
20    calendar  month  of  the preceding year.  If the month during
21    which such tax liability  is  incurred  begins  on  or  after
22    January  1,  1987, and prior to January 1, 1988, each payment
23    shall be in an amount equal to 22.5% of the taxpayer's actual
24    liability for the month or 26.25% of the taxpayer's liability
25    for the same calendar month of the preceding  year.   If  the
26    month  during  which such tax liability is incurred begins on
27    or after January 1, 1988, and prior to January  1,  1989,  or
28    begins  on or after January 1, 1996, each payment shall be in
29    an amount equal to 22.5% of the taxpayer's  actual  liability
30    for the month or 25% of the taxpayer's liability for the same
31    calendar  month  of  the preceding year.  If the month during
32    which such tax liability  is  incurred  begins  on  or  after
33    January  1,  1989, and prior to January 1, 1996, each payment
34    shall be in an amount equal to 22.5% of the taxpayer's actual
 
                            -14-           LRB9110257SMdvam20
 1    liability for the month or 25% of  the  taxpayer's  liability
 2    for  the same calendar month of the preceding year or 100% of
 3    the taxpayer's  actual  liability  for  the  quarter  monthly
 4    reporting   period.   The  amount  of  such  quarter  monthly
 5    payments shall be credited against the final tax liability of
 6    the taxpayer's return for  that  month.   Before  October  1,
 7    2000,  once  applicable,  the  requirement  of  the making of
 8    quarter monthly payments to  the  Department  shall  continue
 9    until  such  taxpayer's  average  monthly  liability  to  the
10    Department  during the preceding 4 complete calendar quarters
11    (excluding the month of highest liability and  the  month  of
12    lowest   liability)  is  less  than  $9,000,  or  until  such
13    taxpayer's average monthly liability  to  the  Department  as
14    computed  for  each  calendar  quarter  of  the  4  preceding
15    complete  calendar  quarter  period  is  less  than  $10,000.
16    However,  if  a  taxpayer  can  show  the  Department  that a
17    substantial change in the taxpayer's  business  has  occurred
18    which  causes  the  taxpayer  to  anticipate that his average
19    monthly tax liability for the reasonably  foreseeable  future
20    will fall below the $10,000 threshold stated above, then such
21    taxpayer  may  petition  the  Department  for  change in such
22    taxpayer's reporting status. On and after  October  1,  2000,
23    once  applicable,  the  requirement  of the making of quarter
24    monthly payments to the Department shall continue until  such
25    taxpayer's average monthly liability to the Department during
26    the  preceding  4  complete  calendar quarters (excluding the
27    month of highest liability and the month of lowest liability)
28    is less than $19,000 or until such taxpayer's average monthly
29    liability to the Department as  computed  for  each  calendar
30    quarter  of  the 4 preceding complete calendar quarter period
31    is less than $20,000.  However, if a taxpayer  can  show  the
32    Department  that  a  substantial  change  in  the  taxpayer's
33    business has occurred which causes the taxpayer to anticipate
34    that  his  average  monthly  tax liability for the reasonably
 
                            -15-           LRB9110257SMdvam20
 1    foreseeable future will  fall  below  the  $20,000  threshold
 2    stated  above, then such taxpayer may petition the Department
 3    for a change  in  such  taxpayer's  reporting  status.    The
 4    Department  shall  change  such  taxpayer's  reporting status
 5    unless it finds that such change is seasonal  in  nature  and
 6    not  likely  to  be  long  term.  If any such quarter monthly
 7    payment is not paid at the time or in the amount required  by
 8    this Section, then the taxpayer shall be liable for penalties
 9    and interest on the difference between the minimum amount due
10    and  the  amount of such quarter monthly payment actually and
11    timely paid, except insofar as the  taxpayer  has  previously
12    made  payments  for that month to the Department in excess of
13    the minimum payments  previously  due  as  provided  in  this
14    Section.    The  Department  shall  make reasonable rules and
15    regulations to govern the quarter monthly payment amount  and
16    quarter monthly payment dates for taxpayers who file on other
17    than a calendar monthly basis.
18        If  any such payment provided for in this Section exceeds
19    the taxpayer's liabilities under  this  Act,  the  Retailers'
20    Occupation  Tax  Act,  the Service Occupation Tax Act and the
21    Service Use Tax Act, as shown by an original monthly  return,
22    the   Department   shall  issue  to  the  taxpayer  a  credit
23    memorandum no later than 30 days after the date  of  payment,
24    which  memorandum  may  be  submitted  by the taxpayer to the
25    Department in payment of tax  liability  subsequently  to  be
26    remitted  by the taxpayer to the Department or be assigned by
27    the taxpayer to  a  similar  taxpayer  under  this  Act,  the
28    Retailers' Occupation Tax Act, the Service Occupation Tax Act
29    or  the  Service  Use  Tax Act, in accordance with reasonable
30    rules and regulations to be  prescribed  by  the  Department,
31    except  that  if  such excess payment is shown on an original
32    monthly return and is made after December 31, 1986, no credit
33    memorandum shall be issued, unless requested by the taxpayer.
34    If no such request is made,  the  taxpayer  may  credit  such
 
                            -16-           LRB9110257SMdvam20
 1    excess  payment  against  tax  liability  subsequently  to be
 2    remitted by the taxpayer to the Department  under  this  Act,
 3    the Retailers' Occupation Tax Act, the Service Occupation Tax
 4    Act or the Service Use Tax Act, in accordance with reasonable
 5    rules  and  regulations prescribed by the Department.  If the
 6    Department subsequently determines that all or  any  part  of
 7    the  credit  taken  was not actually due to the taxpayer, the
 8    taxpayer's 2.1% or 1.75% vendor's discount shall  be  reduced
 9    by  2.1%  or 1.75% of the difference between the credit taken
10    and that actually due, and the taxpayer shall be  liable  for
11    penalties and interest on such difference.
12        If  the  retailer is otherwise required to file a monthly
13    return and if the retailer's average monthly tax liability to
14    the Department does  not  exceed  $200,  the  Department  may
15    authorize  his returns to be filed on a quarter annual basis,
16    with the return for January, February, and March of  a  given
17    year  being due by April 20 of such year; with the return for
18    April, May and June of a given year being due by July  20  of
19    such  year; with the return for July, August and September of
20    a given year being due by October 20 of such year,  and  with
21    the return for October, November and December of a given year
22    being due by January 20 of the following year.
23        If  the  retailer is otherwise required to file a monthly
24    or quarterly return and if the retailer's average monthly tax
25    liability  to  the  Department  does  not  exceed  $50,   the
26    Department may authorize his returns to be filed on an annual
27    basis,  with the return for a given year being due by January
28    20 of the following year.
29        Such quarter annual and annual returns, as  to  form  and
30    substance,  shall  be  subject  to  the  same requirements as
31    monthly returns.
32        Notwithstanding  any  other   provision   in   this   Act
33    concerning  the  time  within  which  a retailer may file his
34    return, in the case of any retailer who ceases to engage in a
 
                            -17-           LRB9110257SMdvam20
 1    kind of business  which  makes  him  responsible  for  filing
 2    returns  under  this  Act,  such  retailer shall file a final
 3    return under this Act with the Department not more  than  one
 4    month after discontinuing such business.
 5        In  addition, with respect to motor vehicles, watercraft,
 6    aircraft, and trailers that are  required  to  be  registered
 7    with  an  agency  of  this State, every retailer selling this
 8    kind of tangible  personal  property  shall  file,  with  the
 9    Department,  upon a form to be prescribed and supplied by the
10    Department, a separate return for each such item of  tangible
11    personal  property  which  the  retailer  sells,  except that
12    where, in the  same  transaction,  a  retailer  of  aircraft,
13    watercraft,  motor  vehicles  or trailers transfers more than
14    one aircraft, watercraft, motor vehicle or trailer to another
15    aircraft, watercraft, motor vehicle or trailer  retailer  for
16    the  purpose of resale, that seller for resale may report the
17    transfer of all the aircraft, watercraft, motor  vehicles  or
18    trailers  involved  in  that transaction to the Department on
19    the same uniform invoice-transaction reporting  return  form.
20    For  purposes  of this Section, "watercraft" means a Class 2,
21    Class 3, or Class 4 watercraft as defined in Section  3-2  of
22    the  Boat Registration and Safety Act, a personal watercraft,
23    or any boat equipped with an inboard motor.
24        The transaction reporting return in  the  case  of  motor
25    vehicles  or trailers that are required to be registered with
26    an agency of this State, shall be the same  document  as  the
27    Uniform  Invoice referred to in Section 5-402 of the Illinois
28    Vehicle Code and must  show  the  name  and  address  of  the
29    seller;  the name and address of the purchaser; the amount of
30    the  selling  price  including  the  amount  allowed  by  the
31    retailer for traded-in property, if any; the  amount  allowed
32    by the retailer for the traded-in tangible personal property,
33    if  any,  to the extent to which Section 2 of this Act allows
34    an exemption for the value of traded-in property; the balance
 
                            -18-           LRB9110257SMdvam20
 1    payable after deducting  such  trade-in  allowance  from  the
 2    total  selling price; the amount of tax due from the retailer
 3    with respect to such transaction; the amount of tax collected
 4    from the purchaser by the retailer on  such  transaction  (or
 5    satisfactory  evidence  that  such  tax  is  not  due in that
 6    particular instance, if that is claimed to be the fact);  the
 7    place  and  date  of the sale; a sufficient identification of
 8    the property sold; such other information as is  required  in
 9    Section  5-402  of  the Illinois Vehicle Code, and such other
10    information as the Department may reasonably require.
11        The  transaction  reporting  return  in   the   case   of
12    watercraft and aircraft must show the name and address of the
13    seller;  the name and address of the purchaser; the amount of
14    the  selling  price  including  the  amount  allowed  by  the
15    retailer for traded-in property, if any; the  amount  allowed
16    by the retailer for the traded-in tangible personal property,
17    if  any,  to the extent to which Section 2 of this Act allows
18    an exemption for the value of traded-in property; the balance
19    payable after deducting  such  trade-in  allowance  from  the
20    total  selling price; the amount of tax due from the retailer
21    with respect to such transaction; the amount of tax collected
22    from the purchaser by the retailer on  such  transaction  (or
23    satisfactory  evidence  that  such  tax  is  not  due in that
24    particular instance, if that is claimed to be the fact);  the
25    place  and  date  of the sale, a sufficient identification of
26    the  property  sold,  and  such  other  information  as   the
27    Department may reasonably require.
28        Such  transaction  reporting  return  shall  be filed not
29    later than 20 days after the date of  delivery  of  the  item
30    that  is  being sold, but may be filed by the retailer at any
31    time  sooner  than  that  if  he  chooses  to  do  so.    The
32    transaction  reporting  return and tax remittance or proof of
33    exemption from the tax that is imposed by  this  Act  may  be
34    transmitted to the Department by way of the State agency with
 
                            -19-           LRB9110257SMdvam20
 1    which,  or  State  officer  with  whom, the tangible personal
 2    property  must  be  titled  or  registered  (if  titling   or
 3    registration  is  required) if the Department and such agency
 4    or State officer determine that this procedure will  expedite
 5    the processing of applications for title or registration.
 6        With each such transaction reporting return, the retailer
 7    shall  remit  the  proper  amount of tax due (or shall submit
 8    satisfactory evidence that the sale is not taxable if that is
 9    the case), to the Department or  its  agents,  whereupon  the
10    Department  shall  issue,  in  the  purchaser's  name,  a tax
11    receipt (or a certificate of exemption if the  Department  is
12    satisfied  that the particular sale is tax exempt) which such
13    purchaser may submit to  the  agency  with  which,  or  State
14    officer  with  whom,  he  must title or register the tangible
15    personal  property  that   is   involved   (if   titling   or
16    registration  is  required)  in  support  of such purchaser's
17    application for an Illinois certificate or other evidence  of
18    title or registration to such tangible personal property.
19        No  retailer's failure or refusal to remit tax under this
20    Act precludes a user, who has paid  the  proper  tax  to  the
21    retailer,  from  obtaining  his certificate of title or other
22    evidence of title or registration (if titling or registration
23    is required) upon satisfying the Department  that  such  user
24    has paid the proper tax (if tax is due) to the retailer.  The
25    Department  shall  adopt  appropriate  rules to carry out the
26    mandate of this paragraph.
27        If the user who would otherwise pay tax to  the  retailer
28    wants  the transaction reporting return filed and the payment
29    of tax or proof of exemption made to  the  Department  before
30    the  retailer  is willing to take these actions and such user
31    has not paid the tax to the retailer, such user  may  certify
32    to  the fact of such delay by the retailer, and may (upon the
33    Department   being   satisfied   of   the   truth   of   such
34    certification)  transmit  the  information  required  by  the
 
                            -20-           LRB9110257SMdvam20
 1    transaction reporting return and the remittance  for  tax  or
 2    proof  of exemption directly to the Department and obtain his
 3    tax receipt or exemption determination, in  which  event  the
 4    transaction  reporting  return  and  tax remittance (if a tax
 5    payment was required) shall be credited by the Department  to
 6    the  proper  retailer's  account  with  the  Department,  but
 7    without  the  2.1%  or  1.75%  discount  provided for in this
 8    Section being allowed.  When the user pays the  tax  directly
 9    to  the  Department,  he shall pay the tax in the same amount
10    and in the same form in which it would be remitted if the tax
11    had been remitted to the Department by the retailer.
12        Where a retailer collects the tax  with  respect  to  the
13    selling  price  of  tangible personal property which he sells
14    and the purchaser thereafter returns such  tangible  personal
15    property  and  the retailer refunds the selling price thereof
16    to the purchaser, such retailer shall  also  refund,  to  the
17    purchaser,  the  tax  so  collected  from the purchaser. When
18    filing his return for the period in which he refunds such tax
19    to the purchaser, the retailer may deduct the amount  of  the
20    tax  so  refunded  by him to the purchaser from any other use
21    tax which such retailer may be required to pay  or  remit  to
22    the Department, as shown by such return, if the amount of the
23    tax  to be deducted was previously remitted to the Department
24    by  such  retailer.   If  the  retailer  has  not  previously
25    remitted the amount of such tax  to  the  Department,  he  is
26    entitled  to  no deduction under this Act upon refunding such
27    tax to the purchaser.
28        Any retailer filing a return  under  this  Section  shall
29    also  include  (for  the  purpose  of paying tax thereon) the
30    total tax covered by such return upon the  selling  price  of
31    tangible  personal property purchased by him at retail from a
32    retailer, but as to which the tax imposed by this Act was not
33    collected from the retailer  filing  such  return,  and  such
34    retailer shall remit the amount of such tax to the Department
 
                            -21-           LRB9110257SMdvam20
 1    when filing such return.
 2        If  experience  indicates  such action to be practicable,
 3    the Department may prescribe and  furnish  a  combination  or
 4    joint return which will enable retailers, who are required to
 5    file   returns   hereunder  and  also  under  the  Retailers'
 6    Occupation Tax Act, to furnish  all  the  return  information
 7    required by both Acts on the one form.
 8        Where  the retailer has more than one business registered
 9    with the Department under separate  registration  under  this
10    Act,  such retailer may not file each return that is due as a
11    single return covering all such  registered  businesses,  but
12    shall   file   separate  returns  for  each  such  registered
13    business.
14        Beginning January 1,  1990,  each  month  the  Department
15    shall  pay  into the State and Local Sales Tax Reform Fund, a
16    special fund in the State Treasury which is  hereby  created,
17    the  net revenue realized for the preceding month from the 1%
18    tax on sales of food for human consumption  which  is  to  be
19    consumed  off  the  premises  where  it  is  sold (other than
20    alcoholic beverages, soft drinks  and  food  which  has  been
21    prepared  for  immediate  consumption)  and  prescription and
22    nonprescription  medicines,  drugs,  medical  appliances  and
23    insulin, urine testing materials, syringes and  needles  used
24    by diabetics.
25        Beginning  January  1,  1990,  each  month the Department
26    shall pay into the County and Mass Transit District  Fund  4%
27    of  the net revenue realized for the preceding month from the
28    6.25% general rate on the selling price of tangible  personal
29    property which is purchased outside Illinois at retail from a
30    retailer  and  which  is titled or registered by an agency of
31    this State's government.
32        Beginning January 1,  1990,  each  month  the  Department
33    shall  pay  into the State and Local Sales Tax Reform Fund, a
34    special fund in the State Treasury, 20% of  the  net  revenue
 
                            -22-           LRB9110257SMdvam20
 1    realized  for the preceding month from the 6.25% general rate
 2    on the selling price of  tangible  personal  property,  other
 3    than  tangible  personal  property which is purchased outside
 4    Illinois at retail from a retailer and  which  is  titled  or
 5    registered by an agency of this State's government.
 6        Beginning August 1, 2000, each month the Department shall
 7    pay  into  the  State and Local Sales Tax Reform Fund 100% of
 8    the net revenue realized for the  preceding  month  from  the
 9    1.25% rate on the selling price of motor fuel and gasohol.
10        Beginning  January  1,  1990,  each  month the Department
11    shall pay into the Local Government Tax Fund 16% of  the  net
12    revenue  realized  for  the  preceding  month  from the 6.25%
13    general rate  on  the  selling  price  of  tangible  personal
14    property which is purchased outside Illinois at retail from a
15    retailer  and  which  is titled or registered by an agency of
16    this State's government.
17        Of the remainder of the moneys received by the Department
18    pursuant to this Act, (a) 1.75% thereof shall  be  paid  into
19    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
20    and on and after July 1, 1989, 3.8%  thereof  shall  be  paid
21    into  the  Build Illinois Fund; provided, however, that if in
22    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
23    as the case may be, of the moneys received by the  Department
24    and required to be paid into the Build Illinois Fund pursuant
25    to  Section 3 of the Retailers' Occupation Tax Act, Section 9
26    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
27    Section 9 of the Service Occupation Tax Act, such Acts  being
28    hereinafter  called the "Tax Acts" and such aggregate of 2.2%
29    or 3.8%, as the case may  be,  of  moneys  being  hereinafter
30    called  the  "Tax Act Amount", and (2) the amount transferred
31    to the Build Illinois Fund from the State and Local Sales Tax
32    Reform Fund shall be less than the  Annual  Specified  Amount
33    (as  defined  in  Section  3 of the Retailers' Occupation Tax
34    Act), an amount equal to the difference shall be  immediately
 
                            -23-           LRB9110257SMdvam20
 1    paid  into the Build Illinois Fund from other moneys received
 2    by the Department pursuant  to  the  Tax  Acts;  and  further
 3    provided,  that  if on the last business day of any month the
 4    sum of (1) the Tax Act Amount required to be  deposited  into
 5    the  Build  Illinois  Bond Account in the Build Illinois Fund
 6    during such month and (2) the amount transferred during  such
 7    month  to  the  Build  Illinois Fund from the State and Local
 8    Sales Tax Reform Fund shall have been less than 1/12  of  the
 9    Annual  Specified  Amount,  an amount equal to the difference
10    shall be immediately paid into the Build Illinois  Fund  from
11    other  moneys  received by the Department pursuant to the Tax
12    Acts; and, further provided,  that  in  no  event  shall  the
13    payments  required  under  the  preceding  proviso  result in
14    aggregate payments into the Build Illinois Fund  pursuant  to
15    this  clause (b) for any fiscal year in excess of the greater
16    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
17    for such fiscal year; and, further provided, that the amounts
18    payable into the Build Illinois Fund under  this  clause  (b)
19    shall be payable only until such time as the aggregate amount
20    on  deposit  under each trust indenture securing Bonds issued
21    and outstanding pursuant to the Build Illinois  Bond  Act  is
22    sufficient, taking into account any future investment income,
23    to  fully provide, in accordance with such indenture, for the
24    defeasance of or the payment of the principal of, premium, if
25    any, and interest on the Bonds secured by such indenture  and
26    on  any  Bonds  expected to be issued thereafter and all fees
27    and costs payable with respect thereto, all as  certified  by
28    the  Director  of  the  Bureau of the Budget.  If on the last
29    business day of any month  in  which  Bonds  are  outstanding
30    pursuant to the Build Illinois Bond Act, the aggregate of the
31    moneys  deposited  in  the Build Illinois Bond Account in the
32    Build Illinois Fund in such month  shall  be  less  than  the
33    amount  required  to  be  transferred  in such month from the
34    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
 
                            -24-           LRB9110257SMdvam20
 1    Retirement  and  Interest  Fund pursuant to Section 13 of the
 2    Build Illinois Bond Act, an amount equal to  such  deficiency
 3    shall  be  immediately paid from other moneys received by the
 4    Department pursuant to the Tax Acts  to  the  Build  Illinois
 5    Fund;  provided,  however, that any amounts paid to the Build
 6    Illinois Fund in any fiscal year pursuant  to  this  sentence
 7    shall be deemed to constitute payments pursuant to clause (b)
 8    of  the  preceding  sentence  and  shall  reduce  the  amount
 9    otherwise payable for such fiscal year pursuant to clause (b)
10    of  the  preceding  sentence.   The  moneys  received  by the
11    Department pursuant to this Act and required to be  deposited
12    into the Build Illinois Fund are subject to the pledge, claim
13    and charge set forth in Section 12 of the Build Illinois Bond
14    Act.
15        Subject  to  payment  of  amounts into the Build Illinois
16    Fund as  provided  in  the  preceding  paragraph  or  in  any
17    amendment  thereto hereafter enacted, the following specified
18    monthly  installment  of  the   amount   requested   in   the
19    certificate  of  the  Chairman  of  the Metropolitan Pier and
20    Exposition Authority provided  under  Section  8.25f  of  the
21    State  Finance  Act, but not in excess of the sums designated
22    as "Total Deposit", shall be deposited in the aggregate  from
23    collections  under Section 9 of the Use Tax Act, Section 9 of
24    the Service Use Tax Act, Section 9 of the Service  Occupation
25    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
26    into the  McCormick  Place  Expansion  Project  Fund  in  the
27    specified fiscal years.
28             Fiscal Year                   Total Deposit
29                 1993                            $0
30                 1994                        53,000,000
31                 1995                        58,000,000
32                 1996                        61,000,000
33                 1997                        64,000,000
34                 1998                        68,000,000
 
                            -25-           LRB9110257SMdvam20
 1                 1999                        71,000,000
 2                 2000                        75,000,000
 3                 2001                        80,000,000
 4                 2002                        84,000,000
 5                 2003                        89,000,000
 6                 2004                        93,000,000
 7                 2005                        97,000,000
 8                 2006                       102,000,000
 9                 2007                       108,000,000
10                 2008                       115,000,000
11                 2009                       120,000,000
12                 2010                       126,000,000
13                 2011                       132,000,000
14                 2012                       138,000,000
15                 2013 and                   145,000,000
16        each fiscal year
17        thereafter that bonds
18        are outstanding under
19        Section 13.2 of the
20        Metropolitan Pier and
21        Exposition Authority
22        Act, but not after fiscal year 2029.
23        Beginning  July 20, 1993 and in each month of each fiscal
24    year thereafter, one-eighth of the amount  requested  in  the
25    certificate  of  the  Chairman  of  the Metropolitan Pier and
26    Exposition Authority for that fiscal year,  less  the  amount
27    deposited  into the McCormick Place Expansion Project Fund by
28    the State Treasurer in the respective month under  subsection
29    (g)  of  Section  13  of the Metropolitan Pier and Exposition
30    Authority Act, plus cumulative deficiencies in  the  deposits
31    required  under  this  Section for previous months and years,
32    shall be deposited into the McCormick Place Expansion Project
33    Fund, until the full amount requested for  the  fiscal  year,
34    but  not  in  excess  of the amount specified above as "Total
 
                            -26-           LRB9110257SMdvam20
 1    Deposit", has been deposited.
 2        Subject to payment of amounts  into  the  Build  Illinois
 3    Fund  and the McCormick Place Expansion Project Fund pursuant
 4    to the preceding  paragraphs  or  in  any  amendment  thereto
 5    hereafter  enacted,  each month the Department shall pay into
 6    the Local Government Distributive Fund .4% of the net revenue
 7    realized for the preceding month from the 5% general rate, or
 8    .4% of 80% of the net  revenue  realized  for  the  preceding
 9    month from the 6.25% general rate, as the case may be, on the
10    selling  price  of  tangible  personal  property which amount
11    shall, subject to appropriation, be distributed  as  provided
12    in Section 2 of the State Revenue Sharing Act. No payments or
13    distributions pursuant to this paragraph shall be made if the
14    tax  imposed  by  this  Act  on  photoprocessing  products is
15    declared unconstitutional, or if the proceeds from  such  tax
16    are unavailable for distribution because of litigation.
17        Subject  to  payment  of  amounts into the Build Illinois
18    Fund, the McCormick Place Expansion  Project  Fund,  and  the
19    Local  Government Distributive Fund pursuant to the preceding
20    paragraphs or in any amendments  thereto  hereafter  enacted,
21    beginning  July  1, 1993, the Department shall each month pay
22    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
23    revenue  realized  for  the  preceding  month  from the 6.25%
24    general rate  on  the  selling  price  of  tangible  personal
25    property.
26        Of the remainder of the moneys received by the Department
27    pursuant  to  this  Act,  75%  thereof shall be paid into the
28    State Treasury and 25% shall be reserved in a special account
29    and used only for the transfer to the Common School  Fund  as
30    part of the monthly transfer from the General Revenue Fund in
31    accordance with Section 8a of the State Finance Act.
32        As  soon  as  possible after the first day of each month,
33    upon  certification  of  the  Department  of   Revenue,   the
34    Comptroller  shall  order transferred and the Treasurer shall
 
                            -27-           LRB9110257SMdvam20
 1    transfer from the General Revenue Fund to the Motor Fuel  Tax
 2    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
 3    realized under this  Act  for  the  second  preceding  month.
 4    Beginning  April 1, 2000, this transfer is no longer required
 5    and shall not be made.
 6        Net revenue realized for a month  shall  be  the  revenue
 7    collected  by the State pursuant to this Act, less the amount
 8    paid out during  that  month  as  refunds  to  taxpayers  for
 9    overpayment of liability.
10        For  greater simplicity of administration, manufacturers,
11    importers and wholesalers whose products are sold  at  retail
12    in Illinois by numerous retailers, and who wish to do so, may
13    assume  the  responsibility  for accounting and paying to the
14    Department all tax accruing under this Act  with  respect  to
15    such  sales,  if  the  retailers who are affected do not make
16    written objection to the Department to this arrangement.
17    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
18    91-37,  eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,   eff.
19    7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)

20        Section  10.   The  Service  Use  Tax  Act  is amended by
21    changing Sections 3-10 and 9 as follows:

22        (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
23        Sec. 3-10.  Rate of tax.  Unless  otherwise  provided  in
24    this  Section,  the tax imposed by this Act is at the rate of
25    6.25% of the selling  price  of  tangible  personal  property
26    transferred  as  an incident to the sale of service, but, for
27    the purpose of computing this tax,  in  no  event  shall  the
28    selling  price be less than the cost price of the property to
29    the serviceman.
30        Beginning on July 1, 2000 and through December 31,  2000,
31    with  respect to motor fuel, as defined in Section 1.1 of the
32    Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
 
                            -28-           LRB9110257SMdvam20
 1    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
 2        With  respect  to gasohol, as defined in the Use Tax Act,
 3    the tax imposed by this Act applies to  70%  of  the  selling
 4    price  of  property transferred as an incident to the sale of
 5    service on or after January 1, 1990, and before July 1, 2003,
 6    and to 100% of the selling price thereafter.
 7        At the election of any  registered  serviceman  made  for
 8    each  fiscal  year,  sales  of service in which the aggregate
 9    annual cost price of tangible personal  property  transferred
10    as  an  incident to the sales of service is less than 35%, or
11    75% in the case of servicemen transferring prescription drugs
12    or servicemen engaged in  graphic  arts  production,  of  the
13    aggregate  annual  total  gross  receipts  from  all sales of
14    service, the tax imposed by this Act shall be  based  on  the
15    serviceman's  cost  price  of  the tangible personal property
16    transferred as an incident to the sale of those services.
17        The tax shall be imposed  at  the  rate  of  1%  on  food
18    prepared  for  immediate consumption and transferred incident
19    to a sale of service subject  to  this  Act  or  the  Service
20    Occupation  Tax  Act by an entity licensed under the Hospital
21    Licensing Act, the Nursing Home Care Act, or the  Child  Care
22    Act of 1969.  The tax shall also be imposed at the rate of 1%
23    on  food for human consumption that is to be consumed off the
24    premises where it is sold (other  than  alcoholic  beverages,
25    soft  drinks,  and  food that has been prepared for immediate
26    consumption and is not otherwise included in this  paragraph)
27    and   prescription   and  nonprescription  medicines,  drugs,
28    medical appliances, modifications to a motor vehicle for  the
29    purpose  of  rendering  it  usable  by a disabled person, and
30    insulin, urine testing materials, syringes, and needles  used
31    by  diabetics,  for  human  use.  For  the  purposes  of this
32    Section, the term "soft drinks" means any complete, finished,
33    ready-to-use, non-alcoholic drink, whether carbonated or not,
34    including but not limited to soda water, cola,  fruit  juice,
 
                            -29-           LRB9110257SMdvam20
 1    vegetable juice, carbonated water, and all other preparations
 2    commonly known as soft drinks of whatever kind or description
 3    that  are  contained  in  any  closed  or sealed bottle, can,
 4    carton, or container, regardless of size.  "Soft drinks" does
 5    not  include  coffee,  tea,  non-carbonated   water,   infant
 6    formula,  milk  or  milk  products  as defined in the Grade A
 7    Pasteurized Milk and Milk Products Act, or drinks  containing
 8    50% or more natural fruit or vegetable juice.
 9        Notwithstanding  any  other provisions of this Act, "food
10    for human consumption that is to be consumed off the premises
11    where it is sold" includes all food sold  through  a  vending
12    machine,  except  soft  drinks  and  food  products  that are
13    dispensed hot from  a  vending  machine,  regardless  of  the
14    location of the vending machine.
15        If  the  property  that  is acquired from a serviceman is
16    acquired outside Illinois and used  outside  Illinois  before
17    being  brought  to Illinois for use here and is taxable under
18    this Act, the "selling price" on which the  tax  is  computed
19    shall  be  reduced  by an amount that represents a reasonable
20    allowance  for  depreciation  for   the   period   of   prior
21    out-of-state use.
22    (Source: P.A.  90-605,  eff.  6-30-98;  90-606, eff. 6-30-98;
23    91-51, eff. 6-30-99; 91-541, eff. 8-13-99.)

24        (35 ILCS 110/9) (from Ch. 120, par. 439.39)
25        Sec.  9.  Each  serviceman  required  or  authorized   to
26    collect  the  tax  herein imposed shall pay to the Department
27    the amount of such tax (except as otherwise provided) at  the
28    time  when  he  is required to file his return for the period
29    during which such tax was collected, less a discount of  2.1%
30    prior  to  January  1, 1990 and 1.75% on and after January 1,
31    1990, or $5 per calendar year, whichever is greater, which is
32    allowed to reimburse the serviceman for expenses incurred  in
33    collecting  the  tax,  keeping  records, preparing and filing
 
                            -30-           LRB9110257SMdvam20
 1    returns,  remitting  the  tax  and  supplying  data  to   the
 2    Department  on request. A serviceman need not remit that part
 3    of any tax collected by him to the extent that he is required
 4    to pay and does pay the tax imposed by the Service Occupation
 5    Tax Act with respect to his sale  of  service  involving  the
 6    incidental transfer by him of the same property.
 7        Except  as  provided  hereinafter  in this Section, on or
 8    before  the  twentieth  day  of  each  calendar  month,  such
 9    serviceman shall file a return  for  the  preceding  calendar
10    month  in accordance with reasonable Rules and Regulations to
11    be promulgated by the Department. Such return shall be  filed
12    on a form prescribed by the Department and shall contain such
13    information as the Department may reasonably require.
14        The  Department  may  require  returns  to  be filed on a
15    quarterly basis.  If so required, a return for each  calendar
16    quarter  shall be filed on or before the twentieth day of the
17    calendar month following the end of  such  calendar  quarter.
18    The taxpayer shall also file a return with the Department for
19    each  of the first two months of each calendar quarter, on or
20    before the twentieth day of  the  following  calendar  month,
21    stating:
22             1.  The name of the seller;
23             2.  The  address  of the principal place of business
24        from which he engages in business as a serviceman in this
25        State;
26             3.  The total amount of taxable receipts received by
27        him  during  the  preceding  calendar  month,   including
28        receipts  from  charge  and  time  sales,  but  less  all
29        deductions allowed by law;
30             4.  The  amount  of credit provided in Section 2d of
31        this Act;
32             5.  The amount of tax due;
33             5-5.  The signature of the taxpayer; and
34             6.  Such  other  reasonable   information   as   the
 
                            -31-           LRB9110257SMdvam20
 1        Department may require.
 2        If a taxpayer fails to sign a return within 30 days after
 3    the proper notice and demand for signature by the Department,
 4    the  return shall be considered valid and any amount shown to
 5    be due on the return shall be deemed assessed.
 6        Beginning October 1, 1993, a taxpayer who has an  average
 7    monthly  tax  liability  of  $150,000  or more shall make all
 8    payments required by rules of the  Department  by  electronic
 9    funds  transfer.   Beginning  October 1, 1994, a taxpayer who
10    has an average monthly tax  liability  of  $100,000  or  more
11    shall  make  all payments required by rules of the Department
12    by electronic funds transfer.  Beginning October 1,  1995,  a
13    taxpayer  who has an average monthly tax liability of $50,000
14    or more shall make all payments  required  by  rules  of  the
15    Department by electronic funds transfer. Beginning October 1,
16    2000,  a taxpayer who has an annual tax liability of $200,000
17    or more shall make all payments  required  by  rules  of  the
18    Department  by  electronic  funds transfer.  The term "annual
19    tax liability" shall be the sum of the taxpayer's liabilities
20    under  this  Act,  and  under  all  other  State  and   local
21    occupation  and  use tax laws administered by the Department,
22    for the  immediately  preceding  calendar  year.    The  term
23    "average   monthly  tax  liability"  means  the  sum  of  the
24    taxpayer's liabilities under this Act, and  under  all  other
25    State  and  local occupation and use tax laws administered by
26    the Department, for the immediately preceding  calendar  year
27    divided by 12.
28        Before  August  1  of  each  year  beginning in 1993, the
29    Department  shall  notify  all  taxpayers  required  to  make
30    payments by electronic funds transfer. All taxpayers required
31    to make payments by  electronic  funds  transfer  shall  make
32    those payments for a minimum of one year beginning on October
33    1.
34        Any  taxpayer not required to make payments by electronic
 
                            -32-           LRB9110257SMdvam20
 1    funds transfer may make payments by electronic funds transfer
 2    with the permission of the Department.
 3        All taxpayers required  to  make  payment  by  electronic
 4    funds  transfer  and  any taxpayers authorized to voluntarily
 5    make payments by electronic funds transfer shall  make  those
 6    payments in the manner authorized by the Department.
 7        The Department shall adopt such rules as are necessary to
 8    effectuate  a  program  of  electronic funds transfer and the
 9    requirements of this Section.
10        If the serviceman is otherwise required to file a monthly
11    return and if the serviceman's average monthly tax  liability
12    to  the  Department  does not exceed $200, the Department may
13    authorize his returns to be filed on a quarter annual  basis,
14    with  the  return  for January, February and March of a given
15    year being due by April 20 of such year; with the return  for
16    April,  May  and June of a given year being due by July 20 of
17    such year; with the return for July, August and September  of
18    a  given  year being due by October 20 of such year, and with
19    the return for October, November and December of a given year
20    being due by January 20 of the following year.
21        If the serviceman is otherwise required to file a monthly
22    or quarterly return and if the serviceman's  average  monthly
23    tax  liability  to  the  Department  does not exceed $50, the
24    Department may authorize his returns to be filed on an annual
25    basis, with the return for a given year being due by  January
26    20 of the following year.
27        Such  quarter  annual  and annual returns, as to form and
28    substance, shall be  subject  to  the  same  requirements  as
29    monthly returns.
30        Notwithstanding   any   other   provision   in  this  Act
31    concerning the time within which a serviceman  may  file  his
32    return, in the case of any serviceman who ceases to engage in
33    a  kind  of  business  which makes him responsible for filing
34    returns under this Act, such serviceman shall  file  a  final
 
                            -33-           LRB9110257SMdvam20
 1    return  under  this  Act  with the Department not more than 1
 2    month after discontinuing such business.
 3        Where a serviceman collects the tax with respect  to  the
 4    selling  price  of  property which he sells and the purchaser
 5    thereafter returns such property and the  serviceman  refunds
 6    the  selling  price thereof to the purchaser, such serviceman
 7    shall also refund, to the purchaser,  the  tax  so  collected
 8    from  the purchaser. When filing his return for the period in
 9    which he refunds such tax to the  purchaser,  the  serviceman
10    may  deduct  the  amount of the tax so refunded by him to the
11    purchaser from any other Service Use Tax, Service  Occupation
12    Tax,   retailers'  occupation  tax  or  use  tax  which  such
13    serviceman may be required to pay or remit to the Department,
14    as shown by such return, provided that the amount of the  tax
15    to  be  deducted  shall  previously have been remitted to the
16    Department by such serviceman. If the  serviceman  shall  not
17    previously  have  remitted  the  amount  of  such  tax to the
18    Department, he shall be entitled to  no  deduction  hereunder
19    upon refunding such tax to the purchaser.
20        Any  serviceman  filing  a  return  hereunder  shall also
21    include the total tax upon  the  selling  price  of  tangible
22    personal  property purchased for use by him as an incident to
23    a sale of service, and such serviceman shall remit the amount
24    of such tax to the Department when filing such return.
25        If experience indicates such action  to  be  practicable,
26    the  Department  may  prescribe  and furnish a combination or
27    joint return which will enable servicemen, who  are  required
28    to   file  returns  hereunder  and  also  under  the  Service
29    Occupation Tax Act, to furnish  all  the  return  information
30    required by both Acts on the one form.
31        Where   the   serviceman   has  more  than  one  business
32    registered with the Department  under  separate  registration
33    hereunder, such serviceman shall not file each return that is
34    due   as   a  single  return  covering  all  such  registered
 
                            -34-           LRB9110257SMdvam20
 1    businesses, but shall file separate  returns  for  each  such
 2    registered business.
 3        Beginning  January  1,  1990,  each  month the Department
 4    shall pay into the State and Local Tax Reform Fund, a special
 5    fund in the State Treasury, the net revenue realized for  the
 6    preceding  month  from  the 1% tax on sales of food for human
 7    consumption which is to be consumed off the premises where it
 8    is sold (other than alcoholic beverages, soft drinks and food
 9    which  has  been  prepared  for  immediate  consumption)  and
10    prescription and nonprescription  medicines,  drugs,  medical
11    appliances and insulin, urine testing materials, syringes and
12    needles used by diabetics.
13        Beginning  January  1,  1990,  each  month the Department
14    shall pay into the State and Local Sales Tax Reform Fund  20%
15    of  the net revenue realized for the preceding month from the
16    6.25%  general  rate  on  transfers  of   tangible   personal
17    property,  other  than  tangible  personal  property which is
18    purchased outside Illinois at  retail  from  a  retailer  and
19    which  is  titled  or registered by an agency of this State's
20    government.
21        Beginning August 1, 2000, each month the Department shall
22    pay into the State and Local Sales Tax Reform  Fund  100%  of
23    the  net  revenue  realized  for the preceding month from the
24    1.25% rate on the selling price of motor fuel and gasohol.
25        Of the remainder of the moneys received by the Department
26    pursuant to this Act, (a)  1.75% thereof shall be  paid  into
27    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
28    and on and after July 1, 1989, 3.8% thereof  shall  be   paid
29    into  the  Build Illinois Fund; provided, however, that if in
30    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
31    as the case may be, of the moneys received by the  Department
32    and required to be paid into the Build Illinois Fund pursuant
33    to  Section 3 of the Retailers' Occupation Tax Act, Section 9
34    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
 
                            -35-           LRB9110257SMdvam20
 1    Section 9 of the Service Occupation Tax Act, such Acts  being
 2    hereinafter  called the "Tax Acts" and such aggregate of 2.2%
 3    or 3.8%, as the case may  be,  of  moneys  being  hereinafter
 4    called  the  "Tax Act Amount", and (2) the amount transferred
 5    to the Build Illinois Fund from the State and Local Sales Tax
 6    Reform Fund shall be less than the Annual  Specified   Amount
 7    (as  defined  in  Section  3 of the Retailers' Occupation Tax
 8    Act), an amount equal to the difference shall be  immediately
 9    paid  into the Build Illinois Fund from other moneys received
10    by the Department pursuant  to  the  Tax  Acts;  and  further
11    provided,  that  if on the last business day of any month the
12    sum of (1) the Tax Act Amount required to be  deposited  into
13    the  Build  Illinois  Bond Account in the Build Illinois Fund
14    during such month and (2) the amount transferred during  such
15    month  to  the  Build  Illinois Fund from the State and Local
16    Sales Tax Reform Fund shall have been less than 1/12  of  the
17    Annual  Specified  Amount,  an amount equal to the difference
18    shall be immediately paid into the Build Illinois  Fund  from
19    other  moneys  received by the Department pursuant to the Tax
20    Acts; and, further provided,  that  in  no  event  shall  the
21    payments  required  under  the  preceding  proviso  result in
22    aggregate payments into the Build Illinois Fund  pursuant  to
23    this  clause (b) for any fiscal year in excess of the greater
24    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
25    for such fiscal year; and, further provided, that the amounts
26    payable into the Build Illinois Fund under  this  clause  (b)
27    shall be payable only until such time as the aggregate amount
28    on  deposit  under each trust indenture securing Bonds issued
29    and outstanding pursuant to the Build Illinois  Bond  Act  is
30    sufficient, taking into account any future investment income,
31    to  fully provide, in accordance with such indenture, for the
32    defeasance of or the payment of the principal of, premium, if
33    any, and interest on the Bonds secured by such indenture  and
34    on  any  Bonds  expected to be issued thereafter and all fees
 
                            -36-           LRB9110257SMdvam20
 1    and costs payable with respect thereto, all as  certified  by
 2    the  Director  of  the  Bureau of the Budget.  If on the last
 3    business day of any month  in  which  Bonds  are  outstanding
 4    pursuant to the Build Illinois Bond Act, the aggregate of the
 5    moneys  deposited  in  the Build Illinois Bond Account in the
 6    Build Illinois Fund in such month  shall  be  less  than  the
 7    amount  required  to  be  transferred  in such month from the
 8    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
 9    Retirement  and  Interest  Fund pursuant to Section 13 of the
10    Build Illinois Bond Act, an amount equal to  such  deficiency
11    shall  be  immediately paid from other moneys received by the
12    Department pursuant to the Tax Acts  to  the  Build  Illinois
13    Fund;  provided,  however, that any amounts paid to the Build
14    Illinois Fund in any fiscal year pursuant  to  this  sentence
15    shall be deemed to constitute payments pursuant to clause (b)
16    of  the  preceding  sentence  and  shall  reduce  the  amount
17    otherwise payable for such fiscal year pursuant to clause (b)
18    of  the  preceding  sentence.   The  moneys  received  by the
19    Department pursuant to this Act and required to be  deposited
20    into the Build Illinois Fund are subject to the pledge, claim
21    and charge set forth in Section 12 of the Build Illinois Bond
22    Act.
23        Subject  to  payment  of  amounts into the Build Illinois
24    Fund as  provided  in  the  preceding  paragraph  or  in  any
25    amendment  thereto hereafter enacted, the following specified
26    monthly  installment  of  the   amount   requested   in   the
27    certificate  of  the  Chairman  of  the Metropolitan Pier and
28    Exposition Authority provided  under  Section  8.25f  of  the
29    State  Finance  Act, but not in excess of the sums designated
30    as "Total Deposit", shall be deposited in the aggregate  from
31    collections  under Section 9 of the Use Tax Act, Section 9 of
32    the Service Use Tax Act, Section 9 of the Service  Occupation
33    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
34    into the  McCormick  Place  Expansion  Project  Fund  in  the
 
                            -37-           LRB9110257SMdvam20
 1    specified fiscal years.
 2          Fiscal Year                     Total Deposit
 3             1993                                   $0
 4             1994                           53,000,000
 5             1995                           58,000,000
 6             1996                           61,000,000
 7             1997                           64,000,000
 8             1998                           68,000,000
 9             1999                           71,000,000
10             2000                           75,000,000
11             2001                           80,000,000
12             2002                           84,000,000
13             2003                           89,000,000
14             2004                           93,000,000
15             2005                           97,000,000
16             2006                           102,000,000
17             2007                           108,000,000
18             2008                           115,000,000
19             2009                           120,000,000
20             2010                           126,000,000
21             2011                           132,000,000
22             2012                           138,000,000
23             2013 and                       145,000,000
24        each fiscal year
25        thereafter that bonds
26        are outstanding under
27        Section 13.2 of the
28        Metropolitan Pier and
29        Exposition Authority Act,
30        but not after fiscal year 2029.
31        Beginning  July 20, 1993 and in each month of each fiscal
32    year thereafter, one-eighth of the amount  requested  in  the
33    certificate  of  the  Chairman  of  the Metropolitan Pier and
34    Exposition Authority for that fiscal year,  less  the  amount
 
                            -38-           LRB9110257SMdvam20
 1    deposited  into the McCormick Place Expansion Project Fund by
 2    the State Treasurer in the respective month under  subsection
 3    (g)  of  Section  13  of the Metropolitan Pier and Exposition
 4    Authority Act, plus cumulative deficiencies in  the  deposits
 5    required  under  this  Section for previous months and years,
 6    shall be deposited into the McCormick Place Expansion Project
 7    Fund, until the full amount requested for  the  fiscal  year,
 8    but  not  in  excess  of the amount specified above as "Total
 9    Deposit", has been deposited.
10        Subject to payment of amounts  into  the  Build  Illinois
11    Fund  and the McCormick Place Expansion Project Fund pursuant
12    to the preceding  paragraphs  or  in  any  amendment  thereto
13    hereafter  enacted,  each month the Department shall pay into
14    the Local  Government  Distributive  Fund  0.4%  of  the  net
15    revenue  realized for the preceding month from the 5% general
16    rate or 0.4% of 80% of  the  net  revenue  realized  for  the
17    preceding  month from the 6.25% general rate, as the case may
18    be, on the selling price of tangible personal property  which
19    amount  shall,  subject  to  appropriation, be distributed as
20    provided in Section 2 of the State Revenue  Sharing  Act.  No
21    payments or distributions pursuant to this paragraph shall be
22    made  if  the  tax  imposed  by  this Act on photo processing
23    products is declared unconstitutional,  or  if  the  proceeds
24    from  such  tax  are  unavailable for distribution because of
25    litigation.
26        Subject to payment of amounts  into  the  Build  Illinois
27    Fund,  the  McCormick  Place  Expansion Project Fund, and the
28    Local Government Distributive Fund pursuant to the  preceding
29    paragraphs  or  in  any amendments thereto hereafter enacted,
30    beginning July 1, 1993, the Department shall each  month  pay
31    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
32    revenue realized for  the  preceding  month  from  the  6.25%
33    general  rate  on  the  selling  price  of  tangible personal
34    property.
 
                            -39-           LRB9110257SMdvam20
 1        All remaining moneys received by the Department  pursuant
 2    to  this  Act  shall be paid into the General Revenue Fund of
 3    the State Treasury.
 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    Beginning April 1, 2000, this transfer is no longer  required
11    and shall not be made.
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    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
17    eff. 6-30-99; 91-101, eff.  7-12-99;  91-541,  eff.  8-13-99;
18    revised 9-27-99.)

19        Section 15.  The Service Occupation Tax Act is amended by
20    changing Sections 3-10 and 9 as follows:

21        (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
22        Sec.  3-10.  Rate  of  tax.  Unless otherwise provided in
23    this Section, the tax imposed by this Act is at the  rate  of
24    6.25%  of the "selling price", as defined in Section 2 of the
25    Service Use Tax Act, of the tangible personal property.   For
26    the  purpose  of  computing  this  tax, in no event shall the
27    "selling price" be less than the cost price to the serviceman
28    of the tangible personal property transferred.   The  selling
29    price  of each item of tangible personal property transferred
30    as an incident of a  sale  of  service  may  be  shown  as  a
31    distinct and separate item on the serviceman's billing to the
32    service  customer.  If the selling price is not so shown, the
 
                            -40-           LRB9110257SMdvam20
 1    selling price of the tangible personal property is deemed  to
 2    be  50%  of  the  serviceman's  entire billing to the service
 3    customer.  When, however, a serviceman contracts  to  design,
 4    develop,  and  produce  special order machinery or equipment,
 5    the  tax  imposed  by  this  Act  shall  be  based   on   the
 6    serviceman's  cost  price  of  the tangible personal property
 7    transferred incident to the completion of the contract.
 8        Beginning on July 1, 2000 and through December 31,  2000,
 9    with  respect to motor fuel, as defined in Section 1.1 of the
10    Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
11    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
12        With  respect  to gasohol, as defined in the Use Tax Act,
13    the tax imposed by this Act shall apply to 70%  of  the  cost
14    price  of  property transferred as an incident to the sale of
15    service on or after January 1, 1990, and before July 1, 2003,
16    and to 100% of the cost price thereafter.
17        At the election of any  registered  serviceman  made  for
18    each  fiscal  year,  sales  of service in which the aggregate
19    annual cost price of tangible personal  property  transferred
20    as  an  incident to the sales of service is less than 35%, or
21    75% in the case of servicemen transferring prescription drugs
22    or servicemen engaged in  graphic  arts  production,  of  the
23    aggregate  annual  total  gross  receipts  from  all sales of
24    service, the tax imposed by this Act shall be  based  on  the
25    serviceman's  cost  price  of  the tangible personal property
26    transferred incident to the sale of those services.
27        The tax shall be imposed  at  the  rate  of  1%  on  food
28    prepared  for  immediate consumption and transferred incident
29    to a sale of service subject  to  this  Act  or  the  Service
30    Occupation  Tax  Act by an entity licensed under the Hospital
31    Licensing Act, the Nursing Home Care Act, or the  Child  Care
32    Act of 1969.  The tax shall also be imposed at the rate of 1%
33    on  food for human consumption that is to be consumed off the
34    premises where it is sold (other  than  alcoholic  beverages,
 
                            -41-           LRB9110257SMdvam20
 1    soft  drinks,  and  food that has been prepared for immediate
 2    consumption and is not otherwise included in this  paragraph)
 3    and   prescription   and  nonprescription  medicines,  drugs,
 4    medical appliances, modifications to a motor vehicle for  the
 5    purpose  of  rendering  it  usable  by a disabled person, and
 6    insulin, urine testing materials, syringes, and needles  used
 7    by  diabetics,  for  human  use.   For  the  purposes of this
 8    Section, the term "soft drinks" means any complete, finished,
 9    ready-to-use, non-alcoholic drink, whether carbonated or not,
10    including but not limited to soda water, cola,  fruit  juice,
11    vegetable juice, carbonated water, and all other preparations
12    commonly known as soft drinks of whatever kind or description
13    that  are  contained  in any closed or sealed can, carton, or
14    container,  regardless  of  size.   "Soft  drinks"  does  not
15    include coffee, tea, non-carbonated  water,  infant  formula,
16    milk  or  milk products as defined in the Grade A Pasteurized
17    Milk and Milk Products Act, or drinks containing 50% or  more
18    natural fruit or vegetable juice.
19        Notwithstanding  any  other provisions of this Act, "food
20    for human consumption that is to be consumed off the premises
21    where it is sold" includes all food sold  through  a  vending
22    machine,  except  soft  drinks  and  food  products  that are
23    dispensed hot from  a  vending  machine,  regardless  of  the
24    location of the vending machine.
25    (Source:  P.A.  90-605,  eff.  6-30-98; 90-606, eff. 6-30-98;
26    91-51, 6-30-99; 91-541, eff. 8-13-99.)

27        (35 ILCS 115/9) (from Ch. 120, par. 439.109)
28        Sec.  9.   Each  serviceman  required  or  authorized  to
29    collect the tax herein imposed shall pay  to  the  Department
30    the  amount  of  such  tax at the time when he is required to
31    file his return for the period  during  which  such  tax  was
32    collectible,  less  a  discount  of  2.1% prior to January 1,
33    1990, and 1.75% on and after  January  1,  1990,  or  $5  per
 
                            -42-           LRB9110257SMdvam20
 1    calendar  year,  whichever  is  greater,  which is allowed to
 2    reimburse the serviceman for expenses incurred in  collecting
 3    the  tax,  keeping  records,  preparing  and  filing returns,
 4    remitting the tax and supplying data  to  the  Department  on
 5    request.
 6        Where  such  tangible  personal  property is sold under a
 7    conditional sales contract, or under any other form  of  sale
 8    wherein  the payment of the principal sum, or a part thereof,
 9    is extended beyond the close of  the  period  for  which  the
10    return  is  filed,  the serviceman, in collecting the tax may
11    collect, for each tax return period, only the tax  applicable
12    to  the  part  of  the selling price actually received during
13    such tax return period.
14        Except as provided hereinafter in  this  Section,  on  or
15    before  the  twentieth  day  of  each  calendar  month,  such
16    serviceman  shall  file  a  return for the preceding calendar
17    month in accordance with reasonable rules and regulations  to
18    be  promulgated  by  the  Department of Revenue.  Such return
19    shall be filed on a form prescribed  by  the  Department  and
20    shall   contain   such  information  as  the  Department  may
21    reasonably require.
22        The Department may require  returns  to  be  filed  on  a
23    quarterly  basis.  If so required, a return for each calendar
24    quarter shall be filed on or before the twentieth day of  the
25    calendar  month  following  the end of such calendar quarter.
26    The taxpayer shall also file a return with the Department for
27    each of the first two months of each calendar quarter, on  or
28    before  the  twentieth  day  of the following calendar month,
29    stating:
30             1.  The name of the seller;
31             2.  The address of the principal place  of  business
32        from which he engages in business as a serviceman in this
33        State;
34             3.  The total amount of taxable receipts received by
 
                            -43-           LRB9110257SMdvam20
 1        him   during  the  preceding  calendar  month,  including
 2        receipts  from  charge  and  time  sales,  but  less  all
 3        deductions allowed by law;
 4             4.  The amount of credit provided in Section  2d  of
 5        this Act;
 6             5.  The amount of tax due;
 7             5-5.  The signature of the taxpayer; and
 8             6.  Such   other   reasonable   information  as  the
 9        Department may require.
10        If a taxpayer fails to sign a return within 30 days after
11    the proper notice and demand for signature by the Department,
12    the return shall be considered valid and any amount shown  to
13    be due on the return shall be deemed assessed.
14        A  serviceman may accept a Manufacturer's Purchase Credit
15    certification from a purchaser in satisfaction of Service Use
16    Tax as provided in Section 3-70 of the Service Use Tax Act if
17    the  purchaser  provides  the  appropriate  documentation  as
18    required by Section 3-70 of the  Service  Use  Tax  Act.    A
19    Manufacturer's  Purchase  Credit certification, accepted by a
20    serviceman as provided in Section 3-70 of the Service Use Tax
21    Act, may be  used  by  that  serviceman  to  satisfy  Service
22    Occupation  Tax  liability  in  the  amount  claimed  in  the
23    certification, not to exceed 6.25% of the receipts subject to
24    tax from a qualifying purchase.
25        If  the serviceman's average monthly tax liability to the
26    Department does not exceed $200, the Department may authorize
27    his returns to be filed on a quarter annual basis,  with  the
28    return  for January, February and March of a given year being
29    due by April 20 of such year; with the return for April,  May
30    and  June  of a given year being due by July 20 of such year;
31    with the return for July, August and  September  of  a  given
32    year  being  due  by  October  20  of such year, and with the
33    return for October, November and December  of  a  given  year
34    being due by January 20 of the following year.
 
                            -44-           LRB9110257SMdvam20
 1        If  the serviceman's average monthly tax liability to the
 2    Department does not exceed $50, the Department may  authorize
 3    his  returns  to be filed on an annual basis, with the return
 4    for a given year being due by January  20  of  the  following
 5    year.
 6        Such  quarter  annual  and annual returns, as to form and
 7    substance, shall be  subject  to  the  same  requirements  as
 8    monthly returns.
 9        Notwithstanding   any   other   provision   in  this  Act
10    concerning the time within which a serviceman  may  file  his
11    return, in the case of any serviceman who ceases to engage in
12    a  kind  of  business  which makes him responsible for filing
13    returns under this Act, such serviceman shall  file  a  final
14    return  under  this  Act  with the Department not more than 1
15    month after discontinuing such business.
16        Beginning October 1, 1993, a taxpayer who has an  average
17    monthly  tax  liability  of  $150,000  or more shall make all
18    payments required by rules of the  Department  by  electronic
19    funds  transfer.   Beginning  October 1, 1994, a taxpayer who
20    has an average monthly tax  liability  of  $100,000  or  more
21    shall  make  all payments required by rules of the Department
22    by electronic funds transfer.  Beginning October 1,  1995,  a
23    taxpayer  who has an average monthly tax liability of $50,000
24    or more shall make all payments  required  by  rules  of  the
25    Department  by  electronic funds transfer.  Beginning October
26    1, 2000, a taxpayer  who  has  an  annual  tax  liability  of
27    $200,000 or more shall make all payments required by rules of
28    the  Department  by  electronic  funds  transfer.   The  term
29    "annual  tax  liability"  shall  be the sum of the taxpayer's
30    liabilities under this Act, and under  all  other  State  and
31    local  occupation  and  use  tax  laws  administered  by  the
32    Department,  for the immediately preceding calendar year. The
33    term "average monthly tax liability" means  the  sum  of  the
34    taxpayer's  liabilities  under  this Act, and under all other
 
                            -45-           LRB9110257SMdvam20
 1    State and local occupation and use tax laws  administered  by
 2    the  Department,  for the immediately preceding calendar year
 3    divided by 12.
 4        Before August 1 of  each  year  beginning  in  1993,  the
 5    Department  shall  notify  all  taxpayers  required  to  make
 6    payments   by  electronic  funds  transfer.    All  taxpayers
 7    required to make payments by electronic funds transfer  shall
 8    make  those  payments  for a minimum of one year beginning on
 9    October 1.
10        Any taxpayer not required to make payments by  electronic
11    funds transfer may make payments by electronic funds transfer
12    with the permission of the Department.
13        All  taxpayers  required  to  make  payment by electronic
14    funds transfer and any taxpayers  authorized  to  voluntarily
15    make  payments  by electronic funds transfer shall make those
16    payments in the manner authorized by the Department.
17        The Department shall adopt such rules as are necessary to
18    effectuate a program of electronic  funds  transfer  and  the
19    requirements of this Section.
20        Where  a  serviceman collects the tax with respect to the
21    selling price of tangible personal property  which  he  sells
22    and  the  purchaser thereafter returns such tangible personal
23    property and the serviceman refunds the selling price thereof
24    to the purchaser, such serviceman shall also refund,  to  the
25    purchaser,  the  tax  so  collected from the purchaser.  When
26    filing his return for the period in which he refunds such tax
27    to the purchaser, the serviceman may deduct the amount of the
28    tax so refunded by  him  to  the  purchaser  from  any  other
29    Service   Occupation   Tax,   Service   Use  Tax,  Retailers'
30    Occupation Tax or  Use  Tax  which  such  serviceman  may  be
31    required  to pay or remit to the Department, as shown by such
32    return, provided that the amount of the tax  to  be  deducted
33    shall previously have been remitted to the Department by such
34    serviceman.   If  the  serviceman  shall  not previously have
 
                            -46-           LRB9110257SMdvam20
 1    remitted the amount of such tax to the Department,  he  shall
 2    be entitled to no deduction hereunder upon refunding such tax
 3    to the purchaser.
 4        If  experience  indicates  such action to be practicable,
 5    the Department may prescribe and  furnish  a  combination  or
 6    joint  return  which will enable servicemen, who are required
 7    to file returns  hereunder  and  also  under  the  Retailers'
 8    Occupation  Tax  Act,  the Use Tax Act or the Service Use Tax
 9    Act, to furnish all the return information  required  by  all
10    said Acts on the one form.
11        Where   the   serviceman   has  more  than  one  business
12    registered with the Department under  separate  registrations
13    hereunder,  such  serviceman  shall file separate returns for
14    each registered business.
15        Beginning January 1,  1990,  each  month  the  Department
16    shall  pay  into  the  Local  Government Tax Fund the revenue
17    realized for the preceding month from the 1% tax on sales  of
18    food  for  human  consumption which is to be consumed off the
19    premises where it is sold (other  than  alcoholic  beverages,
20    soft  drinks  and  food which has been prepared for immediate
21    consumption) and prescription and nonprescription  medicines,
22    drugs,   medical   appliances   and  insulin,  urine  testing
23    materials, syringes and needles used by diabetics.
24        Beginning January 1,  1990,  each  month  the  Department
25    shall  pay  into the County and Mass Transit District Fund 4%
26    of the revenue realized for  the  preceding  month  from  the
27    6.25% general rate.
28        Beginning August 1, 2000, each month the Department shall
29    pay into the County and Mass Transit District Fund 20% of the
30    net  revenue  realized for the preceding month from the 1.25%
31    rate on the selling price of motor fuel and gasohol.
32        Beginning January 1,  1990,  each  month  the  Department
33    shall  pay  into  the  Local  Government  Tax Fund 16% of the
34    revenue realized for  the  preceding  month  from  the  6.25%
 
                            -47-           LRB9110257SMdvam20
 1    general rate on transfers of tangible personal property.
 2        Beginning August 1, 2000, each month the Department shall
 3    pay into the Local Government Tax Fund 80% of the net revenue
 4    realized  for  the preceding month from the 1.25% rate on the
 5    selling price of motor fuel and gasohol.
 6        Of the remainder of the moneys received by the Department
 7    pursuant to this Act, (a) 1.75% thereof shall  be  paid  into
 8    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
 9    and on and after July 1, 1989, 3.8%  thereof  shall  be  paid
10    into  the  Build Illinois Fund; provided, however, that if in
11    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
12    as the case may be, of the moneys received by the  Department
13    and required to be paid into the Build Illinois Fund pursuant
14    to  Section 3 of the Retailers' Occupation Tax Act, Section 9
15    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
16    Section 9 of the Service Occupation Tax Act, such Acts  being
17    hereinafter  called the "Tax Acts" and such aggregate of 2.2%
18    or 3.8%, as the case may  be,  of  moneys  being  hereinafter
19    called  the  "Tax Act Amount", and (2) the amount transferred
20    to the Build Illinois Fund from the State and Local Sales Tax
21    Reform Fund shall be less than the  Annual  Specified  Amount
22    (as  defined  in  Section  3 of the Retailers' Occupation Tax
23    Act), an amount equal to the difference shall be  immediately
24    paid  into the Build Illinois Fund from other moneys received
25    by the Department pursuant  to  the  Tax  Acts;  and  further
26    provided,  that  if on the last business day of any month the
27    sum of (1) the Tax Act Amount required to be  deposited  into
28    the  Build Illinois Account in the Build Illinois Fund during
29    such month and (2) the amount transferred during  such  month
30    to the Build Illinois Fund from the State and Local Sales Tax
31    Reform  Fund  shall  have  been  less than 1/12 of the Annual
32    Specified Amount, an amount equal to the difference shall  be
33    immediately  paid  into  the  Build  Illinois Fund from other
34    moneys received by the Department pursuant to the  Tax  Acts;
 
                            -48-           LRB9110257SMdvam20
 1    and,  further  provided,  that in no event shall the payments
 2    required under the  preceding  proviso  result  in  aggregate
 3    payments into the Build Illinois Fund pursuant to this clause
 4    (b)  for  any fiscal year in excess of the greater of (i) the
 5    Tax Act Amount or (ii) the Annual Specified Amount  for  such
 6    fiscal  year; and, further provided, that the amounts payable
 7    into the Build Illinois Fund under this clause (b)  shall  be
 8    payable  only  until  such  time  as  the aggregate amount on
 9    deposit under each trust indenture securing Bonds issued  and
10    outstanding  pursuant  to  the  Build  Illinois  Bond  Act is
11    sufficient, taking into account any future investment income,
12    to fully provide, in accordance with such indenture, for  the
13    defeasance of or the payment of the principal of, premium, if
14    any,  and interest on the Bonds secured by such indenture and
15    on any Bonds expected to be issued thereafter  and  all  fees
16    and  costs  payable with respect thereto, all as certified by
17    the Director of the Bureau of the Budget.   If  on  the  last
18    business  day  of  any  month  in which Bonds are outstanding
19    pursuant to the Build Illinois Bond Act, the aggregate of the
20    moneys deposited in the Build Illinois Bond  Account  in  the
21    Build  Illinois  Fund  in  such  month shall be less than the
22    amount required to be transferred  in  such  month  from  the
23    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
24    Retirement and Interest Fund pursuant to Section  13  of  the
25    Build  Illinois  Bond Act, an amount equal to such deficiency
26    shall be immediately paid from other moneys received  by  the
27    Department  pursuant  to  the  Tax Acts to the Build Illinois
28    Fund; provided, however, that any amounts paid to  the  Build
29    Illinois  Fund  in  any fiscal year pursuant to this sentence
30    shall be deemed to constitute payments pursuant to clause (b)
31    of  the  preceding  sentence  and  shall  reduce  the  amount
32    otherwise payable for such fiscal year pursuant to clause (b)
33    of the  preceding  sentence.   The  moneys  received  by  the
34    Department  pursuant to this Act and required to be deposited
 
                            -49-           LRB9110257SMdvam20
 1    into the Build Illinois Fund are subject to the pledge, claim
 2    and charge set forth in Section 12 of the Build Illinois Bond
 3    Act.
 4        Subject to payment of amounts  into  the  Build  Illinois
 5    Fund  as  provided  in  the  preceding  paragraph  or  in any
 6    amendment thereto hereafter enacted, the following  specified
 7    monthly   installment   of   the   amount  requested  in  the
 8    certificate of the Chairman  of  the  Metropolitan  Pier  and
 9    Exposition  Authority  provided  under  Section  8.25f of the
10    State Finance Act, but not in excess of the  sums  designated
11    as  "Total Deposit", shall be deposited in the aggregate from
12    collections under Section 9 of the Use Tax Act, Section 9  of
13    the  Service Use Tax Act, Section 9 of the Service Occupation
14    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
15    into  the  McCormick  Place  Expansion  Project  Fund  in the
16    specified fiscal years.
17             Fiscal Year                   Total Deposit
18                 1993                            $0
19                 1994                        53,000,000
20                 1995                        58,000,000
21                 1996                        61,000,000
22                 1997                        64,000,000
23                 1998                        68,000,000
24                 1999                        71,000,000
25                 2000                        75,000,000
26                 2001                        80,000,000
27                 2002                        84,000,000
28                 2003                        89,000,000
29                 2004                        93,000,000
30                 2005                        97,000,000
31                 2006                       102,000,000
32                 2007                       108,000,000
33                 2008                       115,000,000
34                 2009                       120,000,000
 
                            -50-           LRB9110257SMdvam20
 1                 2010                       126,000,000
 2                 2011                       132,000,000
 3                 2012                       138,000,000
 4                 2013 and                   145,000,000
 5        each fiscal year
 6        thereafter that bonds
 7        are outstanding under
 8        Section 13.2 of the
 9        Metropolitan Pier and
10        Exposition Authority
11        Act, but not after fiscal year 2029.
12        Beginning July 20, 1993 and in each month of each  fiscal
13    year  thereafter,  one-eighth  of the amount requested in the
14    certificate of the Chairman  of  the  Metropolitan  Pier  and
15    Exposition  Authority  for  that fiscal year, less the amount
16    deposited into the McCormick Place Expansion Project Fund  by
17    the  State Treasurer in the respective month under subsection
18    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
19    Authority  Act,  plus cumulative deficiencies in the deposits
20    required under this Section for previous  months  and  years,
21    shall be deposited into the McCormick Place Expansion Project
22    Fund,  until  the  full amount requested for the fiscal year,
23    but not in excess of the amount  specified  above  as  "Total
24    Deposit", has been deposited.
25        Subject  to  payment  of  amounts into the Build Illinois
26    Fund and the McCormick Place Expansion Project Fund  pursuant
27    to  the  preceding  paragraphs  or  in  any amendment thereto
28    hereafter enacted, each month the Department shall  pay  into
29    the  Local  Government  Distributive  Fund  0.4%  of  the net
30    revenue realized for the preceding month from the 5%  general
31    rate  or  0.4%  of  80%  of  the net revenue realized for the
32    preceding month from the 6.25% general rate, as the case  may
33    be,  on the selling price of tangible personal property which
34    amount shall, subject to  appropriation,  be  distributed  as
 
                            -51-           LRB9110257SMdvam20
 1    provided  in  Section 2 of the State Revenue Sharing Act.  No
 2    payments or distributions pursuant to this paragraph shall be
 3    made if the  tax  imposed  by  this  Act  on  photoprocessing
 4    products  is  declared  unconstitutional,  or if the proceeds
 5    from such tax are unavailable  for  distribution  because  of
 6    litigation.
 7        Subject  to  payment  of  amounts into the Build Illinois
 8    Fund, the McCormick Place Expansion  Project  Fund,  and  the
 9    Local  Government Distributive Fund pursuant to the preceding
10    paragraphs or in any amendments  thereto  hereafter  enacted,
11    beginning  July  1, 1993, the Department shall each month pay
12    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
13    revenue  realized  for  the  preceding  month  from the 6.25%
14    general rate  on  the  selling  price  of  tangible  personal
15    property.
16        Remaining  moneys  received by the Department pursuant to
17    this Act shall be paid into the General Revenue Fund  of  the
18    State Treasury.
19        The  Department  may,  upon  separate written notice to a
20    taxpayer, require the taxpayer to prepare and file  with  the
21    Department  on a form prescribed by the Department within not
22    less than 60 days after  receipt  of  the  notice  an  annual
23    information  return for the tax year specified in the notice.
24    Such  annual  return  to  the  Department  shall  include   a
25    statement  of  gross receipts as shown by the taxpayer's last
26    Federal income tax return.  If  the  total  receipts  of  the
27    business  as reported in the Federal income tax return do not
28    agree with the gross receipts reported to the  Department  of
29    Revenue for the same period, the taxpayer shall attach to his
30    annual  return  a  schedule showing a reconciliation of the 2
31    amounts and the reasons for the difference.   The  taxpayer's
32    annual  return to the Department shall also disclose the cost
33    of goods sold by the taxpayer during the year covered by such
34    return, opening and closing inventories  of  such  goods  for
 
                            -52-           LRB9110257SMdvam20
 1    such  year, cost of goods used from stock or taken from stock
 2    and given away by the taxpayer during  such  year,  pay  roll
 3    information  of  the taxpayer's business during such year and
 4    any additional reasonable information  which  the  Department
 5    deems  would  be  helpful  in determining the accuracy of the
 6    monthly, quarterly or annual returns filed by  such  taxpayer
 7    as hereinbefore provided for in this Section.
 8        If the annual information return required by this Section
 9    is  not  filed  when  and  as required, the taxpayer shall be
10    liable as follows:
11             (i)  Until January 1, 1994, the  taxpayer  shall  be
12        liable  for  a  penalty equal to 1/6 of 1% of the tax due
13        from such taxpayer under this Act during the period to be
14        covered by the annual return for each month  or  fraction
15        of  a  month  until such return is filed as required, the
16        penalty to be assessed and collected in the  same  manner
17        as any other penalty provided for in this Act.
18             (ii)  On  and  after  January  1, 1994, the taxpayer
19        shall be liable for a penalty as described in Section 3-4
20        of the Uniform Penalty and Interest Act.
21        The chief executive officer, proprietor, owner or highest
22    ranking manager shall sign the annual return to  certify  the
23    accuracy  of  the  information contained therein.  Any person
24    who willfully signs the annual  return  containing  false  or
25    inaccurate   information  shall  be  guilty  of  perjury  and
26    punished accordingly.  The annual return form  prescribed  by
27    the  Department  shall  include  a  warning  that  the person
28    signing the return may be liable for perjury.
29        The foregoing portion  of  this  Section  concerning  the
30    filing  of  an annual information return shall not apply to a
31    serviceman who is not required to file an income  tax  return
32    with the United States Government.
33        As  soon  as  possible after the first day of each month,
34    upon  certification  of  the  Department  of   Revenue,   the
 
                            -53-           LRB9110257SMdvam20
 1    Comptroller  shall  order transferred and the Treasurer shall
 2    transfer from the General Revenue Fund to the Motor Fuel  Tax
 3    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
 4    realized under this  Act  for  the  second  preceding  month.
 5    Beginning  April 1, 2000, this transfer is no longer required
 6    and shall not be made.
 7        Net revenue realized for a month  shall  be  the  revenue
 8    collected  by the State pursuant to this Act, less the amount
 9    paid out during  that  month  as  refunds  to  taxpayers  for
10    overpayment of liability.
11        For  greater  simplicity  of  administration, it shall be
12    permissible  for  manufacturers,  importers  and  wholesalers
13    whose products are sold by numerous servicemen  in  Illinois,
14    and  who  wish  to  do  so,  to assume the responsibility for
15    accounting and paying to  the  Department  all  tax  accruing
16    under  this Act with respect to such sales, if the servicemen
17    who are  affected  do  not  make  written  objection  to  the
18    Department to this arrangement.
19    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
20    eff.  6-30-99;  91-101,  eff.  7-12-99; 91-541, eff. 8-13-99;
21    revised 9-28-99.)

22        Section 20.  The Retailers' Occupation Tax Act is amended
23    by changing Sections 2-10, 2d, and 3 as follows:

24        (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
25        Sec. 2-10. Rate of tax.   Unless  otherwise  provided  in
26    this  Section,  the tax imposed by this Act is at the rate of
27    6.25% of gross  receipts  from  sales  of  tangible  personal
28    property made in the course of business.
29        Beginning  on July 1, 2000 and through December 31, 2000,
30    with respect to motor fuel, as defined in Section 1.1 of  the
31    Motor  Fuel  Tax Law, and gasohol, as defined in Section 3-40
32    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
 
                            -54-           LRB9110257SMdvam20
 1        Within  14  days  after  the  effective  date   of   this
 2    amendatory Act of the 91st General Assembly, each retailer of
 3    motor fuel and gasohol shall cause the following notice to be
 4    posted   in  a  prominently  visible  place  on  each  retail
 5    dispensing device that is used  to  dispense  motor  fuel  or
 6    gasohol  in  the State of Illinois:  "As of July 1, 2000, the
 7    State of Illinois has eliminated the State's share  of  sales
 8    tax  on motor fuel and gasohol through December 31, 2000. The
 9    price on this pump should  reflect  the  elimination  of  the
10    tax."   The  notice  shall be printed in bold print on a sign
11    that is no smaller than 4 inches by 8 inches.  The sign shall
12    be clearly visible to customers.  Any retailer who  fails  to
13    post or maintain a required sign through December 31, 2000 is
14    guilty  of  a  petty offense for which the fine shall be $500
15    per day per each retail premises where a violation occurs.
16        With respect to gasohol, as defined in the Use  Tax  Act,
17    the tax imposed by this Act applies to 70% of the proceeds of
18    sales  made  on  or after January 1, 1990, and before July 1,
19    2003, and to 100% of the proceeds of sales made thereafter.
20        With respect to food for human consumption that is to  be
21    consumed  off  the  premises  where  it  is  sold (other than
22    alcoholic beverages, soft drinks,  and  food  that  has  been
23    prepared  for  immediate  consumption)  and  prescription and
24    nonprescription   medicines,   drugs,   medical   appliances,
25    modifications to a motor vehicle for the purpose of rendering
26    it usable by a disabled person, and  insulin,  urine  testing
27    materials, syringes, and needles used by diabetics, for human
28    use,  the  tax is imposed at the rate of 1%. For the purposes
29    of this Section, the term "soft drinks" means  any  complete,
30    finished,    ready-to-use,   non-alcoholic   drink,   whether
31    carbonated or not, including but not limited to  soda  water,
32    cola, fruit juice, vegetable juice, carbonated water, and all
33    other  preparations commonly known as soft drinks of whatever
34    kind or description that  are  contained  in  any  closed  or
 
                            -55-           LRB9110257SMdvam20
 1    sealed bottle, can, carton, or container, regardless of size.
 2    "Soft  drinks"  does  not include coffee, tea, non-carbonated
 3    water, infant formula, milk or milk products  as  defined  in
 4    the Grade A Pasteurized Milk and Milk Products Act, or drinks
 5    containing 50% or more natural fruit or vegetable juice.
 6        Notwithstanding  any  other provisions of this Act, "food
 7    for human consumption that is to be consumed off the premises
 8    where it is sold" includes all food sold  through  a  vending
 9    machine,  except  soft  drinks  and  food  products  that are
10    dispensed hot from  a  vending  machine,  regardless  of  the
11    location of the vending machine.
12    (Source:  P.A.  90-605,  eff.  6-30-98; 90-606, eff. 6-30-98;
13    91-51, eff. 6-30-99.)

14        (35 ILCS 120/2d) (from Ch. 120, par. 441d)
15        Sec. 2d.  Tax prepayment  by  motor  fuel  retailer.  Any
16    person  engaged  in  the  business  of  selling motor fuel at
17    retail, as defined in the Motor Fuel Tax Law, and who is  not
18    a  licensed  distributor or supplier, as defined in the Motor
19    Fuel Tax  Law,  shall  prepay  to  his  or  her  distributor,
20    supplier,  or  other  reseller of motor fuel a portion of the
21    tax imposed by this Act  if  the  distributor,  supplier,  or
22    other  reseller  of motor fuel is registered under Section 2a
23    or Section  2c  of  this  Act.   The  prepayment  requirement
24    provided for in this Section does not apply to liquid propane
25    gas.
26        Beginning  on July 1, 2000 and through December 31, 2000,
27    the  Retailers'  Occupation  Tax  paid  to  the  distributor,
28    supplier, or other reseller shall be an amount equal to $0.01
29    $0.04 per gallon of the motor fuel, except gasohol as defined
30    in Section 2-10 of this Act which shall be an amount equal to
31    $0.01 $0.03  per  gallon,  purchased  from  the  distributor,
32    supplier, or other reseller.
33        Before July 1, 2000 and then beginning on January 1, 2001
 
                            -56-           LRB9110257SMdvam20
 1    and  thereafter,  the  Retailers'  Occupation Tax paid to the
 2    distributor, supplier, or other reseller shall be  an  amount
 3    equal  to  $0.04 per gallon of the motor fuel, except gasohol
 4    as defined in Section 2-10 of this  Act  which  shall  be  an
 5    amount   equal  to  $0.03  per  gallon,  purchased  from  the
 6    distributor, supplier, or other reseller.
 7        Any person engaged in the business of selling motor  fuel
 8    at retail shall be entitled to a credit against tax due under
 9    this  Act  in  an  amount  equal  to  the  tax  paid  to  the
10    distributor, supplier, or other reseller.
11        Every distributor, supplier, or other reseller registered
12    as  provided  in  Section  2a or Section 2c of this Act shall
13    remit the prepaid tax on all motor fuel that is due from  any
14    person  engaged  in  the  business of selling at retail motor
15    fuel with the returns filed under Section 2f or Section 3  of
16    this  Act,  but  the  vendors  discount provided in Section 3
17    shall not  apply  to  the  amount  of  prepaid  tax  that  is
18    remitted.  Any  distributor or supplier who fails to properly
19    collect and remit the tax shall be liable for the  tax.   For
20    purposes  of this Section, the prepaid tax is due on invoiced
21    gallons sold during a month by the 20th day of the  following
22    month.
23    (Source: P.A. 86-1475; 87-14.)

24        (35 ILCS 120/3) (from Ch. 120, par. 442)
25        Sec. 3.  Except as provided in this Section, on or before
26    the  twentieth  day  of  each  calendar  month,  every person
27    engaged in the business of selling tangible personal property
28    at retail in this State during the preceding  calendar  month
29    shall file a return with the Department, stating:
30             1.  The name of the seller;
31             2.  His  residence  address  and  the address of his
32        principal place  of  business  and  the  address  of  the
33        principal  place  of  business  (if  that  is a different
 
                            -57-           LRB9110257SMdvam20
 1        address) from which he engages in the business of selling
 2        tangible personal property at retail in this State;
 3             3.  Total amount of receipts received by him  during
 4        the  preceding calendar month or quarter, as the case may
 5        be, from sales of tangible personal  property,  and  from
 6        services furnished, by him during such preceding calendar
 7        month or quarter;
 8             4.  Total   amount   received   by  him  during  the
 9        preceding calendar month or quarter on  charge  and  time
10        sales  of  tangible  personal property, and from services
11        furnished, by him prior to the month or quarter for which
12        the return is filed;
13             5.  Deductions allowed by law;
14             6.  Gross receipts which were received by him during
15        the preceding calendar month  or  quarter  and  upon  the
16        basis of which the tax is imposed;
17             7.  The  amount  of credit provided in Section 2d of
18        this Act;
19             8.  The amount of tax due;
20             9.  The signature of the taxpayer; and
21             10.  Such  other  reasonable  information   as   the
22        Department may require.
23        If a taxpayer fails to sign a return within 30 days after
24    the proper notice and demand for signature by the Department,
25    the  return shall be considered valid and any amount shown to
26    be due on the return shall be deemed assessed.
27        Each return shall be  accompanied  by  the  statement  of
28    prepaid tax issued pursuant to Section 2e for which credit is
29    claimed.
30        A  retailer  may  accept a Manufacturer's Purchase Credit
31    certification from a purchaser in satisfaction of Use Tax  as
32    provided  in Section 3-85 of the Use Tax Act if the purchaser
33    provides the appropriate documentation as required by Section
34    3-85 of the Use Tax Act.  A  Manufacturer's  Purchase  Credit
 
                            -58-           LRB9110257SMdvam20
 1    certification,  accepted by a retailer as provided in Section
 2    3-85 of the Use Tax Act, may be  used  by  that  retailer  to
 3    satisfy  Retailers'  Occupation  Tax  liability in the amount
 4    claimed in the certification, not  to  exceed  6.25%  of  the
 5    receipts subject to tax from a qualifying purchase.
 6        The  Department  may  require  returns  to  be filed on a
 7    quarterly basis.  If so required, a return for each  calendar
 8    quarter  shall be filed on or before the twentieth day of the
 9    calendar month following the end of  such  calendar  quarter.
10    The taxpayer shall also file a return with the Department for
11    each  of the first two months of each calendar quarter, on or
12    before the twentieth day of  the  following  calendar  month,
13    stating:
14             1.  The name of the seller;
15             2.  The  address  of the principal place of business
16        from which he engages in the business of selling tangible
17        personal property at retail in this State;
18             3.  The total amount of taxable receipts received by
19        him during the preceding calendar  month  from  sales  of
20        tangible  personal  property by him during such preceding
21        calendar month, including receipts from charge  and  time
22        sales, but less all deductions allowed by law;
23             4.  The  amount  of credit provided in Section 2d of
24        this Act;
25             5.  The amount of tax due; and
26             6.  Such  other  reasonable   information   as   the
27        Department may require.
28        If  a total amount of less than $1 is payable, refundable
29    or creditable, such amount shall be disregarded if it is less
30    than 50 cents and shall be increased to $1 if it is 50  cents
31    or more.
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
 
                            -59-           LRB9110257SMdvam20
 1    funds transfer.  Beginning October 1, 1994,  a  taxpayer  who
 2    has  an  average  monthly  tax  liability of $100,000 or more
 3    shall make all payments required by rules of  the  Department
 4    by  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.   Beginning  October
 8    1,  2000,  a  taxpayer  who  has  an  annual tax liability of
 9    $200,000 or more shall make all payments required by rules of
10    the  Department  by  electronic  funds  transfer.   The  term
11    "annual tax liability" shall be the  sum  of  the  taxpayer's
12    liabilities  under  this  Act,  and under all other State and
13    local  occupation  and  use  tax  laws  administered  by  the
14    Department, for the immediately preceding calendar year.  The
15    term  "average monthly tax liability" shall be the sum of the
16    taxpayer's liabilities under this Act, and  under  all  other
17    State  and  local occupation and use tax laws administered by
18    the Department, for the immediately preceding  calendar  year
19    divided by 12.
20        Before  August  1  of  each  year  beginning in 1993, the
21    Department  shall  notify  all  taxpayers  required  to  make
22    payments  by  electronic  funds  transfer.    All   taxpayers
23    required  to make payments by electronic funds transfer shall
24    make those payments for a minimum of one  year  beginning  on
25    October 1.
26        Any  taxpayer not required to make payments by electronic
27    funds transfer may make payments by electronic funds transfer
28    with the permission of the Department.
29        All taxpayers required  to  make  payment  by  electronic
30    funds  transfer  and  any taxpayers authorized to voluntarily
31    make payments by electronic funds transfer shall  make  those
32    payments in the manner authorized by the Department.
33        The Department shall adopt such rules as are necessary to
34    effectuate  a  program  of  electronic funds transfer and the
 
                            -60-           LRB9110257SMdvam20
 1    requirements of this Section.
 2        Any amount which is required to be shown or  reported  on
 3    any  return  or  other document under this Act shall, if such
 4    amount is not a whole-dollar  amount,  be  increased  to  the
 5    nearest  whole-dollar amount in any case where the fractional
 6    part of a dollar is 50 cents or more, and  decreased  to  the
 7    nearest  whole-dollar  amount  where the fractional part of a
 8    dollar is less than 50 cents.
 9        If the retailer is otherwise required to file  a  monthly
10    return and if the retailer's average monthly tax liability to
11    the  Department  does  not  exceed  $200,  the Department may
12    authorize his returns to be filed on a quarter annual  basis,
13    with  the  return  for January, February and March of a given
14    year being due by April 20 of such year; with the return  for
15    April,  May  and June of a given year being due by July 20 of
16    such year; with the return for July, August and September  of
17    a  given  year being due by October 20 of such year, and with
18    the return for October, November and December of a given year
19    being due by January 20 of the following year.
20        If the retailer is otherwise required to file  a  monthly
21    or quarterly return and if the retailer's average monthly tax
22    liability  with  the  Department  does  not  exceed  $50, the
23    Department may authorize his returns to be filed on an annual
24    basis, with the return for a given year being due by  January
25    20 of the following year.
26        Such  quarter  annual  and annual returns, as to form and
27    substance, shall be  subject  to  the  same  requirements  as
28    monthly returns.
29        Notwithstanding   any   other   provision   in  this  Act
30    concerning the time within which  a  retailer  may  file  his
31    return, in the case of any retailer who ceases to engage in a
32    kind  of  business  which  makes  him  responsible for filing
33    returns under this Act, such  retailer  shall  file  a  final
34    return  under  this Act with the Department not more than one
 
                            -61-           LRB9110257SMdvam20
 1    month after discontinuing such business.
 2        Where  the  same  person  has  more  than  one   business
 3    registered  with  the Department under separate registrations
 4    under this Act, such person may not file each return that  is
 5    due   as   a  single  return  covering  all  such  registered
 6    businesses, but shall file separate  returns  for  each  such
 7    registered business.
 8        In  addition, with respect to motor vehicles, watercraft,
 9    aircraft, and trailers that are  required  to  be  registered
10    with  an  agency  of  this State, every retailer selling this
11    kind of tangible  personal  property  shall  file,  with  the
12    Department,  upon a form to be prescribed and supplied by the
13    Department, a separate return for each such item of  tangible
14    personal  property  which  the  retailer  sells,  except that
15    where, in the  same  transaction,  a  retailer  of  aircraft,
16    watercraft,  motor  vehicles  or trailers transfers more than
17    one aircraft, watercraft, motor vehicle or trailer to another
18    aircraft,  watercraft,  motor  vehicle  retailer  or  trailer
19    retailer for the purpose of resale, that  seller  for  resale
20    may  report  the  transfer of all aircraft, watercraft, motor
21    vehicles or trailers involved  in  that  transaction  to  the
22    Department  on the same uniform invoice-transaction reporting
23    return form.  For  purposes  of  this  Section,  "watercraft"
24    means a Class 2, Class 3, or Class 4 watercraft as defined in
25    Section  3-2  of  the  Boat  Registration  and  Safety Act, a
26    personal watercraft, or any boat  equipped  with  an  inboard
27    motor.
28        Any  retailer  who sells only motor vehicles, watercraft,
29    aircraft, or trailers that are required to be registered with
30    an agency of this State, so that  all  retailers'  occupation
31    tax liability is required to be reported, and is reported, on
32    such  transaction  reporting returns and who is not otherwise
33    required to file monthly or quarterly returns, need not  file
34    monthly or quarterly returns.  However, those retailers shall
 
                            -62-           LRB9110257SMdvam20
 1    be required to file returns on an annual basis.
 2        The  transaction  reporting  return, in the case of motor
 3    vehicles or trailers that are required to be registered  with
 4    an  agency  of  this State, shall be the same document as the
 5    Uniform Invoice referred to in Section 5-402 of The  Illinois
 6    Vehicle  Code  and  must  show  the  name  and address of the
 7    seller; the name and address of the purchaser; the amount  of
 8    the  selling  price  including  the  amount  allowed  by  the
 9    retailer  for  traded-in property, if any; the amount allowed
10    by the retailer for the traded-in tangible personal property,
11    if any, to the extent to which Section 1 of this  Act  allows
12    an exemption for the value of traded-in property; the balance
13    payable  after  deducting  such  trade-in  allowance from the
14    total selling price; the amount of tax due from the  retailer
15    with respect to such transaction; the amount of tax collected
16    from  the  purchaser  by the retailer on such transaction (or
17    satisfactory evidence that  such  tax  is  not  due  in  that
18    particular  instance, if that is claimed to be the fact); the
19    place and date of the sale; a  sufficient  identification  of
20    the  property  sold; such other information as is required in
21    Section 5-402 of The Illinois Vehicle Code,  and  such  other
22    information as the Department may reasonably require.
23        The   transaction   reporting   return  in  the  case  of
24    watercraft or aircraft must show the name and address of  the
25    seller;  the name and address of the purchaser; the amount of
26    the  selling  price  including  the  amount  allowed  by  the
27    retailer for traded-in property, if any; the  amount  allowed
28    by the retailer for the traded-in tangible personal property,
29    if  any,  to the extent to which Section 1 of this Act allows
30    an exemption for the value of traded-in property; the balance
31    payable after deducting  such  trade-in  allowance  from  the
32    total  selling price; the amount of tax due from the retailer
33    with respect to such transaction; the amount of tax collected
34    from the purchaser by the retailer on  such  transaction  (or
 
                            -63-           LRB9110257SMdvam20
 1    satisfactory  evidence  that  such  tax  is  not  due in that
 2    particular instance, if that is claimed to be the fact);  the
 3    place  and  date  of the sale, a sufficient identification of
 4    the  property  sold,  and  such  other  information  as   the
 5    Department may reasonably require.
 6        Such  transaction  reporting  return  shall  be filed not
 7    later than 20 days after the day of delivery of the item that
 8    is being sold, but may be filed by the retailer at  any  time
 9    sooner  than  that  if  he chooses to do so.  The transaction
10    reporting return and tax remittance  or  proof  of  exemption
11    from   the  Illinois  use  tax  may  be  transmitted  to  the
12    Department by way of the State agency with  which,  or  State
13    officer  with  whom  the  tangible  personal property must be
14    titled or registered (if titling or registration is required)
15    if the Department and such agency or State officer  determine
16    that   this   procedure   will  expedite  the  processing  of
17    applications for title or registration.
18        With each such transaction reporting return, the retailer
19    shall remit the proper amount of tax  due  (or  shall  submit
20    satisfactory evidence that the sale is not taxable if that is
21    the  case),  to  the  Department or its agents, whereupon the
22    Department shall issue, in the purchaser's name,  a  use  tax
23    receipt  (or  a certificate of exemption if the Department is
24    satisfied that the particular sale is tax exempt) which  such
25    purchaser  may  submit  to  the  agency  with which, or State
26    officer with whom, he must title  or  register  the  tangible
27    personal   property   that   is   involved   (if  titling  or
28    registration is required)  in  support  of  such  purchaser's
29    application  for an Illinois certificate or other evidence of
30    title or registration to such tangible personal property.
31        No retailer's failure or refusal to remit tax under  this
32    Act  precludes  a  user,  who  has paid the proper tax to the
33    retailer, from obtaining his certificate of  title  or  other
34    evidence of title or registration (if titling or registration
 
                            -64-           LRB9110257SMdvam20
 1    is  required)  upon  satisfying the Department that such user
 2    has paid the proper tax (if tax is due) to the retailer.  The
 3    Department shall adopt appropriate rules  to  carry  out  the
 4    mandate of this paragraph.
 5        If  the  user who would otherwise pay tax to the retailer
 6    wants the transaction reporting return filed and the  payment
 7    of  the  tax  or  proof  of  exemption made to the Department
 8    before the retailer is willing to take these actions and such
 9    user has not paid the tax to  the  retailer,  such  user  may
10    certify  to  the  fact  of such delay by the retailer and may
11    (upon the Department being satisfied of  the  truth  of  such
12    certification)  transmit  the  information  required  by  the
13    transaction  reporting  return  and the remittance for tax or
14    proof of exemption directly to the Department and obtain  his
15    tax  receipt  or  exemption determination, in which event the
16    transaction reporting return and tax  remittance  (if  a  tax
17    payment  was required) shall be credited by the Department to
18    the  proper  retailer's  account  with  the  Department,  but
19    without the 2.1% or  1.75%  discount  provided  for  in  this
20    Section  being  allowed.  When the user pays the tax directly
21    to the Department, he shall pay the tax in  the  same  amount
22    and in the same form in which it would be remitted if the tax
23    had been remitted to the Department by the retailer.
24        Refunds  made  by  the seller during the preceding return
25    period  to  purchasers,  on  account  of  tangible   personal
26    property  returned  to  the  seller,  shall  be  allowed as a
27    deduction under subdivision 5 of  his  monthly  or  quarterly
28    return,   as  the  case  may  be,  in  case  the  seller  had
29    theretofore included the  receipts  from  the  sale  of  such
30    tangible  personal  property in a return filed by him and had
31    paid the tax  imposed  by  this  Act  with  respect  to  such
32    receipts.
33        Where  the  seller  is a corporation, the return filed on
34    behalf of such corporation shall be signed by the  president,
 
                            -65-           LRB9110257SMdvam20
 1    vice-president,  secretary  or  treasurer  or by the properly
 2    accredited agent of such corporation.
 3        Where the seller is  a  limited  liability  company,  the
 4    return filed on behalf of the limited liability company shall
 5    be  signed by a manager, member, or properly accredited agent
 6    of the limited liability company.
 7        Except as provided in this Section, the  retailer  filing
 8    the  return  under  this Section shall, at the time of filing
 9    such return, pay to the Department the amount of tax  imposed
10    by  this Act less a discount of 2.1% prior to January 1, 1990
11    and 1.75% on and after January 1, 1990, or  $5  per  calendar
12    year, whichever is greater, which is allowed to reimburse the
13    retailer  for  the  expenses  incurred  in  keeping  records,
14    preparing and filing returns, remitting the tax and supplying
15    data  to  the  Department  on  request.   Any prepayment made
16    pursuant to Section 2d of this Act shall be included  in  the
17    amount  on which such 2.1% or 1.75% discount is computed.  In
18    the case of retailers  who  report  and  pay  the  tax  on  a
19    transaction   by  transaction  basis,  as  provided  in  this
20    Section, such discount shall be  taken  with  each  such  tax
21    remittance  instead  of when such retailer files his periodic
22    return.
23        Before October 1, 2000, if the taxpayer's average monthly
24    tax liability to the Department under this Act, the  Use  Tax
25    Act,  the Service Occupation Tax Act, and the Service Use Tax
26    Act, excluding any liability for  prepaid  sales  tax  to  be
27    remitted  in  accordance  with  Section  2d  of this Act, was
28    $10,000 or more during  the  preceding  4  complete  calendar
29    quarters,  he  shall  file  a return with the Department each
30    month by the 20th day of the month next following  the  month
31    during  which  such  tax liability is incurred and shall make
32    payments to the Department on or before the 7th,  15th,  22nd
33    and  last  day  of  the  month during which such liability is
34    incurred. On and after October 1,  2000,  if  the  taxpayer's
 
                            -66-           LRB9110257SMdvam20
 1    average  monthly  tax  liability to the Department under this
 2    Act, the Use Tax Act, the Service Occupation Tax Act, and the
 3    Service Use Tax Act,  excluding  any  liability  for  prepaid
 4    sales  tax  to  be  remitted in accordance with Section 2d of
 5    this Act, was $20,000 or more during the preceding 4 complete
 6    calendar quarters, he shall file a return with the Department
 7    each month by the 20th day of the month  next  following  the
 8    month  during  which such tax liability is incurred and shall
 9    make payment to the Department on or before  the  7th,  15th,
10    22nd and last day of the month during which such liability is
11    incurred.    If  the month during which such tax liability is
12    incurred began prior to January 1, 1985, each  payment  shall
13    be  in  an  amount  equal  to  1/4  of  the taxpayer's actual
14    liability for the month or an amount set  by  the  Department
15    not  to  exceed  1/4  of the average monthly liability of the
16    taxpayer to the  Department  for  the  preceding  4  complete
17    calendar  quarters  (excluding the month of highest liability
18    and the month of lowest liability in such 4 quarter  period).
19    If  the  month  during  which  such tax liability is incurred
20    begins on or after January 1, 1985 and prior  to  January  1,
21    1987,  each  payment  shall be in an amount equal to 22.5% of
22    the taxpayer's actual liability for the month or 27.5% of the
23    taxpayer's liability for  the  same  calendar  month  of  the
24    preceding year.  If the month during which such tax liability
25    is  incurred  begins on or after January 1, 1987 and prior to
26    January 1, 1988, each payment shall be in an amount equal  to
27    22.5%  of  the  taxpayer's  actual liability for the month or
28    26.25% of the taxpayer's  liability  for  the  same  calendar
29    month  of the preceding year.  If the month during which such
30    tax liability is incurred begins on or after January 1, 1988,
31    and prior to January 1, 1989, or begins on or  after  January
32    1, 1996, each payment shall be in an amount equal to 22.5% of
33    the  taxpayer's  actual liability for the month or 25% of the
34    taxpayer's liability for  the  same  calendar  month  of  the
 
                            -67-           LRB9110257SMdvam20
 1    preceding  year. If the month during which such tax liability
 2    is incurred begins on or after January 1, 1989, and prior  to
 3    January  1, 1996, each payment shall be in an amount equal to
 4    22.5% of the taxpayer's actual liability for the month or 25%
 5    of the taxpayer's liability for the same  calendar  month  of
 6    the preceding year or 100% of the taxpayer's actual liability
 7    for the quarter monthly reporting period.  The amount of such
 8    quarter  monthly payments shall be credited against the final
 9    tax liability  of  the  taxpayer's  return  for  that  month.
10    Before  October  1, 2000, once applicable, the requirement of
11    the making of quarter monthly payments to the  Department  by
12    taxpayers  having an average monthly tax liability of $10,000
13    or more as determined in  the  manner  provided  above  shall
14    continue  until  such taxpayer's average monthly liability to
15    the Department  during  the  preceding  4  complete  calendar
16    quarters  (excluding  the  month of highest liability and the
17    month of lowest liability) is less than $9,000, or until such
18    taxpayer's average monthly liability  to  the  Department  as
19    computed  for  each  calendar  quarter  of  the  4  preceding
20    complete  calendar  quarter  period  is  less  than  $10,000.
21    However,  if  a  taxpayer  can  show  the  Department  that a
22    substantial change in the taxpayer's  business  has  occurred
23    which  causes  the  taxpayer  to  anticipate that his average
24    monthly tax liability for the reasonably  foreseeable  future
25    will fall below the $10,000 threshold stated above, then such
26    taxpayer  may  petition  the  Department for a change in such
27    taxpayer's reporting status.  On and after October  1,  2000,
28    once  applicable,  the  requirement  of the making of quarter
29    monthly payments to the Department  by  taxpayers  having  an
30    average   monthly   tax  liability  of  $20,000  or  more  as
31    determined in the manner provided above shall continue  until
32    such  taxpayer's  average monthly liability to the Department
33    during the preceding 4 complete calendar quarters  (excluding
34    the  month  of  highest  liability  and  the  month of lowest
 
                            -68-           LRB9110257SMdvam20
 1    liability) is less than  $19,000  or  until  such  taxpayer's
 2    average  monthly  liability to the Department as computed for
 3    each calendar quarter of the 4  preceding  complete  calendar
 4    quarter  period is less than $20,000.  However, if a taxpayer
 5    can show the Department that  a  substantial  change  in  the
 6    taxpayer's business has occurred which causes the taxpayer to
 7    anticipate  that  his  average  monthly tax liability for the
 8    reasonably foreseeable future will  fall  below  the  $20,000
 9    threshold  stated  above, then such taxpayer may petition the
10    Department for a change in such taxpayer's reporting  status.
11    The  Department shall change such taxpayer's reporting status
12    unless it finds that such change is seasonal  in  nature  and
13    not  likely  to  be  long  term.  If any such quarter monthly
14    payment is not paid at the time or in the amount required  by
15    this Section, then the taxpayer shall be liable for penalties
16    and interest on the difference between the minimum amount due
17    as  a  payment and the amount of such quarter monthly payment
18    actually and timely paid, except insofar as the taxpayer  has
19    previously  made payments for that month to the Department in
20    excess of the minimum payments previously due as provided  in
21    this  Section. The Department shall make reasonable rules and
22    regulations to govern the quarter monthly payment amount  and
23    quarter monthly payment dates for taxpayers who file on other
24    than a calendar monthly basis.
25        Without  regard to whether a taxpayer is required to make
26    quarter monthly payments as specified above, any taxpayer who
27    is required by Section 2d of this Act to  collect  and  remit
28    prepaid  taxes  and has collected prepaid taxes which average
29    in excess  of  $25,000  per  month  during  the  preceding  2
30    complete  calendar  quarters,  shall  file  a return with the
31    Department as required by Section 2f and shall make  payments
32    to  the  Department on or before the 7th, 15th, 22nd and last
33    day of the month during which such liability is incurred.  If
34    the month during which such tax liability is  incurred  began
 
                            -69-           LRB9110257SMdvam20
 1    prior  to  the effective date of this amendatory Act of 1985,
 2    each payment shall be in an amount not less than 22.5% of the
 3    taxpayer's actual liability under Section 2d.  If  the  month
 4    during  which  such  tax  liability  is incurred begins on or
 5    after January 1, 1986, each payment shall  be  in  an  amount
 6    equal  to  22.5%  of  the taxpayer's actual liability for the
 7    month or 27.5% of  the  taxpayer's  liability  for  the  same
 8    calendar  month of the preceding calendar year.  If the month
 9    during which such tax liability  is  incurred  begins  on  or
10    after  January  1,  1987,  each payment shall be in an amount
11    equal to 22.5% of the taxpayer's  actual  liability  for  the
12    month  or  26.25%  of  the  taxpayer's liability for the same
13    calendar month of the preceding year.   The  amount  of  such
14    quarter  monthly payments shall be credited against the final
15    tax liability of the taxpayer's return for that  month  filed
16    under  this  Section or Section 2f, as the case may be.  Once
17    applicable, the requirement of the making of quarter  monthly
18    payments  to  the Department pursuant to this paragraph shall
19    continue until such taxpayer's average  monthly  prepaid  tax
20    collections during the preceding 2 complete calendar quarters
21    is  $25,000  or less.  If any such quarter monthly payment is
22    not paid at the time or in the amount required, the  taxpayer
23    shall   be   liable   for  penalties  and  interest  on  such
24    difference, except insofar as  the  taxpayer  has  previously
25    made  payments  for  that  month  in  excess  of  the minimum
26    payments previously due.
27        If any payment provided for in this Section  exceeds  the
28    taxpayer's  liabilities  under this Act, the Use Tax Act, the
29    Service Occupation Tax Act and the Service Use  Tax  Act,  as
30    shown on an original monthly return, the Department shall, if
31    requested  by  the  taxpayer,  issue to the taxpayer a credit
32    memorandum no later than 30 days after the date  of  payment.
33    The  credit  evidenced  by  such  credit  memorandum  may  be
34    assigned  by  the  taxpayer  to a similar taxpayer under this
 
                            -70-           LRB9110257SMdvam20
 1    Act, the Use Tax Act, the Service Occupation Tax Act  or  the
 2    Service  Use Tax Act, in accordance with reasonable rules and
 3    regulations to be prescribed by the Department.  If  no  such
 4    request  is made, the taxpayer may credit such excess payment
 5    against tax liability subsequently  to  be  remitted  to  the
 6    Department  under  this  Act,  the  Use  Tax Act, the Service
 7    Occupation Tax Act or the Service Use Tax Act, in  accordance
 8    with  reasonable  rules  and  regulations  prescribed  by the
 9    Department.  If the Department subsequently  determined  that
10    all  or  any part of the credit taken was not actually due to
11    the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
12    shall be reduced by 2.1% or 1.75% of the  difference  between
13    the  credit  taken  and  that actually due, and that taxpayer
14    shall  be  liable  for  penalties  and   interest   on   such
15    difference.
16        If a retailer of motor fuel is entitled to a credit under
17    Section 2d of this Act which exceeds the taxpayer's liability
18    to  the  Department  under  this  Act for the month which the
19    taxpayer is filing a return, the Department shall  issue  the
20    taxpayer a credit memorandum for the excess.
21        Beginning  January  1,  1990,  each  month the Department
22    shall pay into the Local Government Tax Fund, a special  fund
23    in  the  State  treasury  which  is  hereby  created, the net
24    revenue realized for the preceding month from the 1%  tax  on
25    sales  of  food for human consumption which is to be consumed
26    off the premises where  it  is  sold  (other  than  alcoholic
27    beverages,  soft  drinks and food which has been prepared for
28    immediate consumption) and prescription  and  nonprescription
29    medicines,  drugs,  medical  appliances  and  insulin,  urine
30    testing materials, syringes and needles used by diabetics.
31        Beginning  January  1,  1990,  each  month the Department
32    shall pay into the County and Mass Transit District  Fund,  a
33    special  fund  in the State treasury which is hereby created,
34    4% of the net revenue realized for the preceding  month  from
 
                            -71-           LRB9110257SMdvam20
 1    the 6.25% general rate.
 2        Beginning August 1, 2000, each month the Department shall
 3    pay into the County and Mass Transit District Fund 20% of the
 4    net  revenue  realized for the preceding month from the 1.25%
 5    rate on the selling price of motor fuel and gasohol.
 6        Beginning January 1,  1990,  each  month  the  Department
 7    shall  pay  into the Local Government Tax Fund 16% of the net
 8    revenue realized for  the  preceding  month  from  the  6.25%
 9    general  rate  on  the  selling  price  of  tangible personal
10    property.
11        Beginning August 1, 2000, each month the Department shall
12    pay into the Local Government Tax Fund 80% of the net revenue
13    realized for the preceding month from the 1.25% rate  on  the
14    selling price of motor fuel and gasohol.
15        Of the remainder of the moneys received by the Department
16    pursuant  to  this  Act, (a) 1.75% thereof shall be paid into
17    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
18    and  on  and  after  July 1, 1989, 3.8% thereof shall be paid
19    into the Build Illinois Fund; provided, however, that  if  in
20    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
21    as  the case may be, of the moneys received by the Department
22    and required to be paid into the Build Illinois Fund pursuant
23    to this Act, Section 9 of the Use Tax Act, Section 9  of  the
24    Service  Use Tax Act, and Section 9 of the Service Occupation
25    Tax Act, such Acts being hereinafter called  the  "Tax  Acts"
26    and  such  aggregate  of 2.2% or 3.8%, as the case may be, of
27    moneys being hereinafter called the "Tax Act Amount", and (2)
28    the amount transferred to the Build Illinois  Fund  from  the
29    State  and Local Sales Tax Reform Fund shall be less than the
30    Annual Specified Amount (as hereinafter defined),  an  amount
31    equal  to  the  difference shall be immediately paid into the
32    Build  Illinois  Fund  from  other  moneys  received  by  the
33    Department pursuant to the Tax Acts;  the  "Annual  Specified
34    Amount"  means  the  amounts specified below for fiscal years
 
                            -72-           LRB9110257SMdvam20
 1    1986 through 1993:
 2             Fiscal Year              Annual Specified Amount
 3                 1986                       $54,800,000
 4                 1987                       $76,650,000
 5                 1988                       $80,480,000
 6                 1989                       $88,510,000
 7                 1990                       $115,330,000
 8                 1991                       $145,470,000
 9                 1992                       $182,730,000
10                 1993                      $206,520,000;
11    and means the Certified Annual Debt Service  Requirement  (as
12    defined  in Section 13 of the Build Illinois Bond Act) or the
13    Tax Act Amount, whichever is greater, for  fiscal  year  1994
14    and  each  fiscal year thereafter; and further provided, that
15    if on the last business day of any month the sum of  (1)  the
16    Tax  Act  Amount  required  to  be  deposited  into the Build
17    Illinois Bond Account in the Build Illinois Fund during  such
18    month  and  (2)  the amount transferred to the Build Illinois
19    Fund from the State and Local Sales  Tax  Reform  Fund  shall
20    have  been  less than 1/12 of the Annual Specified Amount, an
21    amount equal to the difference shall be immediately paid into
22    the Build Illinois Fund from other  moneys  received  by  the
23    Department  pursuant  to the Tax Acts; and, further provided,
24    that in no  event  shall  the  payments  required  under  the
25    preceding proviso result in aggregate payments into the Build
26    Illinois Fund pursuant to this clause (b) for any fiscal year
27    in  excess  of  the greater of (i) the Tax Act Amount or (ii)
28    the Annual  Specified  Amount  for  such  fiscal  year.   The
29    amounts payable into the Build Illinois Fund under clause (b)
30    of the first sentence in this paragraph shall be payable only
31    until such time as the aggregate amount on deposit under each
32    trust   indenture   securing  Bonds  issued  and  outstanding
33    pursuant to the Build Illinois Bond Act is sufficient, taking
34    into account any future investment income, to fully  provide,
 
                            -73-           LRB9110257SMdvam20
 1    in  accordance  with such indenture, for the defeasance of or
 2    the payment  of  the  principal  of,  premium,  if  any,  and
 3    interest  on  the  Bonds secured by such indenture and on any
 4    Bonds expected to be issued thereafter and all fees and costs
 5    payable  with  respect  thereto,  all  as  certified  by  the
 6    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
 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 first sentence of this paragraph and shall reduce the
21    amount otherwise payable for such  fiscal  year  pursuant  to
22    that  clause  (b).   The  moneys  received  by the Department
23    pursuant to this Act and required to be  deposited  into  the
24    Build  Illinois  Fund  are  subject  to the pledge, claim and
25    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 sums designated as
34    "Total Deposit", shall be deposited  in  the  aggregate  from
 
                            -74-           LRB9110257SMdvam20
 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                        93,000,000
19                 2005                        97,000,000
20                 2006                       102,000,000
21                 2007                       108,000,000
22                 2008                       115,000,000
23                 2009                       120,000,000
24                 2010                       126,000,000
25                 2011                       132,000,000
26                 2012                       138,000,000
27                 2013 and                   145,000,000
28        each fiscal year
29        thereafter that bonds
30        are outstanding under
31        Section 13.2 of the
32        Metropolitan Pier and
33        Exposition Authority
34        Act, but not after fiscal year 2029.
 
                            -75-           LRB9110257SMdvam20
 1        Beginning  July 20, 1993 and in each month of each fiscal
 2    year thereafter, one-eighth of the amount  requested  in  the
 3    certificate  of  the  Chairman  of  the Metropolitan Pier and
 4    Exposition Authority for that fiscal year,  less  the  amount
 5    deposited  into the McCormick Place Expansion Project Fund by
 6    the State Treasurer in the respective month under  subsection
 7    (g)  of  Section  13  of the Metropolitan Pier and Exposition
 8    Authority Act, plus cumulative deficiencies in  the  deposits
 9    required  under  this  Section for previous months and years,
10    shall be deposited into the McCormick Place Expansion Project
11    Fund, until the full amount requested for  the  fiscal  year,
12    but  not  in  excess  of the amount specified above as "Total
13    Deposit", has been deposited.
14        Subject to payment of amounts  into  the  Build  Illinois
15    Fund  and the McCormick Place Expansion Project Fund pursuant
16    to the preceding  paragraphs  or  in  any  amendment  thereto
17    hereafter  enacted,  each month the Department shall pay into
18    the Local  Government  Distributive  Fund  0.4%  of  the  net
19    revenue  realized for the preceding month from the 5% general
20    rate or 0.4% of 80% of  the  net  revenue  realized  for  the
21    preceding  month from the 6.25% general rate, as the case may
22    be, on the selling price of tangible personal property  which
23    amount  shall,  subject  to  appropriation, be distributed as
24    provided in Section 2 of the State Revenue Sharing  Act.   No
25    payments or distributions pursuant to this paragraph shall be
26    made  if  the  tax  imposed  by  this  Act on photoprocessing
27    products is declared unconstitutional,  or  if  the  proceeds
28    from  such  tax  are  unavailable for distribution because of
29    litigation.
30        Subject to payment of amounts  into  the  Build  Illinois
31    Fund,  the McCormick Place Expansion Project to the preceding
32    paragraphs or in any amendments  thereto  hereafter  enacted,
33    beginning  July  1, 1993, the Department shall each month pay
34    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
 
                            -76-           LRB9110257SMdvam20
 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,  75%  thereof shall be paid into the
 6    State Treasury and 25% shall be reserved in a special account
 7    and used only for the transfer to the Common School  Fund  as
 8    part of the monthly transfer from the General Revenue Fund in
 9    accordance with Section 8a of the State Finance Act.
10        The  Department  may,  upon  separate written notice to a
11    taxpayer, require the taxpayer to prepare and file  with  the
12    Department  on a form prescribed by the Department within not
13    less than 60 days after  receipt  of  the  notice  an  annual
14    information  return for the tax year specified in the notice.
15    Such  annual  return  to  the  Department  shall  include   a
16    statement  of  gross receipts as shown by the retailer's last
17    Federal income tax return.  If  the  total  receipts  of  the
18    business  as reported in the Federal income tax return do not
19    agree with the gross receipts reported to the  Department  of
20    Revenue for the same period, the retailer shall attach to his
21    annual  return  a  schedule showing a reconciliation of the 2
22    amounts and the reasons for the difference.   The  retailer's
23    annual  return to the Department shall also disclose the cost
24    of goods sold by the retailer during the year covered by such
25    return, opening and closing inventories  of  such  goods  for
26    such year, costs of goods used from stock or taken from stock
27    and  given  away  by  the  retailer during such year, payroll
28    information of the retailer's business during such  year  and
29    any  additional  reasonable  information which the Department
30    deems would be helpful in determining  the  accuracy  of  the
31    monthly,  quarterly  or annual returns filed by such retailer
32    as provided for in this Section.
33        If the annual information return required by this Section
34    is not filed when and as  required,  the  taxpayer  shall  be
 
                            -77-           LRB9110257SMdvam20
 1    liable as follows:
 2             (i)  Until  January  1,  1994, the taxpayer shall be
 3        liable for a penalty equal to 1/6 of 1% of  the  tax  due
 4        from such taxpayer under this Act during the period to be
 5        covered  by  the annual return for each month or fraction
 6        of a month until such return is filed  as  required,  the
 7        penalty  to  be assessed and collected in the same manner
 8        as any other penalty provided for in this Act.
 9             (ii)  On and after January  1,  1994,  the  taxpayer
10        shall be liable for a penalty as described in Section 3-4
11        of the Uniform Penalty and Interest Act.
12        The chief executive officer, proprietor, owner or highest
13    ranking  manager  shall sign the annual return to certify the
14    accuracy of the information contained therein.    Any  person
15    who  willfully  signs  the  annual return containing false or
16    inaccurate  information  shall  be  guilty  of  perjury   and
17    punished  accordingly.   The annual return form prescribed by
18    the Department  shall  include  a  warning  that  the  person
19    signing the return may be liable for perjury.
20        The  provisions  of this Section concerning the filing of
21    an annual information return do not apply to a  retailer  who
22    is  not required to file an income tax return with the United
23    States Government.
24        As soon as possible after the first day  of  each  month,
25    upon   certification   of  the  Department  of  Revenue,  the
26    Comptroller shall order transferred and the  Treasurer  shall
27    transfer  from the General Revenue Fund to the Motor Fuel Tax
28    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
29    realized  under  this  Act  for  the  second preceding month.
30    Beginning April 1, 2000, this transfer is no longer  required
31    and shall not be made.
32        Net  revenue  realized  for  a month shall be the revenue
33    collected by the State pursuant to this Act, less the  amount
34    paid  out  during  that  month  as  refunds  to taxpayers for
 
                            -78-           LRB9110257SMdvam20
 1    overpayment of liability.
 2        For greater simplicity of administration,  manufacturers,
 3    importers  and  wholesalers whose products are sold at retail
 4    in Illinois by numerous retailers, and who wish to do so, may
 5    assume the responsibility for accounting and  paying  to  the
 6    Department  all  tax  accruing under this Act with respect to
 7    such sales, if the retailers who are  affected  do  not  make
 8    written objection to the Department to this arrangement.
 9        Any  person  who  promotes,  organizes,  provides  retail
10    selling  space  for concessionaires or other types of sellers
11    at the Illinois State Fair, DuQuoin State Fair, county fairs,
12    local fairs, art shows, flea markets and similar  exhibitions
13    or  events,  including  any  transient merchant as defined by
14    Section 2 of the Transient Merchant Act of 1987, is  required
15    to  file  a  report with the Department providing the name of
16    the merchant's business, the name of the  person  or  persons
17    engaged  in  merchant's  business,  the permanent address and
18    Illinois Retailers Occupation Tax Registration Number of  the
19    merchant,  the  dates  and  location  of  the event and other
20    reasonable information that the Department may require.   The
21    report must be filed not later than the 20th day of the month
22    next  following  the month during which the event with retail
23    sales was held.  Any  person  who  fails  to  file  a  report
24    required  by  this  Section commits a business offense and is
25    subject to a fine not to exceed $250.
26        Any person engaged in the business  of  selling  tangible
27    personal property at retail as a concessionaire or other type
28    of  seller  at  the  Illinois  State  Fair, county fairs, art
29    shows, flea markets and similar exhibitions or events, or any
30    transient merchants, as defined by Section 2 of the Transient
31    Merchant Act of 1987, may be required to make a daily  report
32    of  the  amount of such sales to the Department and to make a
33    daily payment of the full amount of tax due.  The  Department
34    shall  impose  this requirement when it finds that there is a
 
                            -79-           LRB9110257SMdvam20
 1    significant risk of loss of revenue to the State at  such  an
 2    exhibition  or  event.   Such  a  finding  shall  be based on
 3    evidence that a  substantial  number  of  concessionaires  or
 4    other  sellers  who  are  not  residents  of Illinois will be
 5    engaging  in  the  business  of  selling  tangible   personal
 6    property  at  retail  at  the  exhibition  or event, or other
 7    evidence of a significant risk of  loss  of  revenue  to  the
 8    State.  The Department shall notify concessionaires and other
 9    sellers  affected  by the imposition of this requirement.  In
10    the  absence  of  notification   by   the   Department,   the
11    concessionaires and other sellers shall file their returns as
12    otherwise required in this Section.
13    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
14    91-37,   eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,  eff.
15    7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)

16        Section 22.   The  Motor  Fuel  Tax  Law  is  amended  by
17    changing Section 13a as follows:

18        (35 ILCS 505/13a) (from Ch. 120, par. 429a)
19        Sec.  13a.   (1)  A tax is hereby imposed upon the use of
20    motor fuel upon highways of this State  by  commercial  motor
21    vehicles.  The  tax  shall be comprised of 2 parts.  Part (a)
22    shall be at the rate established by Section 2 of this Act, as
23    heretofore or hereafter amended.  Part (b) shall  be  at  the
24    rate  established by subsection (2) of this Section as now or
25    hereafter amended.
26        (2)  A rate shall be established by the Department as  of
27    January 1  of each year using the average "selling price", as
28    defined  in  the Retailers' Occupation Tax Act, per gallon of
29    motor fuel sold in this State during the previous  12  months
30    and  multiplying  it  by  6  1/4%  to determine the cents per
31    gallon rate. For the period beginning on  July  1,  2000  and
32    through  December  31, 2000, the Department shall establish a
 
                            -80-           LRB9110257SMdvam20
 1    rate using the average "selling price",  as  defined  in  the
 2    Retailers'  Occupation Tax Act, per gallon of motor fuel sold
 3    in this State during calendar year 1999 and multiplying it by
 4    1.25% to determine the cents per gallon rate.
 5    (Source: P.A. 88-480.)

 6        Section 99.  Effective date.  This Act  takes  effect  on
 7    July 1, 2000.".

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