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92_HB0063 LRB9201187SMdv 1 AN ACT in relation to coal. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5 Illinois Coal Mining and Coal Development Act. 6 Section 5. Definitions. For the purposes of this Act: 7 "Agency" means the Illinois Environmental Protection 8 Agency. 9 "Fund" means the Coal Mining and Coal Development Fund. 10 "Generating unit" means any coal-fired electricity 11 generating facility with a nameplate capacity of 15 megawatts 12 or greater used primarily to generate electricity for sale. 13 "Qualified personnel" means employees who install, 14 operate, and maintain generation, transmission, or 15 distribution facilities within the State and have the 16 requisite knowledge, skills, and competence to perform those 17 functions in a safe and responsible manner in order to 18 provide safe and reliable service. 19 Section 10. Illinois Coal Mining and Coal Development 20 Board. 21 (a) The Illinois Coal Mining and Coal Development Board 22 is established as an advisory board to the Agency. The Board 23 shall be composed of the following 14 voting members: 2 24 members of the General Assembly appointed by the Speaker of 25 the House of Representatives, 2 members of the General 26 Assembly appointed by the Minority Leader of the House of 27 Representatives; 2 members of the General Assembly appointed 28 by the President of the Senate, 2 members of the General 29 Assembly appointed by the Minority Leader of the Senate; 2 30 members appointed by the Governor; 1 member selected by the -2- LRB9201187SMdv 1 International Brotherhood of Electric Workers; 1 member 2 selected by the United Mine Workers; 1 member selected by the 3 Illinois Coal Association; and 1 member selected by the 4 Illinois Environmental Council. The Governor shall select 1 5 of the 14 Board members to serve as Chair pending the first 6 election of officers by Board members. 7 The members appointed by the Governor shall serve for 8 terms of 4 years, unless otherwise provided in this 9 subsection. The initial terms of original appointees shall 10 expire on January 15, 2005. The term of the members 11 appointed by the Governor to fill a vacancy created on 12 January 15, 2005, shall expire on January 15, 2009. The 13 terms of the members appointed by the Governor to fill a 14 vacancy created on January 15, 2009, shall expire on January 15 15, 2013 or January 15, 2017, as determined by the Governor. 16 A member appointed by a legislative leader shall serve a 17 term of 5 years, unless otherwise provided in this 18 subsection. The initial term of a member appointed by a 19 legislative leader shall expire on January 15, 2006. The 20 term of a member appointed by a legislative leader to fill a 21 vacancy created on January 15, 2006, shall expire on January 22 15, 2011 or January 15, 2017, as determined by the 23 legislative leader. 24 The members chosen by the International Brotherhood of 25 Electrical Workers, United Mine Workers, Illinois Coal 26 Association, and Illinois Environmental Council shall serve 27 for terms of 6 years. The initial terms of original 28 appointees shall expire on January 15, 2007. The term of a 29 member chosen by the International Brotherhood of Electrical 30 Workers, United Mine Workers, Illinois Coal Association, or 31 Illinois Environmental Council to fill a vacancy created on 32 January 15, 2007 shall expire as follows: 2 on January 15, 33 2013 and 2 on January 15, 2017, as determined by lot. 34 A Board member appointed by the Speaker of the House of -3- LRB9201187SMdv 1 Representatives, the Minority Leader of the House of 2 Representatives, the President of the Senate, or the Minority 3 Leader of the Senate shall not receive compensation. All 4 other Board members shall be entitled to compensation for 5 their services not to exceed $25,000 annually. All Board 6 members shall be entitled to reimbursement for reasonable 7 expenses incurred in the performance of their duties as Board 8 members. 9 The Board shall meet at least annually or at the call of 10 the Chair for a meeting of the Board. At any time, a 11 majority of the Board may petition the Chair for a meeting of 12 the Board. Eight members of the Board shall constitute a 13 quorum. 14 (b) The Board shall provide advice and make 15 recommendations on the following Agency powers and duties: 16 (1) To develop a program to increase the 17 utilization of Illinois coal. 18 (2) To approve projects and funding for 19 architectural and technical planning and installation of 20 sulfur dioxide and nitrogen emission control systems for 21 coal-fired electric generating units located in Illinois, 22 if the owner of the generating unit receiving the funding 23 agrees to: 24 (A) burn Illinois coal to generate 25 electricity, and 26 (B) employ qualified personal to install, 27 operate, and maintain generation, transmission, or 28 distribution facilities within the State. 29 (3) To cooperate to the fullest extent possible 30 with State and federal agencies and departments, 31 independent organizations, and other interested groups, 32 public and private, for the purposes of promoting 33 Illinois coal resources. 34 (4) To submit an annual report to the Governor and -4- LRB9201187SMdv 1 the General Assembly outlining the progress and 2 accomplishments made in the year, providing an annual 3 accounting of funds received and disbursed, and reviewing 4 the status of the program. 5 (5) To adopt, amend, and repeal rules, regulations, 6 and bylaws governing the Board's organization and conduct 7 of business. 8 (6) To authorize the expenditure of moneys for coal 9 mining and coal development projects from the Coal Mining 10 and Coal Development Fund. 11 (7) To develop strategies and to propose policies 12 to promote environmentally responsible uses of Illinois 13 coal for meeting electric power supply requirements and 14 for other purposes. 15 Section 15. Rules. The Illinois Environmental Protection 16 Agency is authorized to promulgate rules to implement the 17 provisions of this Act. 18 Section 20. Bonds. The State of Illinois is authorized 19 to issue, sell, and provide for the retirement of general 20 obligation bonds of the State of Illinois in the aggregate 21 principal amount of $500,000,000, hereinafter called "Bonds", 22 for the purposes of architectural and technical planning and 23 installation of sulfur dioxide and nitrogen oxide emission 24 control systems for coal-fired electricity generating units. 25 Section 25. Bond proceeds. The proceeds of the bonds 26 shall be deposited into a separate fund known as the Coal 27 Mining and Coal Development Fund, which is hereby created. 28 Section 30. Expenditure of Funds. At all times, the 29 proceeds from the sale of Bonds are subject to appropriation 30 by the General Assembly and may be expended in such amounts -5- LRB9201187SMdv 1 and at such times as the Illinois Environmental Protection 2 Agency may deem necessary or desirable for the purposes of 3 this Act. 4 Section 35. The Illinois Coal and Energy Development 5 Bond Act is amended by changing Section 6 as follows: 6 (20 ILCS 1110/6) (from Ch. 96 1/2, par. 4106) 7 Sec. 6. The Department of Commerce and Community Affairs 8 is authorized to use $120,000,000 for the purposes specified 9 in this Act.These funds shall be expended only for a grant10to the owner of a generating station located in Illinois and11having at least three coal-fired generating units with12accredited summer capacity greater than 500 megawatts each at13such generating station as specifically authorized by this14paragraph.Notwithstanding any of the other provisions of 15 this Act, in considering the approval of projects to be 16 funded under this Act, the Department of Commerce and 17 Community Affairs shall give special consideration to 18 projects which are designed to remove sulfur and other 19 pollutants in the preparation and utilization of coal, and in 20 the use and operation of electric utility generating plants 21 and industrial facilities which utilize Illinois coal as 22 their primary source of fuel.The Department of Commerce and23Community Affairs is directed to enter into a contract with24the owner of a generating station located in Illinois and25having at least three coal-fired generating units with26accredited summer capability greater than 500 megawatts each27at such generating station for a grant of $35,000,000 to be28made by the State of Illinois to such owner to be used to pay29costs of designing, acquiring, constructing, installing and30testing facilities to reduce sulfur dioxide emissions at one31such generating unit to allow that unit to meet the32requirements of the Federal Clean Air Act Amendments of 1990-6- LRB9201187SMdv 1(P.L. 101-549) while continuing to use coal mined in Illinois2as its source of fuel.3 (Source: P.A. 91-583, eff. 1-1-00.) 4 Section 40. The State Finance Act is amended by adding 5 Section 5.545 as follows: 6 (30 ILCS 105/5.545 new) 7 Sec. 5.545. The Coal Mining and Coal Development Fund. 8 Section 45. The General Obligation Bond Act is amended 9 by changing Section 2 as follows: 10 (30 ILCS 330/2) (from Ch. 127, par. 652) 11 Sec. 2. Authorization for Bonds. The State of Illinois 12 is authorized to issue, sell and provide for the retirement 13 of General Obligation Bonds of the State of Illinois for the 14 categories and specific purposes expressed in Sections 2 15 through 8 of this Act, in the total amount of $14,697,632,592 16$14,197,632,592. 17 The bonds authorized in this Section 2 and in Section 16 18 of this Act are herein called "Bonds". 19 Of the total amount of Bonds authorized in this Act, up 20 to $2,200,000,000 in aggregate original principal amount may 21 be issued and sold in accordance with the Baccalaureate 22 Savings Act in the form of General Obligation College Savings 23 Bonds. 24 Of the total amount of Bonds authorized in this Act, up 25 to $300,000,000 in aggregate original principal amount may be 26 issued and sold in accordance with the Retirement Savings Act 27 in the form of General Obligation Retirement Savings Bonds. 28 The issuance and sale of Bonds pursuant to the General 29 Obligation Bond Act is an economical and efficient method of 30 financing the capital needs of the State. This Act will -7- LRB9201187SMdv 1 permit the issuance of a multi-purpose General Obligation 2 Bond with uniform terms and features. This will not only 3 lower the cost of registration but also reduce the overall 4 cost of issuing debt by improving the marketability of 5 Illinois General Obligation Bonds. 6 (Source: P.A. 90-1, eff. 2-20-97; 90-8, eff. 12-8-97; 90-549, 7 eff. 12-8-97; 90-586, eff. 6-4-98; 91-39, eff. 6-15-99; 8 91-53, eff 6-30-99; 91-710, eff. 5-17-00.) 9 (30 ILCS 330/7) (from Ch. 127, par. 657) 10 Sec. 7. Coal and Energy Development. The amount of 11 $163,200,000 is authorized to be used by the Department of 12 Commerce and Community Affairs for coal and energy 13 development purposes, pursuant to Sections 2, 3 and 3.1 of 14 the Illinois Coal and Energy Development Bond Act, and for 15 the purposes specified in Section 8.1 of the Energy 16 Conservation and Coal Development Act. Of this amount 17 $115,000,000 is for the specific purposes of acquisition, 18 development, construction, reconstruction, improvement, 19 financing, architectural and technical planning and 20 installation of capital facilities consisting of buildings, 21 structures, durable equipment, and land for the purpose of 22 capital development of coal resources within the State and 23 for the purposes specified in Section 8.1 of the Energy 24 Conservation and Coal Development Act, $35,000,000 is for the 25 purposes specified in Section 8.1 of the Energy Conservation 26 and Coal Development Act,and making a grant to the owner of27a generating station located in Illinois and having at least28three coal-fired generating units with accredited summer29capability greater than 500 megawatts each at such generating30station as provided in Section 6 of that Bond Actand 31 $13,200,000 is for research, development and demonstration of 32 forms of energy other than that derived from coal, either on 33 or off State property. -8- LRB9201187SMdv 1 The amount of $500,000,000 is authorized to be used by 2 the Environmental Protection Agency for the purposes stated 3 in subsection (b) of Section 3 of the Coal Mining and Coal 4 Development Act. 5 (Source: P.A. 89-445, eff. 2-7-96; 90-312, eff. 8-1-97; 6 90-549, eff. 12-8-97.) 7 Section 50. The Use Tax Act is amended by changing 8 Section 9 as follows: 9 (35 ILCS 105/9) (from Ch. 120, par. 439.9) 10 Sec. 9. Except as to motor vehicles, watercraft, 11 aircraft, and trailers that are required to be registered 12 with an agency of this State, each retailer required or 13 authorized to collect the tax imposed by this Act shall pay 14 to the Department the amount of such tax (except as otherwise 15 provided) at the time when he is required to file his return 16 for the period during which such tax was collected, less a 17 discount of 2.1% prior to January 1, 1990, and 1.75% on and 18 after January 1, 1990, or $5 per calendar year, whichever is 19 greater, which is allowed to reimburse the retailer for 20 expenses incurred in collecting the tax, keeping records, 21 preparing and filing returns, remitting the tax and supplying 22 data to the Department on request. In the case of retailers 23 who report and pay the tax on a transaction by transaction 24 basis, as provided in this Section, such discount shall be 25 taken with each such tax remittance instead of when such 26 retailer files his periodic return. A retailer need not 27 remit that part of any tax collected by him to the extent 28 that he is required to remit and does remit the tax imposed 29 by the Retailers' Occupation Tax Act, with respect to the 30 sale of the same property. 31 Where such tangible personal property is sold under a 32 conditional sales contract, or under any other form of sale -9- LRB9201187SMdv 1 wherein the payment of the principal sum, or a part thereof, 2 is extended beyond the close of the period for which the 3 return is filed, the retailer, in collecting the tax (except 4 as to motor vehicles, watercraft, aircraft, and trailers that 5 are required to be registered with an agency of this State), 6 may collect for each tax return period, only the tax 7 applicable to that part of the selling price actually 8 received during such tax return period. 9 Except as provided in this Section, on or before the 10 twentieth day of each calendar month, such retailer shall 11 file a return for the preceding calendar month. Such return 12 shall be filed on forms prescribed by the Department and 13 shall furnish such information as the Department may 14 reasonably require. 15 The Department may require returns to be filed on a 16 quarterly basis. If so required, a return for each calendar 17 quarter shall be filed on or before the twentieth day of the 18 calendar month following the end of such calendar quarter. 19 The taxpayer shall also file a return with the Department for 20 each of the first two months of each calendar quarter, on or 21 before the twentieth day of the following calendar month, 22 stating: 23 1. The name of the seller; 24 2. The address of the principal place of business 25 from which he engages in the business of selling tangible 26 personal property at retail in this State; 27 3. The total amount of taxable receipts received by 28 him during the preceding calendar month from sales of 29 tangible personal property by him during such preceding 30 calendar month, including receipts from charge and time 31 sales, but less all deductions allowed by law; 32 4. The amount of credit provided in Section 2d of 33 this Act; 34 5. The amount of tax due; -10- LRB9201187SMdv 1 5-5. The signature of the taxpayer; and 2 6. Such other reasonable information as the 3 Department may require. 4 If a taxpayer fails to sign a return within 30 days after 5 the proper notice and demand for signature by the Department, 6 the return shall be considered valid and any amount shown to 7 be due on the return shall be deemed assessed. 8 Beginning October 1, 1993, a taxpayer who has an average 9 monthly tax liability of $150,000 or more shall make all 10 payments required by rules of the Department by electronic 11 funds transfer. Beginning October 1, 1994, a taxpayer who has 12 an average monthly tax liability of $100,000 or more shall 13 make all payments required by rules of the Department by 14 electronic funds transfer. Beginning October 1, 1995, a 15 taxpayer who has an average monthly tax liability of $50,000 16 or more shall make all payments required by rules of the 17 Department by electronic funds transfer. Beginning October 1, 18 2000, a taxpayer who has an annual tax liability of $200,000 19 or more shall make all payments required by rules of the 20 Department by electronic funds transfer. The term "annual 21 tax liability" shall be the sum of the taxpayer's liabilities 22 under this Act, and under all other State and local 23 occupation and use tax laws administered by the Department, 24 for the immediately preceding calendar year. The term 25 "average monthly tax liability" means the sum of the 26 taxpayer's liabilities under this Act, and under all other 27 State and local occupation and use tax laws administered by 28 the Department, for the immediately preceding calendar year 29 divided by 12. 30 Before August 1 of each year beginning in 1993, the 31 Department shall notify all taxpayers required to make 32 payments by electronic funds transfer. All taxpayers required 33 to make payments by electronic funds transfer shall make 34 those payments for a minimum of one year beginning on October -11- LRB9201187SMdv 1 1. 2 Any taxpayer not required to make payments by electronic 3 funds transfer may make payments by electronic funds transfer 4 with the permission of the Department. 5 All taxpayers required to make payment by electronic 6 funds transfer and any taxpayers authorized to voluntarily 7 make payments by electronic funds transfer shall make those 8 payments in the manner authorized by the Department. 9 The Department shall adopt such rules as are necessary to 10 effectuate a program of electronic funds transfer and the 11 requirements of this Section. 12 Before October 1, 2000, if the taxpayer's average monthly 13 tax liability to the Department under this Act, the 14 Retailers' Occupation Tax Act, the Service Occupation Tax 15 Act, the Service Use Tax Act was $10,000 or more during the 16 preceding 4 complete calendar quarters, he shall file a 17 return with the Department each month by the 20th day of the 18 month next following the month during which such tax 19 liability is incurred and shall make payments to the 20 Department on or before the 7th, 15th, 22nd and last day of 21 the month during which such liability is incurred. On and 22 after October 1, 2000, if the taxpayer's average monthly tax 23 liability to the Department under this Act, the Retailers' 24 Occupation Tax Act, the Service Occupation Tax Act, and the 25 Service Use Tax Act was $20,000 or more during the preceding 26 4 complete calendar quarters, he shall file a return with the 27 Department each month by the 20th day of the month next 28 following the month during which such tax liability is 29 incurred and shall make payment to the Department on or 30 before the 7th, 15th, 22nd and last day of the month during 31 which such liability is incurred. If the month during which 32 such tax liability is incurred began prior to January 1, 33 1985, each payment shall be in an amount equal to 1/4 of the 34 taxpayer's actual liability for the month or an amount set by -12- LRB9201187SMdv 1 the Department not to exceed 1/4 of the average monthly 2 liability of the taxpayer to the Department for the preceding 3 4 complete calendar quarters (excluding the month of highest 4 liability and the month of lowest liability in such 4 quarter 5 period). If the month during which such tax liability is 6 incurred begins on or after January 1, 1985, and prior to 7 January 1, 1987, each payment shall be in an amount equal to 8 22.5% of the taxpayer's actual liability for the month or 9 27.5% of the taxpayer's liability for the same calendar month 10 of the preceding year. If the month during which such tax 11 liability is incurred begins on or after January 1, 1987, and 12 prior to January 1, 1988, each payment shall be in an amount 13 equal to 22.5% of the taxpayer's actual liability for the 14 month or 26.25% of the taxpayer's liability for the same 15 calendar month of the preceding year. If the month during 16 which such tax liability is incurred begins on or after 17 January 1, 1988, and prior to January 1, 1989, or begins on 18 or after January 1, 1996, each payment shall be in an amount 19 equal to 22.5% of the taxpayer's actual liability for the 20 month or 25% of the taxpayer's liability for the same 21 calendar month of the preceding year. If the month during 22 which such tax liability is incurred begins on or after 23 January 1, 1989, and prior to January 1, 1996, each payment 24 shall be in an amount equal to 22.5% of the taxpayer's actual 25 liability for the month or 25% of the taxpayer's liability 26 for the same calendar month of the preceding year or 100% of 27 the taxpayer's actual liability for the quarter monthly 28 reporting period. The amount of such quarter monthly 29 payments shall be credited against the final tax liability of 30 the taxpayer's return for that month. Before October 1, 31 2000, once applicable, the requirement of the making of 32 quarter monthly payments to the Department shall continue 33 until such taxpayer's average monthly liability to the 34 Department during the preceding 4 complete calendar quarters -13- LRB9201187SMdv 1 (excluding the month of highest liability and the month of 2 lowest liability) is less than $9,000, or until such 3 taxpayer's average monthly liability to the Department as 4 computed for each calendar quarter of the 4 preceding 5 complete calendar quarter period is less than $10,000. 6 However, if a taxpayer can show the Department that a 7 substantial change in the taxpayer's business has occurred 8 which causes the taxpayer to anticipate that his average 9 monthly tax liability for the reasonably foreseeable future 10 will fall below the $10,000 threshold stated above, then such 11 taxpayer may petition the Department for change in such 12 taxpayer's reporting status. On and after October 1, 2000, 13 once applicable, the requirement of the making of quarter 14 monthly payments to the Department shall continue until such 15 taxpayer's average monthly liability to the Department during 16 the preceding 4 complete calendar quarters (excluding the 17 month of highest liability and the month of lowest liability) 18 is less than $19,000 or until such taxpayer's average monthly 19 liability to the Department as computed for each calendar 20 quarter of the 4 preceding complete calendar quarter period 21 is less than $20,000. However, if a taxpayer can show the 22 Department that a substantial change in the taxpayer's 23 business has occurred which causes the taxpayer to anticipate 24 that his average monthly tax liability for the reasonably 25 foreseeable future will fall below the $20,000 threshold 26 stated above, then such taxpayer may petition the Department 27 for a change in such taxpayer's reporting status. The 28 Department shall change such taxpayer's reporting status 29 unless it finds that such change is seasonal in nature and 30 not likely to be long term. If any such quarter monthly 31 payment is not paid at the time or in the amount required by 32 this Section, then the taxpayer shall be liable for penalties 33 and interest on the difference between the minimum amount due 34 and the amount of such quarter monthly payment actually and -14- LRB9201187SMdv 1 timely paid, except insofar as the taxpayer has previously 2 made payments for that month to the Department in excess of 3 the minimum payments previously due as provided in this 4 Section. The Department shall make reasonable rules and 5 regulations to govern the quarter monthly payment amount and 6 quarter monthly payment dates for taxpayers who file on other 7 than a calendar monthly basis. 8 If any such payment provided for in this Section exceeds 9 the taxpayer's liabilities under this Act, the Retailers' 10 Occupation Tax Act, the Service Occupation Tax Act and the 11 Service Use Tax Act, as shown by an original monthly return, 12 the Department shall issue to the taxpayer a credit 13 memorandum no later than 30 days after the date of payment, 14 which memorandum may be submitted by the taxpayer to the 15 Department in payment of tax liability subsequently to be 16 remitted by the taxpayer to the Department or be assigned by 17 the taxpayer to a similar taxpayer under this Act, the 18 Retailers' Occupation Tax Act, the Service Occupation Tax Act 19 or the Service Use Tax Act, in accordance with reasonable 20 rules and regulations to be prescribed by the Department, 21 except that if such excess payment is shown on an original 22 monthly return and is made after December 31, 1986, no credit 23 memorandum shall be issued, unless requested by the taxpayer. 24 If no such request is made, the taxpayer may credit such 25 excess payment against tax liability subsequently to be 26 remitted by the taxpayer to the Department under this Act, 27 the Retailers' Occupation Tax Act, the Service Occupation Tax 28 Act or the Service Use Tax Act, in accordance with reasonable 29 rules and regulations prescribed by the Department. If the 30 Department subsequently determines that all or any part of 31 the credit taken was not actually due to the taxpayer, the 32 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced 33 by 2.1% or 1.75% of the difference between the credit taken 34 and that actually due, and the taxpayer shall be liable for -15- LRB9201187SMdv 1 penalties and interest on such difference. 2 If the retailer is otherwise required to file a monthly 3 return and if the retailer's average monthly tax liability to 4 the Department does not exceed $200, the Department may 5 authorize his returns to be filed on a quarter annual basis, 6 with the return for January, February, and March of a given 7 year being due by April 20 of such year; with the return for 8 April, May and June of a given year being due by July 20 of 9 such year; with the return for July, August and September of 10 a given year being due by October 20 of such year, and with 11 the return for October, November and December of a given year 12 being due by January 20 of the following year. 13 If the retailer is otherwise required to file a monthly 14 or quarterly return and if the retailer's average monthly tax 15 liability to the Department does not exceed $50, the 16 Department may authorize his returns to be filed on an annual 17 basis, with the return for a given year being due by January 18 20 of the following year. 19 Such quarter annual and annual returns, as to form and 20 substance, shall be subject to the same requirements as 21 monthly returns. 22 Notwithstanding any other provision in this Act 23 concerning the time within which a retailer may file his 24 return, in the case of any retailer who ceases to engage in a 25 kind of business which makes him responsible for filing 26 returns under this Act, such retailer shall file a final 27 return under this Act with the Department not more than one 28 month after discontinuing such business. 29 In addition, with respect to motor vehicles, watercraft, 30 aircraft, and trailers that are required to be registered 31 with an agency of this State, every retailer selling this 32 kind of tangible personal property shall file, with the 33 Department, upon a form to be prescribed and supplied by the 34 Department, a separate return for each such item of tangible -16- LRB9201187SMdv 1 personal property which the retailer sells, except that if, 2 in the same transaction, (i) a retailer of aircraft, 3 watercraft, motor vehicles or trailers transfers more than 4 one aircraft, watercraft, motor vehicle or trailer to another 5 aircraft, watercraft, motor vehicle or trailer retailer for 6 the purpose of resale or (ii) a retailer of aircraft, 7 watercraft, motor vehicles, or trailers transfers more than 8 one aircraft, watercraft, motor vehicle, or trailer to a 9 purchaser for use as a qualifying rolling stock as provided 10 in Section 3-55 of this Act, then that seller may report the 11 transfer of all the aircraft, watercraft, motor vehicles or 12 trailers involved in that transaction to the Department on 13 the same uniform invoice-transaction reporting return form. 14 For purposes of this Section, "watercraft" means a Class 2, 15 Class 3, or Class 4 watercraft as defined in Section 3-2 of 16 the Boat Registration and Safety Act, a personal watercraft, 17 or any boat equipped with an inboard motor. 18 The transaction reporting return in the case of motor 19 vehicles or trailers that are required to be registered with 20 an agency of this State, shall be the same document as the 21 Uniform Invoice referred to in Section 5-402 of the Illinois 22 Vehicle Code and must show the name and address of the 23 seller; the name and address of the purchaser; the amount of 24 the selling price including the amount allowed by the 25 retailer for traded-in property, if any; the amount allowed 26 by the retailer for the traded-in tangible personal property, 27 if any, to the extent to which Section 2 of this Act allows 28 an exemption for the value of traded-in property; the balance 29 payable after deducting such trade-in allowance from the 30 total selling price; the amount of tax due from the retailer 31 with respect to such transaction; the amount of tax collected 32 from the purchaser by the retailer on such transaction (or 33 satisfactory evidence that such tax is not due in that 34 particular instance, if that is claimed to be the fact); the -17- LRB9201187SMdv 1 place and date of the sale; a sufficient identification of 2 the property sold; such other information as is required in 3 Section 5-402 of the Illinois Vehicle Code, and such other 4 information as the Department may reasonably require. 5 The transaction reporting return in the case of 6 watercraft and aircraft 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 2 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, and such other information as the 21 Department may reasonably require. 22 Such transaction reporting return shall be filed not 23 later than 20 days after the date of delivery of the item 24 that is being sold, but may be filed by the retailer at any 25 time sooner than that if he chooses to do so. The 26 transaction reporting return and tax remittance or proof of 27 exemption from the tax that is imposed by this Act may be 28 transmitted to the Department by way of the State agency with 29 which, or State officer with whom, the tangible personal 30 property must be titled or registered (if titling or 31 registration is required) if the Department and such agency 32 or State officer determine that this procedure will expedite 33 the processing of applications for title or registration. 34 With each such transaction reporting return, the retailer -18- LRB9201187SMdv 1 shall remit the proper amount of tax due (or shall submit 2 satisfactory evidence that the sale is not taxable if that is 3 the case), to the Department or its agents, whereupon the 4 Department shall issue, in the purchaser's name, a tax 5 receipt (or a certificate of exemption if the Department is 6 satisfied that the particular sale is tax exempt) which such 7 purchaser may submit to the agency with which, or State 8 officer with whom, he must title or register the tangible 9 personal property that is involved (if titling or 10 registration is required) in support of such purchaser's 11 application for an Illinois certificate or other evidence of 12 title or registration to such tangible personal property. 13 No retailer's failure or refusal to remit tax under this 14 Act precludes a user, who has paid the proper tax to the 15 retailer, from obtaining his certificate of title or other 16 evidence of title or registration (if titling or registration 17 is required) upon satisfying the Department that such user 18 has paid the proper tax (if tax is due) to the retailer. The 19 Department shall adopt appropriate rules to carry out the 20 mandate of this paragraph. 21 If the user who would otherwise pay tax to the retailer 22 wants the transaction reporting return filed and the payment 23 of tax or proof of exemption made to the Department before 24 the retailer is willing to take these actions and such user 25 has not paid the tax to the retailer, such user may certify 26 to the fact of such delay by the retailer, and may (upon the 27 Department being satisfied of the truth of such 28 certification) transmit the information required by the 29 transaction reporting return and the remittance for tax or 30 proof of exemption directly to the Department and obtain his 31 tax receipt or exemption determination, in which event the 32 transaction reporting return and tax remittance (if a tax 33 payment was required) shall be credited by the Department to 34 the proper retailer's account with the Department, but -19- LRB9201187SMdv 1 without the 2.1% or 1.75% discount provided for in this 2 Section being allowed. When the user pays the tax directly 3 to the Department, he shall pay the tax in the same amount 4 and in the same form in which it would be remitted if the tax 5 had been remitted to the Department by the retailer. 6 Where a retailer collects the tax with respect to the 7 selling price of tangible personal property which he sells 8 and the purchaser thereafter returns such tangible personal 9 property and the retailer refunds the selling price thereof 10 to the purchaser, such retailer shall also refund, to the 11 purchaser, the tax so collected from the purchaser. When 12 filing his return for the period in which he refunds such tax 13 to the purchaser, the retailer may deduct the amount of the 14 tax so refunded by him to the purchaser from any other use 15 tax which such retailer may be required to pay or remit to 16 the Department, as shown by such return, if the amount of the 17 tax to be deducted was previously remitted to the Department 18 by such retailer. If the retailer has not previously 19 remitted the amount of such tax to the Department, he is 20 entitled to no deduction under this Act upon refunding such 21 tax to the purchaser. 22 Any retailer filing a return under this Section shall 23 also include (for the purpose of paying tax thereon) the 24 total tax covered by such return upon the selling price of 25 tangible personal property purchased by him at retail from a 26 retailer, but as to which the tax imposed by this Act was not 27 collected from the retailer filing such return, and such 28 retailer shall remit the amount of such tax to the Department 29 when filing such return. 30 If experience indicates such action to be practicable, 31 the Department may prescribe and furnish a combination or 32 joint return which will enable retailers, who are required to 33 file returns hereunder and also under the Retailers' 34 Occupation Tax Act, to furnish all the return information -20- LRB9201187SMdv 1 required by both Acts on the one form. 2 Where the retailer has more than one business registered 3 with the Department under separate registration under this 4 Act, such retailer may not file each return that is due as a 5 single return covering all such registered businesses, but 6 shall file separate returns for each such registered 7 business. 8 Beginning January 1, 1990, each month the Department 9 shall pay into the State and Local Sales Tax Reform Fund, a 10 special fund in the State Treasury which is hereby created, 11 the net revenue realized for the preceding month from the 1% 12 tax on sales of food for human consumption which is to be 13 consumed off the premises where it is sold (other than 14 alcoholic beverages, soft drinks and food which has been 15 prepared for immediate consumption) and prescription and 16 nonprescription medicines, drugs, medical appliances and 17 insulin, urine testing materials, syringes and needles used 18 by diabetics. 19 Beginning January 1, 1990, each month the Department 20 shall pay into the County and Mass Transit District Fund 4% 21 of the net revenue realized for the preceding month from the 22 6.25% general rate on the selling price of tangible personal 23 property which is purchased outside Illinois at retail from a 24 retailer and which is titled or registered by an agency of 25 this State's government. 26 Beginning January 1, 1990, each month the Department 27 shall pay into the State and Local Sales Tax Reform Fund, a 28 special fund in the State Treasury, 20% of the net revenue 29 realized for the preceding month from the 6.25% general rate 30 on the selling price of tangible personal property, other 31 than tangible personal property which is purchased outside 32 Illinois at retail from a retailer and which is titled or 33 registered by an agency of this State's government. 34 Beginning August 1, 2000, each month the Department shall -21- LRB9201187SMdv 1 pay into the State and Local Sales Tax Reform Fund 100% of 2 the net revenue realized for the preceding month from the 3 1.25% rate on the selling price of motor fuel and gasohol. 4 Beginning January 1, 1990, each month the Department 5 shall pay into the Local Government Tax Fund 16% of the net 6 revenue realized for the preceding month from the 6.25% 7 general rate on the selling price of tangible personal 8 property which is purchased outside Illinois at retail from a 9 retailer and which is titled or registered by an agency of 10 this State's government. 11 Beginning August 1, 2001, each month the Department shall 12 pay into the General Obligation Bond Retirement and Interest 13 Fund 80% of the net revenue realized for the preceding month 14 from the 6.25% general rate on the selling price of coal 15 until the Bureau of the Budget certifies to the Department 16 that the amount that will be necessary to finance the 17 principal of, interest on, and premium, if any, on the 18 $500,000,000 in additional general obligation bonds 19 authorized to be issued under this amendatory Act of the 92nd 20 General Assembly for coal development has been paid into that 21 Fund. 22 Of the remainder of the moneys received by the Department 23 pursuant to this Act, (a) 1.75% thereof shall be paid into 24 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 25 and on and after July 1, 1989, 3.8% thereof shall be paid 26 into the Build Illinois Fund; provided, however, that if in 27 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 28 as the case may be, of the moneys received by the Department 29 and required to be paid into the Build Illinois Fund pursuant 30 to Section 3 of the Retailers' Occupation Tax Act, Section 9 31 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 32 Section 9 of the Service Occupation Tax Act, such Acts being 33 hereinafter called the "Tax Acts" and such aggregate of 2.2% 34 or 3.8%, as the case may be, of moneys being hereinafter -22- LRB9201187SMdv 1 called the "Tax Act Amount", and (2) the amount transferred 2 to the Build Illinois Fund from the State and Local Sales Tax 3 Reform Fund shall be less than the Annual Specified Amount 4 (as defined in Section 3 of the Retailers' Occupation Tax 5 Act), an amount equal to the difference shall be immediately 6 paid into the Build Illinois Fund from other moneys received 7 by the Department pursuant to the Tax Acts; and further 8 provided, that if on the last business day of any month the 9 sum of (1) the Tax Act Amount required to be deposited into 10 the Build Illinois Bond Account in the Build Illinois Fund 11 during such month and (2) the amount transferred during such 12 month to the Build Illinois Fund from the State and Local 13 Sales Tax Reform Fund shall have been less than 1/12 of the 14 Annual Specified Amount, an amount equal to the difference 15 shall be immediately paid into the Build Illinois Fund from 16 other moneys received by the Department pursuant to the Tax 17 Acts; and, further provided, that in no event shall the 18 payments required under the preceding proviso result in 19 aggregate payments into the Build Illinois Fund pursuant to 20 this clause (b) for any fiscal year in excess of the greater 21 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 22 for such fiscal year; and, further provided, that the amounts 23 payable into the Build Illinois Fund under this clause (b) 24 shall be payable only until such time as the aggregate amount 25 on deposit under each trust indenture securing Bonds issued 26 and outstanding pursuant to the Build Illinois Bond Act is 27 sufficient, taking into account any future investment income, 28 to fully provide, in accordance with such indenture, for the 29 defeasance of or the payment of the principal of, premium, if 30 any, and interest on the Bonds secured by such indenture and 31 on any Bonds expected to be issued thereafter and all fees 32 and costs payable with respect thereto, all as certified by 33 the Director of the Bureau of the Budget. If on the last 34 business day of any month in which Bonds are outstanding -23- LRB9201187SMdv 1 pursuant to the Build Illinois Bond Act, the aggregate of the 2 moneys deposited in the Build Illinois Bond Account in the 3 Build Illinois Fund in such month shall be less than the 4 amount required to be transferred in such month from the 5 Build Illinois Bond Account to the Build Illinois Bond 6 Retirement and Interest Fund pursuant to Section 13 of the 7 Build Illinois Bond Act, an amount equal to such deficiency 8 shall be immediately paid from other moneys received by the 9 Department pursuant to the Tax Acts to the Build Illinois 10 Fund; provided, however, that any amounts paid to the Build 11 Illinois Fund in any fiscal year pursuant to this sentence 12 shall be deemed to constitute payments pursuant to clause (b) 13 of the preceding sentence and shall reduce the amount 14 otherwise payable for such fiscal year pursuant to clause (b) 15 of the preceding sentence. The moneys received by the 16 Department pursuant to this Act and required to be deposited 17 into the Build Illinois Fund are subject to the pledge, claim 18 and charge set forth in Section 12 of the Build Illinois Bond 19 Act. 20 Subject to payment of amounts into the Build Illinois 21 Fund as provided in the preceding paragraph or in any 22 amendment thereto hereafter enacted, the following specified 23 monthly installment of the amount requested in the 24 certificate of the Chairman of the Metropolitan Pier and 25 Exposition Authority provided under Section 8.25f of the 26 State Finance Act, but not in excess of the sums designated 27 as "Total Deposit", shall be deposited in the aggregate from 28 collections under Section 9 of the Use Tax Act, Section 9 of 29 the Service Use Tax Act, Section 9 of the Service Occupation 30 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 31 into the McCormick Place Expansion Project Fund in the 32 specified fiscal years. 33 Fiscal Year Total Deposit 34 1993 $0 -24- LRB9201187SMdv 1 1994 53,000,000 2 1995 58,000,000 3 1996 61,000,000 4 1997 64,000,000 5 1998 68,000,000 6 1999 71,000,000 7 2000 75,000,000 8 2001 80,000,000 9 2002 84,000,000 10 2003 89,000,000 11 2004 93,000,000 12 2005 97,000,000 13 2006 102,000,000 14 2007 108,000,000 15 2008 115,000,000 16 2009 120,000,000 17 2010 126,000,000 18 2011 132,000,000 19 2012 138,000,000 20 2013 and 145,000,000 21 each fiscal year 22 thereafter that bonds 23 are outstanding under 24 Section 13.2 of the 25 Metropolitan Pier and 26 Exposition Authority 27 Act, but not after fiscal year 2029. 28 Beginning July 20, 1993 and in each month of each fiscal 29 year thereafter, one-eighth of the amount requested in the 30 certificate of the Chairman of the Metropolitan Pier and 31 Exposition Authority for that fiscal year, less the amount 32 deposited into the McCormick Place Expansion Project Fund by 33 the State Treasurer in the respective month under subsection 34 (g) of Section 13 of the Metropolitan Pier and Exposition -25- LRB9201187SMdv 1 Authority Act, plus cumulative deficiencies in the deposits 2 required under this Section for previous months and years, 3 shall be deposited into the McCormick Place Expansion Project 4 Fund, until the full amount requested for the fiscal year, 5 but not in excess of the amount specified above as "Total 6 Deposit", has been deposited. 7 Subject to payment of amounts into the Build Illinois 8 Fund and the McCormick Place Expansion Project Fund pursuant 9 to the preceding paragraphs or in any amendment thereto 10 hereafter enacted, each month the Department shall pay into 11 the Local Government Distributive Fund .4% of the net revenue 12 realized for the preceding month from the 5% general rate, or 13 .4% of 80% of the net revenue realized for the preceding 14 month from the 6.25% general rate, as the case may be, on the 15 selling price of tangible personal property which amount 16 shall, subject to appropriation, be distributed as provided 17 in Section 2 of the State Revenue Sharing Act. No payments or 18 distributions pursuant to this paragraph shall be made if the 19 tax imposed by this Act on photoprocessing products is 20 declared unconstitutional, or if the proceeds from such tax 21 are unavailable for distribution because of litigation. 22 Subject to payment of amounts into the Build Illinois 23 Fund, the McCormick Place Expansion Project Fund, and the 24 Local Government Distributive Fund pursuant to the preceding 25 paragraphs or in any amendments thereto hereafter enacted, 26 beginning July 1, 1993, the Department shall each month pay 27 into the Illinois Tax Increment Fund 0.27% of 80% of the net 28 revenue realized for the preceding month from the 6.25% 29 general rate on the selling price of tangible personal 30 property. 31 Of the remainder of the moneys received by the Department 32 pursuant to this Act, 75% thereof shall be paid into the 33 State Treasury and 25% shall be reserved in a special account 34 and used only for the transfer to the Common School Fund as -26- LRB9201187SMdv 1 part of the monthly transfer from the General Revenue Fund in 2 accordance with Section 8a of the State Finance Act. 3 As soon as possible after the first day of each month, 4 upon certification of the Department of Revenue, the 5 Comptroller shall order transferred and the Treasurer shall 6 transfer from the General Revenue Fund to the Motor Fuel Tax 7 Fund an amount equal to 1.7% of 80% of the net revenue 8 realized under this Act for the second preceding month. 9 Beginning April 1, 2000, this transfer is no longer required 10 and shall not be made. 11 Net revenue realized for a month shall be the revenue 12 collected by the State pursuant to this Act, less the amount 13 paid out during that month as refunds to taxpayers for 14 overpayment of liability. 15 For greater simplicity of administration, manufacturers, 16 importers and wholesalers whose products are sold at retail 17 in Illinois by numerous retailers, and who wish to do so, may 18 assume the responsibility for accounting and paying to the 19 Department all tax accruing under this Act with respect to 20 such sales, if the retailers who are affected do not make 21 written objection to the Department to this arrangement. 22 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98; 23 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff. 24 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00; 91-901, 25 eff. 1-1-01; revised 8-30-00.) 26 Section 55. The Service Use Tax Act is amended by 27 changing Section 9 as follows: 28 (35 ILCS 110/9) (from Ch. 120, par. 439.39) 29 Sec. 9. Each serviceman required or authorized to 30 collect the tax herein imposed shall pay to the Department 31 the amount of such tax (except as otherwise provided) at the 32 time when he is required to file his return for the period -27- LRB9201187SMdv 1 during which such tax was collected, less a discount of 2.1% 2 prior to January 1, 1990 and 1.75% on and after January 1, 3 1990, or $5 per calendar year, whichever is greater, which is 4 allowed to reimburse the serviceman for expenses incurred in 5 collecting the tax, keeping records, preparing and filing 6 returns, remitting the tax and supplying data to the 7 Department on request. A serviceman need not remit that part 8 of any tax collected by him to the extent that he is required 9 to pay and does pay the tax imposed by the Service Occupation 10 Tax Act with respect to his sale of service involving the 11 incidental transfer by him of the same property. 12 Except as provided hereinafter in this Section, on or 13 before the twentieth day of each calendar month, such 14 serviceman shall file a return for the preceding calendar 15 month in accordance with reasonable Rules and Regulations to 16 be promulgated by the Department. Such return shall be filed 17 on a form prescribed by the Department and shall contain such 18 information as the Department may reasonably require. 19 The Department may require returns to be filed on a 20 quarterly basis. If so required, a return for each calendar 21 quarter shall be filed on or before the twentieth day of the 22 calendar month following the end of such calendar quarter. 23 The taxpayer shall also file a return with the Department for 24 each of the first two months of each calendar quarter, on or 25 before the twentieth day of the following calendar month, 26 stating: 27 1. The name of the seller; 28 2. The address of the principal place of business 29 from which he engages in business as a serviceman in this 30 State; 31 3. The total amount of taxable receipts received by 32 him during the preceding calendar month, including 33 receipts from charge and time sales, but less all 34 deductions allowed by law; -28- LRB9201187SMdv 1 4. The amount of credit provided in Section 2d of 2 this Act; 3 5. The amount of tax due; 4 5-5. The signature of the taxpayer; and 5 6. Such other reasonable information as the 6 Department may require. 7 If a taxpayer fails to sign a return within 30 days after 8 the proper notice and demand for signature by the Department, 9 the return shall be considered valid and any amount shown to 10 be due on the return shall be deemed assessed. 11 Beginning October 1, 1993, a taxpayer who has an average 12 monthly tax liability of $150,000 or more shall make all 13 payments required by rules of the Department by electronic 14 funds transfer. Beginning October 1, 1994, a taxpayer who 15 has an average monthly tax liability of $100,000 or more 16 shall make all payments required by rules of the Department 17 by electronic funds transfer. Beginning October 1, 1995, a 18 taxpayer who has an average monthly tax liability of $50,000 19 or more shall make all payments required by rules of the 20 Department by electronic funds transfer. Beginning October 1, 21 2000, a taxpayer who has an annual tax liability of $200,000 22 or more shall make all payments required by rules of the 23 Department by electronic funds transfer. The term "annual 24 tax liability" shall be the sum of the taxpayer's liabilities 25 under this Act, and under all other State and local 26 occupation and use tax laws administered by the Department, 27 for the immediately preceding calendar year. The term 28 "average monthly tax liability" means the sum of the 29 taxpayer's liabilities under this Act, and under all other 30 State and local occupation and use tax laws administered by 31 the Department, for the immediately preceding calendar year 32 divided by 12. 33 Before August 1 of each year beginning in 1993, the 34 Department shall notify all taxpayers required to make -29- LRB9201187SMdv 1 payments by electronic funds transfer. All taxpayers required 2 to make payments by electronic funds transfer shall make 3 those payments for a minimum of one year beginning on October 4 1. 5 Any taxpayer not required to make payments by electronic 6 funds transfer may make payments by electronic funds transfer 7 with the permission of the Department. 8 All taxpayers required to make payment by electronic 9 funds transfer and any taxpayers authorized to voluntarily 10 make payments by electronic funds transfer shall make those 11 payments in the manner authorized by the Department. 12 The Department shall adopt such rules as are necessary to 13 effectuate a program of electronic funds transfer and the 14 requirements of this Section. 15 If the serviceman is otherwise required to file a monthly 16 return and if the serviceman's average monthly tax liability 17 to the Department does not exceed $200, the Department may 18 authorize his returns to be filed on a quarter annual basis, 19 with the return for January, February and March of a given 20 year being due by April 20 of such year; with the return for 21 April, May and June of a given year being due by July 20 of 22 such year; with the return for July, August and September of 23 a given year being due by October 20 of such year, and with 24 the return for October, November and December of a given year 25 being due by January 20 of the following year. 26 If the serviceman is otherwise required to file a monthly 27 or quarterly return and if the serviceman's average monthly 28 tax liability to the Department does not exceed $50, the 29 Department may authorize his returns to be filed on an annual 30 basis, with the return for a given year being due by January 31 20 of the following year. 32 Such quarter annual and annual returns, as to form and 33 substance, shall be subject to the same requirements as 34 monthly returns. -30- LRB9201187SMdv 1 Notwithstanding any other provision in this Act 2 concerning the time within which a serviceman may file his 3 return, in the case of any serviceman who ceases to engage in 4 a kind of business which makes him responsible for filing 5 returns under this Act, such serviceman shall file a final 6 return under this Act with the Department not more than 1 7 month after discontinuing such business. 8 Where a serviceman collects the tax with respect to the 9 selling price of property which he sells and the purchaser 10 thereafter returns such property and the serviceman refunds 11 the selling price thereof to the purchaser, such serviceman 12 shall also refund, to the purchaser, the tax so collected 13 from the purchaser. When filing his return for the period in 14 which he refunds such tax to the purchaser, the serviceman 15 may deduct the amount of the tax so refunded by him to the 16 purchaser from any other Service Use Tax, Service Occupation 17 Tax, retailers' occupation tax or use tax which such 18 serviceman may be required to pay or remit to the Department, 19 as shown by such return, provided that the amount of the tax 20 to be deducted shall previously have been remitted to the 21 Department by such serviceman. If the serviceman shall not 22 previously have remitted the amount of such tax to the 23 Department, he shall be entitled to no deduction hereunder 24 upon refunding such tax to the purchaser. 25 Any serviceman filing a return hereunder shall also 26 include the total tax upon the selling price of tangible 27 personal property purchased for use by him as an incident to 28 a sale of service, and such serviceman shall remit the amount 29 of such tax to the Department when filing such return. 30 If experience indicates such action to be practicable, 31 the Department may prescribe and furnish a combination or 32 joint return which will enable servicemen, who are required 33 to file returns hereunder and also under the Service 34 Occupation Tax Act, to furnish all the return information -31- LRB9201187SMdv 1 required by both Acts on the one form. 2 Where the serviceman has more than one business 3 registered with the Department under separate registration 4 hereunder, such serviceman shall 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 Beginning January 1, 1990, each month the Department 9 shall pay into the State and Local Tax Reform Fund, a special 10 fund in the State Treasury, the net revenue realized for the 11 preceding month from the 1% tax on sales of food for human 12 consumption which is to be consumed off the premises where it 13 is sold (other than alcoholic beverages, soft drinks and food 14 which has been prepared for immediate consumption) and 15 prescription and nonprescription medicines, drugs, medical 16 appliances and insulin, urine testing materials, syringes and 17 needles used by diabetics. 18 Beginning January 1, 1990, each month the Department 19 shall pay into the State and Local Sales Tax Reform Fund 20% 20 of the net revenue realized for the preceding month from the 21 6.25% general rate on transfers of tangible personal 22 property, other than tangible personal property which is 23 purchased outside Illinois at retail from a retailer and 24 which is titled or registered by an agency of this State's 25 government. 26 Beginning August 1, 2000, each month the Department shall 27 pay into the State and Local Sales Tax Reform Fund 100% of 28 the net revenue realized for the preceding month from the 29 1.25% rate on the selling price of motor fuel and gasohol. 30 Beginning August 1, 2001, each month the Department shall 31 pay into the General Obligation Bond Retirement and Interest 32 Fund 80% of the net revenue realized for the preceding month 33 from the 6.25% general rate on the selling price of coal 34 until the Bureau of the Budget certifies to the Department -32- LRB9201187SMdv 1 that the amount that will be necessary to finance the 2 principal of, interest on, and premium, if any, on the 3 $500,000,000 in additional general obligation bonds 4 authorized to be issued under this amendatory Act of the 92nd 5 General Assembly for coal development has been paid into that 6 Fund. 7 Of the remainder of the moneys received by the Department 8 pursuant to this Act, (a) 1.75% thereof shall be paid into 9 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 10 and on and after July 1, 1989, 3.8% thereof shall be paid 11 into the Build Illinois Fund; provided, however, that if in 12 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 13 as the case may be, of the moneys received by the Department 14 and required to be paid into the Build Illinois Fund pursuant 15 to Section 3 of the Retailers' Occupation Tax Act, Section 9 16 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 17 Section 9 of the Service Occupation Tax Act, such Acts being 18 hereinafter called the "Tax Acts" and such aggregate of 2.2% 19 or 3.8%, as the case may be, of moneys being hereinafter 20 called the "Tax Act Amount", and (2) the amount transferred 21 to the Build Illinois Fund from the State and Local Sales Tax 22 Reform Fund shall be less than the Annual Specified Amount 23 (as defined in Section 3 of the Retailers' Occupation Tax 24 Act), an amount equal to the difference shall be immediately 25 paid into the Build Illinois Fund from other moneys received 26 by the Department pursuant to the Tax Acts; and further 27 provided, that if on the last business day of any month the 28 sum of (1) the Tax Act Amount required to be deposited into 29 the Build Illinois Bond Account in the Build Illinois Fund 30 during such month and (2) the amount transferred during such 31 month to the Build Illinois Fund from the State and Local 32 Sales Tax Reform Fund shall have been less than 1/12 of the 33 Annual Specified Amount, an amount equal to the difference 34 shall be immediately paid into the Build Illinois Fund from -33- LRB9201187SMdv 1 other moneys received by the Department pursuant to the Tax 2 Acts; and, further provided, that in no event shall the 3 payments required under the preceding proviso result in 4 aggregate payments into the Build Illinois Fund pursuant to 5 this clause (b) for any fiscal year in excess of the greater 6 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 7 for such fiscal year; and, further provided, that the amounts 8 payable into the Build Illinois Fund under this clause (b) 9 shall be payable only until such time as the aggregate amount 10 on deposit under each trust indenture securing Bonds issued 11 and outstanding pursuant to the Build Illinois Bond Act is 12 sufficient, taking into account any future investment income, 13 to fully provide, in accordance with such indenture, for the 14 defeasance of or the payment of the principal of, premium, if 15 any, and interest on the Bonds secured by such indenture and 16 on any Bonds expected to be issued thereafter and all fees 17 and costs payable with respect thereto, all as certified by 18 the Director of the Bureau of the Budget. If on the last 19 business day of any month in which Bonds are outstanding 20 pursuant to the Build Illinois Bond Act, the aggregate of the 21 moneys deposited in the Build Illinois Bond Account in the 22 Build Illinois Fund in such month shall be less than the 23 amount required to be transferred in such month from the 24 Build Illinois Bond Account to the Build Illinois Bond 25 Retirement and Interest Fund pursuant to Section 13 of the 26 Build Illinois Bond Act, an amount equal to such deficiency 27 shall be immediately paid from other moneys received by the 28 Department pursuant to the Tax Acts to the Build Illinois 29 Fund; provided, however, that any amounts paid to the Build 30 Illinois Fund in any fiscal year pursuant to this sentence 31 shall be deemed to constitute payments pursuant to clause (b) 32 of the preceding sentence and shall reduce the amount 33 otherwise payable for such fiscal year pursuant to clause (b) 34 of the preceding sentence. The moneys received by the -34- LRB9201187SMdv 1 Department pursuant to this Act and required to be deposited 2 into the Build Illinois Fund are subject to the pledge, claim 3 and charge set forth in Section 12 of the Build Illinois Bond 4 Act. 5 Subject to payment of amounts into the Build Illinois 6 Fund as provided in the preceding paragraph or in any 7 amendment thereto hereafter enacted, the following specified 8 monthly installment of the amount requested in the 9 certificate of the Chairman of the Metropolitan Pier and 10 Exposition Authority provided under Section 8.25f of the 11 State Finance Act, but not in excess of the sums designated 12 as "Total Deposit", shall be deposited in the aggregate from 13 collections under Section 9 of the Use Tax Act, Section 9 of 14 the Service Use Tax Act, Section 9 of the Service Occupation 15 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 16 into the McCormick Place Expansion Project Fund in the 17 specified fiscal years. 18 Fiscal Year Total Deposit 19 1993 $0 20 1994 53,000,000 21 1995 58,000,000 22 1996 61,000,000 23 1997 64,000,000 24 1998 68,000,000 25 1999 71,000,000 26 2000 75,000,000 27 2001 80,000,000 28 2002 84,000,000 29 2003 89,000,000 30 2004 93,000,000 31 2005 97,000,000 32 2006 102,000,000 33 2007 108,000,000 34 2008 115,000,000 -35- LRB9201187SMdv 1 2009 120,000,000 2 2010 126,000,000 3 2011 132,000,000 4 2012 138,000,000 5 2013 and 145,000,000 6 each fiscal year 7 thereafter that bonds 8 are outstanding under 9 Section 13.2 of the 10 Metropolitan Pier and 11 Exposition Authority Act, 12 but not after fiscal year 2029. 13 Beginning July 20, 1993 and in each month of each fiscal 14 year thereafter, one-eighth of the amount requested in the 15 certificate of the Chairman of the Metropolitan Pier and 16 Exposition Authority for that fiscal year, less the amount 17 deposited into the McCormick Place Expansion Project Fund by 18 the State Treasurer in the respective month under subsection 19 (g) of Section 13 of the Metropolitan Pier and Exposition 20 Authority Act, plus cumulative deficiencies in the deposits 21 required under this Section for previous months and years, 22 shall be deposited into the McCormick Place Expansion Project 23 Fund, until the full amount requested for the fiscal year, 24 but not in excess of the amount specified above as "Total 25 Deposit", has been deposited. 26 Subject to payment of amounts into the Build Illinois 27 Fund and the McCormick Place Expansion Project Fund pursuant 28 to the preceding paragraphs or in any amendment thereto 29 hereafter enacted, each month the Department shall pay into 30 the Local Government Distributive Fund 0.4% of the net 31 revenue realized for the preceding month from the 5% general 32 rate or 0.4% of 80% of the net revenue realized for the 33 preceding month from the 6.25% general rate, as the case may 34 be, on the selling price of tangible personal property which -36- LRB9201187SMdv 1 amount shall, subject to appropriation, be distributed as 2 provided in Section 2 of the State Revenue Sharing Act. No 3 payments or distributions pursuant to this paragraph shall be 4 made if the tax imposed by this Act on photo processing 5 products is declared unconstitutional, or if the proceeds 6 from such tax are unavailable for distribution because of 7 litigation. 8 Subject to payment of amounts into the Build Illinois 9 Fund, the McCormick Place Expansion Project Fund, and the 10 Local Government Distributive Fund pursuant to the preceding 11 paragraphs or in any amendments thereto hereafter enacted, 12 beginning July 1, 1993, the Department shall each month pay 13 into the Illinois Tax Increment Fund 0.27% of 80% of the net 14 revenue realized for the preceding month from the 6.25% 15 general rate on the selling price of tangible personal 16 property. 17 All remaining moneys received by the Department pursuant 18 to this Act shall be paid into the General Revenue Fund of 19 the State Treasury. 20 As soon as possible after the first day of each month, 21 upon certification of the Department of Revenue, the 22 Comptroller shall order transferred and the Treasurer shall 23 transfer from the General Revenue Fund to the Motor Fuel Tax 24 Fund an amount equal to 1.7% of 80% of the net revenue 25 realized under this Act for the second preceding month. 26 Beginning April 1, 2000, this transfer is no longer required 27 and shall not be made. 28 Net revenue realized for a month shall be the revenue 29 collected by the State pursuant to this Act, less the amount 30 paid out during that month as refunds to taxpayers for 31 overpayment of liability. 32 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51, 33 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 34 91-872, eff. 7-1-00.) -37- LRB9201187SMdv 1 Section 60. The Service Occupation Tax Act is amended by 2 changing Section 9 as follows: 3 (35 ILCS 115/9) (from Ch. 120, par. 439.109) 4 Sec. 9. Each serviceman required or authorized to 5 collect the tax herein imposed shall pay to the Department 6 the amount of such tax at the time when he is required to 7 file his return for the period during which such tax was 8 collectible, less a discount of 2.1% prior to January 1, 9 1990, and 1.75% on and after January 1, 1990, or $5 per 10 calendar year, whichever is greater, which is allowed to 11 reimburse the serviceman for expenses incurred in collecting 12 the tax, keeping records, preparing and filing returns, 13 remitting the tax and supplying data to the Department on 14 request. 15 Where such tangible personal property is sold under a 16 conditional sales contract, or under any other form of sale 17 wherein the payment of the principal sum, or a part thereof, 18 is extended beyond the close of the period for which the 19 return is filed, the serviceman, in collecting the tax may 20 collect, for each tax return period, only the tax applicable 21 to the part of the selling price actually received during 22 such tax return period. 23 Except as provided hereinafter in this Section, on or 24 before the twentieth day of each calendar month, such 25 serviceman shall file a return for the preceding calendar 26 month in accordance with reasonable rules and regulations to 27 be promulgated by the Department of Revenue. Such return 28 shall be filed on a form prescribed by the Department and 29 shall contain such information as the Department may 30 reasonably require. 31 The Department may require returns to be filed on a 32 quarterly basis. If so required, a return for each calendar 33 quarter shall be filed on or before the twentieth day of the -38- LRB9201187SMdv 1 calendar month following the end of such calendar quarter. 2 The taxpayer shall also file a return with the Department for 3 each of the first two months of each calendar quarter, on or 4 before the twentieth day of the following calendar month, 5 stating: 6 1. The name of the seller; 7 2. The address of the principal place of business 8 from which he engages in business as a serviceman in this 9 State; 10 3. The total amount of taxable receipts received by 11 him during the preceding calendar month, including 12 receipts from charge and time sales, but less all 13 deductions allowed by law; 14 4. The amount of credit provided in Section 2d of 15 this Act; 16 5. The amount of tax due; 17 5-5. The signature of the taxpayer; and 18 6. Such other reasonable information as the 19 Department may require. 20 If a taxpayer fails to sign a return within 30 days after 21 the proper notice and demand for signature by the Department, 22 the return shall be considered valid and any amount shown to 23 be due on the return shall be deemed assessed. 24 A serviceman may accept a Manufacturer's Purchase Credit 25 certification from a purchaser in satisfaction of Service Use 26 Tax as provided in Section 3-70 of the Service Use Tax Act if 27 the purchaser provides the appropriate documentation as 28 required by Section 3-70 of the Service Use Tax Act. A 29 Manufacturer's Purchase Credit certification, accepted by a 30 serviceman as provided in Section 3-70 of the Service Use Tax 31 Act, may be used by that serviceman to satisfy Service 32 Occupation Tax liability in the amount claimed in the 33 certification, not to exceed 6.25% of the receipts subject to 34 tax from a qualifying purchase. -39- LRB9201187SMdv 1 If the serviceman's average monthly tax liability to the 2 Department does not exceed $200, the Department may authorize 3 his returns to be filed on a quarter annual basis, with the 4 return for January, February and March of a given year being 5 due by April 20 of such year; with the return for April, May 6 and June of a given year being due by July 20 of such year; 7 with the return for July, August and September of a given 8 year being due by October 20 of such year, and with the 9 return for October, November and December of a given year 10 being due by January 20 of the following year. 11 If the serviceman's average monthly tax liability to the 12 Department does not exceed $50, the Department may authorize 13 his returns to be filed on an annual basis, with the return 14 for a given year being due by January 20 of the following 15 year. 16 Such quarter annual and annual returns, as to form and 17 substance, shall be subject to the same requirements as 18 monthly returns. 19 Notwithstanding any other provision in this Act 20 concerning the time within which a serviceman may file his 21 return, in the case of any serviceman who ceases to engage in 22 a kind of business which makes him responsible for filing 23 returns under this Act, such serviceman shall file a final 24 return under this Act with the Department not more than 1 25 month after discontinuing such business. 26 Beginning October 1, 1993, a taxpayer who has an average 27 monthly tax liability of $150,000 or more shall make all 28 payments required by rules of the Department by electronic 29 funds transfer. Beginning October 1, 1994, a taxpayer who 30 has an average monthly tax liability of $100,000 or more 31 shall make all payments required by rules of the Department 32 by electronic funds transfer. Beginning October 1, 1995, a 33 taxpayer who has an average monthly tax liability of $50,000 34 or more shall make all payments required by rules of the -40- LRB9201187SMdv 1 Department by electronic funds transfer. Beginning October 2 1, 2000, a taxpayer who has an annual tax liability of 3 $200,000 or more shall make all payments required by rules of 4 the Department by electronic funds transfer. The term 5 "annual tax liability" shall be the sum of the taxpayer's 6 liabilities under this Act, and under all other State and 7 local occupation and use tax laws administered by the 8 Department, for the immediately preceding calendar year. The 9 term "average monthly tax liability" means the sum of the 10 taxpayer's liabilities under this Act, and under all other 11 State and local occupation and use tax laws administered by 12 the Department, for the immediately preceding calendar year 13 divided by 12. 14 Before August 1 of each year beginning in 1993, the 15 Department shall notify all taxpayers required to make 16 payments by electronic funds transfer. All taxpayers 17 required to make payments by electronic funds transfer shall 18 make those payments for a minimum of one year beginning on 19 October 1. 20 Any taxpayer not required to make payments by electronic 21 funds transfer may make payments by electronic funds transfer 22 with the permission of the Department. 23 All taxpayers required to make payment by electronic 24 funds transfer and any taxpayers authorized to voluntarily 25 make payments by electronic funds transfer shall make those 26 payments in the manner authorized by the Department. 27 The Department shall adopt such rules as are necessary to 28 effectuate a program of electronic funds transfer and the 29 requirements of this Section. 30 Where a serviceman collects the tax with respect to the 31 selling price of tangible personal property which he sells 32 and the purchaser thereafter returns such tangible personal 33 property and the serviceman refunds the selling price thereof 34 to the purchaser, such serviceman shall also refund, to the -41- LRB9201187SMdv 1 purchaser, the tax so collected from the purchaser. When 2 filing his return for the period in which he refunds such tax 3 to the purchaser, the serviceman may deduct the amount of the 4 tax so refunded by him to the purchaser from any other 5 Service Occupation Tax, Service Use Tax, Retailers' 6 Occupation Tax or Use Tax which such serviceman may be 7 required to pay or remit to the Department, as shown by such 8 return, provided that the amount of the tax to be deducted 9 shall previously have been remitted to the Department by such 10 serviceman. If the serviceman shall not previously have 11 remitted the amount of such tax to the Department, he shall 12 be entitled to no deduction hereunder upon refunding such tax 13 to the purchaser. 14 If experience indicates such action to be practicable, 15 the Department may prescribe and furnish a combination or 16 joint return which will enable servicemen, who are required 17 to file returns hereunder and also under the Retailers' 18 Occupation Tax Act, the Use Tax Act or the Service Use Tax 19 Act, to furnish all the return information required by all 20 said Acts on the one form. 21 Where the serviceman has more than one business 22 registered with the Department under separate registrations 23 hereunder, such serviceman shall file separate returns for 24 each registered business. 25 Beginning January 1, 1990, each month the Department 26 shall pay into the Local Government Tax Fund the revenue 27 realized for the preceding month from the 1% tax on sales of 28 food for human consumption which is to be consumed off the 29 premises where it is sold (other than alcoholic beverages, 30 soft drinks and food which has been prepared for immediate 31 consumption) and prescription and nonprescription medicines, 32 drugs, medical appliances and insulin, urine testing 33 materials, syringes and needles used by diabetics. 34 Beginning January 1, 1990, each month the Department -42- LRB9201187SMdv 1 shall pay into the County and Mass Transit District Fund 4% 2 of the revenue realized for the preceding month from the 3 6.25% general rate. 4 Beginning August 1, 2000, each month the Department shall 5 pay into the County and Mass Transit District Fund 20% of the 6 net revenue realized for the preceding month from the 1.25% 7 rate on the selling price of motor fuel and gasohol. 8 Beginning January 1, 1990, each month the Department 9 shall pay into the Local Government Tax Fund 16% of the 10 revenue realized for the preceding month from the 6.25% 11 general rate on transfers of tangible personal property. 12 Beginning August 1, 2000, each month the Department shall 13 pay into the Local Government Tax Fund 80% of the net revenue 14 realized for the preceding month from the 1.25% rate on the 15 selling price of motor fuel and gasohol. 16 Beginning August 1, 2001, each month the Department shall 17 pay into the General Obligation Bond Retirement and Interest 18 Fund 80% of the net revenue realized for the preceding month 19 from the 6.25% general rate on the selling price of coal 20 until the Bureau of the Budget certifies to the Department 21 that the amount that will be necessary to finance the 22 principal of, interest on, and premium, if any, on the 23 $500,000,000 in additional general obligation bonds 24 authorized to be issued under this amendatory Act of the 92nd 25 General Assembly for coal development has been paid into that 26 Fund. 27 Of the remainder of the moneys received by the Department 28 pursuant to this Act, (a) 1.75% thereof shall be paid into 29 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 30 and on and after July 1, 1989, 3.8% thereof shall be paid 31 into the Build Illinois Fund; provided, however, that if in 32 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 33 as the case may be, of the moneys received by the Department 34 and required to be paid into the Build Illinois Fund pursuant -43- LRB9201187SMdv 1 to Section 3 of the Retailers' Occupation Tax Act, Section 9 2 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 3 Section 9 of the Service Occupation Tax Act, such Acts being 4 hereinafter called the "Tax Acts" and such aggregate of 2.2% 5 or 3.8%, as the case may be, of moneys being hereinafter 6 called the "Tax Act Amount", and (2) the amount transferred 7 to the Build Illinois Fund from the State and Local Sales Tax 8 Reform Fund shall be less than the Annual Specified Amount 9 (as defined in Section 3 of the Retailers' Occupation Tax 10 Act), an amount equal to the difference shall be immediately 11 paid into the Build Illinois Fund from other moneys received 12 by the Department pursuant to the Tax Acts; and further 13 provided, that if on the last business day of any month the 14 sum of (1) the Tax Act Amount required to be deposited into 15 the Build Illinois Account in the Build Illinois Fund during 16 such month and (2) the amount transferred during such month 17 to the Build Illinois Fund from the State and Local Sales Tax 18 Reform Fund shall have been less than 1/12 of the Annual 19 Specified Amount, an amount equal to the difference shall be 20 immediately paid into the Build Illinois Fund from other 21 moneys received by the Department pursuant to the Tax Acts; 22 and, further provided, that in no event shall the payments 23 required under the preceding proviso result in aggregate 24 payments into the Build Illinois Fund pursuant to this clause 25 (b) for any fiscal year in excess of the greater of (i) the 26 Tax Act Amount or (ii) the Annual Specified Amount for such 27 fiscal year; and, further provided, that the amounts payable 28 into the Build Illinois Fund under this clause (b) shall be 29 payable only until such time as the aggregate amount on 30 deposit under each trust indenture securing Bonds issued and 31 outstanding pursuant to the Build Illinois Bond Act is 32 sufficient, taking into account any future investment income, 33 to fully provide, in accordance with such indenture, for the 34 defeasance of or the payment of the principal of, premium, if -44- LRB9201187SMdv 1 any, and interest on the Bonds secured by such indenture and 2 on any Bonds expected to be issued thereafter and all fees 3 and costs payable with respect thereto, all as certified by 4 the Director of the Bureau of the Budget. If on the last 5 business day of any month in which Bonds are outstanding 6 pursuant to the Build Illinois Bond Act, the aggregate of the 7 moneys deposited in the Build Illinois Bond Account in the 8 Build Illinois Fund in such month shall be less than the 9 amount required to be transferred in such month from the 10 Build Illinois Bond Account to the Build Illinois Bond 11 Retirement and Interest Fund pursuant to Section 13 of the 12 Build Illinois Bond Act, an amount equal to such deficiency 13 shall be immediately paid from other moneys received by the 14 Department pursuant to the Tax Acts to the Build Illinois 15 Fund; provided, however, that any amounts paid to the Build 16 Illinois Fund in any fiscal year pursuant to this sentence 17 shall be deemed to constitute payments pursuant to clause (b) 18 of the preceding sentence and shall reduce the amount 19 otherwise payable for such fiscal year pursuant to clause (b) 20 of the preceding sentence. The moneys received by the 21 Department pursuant to this Act and required to be deposited 22 into the Build Illinois Fund are subject to the pledge, claim 23 and charge set forth in Section 12 of the Build Illinois Bond 24 Act. 25 Subject to payment of amounts into the Build Illinois 26 Fund as provided in the preceding paragraph or in any 27 amendment thereto hereafter enacted, the following specified 28 monthly installment of the amount requested in the 29 certificate of the Chairman of the Metropolitan Pier and 30 Exposition Authority provided under Section 8.25f of the 31 State Finance Act, but not in excess of the sums designated 32 as "Total Deposit", shall be deposited in the aggregate from 33 collections under Section 9 of the Use Tax Act, Section 9 of 34 the Service Use Tax Act, Section 9 of the Service Occupation -45- LRB9201187SMdv 1 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 2 into the McCormick Place Expansion Project Fund in the 3 specified fiscal years. 4 Fiscal Year Total Deposit 5 1993 $0 6 1994 53,000,000 7 1995 58,000,000 8 1996 61,000,000 9 1997 64,000,000 10 1998 68,000,000 11 1999 71,000,000 12 2000 75,000,000 13 2001 80,000,000 14 2002 84,000,000 15 2003 89,000,000 16 2004 93,000,000 17 2005 97,000,000 18 2006 102,000,000 19 2007 108,000,000 20 2008 115,000,000 21 2009 120,000,000 22 2010 126,000,000 23 2011 132,000,000 24 2012 138,000,000 25 2013 and 145,000,000 26 each fiscal year 27 thereafter that bonds 28 are outstanding under 29 Section 13.2 of the 30 Metropolitan Pier and 31 Exposition Authority 32 Act, but not after fiscal year 2029. 33 Beginning July 20, 1993 and in each month of each fiscal 34 year thereafter, one-eighth of the amount requested in the -46- LRB9201187SMdv 1 certificate of the Chairman of the Metropolitan Pier and 2 Exposition Authority for that fiscal year, less the amount 3 deposited into the McCormick Place Expansion Project Fund by 4 the State Treasurer in the respective month under subsection 5 (g) of Section 13 of the Metropolitan Pier and Exposition 6 Authority Act, plus cumulative deficiencies in the deposits 7 required under this Section for previous months and years, 8 shall be deposited into the McCormick Place Expansion Project 9 Fund, until the full amount requested for the fiscal year, 10 but not in excess of the amount specified above as "Total 11 Deposit", has been deposited. 12 Subject to payment of amounts into the Build Illinois 13 Fund and the McCormick Place Expansion Project Fund pursuant 14 to the preceding paragraphs or in any amendment thereto 15 hereafter enacted, each month the Department shall pay into 16 the Local Government Distributive Fund 0.4% of the net 17 revenue realized for the preceding month from the 5% general 18 rate or 0.4% of 80% of the net revenue realized for the 19 preceding month from the 6.25% general rate, as the case may 20 be, on the selling price of tangible personal property which 21 amount shall, subject to appropriation, be distributed as 22 provided in Section 2 of the State Revenue Sharing Act. No 23 payments or distributions pursuant to this paragraph shall be 24 made if the tax imposed by this Act on photoprocessing 25 products is declared unconstitutional, or if the proceeds 26 from such tax are unavailable for distribution because of 27 litigation. 28 Subject to payment of amounts into the Build Illinois 29 Fund, the McCormick Place Expansion Project Fund, and the 30 Local Government Distributive Fund pursuant to the preceding 31 paragraphs or in any amendments thereto hereafter enacted, 32 beginning July 1, 1993, the Department shall each month pay 33 into the Illinois Tax Increment Fund 0.27% of 80% of the net 34 revenue realized for the preceding month from the 6.25% -47- LRB9201187SMdv 1 general rate on the selling price of tangible personal 2 property. 3 Remaining moneys received by the Department pursuant to 4 this Act shall be paid into the General Revenue Fund of the 5 State Treasury. 6 The Department may, upon separate written notice to a 7 taxpayer, require the taxpayer to prepare and file with the 8 Department on a form prescribed by the Department within not 9 less than 60 days after receipt of the notice an annual 10 information return for the tax year specified in the notice. 11 Such annual return to the Department shall include a 12 statement of gross receipts as shown by the taxpayer's last 13 Federal income tax return. If the total receipts of the 14 business as reported in the Federal income tax return do not 15 agree with the gross receipts reported to the Department of 16 Revenue for the same period, the taxpayer shall attach to his 17 annual return a schedule showing a reconciliation of the 2 18 amounts and the reasons for the difference. The taxpayer's 19 annual return to the Department shall also disclose the cost 20 of goods sold by the taxpayer during the year covered by such 21 return, opening and closing inventories of such goods for 22 such year, cost of goods used from stock or taken from stock 23 and given away by the taxpayer during such year, pay roll 24 information of the taxpayer's business during such year and 25 any additional reasonable information which the Department 26 deems would be helpful in determining the accuracy of the 27 monthly, quarterly or annual returns filed by such taxpayer 28 as hereinbefore provided for in this Section. 29 If the annual information return required by this Section 30 is not filed when and as required, the taxpayer shall be 31 liable as follows: 32 (i) Until January 1, 1994, the taxpayer shall be 33 liable for a penalty equal to 1/6 of 1% of the tax due 34 from such taxpayer under this Act during the period to be -48- LRB9201187SMdv 1 covered by the annual return for each month or fraction 2 of a month until such return is filed as required, the 3 penalty to be assessed and collected in the same manner 4 as any other penalty provided for in this Act. 5 (ii) On and after January 1, 1994, the taxpayer 6 shall be liable for a penalty as described in Section 3-4 7 of the Uniform Penalty and Interest Act. 8 The chief executive officer, proprietor, owner or highest 9 ranking manager shall sign the annual return to certify the 10 accuracy of the information contained therein. Any person 11 who willfully signs the annual return containing false or 12 inaccurate information shall be guilty of perjury and 13 punished accordingly. The annual return form prescribed by 14 the Department shall include a warning that the person 15 signing the return may be liable for perjury. 16 The foregoing portion of this Section concerning the 17 filing of an annual information return shall not apply to a 18 serviceman who is not required to file an income tax return 19 with the United States Government. 20 As soon as possible after the first day of each month, 21 upon certification of the Department of Revenue, the 22 Comptroller shall order transferred and the Treasurer shall 23 transfer from the General Revenue Fund to the Motor Fuel Tax 24 Fund an amount equal to 1.7% of 80% of the net revenue 25 realized under this Act for the second preceding month. 26 Beginning April 1, 2000, this transfer is no longer required 27 and shall not be made. 28 Net revenue realized for a month shall be the revenue 29 collected by the State pursuant to this Act, less the amount 30 paid out during that month as refunds to taxpayers for 31 overpayment of liability. 32 For greater simplicity of administration, it shall be 33 permissible for manufacturers, importers and wholesalers 34 whose products are sold by numerous servicemen in Illinois, -49- LRB9201187SMdv 1 and who wish to do so, to assume the responsibility for 2 accounting and paying to the Department all tax accruing 3 under this Act with respect to such sales, if the servicemen 4 who are affected do not make written objection to the 5 Department to this arrangement. 6 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51, 7 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 8 91-872, eff. 7-1-00.) 9 Section 65. The Retailers' Occupation Tax Act is amended 10 by changing Section 3 as follows: 11 (35 ILCS 120/3) (from Ch. 120, par. 442) 12 Sec. 3. Except as provided in this Section, on or before 13 the twentieth day of each calendar month, every person 14 engaged in the business of selling tangible personal property 15 at retail in this State during the preceding calendar month 16 shall file a return with the Department, stating: 17 1. The name of the seller; 18 2. His residence address and the address of his 19 principal place of business and the address of the 20 principal place of business (if that is a different 21 address) from which he engages in the business of selling 22 tangible personal property at retail in this State; 23 3. Total amount of receipts received by him during 24 the preceding calendar month or quarter, as the case may 25 be, from sales of tangible personal property, and from 26 services furnished, by him during such preceding calendar 27 month or quarter; 28 4. Total amount received by him during the 29 preceding calendar month or quarter on charge and time 30 sales of tangible personal property, and from services 31 furnished, by him prior to the month or quarter for which 32 the return is filed; -50- LRB9201187SMdv 1 5. Deductions allowed by law; 2 6. Gross receipts which were received by him during 3 the preceding calendar month or quarter and upon the 4 basis of which the tax is imposed; 5 7. The amount of credit provided in Section 2d of 6 this Act; 7 8. The amount of tax due; 8 9. The signature of the taxpayer; and 9 10. Such other reasonable information as the 10 Department may require. 11 If a taxpayer fails to sign a return within 30 days after 12 the proper notice and demand for signature by the Department, 13 the return shall be considered valid and any amount shown to 14 be due on the return shall be deemed assessed. 15 Each return shall be accompanied by the statement of 16 prepaid tax issued pursuant to Section 2e for which credit is 17 claimed. 18 A retailer may accept a Manufacturer's Purchase Credit 19 certification from a purchaser in satisfaction of Use Tax as 20 provided in Section 3-85 of the Use Tax Act if the purchaser 21 provides the appropriate documentation as required by Section 22 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit 23 certification, accepted by a retailer as provided in Section 24 3-85 of the Use Tax Act, may be used by that retailer to 25 satisfy Retailers' Occupation Tax liability in the amount 26 claimed in the certification, not to exceed 6.25% of the 27 receipts subject to tax from a qualifying purchase. 28 The Department may require returns to be filed on a 29 quarterly basis. If so required, a return for each calendar 30 quarter shall be filed on or before the twentieth day of the 31 calendar month following the end of such calendar quarter. 32 The taxpayer shall also file a return with the Department for 33 each of the first two months of each calendar quarter, on or 34 before the twentieth day of the following calendar month, -51- LRB9201187SMdv 1 stating: 2 1. The name of the seller; 3 2. The address of the principal place of business 4 from which he engages in the business of selling tangible 5 personal property at retail in this State; 6 3. The total amount of taxable receipts received by 7 him during the preceding calendar month from sales of 8 tangible personal property by him during such preceding 9 calendar month, including receipts from charge and time 10 sales, but less all deductions allowed by law; 11 4. The amount of credit provided in Section 2d of 12 this Act; 13 5. The amount of tax due; and 14 6. Such other reasonable information as the 15 Department may require. 16 If a total amount of less than $1 is payable, refundable 17 or creditable, such amount shall be disregarded if it is less 18 than 50 cents and shall be increased to $1 if it is 50 cents 19 or more. 20 Beginning October 1, 1993, a taxpayer who has an average 21 monthly tax liability of $150,000 or more shall make all 22 payments required by rules of the Department by electronic 23 funds transfer. Beginning October 1, 1994, a taxpayer who 24 has an average monthly tax liability of $100,000 or more 25 shall make all payments required by rules of the Department 26 by electronic funds transfer. Beginning October 1, 1995, a 27 taxpayer who has an average monthly tax liability of $50,000 28 or more shall make all payments required by rules of the 29 Department by electronic funds transfer. Beginning October 30 1, 2000, a taxpayer who has an annual tax liability of 31 $200,000 or more shall make all payments required by rules of 32 the Department by electronic funds transfer. The term 33 "annual tax liability" shall be the sum of the taxpayer's 34 liabilities under this Act, and under all other State and -52- LRB9201187SMdv 1 local occupation and use tax laws administered by the 2 Department, for the immediately preceding calendar year. The 3 term "average monthly tax liability" shall be the sum of the 4 taxpayer's liabilities under this Act, and under all other 5 State and local occupation and use tax laws administered by 6 the Department, for the immediately preceding calendar year 7 divided by 12. 8 Before August 1 of each year beginning in 1993, the 9 Department shall notify all taxpayers required to make 10 payments by electronic funds transfer. All taxpayers 11 required to make payments by electronic funds transfer shall 12 make those payments for a minimum of one year beginning on 13 October 1. 14 Any taxpayer not required to make payments by electronic 15 funds transfer may make payments by electronic funds transfer 16 with the permission of the Department. 17 All taxpayers required to make payment by electronic 18 funds transfer and any taxpayers authorized to voluntarily 19 make payments by electronic funds transfer shall make those 20 payments in the manner authorized by the Department. 21 The Department shall adopt such rules as are necessary to 22 effectuate a program of electronic funds transfer and the 23 requirements of this Section. 24 Any amount which is required to be shown or reported on 25 any return or other document under this Act shall, if such 26 amount is not a whole-dollar amount, be increased to the 27 nearest whole-dollar amount in any case where the fractional 28 part of a dollar is 50 cents or more, and decreased to the 29 nearest whole-dollar amount where the fractional part of a 30 dollar is less than 50 cents. 31 If the retailer is otherwise required to file a monthly 32 return and if the retailer's average monthly tax liability to 33 the Department does not exceed $200, the Department may 34 authorize his returns to be filed on a quarter annual basis, -53- LRB9201187SMdv 1 with the return for January, February and March of a given 2 year being due by April 20 of such year; with the return for 3 April, May and June of a given year being due by July 20 of 4 such year; with the return for July, August and September of 5 a given year being due by October 20 of such year, and with 6 the return for October, November and December of a given year 7 being due by January 20 of the following year. 8 If the retailer is otherwise required to file a monthly 9 or quarterly return and if the retailer's average monthly tax 10 liability with the Department does not exceed $50, the 11 Department may authorize his returns to be filed on an annual 12 basis, with the return for a given year being due by January 13 20 of the following year. 14 Such quarter annual and annual returns, as to form and 15 substance, shall be subject to the same requirements as 16 monthly returns. 17 Notwithstanding any other provision in this Act 18 concerning the time within which a retailer may file his 19 return, in the case of any retailer who ceases to engage in a 20 kind of business which makes him responsible for filing 21 returns under this Act, such retailer shall file a final 22 return under this Act with the Department not more than one 23 month after discontinuing such business. 24 Where the same person has more than one business 25 registered with the Department under separate registrations 26 under this Act, such person may not file each return that is 27 due as a single return covering all such registered 28 businesses, but shall file separate returns for each such 29 registered business. 30 In addition, with respect to motor vehicles, watercraft, 31 aircraft, and trailers that are required to be registered 32 with an agency of this State, every retailer selling this 33 kind of tangible personal property shall file, with the 34 Department, upon a form to be prescribed and supplied by the -54- LRB9201187SMdv 1 Department, a separate return for each such item of tangible 2 personal property which the retailer sells, except that if, 3 in the same transaction, (i) a retailer of aircraft, 4 watercraft, motor vehicles or trailers transfers more than 5 one aircraft, watercraft, motor vehicle or trailer to another 6 aircraft, watercraft, motor vehicle retailer or trailer 7 retailer for the purpose of resale or (ii) a retailer of 8 aircraft, watercraft, motor vehicles, or trailers transfers 9 more than one aircraft, watercraft, motor vehicle, or trailer 10 to a purchaser for use as a qualifying rolling stock as 11 provided in Section 2-5 of this Act, then that seller may 12 report the transfer of all aircraft, watercraft, motor 13 vehicles or trailers involved in that transaction to the 14 Department on the same uniform invoice-transaction reporting 15 return form. For purposes of this Section, "watercraft" 16 means a Class 2, Class 3, or Class 4 watercraft as defined in 17 Section 3-2 of the Boat Registration and Safety Act, a 18 personal watercraft, or any boat equipped with an inboard 19 motor. 20 Any retailer who sells only motor vehicles, watercraft, 21 aircraft, or trailers that are required to be registered with 22 an agency of this State, so that all retailers' occupation 23 tax liability is required to be reported, and is reported, on 24 such transaction reporting returns and who is not otherwise 25 required to file monthly or quarterly returns, need not file 26 monthly or quarterly returns. However, those retailers shall 27 be required to file returns on an annual basis. 28 The transaction reporting return, in the case of motor 29 vehicles or trailers that are required to be registered with 30 an agency of this State, shall be the same document as the 31 Uniform Invoice referred to in Section 5-402 of The Illinois 32 Vehicle Code and must show the name and address of the 33 seller; the name and address of the purchaser; the amount of 34 the selling price including the amount allowed by the -55- LRB9201187SMdv 1 retailer for traded-in property, if any; the amount allowed 2 by the retailer for the traded-in tangible personal property, 3 if any, to the extent to which Section 1 of this Act allows 4 an exemption for the value of traded-in property; the balance 5 payable after deducting such trade-in allowance from the 6 total selling price; the amount of tax due from the retailer 7 with respect to such transaction; the amount of tax collected 8 from the purchaser by the retailer on such transaction (or 9 satisfactory evidence that such tax is not due in that 10 particular instance, if that is claimed to be the fact); the 11 place and date of the sale; a sufficient identification of 12 the property sold; such other information as is required in 13 Section 5-402 of The Illinois Vehicle Code, and such other 14 information as the Department may reasonably require. 15 The transaction reporting return in the case of 16 watercraft or aircraft must show the name and address of the 17 seller; the name and address of the purchaser; the amount of 18 the selling price including the amount allowed by the 19 retailer for traded-in property, if any; the amount allowed 20 by the retailer for the traded-in tangible personal property, 21 if any, to the extent to which Section 1 of this Act allows 22 an exemption for the value of traded-in property; the balance 23 payable after deducting such trade-in allowance from the 24 total selling price; the amount of tax due from the retailer 25 with respect to such transaction; the amount of tax collected 26 from the purchaser by the retailer on such transaction (or 27 satisfactory evidence that such tax is not due in that 28 particular instance, if that is claimed to be the fact); the 29 place and date of the sale, a sufficient identification of 30 the property sold, and such other information as the 31 Department may reasonably require. 32 Such transaction reporting return shall be filed not 33 later than 20 days after the day of delivery of the item that 34 is being sold, but may be filed by the retailer at any time -56- LRB9201187SMdv 1 sooner than that if he chooses to do so. The transaction 2 reporting return and tax remittance or proof of exemption 3 from the Illinois use tax may be transmitted to the 4 Department by way of the State agency with which, or State 5 officer with whom the tangible personal property must be 6 titled or registered (if titling or registration is required) 7 if the Department and such agency or State officer determine 8 that this procedure will expedite the processing of 9 applications for title or registration. 10 With each such transaction reporting return, the retailer 11 shall remit the proper amount of tax due (or shall submit 12 satisfactory evidence that the sale is not taxable if that is 13 the case), to the Department or its agents, whereupon the 14 Department shall issue, in the purchaser's name, a use tax 15 receipt (or a certificate of exemption if the Department is 16 satisfied that the particular sale is tax exempt) which such 17 purchaser may submit to the agency with which, or State 18 officer with whom, he must title or register the tangible 19 personal property that is involved (if titling or 20 registration is required) in support of such purchaser's 21 application for an Illinois certificate or other evidence of 22 title or registration to such tangible personal property. 23 No retailer's failure or refusal to remit tax under this 24 Act precludes a user, who has paid the proper tax to the 25 retailer, from obtaining his certificate of title or other 26 evidence of title or registration (if titling or registration 27 is required) upon satisfying the Department that such user 28 has paid the proper tax (if tax is due) to the retailer. The 29 Department shall adopt appropriate rules to carry out the 30 mandate of this paragraph. 31 If the user who would otherwise pay tax to the retailer 32 wants the transaction reporting return filed and the payment 33 of the tax or proof of exemption made to the Department 34 before the retailer is willing to take these actions and such -57- LRB9201187SMdv 1 user has not paid the tax to the retailer, such user may 2 certify to the fact of such delay by the retailer and may 3 (upon the Department being satisfied of the truth of such 4 certification) transmit the information required by the 5 transaction reporting return and the remittance for tax or 6 proof of exemption directly to the Department and obtain his 7 tax receipt or exemption determination, in which event the 8 transaction reporting return and tax remittance (if a tax 9 payment was required) shall be credited by the Department to 10 the proper retailer's account with the Department, but 11 without the 2.1% or 1.75% discount provided for in this 12 Section being allowed. When the user pays the tax directly 13 to the Department, he shall pay the tax in the same amount 14 and in the same form in which it would be remitted if the tax 15 had been remitted to the Department by the retailer. 16 Refunds made by the seller during the preceding return 17 period to purchasers, on account of tangible personal 18 property returned to the seller, shall be allowed as a 19 deduction under subdivision 5 of his monthly or quarterly 20 return, as the case may be, in case the seller had 21 theretofore included the receipts from the sale of such 22 tangible personal property in a return filed by him and had 23 paid the tax imposed by this Act with respect to such 24 receipts. 25 Where the seller is a corporation, the return filed on 26 behalf of such corporation shall be signed by the president, 27 vice-president, secretary or treasurer or by the properly 28 accredited agent of such corporation. 29 Where the seller is a limited liability company, the 30 return filed on behalf of the limited liability company shall 31 be signed by a manager, member, or properly accredited agent 32 of the limited liability company. 33 Except as provided in this Section, the retailer filing 34 the return under this Section shall, at the time of filing -58- LRB9201187SMdv 1 such return, pay to the Department the amount of tax imposed 2 by this Act less a discount of 2.1% prior to January 1, 1990 3 and 1.75% on and after January 1, 1990, or $5 per calendar 4 year, whichever is greater, which is allowed to reimburse the 5 retailer for the expenses incurred in keeping records, 6 preparing and filing returns, remitting the tax and supplying 7 data to the Department on request. Any prepayment made 8 pursuant to Section 2d of this Act shall be included in the 9 amount on which such 2.1% or 1.75% discount is computed. In 10 the case of retailers who report and pay the tax on a 11 transaction by transaction basis, as provided in this 12 Section, such discount shall be taken with each such tax 13 remittance instead of when such retailer files his periodic 14 return. 15 Before October 1, 2000, if the taxpayer's average monthly 16 tax liability to the Department under this Act, the Use Tax 17 Act, the Service Occupation Tax Act, and the Service Use Tax 18 Act, excluding any liability for prepaid sales tax to be 19 remitted in accordance with Section 2d of this Act, was 20 $10,000 or more during the preceding 4 complete calendar 21 quarters, he shall file a return with the Department each 22 month by the 20th day of the month next following the month 23 during which such tax liability is incurred and shall make 24 payments to the Department on or before the 7th, 15th, 22nd 25 and last day of the month during which such liability is 26 incurred. On and after October 1, 2000, if the taxpayer's 27 average monthly tax liability to the Department under this 28 Act, the Use Tax Act, the Service Occupation Tax Act, and the 29 Service Use Tax Act, excluding any liability for prepaid 30 sales tax to be remitted in accordance with Section 2d of 31 this Act, was $20,000 or more during the preceding 4 complete 32 calendar quarters, he shall file a return with the Department 33 each month by the 20th day of the month next following the 34 month during which such tax liability is incurred and shall -59- LRB9201187SMdv 1 make payment to the Department on or before the 7th, 15th, 2 22nd and last day of the month during which such liability is 3 incurred. If the month during which such tax liability is 4 incurred began prior to January 1, 1985, each payment shall 5 be in an amount equal to 1/4 of the taxpayer's actual 6 liability for the month or an amount set by the Department 7 not to exceed 1/4 of the average monthly liability of the 8 taxpayer to the Department for the preceding 4 complete 9 calendar quarters (excluding the month of highest liability 10 and the month of lowest liability in such 4 quarter period). 11 If the month during which such tax liability is incurred 12 begins on or after January 1, 1985 and prior to January 1, 13 1987, each payment shall be in an amount equal to 22.5% of 14 the taxpayer's actual liability for the month or 27.5% of the 15 taxpayer's liability for the same calendar month of the 16 preceding year. If the month during which such tax liability 17 is incurred begins on or after January 1, 1987 and prior to 18 January 1, 1988, each payment shall be in an amount equal to 19 22.5% of the taxpayer's actual liability for the month or 20 26.25% of the taxpayer's liability for the same calendar 21 month of the preceding year. If the month during which such 22 tax liability is incurred begins on or after January 1, 1988, 23 and prior to January 1, 1989, or begins on or after January 24 1, 1996, each payment shall be in an amount equal to 22.5% of 25 the taxpayer's actual liability for the month or 25% of the 26 taxpayer's liability for the same calendar month of the 27 preceding year. If the month during which such tax liability 28 is incurred begins on or after January 1, 1989, and prior to 29 January 1, 1996, each payment shall be in an amount equal to 30 22.5% of the taxpayer's actual liability for the month or 25% 31 of the taxpayer's liability for the same calendar month of 32 the preceding year or 100% of the taxpayer's actual liability 33 for the quarter monthly reporting period. The amount of such 34 quarter monthly payments shall be credited against the final -60- LRB9201187SMdv 1 tax liability of the taxpayer's return for that month. 2 Before October 1, 2000, once applicable, the requirement of 3 the making of quarter monthly payments to the Department by 4 taxpayers having an average monthly tax liability of $10,000 5 or more as determined in the manner provided above shall 6 continue until such taxpayer's average monthly liability to 7 the Department during the preceding 4 complete calendar 8 quarters (excluding the month of highest liability and the 9 month of lowest liability) is less than $9,000, or until such 10 taxpayer's average monthly liability to the Department as 11 computed for each calendar quarter of the 4 preceding 12 complete calendar quarter period is less than $10,000. 13 However, if a taxpayer can show the Department that a 14 substantial change in the taxpayer's business has occurred 15 which causes the taxpayer to anticipate that his average 16 monthly tax liability for the reasonably foreseeable future 17 will fall below the $10,000 threshold stated above, then such 18 taxpayer may petition the Department for a change in such 19 taxpayer's reporting status. On and after October 1, 2000, 20 once applicable, the requirement of the making of quarter 21 monthly payments to the Department by taxpayers having an 22 average monthly tax liability of $20,000 or more as 23 determined in the manner provided above shall continue until 24 such taxpayer's average monthly liability to the Department 25 during the preceding 4 complete calendar quarters (excluding 26 the month of highest liability and the month of lowest 27 liability) is less than $19,000 or until such taxpayer's 28 average monthly liability to the Department as computed for 29 each calendar quarter of the 4 preceding complete calendar 30 quarter period is less than $20,000. However, if a taxpayer 31 can show the Department that a substantial change in the 32 taxpayer's business has occurred which causes the taxpayer to 33 anticipate that his average monthly tax liability for the 34 reasonably foreseeable future will fall below the $20,000 -61- LRB9201187SMdv 1 threshold stated above, then such taxpayer may petition the 2 Department for a change in such taxpayer's reporting status. 3 The Department shall change such taxpayer's reporting status 4 unless it finds that such change is seasonal in nature and 5 not likely to be long term. If any such quarter monthly 6 payment is not paid at the time or in the amount required by 7 this Section, then the taxpayer shall be liable for penalties 8 and interest on the difference between the minimum amount due 9 as a payment and the amount of such quarter monthly payment 10 actually and timely paid, except insofar as the taxpayer has 11 previously made payments for that month to the Department in 12 excess of the minimum payments previously due as provided in 13 this Section. The Department shall make reasonable rules and 14 regulations to govern the quarter monthly payment amount and 15 quarter monthly payment dates for taxpayers who file on other 16 than a calendar monthly basis. 17 Without regard to whether a taxpayer is required to make 18 quarter monthly payments as specified above, any taxpayer who 19 is required by Section 2d of this Act to collect and remit 20 prepaid taxes and has collected prepaid taxes which average 21 in excess of $25,000 per month during the preceding 2 22 complete calendar quarters, shall file a return with the 23 Department as required by Section 2f and shall make payments 24 to the Department on or before the 7th, 15th, 22nd and last 25 day of the month during which such liability is incurred. If 26 the month during which such tax liability is incurred began 27 prior to the effective date of this amendatory Act of 1985, 28 each payment shall be in an amount not less than 22.5% of the 29 taxpayer's actual liability under Section 2d. If the month 30 during which such tax liability is incurred begins on or 31 after January 1, 1986, each payment shall be in an amount 32 equal to 22.5% of the taxpayer's actual liability for the 33 month or 27.5% of the taxpayer's liability for the same 34 calendar month of the preceding calendar year. If the month -62- LRB9201187SMdv 1 during which such tax liability is incurred begins on or 2 after January 1, 1987, each payment shall be in an amount 3 equal to 22.5% of the taxpayer's actual liability for the 4 month or 26.25% of the taxpayer's liability for the same 5 calendar month of the preceding year. The amount of such 6 quarter monthly payments shall be credited against the final 7 tax liability of the taxpayer's return for that month filed 8 under this Section or Section 2f, as the case may be. Once 9 applicable, the requirement of the making of quarter monthly 10 payments to the Department pursuant to this paragraph shall 11 continue until such taxpayer's average monthly prepaid tax 12 collections during the preceding 2 complete calendar quarters 13 is $25,000 or less. If any such quarter monthly payment is 14 not paid at the time or in the amount required, the taxpayer 15 shall be liable for penalties and interest on such 16 difference, except insofar as the taxpayer has previously 17 made payments for that month in excess of the minimum 18 payments previously due. 19 If any payment provided for in this Section exceeds the 20 taxpayer's liabilities under this Act, the Use Tax Act, the 21 Service Occupation Tax Act and the Service Use Tax Act, as 22 shown on an original monthly return, the Department shall, if 23 requested by the taxpayer, issue to the taxpayer a credit 24 memorandum no later than 30 days after the date of payment. 25 The credit evidenced by such credit memorandum may be 26 assigned by the taxpayer to a similar taxpayer under this 27 Act, the Use Tax Act, the Service Occupation Tax Act or the 28 Service Use Tax Act, in accordance with reasonable rules and 29 regulations to be prescribed by the Department. If no such 30 request is made, the taxpayer may credit such excess payment 31 against tax liability subsequently to be remitted to the 32 Department under this Act, the Use Tax Act, the Service 33 Occupation Tax Act or the Service Use Tax Act, in accordance 34 with reasonable rules and regulations prescribed by the -63- LRB9201187SMdv 1 Department. If the Department subsequently determined that 2 all or any part of the credit taken was not actually due to 3 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount 4 shall be reduced by 2.1% or 1.75% of the difference between 5 the credit taken and that actually due, and that taxpayer 6 shall be liable for penalties and interest on such 7 difference. 8 If a retailer of motor fuel is entitled to a credit under 9 Section 2d of this Act which exceeds the taxpayer's liability 10 to the Department under this Act for the month which the 11 taxpayer is filing a return, the Department shall issue the 12 taxpayer a credit memorandum for the excess. 13 Beginning January 1, 1990, each month the Department 14 shall pay into the Local Government Tax Fund, a special fund 15 in the State treasury which is hereby created, the net 16 revenue realized for the preceding month from the 1% tax on 17 sales of food for human consumption which is to be consumed 18 off the premises where it is sold (other than alcoholic 19 beverages, soft drinks and food which has been prepared for 20 immediate consumption) and prescription and nonprescription 21 medicines, drugs, medical appliances and insulin, urine 22 testing materials, syringes and needles used by diabetics. 23 Beginning January 1, 1990, each month the Department 24 shall pay into the County and Mass Transit District Fund, a 25 special fund in the State treasury which is hereby created, 26 4% of the net revenue realized for the preceding month from 27 the 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 net 34 revenue realized for the preceding month from the 6.25% -64- LRB9201187SMdv 1 general rate on the selling price of tangible personal 2 property. 3 Beginning August 1, 2000, each month the Department shall 4 pay into the Local Government Tax Fund 80% of the net revenue 5 realized for the preceding month from the 1.25% rate on the 6 selling price of motor fuel and gasohol. 7 Beginning August 1, 2001, each month the Department shall 8 pay into the General Obligation Bond Retirement and Interest 9 Fund 80% of the net revenue realized for the preceding month 10 from the 6.25% general rate on the selling price of coal 11 until the Bureau of the Budget certifies to the Department 12 that the amount that will be necessary to finance the 13 principal of, interest on, and premium, if any, on the 14 $500,000,000 in additional general obligation bonds 15 authorized to be issued under this amendatory Act of the 92nd 16 General Assembly for coal development has been paid into that 17 Fund. 18 Of the remainder of the moneys received by the Department 19 pursuant to this Act, (a) 1.75% thereof shall be paid into 20 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 21 and on and after July 1, 1989, 3.8% thereof shall be paid 22 into the Build Illinois Fund; provided, however, that if in 23 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 24 as the case may be, of the moneys received by the Department 25 and required to be paid into the Build Illinois Fund pursuant 26 to this Act, Section 9 of the Use Tax Act, Section 9 of the 27 Service Use Tax Act, and Section 9 of the Service Occupation 28 Tax Act, such Acts being hereinafter called the "Tax Acts" 29 and such aggregate of 2.2% or 3.8%, as the case may be, of 30 moneys being hereinafter called the "Tax Act Amount", and (2) 31 the amount transferred to the Build Illinois Fund from the 32 State and Local Sales Tax Reform Fund shall be less than the 33 Annual Specified Amount (as hereinafter defined), an amount 34 equal to the difference shall be immediately paid into the -65- LRB9201187SMdv 1 Build Illinois Fund from other moneys received by the 2 Department pursuant to the Tax Acts; the "Annual Specified 3 Amount" means the amounts specified below for fiscal years 4 1986 through 1993: 5 Fiscal Year Annual Specified Amount 6 1986 $54,800,000 7 1987 $76,650,000 8 1988 $80,480,000 9 1989 $88,510,000 10 1990 $115,330,000 11 1991 $145,470,000 12 1992 $182,730,000 13 1993 $206,520,000; 14 and means the Certified Annual Debt Service Requirement (as 15 defined in Section 13 of the Build Illinois Bond Act) or the 16 Tax Act Amount, whichever is greater, for fiscal year 1994 17 and each fiscal year thereafter; and further provided, that 18 if on the last business day of any month the sum of (1) the 19 Tax Act Amount required to be deposited into the Build 20 Illinois Bond Account in the Build Illinois Fund during such 21 month and (2) the amount transferred to the Build Illinois 22 Fund from the State and Local Sales Tax Reform Fund shall 23 have been less than 1/12 of the Annual Specified Amount, an 24 amount equal to the difference shall be immediately paid into 25 the Build Illinois Fund from other moneys received by the 26 Department pursuant to the Tax Acts; and, further provided, 27 that in no event shall the payments required under the 28 preceding proviso result in aggregate payments into the Build 29 Illinois Fund pursuant to this clause (b) for any fiscal year 30 in excess of the greater of (i) the Tax Act Amount or (ii) 31 the Annual Specified Amount for such fiscal year. The 32 amounts payable into the Build Illinois Fund under clause (b) 33 of the first sentence in this paragraph shall be payable only 34 until such time as the aggregate amount on deposit under each -66- LRB9201187SMdv 1 trust indenture securing Bonds issued and outstanding 2 pursuant to the Build Illinois Bond Act is sufficient, taking 3 into account any future investment income, to fully provide, 4 in accordance with such indenture, for the defeasance of or 5 the payment of the principal of, premium, if any, and 6 interest on the Bonds secured by such indenture and on any 7 Bonds expected to be issued thereafter and all fees and costs 8 payable with respect thereto, all as certified by the 9 Director of the Bureau of the Budget. If on the last 10 business day of any month in which Bonds are outstanding 11 pursuant to the Build Illinois Bond Act, the aggregate of 12 moneys deposited in the Build Illinois Bond Account in the 13 Build Illinois Fund in such month shall be less than the 14 amount required to be transferred in such month from the 15 Build Illinois Bond Account to the Build Illinois Bond 16 Retirement and Interest Fund pursuant to Section 13 of the 17 Build Illinois Bond Act, an amount equal to such deficiency 18 shall be immediately paid from other moneys received by the 19 Department pursuant to the Tax Acts to the Build Illinois 20 Fund; provided, however, that any amounts paid to the Build 21 Illinois Fund in any fiscal year pursuant to this sentence 22 shall be deemed to constitute payments pursuant to clause (b) 23 of the first sentence of this paragraph and shall reduce the 24 amount otherwise payable for such fiscal year pursuant to 25 that clause (b). The moneys received by the Department 26 pursuant to this Act and required to be deposited into the 27 Build Illinois Fund are subject to the pledge, claim and 28 charge set forth in Section 12 of the Build Illinois Bond 29 Act. 30 Subject to payment of amounts into the Build Illinois 31 Fund as provided in the preceding paragraph or in any 32 amendment thereto hereafter enacted, the following specified 33 monthly installment of the amount requested in the 34 certificate of the Chairman of the Metropolitan Pier and -67- LRB9201187SMdv 1 Exposition Authority provided under Section 8.25f of the 2 State Finance Act, but not in excess of sums designated as 3 "Total Deposit", shall be deposited in the aggregate from 4 collections under Section 9 of the Use Tax Act, Section 9 of 5 the Service Use Tax Act, Section 9 of the Service Occupation 6 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 7 into the McCormick Place Expansion Project Fund in the 8 specified fiscal years. 9 Fiscal Year Total Deposit 10 1993 $0 11 1994 53,000,000 12 1995 58,000,000 13 1996 61,000,000 14 1997 64,000,000 15 1998 68,000,000 16 1999 71,000,000 17 2000 75,000,000 18 2001 80,000,000 19 2002 84,000,000 20 2003 89,000,000 21 2004 93,000,000 22 2005 97,000,000 23 2006 102,000,000 24 2007 108,000,000 25 2008 115,000,000 26 2009 120,000,000 27 2010 126,000,000 28 2011 132,000,000 29 2012 138,000,000 30 2013 and 145,000,000 31 each fiscal year 32 thereafter that bonds 33 are outstanding under 34 Section 13.2 of the -68- LRB9201187SMdv 1 Metropolitan Pier and 2 Exposition Authority 3 Act, but not after fiscal year 2029. 4 Beginning July 20, 1993 and in each month of each fiscal 5 year thereafter, one-eighth of the amount requested in the 6 certificate of the Chairman of the Metropolitan Pier and 7 Exposition Authority for that fiscal year, less the amount 8 deposited into the McCormick Place Expansion Project Fund by 9 the State Treasurer in the respective month under subsection 10 (g) of Section 13 of the Metropolitan Pier and Exposition 11 Authority Act, plus cumulative deficiencies in the deposits 12 required under this Section for previous months and years, 13 shall be deposited into the McCormick Place Expansion Project 14 Fund, until the full amount requested for the fiscal year, 15 but not in excess of the amount specified above as "Total 16 Deposit", has been deposited. 17 Subject to payment of amounts into the Build Illinois 18 Fund and the McCormick Place Expansion Project Fund pursuant 19 to the preceding paragraphs or in any amendment thereto 20 hereafter enacted, each month the Department shall pay into 21 the Local Government Distributive Fund 0.4% of the net 22 revenue realized for the preceding month from the 5% general 23 rate or 0.4% of 80% of the net revenue realized for the 24 preceding month from the 6.25% general rate, as the case may 25 be, on the selling price of tangible personal property which 26 amount shall, subject to appropriation, be distributed as 27 provided in Section 2 of the State Revenue Sharing Act. No 28 payments or distributions pursuant to this paragraph shall be 29 made if the tax imposed by this Act on photoprocessing 30 products is declared unconstitutional, or if the proceeds 31 from such tax are unavailable for distribution because of 32 litigation. 33 Subject to payment of amounts into the Build Illinois 34 Fund, the McCormick Place Expansion Project to the preceding -69- LRB9201187SMdv 1 paragraphs or in any amendments thereto hereafter enacted, 2 beginning July 1, 1993, the Department shall each month pay 3 into the Illinois Tax Increment Fund 0.27% of 80% of the net 4 revenue realized for the preceding month from the 6.25% 5 general rate on the selling price of tangible personal 6 property. 7 Of the remainder of the moneys received by the Department 8 pursuant to this Act, 75% thereof shall be paid into the 9 State Treasury and 25% shall be reserved in a special account 10 and used only for the transfer to the Common School Fund as 11 part of the monthly transfer from the General Revenue Fund in 12 accordance with Section 8a of the State Finance Act. 13 The Department may, upon separate written notice to a 14 taxpayer, require the taxpayer to prepare and file with the 15 Department on a form prescribed by the Department within not 16 less than 60 days after receipt of the notice an annual 17 information return for the tax year specified in the notice. 18 Such annual return to the Department shall include a 19 statement of gross receipts as shown by the retailer's last 20 Federal income tax return. If the total receipts of the 21 business as reported in the Federal income tax return do not 22 agree with the gross receipts reported to the Department of 23 Revenue for the same period, the retailer shall attach to his 24 annual return a schedule showing a reconciliation of the 2 25 amounts and the reasons for the difference. The retailer's 26 annual return to the Department shall also disclose the cost 27 of goods sold by the retailer during the year covered by such 28 return, opening and closing inventories of such goods for 29 such year, costs of goods used from stock or taken from stock 30 and given away by the retailer during such year, payroll 31 information of the retailer's business during such year and 32 any additional reasonable information which the Department 33 deems would be helpful in determining the accuracy of the 34 monthly, quarterly or annual returns filed by such retailer -70- LRB9201187SMdv 1 as provided for in this Section. 2 If the annual information return required by this Section 3 is not filed when and as required, the taxpayer shall be 4 liable as follows: 5 (i) Until January 1, 1994, the taxpayer shall be 6 liable for a penalty equal to 1/6 of 1% of the tax due 7 from such taxpayer under this Act during the period to be 8 covered by the annual return for each month or fraction 9 of a month until such return is filed as required, the 10 penalty to be assessed and collected in the same manner 11 as any other penalty provided for in this Act. 12 (ii) On and after January 1, 1994, the taxpayer 13 shall be liable for a penalty as described in Section 3-4 14 of the Uniform Penalty and Interest Act. 15 The chief executive officer, proprietor, owner or highest 16 ranking manager shall sign the annual return to certify the 17 accuracy of the information contained therein. Any person 18 who willfully signs the annual return containing false or 19 inaccurate information shall be guilty of perjury and 20 punished accordingly. The annual return form prescribed by 21 the Department shall include a warning that the person 22 signing the return may be liable for perjury. 23 The provisions of this Section concerning the filing of 24 an annual information return do not apply to a retailer who 25 is not required to file an income tax return with the United 26 States Government. 27 As soon as possible after the first day of each month, 28 upon certification of the Department of Revenue, the 29 Comptroller shall order transferred and the Treasurer shall 30 transfer from the General Revenue Fund to the Motor Fuel Tax 31 Fund an amount equal to 1.7% of 80% of the net revenue 32 realized under this Act for the second preceding month. 33 Beginning April 1, 2000, this transfer is no longer required 34 and shall not be made. -71- LRB9201187SMdv 1 Net revenue realized for a month shall be the revenue 2 collected by the State pursuant to this Act, less the amount 3 paid out during that month as refunds to taxpayers for 4 overpayment of liability. 5 For greater simplicity of administration, manufacturers, 6 importers and wholesalers whose products are sold at retail 7 in Illinois by numerous retailers, and who wish to do so, may 8 assume the responsibility for accounting and paying to the 9 Department all tax accruing under this Act with respect to 10 such sales, if the retailers who are affected do not make 11 written objection to the Department to this arrangement. 12 Any person who promotes, organizes, provides retail 13 selling space for concessionaires or other types of sellers 14 at the Illinois State Fair, DuQuoin State Fair, county fairs, 15 local fairs, art shows, flea markets and similar exhibitions 16 or events, including any transient merchant as defined by 17 Section 2 of the Transient Merchant Act of 1987, is required 18 to file a report with the Department providing the name of 19 the merchant's business, the name of the person or persons 20 engaged in merchant's business, the permanent address and 21 Illinois Retailers Occupation Tax Registration Number of the 22 merchant, the dates and location of the event and other 23 reasonable information that the Department may require. The 24 report must be filed not later than the 20th day of the month 25 next following the month during which the event with retail 26 sales was held. Any person who fails to file a report 27 required by this Section commits a business offense and is 28 subject to a fine not to exceed $250. 29 Any person engaged in the business of selling tangible 30 personal property at retail as a concessionaire or other type 31 of seller at the Illinois State Fair, county fairs, art 32 shows, flea markets and similar exhibitions or events, or any 33 transient merchants, as defined by Section 2 of the Transient 34 Merchant Act of 1987, may be required to make a daily report -72- LRB9201187SMdv 1 of the amount of such sales to the Department and to make a 2 daily payment of the full amount of tax due. The Department 3 shall impose this requirement when it finds that there is a 4 significant risk of loss of revenue to the State at such an 5 exhibition or event. Such a finding shall be based on 6 evidence that a substantial number of concessionaires or 7 other sellers who are not residents of Illinois will be 8 engaging in the business of selling tangible personal 9 property at retail at the exhibition or event, or other 10 evidence of a significant risk of loss of revenue to the 11 State. The Department shall notify concessionaires and other 12 sellers affected by the imposition of this requirement. In 13 the absence of notification by the Department, the 14 concessionaires and other sellers shall file their returns as 15 otherwise required in this Section. 16 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98; 17 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff. 18 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00; 91-901, 19 eff. 1-1-01; revised 8-30-00.) 20 Section 99. Effective date. This Act takes effect July 21 1, 2001. -73- LRB9201187SMdv 1 INDEX 2 Statutes amended in order of appearance 3 New Act 4 20 ILCS 1110/6 from Ch. 96 1/2, par. 4106 5 30 ILCS 105/5.545 new 6 30 ILCS 330/2 from Ch. 127, par. 652 7 30 ILCS 330/7 from Ch. 127, par. 657 8 35 ILCS 105/9 from Ch. 120, par. 439.9 9 35 ILCS 110/9 from Ch. 120, par. 439.39 10 35 ILCS 115/9 from Ch. 120, par. 439.109 11 35 ILCS 120/3 from Ch. 120, par. 442